KeyCorp (KEY) third quarter net income was $163 million, compared to a net loss of $422 for the 2009 third quarter. Tier 1 risk-based capital ratio was 14.26% up from 13.62% one quarter ago.
Chief Executive Officer Henry L. Meyer III noted that Key opened 34 new branches during the first nine months of 2010 and expects to open an additional five new branches during the fourth quarter of 2010, increasing its market presence in selected markets of its 14-state branch network.
While the move appears to be more consumer oriented, the loan composition from the third quarter *-K indicates otherwise, except for a rise in real estate residential loans. All the commercial loan compositions and community equity loans are down (in millions):
|Commercial, Fin. & Ag.|
There did not appear to be an indication of the leasing numbers by divisions, but overall the "Nonperforming Assets from Continuing Operations" also show a decline:
|dollars in millions||3Q10||2Q10||1Q10||4Q09||3Q09|
|Commercial lease financing||84||83||99||112||132|
It appears the bank is more in a strengthening holding position than one of growth. This does not mean that they appear to not to be looking for a profit, but are more interested in improving their assets and decreasing their losses. At the same time, they are continuing to "build" branches rather than delete them.
Disclosure: No position