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KeyCorp Nets $199 Million for First Quarter
CLEVELAND -- KeyCorp reports net income from continuing operations of $199 million, or 21 cents per common share, for the first quarter of 2012. Nonperforming loans declined to $666 million, or 1.35% of period-end loans, and nonperforming assets decreased to $767 million at March 31.
Net income compares to $184 million, or 21 cents per common share, for the first quarter of 2011, which included a deemed dividend of $49 million, or 6 cents per diluted common share related to the accelerated amortization of the discount on the repurchased preferred shares from the U.S. Treasury. First quarter 2012 net income attributable to Key common shareholders was $194 million compared to net income attributable to Key common shareholders of $173 million for the same quarter one year ago.
During the first quarter of 2012, the company continued to benefit from improved asset quality. Nonperforming loans decreased by $219 million and nonperforming assets declined by $322 million from the year-ago quarter to $666 million and $767 million, respectively.
"Key's first quarter results demonstrate continued positive momentum as we execute on our relationship strategy, strengthen our balance sheet and maintain disciplined expense control," said Beth Mooney, chairman and CEO. "Asset quality improved again this quarter, and we were pleased to see growth in our commercial, financial and agricultural loan portfolio."
Key originated approximately $8.3 billion in new or renewed lending commitments to consumers and businesses during the first quarter of 2012, which is up from $6.9 billion for the same period one year ago.
Mooney said she is particularly pleased that Key received several industry honors and recognition in the first quarter. Corporate Insight's Bank Monitor commended Key for service excellence in categories including online bill pay, online account opening, alerts and fund transfers. Greenwich Associates' 2011 national banking survey recognized Key as a national and regional winner of three excellence awards for its small business banking and middle market banking.
At March 31, Key's estimated Tier 1 common equity and Tier 1 risk-based capital ratios were 11.5% and 13.3%, compared to 11.3% and 13.0%, respectively, at Dec. 31, 2011.
"As previously announced, our board of directors has authorized a common stock repurchase program of up to $344 million to begin in the second quarter of this year through the first quarter of 2013," Mooney said. "Our board also will evaluate an increase in our quarterly common stock dividend from 3 cents per share up to 5 cents per share next month at its regular meeting."
As previously reported, on Jan. 11, Key signed a purchase and assumption agreement to acquire 37 retail banking branches in Buffalo and Rochester, N.Y. The deposits associated with these branches total approximately $2.4 billion, while loans total approximately $400 million. The transaction is expected to close early third quarter of 2012, subject to customary closing conditions, including regulatory approval of the acquisition.
SOURCE: KeyCorp.
Published by The Business Journal, Youngstown, Ohio.