Slide 1: First Quarter 2010 Review
First Quarter 2010 Review April 21, 2010 Speakers: Henry Meyer Jeff Weeden Exhibit 99.2
Slide 2: Private Securities Litigation Reform Act of 1995 Forward-Looking Statement Disclosure
2 This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about Key's financial condition, results of operations, earnings outlook, asset quality trends and profitability. Forward-looking statements are no
Slide 3: Strategic Update
3 Strategic Update First quarter 2010 loss narrows Continued improvement in credit quality Capital and liquidity positions remain strong Management transition completed Continued investment in relationship businesses
Slide 4: 2010 Strategic Priorities
4 2010 Strategic Priorities Return to sustainable profitability Sustain strong reserves, capital and liquidity Continue building a robust risk management culture Expand and acquire client relationships Attract and retain a capable, diverse and engaged workforce
Slide 5: Financial Summary First Quarter 2010
5 Financial Summary ^ First Quarter 2010 TE = Taxable Equivalent, EOP = End of Period (a) Ratios are estimated. Loss from continuing operations attributable to Key common shareholders $ (.11) Performance - from continuing operations Net interest margin (TE) 3.19% Return on average total assets (.26)
Slide 6: Net Interest Income and Net Interest Margin
6 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 Net Interest Income 689 692 716 722 726 726 744 700 706 712 750 738 738 684 664 595 591 613 637 632 NII Adjustments 34 838 18 0 15 738.4 738 684 642 595 591 613 637 Net Interest Spread 0.0319 0.0309
Slide 7: Exit Portfolios - Average Balances
7 $4.2 ..9 ..9 1.0 3.6 10.6 ..1 $10.7 $4.2 CF&A CRE - Comml Mtg CRE - Construction Leasing Home Equity Other Consumer Exit Portfolios Total Loans Loans Held for Sale Total Loans and Loans Held for Sale Leasing CRE - Homebuilder Marine/RV Floor Plan Home Equity - Other Marine/RV & Other Consumer Tota
Slide 8: Average Deposits
8 (a) Excludes foreign office deposits. Average Deposits (a) CDs > $100K CDs < $100K Savings NOW/MMDA DDA Deposits 0.1627 0.1953 0.0279 0.3829 0.231 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 Foreign Deposits 5.721 5.9 4.121 2.761 1.3 DDA 12.9 10.7 10.6 10.6 10.7 11.1 12.4 13.6 14.6 15 NOW/Mo
Slide 9: Strong Liquidity Position
9 Strong Liquidity Position Loans to Deposits (a) Continuing operations Discontinued operations Average Earning Assets 1Q09 1Q10 Average Deposit & Funding Sources 1Q09 1Q10 Total Loans Loans HFS Investment Securities Other Investments ST Investments Core Deposits Dep. In Foreign Offices LT Debt ST B
Slide 10: 1Q10 Net Loan Charge-offs = $522 million
10 1Q10 Net Loan Charge-offs = $522 million Net Loan Charge-offs Net Loan Charge-Offs to Average Loans 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 Exit Portfolios 0.0026 0.0176 0.0049 0.007 0.0082 0.0086 0.0084 0.0092 0.0108 Consumer 0.001 0.001 0.0012 0.0017 0.0018 0.0026 0.0028 0.0033 0.0037 RE C
Slide 11: 1Q10 Nonperforming Loans
11 1Q10 Nonperforming Loans = $2,065 billion Nonperforming Assets Nonperforming Asset Trends 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 NPAs to Loans + OREO 0.0146 0.0159 0.0169 0.02 0.0284 0.0377 0.0446 0.0425 0.0431 Peer Median S&P Regional & Diversified Bank Indices 0.0135 0.0165 0.0196 0.0201
Slide 12: Capital Ratios: Tier 1 and Tangible Common Equity
12 Fed-defined minimum for a "well capitalized" bank 6.00% 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 Common 0.0583 0.056 0.0558 0.0562 0.0562 0.0736 0.0764 0.075 0.0753 Capital Raise Convertible 0.0059 0.006 0.0062 0.0065 0.003 0.0032 0.0034 0.0035 TARP 0.0226 0.0239 0.0252 0.0268 0.0282 0.0292 Q
Slide 13: Key's Targets for Success
13 Key's Targets for Success (a) Continuing operations, unless otherwise noted (b) Consolidated operations (c) Loans & loans HFS (excluding securitized loans) to deposits (excluding foreign branch) (c) Loans & loans HFS (excluding securitized loans) to deposits (excluding foreign branch) (c) Loans &
Slide 14: Appendix
14 Appendix
Slide 15: Credit Quality by Portfolio
15 Credit Quality by Portfolio (a) Net charge-off amounts are annualized in calculation. N/M = Not Meaningful $ in millions
Slide 16: Commercial Portfolio - Line of Business Net Charge-Offs and Nonperforming Loans
16 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 Regional Banking 59 77 94 117 144 145 Commercial Banking 76 284 262 264 221 265 Real Estate Capital and Corporate Banking Services 542 527 821 934 868 795 Equipment Finance 158 89 105 114 118 108 Institutional & Capital Markets 53 57 84 75 102 106 Other Segments 172
Slide 17: Commercial Portfolio - Continuing Ops.
17 Commercial Portfolio - Continuing Ops. Average Loans, NCOs and NPLs $ in millions First Quarter 2010 $ in millions Fourth Quarter 2009
Slide 18: Commercial Real Estate
18 Commercial Real Estate $ in millions (a) Nonresidential land and development loans. (a)
Slide 19: Commercial Real Estate Loans March 31, 2010
19 Commercial Real Estate Loans March 31, 2010 $ in millions (a) Nonresidential land and development loans. N/M = Not Meaningful (a)
Slide 20: Commercial Real Estate Period-end Balances, NCOs and NPLs
20 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 Owner-occupied 81 152 174 185 166 176 Other CRE 8 9 37 84 70 93 Land & development 26 85 112 79 87 78 Residential Properties 360 414 523 472 345 322 Health facilties 1 33 52 52 64 Office buildings 26 16 37 41 48 64 Multi-family 4 15 68 80 196 162 Retail Properties 58
Slide 21: Reducing Risk - CRE Residential Properties
21 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 Nonperforming 189 65 108 96 57 77 32 23 2 Performing 516 363 259 184 179 100 102 84 44 Total 705 428 367 280 236 177 134 107 46 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 Nonperforming 653 282 346 360 414 523 472 345 322 Performing 2985 2433 2010 179
Slide 22: Home Equity Loans March 31, 2010
22 Home Equity Loans March 31, 2010 $ in millions, except average loan size (a) Average LTVs are at origination. Current average LTVs for Regional Banking total home equity loans and lines is approximately 81%. (a)
Slide 23: Exit Loan Portfolio
23 Exit Loan Portfolio $ in millions (a) Includes the business aviation, commercial vehicle, office products, construction and industrial leases, and Canadian lease financing portfolios; and all remaining balances related to lease in, lease out; sale in, sale out; service contract leases and qualifi
Slide 24: Net Charge-offs to Average Loans Continuing Operations
24 Net Charge-offs to Average Loans Continuing Operations