KeyCorp Reports Third Quarter 2005 Earnings

CLEVELAND, Oct. 18 /PRNewswire-FirstCall/ -- KeyCorp today announced third quarter net income of $278 million, or $0.67 per diluted common share, compared with $252 million, or $0.61 per share, for the third quarter of 2004. For the second quarter of 2005, net income was $291 million, or $0.70 per diluted common share. For the first nine months of 2005, net income was $833 million, or $2.01 per diluted common share, compared with $741 million, or $1.78 per share, for the first nine months of 2004.

"Key's third quarter performance reflects the company's ability to produce solid financial results in a more challenging interest rate environment," said Chairman and Chief Executive Officer Henry L. Meyer III. "Taxable-equivalent revenue, which increased $102 million from the year-ago period, benefited from growth in net interest income and a stronger performance from our fee-based businesses. The increase in net interest income was driven by a 7 basis point improvement in the net interest margin to 3.67%, higher earning assets resulting from solid commercial loan growth, and an increase in core deposits. The improvement in fee income was due primarily to increases in loan fees, and income from principal investing and capital markets activities.

"Both net loan charge-offs and nonperforming loans were down from the same period last year, but nonperforming loans increased relative to the second quarter of 2005. The increase was attributable to Key's commercial passenger airline lease portfolio."

The company expects earnings to be in the range of $0.65 to $0.69 per share for the fourth quarter of 2005.

Separately, the company said that it has entered into a memorandum of understanding with the Federal Reserve Bank of Cleveland (FRB), and KeyBank N.A. has entered into a consent order with the Comptroller of the Currency (OCC) concerning compliance-related matters, particularly the Bank Secrecy Act. The company said it does not expect these actions to have a material effect on its operating results, adding that neither the OCC nor the FRB imposed a fine or civil money penalty in the matter. As part of the consent order and memorandum of understanding, Key has agreed to continue to strengthen its anti-money laundering and other compliance controls.

"Key takes its regulatory obligations with the utmost seriousness," said Meyer, "and we are taking all necessary measures to meet the requirements of the consent order and memorandum of understanding."

SUMMARY OF CONSOLIDATED RESULTS

Taxable-equivalent net interest income increased to $726 million for the third quarter of 2005 from $673 million for the same period last year. Average earning assets rose by 6%, due primarily to commercial loan growth, while the net interest margin increased 7 basis points to 3.67%. Compared with the second quarter of 2005, taxable-equivalent net interest income grew by $3 million. This growth was attributable to a $740 million increase in average earning assets, which more than offset the effect of a 4 basis point decline in the net interest margin. During the second quarter of 2005, Key's net interest margin benefited from a principal investing distribution of $15 million received in the form of dividends and interest. This distribution added approximately 8 basis points to the second quarter margin.

Key's noninterest income was $531 million for the third quarter of 2005, compared with $482 million for the year-ago quarter. Increases of $34 million in income from principal investing and capital markets activities, and $8 million from letter of credit and loan fees drove the improvement.

Compared with the second quarter of 2005, noninterest income grew by $45 million. The improvement reflected a $41 million increase in income from principal investing and capital markets activities. In addition, service charges on deposit accounts rose by $6 million from the prior quarter.

Key's noninterest expense was $781 million for the third quarter of 2005, compared with $729 million for the same period last year. Personnel expense rose by $20 million and nonpersonnel expense increased by $32 million, reflecting higher costs associated with net occupancy, computer processing and a variety of other expense components.

Compared with the second quarter of 2005, noninterest expense rose by $28 million. Personnel expense accounted for virtually all of the increase, with the largest increases occurring in incentive and stock-based compensation. Nonpersonnel expense was essentially unchanged. Higher costs associated with net occupancy and computer processing were offset by reductions in both marketing and miscellaneous expense. During the second quarter, miscellaneous expense included an $11 million charge to establish a reserve to absorb potential noncredit-related losses from Key's education lending business.

ASSET QUALITY

Key's provision for loan losses was $43 million for the third quarter of 2005, compared with $51 million for the year-ago quarter and $20 million for the second quarter of 2005.

Net loan charge-offs for the quarter totaled $49 million, or 0.30% of average loans, compared with $76 million, or 0.49%, for the same period last year and $48 million, or 0.30%, for the previous quarter.

At September 30, 2005, Key's nonperforming loans stood at $360 million and represented 0.55% of period-end loans, compared with 0.63% at September 30, 2004, and 0.45% at June 30, 2005. The increase in the third quarter from June 30, 2005, was attributable to several carriers within the commercial passenger airline industry for which Key has provided lease financing.

Key's allowance for loan losses stood at $1.093 billion, or 1.67% of loans outstanding at September 30, 2005, compared with $1.251 billion, or 2.02% at September 30, 2004, and $1.100 billion, or 1.70% at June 30, 2005. At September 30, 2005, the allowance for loan losses represented 304% of nonperforming loans, compared with 322% a year ago and 377% at June 30, 2005.

CAPITAL

Key's capital ratios continued to exceed all "well-capitalized" regulatory benchmarks at September 30, 2005. Key's tangible equity to tangible assets ratio was 6.68% at quarter end, compared with 6.57% at September 30, 2004, and 6.60% at June 30, 2005. The ratio is currently within management's targeted range of 6.25% to 6.75%.

Key's capital position provides it with the flexibility to take advantage of future investment opportunities, to repurchase shares when appropriate and to pay dividends. During the third quarter of 2005, Key repurchased 1,250,000 of its common shares. At September 30, 2005, there were 25,711,248 shares remaining for repurchase under the current authorization. Share repurchases and other activities that caused the change in Key's outstanding common shares over the past five quarters are summarized in the table below.

Summary of Changes in Common Shares Outstanding in thousands 3Q05 2Q05 1Q05 4Q04 3Q04 Shares outstanding at beginning of period 408,231 407,297 407,570 405,723 407,243 Issuance of shares under employee benefit and dividend reinvestment plans 1,561 934 2,227 1,847 980 Repurchase of common shares (1,250) --- (2,500) --- (2,500) Shares outstanding at end of period 408,542 408,231 407,297 407,570 405,723 LINE OF BUSINESS RESULTS

The following table shows the contribution made by each major business group to Key's taxable-equivalent revenue and net income for the periods presented. The specific lines of business that comprise each of the major business groups are described under the heading "Line of Business Descriptions." For more detailed financial information pertaining to each business group and its respective lines of business, see the last two pages of this release.

Major Business Groups Percent change 3Q05 vs. dollars in millions 3Q05 2Q05 3Q04 2Q05 3Q04 Revenue (taxable equivalent) Consumer Banking $716 $706 $722 1.4 % (.8)% Corporate and Investment Banking 542 523 456 3.6 18.9 Other Segments 24 8 (2) 200.0 N/M Total segments 1,282 1,237 1,176 3.6 9.0 Reconciling Items (25) (28) (21) 10.7 (19.0) Total $1,257 $1,209 $1,155 4.0 % 8.8 % Net income (loss) ` Consumer Banking $123 $122 $125 .8 % (1.6)% Corporate and Investment Banking 147 157 124 (6.4) 18.5 Other Segments 21 10 4 110.0 425.0 Total segments 291 289 253 .7 15.0 Reconciling Items (13) 2 (1) N/M N/M Total $278 $291 $252 (4.5)% 10.3 % N/M = Not Meaningful Consumer Banking Percent change 3Q05 vs. dollars in millions 3Q05 2Q05 3Q04 2Q05 3Q04 Summary of operations Net interest income (TE) $483 $474 $492 1.9 % (1.8)% Noninterest income 233 232 230 .4 1.3 Total revenue (TE) 716 706 722 1.4 (.8) Provision for loan losses 29 22 52 31.8 (44.2) Noninterest expense 490 490 470 --- 4.3 Income before income taxes (TE) 197 194 200 1.5 (1.5) Allocated income taxes and TE adjustments 74 72 75 2.8 (1.3) Net income $123 $122 $125 .8 % (1.6)% Percent of consolidated net income 44 % 42 % 50 % N/A N/A Average balances Loans $29,139 $29,303 $31,754 (.6)% (8.2)% Total assets 35,473 35,390 37,270 .2 (4.8) Deposits 42,359 41,567 40,034 1.9 5.8 TE = Taxable Equivalent, N/A = Not Applicable Additional Consumer Banking Data Percent change 3Q05 vs. dollars in millions 3Q05 2Q05 3Q04 2Q05 3Q04 Average deposits outstanding Noninterest-bearing $7,122 $6,816 $6,544 4.5 % 8.8 % Money market deposit accounts and other savings 20,785 20,323 19,766 2.3 5.2 Time 14,452 14,428 13,724 .2 5.3 Total deposits $42,359 $41,567 $40,034 1.9 % 5.8 % Home equity loans Community Banking: Average balance $10,365 $10,397 $10,326 Average loan-to-value ratio 71 % 71 % 72 % Percent first lien positions 61 61 60 National Home Equity: Average balance $3,515 $3,498 $4,502 Average loan-to-value ratio 65 % 65 % 71 % Percent first lien positions 66 67 76 Other data On-line households / household penetration 607,127/49% 595,411/47% 550,968/44% KeyCenters 946 945 921 Automated teller machines 2,185 2,205 2,187

Net income for Consumer Banking was $123 million for the third quarter of 2005, compared with $125 million for the year-ago quarter. A decrease in net interest income and an increase in noninterest expense caused the decline and more than offset growth in noninterest income and a significant reduction in the provision for loan losses.

Taxable-equivalent net interest income decreased by $9 million, or 2%, from the third quarter of 2004, due to a less favorable interest rate spread on average earning assets and a reduction in loans which resulted from the sale of the higher-yielding broker-originated home equity and indirect automobile loan portfolios within the Consumer Finance line of business. The adverse effects of these factors were moderated by growth in average deposits.

Noninterest expense increased by $20 million, or 4%, due primarily to higher costs associated with marketing, loan servicing, recording and filing fees, and various indirect charges. The rise in these costs was partially offset by a decrease in fees for professional services.

Noninterest income rose by $3 million, or 1%, due largely to increases in securitization servicing, insurance and electronic banking fees. These increases were offset in part by a decrease in net gains from loan securitizations and sales, and a decline in service charges on deposit accounts.

The provision for loan losses decreased by $23 million, or 44%, as a result of improved asset quality.

Corporate and Investment Banking Percent change 3Q05 vs. dollars in millions 3Q05 2Q05 3Q04 2Q05 3Q04 Summary of operations Net interest income (TE) $297 $292 $236 1.7 % 25.8 % Noninterest income 245 231 220 6.1 11.4 Total revenue (TE) 542 523 456 3.6 18.9 Provision for loan losses 14 (2) (1) N/M N/M Noninterest expense 293 274 259 6.9 13.1 Income before income taxes (TE) 235 251 198 (6.4) 18.7 Allocated income taxes and TE adjustments 88 94 74 (6.4) 18.9 Net income $147 $157 $124 (6.4)% 18.5 % Percent of consolidated net income 53 % 54 % 49 % N/A N/A Average balances Loans $35,064 $34,577 $28,827 1.4 % 21.6 % Total assets 41,398 40,662 35,194 1.8 17.6 Deposits 10,136 9,691 7,800 4.6 29.9 TE = Taxable Equivalent, N/M = Not Meaningful, N/A = Not Applicable Additional Corporate and Investment Banking Data Percent change 3Q05 vs. dollars in millions 3Q05 2Q05 3Q04 2Q05 3Q04 Average lease financing receivables managed by Key Equipment Finance(a) Receivables held in Key Equipment Finance portfolio $8,150 $7,950 $6,301 2.5 % 29.3 % Receivables assigned to other lines of business 2,011 2,034 1,881 (1.1) 6.9 Total lease financing receivables managed $10,161 $9,984 $8,182 1.8 % 24.2 % (a) Includes lease financing receivables held in portfolio and those assigned to other lines of business (primarily Corporate Banking) if those businesses are principally responsible for maintaining the relationship with the client.

Net income for Corporate and Investment Banking was $147 million for the third quarter of 2005, up from $124 million for the same period last year. Increases in both net interest income and noninterest income drove the improvement. These positive changes were offset, in part, by an increase in noninterest expense. In addition, Corporate and Investment Banking's provision for loan losses was an expense in the third quarter of 2005, compared with a credit in the year-ago quarter.

Taxable-equivalent net interest income increased by $61 million, or 26%, from the third quarter of 2004, due primarily to strong growth in average loans and leases, as well as deposits. Average loans and leases rose by $6.2 billion, or 22%, reflecting improvements in each of the primary lines of business. The increase in lease financing receivables in the Key Equipment Finance line was bolstered by the acquisition of American Express Business Finance Corporation ("AEBF") during the fourth quarter of 2004.

Noninterest income rose by $25 million, or 11%, due largely to increases in non-yield-related loan fees and income from capital markets activities.

Noninterest expense rose by $34 million, or 13%, as business expansion, including the acquisition of AEBF, and improved profitability led to increases in personnel and various other expense categories.

The provision for loan losses was an expense of $14 million for the third quarter of 2005, compared with a credit of $1 million for the year-ago quarter.

On July 1, 2005, we expanded our FHA financing and servicing capabilities by acquiring Malone Mortgage Company, based in Dallas, Texas. This is one in a series of acquisitions that we have made over the past several years to build upon our success in commercial mortgage origination and servicing.

Other Segments

Other segments consist primarily of Corporate Treasury and Key's Principal Investing unit. These segments generated net income of $21 million for the third quarter of 2005, compared with $4 million for the same period last year. Increases in net gains from principal investing and net interest income drove the improvement.

Line of Business Descriptions Consumer Banking

Community Banking includes Retail Banking, Small Business and McDonald Financial Group.

Retail Banking provides individuals with branch-based deposit and investment products, personal finance services and loans, including residential mortgages, home equity and various types of installment loans.

Small Business provides businesses that typically have annual sales revenues of $10 million or less with deposit, investment and credit products, and business advisory services.

McDonald Financial Group offers financial, estate and retirement planning, and asset management services to assist high-net-worth clients with their banking, brokerage, trust, portfolio management, insurance, charitable giving and related needs.

Consumer Finance includes Indirect Lending and National Home Equity.

Indirect Lending offers loans to consumers through dealers and finances inventory for automobile and marine dealers. This business unit also provides federal and private education loans to students and their parents and processes payments on loans that private schools make to parents.

National Home Equity provides both prime and nonprime mortgage and home equity loan products to individuals. These products originate outside of Key's retail branch system. This business unit also works with home improvement contractors to provide home equity and home improvement solutions.

Corporate and Investment Banking

Corporate Banking provides products and services to large corporations, middle-market companies, financial institutions and government organizations. These products and services include commercial lending, treasury management, investment banking, derivatives and foreign exchange, equity and debt underwriting and trading, and syndicated finance.

Through its Victory Capital Management unit, Corporate Banking also manages or gives advice regarding investment portfolios for a national client base, including corporations, labor unions, not-for-profit organizations, governments and individuals. These portfolios may be managed in separate accounts, common funds or the Victory family of mutual funds.

KeyBank Real Estate Capital provides construction and interim lending, permanent debt placements and servicing, and equity and investment banking services to developers, brokers and owner-investors. This line of business deals exclusively with nonowner-occupied properties (i.e., generally properties for which the owner occupies less than 60% of the premises).

Key Equipment Finance meets the equipment leasing needs of companies worldwide and provides equipment manufacturers, distributors and resellers with financing options for their clients. Lease financing receivables and related revenues are assigned to other lines of business (primarily Corporate Banking) if those businesses are principally responsible for maintaining the relationship with the client.

Cleveland-based KeyCorp is one of the nation's largest bank-based financial services companies, with assets of approximately $92 billion. Key companies provide investment management, retail and commercial banking, consumer finance, and investment banking products and services to individuals and companies throughout the United States and, for certain businesses, internationally. The company's businesses deliver their products and services through 946 KeyCenters and offices; a network of 2,185 ATMs; telephone banking centers (1.800.KEY2YOU); and a Web site, Key.com(R), that provides account access and financial products 24 hours a day.

Notes to Editors:

A live Internet broadcast of KeyCorp's conference call to discuss quarterly earnings and currently anticipated earnings trends and to answer analysts' questions can be accessed through the Investor Relations section at http://www.key.com/ir at 9:00 a.m. ET, on Tuesday October 18, 2005. A tape of the call will be available through October 25.

For up-to-date company information, media contacts and facts and figures about Key's lines of business visit our Media Newsroom at http://www.key.com/newsroom.

This news release contains forward-looking statements about issues such as anticipated earnings outlook, asset quality trends and anticipated improvement in the profitability of KeyCorp. Forward-looking statements by their nature are subject to assumptions, risks and uncertainties. Actual results could differ materially from those contained in or implied by such forward-looking statements for a variety of factors including: (1) changes in interest rates; (2) failure of the economy to continue to improve, which could materially impact credit quality trends and our ability to generate loans; (3) increased competitive pressure among financial services companies; (4) inability to successfully execute strategic initiatives designed to grow revenues and/or manage expenses; (5) consummation of significant business combinations or divestitures; (6) operational or risk management failures due to technological or other factors; (7) new legal obligations or restrictions or unfavorable resolution of litigation; (8) disruption in the economy and general business climate as a result of terrorist activities or military actions; and (9) changes in accounting, tax or regulatory practices or requirements. For further information regarding KeyCorp, please read the KeyCorp reports filed with the SEC that are available at http://www.sec.gov/.

Financial Highlights (dollars in millions, except per share amounts) Three months ended 9-30-05 6-30-05 9-30-04 Summary of operations Net interest income (TE) $726 $723 $673 Noninterest income 531 486 482 Total revenue (TE) 1,257 1,209 1,155 Provision for loan losses 43 20 51 Noninterest expense 781 753 729 Net income 278 291 252 Per common share Net income $.68 $.71 $.62 Net income - assuming dilution .67 .70 .61 Cash dividends paid .325 .325 .31 Book value at period end 18.41 18.01 17.12 Market price at period end 32.25 33.15 31.60 Performance ratios Return on average total assets 1.22 % 1.30 % 1.16 % Return on average equity 14.84 16.15 14.62 Net interest margin (TE) 3.67 3.71 3.60 Capital ratios at period end Equity to assets 8.15 % 8.08 % 7.85 % Tangible equity to tangible assets 6.68 6.60 6.57 Tier 1 risk-based capital(a) 7.75 7.68 7.72 Total risk-based capital (a) 11.86 11.72 11.67 Leverage(a) 8.60 8.49 8.27 Asset quality Net loan charge-offs $49 $48 $76 Net loan charge-offs to average loans .30 % .30 % .49 % Allowance for loan losses $1,093 $1,100 $1,251 Allowance for loan losses to period- end loans 1.67 % 1.70 % 2.02 % Allowance for loan losses to nonperforming loans 303.61 376.71 321.59 Nonperforming loans at period end $360 $292 $389 Nonperforming assets at period end 393 338 460 Nonperforming loans to period-end loans .55 % .45 % .63 % Nonperforming assets to period-end loans plus OREO and other nonperforming assets .60 .52 .74 Trust and brokerage assets Assets under management $76,341 $76,807 $71,233 Nonmanaged and brokerage assets 57,313 57,006 67,596 Other data Average full-time equivalent employees 19,456 19,429 19,635 KeyCenters 946 945 921 Taxable-equivalent adjustment $33 $30 $22 Financial Highlights (continued) (dollars in millions, except per share amounts) Nine months ended 9-30-05 9-30-04 Summary of operations Net interest income (TE) $2,163 $2,001 Noninterest income 1,517 1,450 Total revenue (TE) 3,680 3,451 Provision for loan losses 107 206 Noninterest expense 2,303 2,143 Net income 833 741 Per common share Net income $2.04 $1.80 Net income - assuming dilution 2.01 1.78 Cash dividends paid .975 .93 Performance ratios Return on average total assets 1.23 % 1.16 % Return on average equity 15.36 14.36 Net interest margin (TE) 3.68 3.63 Asset quality Net loan charge-offs $151 $291 Net loan charge-offs to average loans .32 % .64 % Other data Average full-time equivalent employees 19,508 19,577 Taxable-equivalent adjustment $91 $68 (a) 9-30-05 ratio is estimated. TE = Taxable Equivalent Consolidated Balance Sheets (dollars in millions) 9-30-05 6-30-05 9-30-04 Assets Loans $65,575 $64,690 $61,968 Loans held for sale 3,595 3,274 2,338 Investment securities 98 59 78 Securities available for sale 7,124 7,271 7,182 Short-term investments 2,394 1,845 2,753 Other investments 1,310 1,409 1,341 Total earning assets 80,096 78,548 75,660 Allowance for loan losses (1,093) (1,100) (1,251) Cash and due from banks 2,660 2,968 2,984 Premises and equipment 593 576 599 Goodwill 1,344 1,342 1,179 Other intangible assets 109 101 32 Corporate-owned life insurance 2,658 2,639 2,574 Accrued income and other assets 5,956 5,941 6,686 Total assets $92,323 $91,015 $88,463 Liabilities Deposits in domestic offices: NOW and money market deposit accounts $23,541 $22,071 $21,165 Savings deposits 1,922 2,022 1,976 Certificates of deposit ($100,000 or more) 4,783 5,094 4,715 Other time deposits 10,804 10,794 10,212 Total interest-bearing 41,050 39,981 38,068 Noninterest-bearing 12,202 12,158 12,008 Deposits in foreign office - interest-bearing 4,819 5,924 5,767 Total deposits 58,071 58,063 55,843 Federal funds purchased and securities sold under repurchase agreements 3,444 2,824 3,322 Bank notes and other short-term borrowings 3,001 3,315 2,853 Accrued expense and other liabilities 6,248 5,873 6,055 Long-term debt 14,037 13,588 13,444 Total liabilities 84,801 83,663 81,517 Shareholders' equity Preferred stock --- --- --- Common shares 492 492 492 Capital surplus 1,517 1,504 1,477 Retained earnings 7,719 7,574 7,197 Treasury stock (2,133) (2,132) (2,172) Accumulated other comprehensive loss (73) (86) (48) Total shareholders' equity 7,522 7,352 6,946 Total liabilities and shareholders' equity $92,323 $91,015 $88,463 Common shares outstanding (000) 408,542 408,231 405,723 Consolidated Statements of Income (dollars in millions, except per share amounts) Three months ended Nine months ended 9-30-05 6-30-05 9-30-04 9-30-05 9-30-04 Interest income Loans $1,006 $946 $810 $2,837 $2,393 Loans held for sale 56 53 30 190 81 Investment securities 1 1 2 3 4 Securities available for sale 84 80 84 244 250 Short-term investments 15 12 9 37 27 Other investments 12 24 10 44 26 Total interest income 1,174 1,116 945 3,355 2,781 Interest expense Deposits 273 238 171 717 493 Federal funds purchased and securities sold under repurchase agreements 31 25 17 81 37 Bank notes and other short- term borrowings 22 19 8 58 29 Long-term debt 155 141 98 427 289 Total interest expense 481 423 294 1,283 848 Net interest income 693 693 651 2,072 1,933 Provision for loan losses 43 20 51 107 206 650 673 600 1,965 1,727 Noninterest income Trust and investment services income 135 135 135 408 421 Service charges on deposit accounts 82 76 84 228 254 Investment banking and capital markets income 93 52 59 212 178 Letter of credit and loan fees 46 47 38 133 108 Corporate-owned life insurance income 26 24 25 78 77 Electronic banking fees 24 24 22 70 62 Net gains from loan securitizations and sales 12 10 19 41 45 Net securities gains (losses) 3 1 --- (2) 7 Other income 110 117 100 349 298 Total noninterest income 531 486 482 1,517 1,450 Noninterest expense Personnel 414 386 394 1,190 1,138 Net occupancy 66 55 57 212 176 Computer processing 54 50 49 155 141 Equipment 28 28 28 84 89 Professional fees 29 30 27 87 81 Marketing 29 34 26 88 79 Other expense 161 170 148 487 439 Total noninterest expense 781 753 729 2,303 2,143 Income before income taxes 400 406 353 1,179 1,034 Income taxes 122 115 101 346 293 Net income $278 $291 $252 $833 $741 Net income per common share $.68 $.71 $.62 $2.04 $1.80 Net income per common share -- assuming dilution .67 .70 .61 2.01 1.78 Weighted-average common shares outstanding (000) 410,456 408,754 407,187 409,166 411,371 Weighted-average common shares and potential common shares outstanding (000) 415,441 414,309 411,575 414,510 416,002 Consolidated Average Balance Sheets, Net Interest Income and Yields/Rates (dollars in millions) Third Quarter 2005 Second Quarter 2005 Average Yield/ Average Yield/ Balance Interest Rate Balance Interest Rate Assets Loans: (a,b) Commercial, financial and agricultural $19,249 $280 5.78 % $19,477 $258 5.31 % Real estate - commercial mortgage 8,467 136 6.42 8,373 129 6.13 Real estate - construction 6,388 110 6.81 6,117 98 6.45 Commercial lease financing 10,161 158 6.19 9,984 158 6.33 Total commercial loans 44,265 684 6.15 43,951 643 5.86 Real estate - residential 1,472 23 6.13 1,477 21 6.04 Home equity 13,888 236 6.72 13,904 225 6.49 Consumer - direct 1,794 40 8.96 1,831 36 7.93 Consumer - indirect lease financing 36 1 11.05 53 1 10.76 Consumer - indirect other 3,303 55 6.62 3,275 50 6.07 Total consumer loans 20,493 355 6.86 20,540 333 6.53 Total loans 64,758 1,039 6.37 64,491 976 6.07 Loans held for sale 3,521 56 6.43 3,169 53 6.61 Investment securities(a) 76 1 7.00 65 1 8.42 Securities available for sale(c) 7,131 84 4.65 7,081 80 4.54 Short-term investments 1,972 15 3.15 1,799 12 2.58 Other investments(c) 1,342 12 3.25 1,455 24 6.42 Total earning assets 78,800 1,207 6.08 78,060 1,146 5.88 Allowance for loan losses (1,095) (1,124) Accrued income and other assets 12,918 12,979 Total assets $90,623 $89,915 Liabilities NOW and money market deposit accounts $22,886 101 1.75 $22,301 77 1.39 Savings deposits 1,952 2 .29 1,999 1 .26 Certificates of deposit ($100,000 or more) (d) 4,928 48 3.85 4,999 46 3.70 Other time deposits 10,805 87 3.21 10,806 82 3.05 Deposits in foreign office 4,048 35 3.46 4,314 32 2.96 Total interest- bearing deposits 44,619 273 2.43 44,419 238 2.16 Federal funds purchased and securities sold under repurchase agreements 3,674 31 3.28 3,830 25 2.67 Bank notes and other short-term borrowings 2,841 22 3.04 2,792 19 2.72 Long-term debt (d) 13,814 155 4.50 13,929 141 4.11 Total interest- bearing liabilities 64,948 481 2.94 64,970 423 2.62 Noninterest-bearing deposits 12,215 11,717 Accrued expense and other liabilities 6,027 6,000 Total liabilities 83,190 82,687 Shareholders' equity 7,433 7,228 Total liabilities and shareholders' equity $90,623 $89,915 Interest rate spread (TE) 3.14 % 3.26 % Net interest income (TE) and net interest margin (TE) 726 3.67 % 723 3.71 % TE adjustment (a) 33 30 Net interest income, GAAP basis $693 $693 Consolidated Average Balance Sheets, Net Interest Income and Yields/Rates (dollars in millions) Third Quarter 2004 Average Balance Interest Yield/Rate Assets Loans: (a,b) Commercial, financial and agricultural $17,453 $191 4.34 % Real estate - commercial mortgage 7,061 88 4.94 Real estate - construction 4,831 62 5.14 Commercial lease financing 8,182 119 5.77 Total commercial loans 37,527 460 4.87 Real estate - residential 1,531 21 5.80 Home equity 14,844 212 5.67 Consumer - direct 2,055 38 7.35 Consumer - indirect lease financing 144 4 10.07 Consumer - indirect other 5,153 97 7.56 Total consumer loans 23,727 372 6.26 Total loans 61,254 832 5.41 Loans held for sale 2,476 30 4.74 Investment securities(a) 79 2 8.65 Securities available for sale(c) 6,982 84 4.88 Short-term investments 2,527 9 1.50 Other investments(c) 1,328 10 2.98 Total earning assets 74,646 967 5.16 Allowance for loan losses (1,270) Accrued income and other assets 13,156 Total assets $86,532 Liabilities NOW and money market deposit accounts $20,454 39 .77 Savings deposits 1,986 2 .22 Certificates of deposit ($100,000 or more) (d) 4,852 44 3.60 Other time deposits 10,348 73 2.81 Deposits in foreign office 3,593 13 1.47 Total interest-bearing deposits 41,233 171 1.65 Federal funds purchased and securities sold under repurchase agreements 5,032 17 1.35 Bank notes and other short-term borrowings 2,614 8 1.33 Long-term debt (d) 13,415 98 3.01 Total interest-bearing liabilities 62,294 294 1.90 Noninterest-bearing deposits 11,285 Accrued expense and other liabilities 6,098 Total liabilities 79,677 Shareholders' equity 6,855 Total liabilities and shareholders' equity $86,532 Interest rate spread (TE) 3.26 % Net interest income (TE) and net interest margin (TE) 673 3.60 % TE adjustment(a) 22 Net interest income, GAAP basis $651 (a) Interest income on tax-exempt securities and loans has been adjusted to a taxable-equivalent basis using the statutory federal income tax rate of 35%. (b) For purposes of these computations, nonaccrual loans are included in average loan balances. (c) Yield is calculated on the basis of amortized cost. (d) Rate calculation excludes basis adjustments related to fair value hedges. TE = Taxable Equivalent GAAP = U.S. generally accepted accounting principles Consolidated Average Balance Sheets, Net Interest Income and Yields/Rates (dollars in millions) Nine months ended Nine months ended September 30, 2005 September 30, 2004 Average Yield/ Average Yield/ Balance Interest Rate Balance Interest Rate Assets Loans: (a,b) Commercial, financial and agricultural $19,307 $768 5.32 % $16,857 $556 4.40 % Real estate - commercial mortgage 8,344 380 6.09 6,717 247 4.90 Real estate - construction 6,050 289 6.38 4,803 176 4.91 Commercial lease financing 10,067 474 6.28 8,082 358 5.90 Total commercial loans 43,768 1,911 5.83 36,459 1,337 4.89 Real estate - residential 1,471 67 6.06 1,581 71 6.03 Home equity 13,926 674 6.47 14,813 623 5.61 Consumer - direct 1,850 114 8.25 2,063 116 7.49 Consumer - indirect lease financing 55 4 10.62 202 15 9.82 Consumer - indirect other 3,276 157 6.37 5,226 297 7.58 Total consumer loans 20,578 1,016 6.59 23,885 1,122 6.27 Total loans 64,346 2,927 6.08 60,344 2,459 5.44 Loans held for sale 3,654 190 6.96 2,468 81 4.37 Investment securities(a) 70 4 8.00 88 6 8.73 Securities available for sale(c) 7,146 244 4.54 7,209 250 4.65 Short-term investments 1,818 37 2.74 2,258 27 1.60 Other investments(c) 1,406 44 4.00 1,203 26 2.86 Total earning assets 78,440 3,446 5.86 73,570 2,849 5.17 Allowance for loan losses (1,117) (1,295) Accrued income and other assets 13,175 13,192 Total assets $90,498 $85,467 Liabilities NOW and money market deposit accounts $22,274 233 1.40 $19,699 101 .69 Savings deposits 1,969 4 .26 2,026 4 .23 Certificates of deposit ($100,000 or more) (d) 4,941 138 3.74 4,821 134 3.72 Other time deposits 10,734 245 3.06 10,631 229 2.88 Deposits in foreign office 4,438 97 2.93 2,801 25 1.21 Total interest- bearing deposits 44,356 717 2.16 39,978 493 1.65 Federal funds purchased and securities sold under repurchase agreements 3,990 81 2.70 4,529 37 1.09 Bank notes and other short-term borrowings 2,860 58 2.71 2,577 29 1.52 Long-term debt (d) 14,172 427 4.12 14,366 289 2.79 Total interest- bearing liabilities 65,378 1,283 2.64 61,450 848 1.86 Noninterest-bearing deposits 11,825 10,986 Accrued expense and other liabilities 6,042 6,138 Total liabilities 83,245 78,574 Shareholders' equity 7,253 6,893 Total liabilities and shareholders' equity $90,498 $85,467 Interest rate spread (TE) 3.22 % 3.31 % Net interest income (TE) and net interest margin (TE) 2,163 3.68 % 2,001 3.63 % TE adjustment(a) 91 68 Net interest income, GAAP basis $2,072 $1,933 (a) Interest income on tax-exempt securities and loans has been adjusted to a taxable-equivalent basis using the statutory federal income tax rate of 35%. (b) For purposes of these computations, nonaccrual loans are included in average loan balances. (c) Yield is calculated on the basis of amortized cost. (d) Rate calculation excludes basis adjustments related to fair value hedges. TE = Taxable Equivalent GAAP = U.S. generally accepted accounting principles Noninterest Income (in millions) Three months Nine months ended ended 9-30-05 6-30-05 9-30-04 9-30-05 9-30-04 Trust and investment services income (a) $135 $135 $135 $408 $421 Service charges on deposit accounts 82 76 84 228 254 Investment banking and capital markets income (a) 93 52 59 212 178 Letter of credit and loan fees 46 47 38 133 108 Corporate-owned life insurance income 26 24 25 78 77 Electronic banking fees 24 24 22 70 62 Net gains from loan securitizations and sales 12 10 19 41 45 Net securities gains (losses) 3 1 --- (2) 7 Other income: Operating lease income 47 48 46 141 137 Insurance income 16 10 11 37 36 Loan securitization servicing fees 5 5 2 15 4 Credit card fees 4 5 3 12 9 Miscellaneous income 38 49 38 144 112 Total other income 110 117 100 349 298 Total noninterest income $531 $486 $482 $1,517 $1,450 (a) Additional detail provided in tables below. Trust and Investment Services Income (in millions) Three months Nine months ended ended 9-30-05 6-30-05 9-30-04 9-30-05 9-30-04 Brokerage commissions and fee income $61 $62 $61 $186 $197 Personal asset management and custody fees 39 38 38 115 117 Institutional asset management and custody fees 35 35 36 107 107 Total trust and investment services income $135 $135 $135 $408 $421 Investment Banking and Capital Markets Income (in millions) Three months Nine months ended ended 9-30-05 6-30-05 9-30-04 9-30-05 9-30-04 Investment banking income $21 $19 $32 $57 $83 Net gains from principal investing 31 1 10 44 39 Foreign exchange income 11 9 7 29 31 Dealer trading and derivatives income (loss) 16 10 (2) 45 --- Income from other investments 14 13 12 37 25 Total investment banking and capital markets income $93 $52 $59 $212 $178 Noninterest Expense (dollars in millions) Three months Nine months ended ended 9-30-05 6-30-05 9-30-04 9-30-05 9-30-04 Personnel (a) $414 $386 $394 $1,190 $1,138 Net occupancy 66 55 57 212 176 Computer processing 54 50 49 155 141 Equipment 28 28 28 84 89 Professional fees 29 30 27 87 81 Marketing 29 34 26 88 79 Other expense: Operating lease expense 40 40 39 118 115 Postage and delivery 12 12 13 37 39 Telecommunications 8 8 8 23 22 Franchise and business taxes 8 9 9 25 17 OREO expense, net 2 2 3 6 14 Provision for losses on lending-related commitments 2 2 2 (7) (5) Miscellaneous expense 89 97 74 285 237 Total other expense 161 170 148 487 439 Total noninterest expense $781 $753 $729 $2,303 $2,143 Average full-time equivalent employees 19,456 19,429 19,635 19,508 19,577 (a) Additional detail provided in table below. Personnel Expense (in millions) Three months Nine months ended ended 9-30-05 6-30-05 9-30-04 9-30-05 9-30-04 Salaries $222 $218 $213 $658 $632 Incentive compensation 104 92 103 276 280 Employee benefits 67 65 63 207 193 Stock-based compensation 17 9 12 37 27 Severance 4 2 3 12 6 Total personnel expense $414 $386 $394 $1,190 $1,138 Loan Composition (dollars in millions) Percent change 9-30-05 vs. 9-30-05 6-30-05 9-30-04 6-30-05 9-30-04 Commercial, financial and agricultural $19,451 $19,331 $17,492 .6 % 11.2 % Commercial real estate: Commercial mortgage 8,618 8,507 7,315 1.3 17.8 Construction 6,700 6,236 5,126 7.4 30.7 Total commercial real estate loans 15,318 14,743 12,441 3.9 23.1 Commercial lease financing 10,339 10,113 8,294 2.2 24.7 Total commercial loans 45,108 44,187 38,227 2.1 18.0 Real estate - residential mortgage 1,476 1,466 1,528 .7 (3.4) Home equity 13,872 13,921 14,950 (.4) (7.2) Consumer - direct 1,792 1,793 2,013 (.1) (11.0) Consumer - indirect: Automobile lease financing 28 43 120 (34.9) (76.7) Automobile loans --- --- 1,862 --- (100.0) Marine 2,676 2,665 2,648 .4 1.1 Other 623 615 620 1.3 .5 Total consumer - indirect loans 3,327 3,323 5,250 .1 (36.6) Total consumer loans 20,467 20,503 23,741 (.2) (13.8) Total loans $65,575 $64,690 $61,968 1.4 % 5.8 % Loans Held for Sale Composition (dollars in millions) Percent change 9-30-05 vs. 9-30-05 6-30-05 9-30-04 6-30-05 9-30-04 Real estate - commercial mortgage $416 $519 $314 (19.8)% 32.5 % Real estate - residential mortgage 21 23 24 (8.7) (12.5) Real estate - construction 5 --- --- N/M N/M Home equity 1 1 21 --- (95.2) Education 3,123 2,586 1,979 20.8 57.8 Automobile 29 145 --- (80.0) N/M Total loans held for sale $3,595 $3,274 $2,338 9.8 % 53.8 % N/M = Not Meaningful Summary of Loan Loss Experience (dollars in millions) Three months ended Nine months ended 9-30-05 6-30-05 9-30-04 9-30-05 9-30-04 Average loans outstanding during the period $64,758 $64,491 $61,254 $64,346 $60,344 Allowance for loan losses at beginning of period $1,100 $1,128 $1,276 $1,138 $1,406 Loans charged off: Commercial, financial and agricultural 14 19 33 58 125 Real estate -- commercial mortgage 4 9 8 16 26 Real estate -- construction --- --- --- 5 5 Total commercial real estate loans 4 9 8 21 31 Commercial lease financing 18 13 9 43 34 Total commercial loans 36 41 50 122 190 Real estate --- residential mortgage 1 2 6 5 15 Home equity 7 7 9 20 37 Consumer -- direct 10 10 9 28 32 Consumer -- indirect lease financing 1 1 1 3 6 Consumer -- indirect other 14 14 38 44 130 Total consumer loans 33 34 63 100 220 69 75 113 222 410 Recoveries: Commercial, financial and agricultural 4 5 10 14 35 Real estate -- commercial mortgage 1 --- 1 2 4 Real estate -- construction --- 2 --- 2 4 Total commercial real estate loans 1 2 1 4 8 Commercial lease financing 7 10 3 27 10 Total commercial loans 12 17 14 45 53 Real estate -- residential mortgage --- 1 --- 1 1 Home equity 1 2 2 4 4 Consumer -- direct 2 2 3 6 7 Consumer -- indirect lease financing 1 --- 1 2 3 Consumer -- indirect other 4 5 17 13 51 Total consumer loans 8 10 23 26 66 20 27 37 71 119 Net loans charged off (49) (48) (76) (151) (291) Provision for loan losses 43 20 51 107 206 Foreign currency translation adjustment (1) --- --- (1) --- Reclassification of allowance for credit losses on lending-related commitments (a) --- --- --- --- (70) Allowance for loan losses at end of period $1,093 $1,100 $1,251 $1,093 $1,251 Net loan charge-offs to average loans .30% .30% .49% .32% .64% Allowance for loan losses to period-end loans 1.67 1.70 2.02 1.67 2.02 Allowance for loan losses to nonperforming loans 303.61 376.71 321.59 303.61 321.59 (a) Included in accrued expenses and other liabilities on the consolidated balance sheet. Changes in Allowance for Credit Losses on Lending-Related Commitments (in millions) Three months ended Nine months ended 9-30-05 6-30-05 9-30-04 9-30-05 9-30-04 Balance at beginning of period $57 $55 $63 $66 --- Reclassification of allowance for credit losses --- --- --- --- $70 Provision for losses on lending-related commitments 2 2 2 (7) (5) Balance at end of period (a) $59 $57 $65 $59 $65 (a) Included in accrued expenses and other liabilities on the consolidated balance sheet. Summary of Nonperforming Assets and Past Due Loans (dollars in millions) 9-30-05 6-30-05 3-31-05 12-31-04 9-30-04 Commercial, financial and agricultural $50 $58 $46 $37 $55 Real estate - commercial mortgage 33 36 41 37 55 Real estate - construction 3 3 5 20 1 Total commercial real estate loans 36 39 46 57 56 Commercial lease financing 151 73 75 84 74 Total commercial loans 237 170 167 178 185 Real estate - residential mortgage 40 38 43 39 36 Home equity 75 74 76 80 149 Consumer - direct 3 4 3 3 4 Consumer - indirect lease financing 1 1 5 1 1 Consumer - indirect other 4 5 5 7 14 Total consumer loans 123 122 132 130 204 Total nonperforming loans 360 292 299 308 389 Nonperforming loans held for sale 2 1 6 8 1 OREO 29 33 58 53 60 Allowance for OREO losses (3) (2) (4) (4) (5) OREO, net of allowance 26 31 54 49 55 Other nonperforming assets 5 14 12 14 15 Total nonperforming assets $393 $338 $371 $379 $460 Accruing loans past due 90 days or more $94 $74 $79 $122 $139 Accruing loans past due 30 through 89 days 550 475 495 491 602 Nonperforming loans to period-end loans .55 % .45 % .47 % .49 % .63 % Nonperforming assets to period-end loans plus OREO and other nonperforming assets .60 .52 .58 .60 .74 Summary of Changes in Nonperforming Loans (in millions) 3Q05 2Q05 1Q05 4Q04 3Q04 Balance at beginning of period $292 $299 $308 $389 $428 Loans placed on nonaccrual status 126 58 71 88 119 Charge-offs (49) (48) (54) (91) (76) Loans sold, net (3) --- (5) (66) (35) Payments (5) (13) (9) (11) (32) Transfers to OREO --- (4) (12) --- --- Loans returned to accrual status (1) --- --- (1) (15) Balance at end of period $360 $292 $299 $308 $389 Line of Business Results (dollars in millions) Consumer Banking 3Q05 2Q05 1Q05 4Q04 3Q04 Summary of operations Total revenue (TE) $716 $706 $727 $690 $722 Provision for loan losses 29 22 48 9 52 Noninterest expense 490 490 476 554 470 Net income 123 122 127 59 125 Average loans 29,139 29,303 29,397 31,886 31,754 Average deposits 42,359 41,567 41,063 40,925 40,034 Net loan charge-offs 37 32 39 118 53 Return on average allocated equity 20.30% 20.23% 20.62% 9.13% 20.29% Average full-time equivalent employees 9,963 10,026 10,194 10,392 10,508 Supplementary information (lines of business) Community Banking Total revenue (TE) $567 $555 $544 $572 $541 Provision for loan losses 22 18 20 21 27 Noninterest expense 407 388 386 404 384 Net income 86 94 86 92 81 Average loans 19,781 19,773 19,919 20,094 19,665 Average deposits 41,670 40,920 40,475 40,365 39,485 Net loan charge-offs 24 21 25 23 28 Return on average allocated equity 22.26% 24.69% 22.80% 23.87% 22.66% Average full-time equivalent employees 8,546 8,448 8,548 8,728 8,895 Consumer Finance Total revenue (TE) $149 $151 $183 $118 $181 Provision for loan losses 7 4 28 (12) 25 Noninterest expense 83 102 90 150 86 Net income 37 28 41 (33) 44 Average loans 9,358 9,530 9,478 11,792 12,089 Average deposits 689 647 588 560 549 Net loan charge-offs 13 11 14 95 25 Return on average allocated equity 16.85% 12.59% 17.18% (12.66)% 17.01% Average full-time equivalent employees 1,417 1,578 1,646 1,664 1,613 Line of Business Results (dollars in millions) Consumer Banking Percent change 3Q05 vs. 2Q05 3Q04 Summary of operations Total revenue (TE) 1.4 % (.8)% Provision for loan losses 31.8 (44.2) Noninterest expense --- 4.3 Net income .8 (1.6) Average loans (.6) (8.2) Average deposits 1.9 5.8 Net loan charge-offs 15.6 (30.2) Return on average allocated equity N/A N/A Average full-time equivalent employees (.6) (5.2) Supplementary information (lines of business) Community Banking Total revenue (TE) 2.2 % 4.8 % Provision for loan losses 22.2 (18.5) Noninterest expense 4.9 6.0 Net income (8.5) 6.2 Average loans --- .6 Average deposits 1.8 5.5 Net loan charge-offs 14.3 (14.3) Return on average allocated equity N/A N/A Average full-time equivalent employees 1.2 (3.9) Consumer Finance Total revenue (TE) (1.3)% (17.7)% Provision for loan losses 75.0 (72.0) Noninterest expense (18.6) (3.5) Net income 32.1 (15.9) Average loans (1.8) (22.6) Average deposits 6.5 25.5 Net loan charge-offs 18.2 (48.0) Return on average allocated equity N/A N/A Average full-time equivalent employees (10.2) (12.2) Line of Business Results (continued) (dollars in millions) Corporate and Investment Banking 3Q05 2Q05 1Q05 4Q04 3Q04 Summary of operations Total revenue (TE) $542 $523 $489 $516 $456 Provision for loan losses 14 (2) (4) (30) (1) Noninterest expense 293 274 255 266 259 Net income 147 157 149 175 124 Average loans 35,064 34,577 33,846 30,852 28,827 Average deposits 10,136 9,691 8,781 8,793 7,800 Net loan charge-offs 12 16 15 22 23 Return on average allocated equity 17.01% 18.56% 17.76% 22.26% 16.07% Average full-time equivalent employees 3,336 3,269 3,316 3,028 2,875 Supplementary information (lines of business) Corporate Banking Total revenue (TE) $270 $259 $259 $274 $255 Provision for loan losses 9 (6) (5) (32) (7) Noninterest expense 157 144 136 159 149 Net income 65 75 80 92 71 Average loans 14,666 15,089 15,101 13,877 13,705 Average deposits 8,022 7,952 7,256 7,266 6,421 Net loan charge-offs 1 11 10 12 13 Return on average allocated equity 15.42% 17.80% 19.04% 21.37% 16.36% Average full-time equivalent employees 1,558 1,532 1,541 1,558 1,555 KeyBank Real Estate Capital Total revenue (TE) $149 $138 $104 $132 $103 Provision for loan losses 2 (7) 5 (4) --- Noninterest expense 64 55 46 49 45 Net income 52 57 33 54 36 Average loans 11,265 10,596 9,794 9,109 7,874 Average deposits 2,100 1,728 1,514 1,520 1,366 Net loan charge-offs (recoveries) --- 3 4 2 3 Return on average allocated equity 20.71% 24.19% 14.16% 24.00% 17.23% Average full-time equivalent employees 812 774 758 702 678 Key Equipment Finance Total revenue (TE) $123 $126 $126 $110 $98 Provision for loan losses 3 11 (4) 6 6 Noninterest expense 72 75 73 58 65 Net income 30 25 36 29 17 Average loans 9,133 8,892 8,951 7,866 7,248 Average deposits 14 11 11 7 13 Net loan charge-offs 11 2 1 8 7 Return on average allocated equity 15.66% 13.23% 19.36% 22.19% 13.21% Average full-time equivalent employees 966 963 1,017 768 642 TE = Taxable Equivalent N/A = Not Applicable N/M = Not Meaningful Line of Business Results (continued) (dollars in millions) Corporate and Investment Banking Percent change 3Q05 vs. 2Q05 3Q04 Summary of operations Total revenue (TE) 3.6% 18.9% Provision for loan losses N/M N/M Noninterest expense 6.9 13.1 Net income (6.4) 18.5 Average loans 1.4 21.6 Average deposits 4.6 29.9 Net loan charge-offs (25.0) (47.8) Return on average allocated equity N/A N/A Average full-time equivalent employees 2.0 16.0 Supplementary information (lines of business) Corporate Banking Total revenue (TE) 4.2% 5.9% Provision for loan losses N/M N/M Noninterest expense 9.0 5.4 Net income (13.3) (8.5) Average loans (2.8) 7.0 Average deposits .9 24.9 Net loan charge-offs (90.9) (92.3) Return on average allocated equity N/A N/A Average full-time equivalent employees 1.7 .2 KeyBank Real Estate Capital Total revenue (TE) 8.0% 44.7% Provision for loan losses N/M N/M Noninterest expense 16.4 42.2 Net income (8.8) 44.4 Average loans 6.3 43.1 Average deposits 21.5 53.7 Net loan charge-offs (100.0) (100.0) Return on average allocated equity N/A N/A Average full-time equivalent employees 4.9 19.8 Key Equipment Finance Total revenue (TE) (2.4)% 25.5% Provision for loan losses (72.7) (50.0) Noninterest expense (4.0) 10.8 Net income 20.0 76.5 Average loans 2.7 26.0 Average deposits 27.3 7.7 Net loan charge-offs 450.0 57.1 Return on average allocated equity N/A N/A Average full-time equivalent employees .3 50.5 TE = Taxable Equivalent N/A = Not Applicable N/M = Not Meaningful