Profile: KeyCorp (KEY.N)
5 May 2015
KeyCorp, incorporated on December 31, 1958, is a bank holding company. KeyCorp is the parent holding company for KeyBank National Association (KeyBank), its principal subsidiary, through which most of its banking services are provided. Through KeyBank and certain other subsidiaries, it provides a range of retail and commercial banking, commercial leasing, investment management, consumer finance, commercial mortgage servicing and special servicing, and investment banking products and services to individual, corporate, and institutional clients through two major business segments: Key Community Bank and Key Corporate Bank. Key Community Bank serves individuals and small to mid-sized businesses by offering a variety of deposit, investment, lending, credit card, and personalized wealth management products and business advisory services.
These products and services are provided through its relationship managers and specialists working in its 12-state branch network, which was reorganized during 2013 into nine internally-defined geographic regions: Oregon and Alaska, Washington, Rocky Mountains, Indiana, Western Ohio and Michigan, Eastern Ohio, Eastern New York, New England, and Western New York. Key Corporate Bank is a full-service corporate and investment bank focused principally on serving the needs of middle market clients in six industry sectors: consumer, energy, healthcare, industrial, public sector and real estate. Key Corporate Bank delivers a broad product suite of banking and capital markets products to its clients, including syndicated finance, debt and equity capital markets, commercial payments, equipment finance, commercial mortgage banking, derivatives, foreign exchange, financial advisory, and public finance. Key Corporate Bank is also a significant servicer of commercial mortgage loans and a significant special servicer of CMBS.
Key Corporate Bank delivers many of its product capabilities to clients of Key Community Bank. These services were provided across the country through KeyBank’s approximately 1,028 full-service retail banking branches and a network of approximately 1,335 automated teller machines (ATMs) in 12 states, as well as additional offices, online and mobile banking capabilities, and a telephone banking call center. In addition to the customary banking services of accepting deposits and making loans, the bank and trust company subsidiaries offer personal, securities lending and custody services, personal financial services, access to mutual funds, treasury services, investment banking and capital markets products, and international banking services.
Through the bank, trust companies and registered investment adviser subsidiaries, the Company provides investment management services to clients that include large corporate and public retirement plans, foundations and endowments, high-net-worth individuals, and multi-employer trust funds established for providing pension or other benefits to employees. It provides other financial services, both within and outside of primary banking markets, through various nonbank subsidiaries. These services include community development financing, securities underwriting, and brokerage. It also provides merchant services to businesses directly and through an equity participation in a joint venture.
At December 31, 2013, total loans outstanding from continuing operations were $54.5 billion. Commercial loans outstanding were $38.3 billion at December 31, 2013. Commercial, financial and agricultural loans, also referred to as commercial and industrial, represent 45.8% and 44.0% of the Company’s total loan portfolio at December 31, 2013. Commercial real estate loans represent 16.2% of its total loan portfolio at December 31, 2013. Approximately 96.9% of Consumer loans portfolio at December 31, 2013, is originated from Key Community Bank within its 12-state footprint.
The Company’s securities portfolio totaled $17.1 billion at December 31, 2013. Available-for-sale securities were $12.3 billion at December 31, 2013. Held-to-maturity securities were $4.8 billion at December 31, 2013. Essentially its entire held-to-maturity securities portfolio was invested in Collateralized mortgage obligation (CMOs) at December 31, 2013. All of its mortgage-backed securities, which include both securities available for sale and held-to-maturity securities, are issued by government-sponsored enterprises or Government National Mortgage Association (GNMA), and are traded in liquid secondary markets. The majority of its securities available-for-sale portfolio consists of CMOs, which are debt securities secured by a pool of mortgages or mortgage-backed securities. Principal investments include direct investments (investments made in a particular company) as well as indirect investments (investments made through funds that include other investors). The fair value of the direct investments was $141 million at December 31, 2013. Other investments include other equity and mezzanine instruments, such as certain real estate-related investments that are carried at fair value, as well as other types of investments that generally are carried at cost. There are indirect real-estate-related investments valued at $23 million at December 31, 2013.
Deposits and other sources of funds
Domestic deposits are the Company’s primary source of funding. During 2013, average domestic deposits were $65.3 billion and represented 86.6% of the funds it used to support loans and other earning assets. Wholesale funds, consisting of deposits in its foreign office and short-term borrowings, averaged $2.8 billion during 2013. At December 31, 2013, Key had $3.2 billion in time deposits of $100,000 or more.
127 Public Sq
CLEVELAND OH 44114-1306