-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, R4+CFAnG1Xt7ElERJdy67jqRpZJIh34sfyGbTPUuZYmFZVW23AhDYHibowZ4t7sO csUTjEV86SV2NRNBO3J+KQ== 0000950152-98-000343.txt : 19980202 0000950152-98-000343.hdr.sgml : 19980202 ACCESSION NUMBER: 0000950152-98-000343 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19980115 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 19980121 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: KEYCORP /NEW/ CENTRAL INDEX KEY: 0000091576 STANDARD INDUSTRIAL CLASSIFICATION: 6021 IRS NUMBER: 346542451 STATE OF INCORPORATION: OH FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-11302 FILM NUMBER: 98510392 BUSINESS ADDRESS: STREET 1: 127 PUBLIC SQ CITY: CLEVELAND STATE: OH ZIP: 44114-1306 BUSINESS PHONE: 2166893000 MAIL ADDRESS: STREET 1: 127 PUBLIC SQ CITY: CLEVELAND STATE: OH ZIP: 44114-1306 FORMER COMPANY: FORMER CONFORMED NAME: SOCIETY CORP DATE OF NAME CHANGE: 19920703 8-K 1 KEYCORP 8-K 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15d of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): January 15, 1998 [KEYCORP LOGO] -------------------------------------------- (Exact name of registrant as specified in its charter) Ohio 0-850 34-6542451 - - ------------------------------- ------------------------------------ ------------------------------------- (State or other jurisdiction of Commission File Number (I.R.S. Employer Identification No.) incorporation or organization)
127 Public Square, Cleveland, Ohio 44114-1306 - - --------------------------------------- ---------------------------------- (Address of principal executive (Zip Code) offices) Registrant's telephone number, including area code: (216) 689-6300 2 ITEM 5. OTHER EVENTS ------------ On January 15, 1998, the Registrant issued two press releases. In its first press release, the Registrant announced the earning results for the three and twelve month periods ended December 31, 1997. This press release, dated January 15, 1998, is attached as Exhibit 99.1 to this report. In the second press release issued on January 15, 1998, the Registrant announced: (i) a declaration of a quarterly cash dividend in the amount of $0.47 per common share of the Registrant ($0.235 per common share on a post-split basis), (ii) a two-for-one stock split by means of a 100% stock dividend payable on common shares, and (iii) a repurchase authorization of up to 5 million (10 million on a post-split basis) common shares from time to time. This press release dated January 15, 1998, is attached as Exhibit 99.2 to this report. ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS --------------------------------- (c) Exhibits -------- 99.1 The Registrant's January 15, 1998, press release announcing its earnings results for the three and twelve month periods ended December 31, 1997. 99.2 The Registrant's January 15, 1998, press release announcing: (i) a declaration of a quarterly cash dividend increase, (ii) a two-for-one stock split, and (iii) a repurchase authorization of up to 5 million (10 million on a post-split basis) common shares. 3 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. KEYCORP -------------------------------------- (Registrant) Date: January 21, 1998 /s/ Lee Irving -------------------------------------- By: Lee Irving Executive Vice President and Chief Accounting Officer EX-99.1 2 EXHIBIT 99.1 1 EXHIBIT 99.1 MEDIA CONTACTS: ANALYST CONTACTS: John Fuller (216) 689-8140 Lee Irving (216) 689-3564 Bill Murschel (216) 689-0457 Vern Patterson (216) 689-0520 WEB SITE: http://www.keybank.com FOR IMMEDIATE RELEASE KEYCORP REPORTS RECORD EARNINGS ------------------------------- - - - EPS OF $1.13 SETS RECORD FOR THE THIRD CONSECUTIVE QUARTER - - - YEAR END EFFICIENCY RATIO GOAL OF 55 PERCENT ACHIEVED - - - COMMERCIAL LOAN GROWTH CONTINUES, UP AN ANNUALIZED 15 PERCENT FROM THE THIRD QUARTER CLEVELAND, January 15, 1998 -- KeyCorp (NYSE: KEY) today reported record fourth quarter earnings of $248 million, or $1.13 per common share, up from $151 million, or $0.67 per common share, in the fourth quarter of 1996. This represents a 69 percent increase in earnings per common share from the year-ago quarter. In the fourth quarter of 1996, KeyCorp recorded a $100 million ($66 million after tax, or $0.29 per common share) restructuring charge in connection with strategic actions subsequently taken in its transformation to a nationwide, bank-based financial services company. Excluding that one-time charge, earnings for the 1996 fourth quarter were $217 million, or $0.96 per common share, and the 1997 fourth quarter earnings per share increase would be 18 percent on this basis. Earnings for the full year were a record $919 million, or $4.19 per common share, compared with $783 million, or $3.37 per common share, in 1996. Excluding the restructuring charge and Key's share of a government-mandated assessment to recapitalize the Savings Association Insurance Fund recorded in the 1996 third quarter, net income and earnings per common share in 1996 were $860 million and $3.71, respectively. Full year 1997 earnings per share would be 13 percent higher than that of 1996 on this basis. "Key's quarter-to-quarter earnings improvement in 1997 was outstanding," said Robert W. Gillespie, KeyCorp chairman and chief executive officer. "With record earnings for the third - more - 2 KEYCORP REPORTS FOURTH QUARTER 1997 EARNINGS JANUARY 15, 1998 PAGE 2 consecutive quarter, we are realizing the payoff from significant re-engineering and investments at Key during the last few years. We are benefiting from an aggressive sales force supported by technology and marketing. Our re-engineering of commercial lending functions, begun early in 1996, was a major factor in our sales staff's ability to generate strong growth in middle market commercial lending throughout 1997. "Furthermore, Key is a leader in investing in both innovative new delivery channels and business lines with high growth potential while identifying and divesting low-growth traditional branch offices," Gillespie said. "For example, lease financing, boosted by originations by our new affiliate Leasetec, was also a strong contributor to growth in our commercial loan portfolio during the fourth quarter. This occurred while we continued to revamp our distribution channels to increase operating efficiency. During the fourth quarter, we sold 55 KeyCenters, or branches, and completed the program to consolidate approximately 140 KeyCenters into other KeyCenters in accordance with plans announced a year ago. As of the 1997 year end, we had 1,015 KeyCenters, down from 1,239 at mid-year 1996." Gillespie noted that Key's effort toward achieving a 55 percent efficiency ratio (exclusive of acquisitions) by the end of 1997 was realized during the fourth quarter. The ratio for the full fourth quarter improved to 55.65 percent from 56.92 percent in the third quarter (both ratios exclusive of acquisitions) and nearly 61 percent a year ago. Commenting on financial performance, K. Brent Somers, KeyCorp senior executive vice president and chief financial officer, said, "Our quarter-to-quarter earnings improvement reflects growth in recurring sources of noninterest income, as well as benefits derived from the execution of expense control and capital management initiatives. Also contributing to our improved performance was the continuation of the year-long trend of strong commercial loan growth. Growth within the total loan portfolio was moderated by our seasonal education loan securitization and the securitization of $1.2 billion of auto loans, more than 80 percent of which were prime credits with lower returns than the portfolio remaining on our balance sheet. This securitization is consistent with Key's focus on achieving a 20 percent return on equity. Assets failing to meet that standard will continue to be considered for divestiture." Key's fourth quarter return on average total assets was 1.38 percent, compared with 1.33 percent (excluding the restructuring charge) in the year-ago quarter and 1.34 percent in the 1997 third quarter. On a comparable basis, the return on average common equity was 19.2 percent, 3 KEYCORP REPORTS FOURTH QUARTER 1997 EARNINGS JANUARY 15, 1998 PAGE 3 up from 18.0 percent in the prior-year quarter and little changed from 19.4 percent in the previous quarter. Net interest income for the fourth quarter of 1997 totaled $705 million, up slightly from the prior quarter as a $1.2 billion increase in average earning assets more than offset an 8 basis point reduction in the net interest margin. During the fourth quarter, growth in earning assets, which included continued strong commercial loan originations, was substantially offset by a record level of securitizations. These securitizations included the $1.2 billion of auto loans as well as $744 million of education loans about to enter repayment status. The annualized internal growth rate of loans (which excludes the impact of acquisitions, sales and securitizations and divestitures) was 12 percent in the fourth quarter. The reduction in the margin was due largely to higher cost borrowings, following a decrease in core deposits stemming from the branch sales. Relative to the fourth quarter of 1996, net interest income rose $22 million, or 3 percent, as the 10 percent (11 percent on an internally generated basis) growth in average earning assets more than countered the effect of a 30 basis point decline in the net interest margin. Noninterest income for the 1997 fourth quarter totaled $366 million, up $81 million, or 28 percent, from the year-ago quarter. Included in fourth quarter 1997 results were $62 million in branch divestiture gains and a $36 million loss on the securitization of low-return prime auto loans. Excluding these items, the quarter's noninterest income exceeded that of the prior year quarter by $55 million, or 19 percent. This improvement reflected growth across almost all major categories, including increases in income from various investment banking activities (up $22 million), corporate owned life insurance income (up $9 million), insurance and brokerage income (up $6 million) and trust and asset management income (up $5 million). Noninterest income, excluding branch sale gains from both quarters and the prime auto loan securitization loss, rose $26 million in the fourth quarter as compared with the third quarter. For the full year, noninterest income was up $123 million from 1996, after excluding the branch sale gains and prime auto loan securitization loss in 1997 and gains from the sales of a credit card portfolio and Key's Florida savings bank in the prior year. Noninterest expense for the 1997 fourth quarter totaled $630 million, down 10 percent from $700 million recorded a year ago. Excluding the impact of certain fourth quarter nonrecurring charges of $15 million in 1997 and $100 million in 1996, capital securities distributions of $14 million and $3 million in the fourth quarter of 1997 and 1996, respectively, and year 2000 expenses of $8 million recorded in the fourth quarter of 1997, noninterest expense was below the - more - 4 KEYCORP REPORTS FOURTH QUARTER 1997 EARNINGS JANUARY 15, 1998 PAGE 4 prior year level by $4 million, or 1 percent. This slight decrease reflected the decline in professional fees and various other operating expenses, offset in part by the impact of the Leasetec and Champion acquisitions ($20 million) and incentive accruals related to various investment banking activities. Compared with the prior quarter, core noninterest expense increased $13 million, or 2 percent, also reflecting the impact of the Champion acquisition and incentive accruals. For the full year, core noninterest expense decreased $42 million, or 2 percent, from 1996. Key repurchased 1 million of its common shares during the fourth quarter of 1997. This brings the total number of shares repurchased under the 1997 program, which expired on December 31, 1997, to 10 million of the 12 million shares authorized by the Board. The provision for loan losses for the 1997 fourth quarter was reduced to $76 million from $102 million in the previous quarter in response to a lower level of net charge-offs. Net loan charge-offs of $76 million, or 0.57 percent of average loans for the quarter, were down from $85 million, or 0.64 percent, for the prior quarter. Nonperforming assets ended the fourth quarter at $431 million, or 0.81 percent of loans plus other real estate owned and other nonperforming assets, compared with $411 million, or 0.77 percent, at September 30, 1997. At December 31, 1997, the allowance for loan losses was 1.69 percent of period end loans, with the nonperforming loan coverage ratio at 236 percent. - - -------------------------------------------------------------------------------- This news release contains forward-looking statements which are subject to numerous assumptions, risks and uncertainties. Actual results could differ materially from those contained in or implied by such statements for a variety of factors including: sharp and/or rapid changes in interest rates, significant changes in the economic scenario from the current anticipated scenario which could materially change anticipated credit quality trends and the ability to generate loans, significant delay in or inability to execute strategic initiatives designed to grow revenues and/or control expenses, and significant changes in accounting, tax, or regulatory practices or requirements. - - -------------------------------------------------------------------------------- # # # 5 KEYCORP REPORTS FOURTH QUARTER 1997 EARNINGS JANUARY 15, 1998 PAGE 5 FINANCIAL HIGHLIGHTS (dollars in millions, except per share amounts)
Three months ended ------------------------------------------------------- 12-31-97 9-30-97 12-31-96 --------------- ---------------- --------------- SUMMARY OF OPERATIONS Net interest income (TE) $716 $715 $695 Provision for loan losses 76 102 57 Noninterest income 366 393 285 Noninterest expense 630 648 700 Net income 248 236 151 PER COMMON SHARE Net income $ 1.13 $ 1.08 $ .67 Net income - assuming dilution 1.11 1.07 .66 Cash dividends .42 .42 .38 Book value at period end 23.65 23.11 21.84 Market price at period end 70.81 63.63 50.50 AT PERIOD END Full-time equivalent employees 24,595 25,622 27,689 Full-service banking offices 1,015 1,088 1,205 PERFORMANCE RATIOS Return on average total assets 1.38% 1.34% .92% Return on average equity 19.16 19.41 12.53 Efficiency (1) 56.81 56.75 60.92 Overhead (2) 36.17 37.76 44.89 Net interest margin (TE) 4.50 4.58 4.80 CAPITAL RATIOS AT PERIOD END Equity to assets (3) 7.03% 7.04% 7.22% Tangible equity to tangible assets (3) 5.52 5.46 5.88 Tier 1 risk-adjusted capital (4) 6.86 6.73 7.98 Total risk-adjusted capital (4) 11.12 11.10 13.01 Leverage (4) 6.44 6.33 6.93 (1) Calculated as noninterest expense (excluding certain nonrecurring charges and distributions on capital securities) divided by taxable-equivalent net interest income plus noninterest income (excluding net securities transactions and gains on branch sales). (2) Calculated as noninterest expense (excluding certain nonrecurring charges and distributions on capital securities) less noninterest income (excluding net securities transactions and gains on branch sales) divided by taxable-equivalent net interest income. (3) Including capital securities receiving Tier I treatment, these ratios at 12-31-97 are 7.71% and 6.21%, respectively, at 9-30-97 are 7.74% and 6.16%, respectively, and at 12-31-96 are 7.96% and 6.63%, respectively. (4) 12-31-97 ratio is estimated. TE = Taxable Equivalent
6 KEYCORP REPORTS FOURTH QUARTER 1997 EARNINGS JANUARY 15, 1998 PAGE 6 FINANCIAL HIGHLIGHTS (dollars in millions, except per share amounts)
Three months ended ---------------------------------------------------- 12-31-97 9-30-97 12-31-96 --------------- ---------------- --------------- ASSET QUALITY Net loan charge-offs $76 $85 $57 Net loan charge-offs to average loans .57% .64% .46% Allowance for loan losses $900 $900 $870 Allowance for loan losses to period end loans 1.69% 1.68% 1.77% Allowance for loan losses to nonperforming loans 236.22 247.25 249.28 Nonperforming loans at period end $381 $364 $349 Nonperforming assets at period end 431 411 400 Nonperforming loans to period end loans .71% .68% .71% Nonperforming assets to period end loans plus OREO and other nonperforming assets .81 .77 .81
Twelve months ended ---------------------------------- 12-31-97 12-31-96 ---------------- --------------- SUMMARY OF OPERATIONS Net interest income (TE) $2,838 $2,767 Provision for loan losses 320 197 Noninterest income 1,306 1,087 Noninterest expense 2,435 2,464 Net income 919 783 PER COMMON SHARE Net income $4.19 $3.37 Net income - assuming dilution 4.13 3.34 Cash dividends 1.68 1.52 PERFORMANCE RATIOS Return on average total assets 1.33% 1.21% Return on average common equity 18.89 15.73 Return on average total equity 18.89 15.64 Efficiency (1) 57.50 60.84 Overhead (2) 39.64 45.46 Net interest margin (TE) 4.62 4.78 ASSET QUALITY Net loan charge-offs $293 $195 Net loan charge-offs to average loans .57% .40%
7 KEYCORP REPORTS FOURTH QUARTER 1997 EARNINGS JANUARY 15, 1998 PAGE 7 CONSOLIDATED BALANCE SHEETS (dollars in millions)
ASSETS 12-31-97 9-30-97 12-31-96 --------------- ---------------- --------------- Loans $53,380 $53,676 $49,235 Investment securities 1,230 1,344 1,601 Securities available for sale 7,708 7,563 7,728 Short-term investments 1,928 1,217 696 --------------- ---------------- --------------- Total earning assets 64,246 63,800 59,260 Allowance for loan losses (900) (900) (870) Cash and due from banks 3,651 2,940 3,444 Premises and equipment 985 993 1,084 Goodwill 1,071 1,095 824 Other intangible assets 105 112 137 Corporate owned life insurance 1,895 1,583 1,515 Other assets 2,646 2,454 2,227 --------------- ---------------- --------------- TOTAL ASSETS $73,699 $72,077 $67,621 =============== ================ =============== LIABILITIES Deposits in domestic offices: Noninterest-bearing $ 9,368 $ 8,965 $ 9,524 Interest-bearing 32,005 32,733 34,455 Deposits in foreign offices-interest-bearing 3,700 2,172 1,338 --------------- ---------------- --------------- Total deposits 45,073 43,870 45,317 Federal funds purchased and securities sold under repurchase agreements 6,979 6,662 6,925 Bank notes and other short-term borrowings 5,967 6,053 3,969 Other liabilities 2,303 2,099 1,816 Long-term debt 7,446 7,567 4,213 --------------- ---------------- --------------- TOTAL LIABILITIES 67,768 66,251 62,240 Capital securities of subsidiary trusts 750 750 500 SHAREHOLDERS' EQUITY 5,181 5,076 4,881 TOTAL LIABILITIES, CAPITAL SECURITIES OF SUBSIDIARY TRUSTS AND --------------- ---------------- --------------- SHAREHOLDERS' EQUITY $73,699 $72,077 $67,621 =============== ================ =============== Common Shares outstanding (000) 219,032 219,666 223,454
8 KEYCORP REPORTS FOURTH QUARTER 1997 EARNINGS JANUARY 15, 1998 PAGE 8 CONSOLIDATED STATEMENTS OF INCOME (dollars in millions, except per share amounts)
Three months ended ---------------------------------------------------- 12-31-97 9-30-97 12-31-96 --------------- ---------------- --------------- INTEREST INCOME $1,365 $1,347 $1,243 INTEREST EXPENSE 660 643 560 --------------- ---------------- --------------- NET INTEREST INCOME 705 704 683 Provision for loan losses 76 102 57 --------------- ---------------- --------------- 629 602 626 NONINTEREST INCOME Service charges on deposit accounts 77 77 75 Trust and asset management income 72 66 67 Credit card fees 23 25 25 Insurance and brokerage income 24 22 18 Corporate owned life insurance income 25 20 16 Loan securitization income (loss) (31) 15 17 Net securities gains 1 -- -- Other income 175 168 67 --------------- ---------------- --------------- Total noninterest income 366 393 285 NONINTEREST EXPENSE Personnel 309 299 301 Net occupancy 58 54 56 Equipment 46 44 42 Amortization of intangibles 22 23 23 Professional fees 13 10 23 Marketing 21 22 20 Restructuring charge -- -- 100 Other expense 161 196 135 --------------- ---------------- --------------- Total noninterest expense 630 648 700 --------------- ---------------- --------------- INCOME BEFORE INCOME TAXES 365 347 211 Income taxes 117 111 60 --------------- ---------------- --------------- NET INCOME $ 248 $ 236 $ 151 =============== ================ =============== Net income applicable to Common Shares $248 $236 $151 Net income per Common Share 1.13 1.08 .67 Net income per Common Share - assuming dilution 1.11 1.07 .66 Wtd. avg. Common Shares (000) 219,373 218,107 225,562 Wtd. avg. Common Shares and equivalents (000) 222,576 221,025 228,126 Taxable-equivalent adjustment $11 $11 $12
9 KEYCORP REPORTS FOURTH QUARTER 1997 EARNINGS JANUARY 15, 1998 PAGE 9 CONSOLIDATED STATEMENTS OF INCOME (dollars in millions, except per share amounts)
Twelve months ended ---------------------------------- 12-31-97 12-31-96 ---------------- --------------- INTEREST INCOME $5,262 $4,951 INTEREST EXPENSE 2,468 2,234 ---------------- --------------- NET INTEREST INCOME 2,794 2,717 Provision for loan losses 320 197 ---------------- --------------- 2,474 2,520 NONINTEREST INCOME Service charges on deposit accounts 299 293 Trust and asset management income 266 247 Credit card fees 96 93 Insurance and brokerage income 88 70 Corporate owned life insurance income 85 58 Loan securitization income (loss) (12) 62 Net securities gains 1 1 Other income 483 263 ---------------- --------------- Total noninterest income 1,306 1,087 NONINTEREST EXPENSE Personnel 1,181 1,190 Net occupancy 222 219 Equipment 177 161 Amortization of intangibles 87 88 Professional fees 47 70 Marketing 86 88 Restructuring charge -- 100 Other expense 635 548 ---------------- --------------- Total noninterest expense 2,435 2,464 ---------------- --------------- INCOME BEFORE INCOME TAXES 1,345 1,143 Income taxes 426 360 ---------------- --------------- NET INCOME $ 919 $ 783 ================ =============== Net income applicable to Common Shares $919 $775 Net income per Common Share 4.19 3.37 Net income per Common Share - assuming dilution 4.13 3.34 Wtd. avg. Common Shares (000) 219,521 229,905 Wtd. avg. Common Shares and equivalents (000) 222,272 232,141 Taxable-equivalent adjustment $44 $50
10 KEYCORP REPORTS FOURTH QUARTER 1997 EARNINGS JANUARY 15, 1998 PAGE 10 CONSOLIDATED QUARTERLY AVERAGE BALANCE SHEETS (in millions)
Three months ended ---------------------------------------------------- ASSETS 12-31-97 9-30-97 12-31-96 --------------- ---------------- --------------- Loans $53,304 $52,708 $48,319 Investment securities 1,270 1,413 1,615 Securities available for sale 7,502 7,399 7,271 Short-term investments 1,404 807 678 --------------- ---------------- --------------- Total earning assets 63,480 62,327 57,883 Allowance for loan losses (893) (873) (866) Cash and due from banks 2,738 2,633 2,624 Other assets 6,165 6,025 5,422 --------------- ---------------- --------------- TOTAL ASSETS $71,490 $70,112 $65,063 =============== ================ =============== LIABILITIES Deposits in domestic offices: Noninterest-bearing $ 8,750 $ 8,551 $ 8,615 Interest-bearing 32,433 32,977 34,736 Deposits in foreign offices-interest-bearing 1,663 2,065 793 --------------- ---------------- --------------- Total deposits 42,846 43,593 44,144 Federal funds purchased and securities sold under repurchase agreements 7,335 6,939 6,087 Bank notes and other short-term borrowings 5,678 5,001 3,568 Other liabilities 2,304 2,125 1,793 Long-term debt 7,443 6,879 4,567 --------------- ---------------- --------------- TOTAL LIABILITIES 65,606 64,537 60,159 Capital securities of subsidiary trusts 750 750 111 SHAREHOLDERS' EQUITY 5,134 4,825 4,793 TOTAL LIABILITIES, CAPITAL SECURITIES OF SUBSIDIARY TRUSTS AND --------------- ---------------- --------------- SHAREHOLDERS' EQUITY $71,490 $70,112 $65,063 =============== ================ ===============
11 KEYCORP REPORTS FOURTH QUARTER 1997 EARNINGS JANUARY 15, 1998 PAGE 11 CONSOLIDATED YEAR-TO-DATE AVERAGE BALANCE SHEETS (in millions)
Twelve months ended ---------------------------------- ASSETS 12-31-97 12-31-96 ---------------- --------------- Loans $51,415 $48,216 Investment securities 1,474 1,671 Securities available for sale 7,629 7,423 Short-term investments 782 535 ---------------- --------------- Total earning assets 61,300 57,845 Allowance for loan losses (875) (872) Cash and due from banks 2,623 2,594 Other assets 5,902 5,252 ---------------- --------------- TOTAL ASSETS $68,950 $64,819 ================ =============== LIABILITIES Deposits in domestic offices: Noninterest-bearing $ 8,536 $ 8,374 Interest-bearing 33,425 35,353 Deposits in foreign offices-interest-bearing 1,812 996 ---------------- --------------- Total deposits 43,773 44,723 Federal funds purchased and securities sold under repurchase agreements 6,942 5,843 Bank notes and other short-term borrowings 4,741 3,279 Other liabilities 2,074 1,644 Long-term debt 5,906 4,296 ---------------- --------------- TOTAL LIABILITIES 63,436 59,785 Capital securities of subsidiary trusts 648 28 SHAREHOLDERS' EQUITY Preferred stock -- 79 Common equity 4,866 4,927 ---------------- --------------- TOTAL SHAREHOLDERS' EQUITY 4,866 5,006 TOTAL LIABILITIES, CAPITAL SECURITIES OF SUBSIDIARY TRUSTS AND ---------------- --------------- SHAREHOLDERS' EQUITY $68,950 $64,819 ================ ===============
EX-99.2 3 EXHIBIT 99.2 1 EXHIBIT 99.2 MEDIA CONTACTS: ANALYST CONTACTS: John Fuller 216/689-8140 Lee Irving 216/689-3564 Bill Murschel 216/689-0457 Vern Patterson 216/689-0520 KEYCORP DECLARES TWO-FOR-ONE STOCK SPLIT, INCREASES QUARTERLY DIVIDEND 12 PERCENT, AND ANNOUNCES STOCK REPURCHASE DIVIDEND INCREASE REPRESENTS 33RD CONSECUTIVE YEARLY RISE CLEVELAND, January 15, 1998 - KeyCorp's (NYSE: KEY) Board of Directors today declared a two-for-one stock split in the form of a 100 percent stock dividend on its common shares, payable on March 6, 1998, to stockholders of record on February 18, 1998. The Board also increased the quarterly dividend by 12 percent -- from $0.42 to $0.47 per share ( $0.235 per share on a post-split basis). 1998 marks the 33rd consecutive year that the company's dividend has been increased. The next dividend is payable February 27, 1998, to stockholders of record February 17, 1998. The Board also authorized the purchase of up to 5 million shares (10 million shares on a post-split basis) of common stock from time to time. The timing and amount of purchases, if any, under the program will be dependent upon availability and alternate uses of capital, market conditions, and other factors. Repurchased shares will be placed in treasury and subsequently reissued for stock options, other employee benefit plans, acquisitions or other corporate purposes. "These decisions by our Board reflect our strong operating results and confidence in the strategies we've put in place," said Robert W. Gillespie, KeyCorp chairman and chief executive officer. "Our consecutive-quarter earnings growth in 1997 was particularly strong, setting new records. "The stock split will bring the price of KeyCorp common stock into a range we believe is desirable to a wider range of investors," Gillespie added. "Our stock price has nearly tripled since the end of 1994." KeyCorp presently has approximately 219 million common shares outstanding, which will increase to some 438 million following the split. Earlier today, Key reported record fourth-quarter and full-year earnings per share (on a pre-split basis) of $1.13 and $4.19, respectively. -- more -- 2 PAGE 2 - KEYCORP ANNOUNCES STOCK SPLIT - - -------------------------------------- Over the last two years, KeyCorp has undergone a significant transformation, acquiring a number of financial-services businesses while selling or consolidating more than 200 low-growth branch offices and lowering its expense base significantly. In August 1997, Key linked its coast-to-coast KeyCenter and ATM networks, creating the first single, nationwide branch system in the U.S. The re-engineering is designed to transform the company from a traditional bank into a diversified bank-based financial services company, operated on a national basis. KeyCorp is one of the nation's largest financial services companies with assets of approximately $74 billion. Through four principal lines of business - corporate banking, consumer finance, community banking, and capital partners - the Cleveland-based company provides retail and wholesale banking, investment, financing, and money management services to individuals and companies across the U.S. Key companies have a presence in 46 states from Maine to Alaska, including its network of KeyCenters, 1,900 ATM's, affiliate offices, and four telebanking centers (1-800-KEY2YOU) that provide financial products and services 24 hours a day, every day of the year. KeyCorp's web site can be found at http://www.keybank.com. # # # # -----END PRIVACY-ENHANCED MESSAGE-----