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<div style="font-family: 'Times New Roman',Times,serif">
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</div>
<div align="center" style="font-size: 10pt; margin-top: 0pt"><b></b>
</div>
<div align="center" style="font-size: 10pt; margin-top: 18pt"><b>1. Basis of Presentation</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The unaudited condensed consolidated interim financial statements include the accounts of
KeyCorp and its subsidiaries. All significant intercompany accounts and transactions have been
eliminated in consolidation.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">As used in these Notes, references to “Key,” “we,” “our,” “us” and similar terms refer to the
consolidated entity consisting of KeyCorp and its subsidiaries. KeyCorp refers solely to the
parent holding company, and KeyBank refers to KeyCorp’s subsidiary, KeyBank National Association.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">We have provided the following list of acronyms and abbreviations as a useful tool for the reader.
The acronyms and abbreviations identified below are used in the Notes to Consolidated Financial
Statements (Unaudited) as well as Management’s Discussion & Analysis of Financial Condition &
Results of Operation.
</div>
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<div style="margin-left:0px; text-indent:-0px"><b>AICPA: </b>American Institute of Certified Public Accountants.<br />
<b>ALCO: </b>Asset/Liability Management Committee.<br />
<b>A/LM: </b>Asset/liability management.<br />
<b>AOCI: </b>Accumulated other comprehensive income (loss).<br />
<b>Austin: </b>Austin Capital Management, Ltd.<br />
<b>CAP: </b>Capital Assistance Program.<br />
<b>CMO: </b>Collateralized mortgage obligation.<br />
<b>Codification: </b>FASB Accounting Standards Codification.<br />
<b>CPP: </b>Capital Purchase Program.<br />
<b>CPR: </b>Constant prepayment rate.<br />
<b>DGP: </b>Debt Guarantee Program.<br />
<b>DIF: </b>Deposit Insurance Fund.<br />
<b>EESA: </b>Emergency Economic Stabilization Act of 2008.<br />
<b>EPS: </b>Earnings per share.<br />
<b>ERISA: </b>Employee Retirement Income Security Act.<br />
<b>EVE: </b>Economic value of equity.<br />
<b>FASB: </b>Financial Accounting Standards Board.<br />
<b>FDIC: </b>Federal Deposit Insurance Corporation.<br />
<b>Federal Reserve: </b>Board of Governors of the Federal Reserve.<br />
<b>FHLMC: </b>Federal Home Loan Mortgage Corporation.<br />
<b>FNMA: </b>Federal National Mortgage Association.<br />
<b>FSP: </b>Financial Stability Plan.<br />
<b>GAAP: </b>U.S. generally accepted accounting principles.<br />
<b>GNMA: </b>Government National Mortgage Association.<br />
<b>Heartland: </b>Heartland Payment Systems, Inc.<br />
<b>IRS: </b>Internal Revenue Service.<br />
<b>ISDA: </b>International Swaps and Derivatives Association.<br />
<b>KAHC: </b>Key Affordable Housing Corporation.<br />
<b>KNSF Amalco: </b>Key Nova Scotia Funding Ltd.<br />
<b>LIBOR: </b>London Interbank Offered Rate.<br />
<b>LIHTC: </b>Low-income housing tax credit.<br />
<b>LILO: </b>Lease in, lease out.<br />
 
</div></td>
<td style="border-right: 1px solid #000000"> </td>
<td> </td>
<td align="left" valign="top"><b>Moody’s: </b>Moody’s Investors Service, Inc.<br />
<b>N/A: </b>Not applicable.<br />
<b>NASDAQ: </b>National Association of Securities Dealers Automated Quotation.<br />
<b>N/M: </b>Not meaningful.<br />
<b>NOW: </b>Negotiable Order of Withdrawal.<br />
<b>NYSE: </b>New York Stock Exchange.<br />
<b>OCC: </b>Office of the Comptroller of the Currency.<br />
<b>OCI: </b>Other comprehensive income (loss).<br />
<b>OREO: </b>Other real estate owned.<br />
<b>OTTI: </b>Other-than-temporary impairment.<br />
<b>PPIP: </b>Public-Private Investment Program.<br />
<b>S&P: </b>Standard and Poor’s Ratings Services, a Division of The McGraw-Hill Companies, Inc.<br />
<b>SCAP: </b>Supervisory Capital Assessment Program.<br />
<b>SEC: </b>Securities and Exchange Commission.<br />
<b>Series A Preferred Stock: </b>KeyCorp’s 7.750% Noncumulative Perpetual Convertible Preferred Stock, Series A.<br />
<b>Series B Preferred Stock: </b>KeyCorp’s Fixed-Rate Cumulative Perpetual Preferred Stock, Series B.<br />
<b>SFAS: </b>Statement of Financial Accounting Standards.<br />
<b>SILO: </b>Sale in, lease out.<br />
<b>SPE: </b>Special purpose entity.<br />
<b>TALF: </b>Term Asset-Backed Securities Loan Facility.<br />
<b>TARP: </b>Troubled Asset Relief Program.<br />
<b>TE: </b>Taxable equivalent.<br />
<b>TLGP: </b>Temporary Liquidity Guarantee Program.<br />
<b>U.S. Treasury: </b>United States Department of the Treasury.<br />
<b>VAR: </b>Value at risk.<br />
<b>VIE: </b>Variable interest entity.<br />
<b>XBRL: </b>eXtensible Business Reporting Language.</td>
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<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">The consolidated financial statements include any voting rights entity in which we have a
controlling financial interest. In accordance with the applicable consolidation accounting
guidance, we consolidate a VIE if we have a variable interest in the entity and are exposed to the
majority of its expected losses and/or residual returns (i.e., we are considered to be the primary
beneficiary). Variable interests can include equity interests, subordinated debt, derivative
contracts, leases, service agreements, guarantees, standby letters of credit, loan commitments, and
other contracts, agreements and financial instruments. See Note 8 (“Variable Interest Entities”),
which begins on page 29, for information on our involvement with VIEs.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">We use the equity method to account for unconsolidated investments in voting rights entities or
VIEs in which we have significant influence over operating and financing decisions (usually defined
as a voting or economic interest of 20% to 50%, but not controlling). Unconsolidated investments
in voting rights entities or VIEs in which we have a voting or economic interest of less than 20%
generally are carried at cost. Investments held by our registered broker-dealer and investment
company subsidiaries (primarily principal investments) are carried at fair value.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Qualifying SPEs, including securitization trusts, established under the applicable accounting
guidance for transfers of financial assets are not consolidated. In June 2009, the FASB issued
SFAS No. 166, “Accounting for Transfers of Financial Assets, an amendment of FASB Statement No.
140.” This guidance will change the way entities account for securitizations and SPEs by
eliminating the concept of a qualifying SPE, changing the requirements for derecognition of
financial assets and requiring additional disclosures. Note 7 (“Loan Securitizations and Mortgage
Servicing Assets”), which begins on page 26, provides information related to transfers of financial
assets and servicing. For additional information regarding SFAS No. 166, which is effective
January 1, 2010, see the section entitled “Accounting Standards Pending Adoption at September 30,
2009” on page 12.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">We believe that the unaudited condensed consolidated interim financial statements reflect all
adjustments of a normal recurring nature and disclosures that are necessary for a fair presentation
of the results for the interim periods presented. Some previously reported amounts have been
reclassified to conform to current reporting practices.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The results of operations for the interim period are not necessarily indicative of the results of
operations to be expected for the full year. The interim financial statements should be read in
conjunction with the audited consolidated financial statements and related notes included in
KeyCorp’s 2008 Annual Report to Shareholders.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">In preparing these financial statements, subsequent events were evaluated through the time the
financial statements were issued on November 6, 2009. Financial statements are considered issued
when they are widely distributed to all shareholders and other financial statement users, or filed
with the SEC. In conjunction with applicable accounting standards, all material subsequent events
have been either recognized in the financial statements or disclosed in the notes to the financial
statements.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Goodwill and Other Intangible Assets</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">In accordance with the relevant goodwill and other intangibles accounting guidance, goodwill and
certain other intangible assets are subject to impairment testing, which must be conducted at least
annually. We perform the goodwill impairment testing in the fourth quarter of each year. Our
reporting units for purposes of this testing are our major business segments, Community Banking and
National Banking. Due to the ongoing uncertainty regarding market conditions, which may continue
to negatively impact the performance of our reporting units, we continue to monitor the impairment
indicators for goodwill and other intangible assets and to evaluate the carrying amount of these
assets, as necessary.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">During the first quarter of 2009, a review of impairment indicators prompted our review and
evaluation of the carrying amount of the goodwill and other intangible assets assigned to our
Community Banking and National Banking units. This review indicated that the estimated fair value
of the Community Banking unit was greater than its carrying amount, while the estimated fair value
of the National Banking unit was less than its carrying amount, reflecting continued weakness in
the financial markets and requiring additional impairment testing. Based on the results of
additional impairment testing for the National Banking unit, we
recorded an after-tax noncash accounting charge of $187 million, or $.38 per common share, during
the first quarter of 2009. Our regulatory and tangible capital ratios were not affected by this
adjustment. As a result of this charge, we have now written off all of the goodwill that had been
assigned to the National Banking unit.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">In April 2009, we made the decision to wind down the operations of Austin, an investment subsidiary
that specializes in managing hedge fund investments for its institutional customer base. As a
result of this decision, we have accounted for this business as a discontinued operation. Of the
$187 million impairment charge recorded during the first quarter of 2009, $23 million, or $.05 per
common share, is related to the discontinued operation, and thus has been reclassified to “income
(loss) from discontinued operations, net of taxes” on the income statement. See Note 3
(“Acquisition and Divestitures”), which begins on page 14, for additional information regarding the
Austin discontinued operations.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Based on reviews of impairment indicators during both the second and third quarters of 2009, we
determined that further reviews of goodwill and other intangible assets for our Community Banking
unit were necessary. These further reviews indicated that the estimated fair value of the
Community Banking unit continued to be greater than its carrying amount at both September 30, 2009,
and June 30, 2009. At September 30, 2009, goodwill associated with the Community Banking unit was
$917 million. Our review indicated that the estimated fair value of the Community Banking unit was
21% greater than its carrying amount at September 30, 2009. Accordingly, no further impairment
testing was required. The fair value of the Community Banking reporting unit is estimated using
comparable external market data (market approach) and discounted cash flow modeling that
incorporates an appropriate risk premium and earnings forecast information (income approach). A
sensitivity analysis of the estimated fair value of the Community Banking unit was performed, which
indicated that the fair value continued to exceed the carrying amount under deteriorating
assumptions. If actual results, and market and economic conditions, differ from the assumptions
and data used, the estimated fair value of the Community Banking unit could change in the future.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">A review of other intangible assets in the National Banking unit
identified a $45 million intangible asset related to vendor relationships in the equipment leasing
business that was impaired as a result of our actions taken to cease conducting business in both
the commercial vehicle and office equipment leasing markets. Accordingly, we recorded a $45 million charge to write-off this intangible asset. Our review of the
remaining intangible assets in the National Banking unit did not identify any impairment of those
assets during the third quarter of 2009.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">At September 30, 2009, intangible assets, other than goodwill, totaled $55 million (including $1
million classified as discontinued assets on the balance sheet). These assets are being amortized
on either an accelerated or straight-line basis over periods ranging from three to thirty years.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Other-than-Temporary Impairments</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">During the second quarter of 2009, we adopted new accounting guidance related to the recognition
and presentation of OTTI of debt securities. This new guidance also requires additional
disclosures for both debt and equity securities that we hold. In accordance with the guidance, if
the amortized cost of a debt security is greater than its fair value and we intend to sell it, or
more-likely-than-not will be required to sell it, before the expected recovery of the amortized
cost, then the entire impairment is recognized in earnings. If we have no intent to sell the
security, or it is more-likely-than-not that we will not be required to sell it, before expected
recovery, then the credit portion of the impairment is recognized in earnings, while the remaining
portion attributable to factors such as liquidity and interest rate changes is recognized in equity
as a component of AOCI on the balance sheet. The credit portion is equal to the difference between
the cash flows expected to be collected and the amortized cost basis of the debt security.
Additional information regarding this guidance is provided in this note under the heading
“Accounting Standards Adopted in 2009” and in Note 5 (“Securities”), which begins on page 21.
</div>
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</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Noncontrolling Interests</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Our Principal Investing unit and the Real Estate Capital and Corporate Banking Services line of
business have noncontrolling (minority) interests that are accounted for in accordance with the
applicable consolidation accounting guidance. We report noncontrolling interests in subsidiaries
as a component of equity on the consolidated balance sheets. “Net loss” on the consolidated
statements of income includes our revenues, expenses, gains and losses and those pertaining to the
noncontrolling interests. The portion of net results attributable to the noncontrolling interests
is disclosed separately on the face of the income statements to arrive at the “net loss
attributable to Key.”
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Offsetting Derivative Positions</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">In accordance with relevant accounting guidance, we take into account the impact of master netting
agreements that allow us to settle all derivative contracts held with a single counterparty on a
net basis and to offset the net derivative position with the related cash collateral when
recognizing derivative assets and liabilities. Additional information regarding derivative
offsetting is provided in Note 15 (“Derivatives and Hedging Activities”), which begins on page 40.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Accounting Standards Adopted in 2009</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><b><i>Business combinations. </i></b>In December 2007, the FASB issued a new accounting standard regarding
business combinations, which requires the acquiring entity in a business combination to recognize
only the assets acquired and liabilities assumed in a transaction (e.g., acquisition costs must be
expensed when incurred), establishes the fair value at the date of acquisition as the initial
measurement for all assets acquired and liabilities assumed, and requires expanded disclosures.
This guidance was effective for fiscal years beginning after December 15, 2008 (effective January
1, 2009, for us). Early adoption was prohibited.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><b><i>Noncontrolling interests</i></b>. In December 2007, the FASB issued a new accounting standard regarding
noncontrolling interests, which requires all entities to report noncontrolling interests in
subsidiaries as a component of equity and set forth other presentation and disclosure requirements.
This guidance was effective for fiscal years beginning after December 15, 2008 (effective January
1, 2009, for us). Early adoption was prohibited. Additional information regarding this guidance
is provided in this note under the heading “Noncontrolling Interests.” Adoption of this guidance
did not have a material effect on our financial condition or results of operations.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><b><i>Accounting for transfers of financial assets and repurchase financing transactions</i></b>. In February
2008, the FASB issued a new accounting standard regarding accounting for transfers of financial
assets and repurchase financing transactions, which presumes that an initial transfer of a
financial asset and a repurchase financing are considered part of the same arrangement (linked
transaction). However, if certain criteria are met, the initial transfer and repurchase financing
shall be evaluated separately. This guidance was effective for fiscal years beginning after
November 15, 2008 (effective January 1, 2009, for us). Early adoption was prohibited. Adoption of
this guidance did not have a material effect on our financial condition or results of operations.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><b><i>Disclosures about derivative instruments and hedging activities</i></b><b>. </b>In March 2008, the FASB issued a
new accounting standard regarding derivative instruments and hedging activities, which amended and
expanded the existing disclosure requirements. This new guidance requires qualitative disclosures
about objectives and strategies for using derivatives, quantitative disclosures about fair value
amounts, and gains and losses on derivative instruments, and disclosures about credit risk
contingent features in derivative agreements. These expanded disclosure requirements were
effective for fiscal years beginning after November 15, 2008 (effective January 1, 2009, for us).
The required disclosures are provided in Note 15.
</div>
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</div>
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<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt"><b><i>Determination of the useful life of intangible assets. </i></b>In April 2008, the FASB issued a new
accounting standard regarding the determination of the useful life of intangible assets, which
amends the factors that should be considered in developing renewal or extension assumptions used to
determine the useful life of a recognized intangible asset under the applicable goodwill and other
intangibles accounting guidance. This new guidance was effective for fiscal years beginning after
December 15, 2008 (effective January 1, 2009, for us). Early adoption was prohibited.
Adoption of this guidance did not have a material effect on our financial condition or results of
operations.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><b><i>Accounting for convertible debt instruments. </i></b>In May 2008, the FASB issued a new accounting
standard regarding the accounting for convertible debt instruments that may be settled in cash upon
conversion (including partial cash settlement). This guidance requires the issuer of certain
convertible debt instruments that may be settled in cash (or other assets) on conversion to
separately account for the liability (debt) and equity (conversion option) components of the
instrument in a manner that reflects the issuer’s nonconvertible debt borrowing rate. This
guidance was effective for fiscal years beginning after December 15, 2008 (effective January 1,
2009, for us). Early adoption was prohibited. We have not issued and do not have any convertible
debt instruments outstanding that are subject to this guidance. Therefore, adoption of this
guidance did not have an effect on our financial condition or results of operations.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><b><i>Recognition and presentation of other-than-temporary impairments</i></b>. In April 2009, the FASB issued a
new accounting standard regarding the recognition and presentation of OTTI of debt securities,
which requires additional disclosures for both debt and equity securities. This guidance was
effective for interim and annual periods ending after June 15, 2009 (effective June 30, 2009, for
us) with early adoption permitted. Additional information regarding this guidance is provided in
this note under the heading “Other-than-Temporary Impairments” on page 9 and in Note 5.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><b><i>Interim disclosures about fair value of financial instruments. </i></b>In April 2009, the FASB issued a
new accounting standard regarding interim disclosures about fair value of financial instruments.
This guidance amended existing accounting guidance to require disclosures about the fair value of
financial instruments in interim financial statements of publicly traded companies. This new
guidance was effective for interim and annual periods ending after June 15, 2009 (effective June
30, 2009, for us) with early adoption permitted. The required disclosures are provided in Note 16
(“Fair Value Measurements”), which begins on page 47.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b><i>Determining fair value when volume and level of activity have significantly decreased and
identifying transactions that are not orderly. </i></b>In April 2009, the FASB issued a new accounting
standard regarding the determination of fair value when the volume and level of activity for an
asset or liability have significantly decreased and the identification of transactions that are not
orderly. This standard provides additional guidance for: (i) estimating fair value in accordance
with the accounting guidance on fair value measurements when the volume and level of activity for
an asset or liability have significantly decreased, and (ii) identifying circumstances that
indicate that a transaction is not orderly. This guidance emphasizes that fair value is the price
that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date under current market conditions (i.e., not a
forced liquidation or distressed sale). This standard was effective for interim and annual periods
ending after June 15, 2009 (effective June 30, 2009, for us) with early adoption permitted.
Adoption of this accounting guidance did not have a material effect on our financial condition or
results of operations.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><b><i>Subsequent events. </i></b>In May 2009, the FASB issued a new accounting standard regarding subsequent
events, which provides authoritative accounting literature for a topic that was previously
addressed only in the auditing literature. This accounting guidance is similar to the guidance in
the auditing literature with some exceptions that do not result in significant changes in practice.
This new guidance was effective on a prospective basis for interim or annual financial periods
ending after June 15, 2009 (effective June 30, 2009, for us). In preparing these financial
statements, we evaluated subsequent events through the time the financial statements were issued on
November 6, 2009.
</div>
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</div>
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<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt"><b><i>FASB accounting standards codification. </i></b>In June 2009, the FASB issued accounting guidance that
establishes the Codification as the single source of authoritative nongovernmental GAAP. As of the
effective date, all existing accounting standard documents were superseded, and all other
accounting literature not included in the Codification will be considered nonauthoritative, other
than SFAS Nos. 166 and 167, described below, that have not yet been included in the Codification.
The Codification was launched on July 1, 2009, and is effective for interim and annual periods
ending after September 15, 2009 (effective September 30, 2009, for us).
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><b><i>Fair value of alternative investments. </i></b>In September 2009, the FASB issued an update to the
Codification, which provides additional guidance related to measuring the fair value of certain
alternative investments, such as interests in private equity and venture capital funds. In
addition to requiring additional disclosures, this guidance allows companies to use net asset value
per share to estimate the fair value of these alternative investments as a practical expedient if
certain conditions are met. This guidance is effective for interim and annual periods ending after
December 15, 2009 (effective December 31, 2009, for us). As permitted by this guidance, we elected
to early adopt the accounting requirements specified in the guidance as of September 30, 2009, and
will adopt the disclosure requirements as of December 31, 2009. Adoption of this guidance did not
have a material effect on our financial condition or results of operations.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Accounting Standards Pending Adoption at September 30, 2009</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><b><i>Employers’ disclosures about postretirement benefit plan assets. </i></b>In December 2008, the FASB issued
new accounting guidance regarding employers’ disclosures about postretirement benefit plan assets,
which amends existing accounting guidance and will require additional disclosures about assets held
in an employer’s defined benefit pension or other postretirement plan, including fair values of
each major asset category and the levels within the fair value hierarchy as set forth in the fair
value measurement accounting guidance. This new guidance will be effective for fiscal years ending
after December 15, 2009 (effective December 31, 2009, for us).
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><b><i>Transfers of financial assets. </i></b>In June 2009, the FASB issued SFAS No. 166, which will change the
way entities account for securitizations and SPEs by eliminating the concept of a qualifying SPE,
changing the requirements for derecognition of financial assets and requiring additional
disclosures. This guidance will be effective at the start of an entity’s first fiscal year
beginning after November 15, 2009 (effective January 1, 2010, for us). We are currently evaluating
the impact this guidance may have on our financial condition or results of operations.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><b><i>Consolidation of variable interest entities. </i></b>In June 2009, the FASB issued SFAS No. 167,
“Amendments to FASB Interpretation No. 46(R).” In addition to requiring additional disclosures,
this guidance will change how a company determines when an entity that is insufficiently
capitalized or is not controlled through voting (or similar rights) should be consolidated. The
determination of whether a company is required to consolidate an entity will be based on, among
other things, an entity’s purpose and design, and its ability to direct the activities that most
significantly impact the entity’s economic performance. This guidance will be effective at the
start of a company’s first fiscal year beginning after November 15, 2009 (effective January 1,
2010, for us). We are currently evaluating the impact this guidance may have on our financial
condition or results of operations.
</div>
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</div>
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<!-- Begin Block Tagged Note 2 - us-gaap:EarningsPerShareTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 18pt"><b>2. Earnings Per Common Share</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Our basic and diluted earnings per common share are calculated as follows:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Three months ended</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Nine months ended</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>September 30,</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>September 30,</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><i>dollars in millions, except per share amounts</i></td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>2008</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>2008</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>EARNINGS</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Income (loss) from continuing operations
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"><b>$</b></td>
<td align="right"><b>(386</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td align="left">$</td>
<td align="right">14</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"><b>$</b></td>
<td align="right"><b>(1,082</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(790</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Less: Net income (loss) attributable to noncontrolling interests
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(5</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td> </td>
<td align="right">11</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(12</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td> </td>
<td align="right">11</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Income (loss) from continuing operations attributable to Key
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(381</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td> </td>
<td align="right">3</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(1,070</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(801</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Less: Dividends on Series A Preferred Stock
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>7</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">12</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>34</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">12</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px"> Noncash deemed dividend — common shares exchanged for Series A Preferred Stock
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>114</b></td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px"> Cash dividends on Series B Preferred Stock
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>31</b></td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>94</b></td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px"> Amortization of discount on Series B Preferred Stock
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>3</b></td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>11</b></td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right">—</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Loss from continuing operations attributable to Key common shareholders
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(422</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(9</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(1,323</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(813</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Loss from discontinued operations, net of taxes <sup style="font-size: 85%; vertical-align: text-top">(a) </sup>
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(16</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(39</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(41</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(143</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Net loss attributable to Key common shareholders
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"><b>$</b></td>
<td align="right"><b>(438</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(48</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"><b>$</b></td>
<td align="right"><b>(1,364</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(956</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>WEIGHTED-AVERAGE COMMON SHARES</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Weighted-average common shares outstanding (000)
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>839,906</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">491,179</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>637,805</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">435,846</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Effect of dilutive convertible preferred stock, common stock options and other stock awards (000)
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Weighted-average common shares and potential common shares outstanding (000)
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>839,906</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">491,179</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>637,805</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">435,846</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>EARNINGS PER COMMON SHARE</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Loss from continuing operations attributable to Key common shareholders
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"><b>$</b></td>
<td align="right"><b>(.50</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(.02</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"><b>$</b></td>
<td align="right"><b>(2.07</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(1.87</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Loss from discontinued operations, net of taxes <sup style="font-size: 85%; vertical-align: text-top">(a) </sup>
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(.02</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(.08</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(.06</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(.33</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Net loss attributable to Key common shareholders
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(.52</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(.10</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(2.14</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(2.19</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Loss from continuing operations attributable to Key common shareholders — assuming dilution
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"><b>$</b></td>
<td align="right"><b>(.50</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(.02</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"><b>$</b></td>
<td align="right"><b>(2.07</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(1.87</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Loss from discontinued operations, net of taxes <sup style="font-size: 85%; vertical-align: text-top">(a) </sup>
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(.02</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(.08</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(.06</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(.33</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Net loss attributable to Key common shareholders — assuming dilution
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(.52</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(.10</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(2.14</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(2.19</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div style="margin-top: 6pt">
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<td width="3%" nowrap="nowrap" align="left">(a)</td>
<td width="1%"> </td>
<td>In September 2009, we made the decision to discontinue the education lending business
conducted through Key Education Resources, the education payment and financing unit of
KeyBank. In April 2009, we made the decision to wind down the operations of Austin, an
investment subsidiary that specializes in managing hedge fund investments for its
institutional customer base. As a result of these decisions, we have accounted for these
businesses as discontinued operations. Included in the loss from discontinued operations for
the nine-month period ended September 30, 2009, is a $23 million after tax, or $.05 per common
share, charge for intangible assets impairment related to Austin recorded during the first
quarter.</td>
</tr>
</table>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div style="margin-top: 6pt">
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 3 - key:AcquisitionAndDivestitureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 18pt"><b>3. Acquisition and Divestitures</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Acquisition and divestitures activity entered into during 2008 and the first nine months of
2009 is summarized below.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Acquisition</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><b><i>U.S.B. Holding Co., Inc. </i></b>On January 1, 2008, we acquired U.S.B. Holding Co., Inc., the holding
company for Union State Bank, a 31-branch state-chartered commercial bank headquartered in
Orangeburg, New York. U.S.B. Holding Co. had assets of $2.8 billion and deposits of $1.8 billion
at the date of acquisition. Under the terms of the agreement, we exchanged 9,895,000 common
shares, with a value of $348 million, and $194 million in cash for all of the outstanding shares of
U.S.B. Holding Co. In connection with the acquisition, we recorded goodwill of approximately $350
million in the Community Banking reporting unit. The acquisition expanded our presence in markets
both within and contiguous to our current operations in the Hudson Valley.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Divestitures</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><b><i>Education lending. </i></b>In September 2009, we made the decision to exit the government-guaranteed
education lending business and to focus on the growing demand from schools for integrated,
simplified billing, payment and cash management solutions. This decision exemplifies our
disciplined focus on our core relationship businesses. As a result of this decision, we have
accounted for this business as a discontinued operation. Exit costs associated with this
discontinued operation are expected to continue through June 30, 2010.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The results of this discontinued business are included in “loss from discontinued operations, net
of taxes” on the income statement. The components of “loss from discontinued operations, net of
taxes” for this business are as follows:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Three months ended</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Nine months ended</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>September 30,</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>September 30,</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><i>in millions</i></td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>2008</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>2008</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Net interest income
</div></td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>26</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">21</td>
<td> </td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>74</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">71</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Provision for loan losses
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>42</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">71</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>97</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">255</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Net interest expense after provision for loan losses
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(16</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(50</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(23</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(184</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Noninterest income
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>2</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>18</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(3</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Noninterest expense
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>15</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">16</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>45</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">50</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Loss before income taxes
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(29</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(66</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(50</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(237</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Income taxes
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(11</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(25</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(19</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(89</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Loss from discontinued operations, net of taxes <sup style="font-size: 85%; vertical-align: text-top">(a)</sup>
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"><b>$</b></td>
<td align="right"><b>(18</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(41</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"><b>$</b></td>
<td align="right"><b>(31</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(148</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div style="margin-top: 6pt">
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<td width="3%" nowrap="nowrap" align="left">(a)</td>
<td width="1%"> </td>
<td>Includes after-tax charges of $12 million and $28 million for the three-month periods ended
September 30, 2009 and 2008, respectively, and $47 million and $85 million for the nine-month
periods ended September 30, 2009 and 2008, respectively, determined by applying a matched
funds transfer pricing methodology to the liabilities assumed necessary to support the
education lending operations.</td>
</tr>
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The discontinued assets and liabilities of our education lending business included on the
balance sheet are as follows:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="64%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>September 30,</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>December 31,</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>September 30,</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><i>in millions</i></td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>2008</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>2008</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="13" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Securities available for sale
</div></td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>176</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">191</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">195</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Loans, net of unearned income of $1, $2 and $2
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>3,571</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3,669</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3,711</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Less: Allowance for loan losses
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>164</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">174</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">164</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="13" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Net loans
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>3,407</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3,495</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3,547</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Loans held for sale
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>341</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">401</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">223</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Accrued income and other assets
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>224</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">270</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">299</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="13" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Total assets
</div></td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>4,148</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">4,357</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">4,264</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Noninterest-bearing deposits
</div></td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>108</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">133</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">111</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Derivative liabilities
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">6</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">8</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Accrued expense and other liabilities
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>7</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">24</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">25</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="13" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Total liabilities
</div></td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>115</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">163</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">144</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="13" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt"><b><i>Austin Capital Management, Ltd. </i></b>In April 2009, we made the decision to wind down the
operations of Austin, an investment subsidiary of KeyCorp that specializes in managing hedge fund
investments for its institutional customer base. As a result of this decision, we have accounted
for this business as a discontinued operation.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The results of this discontinued business are presented on one line as “loss from discontinued
operations, net of taxes” on the income statement. The components of “income (loss) from
discontinued operations, net of taxes” are as follows:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Three months ended</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Nine months ended</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>September 30,</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>September 30,</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><i>in millions</i></td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>2008</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>2008</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Noninterest income
</div></td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>5</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">8</td>
<td> </td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>19</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">22</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Intangible assets impairment
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>27</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Other noninterest expense
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>2</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>7</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">14</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Income (loss) before income taxes
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>3</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(15</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td> </td>
<td align="right">8</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Income taxes
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>1</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(5</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td> </td>
<td align="right">3</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Income (loss) from discontinued operations, net of taxes
</div></td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>2</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">2</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"><b>$</b></td>
<td align="right"><b>(10</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td align="left">$</td>
<td align="right">5</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The discontinued assets and liabilities of Austin included on the balance sheet are as
follows:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="64%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>September 30,</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>December 31,</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>September 30,</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><i>in millions</i></td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>2008</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>2008</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="13" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Cash and due from banks
</div></td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>19</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">12</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">10</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Goodwill
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">25</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">18</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Other intangible assets
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>1</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">12</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">12</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Accrued income and other assets
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>10</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">7</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">9</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="13" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Total assets
</div></td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>30</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">56</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">49</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Accrued expense and other liabilities
</div></td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>6</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">18</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">11</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="13" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Total liabilities
</div></td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>6</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">18</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">11</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="13" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 4 - us-gaap:SegmentReportingDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 18pt"><b>4. Line of Business Results</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Community Banking</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><b><i>Regional Banking </i></b>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. This line of business also provides small businesses with deposit,
investment and credit products, and business advisory services.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Regional Banking also offers financial, estate and retirement planning, and asset management
services to assist high-net-worth clients with their banking, trust, portfolio management,
insurance, charitable giving and related needs.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><b><i>Commercial Banking </i></b>provides midsize businesses with products and services that include commercial
lending, cash management, equipment leasing, investment and employee benefit programs, succession
planning, access to capital markets, derivatives and foreign exchange.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>National Banking</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><b><i>Real Estate Capital and Corporate Banking Services </i></b>consists of two business units, Real Estate
Capital and Corporate Banking Services.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Real Estate Capital is a national business that provides construction and interim lending,
permanent debt placements and servicing, equity and investment banking, and other commercial
banking products and services to developers, brokers and owner-investors. This unit deals
primarily with nonowner-occupied properties (i.e., generally properties in which at least 50% of
the debt service is provided by rental income from nonaffiliated third parties). Real Estate
Capital emphasizes providing clients with finance solutions through access to the capital markets.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Corporate Banking Services provides cash management, interest rate derivatives, and foreign
exchange products and services to clients served by both the Community Banking and National Banking
groups. Through its Public Sector and Financial Institutions businesses, Corporate Banking
Services also provides a full array of commercial banking products and services to government and
not-for-profit entities, and to community banks.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><b><i>Equipment Finance </i></b>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
Institutional and Capital Markets, and Commercial Banking) if those businesses are principally
responsible for maintaining the relationship with the client.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><b><i>Institutional and Capital Markets, </i></b>through its KeyBanc Capital Markets unit, provides commercial
lending, treasury management, investment banking, derivatives, foreign exchange, equity and debt
underwriting and trading, and syndicated finance products and services to large corporations and
middle-market companies.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Through its Victory Capital Management unit, Institutional and Capital Markets also manages or
offers 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.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><b><i>Consumer Finance </i></b>provides government-guaranteed education loans to students and their parents,
and processes tuition payments for private schools. Through its Commercial Floor Plan Lending
unit, this line of business also finances inventory for automobile dealers. In October 2008, we
exited retail and floor-plan lending for marine and recreational vehicle products, and began to
limit new education loans to those backed by government guarantee. In September 2009, we made the
decision to discontinue the education lending business and to focus on the growing demand from
schools for integrated, simplified billing, payment and cash management solutions. The Consumer
Finance line of business continues to service
existing loans in these portfolios and will continue
to originate education loans through December 4, 2009. These actions are consistent with our
strategy of de-emphasizing nonrelationship or out-of-footprint businesses.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Other Segments</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Other Segments consist of Corporate Treasury and our Principal Investing unit.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Reconciling Items</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Total assets included under “Reconciling Items” primarily represent the unallocated portion of
nonearning assets of corporate support functions. Charges related to the funding of these assets
are part of net interest income and are allocated to the business segments through noninterest
expense. Reconciling Items also includes intercompany eliminations and certain items that are not
allocated to the business segments because they do not reflect their normal operations.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The table that spans pages 18 and 19 shows selected financial data for each major business group
for the three- and nine-month periods ended September 30, 2009 and 2008. This table is accompanied
by supplementary information for each of the lines of business that make up these groups. The
information was derived from the internal financial reporting system that we use to monitor and
manage our financial performance. GAAP guides financial accounting, but there is no authoritative
guidance for “management accounting” — the way we use our judgment and experience to make
reporting decisions. Consequently, the line of business results we report may not be comparable
with line of business results presented by other companies.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The selected financial data are based on internal accounting policies designed to compile results
on a consistent basis and in a manner that reflects the underlying economics of the businesses. In
accordance with our policies:
</div>
<div style="margin-top: 12pt">
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<td width="3%" nowrap="nowrap" align="left"><font style="font-family: Symbol">¨</font></td>
<td width="1%"> </td>
<td>Net interest income is determined by assigning a standard
cost for funds used or a standard credit for funds provided
based on their assumed maturity, prepayment and/or repricing
characteristics. The net effect of this funds transfer
pricing is charged to the lines of business based on the
total loan and deposit balances of each line.</td>
</tr>
<tr>
<td style="font-size: 12pt"> </td>
</tr>
<tr valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<td width="3%" nowrap="nowrap" align="left"><font style="font-family: Symbol">¨</font></td>
<td width="1%"> </td>
<td>Indirect expenses, such as computer servicing costs and
corporate overhead, are allocated based on assumptions
regarding the extent to which each line actually uses the
services.</td>
</tr>
<tr>
<td style="font-size: 12pt"> </td>
</tr>
<tr valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<td width="3%" nowrap="nowrap" align="left"><font style="font-family: Symbol">¨</font></td>
<td width="1%"> </td>
<td>The consolidated provision for loan losses is allocated among
the lines of business primarily based on their actual net
charge-offs, adjusted periodically for loan growth and
changes in risk profile. The
amount of the consolidated provision is based on the methodology that we use to
estimate our consolidated allowance for loan losses. This methodology is
described in Note 1 (“Summary of Significant Accounting Policies”) under the
heading “Allowance for Loan Losses” on page 79 of KeyCorp’s 2008 Annual Report
to Shareholders.</td>
</tr>
<tr>
<td style="font-size: 12pt"> </td>
</tr>
<tr valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<td width="3%" nowrap="nowrap" align="left"><font style="font-family: Symbol">¨</font></td>
<td width="1%"> </td>
<td>Income taxes are allocated based on the statutory
federal income tax rate of 35% (adjusted for
tax-exempt interest income, income from
corporate-owned life insurance and tax credits
associated with investments in low-income housing
projects) and a blended state income tax rate (net of
the federal income tax benefit) of 2.5%.</td>
</tr>
<tr>
<td style="font-size: 12pt"> </td>
</tr>
<tr valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<td width="3%" nowrap="nowrap" align="left"><font style="font-family: Symbol">¨</font></td>
<td width="1%"> </td>
<td>Capital is assigned based on our assessment of
economic risk factors (primarily credit, operating
and market risk) directly attributable to each line.</td>
</tr>
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Developing and applying the methodologies that we use to allocate items among our lines of business
is a dynamic process. Accordingly, financial results may be revised periodically to reflect
accounting enhancements, changes in the risk profile of a particular business or changes in our
organizational structure.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><b>Three months ended September 30,</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>Community Banking</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>National Banking</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><i>dollars in millions</i></td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>2008</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>2008</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>SUMMARY OF OPERATIONS</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Net interest income (expense) (TE)
</div></td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>419</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">438</td>
<td> </td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>267</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">308</td>
<td nowrap="nowrap"> <sup style="font-size: 85%; vertical-align: text-top">(c)</sup></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Noninterest income
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>199</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">213</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>194</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">152</td>
<td nowrap="nowrap"> <sup style="font-size: 85%; vertical-align: text-top">(c)</sup></td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Total revenue (TE) <sup style="font-size: 85%; vertical-align: text-top">(a)</sup>
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>618</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">651</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>461</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">460</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Provision for loan losses
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>143</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">56</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>593</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">279</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Depreciation and amortization expense
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>36</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">38</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>59</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">70</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Other noninterest expense
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>450</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">400</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>375</b></td>
<td> <b><sup style="font-size: 85%; vertical-align: text-top">(c)</sup></b></td>
<td> </td>
<td> </td>
<td align="right">252</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Income (loss) from continuing operations before income taxes (TE)
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(11</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td> </td>
<td align="right">157</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(566</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(141</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Allocated income taxes and TE adjustments
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(4</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td> </td>
<td align="right">59</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(213</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(51</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Income (loss) from continuing operations
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(7</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td> </td>
<td align="right">98</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(353</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(90</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Loss from discontinued operations, net of taxes
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(16</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(39</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Net income (loss)
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(7</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td> </td>
<td align="right">98</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(369</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(129</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Less: Net income (loss) attributable to noncontrolling interests
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(1</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Net income (loss) attributable to Key
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"><b>$</b></td>
<td align="right"><b>(7</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td align="left">$</td>
<td align="right">98</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"><b>$</b></td>
<td align="right"><b>(368</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(129</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>AVERAGE BALANCES</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Loans and leases
</div></td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>27,410</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">28,874</td>
<td> </td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>37,229</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">43,419</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Total assets <sup style="font-size: 85%; vertical-align: text-top">(a)</sup>
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>30,304</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">31,896</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>42,479</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">52,037</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Deposits
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>52,954</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">50,378</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>13,435</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">12,304</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>OTHER FINANCIAL DATA</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Net loan charge-offs
</div></td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>94</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">70</td>
<td> </td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>493</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">163</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Return on average allocated equity <sup style="font-size: 85%; vertical-align: text-top">(b)</sup>
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(.83) </b></td>
<td nowrap="nowrap"><b>%</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">12.63</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(26.70 </b></td>
<td nowrap="nowrap"><b>)%</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(6.91</td>
<td nowrap="nowrap">)%</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Return on average allocated equity
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(.83</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td> </td>
<td align="right">12.63</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(27.27</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(9.91</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Average full-time equivalent employees
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>8,419</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">8,854</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>2,780</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3,524</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><b>Nine months ended September 30,</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>Community Banking</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>National Banking</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><i>dollars in millions</i></td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>2008</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>2008</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>SUMMARY OF OPERATIONS</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Net interest income (expense) (TE)
</div></td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>1,228</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,293</td>
<td> </td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>788</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">127</td>
<td nowrap="nowrap"> <sup style="font-size: 85%; vertical-align: text-top">(c)</sup></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Noninterest income
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>583</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">641</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>688</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">587</td>
<td nowrap="nowrap"> <sup style="font-size: 85%; vertical-align: text-top">(c)</sup></td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Total revenue (TE) <sup style="font-size: 85%; vertical-align: text-top">(a)</sup>
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>1,811</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,934</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>1,476</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">714</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Provision for loan losses
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>411</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">118</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>1,990</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">873</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Depreciation and amortization expense
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>110</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">112</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>185</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">212</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Other noninterest expense
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>1,328</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,193</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>1,089 </b></td>
<td nowrap="nowrap"> <b><sup style="font-size: 85%; vertical-align: text-top">(c)</sup></b></td>
<td> </td>
<td> </td>
<td align="right">717</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Income (loss) from continuing operations before income taxes (TE)
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(38</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td> </td>
<td align="right">511</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(1,788</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,088</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Allocated income taxes and TE adjustments
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(14</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td> </td>
<td align="right">191</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(597</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(406</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Income (loss) from continuing operations
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(24</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td> </td>
<td align="right">320</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(1,191</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(682</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Loss from discontinued operations, net of taxes
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(41</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(143</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Net income (loss)
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(24</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td> </td>
<td align="right">320</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(1,232</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(825</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Less: Net income (loss) attributable to noncontrolling interests
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(5</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Net income (loss) attributable to Key
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"><b>$</b></td>
<td align="right"><b>(24</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td align="left">$</td>
<td align="right">320</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"><b>$</b></td>
<td align="right"><b>(1,227</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(825</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>AVERAGE BALANCES</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Loans and leases<sup style="font-size: 85%; vertical-align: text-top"> (b) </sup>
</div></td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>28,190</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">28,478</td>
<td> </td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>39,973</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">43,819</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Total assets <sup style="font-size: 85%; vertical-align: text-top">(a)</sup>
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>31,119</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">31,442</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>46,460</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">52,073</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Deposits
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>52,406</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">50,034</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>12,891</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">12,049</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>OTHER FINANCIAL DATA</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Net loan charge-offs <sup style="font-size: 85%; vertical-align: text-top">(b) </sup>
</div></td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>235</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">138</td>
<td> </td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>1,314</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">684</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Return on average allocated equity <sup style="font-size: 85%; vertical-align: text-top">(b) </sup>
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(.97 </b></td>
<td nowrap="nowrap"><b>)%</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">14.04</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(29.06 </b></td>
<td nowrap="nowrap"><b>)%</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(17.80</td>
<td nowrap="nowrap">)%</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Return on average allocated equity
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(.97</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td> </td>
<td align="right">14.04</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(30.12</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(21.53</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Average full-time equivalent employees
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>8,652</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">8,783</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>2,895</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3,611</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div style="margin-top: 6pt">
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<td width="3%" nowrap="nowrap" align="left">(a)</td>
<td width="1%"> </td>
<td>Substantially all revenue generated by our major business groups is derived from clients with
residency in the United States. Substantially all long-lived assets, including premises and
equipment, capitalized software and goodwill held by our major business groups are located in
the United States.</td>
</tr>
<tr>
<td style="font-size: 6pt"> </td>
</tr>
<tr valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<td width="3%" nowrap="nowrap" align="left">(b)</td>
<td width="1%"> </td>
<td>From continuing operations.</td>
</tr>
<tr>
<td style="font-size: 6pt"> </td>
</tr>
<tr valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<td width="3%" nowrap="nowrap" align="left">(c)</td>
<td width="1%"> </td>
<td>National Banking’s results for the third quarter of 2009 include a $45 million ($28 million
after tax) write-off of intangible assets, other than goodwill, resulting from actions taken
by us during the third quarter to cease lending in certain equipment leasing markets. For the
first quarter of 2009, National Banking’s results include a noncash charge for goodwill and
other intangible assets impairment of $196 million ($164 million after tax). During the third
quarter of 2008, National Banking’s results include $54 million ($33 million after tax) of
derivative-related charges recorded as a result of market disruption caused by the failure of
Lehman Brothers, and $31 million ($19 million after tax) of realized and unrealized losses
from the residential properties segment of the construction loan portfolio. During the second
quarter of 2008, National Banking’s taxable-equivalent net interest income and net results
were reduced by $838 million and $536 million, respectively, as a result of its involvement
with certain leveraged lease financing transactions that were challenged by the IRS. National
Banking’s taxable-equivalent net interest income and net results were reduced by $34 million
and $21 million, respectively, during the first quarter of 2008 as a result of its involvement
with these leveraged lease financing transactions.</td>
</tr>
</table>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom" style="font-size: 8pt">
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="center" colspan="8" style="border-bottom: 1px solid #000000"><b>Other Segments</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>Total Segments</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>Reconciling Items</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>Key</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="right" colspan="2" style="border-bottom: px solid #000000"><b>2009</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2" style="border-bottom: px solid #000000"><b>2008</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2" style="border-bottom: px solid #000000"><b>2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2" style="border-bottom: px solid #000000"><b>2008</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2" style="border-bottom: px solid #000000"><b>2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2" style="border-bottom: px solid #000000"><b>2008</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2" style="border-bottom: px solid #000000"><b>2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2" style="border-bottom: px solid #000000"><b>2008</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="33" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td valign="top" align="left"> </td>
<td valign="top" align="right"> </td>
<td valign="top"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td nowrap="nowrap" valign="top" align="left"><b>$</b></td>
<td valign="top" align="right"><b>(50</b></td>
<td valign="top" nowrap="nowrap"><b>)</b></td>
<td> </td>
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(36</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>636</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">710</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"><b>$</b></td>
<td align="right"><b>(37</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(26</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>599</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">684</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td nowrap="nowrap" valign="top" align="left"> </td>
<td valign="top" align="right"><b>(6 </b></td>
<td valign="top" nowrap="nowrap">) <b><sup style="font-size: 85%; vertical-align: text-top">(d) </sup></b></td>
<td> </td>
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right">27</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>387</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">392</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(5</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(2</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right"><b>382</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">390</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="33" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td nowrap="nowrap" valign="top" align="left"> </td>
<td valign="top" align="right"><b>(56</b></td>
<td valign="top" nowrap="nowrap"><b>)</b></td>
<td> </td>
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(9</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right"><b>1,023</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,102</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(42</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(28</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right"><b>981</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,074</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td valign="top" align="left"> </td>
<td valign="top" align="right"><b>—</b></td>
<td valign="top"> </td>
<td> </td>
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>736</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">335</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(3</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td> </td>
<td align="right">1</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>733</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">336</td>
<td> </td>
</tr>
<tr valign="bottom">
<td valign="top" align="left"> </td>
<td valign="top" align="right"><b>—</b></td>
<td valign="top"> </td>
<td> </td>
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>95</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">108</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>95</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">108</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td valign="top" align="left"> </td>
<td valign="top" align="right"><b>10</b></td>
<td valign="top"> </td>
<td> </td>
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(15</td>
<td nowrap="nowrap">) <sup style="font-size: 85%; vertical-align: text-top">(d) </sup></td>
<td> </td>
<td> </td>
<td align="right"><b>835</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">637</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(29</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(5</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right"><b>806</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">632</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="33" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td nowrap="nowrap" valign="top" align="left"> </td>
<td valign="top" align="right"><b>(66</b></td>
<td valign="top" nowrap="nowrap"><b>)</b></td>
<td> </td>
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right">6</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(643</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td> </td>
<td align="right">22</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(10</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(24</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(653</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(2</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td nowrap="nowrap" valign="top" align="left"> </td>
<td valign="top" align="right"><b>(34</b></td>
<td valign="top" nowrap="nowrap"><b>)</b></td>
<td> </td>
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(13</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(251</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(5</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(16</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(11</td>
<td nowrap="nowrap">) <sup style="font-size: 85%; vertical-align: text-top">(e) </sup></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(267</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(16</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td colspan="33" nowrap="nowrap" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td nowrap="nowrap" valign="top" align="left"> </td>
<td valign="top" align="right"><b>(32</b></td>
<td valign="top" nowrap="nowrap"><b>)</b></td>
<td> </td>
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right">19</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(392</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td> </td>
<td align="right">27</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>6</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(13</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(386</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td> </td>
<td align="right">14</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td valign="top" align="left"> </td>
<td valign="top" align="right"><b>—</b></td>
<td valign="top"> </td>
<td> </td>
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(16</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(39</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(16</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(39</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td colspan="33" nowrap="nowrap" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td nowrap="nowrap" valign="top" align="left"> </td>
<td valign="top" align="right"><b>(32</b></td>
<td valign="top" nowrap="nowrap"><b>)</b></td>
<td> </td>
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right">19</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(408</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(12</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right"><b>6</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(13</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(402</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(25</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td nowrap="nowrap" valign="top" align="left"> </td>
<td valign="top" align="right"><b>(4</b></td>
<td valign="top" nowrap="nowrap"><b>)</b></td>
<td> </td>
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right">11</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(5</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td> </td>
<td align="right">11</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(5</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td> </td>
<td align="right">11</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="33" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td nowrap="nowrap" valign="top" align="left"><b>$</b></td>
<td valign="top" align="right"><b>(28</b></td>
<td valign="top" nowrap="nowrap"><b>)</b></td>
<td> </td>
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">8</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"><b>$</b></td>
<td align="right"><b>(403</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(23</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>6</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(13</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"><b>$</b></td>
<td align="right"><b>(397</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(36</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td nowrap="nowrap" colspan="2" valign="top" align="right" style="border-top: 3px double #000000"> </td>
<td valign="top"> </td>
<td> </td>
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="33" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td valign="top" align="left"> </td>
<td valign="top" align="right"> </td>
<td valign="top"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td valign="top" align="left"><b>$</b></td>
<td valign="top" align="right"><b>137</b></td>
<td valign="top"> </td>
<td> </td>
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">165</td>
<td> </td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>64,776</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">72,458</td>
<td> </td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>54</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">78</td>
<td> </td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>64,830</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">72,536</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td valign="top" align="left"> </td>
<td valign="top" align="right"><b>19,913</b></td>
<td valign="top"> </td>
<td> </td>
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right">13,803</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>92,696</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">97,736</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>4,525</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5,420</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>97,221</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">103,156</td>
<td> </td>
</tr>
<tr valign="bottom">
<td valign="top" align="left"> </td>
<td valign="top" align="right"><b>1,800</b></td>
<td valign="top"> </td>
<td> </td>
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right">1,965</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>68,189</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">64,647</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(157</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(202</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right"><b>68,032</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">64,445</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="33" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td valign="top" align="left"> </td>
<td valign="top" align="right"> </td>
<td valign="top"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td valign="top" align="left"> </td>
<td valign="top" align="right"><b>—</b></td>
<td valign="top"> </td>
<td> </td>
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>587</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">233</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>587</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">233</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td valign="top" align="left"> </td>
<td valign="top" align="right"><b>N/M</b></td>
<td valign="top"> </td>
<td> </td>
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right">N/M</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(16.75 </b></td>
<td nowrap="nowrap"><b>)%</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">.73</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td> </td>
<td align="right"><b>N/M</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">N/M</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(13.79</b></td>
<td nowrap="nowrap"><b>)% </b></td>
<td> </td>
<td> </td>
<td align="right">.14</td>
<td nowrap="nowrap">%</td>
</tr>
<tr valign="bottom">
<td valign="top" align="left"> </td>
<td valign="top" align="right"><b>N/M</b></td>
<td valign="top"> </td>
<td> </td>
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right">N/M</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(17.05</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1.05</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right"><b>N/M</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">N/M</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(14.37</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1.64</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td valign="top" align="left"> </td>
<td valign="top" align="right"><b>40</b></td>
<td valign="top"> </td>
<td> </td>
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right">41</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>11,239</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">12,419</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>5,197</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5,679</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>16,436</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">18,098</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="33" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="center" colspan="8" style="border-bottom: 1px solid #000000"><b>Other Segments</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>Total Segments</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>Reconciling Items</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>Key</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="right" colspan="2" style="border-bottom: px solid #000000"><b>2009</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2" style="border-bottom: px solid #000000"><b>2008</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2" style="border-bottom: px solid #000000"><b>2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2" style="border-bottom: px solid #000000"><b>2008</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2" style="border-bottom: px solid #000000"><b>2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2" style="border-bottom: px solid #000000"><b>2008</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2" style="border-bottom: px solid #000000"><b>2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2" style="border-bottom: px solid #000000"><b>2008</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="33" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td valign="top" align="left"> </td>
<td valign="top" align="right"> </td>
<td valign="top"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td nowrap="nowrap" valign="top" align="left"><b>$</b></td>
<td valign="top" align="right"><b>(143</b></td>
<td valign="top" nowrap="nowrap"><b>)</b></td>
<td> </td>
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(96</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>1,873</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,324</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"><b>$</b></td>
<td align="right"><b>(104</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(86</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>1,769</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,238</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td nowrap="nowrap" valign="top" align="left"> </td>
<td valign="top" align="right"><b>192 </b></td>
<td valign="top" nowrap="nowrap"> <b><sup style="font-size: 85%; vertical-align: text-top">(d) </sup></b></td>
<td> </td>
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right">82</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>1,463</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,310</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>103 </b></td>
<td nowrap="nowrap"> <b><sup style="font-size: 85%; vertical-align: text-top">(e) </sup></b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">154</td>
<td nowrap="nowrap"> <sup style="font-size: 85%; vertical-align: text-top">(e) </sup></td>
<td> </td>
<td> </td>
<td align="right"><b>1,566</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,464</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="33" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td valign="top" align="left"> </td>
<td valign="top" align="right"><b>49</b></td>
<td valign="top"> </td>
<td> </td>
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(14</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right"><b>3,336</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,634</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(1</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td> </td>
<td align="right">68</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>3,335</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,702</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td valign="top" align="left"> </td>
<td valign="top" align="right"><b>—</b></td>
<td valign="top"> </td>
<td> </td>
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>2,401</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">991</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>2</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(5</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right"><b>2,403</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">986</td>
<td> </td>
</tr>
<tr valign="bottom">
<td valign="top" align="left"> </td>
<td valign="top" align="right"><b>—</b></td>
<td valign="top"> </td>
<td> </td>
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>295</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">324</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>295</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">324</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td valign="top" align="left"> </td>
<td valign="top" align="right"><b>33</b></td>
<td valign="top"> </td>
<td> </td>
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right">4</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>2,450</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,914</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(62</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(26</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right"><b>2,388</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,888</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="33" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td valign="top" align="left"> </td>
<td valign="top" align="right"><b>16</b></td>
<td valign="top"> </td>
<td> </td>
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(18</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(1,810</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(595</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right"><b>59</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">99</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(1,751</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(496</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td nowrap="nowrap" valign="top" align="left"> </td>
<td valign="top" align="right"><b>(23</b></td>
<td valign="top" nowrap="nowrap"><b>)</b></td>
<td> </td>
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(44</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(634</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(259</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(35</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">553</td>
<td nowrap="nowrap"> <sup style="font-size: 85%; vertical-align: text-top">(e) </sup></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(669</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td> </td>
<td align="right">294</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="33" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td valign="top" align="left"> </td>
<td valign="top" align="right"><b>39</b></td>
<td valign="top"> </td>
<td> </td>
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right">26</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(1,176</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(336</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right"><b>94</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(454</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(1,082</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(790</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td valign="top" align="left"> </td>
<td valign="top" align="right"><b>—</b></td>
<td valign="top"> </td>
<td> </td>
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(41</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(143</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(41</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(143</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td colspan="33" nowrap="nowrap" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td valign="top" align="left"> </td>
<td valign="top" align="right"><b>39</b></td>
<td valign="top"> </td>
<td> </td>
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right">26</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(1,217</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(479</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right"><b>94</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(454</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(1,123</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(933</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td nowrap="nowrap" valign="top" align="left"> </td>
<td valign="top" align="right"><b>(7</b></td>
<td valign="top" nowrap="nowrap"><b>)</b></td>
<td> </td>
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right">11</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(12</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td> </td>
<td align="right">11</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(12</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td> </td>
<td align="right">11</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="33" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td valign="top" align="left"><b>$</b></td>
<td valign="top" align="right"><b>46</b></td>
<td valign="top"> </td>
<td> </td>
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">15</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"><b>$</b></td>
<td align="right"><b>(1,205</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(490</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>94</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(454</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"><b>$</b></td>
<td align="right"><b>(1,111</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(944</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td nowrap="nowrap" colspan="2" valign="top" align="right" style="border-top: 3px double #000000"> </td>
<td valign="top"> </td>
<td> </td>
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="33" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td valign="top" align="left"> </td>
<td valign="top" align="right"> </td>
<td valign="top"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td valign="top" align="left"><b>$</b></td>
<td valign="top" align="right"><b>147</b></td>
<td valign="top"> </td>
<td> </td>
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">193</td>
<td> </td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>68,310</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">72,490</td>
<td> </td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>49</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">149</td>
<td> </td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>68,359</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">72,639</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td valign="top" align="left"> </td>
<td valign="top" align="right"><b>18,205</b></td>
<td valign="top"> </td>
<td> </td>
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right">14,106</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>95,784</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">97,621</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>4,823</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5,646</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>100,607</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">103,267</td>
<td> </td>
</tr>
<tr valign="bottom">
<td valign="top" align="left"> </td>
<td valign="top" align="right"><b>1,827</b></td>
<td valign="top"> </td>
<td> </td>
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right">3,281</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>67,124</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">65,364</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>13,690</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">18,247</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>80,814</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">83,611</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="33" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td valign="top" align="left"> </td>
<td valign="top" align="right"> </td>
<td valign="top"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td valign="top" align="left"> </td>
<td valign="top" align="right"><b>—</b></td>
<td valign="top"> </td>
<td> </td>
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>1,549</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">822</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>1,549</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">822</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td valign="top" align="left"> </td>
<td valign="top" align="right"><b>N/M</b></td>
<td valign="top"> </td>
<td> </td>
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right">N/M</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(16.88 </b></td>
<td nowrap="nowrap"><b>)%</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(5.39</td>
<td nowrap="nowrap">)%</td>
<td> </td>
<td> </td>
<td align="right"><b>N/M</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">N/M</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(13.62 </b></td>
<td nowrap="nowrap"><b>)%</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(12.44</td>
<td nowrap="nowrap">)%</td>
</tr>
<tr valign="bottom">
<td valign="top" align="left"> </td>
<td valign="top" align="right"><b>N/M</b></td>
<td valign="top"> </td>
<td> </td>
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right">N/M</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(17.10</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(7.61</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right"><b>N/M</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">N/M</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(14.14</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(14.66</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td valign="top" align="left"> </td>
<td valign="top" align="right"><b>40</b></td>
<td valign="top"> </td>
<td> </td>
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right">42</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>11,587</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">12,436</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>5,356</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5,793</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>16,943</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">18,229</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="33" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div style="margin-top: 6pt">
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<td width="3%" nowrap="nowrap" align="left">(d)</td>
<td width="1%"> </td>
<td>Other Segments’ results for the third quarter of 2009 include a $17 million ($11 million
after tax) loss related to the exchange of common shares for capital securities. During the
second quarter of 2009, National Banking’s results include net gains of $125 million ($78
million after tax) in connection with the repositioning of the securities portfolio and a $95
million ($59 million after tax) gain related to the exchange of common shares for capital
securities. For the third quarter of 2008, Other Segments’ results include a $23 million ($14
million after tax) credit, representing the reversal of the remaining reserve associated with
the Honsador litigation, which was settled in September 2008.</td>
</tr>
<tr>
<td style="font-size: 6pt"> </td>
</tr>
<tr valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<td width="3%" nowrap="nowrap" align="left">(e)</td>
<td width="1%"> </td>
<td>Reconciling Items for the second quarter of 2009 include a $32 million ($20 million after
tax) gain from the sale of our claim associated with the Lehman Brothers’ bankruptcy. For
the first quarter of 2009, Reconciling Items include a $105 million ($65 million after tax)
gain from the sale of our remaining equity interest in Visa Inc. Reconciling Items for the
third and second quarters of 2008 include charges of $30 million and $475 million,
respectively, to income taxes for the interest cost associated with the previously disclosed
leveraged lease tax litigation. For the first quarter of 2008, Reconciling Items include a
$165 million ($103 million after tax) gain from the partial redemption of our equity interest
in Visa Inc. and a $17 million charge to income taxes for the interest cost associated with
the increase to our tax reserves for certain leveraged lease transactions.</td>
</tr>
</table>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div style="margin-top: 6pt">
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Supplementary information (Community Banking lines of business)
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><b>Three months ended September 30,</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>Regional Banking</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>Commercial Banking</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><i>dollars in millions</i></td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>2008</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>2008</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Total revenue (TE)
</div></td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>522</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">549</td>
<td> </td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>96</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">102</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Provision for loan losses
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>93</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">39</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>50</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">17</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Noninterest expense
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>437</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">391</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>49</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">47</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Net income (loss) attributable to Key
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(5</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td> </td>
<td align="right">74</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(2</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td> </td>
<td align="right">24</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Average loans and leases
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>19,347</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">19,801</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>8,063</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">9,073</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Average deposits
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>48,551</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">46,655</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>4,403</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3,723</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Net loan charge-offs
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>78</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">41</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>16</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">29</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Net loan charge-offs to average loans
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>1.60</b></td>
<td nowrap="nowrap"><b>%</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">.82</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>.79</b></td>
<td nowrap="nowrap"><b>%</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">1.27</td>
<td nowrap="nowrap">%</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Nonperforming assets at period end
</div></td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>290</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">168</td>
<td> </td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>180</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">57</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Return on average allocated equity
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(.85</b></td>
<td nowrap="nowrap"><b>)%</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b> </b>13.51</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(.77</b></td>
<td nowrap="nowrap"><b>)%</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">10.53</td>
<td nowrap="nowrap">%</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Average full-time equivalent employees
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>8,120</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">8,527</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>299</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">327</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><b>Nine months ended September 30,</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>Regional Banking</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>Commercial Banking</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><i>dollars in millions</i></td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>2008</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>2008</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Total revenue (TE)
</div></td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>1,532</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,630</td>
<td> </td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>279</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">304</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Provision for loan losses
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>327</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">74</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>84</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">44</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Noninterest expense
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>1,285</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,168</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>153</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">137</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Net income (loss) attributable to Key
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(51</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td> </td>
<td align="right">243</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>27</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">77</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Average loans and leases
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>19,697</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">19,664</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>8,493</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">8,814</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Average deposits
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>48,353</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">46,367</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>4,053</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3,667</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Net loan charge-offs
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>204</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">103</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>31</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">35</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Net loan charge-offs to average loans
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>1.38</b></td>
<td nowrap="nowrap"><b>%</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">.70</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>.49</b></td>
<td nowrap="nowrap"><b>%</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">.53</td>
<td nowrap="nowrap">%</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Nonperforming assets at period end
</div></td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>290</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">168</td>
<td> </td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>180</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">57</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Return on average allocated equity
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(2.96) </b></td>
<td nowrap="nowrap"><b>%</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">15.03</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>3.56</b></td>
<td nowrap="nowrap"><b>%</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">11.62</td>
<td nowrap="nowrap">%</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Average full-time equivalent employees
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>8,340</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">8,453</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>312</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">330</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Supplementary information (National Banking lines of business)
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="20%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Real Estate Capital and</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Institutional and</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"> </td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><b>Three months ended September 30,</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>Corporate Banking Services</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>Equipment Finance</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>Capital Markets</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>Consumer Finance</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><i>dollars in millions</i></td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>2008</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>2008</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>2008</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>2008</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="33" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Total revenue (TE)
</div></td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>140</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">98</td>
<td> </td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>86</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">111</td>
<td> </td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>186</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">177</td>
<td> </td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>49</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">74</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Provision for loan losses
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>372</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">99</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>99</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">64</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>29</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">17</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>93</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">99</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Noninterest expense
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>135</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">91</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>126</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">89</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>138</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">101</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>35</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">41</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Income (loss) from continuing operations
attributable to Key
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(228</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(57</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(87</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(26</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right"><b>12</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">36</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(49</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(43</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Net income (loss) attributable to Key
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(228</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(57</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(87</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(26</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right"><b>14</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">38</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(67</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(84</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Average loans and leases <sup style="font-size: 85%; vertical-align: text-top"> (a) </sup>
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>14,902</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">16,447</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>8,462</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">10,013</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>7,383</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">8,351</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>6,482</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">8,608</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Average loans held for sale <sup style="font-size: 85%; vertical-align: text-top"> (a) </sup>
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>248</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">792</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>73</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">49</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>147</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">650</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>1</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Average deposits
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>10,624</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">10,446</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>15</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">20</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>2,450</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,478</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>346</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">360</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Net loan charge-offs <sup style="font-size: 85%; vertical-align: text-top"> (a) </sup>
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>309</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">100</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>51</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">32</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>49</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>84</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">31</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Net loan charge-offs to average loans <sup style="font-size: 85%; vertical-align: text-top">(a) </sup>
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>8.23</b></td>
<td nowrap="nowrap"><b>%</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">2.42</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>2.39</b></td>
<td nowrap="nowrap"><b>%</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">1.27</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>2.63</b></td>
<td nowrap="nowrap"><b>%</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">—</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>5.14</b></td>
<td nowrap="nowrap"><b>%</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">1.43</td>
<td nowrap="nowrap">%</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Nonperforming assets at period end <sup style="font-size: 85%; vertical-align: text-top"> (a) </sup>
</div></td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>1,522</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">714</td>
<td> </td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>309</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">115</td>
<td> </td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>208</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">57</td>
<td> </td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>269</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">115</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Return on average allocated equity <sup style="font-size: 85%; vertical-align: text-top">(a)</sup>
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(34.97</b></td>
<td nowrap="nowrap"><b>)%</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b> </b>(11.00</td>
<td nowrap="nowrap">)%</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(54.53</b></td>
<td nowrap="nowrap"><b>)%</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b> </b>(11.56</td>
<td nowrap="nowrap">)%</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>4.32</b></td>
<td nowrap="nowrap"><b>%</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">11.15</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(18.78</b></td>
<td nowrap="nowrap"><b>)%</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b> </b>(18.22</td>
<td nowrap="nowrap">)%</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Return on average allocated equity
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(34.97</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(11.00</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(54.53</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(11.56</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right"><b>5.04</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">11.77</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(25.68</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(35.59</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Average full-time equivalent employees <sup style="font-size: 85%; vertical-align: text-top">(b)</sup>
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>967</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,209</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>731</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">897</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>813</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">964</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>269</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">454</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="33" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td width="20%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Real Estate Capital and</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Institutional and</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="6"> </td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><b>Nine months ended September 30,</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>Corporate Banking Services</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>Equipment Finance</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>Capital Markets</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>Consumer Finance</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><i>dollars in millions</i></td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>2008</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>2008</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>2008</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>2008</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="33" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Total revenue (TE)
</div></td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>497</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">417</td>
<td> </td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>288</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(490</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>541</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">552</td>
<td> </td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>150</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">235</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Provision for loan losses
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>1,304</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">509</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>248</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">124</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>98</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">69</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>340</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">171</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Noninterest expense
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>378</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">223</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>302</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">274</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>442</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">325</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>152</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">107</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Income (loss) from continuing operations
attributable to Key
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(758</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(197</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(164</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(555</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(29</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td> </td>
<td align="right">98</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(235</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(28</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td nowrap="nowrap">
<div style="margin-left:15px; text-indent:-15px">Net income (loss) <br />attributable to Key
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(758</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(197</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(164</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(555</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(39</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td> </td>
<td align="right">103</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(266</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(176</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Average loans and leases <sup style="font-size: 85%; vertical-align: text-top"> (a) </sup>
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>15,775</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">16,676</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>8,772</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">10,310</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>8,235</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">7,951</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>7,191</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">8,882</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Average loans held for sale <sup style="font-size: 85%; vertical-align: text-top"> (a) </sup>
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>249</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">799</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>47</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">44</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>203</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">566</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>1</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Average deposits
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>10,400</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">10,231</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>16</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">18</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>2,188</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,441</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>287</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">359</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Net loan charge-offs <sup style="font-size: 85%; vertical-align: text-top"> (a) </sup>
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>800</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">513</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>141</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">84</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>106</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">7</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>267</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">80</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Net loan charge-offs to average loans <sup style="font-size: 85%; vertical-align: text-top">(a) </sup>
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>6.78</b></td>
<td nowrap="nowrap"><b>%</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">4.11</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>2.15</b></td>
<td nowrap="nowrap"><b>%</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">1.09</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>1.72</b></td>
<td nowrap="nowrap"><b>%</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">.12</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>4.96</b></td>
<td nowrap="nowrap"><b>%</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">1.20</td>
<td nowrap="nowrap">%</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Nonperforming assets at period end <sup style="font-size: 85%; vertical-align: text-top"> (a) </sup>
</div></td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>1,522</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">714</td>
<td> </td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>309</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">115</td>
<td> </td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>208</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">57</td>
<td> </td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>269</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">115</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Return on average allocated equity <sup style="font-size: 85%; vertical-align: text-top">(a)</sup>
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(39.08</b></td>
<td nowrap="nowrap"><b>)%</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b> </b>(12.89</td>
<td nowrap="nowrap">)%</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(33.48</b></td>
<td nowrap="nowrap"><b>)%</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b> </b>(81.47</td>
<td nowrap="nowrap">)%</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(3.37</b></td>
<td nowrap="nowrap"><b>)%</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b> </b>10.54</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(29.67</b></td>
<td nowrap="nowrap"><b>)%</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b> </b>(4.05</td>
<td nowrap="nowrap">)%</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Return on average allocated equity
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(39.08</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(12.89</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(33.48</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(81.47</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(4.57</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td> </td>
<td align="right">11.08</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(33.58</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(25.44</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Average full-time equivalent employees <sup style="font-size: 85%; vertical-align: text-top">(b)</sup>
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>991</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,223</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>759</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">918</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>865</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">945</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>280</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">525</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="33" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div style="margin-top: 6pt">
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<td width="3%" nowrap="nowrap" align="left">(a)</td>
<td width="1%"> </td>
<td>From continuing operations.</td>
</tr>
<tr>
<td style="font-size: 6pt"> </td>
</tr>
<tr valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<td width="3%" nowrap="nowrap" align="left">(b)</td>
<td width="1%"> </td>
<td>The number of average full-time employees has not been adjusted for discontinued operations.</td>
</tr>
</table>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div style="margin-top: 6pt">
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 5 - key:SecuritiesTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 18pt"><b>5. Securities</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><b><i>Securities available for sale. </i></b>These are securities that we intend to hold for an indefinite
period of time but that may be sold in response to changes in interest rates, prepayment risk,
liquidity needs or other factors. Securities available for sale are reported at fair value.
Unrealized gains and losses (net of income taxes) deemed temporary are recorded in equity as a
component of AOCI on the balance sheet. Unrealized losses on equity securities deemed to be
“other-than-temporary” are included in “net securities gains” on the income statement, as are
actual gains and losses resulting from the sales of securities using the specific identification
method. Unrealized losses on debt securities deemed to be “other-than-temporary” are
included in “net securities gains” on the income statement or AOCI in accordance with the
applicable accounting guidance related to the recognition of OTTI of debt securities, as further
described on page 23 of this note.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">“Other securities” held in the available-for-sale portfolio are primarily marketable equity
securities that are traded on a public exchange such as the NYSE or NASDAQ.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><b><i>Held-to-maturity securities. </i></b>These are debt securities that we have the intent and ability to hold
until maturity. Debt securities are carried at cost, adjusted for amortization of premiums and
accretion of discounts using the interest method. This method produces a constant rate of return
on the adjusted carrying amount.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">“Other securities” held in the held-to-maturity portfolio consist of foreign bonds, capital
securities and preferred equity securities.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The amortized cost, unrealized gains and losses, and approximate fair value of our securities
available for sale and held-to-maturity securities are presented in the following tables. Gross
unrealized gains and losses represent the difference between the amortized cost and the fair value
of securities on the balance sheet as of the dates indicated. Accordingly, the amount of these
gains and losses may change in the future as market conditions change.
</div>
<!-- Folio -->
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</div>
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<div style="font-family: 'Times New Roman',Times,serif">
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="14" style="border-bottom: 1px solid #000000"><b>September 30, 2009</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Gross</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Gross</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"> </td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Amortized</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Unrealized</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Unrealized</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Fair</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><i>in millions</i></td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Cost</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Gains</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Losses</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Value</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>SECURITIES AVAILABLE FOR SALE</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">U.S. Treasury, agencies and corporations
</div></td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>8</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>8</b></td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">States and political subdivisions
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>83</b></td>
<td> </td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>4</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>87</b></td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Collateralized mortgage obligations
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>13,551</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>178</b></td>
<td> </td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>48</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>13,681</b></td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Other mortgage-backed securities
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>1,432</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>93</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>1,525</b></td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Other securities
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>99</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>14</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>1</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>112</b></td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Total securities available for sale <sup style="font-size: 85%; vertical-align: text-top"> (a) </sup>
</div></td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>15,173</b></td>
<td> </td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>289</b></td>
<td> </td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>49</b></td>
<td> </td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>15,413</b></td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>HELD-TO-MATURITY SECURITIES</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">States and political subdivisions
</div></td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>3</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>3</b></td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Other securities
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>21</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>21</b></td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Total held-to-maturity securities
</div></td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>24</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>24</b></td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="14" style="border-bottom: 1px solid #000000"><b>December 31, 2008</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Gross</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Gross</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"> </td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Amortized</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Unrealized</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Unrealized</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Fair</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><i>in millions</i></td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Cost</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Gains</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Losses</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Value</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>SECURITIES AVAILABLE FOR SALE</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">U.S. Treasury, agencies and corporations
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">9</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">10</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">States and political subdivisions
</div></td>
<td> </td>
<td> </td>
<td align="right">90</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">91</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Collateralized mortgage obligations
</div></td>
<td> </td>
<td> </td>
<td align="right">6,380</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">148</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">5</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">6,523</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Other mortgage-backed securities
</div></td>
<td> </td>
<td> </td>
<td align="right">1,505</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">63</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,567</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Other securities
</div></td>
<td> </td>
<td> </td>
<td align="right">71</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">17</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">55</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Total securities available for sale <sup style="font-size: 85%; vertical-align: text-top"> (a) </sup>
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">8,055</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">214</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">23</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">8,246</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>HELD-TO-MATURITY SECURITIES</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">States and political subdivisions
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">4</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">4</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Other securities
</div></td>
<td> </td>
<td> </td>
<td align="right">21</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">21</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Total held-to-maturity securities
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">25</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">25</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="14" style="border-bottom: 1px solid #000000"><b>September 30, 2008</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Gross</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Gross</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"> </td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Amortized</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Unrealized</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Unrealized</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Fair</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><i>in millions</i></td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Cost</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Gains</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Losses</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Value</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>SECURITIES AVAILABLE FOR SALE</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">U.S. Treasury, agencies and corporations
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">10</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">10</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">States and political subdivisions
</div></td>
<td> </td>
<td> </td>
<td align="right">92</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">2</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">90</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Collateralized mortgage obligations
</div></td>
<td> </td>
<td> </td>
<td align="right">6,368</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">113</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">13</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">6,468</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Other mortgage-backed securities
</div></td>
<td> </td>
<td> </td>
<td align="right">1,511</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">25</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,534</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Other securities
</div></td>
<td> </td>
<td> </td>
<td align="right">98</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">7</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">94</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Total securities available for sale <sup style="font-size: 85%; vertical-align: text-top"> (a) </sup>
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">8,079</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">141</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">24</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">8,196</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>HELD-TO-MATURITY SECURITIES</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">States and political subdivisions
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">7</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">7</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Other securities
</div></td>
<td> </td>
<td> </td>
<td align="right">21</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">21</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Total held-to-maturity securities
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">28</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">28</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div style="margin-top: 6pt">
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<td width="3%" nowrap="nowrap" align="left">(a)</td>
<td width="1%"> </td>
<td>Excluded at September 30, 2009, December 31, 2008, and September 30, 2008, are retained
interests in securitizations in the amount of $176 million, $191 million and $195 million,
respectively, related to the discontinued operations of the education lending business.</td>
</tr>
</table>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div style="margin-top: 6pt">
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The following table summarizes our securities available for sale that were in an unrealized
loss position as of September 30, 2009, December 31, 2008, and September 30, 2008.
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="28%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="14" style="border-bottom: 1px solid #000000"><b>Duration of Unrealized Loss Position</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="6"> </td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>Less than 12 Months</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>12 Months or Longer</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>Total</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Gross</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Gross</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Gross</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Unrealized</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Unrealized</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Unrealized</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><i>in millions</i></td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Fair Value</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Losses</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Fair Value</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Losses</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Fair Value</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Losses</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="25" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>SEPTEMBER 30, 2009</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Securities available for sale:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Collateralized mortgage obligations
</div></td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>5,537</b></td>
<td> </td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>48</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>5,537</b></td>
<td> </td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>48</b></td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Other securities
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>1</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>5</b></td>
<td> </td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>1</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>6</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>1</b></td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="25" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Total temporarily impaired securities
</div></td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>5,538</b></td>
<td> </td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>48</b></td>
<td> </td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>5</b></td>
<td> </td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>1</b></td>
<td> </td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>5,543</b></td>
<td> </td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>49</b></td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="25" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>DECEMBER 31, 2008</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Securities available for sale:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Collateralized mortgage obligations
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">107</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">360</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">5</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">467</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">5</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Other mortgage-backed securities
</div></td>
<td> </td>
<td> </td>
<td align="right">3</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">15</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">18</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Other securities
</div></td>
<td> </td>
<td> </td>
<td align="right">40</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">13</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">45</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">17</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="25" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Total temporarily impaired securities
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">150</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">13</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">380</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">10</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">530</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">23</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="25" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>SEPTEMBER 30, 2008</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Securities available for sale:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">States and political subdivisions
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">69</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">2</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">69</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">2</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Collateralized mortgage obligations
</div></td>
<td> </td>
<td> </td>
<td align="right">579</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">382</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">8</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">961</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">13</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Other mortgage-backed securities
</div></td>
<td> </td>
<td> </td>
<td align="right">180</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">40</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">220</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Other securities
</div></td>
<td> </td>
<td> </td>
<td align="right">49</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">6</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">51</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">7</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="25" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Total temporarily impaired securities
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">877</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">14</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">424</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">10</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,301</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">24</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="25" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Of the $49 million of gross unrealized losses at September 30, 2009, $48 million relates to
fixed-rate collateralized mortgage obligations, which we invest in as part of an overall
asset/liability management strategy. Since these instruments have fixed interest rates, their fair
value is sensitive to movements in market interest rates. During the first nine months of 2009,
interest rates generally increased, so the fair value of these 23 instruments, which had a
weighted-average maturity of 4.0 years at September 30, 2009, decreased below their amortized cost.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The unrealized losses within each investment category are considered temporary since we do not
intend to sell the securities, and it is more-likely-than-not that we will not be required to sell
these securities prior to expected recovery. Accordingly, these investments have been reduced to
their fair value through OCI, not earnings.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">We regularly assess our securities portfolio for OTTI. The assessments are based on the nature of
the securities, underlying collateral, the financial condition of the issuer, the extent and
duration of the loss, our intent related to the individual securities and the likelihood that we
will have to sell these securities prior to expected recovery.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Debt securities identified to have OTTI are written down to their current fair value. For those
debt securities that we intend to sell, or more-likely-than-not will be required to sell, prior to
expected recovery, the entire impairment (i.e., difference between amortized cost and the fair
value) is recognized in earnings. For those debt securities that we do not intend to sell, or it
is more-likely-than-not that we will not be required to sell, prior to expected recovery, the
credit portion of OTTI is recognized in earnings, while the remaining amount is recognized in
equity as a component of AOCI on the balance sheet.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">The following table shows the OTTI losses recognized during the third quarter of 2009:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="88%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><b>Three months ended September 30, 2009</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><i>in millions</i></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="5" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Total OTTI losses recognized on debt securities which Key does not intend to sell or
more-likely-than-not will not be required to sell
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">4</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Less: Portion of OTTI losses recognized in AOCI, pre-tax
</div></td>
<td> </td>
<td> </td>
<td align="right">2</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="5" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Net OTTI losses recognized in earnings for debt securities which Key does not
intend to sell or more-likely-than-not will not be required to sell
</div></td>
<td> </td>
<td> </td>
<td align="right">2</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">OTTI losses on equity securities recognized in earnings
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="5" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Total OTTI losses recognized in earnings
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">2</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="5" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The following table shows changes in the cumulative credit portion of impairments on our debt
securities. All credit-related impairments on debt securities relate to our education loan
securitization residual interests. These assets are included in “discontinued assets” on the
balance sheet as a result of our decision to exit the government-guaranteed education lending
business. For more information about this discontinued operation, see Note 3 (“Acquisition and
Divestitures”), which begins on page 14.
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="88%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><b>Three months ended September 30, 2009</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><i>in millions</i></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="5" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Balance at July 1, 2009</b>
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">6</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Impairment recognized in earnings
</div></td>
<td> </td>
<td> </td>
<td align="right">2</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="5" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Balance at September 30, 2009</b>
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">8</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="5" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Realized gains and losses related to securities available for sale were as follows:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="88%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><b>Nine months ended September 30, 2009</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><i>in millions</i></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="5" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Realized gains
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">128</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Realized losses
</div></td>
<td> </td>
<td> </td>
<td align="right">16</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="5" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Net securities gains
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">112</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="5" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">At September 30, 2009, securities available for sale and held-to-maturity securities totaling $8.9
billion were pledged to secure public and trust deposits, and securities sold under repurchase
agreements, to facilitate access to secured funding, and for other purposes required or permitted
by law.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The following table shows securities by remaining maturity. Collateralized mortgage obligations
and other mortgage-backed securities — both of which are included in the securities
available-for-sale portfolio — are presented based on their expected average lives. The remaining
securities, including all of those in the held-to-maturity portfolio, are presented based on their
remaining contractual maturity. Actual maturities may differ from expected or contractual
maturities since borrowers have the right to prepay obligations with or without prepayment
penalties.
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Securities</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Held-to-Maturity</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>Available for Sale</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>Securities</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><b>September 30, 2009</b></td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Amortized</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Fair</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Amortized</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Fair</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><i>in millions</i></td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Cost</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Value</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Cost</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Value</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Due in one year or less
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">606</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">625</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">5</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">5</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Due after one through five years
</div></td>
<td> </td>
<td> </td>
<td align="right">14,406</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">14,618</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">19</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">19</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Due after five through ten years
</div></td>
<td> </td>
<td> </td>
<td align="right">137</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">144</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Due after ten years
</div></td>
<td> </td>
<td> </td>
<td align="right">24</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">26</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Total
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">15,173</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">15,413</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">24</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">24</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 6 - key:LoansAndLoansHeldForSaleTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 18pt"><b>6. Loans and Loans Held for Sale</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Our loans by category are summarized as follows:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="64%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left" colspan="2" style="border-bottom: px solid #000000"><b>September 30,</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>December 31,</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>September 30,</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><i>in millions</i></td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>2008</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>2008</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="13" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Commercial, financial and agricultural
</div></td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>20,600</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">27,260</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">27,207</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Commercial real estate:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Commercial mortgage <b></b>
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>11,169</b></td>
<td nowrap="nowrap"> <sup style="font-size: 85%; vertical-align: text-top"> <b>(a)</b></sup></td>
<td> </td>
<td> </td>
<td align="right">10,819</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">10,569</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Construction <b></b>
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>5,473</b></td>
<td nowrap="nowrap"> <sup style="font-size: 85%; vertical-align: text-top"> <b>(a)</b></sup></td>
<td> </td>
<td> </td>
<td align="right">7,717</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">7,708</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="13" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Total commercial real estate loans <b></b>
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>16,642</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">18,536</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">18,277</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Commercial lease financing <b></b>
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>7,787</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">9,039</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">9,437</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="13" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Total commercial loans <b></b>
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>45,029</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">54,835</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">54,921</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Real estate — residential mortgage <b></b>
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>1,763</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,908</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,898</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Home equity:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Community Banking <b></b>
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>10,158</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">10,124</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">9,970</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">National Banking <b></b>
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>880</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,051</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,101</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="13" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Total home equity loans <b></b>
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>11,038</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">11,175</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">11,071</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Consumer other — Community Banking <b></b>
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>1,189</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,233</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,274</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Consumer other — National Banking:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Marine <b></b>
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>2,943</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3,401</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3,529</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Other <b></b>
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>231</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">283</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">301</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="13" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Total consumer other — National Banking <b></b>
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>3,174</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3,684</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3,830</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="13" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Total consumer loans <b></b>
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>17,164</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">18,000</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">18,073</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="13" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Total loans<sup style="font-size: 85%; vertical-align: text-top"> (b) </sup>
</div></td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>62,193</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">72,835</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">72,994</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td style="border-top: px double #000000">
<div style="margin-left:60px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="13" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div style="margin-top: 6pt">
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<td width="3%" nowrap="nowrap" align="left">(a)</td>
<td width="1%"> </td>
<td>In late March 2009, we transferred $1.5 billion of loans from the construction portfolio to
the commercial mortgage portfolio in accordance with regulatory guidelines pertaining to the
classification of loans that have reached a completed status.</td>
</tr>
<tr>
<td style="font-size: 6pt"> </td>
</tr>
<tr valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<td width="3%" nowrap="nowrap" align="left">(b)</td>
<td width="1%"> </td>
<td>Excluded at September 30, 2009, December 31, 2008,
and September 30, 2008, are loans in the
amount of $3.6 billion, $3.7 billion and $3.7 billion, respectively, related to the
discontinued operations of the education lending business.</td>
</tr>
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">We use interest rate swaps to manage interest rate risk; these swaps modify the repricing
characteristics of certain loans. For more information about such swaps, see Note 15 (“Derivatives
and Hedging Activities”), which begins on page 40.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Our loans held for sale by category are summarized as follows:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="62%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>September 30,</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>December 31,</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>September 30,</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><i>in millions</i></td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>2008</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>2008</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="13" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Commercial, financial and agricultural
</div></td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>128</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">102</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">159</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Real estate — commercial mortgage
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>302</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">273</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">718</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Real estate — construction
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>133</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">164</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">262</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Commercial lease financing
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>29</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">7</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">52</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Real estate — residential mortgage
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>110</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">77</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">57</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Automobile
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>1</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="13" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Total loans held for sale<sup style="font-size: 85%; vertical-align: text-top"> (a) </sup>
</div></td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>703</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">626</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,252</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="13" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div style="margin-top: 6pt">
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<td width="3%" nowrap="nowrap" align="left">(a)</td>
<td width="1%"> </td>
<td>Excluded at September 30, 2009, December 31, 2008,
and September 30, 2008, are loans in the
amount of $341 million, $401 million and $223 million, respectively, related to the
discontinued operations of the education lending business.</td>
</tr>
</table>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div style="margin-top: 6pt">
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Changes in the allowance for loan losses are summarized as follows:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Three months ended</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Nine months ended</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>September 30,</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>September 30,</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><i>in millions</i></td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>2008</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>2008</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Balance at beginning of period
</div></td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>2,339</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,288</td>
<td> </td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>1,629</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,195</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Charge-offs
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(619</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(259</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(1,646</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(904</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Recoveries
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>32</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">26</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>97</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">82</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Net loans charged off
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(587</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(233</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(1,549</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(822</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Provision for loan losses
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>733</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">336</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>2,403</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">986</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Allowance related to loans acquired, net
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">32</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Foreign currency translation adjustment
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right"><b>2</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Balance at end of period
</div></td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>2,485</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,390</td>
<td> </td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>2,485</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,390</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Changes in the liability for credit losses on lending-related commitments are summarized as
follows:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Three months ended</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Nine months ended</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>September 30,</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>September 30,</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><i>in millions</i></td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>2008</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>2008</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Balance at beginning of period
</div></td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>65</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">51</td>
<td> </td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>54</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">80</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Provision (credit) for losses on lending-related commitments
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>29</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">8</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>40</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(21</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Balance at end of period <sup style="font-size: 85%; vertical-align: text-top">(a)</sup>
</div></td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>94</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">59</td>
<td> </td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>94</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">59</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div style="margin-top: 6pt">
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<td width="3%" nowrap="nowrap" align="left">(a)</td>
<td width="1%"> </td>
<td>Included in “accrued expense and other liabilities” on the balance sheet.</td>
</tr>
</table>
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 7 - key:LoanSecuritizationsAndMortgageServicingAssetsTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 18pt"><b>7. Loan Securitizations and Mortgage Servicing Assets</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Retained Interests in Loan Securitizations</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">A securitization involves the sale of a pool of loan receivables to investors through either a
public or private issuance (generally by a qualifying SPE) of asset-backed securities. Generally,
the assets are transferred to a trust that sells interests in the form of certificates of
ownership. In previous years, we sold education loans in securitizations; however, we have not
securitized any education loans since 2006 due to unfavorable market conditions.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">When we sell loans in securitizations, we record a gain or loss when the net sale proceeds and
residual interests, if any, differ from the loans’ allocated carrying amount. Gains or losses
resulting from securitizations are recorded as one component of “loss from discontinued operations,
net of taxes” on the income statement as a result of our decision to exit the government-guaranteed
education lending business. For more information about this discontinued operation, see Note 3
(“Acquisition and Divestitures”), which begins on page 14.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">A servicing asset is recorded if we purchase or retain the right to service securitized loans, and
receive servicing fees that exceed the going market rate. We generally retain an interest in
securitized loans in the form of an interest-only strip, residual asset, servicing asset or
security. Our mortgage servicing assets are discussed in this note under the heading “Mortgage
Servicing Assets” on page 28. Retained interests from education loan securitizations are accounted
for as debt securities and classified as discontinued assets.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">In accordance with the relevant consolidation accounting guidance, qualifying SPEs, including
securitization trusts, established by us under the accounting guidance related to transfers of
financial assets are exempt from consolidation. In June 2009, the FASB issued SFAS No. 166,
“Accounting for Transfers of Financial Assets, an amendment of FASB Statement No. 140.” This
guidance will change the way entities account for securitizations and SPEs. Information related to
our consolidation policy is included in Note 1 (“Basis of Presentation”), which begins on page 7.
For additional information regarding SFAS No. 166, which is effective January 1, 2010, for us, see
Note 1 under the heading “Accounting Standards Pending Adoption at September 30, 2009” on page 12.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">We use certain assumptions and estimates to determine the fair value to be allocated to retained
interests at the date of transfer and at subsequent measurement dates. Primary economic
assumptions used to measure the fair value of our retained interests in education loans and the
sensitivity of the current fair value of residual cash flows to immediate adverse changes in those
assumptions at September 30, 2009, are as follows:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="88%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><i>dollars in millions</i></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="5" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Fair value of retained interests
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">176</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Weighted-average life (years)
</div></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right">.5 - 6.7</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="5" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>PREPAYMENT SPEED ASSUMPTIONS (ANNUAL RATE)</b>
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td nowrap="nowrap" align="right">4.00% - 26.00</td>
<td nowrap="nowrap">%</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Impact on fair value of 1% CPR adverse change
</div></td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(5</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Impact on fair value of 10% CPR adverse change
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(32</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td colspan="5" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>EXPECTED CREDIT LOSSES (STATIC RATE)</b>
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td nowrap="nowrap" align="right">2.00% - 80.00</td>
<td nowrap="nowrap">%</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Impact on fair value of 5% adverse change
</div></td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(2</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Impact on fair value of 10% adverse change
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(9</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td colspan="5" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>RESIDUAL CASH FLOWS DISCOUNT RATE (ANNUAL RATE)</b>
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td nowrap="nowrap" align="right">8.50% - 14.00</td>
<td nowrap="nowrap">%</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Impact on fair value of 2% adverse change
</div></td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(27</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Impact on fair value of 5% adverse change
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(45</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td colspan="5" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>EXPECTED STATIC DEFAULT (STATIC RATE)</b>
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td nowrap="nowrap" align="right">3.75% - 40.00</td>
<td nowrap="nowrap">%</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Impact on fair value of 1% adverse change
</div></td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(8</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Impact on fair value of 10% adverse change
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(67</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td colspan="5" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>VARIABLE RETURNS TO TRANSFEREES</b>
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(a</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td colspan="5" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">These sensitivities are hypothetical and should be relied upon with caution. Sensitivity
analysis is based on the nature of the asset, the seasoning (i.e., age and payment history) of
the portfolio and historical results. Changes in fair value based on a 1% variation in
assumptions generally cannot be extrapolated because the relationship of the change in
assumption to the change in fair value may not be linear. Also, the effect of a variation in a
particular assumption on the fair value of the retained interest is calculated without changing
any other assumption. In reality, changes in one factor may cause changes in another. For
example, increases in market interest rates may result in lower prepayments and increased
credit losses, which might magnify or counteract the sensitivities.
</div>
<div style="margin-top: 6pt">
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<td width="3%" nowrap="nowrap" align="left">(a)</td>
<td width="1%"> </td>
<td>Forward LIBOR plus contractual spread over LIBOR ranging from .00% to 1.30%.</td>
</tr>
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The fair value measurement of our mortgage servicing assets is described in this note under
the heading “Mortgage Servicing Assets” on page 28. We conduct a quarterly review of the fair
values of our other retained interests. The historical performance of each retained interest and
the assumptions used to project future cash flows are reviewed, assumptions are revised and present
values of cash flows are recalculated, as appropriate.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The present values of cash flows represent the fair value of the retained interests. If the fair
value of a retained interest exceeds its carrying amount, the increase in fair value is recorded in
equity as a component of AOCI on the balance sheet. Conversely, if the carrying amount of a
retained interest exceeds its fair value, impairment is indicated. If we intend to sell the
retained interest, or more-likely-than-not will be required to sell it, before the expected
recovery of the amortized cost, then the entire impairment is recognized in earnings. If we do not
have the intent to sell it, or it is more-likely-than-not that we will not be required to sell it,
before expected recovery, then the credit portion of the impairment is recognized in earnings,
while the remaining portion is recognized in AOCI.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">The table below shows the relationship between the education loans we manage and those held in
discontinued assets. Managed loans include those held in discontinued assets, and those
securitized and sold, but still serviced by us. Related delinquencies and net credit losses are
also presented.
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="64%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%">       </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%">       </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Net Credit Losses</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><b>September 30, 2009</b></td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Loan</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Loans Past Due</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>For the Nine</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><i>in millions</i></td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Principal</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>60 days or More</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Months Ended</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="13" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Education loans managed
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">7,830</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">269</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">191</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Less: Loans securitized
</div></td>
<td> </td>
<td> </td>
<td align="right">3,918</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">160</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">84</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Loans held for sale or securitization
</div></td>
<td> </td>
<td> </td>
<td align="right">341</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">7</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="13" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Loans held in discontinued assets
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">3,571</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">102</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">107</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="13" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Mortgage Servicing Assets</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">We originate and periodically sell commercial mortgage loans but continue to service those loans
for the buyers. We also may purchase the right to service commercial mortgage loans for other
lenders. A servicing asset is recorded if we purchase or retain the right to service these loans,
and receive servicing fees that exceed the going market rate. Changes in the carrying amount of
mortgage servicing assets are summarized as follows:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Nine months ended</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>September 30,</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><i>in millions</i></td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>2008</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="9" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Balance at beginning of period
</div></td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>242</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">313</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Servicing retained from loan sales
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>7</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">13</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Purchases
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>15</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Amortization
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(38</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(75</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td colspan="9" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Balance at end of period
</div></td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>226</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">255</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="9" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Fair value at end of period
</div></td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>353</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">412</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="9" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The fair value of mortgage servicing assets is determined by calculating the present value of
future cash flows associated with servicing the loans. This calculation uses a number of
assumptions that are based on current market conditions. Primary economic assumptions used to
measure the fair value of our mortgage servicing assets at September 30, 2009 and 2008, are:
</div>
<div style="margin-top: 6pt">
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<td width="3%" nowrap="nowrap" align="left"><font style="font-family: Symbol">¨</font></td>
<td width="1%"> </td>
<td>prepayment speed generally at an annual rate of 0.00% to 25.00%;</td>
</tr>
<tr>
<td style="font-size: 6pt"> </td>
</tr>
<tr valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<td width="3%" nowrap="nowrap" align="left"><font style="font-family: Symbol">¨</font></td>
<td width="1%"> </td>
<td>expected credit losses at a static rate of 2.00%; and</td>
</tr>
<tr>
<td style="font-size: 6pt"> </td>
</tr>
<tr valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<td width="3%" nowrap="nowrap" align="left"><font style="font-family: Symbol">¨</font></td>
<td width="1%"> </td>
<td>residual cash flows discount rate of 8.50% to 15.00%.</td>
</tr>
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Changes in these assumptions could cause the fair value of mortgage servicing assets to change in
the future. The volume of loans serviced and expected credit losses are critical to the valuation
of servicing assets. A 1.00% increase in the assumed default rate of commercial mortgage loans at
September 30, 2009, would cause an $8 million decrease in the fair value of our mortgage servicing
assets.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Contractual fee income from servicing commercial mortgage loans totaled $52 million for both the
nine-month periods ended September 30, 2009 and 2008. We have elected to remeasure servicing
assets using the amortization method. The amortization of servicing assets is determined in
proportion to, and over the period of, the estimated net servicing income. The amortization of
servicing assets for each period, as shown in the preceding table, is recorded as a reduction to
fee income. Both the contractual fee income and the amortization are recorded in “other income” on
the income statement.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Servicing assets are evaluated quarterly for possible impairment. This process involves
classifying the assets based on the types of loans serviced and their associated interest rates,
and determining the fair value of each class. If the evaluation indicates that the carrying amount
of the servicing assets exceeds their fair value, the carrying amount is reduced through a charge
to income in the amount of such excess. For the nine-month periods ended September 30, 2009 and
2008, no servicing asset impairment occurred.
</div>
<!-- Folio -->
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</div>
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<div style="font-family: 'Times New Roman',Times,serif">
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 8 - us-gaap:ScheduleOfVariableInterestEntitiesTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 18pt"><b>8. Variable Interest Entities</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">A VIE is a partnership, limited liability company, trust or other legal entity that meets any
one of the following criteria:
</div>
<div style="margin-top: 6pt">
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<td width="3%" nowrap="nowrap" align="left"><font style="font-family: Symbol">¨</font></td>
<td width="1%"> </td>
<td>The entity does not have sufficient equity to conduct its activities without additional subordinated financial support from another party.</td>
</tr>
<tr>
<td style="font-size: 6pt"> </td>
</tr>
<tr valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<td width="3%" nowrap="nowrap" align="left"><font style="font-family: Symbol">¨</font></td>
<td width="1%"> </td>
<td>The entity’s investors lack the authority to make decisions about the activities of the entity through voting rights or similar rights,
and do not have the obligation to absorb the entity’s expected losses or the right to receive the entity’s expected residual returns.</td>
</tr>
<tr>
<td style="font-size: 6pt"> </td>
</tr>
<tr valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<td width="3%" nowrap="nowrap" align="left"><font style="font-family: Symbol">¨</font></td>
<td width="1%"> </td>
<td>The voting rights of some investors are not proportional to their economic interest in the entity, and substantially all of the entity’s
activities involve or are conducted on behalf of investors with disproportionately few voting rights.</td>
</tr>
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Our VIEs, including those consolidated and those in which we hold a significant interest, are
summarized below. We define a “significant interest” in a VIE as a subordinated interest that
exposes us to a significant portion, but not the majority, of the VIE’s expected losses or residual
returns.
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left" colspan="2" style="border-bottom: 1px solid #000000"><b>Consolidated VIEs</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="10" style="border-bottom: 1px solid #000000"><b>Unconsolidated VIEs</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><b>September 30, 2009</b></td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Total</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Total</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Total</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Maximum</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><i>in millions</i></td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Assets</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Assets</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Liabilities</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Exposure to Loss</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">LIHTC funds
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">186</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">175</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">LIHTC investments
</div></td>
<td> </td>
<td> </td>
<td align="right">N/A</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">907</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">446</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Our involvement with VIEs is described below.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Consolidated VIEs</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><b><i>LIHTC guaranteed funds. </i></b>KAHC formed limited partnerships, known as funds, which invested in LIHTC
operating partnerships. Interests in these funds were offered in syndication to qualified
investors who paid a fee to KAHC for a guaranteed return. We also earned syndication fees from
these funds and continue to earn asset management fees. The funds’ assets primarily are
investments in LIHTC operating partnerships, which totaled $171 million at September 30, 2009.
These investments are recorded in “accrued income and other assets” on the balance sheet and serve
as collateral for the funds’ limited obligations. We have not formed new funds or added LIHTC
partnerships since October 2003. However, we continue to act as asset manager and provide
occasional funding for existing funds under a guarantee obligation. As a result of this guarantee
obligation, we have determined that we are the primary beneficiary of these funds. We recorded
expenses of $18 million related to this guarantee obligation during the first nine months of 2009.
Additional information on return guarantee agreements with LIHTC investors is presented in Note 14
(“Contingent Liabilities and Guarantees”) under the heading “Guarantees” on page 37.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The partnership agreement for each guaranteed fund requires the fund to be dissolved by a certain
date. In accordance with the applicable accounting guidance for distinguishing liabilities from
equity, the third-party interests associated with these funds are considered mandatorily redeemable
instruments and are recorded in “accrued expense and other liabilities” on the balance sheet. The
FASB has indefinitely deferred the measurement and recognition provisions of this accounting
guidance for mandatorily redeemable third-party interests associated with finite-lived
subsidiaries, such as our LIHTC guaranteed funds. We adjust the financial statements each period
for the third-party investors’ share of the funds’ profits and losses. At September 30, 2009, the
settlement value of these third-party interests was estimated to be between $135 million and $145
million, while the recorded value, including reserves, totaled $192 million.
</div>
<!-- Folio -->
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</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Unconsolidated VIEs</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><b><i>LIHTC nonguaranteed funds. </i></b>Although we hold significant interests in certain nonguaranteed funds
that we formed and funded, we have determined that we are not the primary beneficiary of those
funds because we do not absorb the majority of the expected losses of the funds. At September 30,
2009, assets of these unconsolidated nonguaranteed funds totaled $175 million. Our maximum
exposure to loss in connection with these funds is minimal, and we do not have any liability
recorded related to the funds. We elected to cease forming these funds in October 2003.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><b><i>LIHTC investments</i></b><i>. </i>Through the Community Banking business group, we have made investments directly
in LIHTC operating partnerships formed by third parties. As a limited partner in these operating
partnerships, we are allocated tax credits and deductions associated with the underlying
properties. We have determined that we are not the primary beneficiary of these investments
because the general partners are more closely associated with the business activities of these
partnerships. At September 30, 2009, assets of these unconsolidated LIHTC operating partnerships
totaled approximately $907 million. Our maximum exposure to loss in connection with these
partnerships is the unamortized investment balance of $372 million at September 30, 2009, plus $74
million of tax credits claimed but subject to recapture. We do not have any liability recorded
related to these investments because we believe the likelihood of any loss in connection with these
partnerships is remote. During the first nine months of 2009, we did not obtain significant direct
investments (either individually or in the aggregate) in LIHTC operating partnerships.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">We have additional investments in unconsolidated LIHTC operating partnerships that are held by the
consolidated LIHTC guaranteed funds. Total assets of these operating partnerships were
approximately $1.3 billion at September 30, 2009. The tax credits and deductions associated with
these properties are allocated to the funds’ investors based on their ownership percentages. We
have determined that we are not the primary beneficiary of these partnerships because the general
partners are more closely associated with the business activities of these partnerships.
Information regarding our exposure to loss in connection with these guaranteed funds is included in
Note 14 under the heading “Return guarantee agreement with LIHTC investors” on page 38.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><b><i>Commercial and residential real estate investments and principal investments. </i></b>Our Principal
Investing unit and the Real Estate Capital and Corporate Banking Services line of business make
equity and mezzanine investments, some of which are in VIEs. These investments are held by
nonregistered investment companies subject to the provisions of the AICPA Audit and Accounting
Guide, “Audits of Investment Companies.” We are not currently applying the accounting or
disclosure provisions in the applicable accounting guidance for consolidations to these
investments, which remain unconsolidated; the FASB deferred the effective date of this guidance for
such nonregistered investment companies until the AICPA clarifies the scope of the Audit Guide.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">In June 2009, the FASB issued SFAS No. 167, “Amendments to FASB Interpretation No. 46(R),” which
will change how a company determines when an entity that is insufficiently capitalized or is not
controlled through voting (or similar rights) should be consolidated. Additional information
regarding this new guidance is provided in Note 1 (“Basis of Presentation”) under the heading
“Accounting Standards Pending Adoption at September 30, 2009” on page 12.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 9 - key:NonperformingAssetsAndPastDueLoansFromContinuingOperationsTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 18pt"><b>9. Nonperforming Assets and Past Due Loans from Continuing Operations</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Impaired loans totaled $2.0 billion at September 30, 2009, compared to $985 million at December
31, 2008, and $777 million at September 30, 2008. Impaired loans had an average balance of $2.0
billion for the third quarter of 2009 and $703 million for the third quarter of 2008.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Our nonperforming assets and past due loans were as follows:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="64%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>September 30,</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>December 31,</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>September 30,</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><i>in millions</i></td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>2008</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>2008</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="13" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Impaired loans
</div></td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>2,013</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">985</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">777</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Other nonaccrual loans
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>277</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">236</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">187</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="13" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Total nonperforming loans
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>2,290</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,221</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">964</td>
<td> </td>
</tr>
<tr valign="top">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Nonperforming loans held for sale
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>304</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">90</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">169</td>
<td> </td>
</tr>
<tr valign="top">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Other real estate owned (“OREO”)
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>187</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">110</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">64</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Allowance for OREO losses
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(40</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(3</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(4</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td colspan="13" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">OREO, net of allowance
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>147</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">107</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">60</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Other nonperforming assets
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>58</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">42</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">43</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="13" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Total nonperforming assets
</div></td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>2,799</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,460</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,236</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="13" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Impaired loans with a specifically allocated allowance
</div></td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>1,787</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">876</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">678</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Specifically allocated allowance for impaired loans
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>390</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">178</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">193</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="13" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Accruing loans past due 90 days or more
</div></td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>375</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">413</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">308</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Accruing loans past due 30 through 89 days
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>1,071</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,230</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">852</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="13" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">At September 30, 2009, we did not have any significant commitments to lend additional funds to
borrowers with loans on nonperforming status.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">We evaluate the collectability of our loans as described in Note 1 (“Summary of Significant
Accounting Policies”) under the heading “Allowance for Loan Losses” on page 79 of KeyCorp’s 2008
Annual Report to Shareholders.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 10 - key:CapitalSecuritiesIssuedByUnconsolidatedSubsidiariesTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 18pt"><b>10. Capital Securities Issued by Unconsolidated Subsidiaries</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">We own the outstanding common stock of business trusts that issued corporation-obligated
mandatorily redeemable preferred capital securities. The trusts used the proceeds from the
issuance of their capital securities and common stock to buy debentures issued by KeyCorp. These
debentures are the trusts’ only assets; the interest payments from the debentures finance the
distributions paid on the capital securities.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The capital securities provide an attractive source of funds: they constitute Tier 1 capital for
regulatory reporting purposes, but have the same tax advantages as debt for federal income tax
purposes. During the first quarter of 2005, the Federal Reserve adopted a rule that allows bank
holding companies to continue to treat capital securities as Tier 1 capital, but imposed stricter
quantitative limits that would have taken effect March 31, 2009. On March 17, 2009, in light of
continued stress in the financial markets, the Federal Reserve delayed the effective date of these
new limits until March 31, 2011. We believe the new rule will not have any material effect on our
financial condition.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">We unconditionally guarantee the following payments or distributions on behalf of the trusts:
</div>
<div style="margin-top: 12pt">
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<td width="3%" nowrap="nowrap" align="left"><font style="font-family: Symbol">¨</font></td>
<td width="1%"> </td>
<td>required distributions on the capital securities;</td>
</tr>
<tr>
<td style="font-size: 12pt"> </td>
</tr>
<tr valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<td width="3%" nowrap="nowrap" align="left"><font style="font-family: Symbol">¨</font></td>
<td width="1%"> </td>
<td>the redemption price when a capital security is redeemed; and</td>
</tr>
<tr>
<td style="font-size: 12pt"> </td>
</tr>
<tr valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<td width="3%" nowrap="nowrap" align="left"><font style="font-family: Symbol">¨</font></td>
<td width="1%"> </td>
<td>the amounts due if a trust is liquidated or terminated.</td>
</tr>
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">On June 3, 2009, we commenced an offer to exchange common shares, $1 par value, for any and all
institutional capital securities issued by the KeyCorp Capital I, KeyCorp Capital II, KeyCorp
Capital III and KeyCorp Capital VII trusts. The institutional exchange offer, which expired on
June 30, 2009, is a component of our comprehensive capital plan, which was submitted to the Federal
Reserve Bank of Cleveland on June 1, 2009, following the May 7, 2009, announcement of the results
of the forward-looking capital assessment, or “stress test,” conducted pursuant to the SCAP
initiated by the U.S. Treasury and the federal banking regulators. As previously disclosed, our
regulators determined that we needed to increase our Tier 1 common equity by $1.8 billion in order
to satisfy the requirements of the SCAP.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">In an effort to further enhance our Tier 1 common equity, on July 8, 2009, we commenced a separate
offer to exchange common shares, $1 par value, for any and all retail capital securities issued by
the KeyCorp Capital V, KeyCorp Capital VI, KeyCorp Capital VIII, KeyCorp Capital IX and KeyCorp
Capital X trusts. On July 22, 2009, we amended our retail exchange offer, which expired on August
4, 2009, to reduce the maximum aggregate liquidation preference amount that would be accepted from
$1.740 billion to $500 million.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">For further information related to these exchange offers and other capital-generating activities,
see Note 11 (“Shareholders’ Equity”), which begins on page 34. Additional information regarding
the SCAP assessment is included in the “Capital” section under the heading “Financial Stability
Plan” on page 99.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">The capital securities, common stock and related debentures are summarized as follows:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="40%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Principal</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Interest Rate</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Maturity</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Capital</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Amount of</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>of Capital</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>of Capital</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Securities,</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Common</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Debentures,</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Securities and</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Securities and</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><i>dollars in millions</i></td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Net of Discount</b></td>
<td> <sup style="font-size: 85%; vertical-align: text-top"><b>(a)</b></sup></td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Stock</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Net of Discount</b></td>
<td> <sup style="font-size: 85%; vertical-align: text-top"><b>(b)</b></sup></td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Debentures</b></td>
<td> <sup style="font-size: 85%; vertical-align: text-top"><b>(c)</b></sup></td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Debentures</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="21" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">September 30, 2009
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">KeyCorp Capital I
</div></td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>156</b></td>
<td> </td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>6</b></td>
<td> </td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>158</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>1.337</b></td>
<td nowrap="nowrap"><b>%</b></td>
<td> </td>
<td> </td>
<td align="right"><b>2028</b></td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">KeyCorp Capital II
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>104</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>4</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>103</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>6.875</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>2029</b></td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">KeyCorp Capital III
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>140</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>4</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>132</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>7.750</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>2029</b></td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">KeyCorp Capital V
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>132</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>4</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>128</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>5.875</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>2033</b></td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">KeyCorp Capital VI
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>71</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>2</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>60</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>6.125</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>2033</b></td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">KeyCorp Capital VII
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>184</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>5</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>182</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>5.700</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>2035</b></td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">KeyCorp Capital VIII
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>202</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>205</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>7.000</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>2066</b></td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">KeyCorp Capital IX
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>331</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>352</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>6.750</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>2066</b></td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">KeyCorp Capital X
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>568</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>598</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>8.000</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>2068</b></td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Union State Capital I
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>20</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>1</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>21</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>9.580</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>2027</b></td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Union State Statutory II
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>20</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>20</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>4.068</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>2031</b></td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Union State Statutory IV
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>10</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>10</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>3.309</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>2034</b></td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="21" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Total
</div></td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>1,938</b></td>
<td> </td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>26</b></td>
<td> </td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>1,969</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>6.589</b></td>
<td nowrap="nowrap"><b>%</b></td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 0px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 0px double #000000"> </td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="21" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">December 31, 2008
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">3,042</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">40</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">3,084</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">6.931</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 0px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 0px double #000000"> </td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="21" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">September 30, 2008
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">2,667</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">40</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">2,709</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">6.820</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 0px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 0px double #000000"> </td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="21" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div style="margin-top: 6pt">
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr>
<td width="3%"></td>
<td width="1%"></td>
<td width="96"></td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">(a)</td>
<td> </td>
<td>The capital securities must be redeemed when the related debentures mature, or earlier if
provided in the governing indenture. Each issue of capital securities carries an interest
rate identical to that of the related debenture. Included in certain capital securities at
September 30, 2009, December 31, 2008, and September 30, 2008, are basis adjustments of $147
million, $459 million and $84 million, respectively, related to fair value hedges. See Note
15 (“Derivatives and Hedging Activities”), which begins on page 40, for an explanation of fair
value hedges.</td>
</tr>
<tr style="font-size: 3pt">
<td> </td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">(b)</td>
<td> </td>
<td>We have the right to redeem our debentures: (i) in whole or in part, on or after July 1,
2008 (for debentures owned by KeyCorp Capital I); March 18, 1999 (for debentures owned by
KeyCorp Capital II); July 16, 1999 (for debentures owned by KeyCorp Capital III); July 21,
2008 (for debentures owned by KeyCorp Capital V); December 15, 2008 (for debentures owned by
KeyCorp Capital VI); June 15, 2010 (for debentures owned by KeyCorp Capital VII); June 15,
2011 (for debentures owned by KeyCorp Capital VIII); December 15, 2011 (for debentures owned
by KeyCorp Capital IX); March 15, 2013 (for debentures owned by KeyCorp Capital X); February
1, 2007 (for debentures owned by Union State Capital I); July 31, 2006 (for debentures owned
by Union State Statutory II); and April 7, 2009 (for debentures owned by Union State Statutory
IV); and (ii) in whole at any time within 90 days after and during the continuation of a “tax
event,” an “investment company event” or a “capital treatment event” (as defined in the
applicable indenture). If the debentures purchased by KeyCorp Capital I, KeyCorp Capital V,
KeyCorp Capital VI, KeyCorp Capital VII, KeyCorp Capital VIII, KeyCorp Capital IX, KeyCorp
Capital X or Union State Statutory IV are redeemed before they mature, the redemption price
will be the principal amount, plus any accrued but unpaid interest. If the debentures
purchased by KeyCorp Capital II or KeyCorp Capital III are redeemed before they mature, the
redemption price will be the greater of: (a) the principal amount, plus any accrued but unpaid
interest or (b) the sum of the present values of principal and interest payments discounted at
the Treasury Rate (as defined in the applicable indenture), plus 20 basis points (25 basis
points for KeyCorp Capital III), plus any accrued but unpaid interest. If the debentures
purchased by Union State Capital I are redeemed before they mature, the redemption price will
be 104.31% of the principal amount, plus any accrued but unpaid interest. If the debentures
purchased by Union State Statutory II are redeemed before they mature, the redemption price
will be 104.50% of the principal amount, plus any accrued but unpaid interest. When
debentures are redeemed in response to tax or capital treatment events, the redemption price
generally is slightly more favorable to us. Included in the principal amount of debentures at
September 30, 2009, December 31, 2008, and September 30, 2008, are adjustments related to
hedging with financial instruments totaling $152 million, $461 million and $86 million,
respectively.</td>
</tr>
<tr style="font-size: 3pt">
<td> </td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">(c)</td>
<td> </td>
<td>The interest rates for KeyCorp Capital II, KeyCorp Capital III, KeyCorp Capital V, KeyCorp
Capital VI, KeyCorp Capital VII, KeyCorp Capital VIII, KeyCorp Capital IX, KeyCorp Capital X
and Union State Capital I are fixed. KeyCorp Capital I has a floating interest rate equal to
three-month LIBOR plus 74 basis points that reprices quarterly. Union State Statutory II has
a floating interest rate equal to three-month LIBOR plus 358 basis points that reprices
quarterly. Union State Statutory IV has a floating interest rate equal to three-month LIBOR
plus 280 basis points that reprices quarterly. The rates shown as the totals at September 30,
2009, December 31, 2008, and September 30, 2008, are weighted-average rates.</td>
</tr>
</table>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
</div>
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<!-- Begin Block Tagged Note 11 - us-gaap:StockholdersEquityNoteDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 18pt"><b>11. Shareholders’ Equity</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Supervisory Capital Assessment Program and Our Capital-Generating Activities</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">To implement the CAP, the Federal Reserve, the Federal Reserve Banks, the FDIC and the OCC
commenced a review of the capital of the nineteen largest U.S. banking institutions. This review,
referred to as the SCAP, involved a forward-looking capital assessment, or “stress test,” of all
domestic bank holding companies with risk-weighted assets of more than $100 billion at December 31,
2008, of which we were one. As announced on May 7, 2009, under the SCAP assessment, our regulators
determined that we needed to generate $1.8 billion in additional Tier 1 common equity or contingent
common equity (i.e., mandatorily convertible preferred shares). Information regarding the CAP and
our final SCAP assessment is included in the “Capital” section under the heading “Financial
Stability Plan” on page 93 of KeyCorp’s Form 10-Q Report for the quarterly period ended June 30,
2009.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Pursuant to the requirements of the SCAP assessment, we submitted a comprehensive capital plan to
the Federal Reserve Bank of Cleveland on June 1, 2009, describing our action plan for raising the
required amount of additional Tier 1 common equity from nongovernmental sources. In conjunction
with our action plan, during the second quarter of 2009, we completed various transactions to
generate the additional capital, as discussed below.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><b><i>Common stock offering. </i></b>On May 11, 2009, we launched a public “at-the-market” offering of up to
$750 million in aggregate gross proceeds of common shares, $1 par value. We subsequently increased
the aggregate gross sales price of the common shares to be issued to $1.0 billion on June 2, 2009,
and on the same date, announced that we had successfully issued all $1.0 billion in additional
common shares. In conjunction with the common stock offering, we issued 205,438,975 common shares
at an average price of $4.87 per share.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><b><i>Series A Preferred Stock public exchange offer. </i></b>On June 3, 2009, we launched an offer to exchange
common shares, $1 par value, for any and all outstanding shares of Series A Preferred Stock. In
connection with the Series A Preferred Stock exchange offer, which expired on June 30, 2009, we
issued 29,232,025 common shares, or 3.67% of the issued and outstanding common shares at June 30,
2009, for 2,130,461 shares of the outstanding Series A Preferred Stock, representing $213 million
aggregate liquidation preference. The exchange ratio for this exchange offer was 13.7210 common
shares per share of Series A Preferred Stock.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><b><i>Institutional capital securities exchange offer. </i></b>On June 3, 2009, we launched a separate offer to
exchange common shares, $1 par value, for any and all institutional capital securities issued by
the KeyCorp Capital I, KeyCorp Capital II, KeyCorp Capital III and KeyCorp Capital VII trusts. In
connection with the institutional capital securities exchange offer, which expired on June 30,
2009, we issued 46,338,101 common shares, or 5.81% of the issued and outstanding common shares at
June 30, 2009, for $294 million aggregate liquidation preference of the outstanding capital
securities in the aforementioned trusts. The exchange ratios for this exchange offer, which ranged
from 132.5732 to 160.9818 common shares per $1,000 liquidation preference of capital securities,
were based on the timing of each investor’s tender offer and the trust from which the capital
securities were tendered.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">In the aggregate, the Series A Preferred Stock and the institutional capital securities exchange
offers generated $544 million of additional Tier 1 common equity. Both exchanges were conducted in
reliance upon the exemption set forth in Section 3(a)(9) of the Securities Act of 1933, as amended.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">We have complied with the requirements of the SCAP assessment, having generated total Tier 1 common
equity in excess of $1.8 billion. We raised: (i) $1.5 billion of capital through the three
transactions discussed above, (ii) $149 million of capital through other exchanges of Series A
Preferred Stock, (iii) $125 million of capital through the sale of certain securities, and (iv)
approximately $70 million of capital through the reduction of our dividend and interest obligations
on the exchanged securities through the SCAP assessment period, which ends on December 31, 2010.
Successful completion of our capital
transactions has strengthened our capital framework, having improved KeyCorp’s Tier 1 common equity
ratio, which will benefit us should economic conditions worsen or any recovery of economic
conditions be delayed.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">In an effort to further enhance our Tier 1 common equity, on July 8, 2009, we commenced a
separate, SEC-registered offer to exchange common shares, $1 par value, for any and all retail
capital securities issued by the KeyCorp Capital V, KeyCorp Capital VI, KeyCorp Capital VIII,
KeyCorp Capital IX and KeyCorp Capital X trusts. As of July 21, 2009, holders of approximately
$534 million aggregate liquidation preference of capital securities had indicated that they would
be tendering securities in the retail capital securities exchange offer, subject to applicable
withdrawal rights. We announced on July 22, 2009, that we would limit the total aggregate
liquidation preference of capital securities that we will accept in this exchange offer to $500
million. In connection with this exchange offer, which expired on August 4, 2009, we issued
81,278,214 common shares, or 9.25% of the issued and outstanding common shares at August 4, 2009.
The exchange ratios for this exchange offer, which ranged from 3.8289 to 4.1518 common shares per
$25 liquidation preference of capital securities, were based on the timing of each investor’s
tender offer and the trust from which the capital securities were tendered. The retail capital
securities exchange offer generated approximately $505 million of additional Tier 1 common equity.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Preferred Stock Private Exchanges</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">During April and May 2009, we entered into agreements with certain institutional shareholders who
had contacted us to exchange Series A Preferred Stock held by the institutional shareholders for
common shares, $1 par value. In the aggregate, we exchanged 17,369,926 common shares, or 3.25% of
the issued and outstanding common shares at May 18, 2009, the date on which the last of the
exchange transactions settled, for 1,539,700 shares of the Series A Preferred Stock. The exchanges
were conducted in reliance upon the exemption set forth in Section 3(a)(9) of the Securities Act of
1933, as amended, for securities exchanged by the issuer and an existing security holder where no
commission or other remuneration is paid or given directly or indirectly by the issuer for
soliciting such exchange. We utilized treasury shares to complete the transactions.
</div>
</div>
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<!-- Begin Block Tagged Note 12 - us-gaap:PensionAndOtherPostretirementBenefitsDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 18pt"><b>12. Employee Benefits</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Pension Plans</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The components of net pension cost for all funded and unfunded plans are as follows:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Three months ended</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Nine months ended</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>September 30,</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>September 30,</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><i>in millions</i></td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>2008</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>2008</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Service cost of benefits earned
</div></td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>12</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">13</td>
<td> </td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>37</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">39</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest cost on projected benefit obligation
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>14</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">15</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>43</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">47</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Expected return on plan assets
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(17</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(23</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(49</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(70</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Amortization of prior service cost
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Amortization of losses
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>10</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>31</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">10</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Net pension cost
</div></td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>19</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">9</td>
<td> </td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>62</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">27</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Other Postretirement Benefit Plans</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">We sponsor a contributory postretirement healthcare plan that covers substantially all active and
retired employees hired before 2001 who meet certain eligibility criteria. Retirees’ contributions
are adjusted annually to reflect certain cost-sharing provisions and benefit limitations. We also
sponsor life insurance plans covering certain grandfathered employees. These plans are principally
noncontributory. Separate Voluntary Employee Beneficiary Association trusts are used to fund the
healthcare plan and one of the life insurance plans.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">The components of net postretirement benefit cost for all funded and unfunded plans are as follows:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Three months ended</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Nine months ended</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>September 30,</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>September 30,</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><i>in millions</i></td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>2008</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>2008</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Service cost of benefits earned
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest cost on accumulated postretirement benefit obligation
</div></td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>1</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1</td>
<td> </td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>3</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Expected return on plan assets
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(1</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(2</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(2</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(4</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Amortization of unrecognized:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Prior service benefit
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(1</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Cumulative net gain
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Net postretirement benefit income
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(1</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(2</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 13 - us-gaap:IncomeTaxDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 18pt"><b>13. Income Taxes</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Lease Financing Transactions</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">During the second quarter of 2009, we resolved all outstanding federal income tax issues with the
IRS for tax years 1997-2003, including all outstanding LILO and SILO tax issues for all open tax
years through the execution of closing agreements in the first and second quarters of 2009. In
conjunction with the IRS, we are currently completing the final tax calculations for the tax years
1997-2003, and the IRS is continuing its audits of our 2004-2006 tax years. We have deposited $2.0
billion with the IRS to cover the anticipated amount of taxes and associated interest cost due to
the IRS for all tax years affected by the LILO/SILO tax settlement.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">During 2009, we will amend our state tax returns to reflect the impact of the settlement on prior
years’ state tax liabilities. While the settlement with the IRS provides a waiver of federal tax
penalties, we anticipate that certain statutory penalties under state tax laws will be imposed on
us. Although we intend to vigorously defend our position against the imposition of any such
penalties, as of September 30, 2009, we have accrued a total of $32 million for potential penalties
in accordance with current accounting guidance.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">In accordance with the applicable accounting guidance related to a change or projected change in
the timing of cash flows relating to income taxes generated by a leveraged lease transaction,
throughout 2009, we have updated our assessment of the timing of the tax payments associated with
the LILO/SILO settlement. As a result, we recognized a $2 million ($1 million after tax) increase
to earnings during the third quarter of 2009, a $4 million ($2 million after tax) increase during
the second quarter of 2009 and a $5 million ($3 million after tax) increase during the first
quarter of 2009.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Deferred Tax Asset</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">As of September 30, 2009, we had a net deferred tax asset of $476 million included in “accrued
income and other assets” on the balance sheet; previously we had been in a net deferred tax
liability position. To determine the amount of deferred tax assets that are more likely than not
to be realized, and therefore recorded, we conduct a quarterly assessment of all available
evidence. This evidence includes, but is not limited to, taxable income in prior periods,
projected future taxable income, and projected future reversals of deferred tax items. Based on
these criteria, and in particular our projections for future taxable income, we currently believe
that it is more likely than not that we will realize the net deferred tax asset in future periods.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Unrecognized Tax Benefits</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">As permitted under the applicable accounting guidance for income taxes, it is our policy to
recognize interest and penalties related to unrecognized tax benefits in income tax expense.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 14 - key:ContingentLiabilitiesAndGuaranteesTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 18pt"><b>14. Contingent Liabilities and Guarantees</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Legal Proceedings</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><b><i>Tax disputes. </i></b>The information pertaining to lease financing transactions presented in Note 13
(“Income Taxes”) is incorporated herein by reference.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><b><i>Taylor litigation. </i></b>On August 11, 2008, a purported class action case was filed against KeyCorp,
its directors and certain employees, captioned <i>Taylor v. KeyCorp et al., </i>in the United States
District Court for the Northern District of Ohio. On September 16, 2008, a second and related case
was filed in the same district court, captioned <i>Wildes v. KeyCorp et al</i>. The plaintiffs in these
cases seek to represent a class of all participants in our 401(k) Savings Plan and allege that the
defendants in the lawsuit breached fiduciary duties owed to them under the ERISA. On January 7,
2009, the Court consolidated the <i>Taylor </i>and <i>Wildes </i>lawsuits into a single action. Plaintiffs have
since filed their consolidated complaint, which continues to name certain employees as defendants
but no longer names any outside directors. We strongly disagree with the allegations contained in
the complaints and the consolidated complaint, and intend to vigorously defend against them.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><b><i>Madoff-related claims. </i></b>In December 2008, Austin, an investment subsidiary that specializes in
managing hedge fund investments for its institutional customer base, determined that its funds had
suffered investment losses of up to approximately $186 million resulting from the crimes
perpetrated by Bernard L. Madoff and entities that he controls. The investment losses borne by
Austin’s clients stem from investments that Austin made in certain Madoff-advised “hedge” funds.
Several lawsuits, including putative class actions and direct actions, and one arbitration
proceeding were filed against Austin seeking to recover losses incurred as a result of Madoff’s
crimes. The lawsuits and arbitration proceeding allege various claims, including negligence,
fraud, breach of fiduciary duties, and violations of federal securities laws and the ERISA. In the
event we were to incur any liability for this matter, we believe such liability would be covered
under the terms and conditions of our insurance policy, subject to a $25 million self-insurance
deductible and usual policy exceptions.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">In April 2009, we made the decision to wind down Austin’s operations and have determined that the
related exit costs will not be material. Information regarding the Austin discontinued operations
is included in Note 3 (“Acquisition and Divestitures”), which begins on page 14.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><b><i>Other litigation</i></b><i>. </i>In the ordinary course of business, we are subject to other legal actions that
involve claims for substantial monetary relief. Based on information presently known to us, we do
not believe there is any legal action to which we are a party, or involving any of our properties
that, individually or in the aggregate, would reasonably be expected to have a material adverse
effect on our financial condition.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Guarantees</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">We are a guarantor in various agreements with third parties. The following table shows the types
of guarantees that we had outstanding at September 30, 2009. Information pertaining to the basis
for determining the liabilities recorded in connection with these guarantees is included in Note 1
(“Summary of Significant Accounting Policies”) under the heading “Guarantees” on page 82 of
KeyCorp’s 2008 Annual Report to Shareholders.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Maximum Potential</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"> </td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><b>September 30, 2009</b></td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Undiscounted</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Liability</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><i>in millions</i></td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Future Payments</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Recorded</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="9" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Financial guarantees:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Standby letters of credit
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">12,732</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">91</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Recourse agreement with FNMA
</div></td>
<td> </td>
<td> </td>
<td align="right">716</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">6</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Return guarantee agreement with LIHTC investors
</div></td>
<td> </td>
<td> </td>
<td align="right">213</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">63</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Written interest rate caps <sup style="font-size: 85%; vertical-align: text-top"> (a) </sup>
</div></td>
<td> </td>
<td> </td>
<td align="right">168</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">27</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Default guarantees
</div></td>
<td> </td>
<td> </td>
<td align="right">55</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="9" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Total
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">13,884</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">188</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="9" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div style="margin-top: 6pt">
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr>
<td width="3%"></td>
<td width="1%"></td>
<td width="96"></td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">(a)</td>
<td> </td>
<td>As of September 30, 2009, the weighted-average interest rate on written interest
rate caps was .5%, and the weighted-average strike rate was 4.5%. Maximum potential
undiscounted future payments were calculated assuming a 10% interest rate.</td>
</tr>
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">We determine the payment/performance risk associated with each type of guarantee described
below based on the probability that we could be required to make the maximum potential undiscounted
future payments shown in the preceding table. We use a scale of low (0-30% probability of
payment), moderate (31-70% probability of payment) or high (71-100% probability of payment) to
assess the payment/performance risk, and have determined that the payment/performance risk
associated with each type of guarantee outstanding at September 30, 2009, is low.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><b><i>Standby letters of credit. </i></b>KeyBank issues standby letters of credit to address clients’ financing
needs. These instruments obligate us to pay a specified third party when a client fails to repay
an outstanding loan or debt instrument, or fails to perform some contractual nonfinancial
obligation. Any amounts drawn under standby letters of credit are treated as loans to the client;
they bear interest (generally at variable rates) and pose the same credit risk to us as a loan. At
September 30, 2009, our standby letters of credit had a remaining weighted-average life of 1.8
years, with remaining actual lives ranging from less than one year to as many as nine years.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><b><i>Recourse agreement with FNMA. </i></b>We participate as a lender in the FNMA Delegated Underwriting and
Servicing program. As a condition to FNMA’s delegation of responsibility for originating,
underwriting and servicing mortgages, we have agreed to assume a limited portion of the risk of
loss during the remaining term on each commercial mortgage loan that we sell to FNMA. Accordingly,
we maintain a reserve for such potential losses in an amount that we estimate to approximate the
fair value of our liability. At September 30, 2009, the outstanding commercial mortgage loans in
this program had a weighted-average remaining term of 6.6 years, and the unpaid principal balance
outstanding of loans sold by us as a participant in this program was $2.3 billion. As shown in the
above table, the maximum potential amount of undiscounted future payments that we could be required
to make under this program is equal to approximately one-third of the principal balance of loans
outstanding at September 30, 2009. If we are required to make a payment, we would have an interest
in the collateral underlying the related commercial mortgage loan.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><b><i>Return guarantee agreement with LIHTC investors. </i></b>KAHC, a subsidiary of KeyBank, offered limited
partnership interests to qualified investors. Partnerships formed by KAHC invested in low-income
residential rental properties that qualify for federal low income housing tax credits under Section
42 of the Internal Revenue Code. In certain partnerships, investors paid a fee to KAHC for a
guaranteed return that is based on the financial performance of the property and the property’s
confirmed LIHTC status throughout a fifteen-year compliance period. If KAHC defaults on its
obligation to provide the guaranteed return, KeyBank is obligated to make any necessary payments to
investors. These guarantees have expiration dates that extend through 2019, but there have been no
new partnerships under this program since October 2003. Additional information regarding these
partnerships is included in Note 8 (“Variable Interest Entities”), which begins on page 29.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">No recourse or collateral is available to offset our guarantee obligation other than the underlying
income stream from the properties and the residual value of the operating partnership interests.
Any guaranteed returns that are not met through distribution of tax credits and deductions
associated with the specific properties from the partnerships remain our obligation.
</div>
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<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">As shown in the table on page 38, KAHC maintained a reserve in the amount of $63 million at
September 30, 2009, which we believe will be sufficient to cover estimated future obligations under
the guarantees. The maximum exposure to loss reflected in the table represents undiscounted future
payments due to investors for the return on and of their investments.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><b><i>Written interest rate caps. </i></b>In the ordinary course of business, we “write” interest rate caps for
commercial loan clients that have variable rate loans with us and wish to limit their exposure to
interest rate increases. At September 30, 2009, outstanding caps had a weighted-average life of
1.7 years.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">We are obligated to pay the client if the applicable benchmark interest rate exceeds a specified
level (known as the “strike rate”). These instruments are accounted for as derivatives. We
typically mitigate our potential future payments by entering into offsetting positions with third
parties.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><b><i>Default guarantees. </i></b>Some lines of business participate in guarantees that obligate us to perform
if the debtor fails to satisfy all of its payment obligations to third parties. We generally
undertake these guarantees in instances where the risk profile of the debtor should provide an
investment return or to support our underlying investment. The terms of these default guarantees
range from less than one year to as many as twelve years, while some default guarantees do not have
a contractual end date. Although no collateral is held, we would receive a pro rata share should
the third party collect some or all of the amounts due from the debtor.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Other Off-Balance Sheet Risk</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Other off-balance sheet risk stems from financial instruments that do not meet the definition of a
guarantee as specified in the applicable accounting guidance for guarantees, and from other
relationships.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><b><i>Liquidity facilities that support asset-backed commercial paper conduits. </i></b>We provide liquidity
facilities to several unconsolidated third-party commercial paper conduits. These facilities
obligate us to provide funding if there is a credit market disruption or there are other factors
that would preclude the issuance of commercial paper by the conduits. The liquidity facilities,
all of which expire by June 10, 2010, obligate us to provide aggregate funding of up to $651
million, with individual facilities ranging from $37 million to $100 million. The aggregate amount
available to be drawn is based on the amount of current commitments to borrowers and totaled $539
million at September 30, 2009. We periodically evaluate our commitments to provide liquidity.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><b><i>Indemnifications provided in the ordinary course of business. </i></b>We provide certain indemnifications,
primarily through representations and warranties in contracts that are entered into in the ordinary
course of business in connection with loan sales and other ongoing activities, as well as in
connection with purchases and sales of businesses. We maintain reserves, when appropriate, with
respect to liability that reasonably could arise in connection with these indemnities.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><b><i>Intercompany guarantees. </i></b>KeyCorp and certain of our affiliates are parties to various guarantees
that facilitate the ongoing business activities of other of our affiliates. These business
activities encompass debt issuance, certain lease and insurance obligations, the purchase or
issuance of investments and securities, and certain leasing transactions involving clients.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><b><i>Heartland Payment Systems matter. </i></b>Under an agreement between KeyBank and Heartland, Heartland
utilizes KeyBank’s membership in the Visa and MasterCard networks to register as an Independent
Sales Organization for Visa and a Member Service Provider with MasterCard to provide merchant
payment processing services for Visa and MasterCard transactions. On January 20, 2009, Heartland
publicly announced its discovery of an alleged criminal breach of its credit card payment
processing systems environment (the “Intrusion”) that reportedly occurred during 2008 and is
alleged to have involved the malicious collection of in-transit, unencrypted payment card data that
was being processed by Heartland.
</div>
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<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">In Heartland’s 2008 Form 10-K filed with the SEC on March 16, 2009, Heartland reported that it
expects the major card brands, including Visa and MasterCard, to assert claims seeking to impose
fines, penalties, and/or other assessments against Heartland and/or certain card brand members,
such as KeyBank, as a result of the alleged potential breach of the respective card brand rules and
regulations, and the alleged criminal breach of its credit card payment processing systems
environment. Heartland also indicated that it is likely that the overall costs associated with the
alleged breach will be material to it, and that it may need to seek financing in order to pay such
costs. In Heartland’s Form 8-K filed with the SEC on August 4, 2009, and in its Form 10-Q Report
for the quarterly period ended June 30, 2009, filed on August 7, 2009, Heartland reported that it
expensed a total of $19.4 million and $32.0 million for the three- and six-month periods ended June
30, 2009, respectively, related to the alleged breach. Heartland also indicated that $22.1 million
of the year-to-date charges relate to fines imposed by the card brands in April 2009 against
Heartland and its sponsor banks, and a settlement offer made by Heartland to resolve certain of the
claims asserted against it. Heartland’s Form 8-K also reported the accrual of a $14.4 million
reserve in connection with the settlement offer.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Subsequently, in Heartland’s Form 8-K filed with the SEC on November 3, 2009, Heartland reported
that it recorded charges of $35.6 million and $67.5 million for the three- and nine-month periods
ended September 30, 2009, respectively, related to the Intrusion. Heartland also indicated that
$53.2 million of the year-to-date charges relate to: (i) assessments imposed in April 2009 by
MasterCard and Visa against Heartland and its sponsor banks, (ii) settlement offers made by
Heartland to certain card brands in an attempt to resolve certain claims asserted against its
sponsor banks, and (iii) settlements deemed likely to be agreed upon in the near term with certain
claimants. Heartland’s Form 8-K also reported the accrual of a $45.2 million reserve at September
30, 2009, in connection with the settlement offers. Heartland further reported that the ultimate
cost of resolving the claims that are the subject of the settlement offers may substantially exceed
the amount that Heartland has accrued. Furthermore, even if the claims that are the subject of the
settlement offers are resolved, Heartland indicated that a significant portion of the claims
asserted against Heartland would still remain unresolved. Heartland continues to report that it is
likely that the overall costs associated with the alleged breach will be material to it, and that
they could have a material adverse effect on the results of its operations and financial condition.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">KeyBank has received letters from both Visa and MasterCard assessing fines, penalties or
assessments related to the Intrusion. KeyBank is in the process of pursuing appeals of such fines,
penalties or assessments. Visa and MasterCard (as well as Heartland and KeyBank) are each still
investigating the matter, and they may revise their respective assessments. Under its agreement
with Heartland, KeyBank has certain rights of indemnification from Heartland for costs assessed
against it by Visa and MasterCard, and other associated costs, and KeyBank has notified Heartland
of its indemnification rights. In the event that Heartland is unable to fulfill its
indemnification obligations to KeyBank, the charges (net of any indemnification) could be
significant, although it is not possible to quantify at this time. Accordingly, under applicable
accounting rules, we have not established any reserve. For further information on Heartland and
the Intrusion, see Heartland’s 2008 Form 10-K, Heartland’s Form 10-Q filed with the SEC on May 11,
2009, Heartland’s Form 8-K filed with the SEC on August 4, 2009, Heartland’s Form 10-Q filed with
the SEC on August 7, 2009, and Heartland’s Form 8-K filed with the SEC on November 3, 2009.
</div>
</div>
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<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 18pt"><b>15. Derivatives and Hedging Activities</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">We, mainly through our subsidiary bank, KeyBank, are party to various derivative instruments.
Derivative instruments are contracts between two or more parties that have a notional amount and
underlying variable, require no net investment and allow for the net settlement of positions. The
notional amount serves as the basis for the payment provision of the contract and takes the form of
units, such as shares or dollars. The underlying variable represents a specified interest rate,
index or other component. The interaction between the notional amount and the underlying variable
determines the number of units to be exchanged between the parties and influences the market value
of the derivative contract.
</div>
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</div>
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<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">The primary derivatives that we use are interest rate swaps, caps, floors and futures, foreign
exchange contracts, energy derivatives, credit derivatives and equity derivatives. Generally,
these instruments help us manage exposure to interest rate risk, mitigate the credit risk inherent
in the loan portfolio, hedge against changes in foreign currency exchange rates, and meet client
financing and hedging needs. Interest rate risk represents the possibility that economic value or
net interest income will be adversely affected by fluctuations in interest rates. Credit risk is
defined as the risk of loss arising from an obligor’s inability or failure to meet contractual
payment or performance terms.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Derivative assets and liabilities are recorded at fair value on the balance sheet, after taking
into account the effects of master netting agreements. These master netting agreements allow us to
settle all derivative contracts held with a single counterparty on a net basis, and to offset net
derivative positions with related cash collateral, where applicable. As a result, we could have
derivative contracts with negative fair values included in derivative assets on the balance sheet
and contracts with positive fair values included in derivative liabilities.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">At September 30, 2009, after taking into account the effects of bilateral collateral and master
netting agreements, we had $270 million of derivative assets and $100 million of derivative
liabilities that relate to contracts entered into for hedging purposes. As of the same date, after
taking into account the effects of bilateral collateral and master netting agreements, and a
reserve for potential future losses, we had derivative assets of $1.0 billion and derivative
liabilities of $1.1 billion that were not designated as hedging instruments.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Interest Rate Risk Management</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Fluctuations in net interest income and the economic value of equity may result from changes in
interest rates, and differences in the repricing and maturity characteristics of interest-earning
assets and interest-bearing liabilities. To minimize the volatility of net interest income and the
economic value of equity, we manage exposure to interest rate risk in accordance with policy limits
established by the Risk Management Committee of the Board of Directors. The primary derivative
instruments used to manage interest rate risk are interest rate swaps, which modify the interest
rate characteristics of certain assets and liabilities. These instruments are used to convert the
contractual interest rate index of agreed-upon amounts of assets and liabilities (i.e., notional
amounts) to another interest rate index.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">We have designated certain “receive fixed/pay variable” interest rate swaps as fair value hedges,
primarily to modify our exposure to interest rate risk. These contracts convert certain fixed-rate
long-term debt into variable-rate obligations. As a result, we receive fixed-rate interest
payments in exchange for making variable-rate payments over the lives of the contracts without
exchanging the underlying notional amounts.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Additionally, we have designated certain “receive fixed/pay variable” interest rate swaps as cash
flow hedges. These contracts effectively convert certain floating-rate loans into fixed-rate loans
to reduce the potential adverse impact from interest rate decreases on future interest income.
These contracts allow us to receive fixed-rate interest payments in exchange for making
variable-rate payments over the lives of the contracts without exchanging the underlying notional
amounts. Similarly, we have designated certain “pay fixed/receive variable” interest rate swaps as
cash flow hedges to convert certain floating-rate debt into fixed-rate debt.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">We also use interest rate swaps to hedge the floating-rate debt that funds fixed-rate leases
entered into by our Equipment Finance line of business. These swaps are designated as cash flow
hedges to mitigate the interest rate mismatch between the fixed-rate lease cash flows and the
floating-rate payments on the debt.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">We have used “pay fixed/receive variable” interest rate swaps as cash flow hedges to manage the
interest rate risk associated with anticipated sales of certain commercial real estate loans.
These swaps protected against a possible short-term decline in the value of the loans that could
result from changes in interest rates between the time they were originated and the time they were
sold. During the first quarter of 2009, these hedges were terminated. Therefore, we did not have
any of these hedges outstanding at September 30, 2009.
</div>
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<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Foreign Currency Exchange Risk Management</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The derivatives used for managing foreign currency exchange risk are cross currency swaps. We have
several outstanding issues of medium-term notes that are denominated in a foreign currency. The
notes are subject to translation risk, which represents the possibility that changes in the fair
value of the foreign-denominated debt will occur based on movement of the underlying foreign
currency spot rate. It is our practice to hedge against potential fair value changes caused by
changes in foreign currency exchange rates and interest rates. The hedge converts the notes to a
variable-rate functional currency-denominated debt, which is designated as a fair value hedge of
foreign currency exchange risk.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Credit Risk Management</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Like other financial services institutions, we originate loans and extend credit, both of which
expose us to credit risk. We actively manage our overall loan portfolio and the associated credit
risk in a manner consistent with asset quality objectives. This process entails the use of credit
derivatives <font style="font-family: Symbol">¾</font> primarily credit default swaps <font style="font-family: Symbol">¾</font> to mitigate our credit risk. Credit
default swaps enable us to transfer a portion of the credit risk associated with a particular
extension of credit to a third party, and to manage portfolio concentration and correlation risks.
Occasionally, we also provide credit protection to other lenders through the sale of credit default
swaps. In most instances, this objective is accomplished through the use of an investment-grade
diversified dealer-traded basket of credit default swaps. These transactions may generate fee
income, and diversify and reduce overall portfolio credit risk volatility. Although we use these
instruments for risk management purposes, they are not treated as hedging instruments as defined by
the applicable accounting guidance for derivatives and hedging.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Trading Portfolio</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Our trading portfolio consists of the following instruments:
</div>
<div style="margin-top: 12pt">
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<td width="3%" nowrap="nowrap" align="left"><font style="font-family: Symbol">¨</font></td>
<td width="1%"> </td>
<td>interest rate swap, cap, floor and futures contracts entered into generally to accommodate
the needs of commercial loan clients;</td>
</tr>
<tr>
<td style="font-size: 12pt"> </td>
</tr>
<tr valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<td width="3%" nowrap="nowrap" align="left"><font style="font-family: Symbol">¨</font></td>
<td width="1%"> </td>
<td>energy swap and options contracts entered into to accommodate the needs of clients;</td>
</tr>
<tr>
<td style="font-size: 12pt"> </td>
</tr>
<tr valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<td width="3%" nowrap="nowrap" align="left"><font style="font-family: Symbol">¨</font></td>
<td width="1%"> </td>
<td>foreign exchange forward contracts entered into to accommodate the needs of clients;</td>
</tr>
<tr>
<td style="font-size: 12pt"> </td>
</tr>
<tr valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<td width="3%" nowrap="nowrap" align="left"><font style="font-family: Symbol">¨</font></td>
<td width="1%"> </td>
<td>positions with third parties that are intended to offset or mitigate the interest rate or
market risk related to client positions discussed above; and</td>
</tr>
<tr>
<td style="font-size: 12pt"> </td>
</tr>
<tr valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<td width="3%" nowrap="nowrap" align="left"><font style="font-family: Symbol">¨</font></td>
<td width="1%"> </td>
<td>interest rate swaps, foreign exchange forward contracts and credit default swaps used for
proprietary trading purposes.</td>
</tr>
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">We do not apply hedge accounting to any of these contracts.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Fair Values, Volume of Activity and Gain/Loss Information Related to Derivative Instruments</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The following table summarizes the fair values of our derivative instruments on a gross basis as of
September 30, 2009, and June 30, 2009, and the volume of our derivative transaction activity during
the third quarter of 2009. The volume of activity is represented by the change in the notional
amounts of our gross derivatives by type from June 30, 2009, to September 30, 2009. The notional
amounts are not affected by bilateral collateral and master netting agreements. Our derivative
instruments are recorded in “derivative assets” or “derivative liabilities” on the balance sheet,
as indicated in the following table.
</div>
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<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="28%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="10" style="border-bottom: 1px solid #000000"><b>September 30, 2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="10" style="border-bottom: 1px solid #000000"><b>June 30, 2009</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>Fair Value</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>Fair Value</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Notional</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Derivative</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Derivative</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Notional</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Derivative</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Derivative</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><i>in millions</i></td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Amount</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Assets</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Liabilities</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Amount</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Assets</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Liabilities</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="25" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td nowrap="nowrap">
<div style="margin-left:15px; text-indent:-15px">Derivatives designated as hedging instruments:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Interest rate
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">20,443</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">600</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">8</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">23,234</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">561</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">14</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Foreign exchange
</div></td>
<td> </td>
<td> </td>
<td align="right">2,664</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">87</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">233</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,550</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">68</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">324</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="25" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Total
</div></td>
<td> </td>
<td> </td>
<td align="right">23,107</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">687</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">241</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">25,784</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">629</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">338</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td nowrap="nowrap">
<div style="margin-left:15px; text-indent:-15px">Derivatives not designated as hedging instruments:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Interest rate
</div></td>
<td> </td>
<td> </td>
<td align="right">70,985</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,749</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,635</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">78,047</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,664</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,523</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Foreign exchange
</div></td>
<td> </td>
<td> </td>
<td align="right">6,241</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">229</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">201</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">7,317</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">222</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">193</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Energy and commodity
</div></td>
<td> </td>
<td> </td>
<td align="right">2,175</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">445</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">471</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,155</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">533</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">562</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Credit
</div></td>
<td> </td>
<td> </td>
<td align="right">4,847</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">62</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">54</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">7,012</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">94</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">99</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="25" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Total
</div></td>
<td> </td>
<td> </td>
<td align="right">84,248</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,485</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,361</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">94,531</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,513</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,377</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="25" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Netting adjustments <sup style="font-size: 85%; vertical-align: text-top">(a)</sup>
</div></td>
<td> </td>
<td> </td>
<td align="right">N/A</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,887</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,417</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">N/A</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,960</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(2,187</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td colspan="25" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Total derivatives
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">107,355</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,285</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,185</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">120,315</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,182</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">528</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="25" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div style="margin-top: 6pt">
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr>
<td width="3%"></td>
<td width="1%"></td>
<td width="96"></td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">(a)</td>
<td> </td>
<td>Netting adjustments represent the amounts recorded to convert our derivative assets and
liabilities from a gross basis to a net basis in accordance with the applicable accounting
guidance related to the offsetting of certain derivative contracts on the balance sheet. The
net basis takes into account the impact of master netting agreements that allow us to settle
all derivative contracts with a single counterparty on a net basis and to offset the net
derivative position with the related cash collateral.</td>
</tr>
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><b><i>Fair value hedges. </i></b>These hedging instruments are recorded at fair value and included in
“derivative assets” or “derivative liabilities” on the balance sheet. The effective portion of a
change in the fair value of a hedging instrument designated as a fair value hedge is recorded in
earnings at the same time as a change in fair value of the hedged item, resulting in no effect on
net income. The ineffective portion of a change in the fair value of such a hedging instrument is
recognized in “other income” on the income statement with no corresponding offset. During the
nine-month period ended September 30, 2009, we did not exclude any portion of our hedging
instruments from the assessment of hedge effectiveness. While some ineffectiveness is present in
our hedging relationships, all of our fair value hedges remained “highly effective” during the
first nine months of 2009.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The following table summarizes the pre-tax net gains (losses) on our fair value hedges during the
nine-month period ended September 30, 2009, and where they are recorded on the income statement.
</div>
<div align="center">
<table style="font-size: 8pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="20%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="13%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 7pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Net Gains</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Net Gains</b></td>
<td> </td>
</tr>
<tr style="font-size: 7pt" valign="bottom">
<td nowrap="nowrap" align="left"><b>Nine months ended September 30, 2009</b></td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="3"><b>Income Statement Location</b></td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>(Losses)</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="3"><b>Income Statement Location</b></td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>(Losses)</b></td>
<td> </td>
</tr>
<tr style="font-size: 7pt" valign="bottom">
<td nowrap="nowrap" align="left"><i>in millions</i></td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="3"><b>of Net Gains (Losses) on Derivative</b></td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>on Derivative</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Hedged Item</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="3"><b>of Net Gains (Losses) on Hedged Item</b></td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>on Hedged Item</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="21" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest rate
</div></td>
<td> </td>
<td colspan="3" valign="top" align="right">Other income</td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top">$</td>
<td align="right" valign="top">(392</td>
<td nowrap="nowrap" valign="top">)</td>
<td> </td>
<td colspan="3" nowrap="nowrap" valign="top" align="right">Long-term debt</td>
<td> </td>
<td colspan="3" nowrap="nowrap" valign="top" align="right">Other income</td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top">$</td>
<td align="right" valign="top">390</td>
<td nowrap="nowrap" valign="top"> <sup style="font-size: 85%; vertical-align: text-top">(a)</sup></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest rate
</div></td>
<td> </td>
<td colspan="3" nowrap="nowrap" valign="top" align="right">Interest expense – Long-term debt</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">170</td>
<td valign="top"> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top"> </td>
<td valign="top"> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top"> </td>
<td valign="top"> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top"> </td>
<td valign="top"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td nowrap="nowrap">
<div style="margin-left:15px; text-indent:-15px">Foreign exchange
</div></td>
<td> </td>
<td colspan="3" valign="top" align="right">Other income</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">176</td>
<td valign="top"> </td>
<td> </td>
<td colspan="3" valign="top" align="right">Long-term debt</td>
<td> </td>
<td colspan="3" valign="top" align="right">Other income</td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top"> </td>
<td align="right" valign="top">(183</td>
<td nowrap="nowrap" valign="top">) <sup style="font-size: 85%; vertical-align: text-top">(a)</sup></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Foreign exchange
</div></td>
<td> </td>
<td colspan="3" nowrap="nowrap" valign="top" align="right">Interest expense – Long-term debt</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">15</td>
<td valign="top"> </td>
<td> </td>
<td colspan="3" valign="top" align="right">Long-term debt</td>
<td> </td>
<td colspan="3" valign="top" align="right" nowrap="nowrap">Interest expense – Long-term debt</td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top"> </td>
<td align="right" valign="top">(39</td>
<td nowrap="nowrap" valign="top">) <sup style="font-size: 85%; vertical-align: text-top">(b)</sup></td>
</tr>
<tr style="font-size: 1px">
<td colspan="21" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Total
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top"> </td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top">$</td>
<td align="right" valign="top">(31</td>
<td nowrap="nowrap" valign="top">)</td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top"> </td>
<td valign="top"> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top"> </td>
<td valign="top"> </td>
<td> </td>
<td align="left" valign="top">$</td>
<td align="right" valign="top">168</td>
<td valign="top"> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top"> </td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" valign="top" style="border-top: 3px double #000000"> </td>
<td valign="top"> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top"> </td>
<td valign="top"> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top"> </td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" valign="top" style="border-top: 3px double #000000"> </td>
<td valign="top"> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="21" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div style="margin-top: 6pt">
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr>
<td width="3%"></td>
<td width="1%"></td>
<td width="96"></td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">(a)</td>
<td> </td>
<td>Net gains on hedged items represent the change in fair value caused by fluctuations
in interest rates.</td>
</tr>
<tr style="font-size: 6pt">
<td> </td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">(b)</td>
<td> </td>
<td>Net losses on hedged items represent the change in fair value caused by fluctuations in foreign
currency exchange rates.</td>
</tr>
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><b><i>Cash flow hedges. </i></b>These hedging instruments are recorded at fair value and included in
“derivative assets” or “derivative liabilities” on the balance sheet. The effective portion of a
gain or loss on a cash flow hedge is recorded as a component of AOCI on the balance sheet. The
amounts are reclassified into earnings in the same period in which the hedged transaction impacts
earnings, such as when we pay variable-rate interest on debt, receive variable-rate interest on
commercial loans or sell commercial real estate loans. The ineffective portion of cash flow
hedging transactions is included in “other income” on the income statement. During the nine-month
period ended September 30, 2009, we did not exclude any portion of our hedging instruments from the
assessment of hedge effectiveness. While some ineffectiveness is present in our hedging
relationships, all of our cash flow hedges remained “highly effective” during the first nine months
of 2009.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The following table summarizes the pre-tax net gains (losses) on our cash flow hedges during the
nine-month period ended September 30, 2009, and where they are recorded on the income statement.
The table includes the effective portion of net gains (losses) recognized in OCI during the period,
the effective portion of net gains (losses) reclassified from OCI into income during the current
period and the portion of net gains (losses) recorded directly into income, representing the amount
of hedge ineffectiveness.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center">
<table style="font-size: 7.5pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="20%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 7pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Net Gains</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Income Statement Location</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Net Gains</b></td>
<td> </td>
</tr>
<tr style="font-size: 7pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Net Gains (Losses)</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>(Losses) Reclassified</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>of Net Gains (Losses)</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>(Losses) Recognized</b></td>
<td> </td>
</tr>
<tr style="font-size: 7pt" valign="bottom">
<td nowrap="nowrap" align="left"><b>Nine months ended September 30, 2009</b></td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Recognized in OCI</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Income Statement Location of Net Gains (Losses)</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>From OCI Into Income</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Recognized in Income</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>in Income</b></td>
<td> </td>
</tr>
<tr style="font-size: 7pt" valign="bottom">
<td nowrap="nowrap" align="left"><i>in millions</i></td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>(Effective Portion)</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Reclassified From OCI Into Income (Effective Portion)</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>(Effective Portion)</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>(Ineffective Portion)</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>(Ineffective Portion)</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="21" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest rate
</div></td>
<td> </td>
<td align="left" valign="top">$</td>
<td align="right" valign="top">167</td>
<td valign="top"> </td>
<td> </td>
<td colspan="2" valign="top" align="right">Interest income – Loans</td>
<td> </td>
<td> </td>
<td align="left" valign="top">$</td>
<td align="right" valign="top">340</td>
<td valign="top"> </td>
<td> </td>
<td colspan="3" valign="top" align="right">Other income  </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top">$</td>
<td align="right" valign="top">(1</td>
<td nowrap="nowrap" valign="top">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest rate
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">16</td>
<td valign="top"> </td>
<td> </td>
<td colspan="2" valign="top" align="right">Interest expense – Long-term debt</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top"> </td>
<td align="right" valign="top">(14</td>
<td nowrap="nowrap" valign="top">)</td>
<td> </td>
<td colspan="3" nowrap="nowrap" valign="top" align="right">Other income  </td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">1</td>
<td valign="top"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest rate
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">4</td>
<td valign="top"> </td>
<td> </td>
<td colspan="2" valign="top" align="right" nowrap="nowrap">Net gains (losses) from loan securitizations and sales</td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">5</td>
<td valign="top"> </td>
<td> </td>
<td colspan="3" valign="top" align="right">Other income  </td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">—</td>
<td valign="top"> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="21" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Total
</div></td>
<td> </td>
<td align="left" valign="top">$</td>
<td align="right" valign="top">187</td>
<td valign="top"> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top"> </td>
<td valign="top"> </td>
<td> </td>
<td align="left" valign="top">$</td>
<td align="right" valign="top">331</td>
<td valign="top"> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top"> </td>
<td valign="top"> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top">—</td>
<td valign="top"> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" valign="top" style="border-top: 3px double #000000"> </td>
<td valign="top"> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top"> </td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" valign="top" style="border-top: 3px double #000000"> </td>
<td valign="top"> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td align="right" valign="top"> </td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" valign="top" style="border-top: 3px double #000000"> </td>
<td valign="top"> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="21" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The after-tax change in AOCI resulting from cash flow hedges is as follows:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Reclassification</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"> </td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>December 31,</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>of Gains to</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>September 30,</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><i>in millions</i></td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>2008</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Hedging Activity</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Net Income</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>2009</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td nowrap="nowrap">
<div style="margin-left:15px; text-indent:-15px">Accumulated other comprehensive income
resulting from cash flow hedges
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">238</td>
<td> </td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>117</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"><b>$</b></td>
<td align="right"><b>(207</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>148</b></td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Given the interest rates, yield curves and notional amounts as of September 30, 2009, we would
expect to reclassify an estimated $43 million of net losses on derivative instruments from AOCI to
earnings during the next twelve months. The maximum length of time over which forecasted
transactions are hedged is nineteen years.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><b><i>Nonhedging instruments. </i></b>Our derivatives that are not used in hedging relationships are recorded at
fair value in “derivative assets” and “derivative liabilities” on the balance sheet. Adjustments
to the fair values of these instruments, as well as any premium paid or received, are included in
“investment banking and capital markets income (loss)” on the income statement.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The following table summarizes the pre-tax net gains (losses) on our derivative instruments that
are not used in hedging relationships for the nine-month period ended September 30, 2009, and where
they are recorded on the income statement.
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="88%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><b>Nine months ended September 30, 2009</b></td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Net Gains</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><i>in millions</i></td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>(Losses)</b></td>
<td> <sup style="font-size: 85%; vertical-align: text-top"><b>(a)</b></sup></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="5" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest rate
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">18</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Foreign exchange
</div></td>
<td> </td>
<td> </td>
<td align="right">38</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Energy and commodity
</div></td>
<td> </td>
<td> </td>
<td align="right">5</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Credit
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(33</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Equity <sup style="font-size: 85%; vertical-align: text-top">(b)</sup>
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="5" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Total
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">28</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="5" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div style="margin-top: 6pt">
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr>
<td width="3%"></td>
<td width="1%"></td>
<td width="96"></td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">(a)</td>
<td> </td>
<td>Recorded in “investment banking and capital markets
income (loss)” on the income statement.</td>
</tr>
<tr style="font-size: 3pt">
<td> </td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">(b)</td>
<td> </td>
<td>We enter into equity contracts to accommodate the needs of
clients and offset these positions with third parties. We did
not enter into any new equity contracts during the nine months
ended September 30, 2009.</td>
</tr>
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Counterparty Credit Risk</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Like other financial instruments, derivatives contain an element of credit risk. This risk is
measured as the expected positive replacement value of the contracts. We use several means to
mitigate and manage exposure to credit risk on derivative contracts. We generally enter into
bilateral collateral and master netting agreements using standard forms published by the ISDA.
These agreements provide for the net settlement of all contracts with a single counterparty in the
event of default. Additionally, we monitor credit risk exposure to the counterparty on each
contract to determine appropriate limits on our total credit exposure across all product types. We
review our collateral positions on a daily basis and exchange collateral with our counterparties in
accordance with ISDA and other related agreements. We generally
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
\
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">hold collateral in the form of cash and highly rated securities issued by the U.S. Treasury,
government-sponsored enterprises or GNMA. The cash collateral netted against derivative assets on
the balance sheet totaled $485 million at September 30, 2009, $974 million at December 31, 2008,
and $281 million at September 30, 2008. The cash collateral netted against derivative liabilities
totaled $14 million at September 30, 2009, $586 million at December 31, 2008, and $348 million at
September 30, 2008.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">At September 30, 2009, the largest gross exposure to an individual counterparty was $296 million,
which was secured with $29 million in collateral. Additionally, we had a derivative liability of
$366 million with this counterparty, whereby we pledged $99 million in collateral. After taking
into account the effects of a master netting agreement and collateral, we did not have any
remaining exposure to this counterparty.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The following table summarizes the fair value of our derivative assets by type. These assets
represent our gross exposure to potential loss after taking into account the effects of master
netting agreements and other means used to mitigate risk.
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="64%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>September 30,</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>December 31,</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>September 30,</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><i>in millions</i></td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>2008</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>2008</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="13" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest rate
</div></td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>1,445</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">2,333</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">794</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Foreign exchange
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>193</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">279</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">260</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Energy and commodity
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>110</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">214</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">139</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Credit
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>22</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">42</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">36</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Equity
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="13" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Derivative assets before cash collateral
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>1,770</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,870</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,232</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Less: Related cash collateral
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>485</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">974</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">281</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="13" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Total derivative assets
</div></td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>1,285</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,896</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">951</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="13" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">We enter into derivative transactions with two primary groups: broker-dealers and banks, and
clients. Since these groups have different economic characteristics, we manage counterparty credit
exposure and credit risk in a different manner for each group.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">We enter into transactions with broker-dealers and banks for purposes of A/LM, risk management and
proprietary trading purposes. These types of transactions generally are high dollar volume. We
generally enter into bilateral collateral and master netting agreements with these counterparties.
At September 30, 2009, after taking into account the effects of master netting agreements, we had
gross exposure of $1.2 billion to broker-dealers and banks. We had net exposure of $281 million
after the application of master netting agreements and cash collateral. Our net exposure to
broker-dealers and banks at September 30, 2009, was reduced to $63 million by $218 million of
additional collateral held in the form of securities.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Additionally, we enter into transactions with clients to accommodate their business needs. These
types of transactions generally are low dollar volume. We generally enter into master netting
agreements with these counterparties. In addition, we mitigate our overall portfolio exposure and
market risk by entering into offsetting positions with other banks. Due to the smaller size and
magnitude of the individual contracts with clients, collateral is generally not exchanged on these
derivative transactions. In order to address the risk of default associated with the
uncollateralized contracts, we have established a reserve (included in “derivative assets”) in the
amount of $64 million at September 30, 2009, which we estimate to be the potential future losses on
amounts due from client counterparties in the event of default. At September 30, 2009, after
taking into account the effects of master netting agreements, we had gross exposure of $1.2 billion
to these counterparties. We had net exposure of $1.0 billion on our derivatives with clients after
the application of master netting agreements, cash collateral and the related reserve.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Credit Derivatives</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">We are both a buyer and seller of credit protection through the credit derivative market. We
purchase credit derivatives to manage the credit risk associated with specific commercial lending
obligations. We also sell credit derivatives, mainly index credit default swaps, to diversify the
concentration risk within our loan portfolio. In addition, we have entered into derivatives for
proprietary trading purposes.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">The following table summarizes the fair value of our credit derivatives purchased and sold by type
as of September 30, 2009, and December 31, 2008. The fair value of credit derivatives presented
below does not take into account the effects of bilateral collateral or master netting agreements.
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="28%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="10" style="border-bottom: 1px solid #000000"><b>September 30, 2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="10" style="border-bottom: 1px solid #000000"><b>December 31, 2008</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><i>in millions</i></td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Purchased</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Sold</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Net</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Purchased</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Sold</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Net</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="25" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Single name credit default swaps
</div></td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>9</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"><b>$</b></td>
<td align="right"><b>(2</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>7</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">155</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(104</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">51</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Traded credit default swap indices
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>1</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>1</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">34</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(47</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(13</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Other
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(1</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(1</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(8</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(8</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td colspan="25" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Total credit derivatives
</div></td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>9</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"><b>$</b></td>
<td align="right"><b>(2</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>7</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">189</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(159</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">30</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="25" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Single name credit default swaps are bilateral contracts between a buyer and seller, whereby
protection against the credit risk of a reference entity is sold. The protected credit risk is
related to adverse credit events, such as bankruptcy, failure to make payments, and acceleration or
restructuring of obligations specified in the credit derivative contract using standard
documentation terms governed by the ISDA. The credit default swap contract will reference a
specific debt obligation of the reference entity. As the seller of a single name credit
derivative, we would be required to pay the purchaser the difference between par value and the
market price of the debt obligation (cash settlement) or receive the specified referenced asset in
exchange for payment of the par value (physical settlement) if the underlying reference entity
experiences a certain, predefined credit event. For a single name credit derivative, the notional
amount represents the maximum amount that a seller could be required to pay under the credit
derivative. In the event that physical settlement occurs and we receive our portion of the related
debt obligation, we will join other creditors in the liquidation process, which may result in the
recovery of a portion of the amount paid under the credit default swap contract. We also may
purchase offsetting credit derivatives for the same reference entity from third parties that will
permit us to recover the amount we pay should a credit event occur.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">A traded credit default swap index represents a position on a basket or portfolio of reference
entities. As a seller of protection on a credit default swap index, we would be required to pay
the purchaser if one or more of the entities in the index had a credit event. For a credit default
swap index, the notional amount represents the maximum amount that a seller could be required to
pay under the credit derivative. Upon a credit event, the amount payable is based on the
percentage of the notional amount allocated to the specific defaulting entity.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The following table provides information on the types of credit derivatives sold by us and held on
the balance sheet at September 30, 2009, and December 31, 2008. This table includes derivatives
sold both to diversify our credit exposure and for proprietary trading purposes. The
payment/performance risk assessment is based on the default probabilities for the underlying
reference entities’ debt obligations using the credit ratings matrix provided by Moody’s,
specifically Moody’s “Idealized” Cumulative Default Rates, except as noted. The
payment/performance risk shown in the table represents a weighted-average of the default
probabilities for all reference entities in the respective portfolios. These default probabilities
are directly correlated to the probability that we will have to make a payment under the credit
derivative contracts.
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="28%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="10" style="border-bottom: 1px solid #000000"><b>September 30, 2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="10" style="border-bottom: 1px solid #000000"><b>December 31, 2008</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Average</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Payment /</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Average</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Payment /</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Notional</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Term</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Performance</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Notional</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Term</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Performance</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><i>dollars in millions</i></td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Amount</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>(Years)</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Risk</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Amount</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>(Years)</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Risk</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="25" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Single name credit default swaps
</div></td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>1,251</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>2.56</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>5.05</b></td>
<td nowrap="nowrap"><b>%</b></td>
<td> </td>
<td align="left">$</td>
<td align="right">1,476</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2.44</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">4.75</td>
<td nowrap="nowrap">%</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Traded credit default swap indices
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>926</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>3.00</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>6.97</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,759</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1.51</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4.67</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Other
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>25</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>1.00</b></td>
<td> </td>
<td> </td>
<td colspan="2" align="right"><b>Low</b></td>
<td> <sup style="font-size: 85%; vertical-align: text-top"><b>(a)</b></sup></td>
<td> </td>
<td> </td>
<td align="right">59</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1.50</td>
<td> </td>
<td> </td>
<td colspan="2" align="right">Low</td>
<td> <sup style="font-size: 85%; vertical-align: text-top">(a)</sup></td>
</tr>
<tr style="font-size: 1px">
<td colspan="25" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Total credit derivatives sold
</div></td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>2,202</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>—</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">3,294</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="25" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div style="margin-top: 6pt">
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr>
<td width="3%"></td>
<td width="1%"></td>
<td width="96"></td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">(a)</td>
<td> </td>
<td>The other credit derivatives are not referenced to an entity’s debt obligation. We
determined the payment/performance risk based on the probability that we could be required to
pay the maximum amount under the credit derivatives. We have determined that the
payment/performance risk associated with the other credit derivatives is low (i.e., less than
or equal to 30% probability of payment).</td>
</tr>
</table>
</div>
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<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Credit Risk Contingent Features</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">We have entered into certain derivative contracts that require us to post collateral to the
counterparties when these contracts are in a net liability position. The amount of collateral to
be posted is generally based on thresholds related to our long-term senior unsecured credit ratings
with Moody’s and S&P. The collateral to be posted is also based on minimum transfer amounts, which
are specific to each Credit Support Annex (a component of the ISDA Master Agreement) that we have
signed with the counterparties. In a limited number of instances, counterparties also have the
right to terminate their ISDA Master Agreements with us if our ratings fall below a certain level,
usually investment-grade level (i.e., “Baa3” for Moody’s and “BBB-” for S&P). At September 30,
2009, KeyBank’s ratings with Moody’s and S&P were “A2” and “A-,” respectively, and KeyCorp’s
ratings with Moody’s and S&P were “Baa1” and “BBB+,” respectively. Upon a downgrade of our
ratings, we could be required to post additional collateral under those ISDA Master Agreements
where we are in a net liability position. As of September 30, 2009, the aggregate fair value of
all derivative contracts with credit risk contingent features (i.e., those containing collateral
posting or termination provisions based on our ratings) that were in a net liability position
totaled $953 million, which includes $852 million in derivative assets and $1.8 billion in
derivative liabilities. We had $888 million in cash and securities collateral posted to cover
those positions as of September 30, 2009.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The following table summarizes the additional cash and securities collateral that KeyBank would
have been required to deliver had the credit risk contingent features been triggered for the
derivative contracts in a net liability position as of September 30, 2009. The additional
collateral amounts were calculated based on scenarios under which KeyBank’s ratings are downgraded
one, two or three ratings as of September 30, 2009, and take into account all collateral already
posted. At September 30, 2009, KeyCorp did not have any derivatives in a net liability position
that contained credit risk contingent features.
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><b>September 30, 2009</b></td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"> </td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><i>in millions</i></td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Moody’s</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>S&P</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="9" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">KeyBank’s long-term senior
unsecured credit ratings
</div></td>
<td> </td>
<td> </td>
<td align="right">A2</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">A-</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="9" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">One rating downgrade
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">34</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">32</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Two rating downgrades
</div></td>
<td> </td>
<td> </td>
<td align="right">61</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">43</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Three rating downgrades
</div></td>
<td> </td>
<td> </td>
<td align="right">72</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">44</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="9" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">If KeyBank’s ratings had been downgraded below investment-grade as of September 30, 2009, payments
of up to $115 million would have been required to either terminate the contracts or post additional
collateral for those contracts in a net liability position, taking into account all collateral
already posted. To be downgraded below investment-grade, KeyBank’s long-term senior unsecured
credit rating would need to be downgraded five ratings by Moody’s and four ratings by S&P. At the
time we filed this report on November 6, 2009, KeyCorp’s and KeyBank’s ratings remained unchanged
from their ratings at September 30, 2009.
</div>
</div>
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<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 18pt"><b>16. Fair Value Measurements</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Fair Value Determination</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">As defined in the applicable accounting guidance for fair value measurements and disclosures, fair
value is the price to sell an asset or transfer a liability in an orderly transaction between
market participants in our principal market. We have established and documented our process for
determining the fair values of our assets and liabilities, where applicable. Fair value is based
on quoted market prices, when available, for identical or similar assets or liabilities. In the
absence of quoted market prices, we determine the fair value of our assets and liabilities using
valuation models or third-party pricing services. Both of these approaches rely on market-based
parameters when available, such as interest rate yield curves, option volatilities and credit
spreads, or unobservable inputs. Unobservable inputs may be based on our
judgment, assumptions and estimates related to credit quality, liquidity, interest rates and other
relevant inputs.
</div>
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</div>
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<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">Valuation adjustments, such as those pertaining to counterparty and our own credit quality and
liquidity, may be necessary to ensure that assets and liabilities are recorded at fair value.
Credit valuation adjustments are made when market pricing is not indicative of the counterparty’s
credit quality. Most classes of derivative contracts are valued using internally developed models
based on market-standard derivative pricing conventions, which rely primarily on observable market
inputs, such as interest rate yield curves and volatilities. Market convention implies a credit
rating of “AA” equivalent in the pricing of derivative contracts, which assumes all counterparties
have the same creditworthiness. In determining the fair value of derivatives, we consider the
impact of master netting and cash collateral exchange agreements and, when appropriate, establish a
default reserve to reflect the credit quality of the counterparty.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Liquidity valuation adjustments are made when we are unable to observe recent market transactions
for identical or similar instruments. We adjust the fair value to reflect the uncertainty in the
pricing and trading of the instrument. Liquidity valuation adjustments are made based on the
following factors:
</div>
<div style="margin-top: 12pt">
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<td width="3%" nowrap="nowrap" align="left"><font style="font-family: Symbol">¨</font></td>
<td width="1%"> </td>
<td>the amount of time since the last relevant valuation;</td>
</tr>
<tr>
<td style="font-size: 12pt"> </td>
</tr>
<tr valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<td width="3%" nowrap="nowrap" align="left"><font style="font-family: Symbol">¨</font></td>
<td width="1%"> </td>
<td>whether there is an actual trade or relevant external quote available at the measurement date; and</td>
</tr>
<tr>
<td style="font-size: 12pt"> </td>
</tr>
<tr valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<td width="3%" nowrap="nowrap" align="left"><font style="font-family: Symbol">¨</font></td>
<td width="1%"> </td>
<td>volatility associated with the primary pricing components.</td>
</tr>
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">We ensure that fair value measurements are accurate and appropriate through our various controls, including:
</div>
<div style="margin-top: 12pt">
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<td width="3%" nowrap="nowrap" align="left"><font style="font-family: Symbol">¨</font></td>
<td width="1%"> </td>
<td>an independent review and approval of valuation models;</td>
</tr>
<tr>
<td style="font-size: 12pt"> </td>
</tr>
<tr valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<td width="3%" nowrap="nowrap" align="left"><font style="font-family: Symbol">¨</font></td>
<td width="1%"> </td>
<td>a detailed review of profit and loss conducted on a regular basis; and</td>
</tr>
<tr>
<td style="font-size: 12pt"> </td>
</tr>
<tr valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<td width="3%" nowrap="nowrap" align="left"><font style="font-family: Symbol">¨</font></td>
<td width="1%"> </td>
<td>a validation of valuation model components against benchmark data and similar products, where possible.</td>
</tr>
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">We review any changes to valuation methodologies to ensure they are appropriate and justified, and
refine valuation methodologies as more market-based data becomes available.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Fair Value Hierarchy</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The applicable accounting guidance for fair value measurements and disclosures establishes a
three-level valuation hierarchy for determining fair value that is based on the transparency of the
inputs used in the valuation process. The inputs used in determining fair value in each of the
three levels of the hierarchy, from highest ranking to lowest, are as follows:
</div>
<div style="margin-top: 12pt">
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<td width="3%" nowrap="nowrap" align="left"><font style="font-family: Symbol">¨</font></td>
<td width="1%"> </td>
<td><b><i>Level 1</i></b>. Quoted prices in active markets for identical assets or liabilities.</td>
</tr>
<tr>
<td style="font-size: 12pt"> </td>
</tr>
<tr valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<td width="3%" nowrap="nowrap" align="left"><font style="font-family: Symbol">¨</font></td>
<td width="1%"> </td>
<td><b><i>Level 2</i></b><i>. </i>Either: (i) quoted market prices for similar assets or liabilities; (ii) observable inputs, such as interest
rates or yield curves; or (iii) inputs derived principally from or corroborated by observable market data.</td>
</tr>
<tr>
<td style="font-size: 12pt"> </td>
</tr>
<tr valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<td width="3%" nowrap="nowrap" align="left"><font style="font-family: Symbol">¨</font></td>
<td width="1%"> </td>
<td><b><i>Level 3</i></b><i>. </i>Unobservable inputs.</td>
</tr>
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The level in the fair value hierarchy ascribed to a fair value measurement in its entirety is based
on the lowest level input that is significant to the overall fair value measurement.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Qualitative Disclosures of Valuation Techniques</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><b><i>Loans</i></b>. Loans recorded as trading account assets are valued using an internal cash flow model
because the market in which these assets typically trade is not active. The most significant
inputs to our internal model are actual and projected financial results for the individual
borrowers. Accordingly, these loans are classified as Level 3 assets.
</div>
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<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt"><b><i>Securities (trading and available for sale)</i></b><i>. </i>Securities are classified as Level 1 when quoted
market prices are available in an active market for those identical securities. Level 1
instruments include highly liquid government bonds, securities issued by the U.S. Treasury and
exchange-traded equity securities. In the absence of availability of quoted prices for identical
securities, we determine fair value using pricing models or quoted prices of similar securities.
These instruments include municipal bonds and other bonds backed by the U.S. government, corporate
bonds, certain mortgage backed securities, securities issued by the U.S. Treasury and certain
agency and corporate collateralized mortgage obligations, and are classified as Level 2 assets.
Inputs to the pricing models include actual trade data (i.e., spreads, credit ratings and interest
rates) for comparable assets, spread tables, matrices, high-grade scales, option-adjusted spreads
and standard inputs, such as yields, broker/dealer quotes, bids and offers. Where there is limited
activity in the market for a particular instrument, we use internal models based on certain
assumptions to determine fair value. Such instruments include certain commercial mortgage-backed
securities and certain commercial paper, and are classified as Level 3 assets. Inputs for the
Level 3 internal models include expected cash flows from the underlying loans, which take into
account expected default and recovery percentages, market research, and discount rates commensurate
with current market conditions.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><b><i>Private equity and mezzanine investments</i></b><i>. </i>Valuations of private equity and mezzanine investments
held primarily within our Real Estate Capital and Corporate Banking Services line of business are
estimated based on the process described below since there is no market data available for these
instruments.
These investments are initially valued based upon the transaction price. The carrying amount is
then adjusted based upon the estimated future cash flows associated with the investments. Inputs
used in determining future cash flows include, but are not limited to, the cost of build-out,
future selling prices, current market outlook and operating performance of the particular
investment. Private equity and mezzanine investments are classified as Level 3 assets since our
judgment impacts determination of fair value.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><b><i>Principal investments</i></b><i>. </i>Principal investments consist of investments in equity and debt instruments
made by Key Principal Partners, LLC, an affiliate of Key. They include direct investments
(investments made in a particular company), as well as indirect investments (investments made
through funds that include other investors) in predominantly privately held companies and funds.
When quoted prices are available in an active market for the identical investment, they are used in
the valuation process, and the related investments are classified as Level 1 assets. However, in
most cases, quoted market prices are not available for the identical investment, and we must rely
upon other sources and inputs, such as market multiples, historical and forecast earnings before
interest, tax, depreciation and amortization, net debt levels, and investment risk ratings to
perform the asset valuations. As of September 30, 2009, Key Principal Partners, LLC changed their
methodology used to value indirect investments to incorporate new accounting guidance that allows
certain entities to use statements from the investment manager to calculate net asset value per
share. These investments are classified as Level 3 assets since our assumptions impact the overall
determination of fair value.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><b><i>Derivatives</i></b><i>. </i>Exchange-traded derivatives are valued using quoted prices and, therefore, are
classified as Level 1 instruments. However, only a few types of derivatives are exchange-traded,
so the majority of our derivative positions are valued using internally-developed models based on
market convention that uses observable market inputs, such as interest rate curves, yield curves,
the LIBOR discount rates and curves, index pricing curves, foreign currency curves and volatility
curves. These derivative contracts are classified as Level 2 instruments and include interest rate
swaps, certain options, cross currency swaps and credit default swaps. In addition, we have a few
customized derivative instruments that are classified as Level 3 instruments. These derivative
positions are valued using internally developed models. Inputs to the models consist of
market-available data, such as bond spreads and asset values, as well as our assumptions, such as
loss probabilities and proxy prices. Market convention implies a credit rating of “AA” equivalent
in the pricing of derivative contracts, which assumes all counterparties have the same
creditworthiness. In order to reflect the actual exposure on our derivative contracts related to
both counterparty and our own creditworthiness, we record a fair value adjustment in the form of a
reserve. The credit component is valued on a counterparty-by-counterparty basis, and considers
master netting agreements and collateral.
</div>
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<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt"><b><i>Other assets and liabilities. </i></b>The value of our repurchase and reverse repurchase agreements, trade
date receivables and payables, and short positions is driven by the valuation of the underlying
securities. The underlying securities may include equity securities, which are valued using quoted
market prices in an active market for identical securities, resulting in a Level 1 classification.
If quoted prices for identical securities are not available, fair value is determined by using
pricing models or quoted prices of similar securities, resulting in a Level 2 classification.
Inputs include spreads, credit ratings and interest rates for the interest rate-driven products.
Inputs include actual trade data for comparable assets, and bids and offers for the credit-driven
products. Credit-driven securities include corporate bonds and mortgage-backed securities, while
interest rate-driven securities include government bonds, U.S. Treasury bonds and other products
backed by the U.S. government.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Assets and Liabilities Measured at Fair Value on a Recurring Basis</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Certain assets and liabilities are measured at fair value on a recurring basis in accordance with
GAAP. These assets and liabilities are measured at fair value on a regular basis. The following
table presents our assets measured at fair value on a recurring basis at September 30, 2009.
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="40%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><b>September 30, 2009</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Netting</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"> </td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><i>in millions</i></td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Level 1</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Level 2</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Level 3</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Adjustments</b></td>
<td> <sup style="font-size: 85%; vertical-align: text-top"><b>(a)</b></sup></td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Total</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="21" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>ASSETS MEASURED ON A RECURRING BASIS</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Short term investments
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">348</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">348</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Trading account assets:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">US Treasury, agencies and corporations
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">9</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">9</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Other mortgage-backed securities
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">45</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">45</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Other securities
</div></td>
<td> </td>
<td> </td>
<td align="right">73</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">753</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">498</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,324</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="21" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Total trading account securities
</div></td>
<td> </td>
<td> </td>
<td align="right">82</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">753</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">543</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,378</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Other trading account assets
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">28</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">28</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="21" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Total trading account assets
</div></td>
<td> </td>
<td> </td>
<td align="right">82</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">753</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">571</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,406</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Securities available for sale
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">US Treasury, agencies and corporations
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">8</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">8</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">States and political subdivisions
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">87</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">87</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Collateralized mortgage obligations
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">13,681</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">13,681</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Other mortgage-backed securities
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,525</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,525</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Other securities
</div></td>
<td> </td>
<td> </td>
<td align="right">99</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">13</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">112</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="21" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Total securities available for sale
</div></td>
<td> </td>
<td> </td>
<td align="right">99</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">15,314</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">15,413</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Other investments
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,059</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,062</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Derivative assets
</div></td>
<td> </td>
<td> </td>
<td align="right">165</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,929</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">78</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(1,887</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">1,285</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Accrued income and other assets
</div></td>
<td> </td>
<td> </td>
<td align="right">6</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">29</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">9</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">44</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="21" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Total assets on a recurring basis at fair value
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">352</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">19,376</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,717</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(1,887</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">19,558</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="21" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td nowrap="nowrap" colspan="10">
<div style="margin-left:15px; text-indent:-15px"><b>LIABILITIES MEASURED ON A RECURRING BASIS</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Federal funds purchased and securities sold
under repurchase agreements
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">386</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">386</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Bank notes and other short-term borrowings
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">8</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">398</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">406</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Derivative liabilities
</div></td>
<td> </td>
<td> </td>
<td align="right">141</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,460</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(1,417</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">1,185</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Accrued expense and other liabilities
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">134</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">134</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="21" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Total liabilities on a recurring basis at fair value
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">149</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">3,378</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(1,417</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">2,111</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="21" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div style="margin-top: 6pt">
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr>
<td width="3%"></td>
<td width="1%"></td>
<td width="96"></td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">(a)</td>
<td> </td>
<td>Netting adjustments represent the amounts recorded to convert our derivative assets and
liabilities from a gross basis to a net basis in accordance with the applicable accounting
guidance related to the offsetting of certain derivative contracts on the balance sheet. The
net basis takes into account the impact of master netting agreements that allow us to settle
all derivative contracts with a single counterparty on a net basis and to offset the net
derivative position with the related cash collateral.</td>
</tr>
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Changes in Level 3 Fair Value Measurements</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The following table shows the change in the fair values of our Level 3 financial instruments for
the nine months ended September 30, 2009. An instrument is classified as Level 3 if unobservable
inputs are significant relative to the overall fair value measurement of the instrument. In
addition to unobservable inputs, Level 3 instruments also may have inputs that are observable
within the market. We mitigate the credit risk, interest rate risk and risk of loss related to
many of these Level 3 instruments through the use of securities and derivative positions classified
as Level 1 or Level 2. Level 1 or Level 2 instruments are not included in the following table.
Therefore, the gains or losses shown do not include the impact of our risk management activities.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center">
<table style="font-size: 8pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="28%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="10" style="border-bottom: 1px solid #000000"><b>Trading Account Assets</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"> </td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Other</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Other</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Accrued</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Mortgage-</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Trading</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Income</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Backed</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Other</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Account</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Other</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Derivative</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>and Other</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><i>in millions</i></td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Securities</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Securities</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Assets</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Investments</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Instruments</b></td>
<td> <sup style="font-size: 85%; vertical-align: text-top"><b>(a)</b></sup></td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Assets</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="25" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Balance at December 31, 2008
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">67</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">758</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">31</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,134</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">15</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Losses included in earnings
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(22</td>
<td nowrap="nowrap">) <sup style="font-size: 85%; vertical-align: text-top">(b)</sup></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1</td>
<td nowrap="nowrap">) <sup style="font-size: 85%; vertical-align: text-top">(b)</sup></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1</td>
<td nowrap="nowrap">) <sup style="font-size: 85%; vertical-align: text-top">(b)</sup></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(125</td>
<td nowrap="nowrap">) <sup style="font-size: 85%; vertical-align: text-top">(c)</sup></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(12</td>
<td nowrap="nowrap">) <sup style="font-size: 85%; vertical-align: text-top">(b)</sup></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td nowrap="nowrap">
<div style="margin-left:15px; text-indent:-15px">Purchases, sales, issuances and settlements
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(259</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(2</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">50</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">18</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Net transfers into Level 3
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">56</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">9</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="25" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Balance at September 30, 2009
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">45</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">498</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">28</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,059</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">77</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">9</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="25" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Unrealized losses included in earnings
</div></td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(22</td>
<td nowrap="nowrap">) <sup style="font-size: 85%; vertical-align: text-top">(b)</sup></td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(1</td>
<td nowrap="nowrap">) <sup style="font-size: 85%; vertical-align: text-top">(b)</sup></td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(1</td>
<td nowrap="nowrap">) <sup style="font-size: 85%; vertical-align: text-top">(b)</sup></td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(120</td>
<td nowrap="nowrap">) <sup style="font-size: 85%; vertical-align: text-top">(c)</sup></td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(1</td>
<td nowrap="nowrap">) <sup style="font-size: 85%; vertical-align: text-top">(b)</sup></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="25" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div style="margin-top: 6pt">
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr>
<td width="3%"></td>
<td width="1%"></td>
<td width="96"></td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">(a)</td>
<td> </td>
<td>Amount represents Level 3 derivative assets less Level 3 derivative
liabilities.</td>
</tr>
<tr style="font-size: 6pt">
<td> </td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">(b)</td>
<td> </td>
<td>Realized and unrealized gains and losses on trading account assets and derivative
instruments are reported in “investment banking and capital markets income (loss)” on the
income statement.</td>
</tr>
<tr style="font-size: 6pt">
<td> </td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">(c)</td>
<td> </td>
<td>Other investments consist of principal investments, and private equity and mezzanine
investments. Realized and unrealized gains and losses on principal investments are reported
in “net losses from principal investments” on the income statement. Realized and unrealized
gains and losses on private equity and mezzanine investments are reported in “investment
banking and capital markets income (loss)” on the income statement.</td>
</tr>
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Assets Measured at Fair Value on a Nonrecurring Basis</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Certain assets and liabilities are measured at fair value on a nonrecurring basis in accordance
with GAAP. The adjustments to fair value generally result from the application of accounting
standards that require assets and liabilities to be recorded at the lower of cost or fair value, or
assessed for impairment. The following table presents our assets measured at fair value on a
nonrecurring basis at September 30, 2009, that have been adjusted to fair value as a result of the
process described above.
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"> <b>September 30, 2009</b><br />
<i>in millions</i></td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Level 1</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Level 2</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Level 3</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Total</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>ASSETS MEASURED ON A NONRECURRING BASIS</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Impaired loans
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">9</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">608</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">617</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Loans held for sale
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">90</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">90</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Goodwill and other intangible assets
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Accrued income and other assets
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">22</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">97</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">119</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Total assets on a nonrecurring basis at fair value
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">31</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">795</td>
<td nowrap="nowrap"> <sup style="font-size: 85%; vertical-align: text-top">(a)</sup></td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">826</td>
<td nowrap="nowrap"> <sup style="font-size: 85%; vertical-align: text-top">(a)</sup></td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div style="margin-top: 6pt">
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr>
<td width="3%"></td>
<td width="1%"></td>
<td width="96"></td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">(a)</td>
<td> </td>
<td>Excludes retained interests in securitizations in the amount of $18 million related
to the discontinued operations of the education lending business.</td>
</tr>
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">We typically adjust the carrying amount of our impaired loans when there is evidence of
probable loss and the expected fair value of the loan is less than its contractual amount. The
amount of the impairment may be determined based on the estimated present value of future cash
flows, the fair value of the underlying collateral or the loan’s observable market price. Cash
flow analysis considers internally-developed inputs, such as discount rates, default rates, costs
of foreclosure and changes in real estate values. The fair value of the collateral, which may take
the form of real estate or personal property, is based on internal estimates, field observations
and assessments provided by third party appraisers. Impaired loans with a specifically allocated
allowance based on cash flow analysis or the underlying collateral are classified as Level 3
assets, while those with a specifically allocated allowance based on an observable market price
that reflects recent sale transactions for similar loans and collateral are classified as Level 2.
Current market conditions, including credit risk profiles and decreased real estate values,
impacted the inputs used in our internal valuation analysis, resulting in write-downs of these
assets.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Through a quarterly analysis of our commercial loan portfolios held for sale, we determined that
certain adjustments were necessary to record the portfolios at the lower of cost or fair value in
accordance with GAAP. After adjustments, these loans totaled $90 million at September 30, 2009.
Current market conditions, including credit risk profiles, liquidity and decreased real estate
values, impacted the inputs used in our internal models and other valuation methodologies,
resulting in write-downs of these assets.
The valuations of performing commercial mortgage and construction loans are conducted using
internal models that rely on market data from sales or nonbinding bids of similar assets, including
credit spreads, treasury rates, interest rate curves and risk profiles, as well as our own
assumptions about the exit market
for the loans and details about individual loans within the respective portfolios. Therefore, we
have classified these loans as Level 3 assets. The inputs related to our assumptions and other
internal loan data include changes in real estate values, costs of foreclosure, prepayment rates,
default rates and discount rates. The fair value of these loans was measured using inputs such as
letters of intent, where available, or third-party appraisals. The valuations of nonperforming
commercial mortgage and construction loans are based on current agreements to sell the loans or
approved discounted payoffs. If a negotiated value is not available, third party appraisals,
adjusted for current market conditions, are used. As the valuations are based on unobservable
data, these loans have been classified as Level 3 assets. The valuation of commercial leases is
performed using an internal model that relies on market data, such as swap rates and bond ratings,
as well as our own assumptions about the exit market for the leases and details about the
individual leases in the portfolio. These leases have been classified as Level 3 assets. The
inputs related to our assumptions include changes in the value of leased items and internal credit
ratings. In addition, commercial leases may be valued using nonbinding bids when they are
available and current. The leases valued under this methodology are classified as Level 2 assets.
Additionally, during the first nine months of 2009, we transferred $131 million of commercial loans
from held for sale to the loan portfolio at their current fair value.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">During the first quarter of 2009, a review of impairment indicators prompted us to review and
evaluate the carrying amount of the goodwill and other intangible assets assigned to the Community
Banking and National Banking reporting units. Fair value of our reporting units is determined
using both an income approach (discounted cash flow method) and a market approach (uses publicly
traded company and recent transactions data), which are weighted equally. Inputs used include
market-available data, such as industry, historical and expected growth rates and peer valuations,
as well as internally-driven inputs, such as forecasted earnings and market participant insights.
Since this valuation uses a significant number of unobservable inputs, we have classified these
assets as Level 3. The first quarter 2009 review indicated that the estimated fair value of the
Community Banking unit was greater than its carrying amount, while the estimated fair value of the
National Banking unit was less than its carrying amount, reflecting continued weakness in the
financial markets and requiring additional impairment testing. Based on the results of the
additional impairment testing for the National Banking unit, we recorded an after-tax noncash
accounting charge of $187 million, or $.38 per common share, during the first quarter of 2009.
Consequently, we have now written off all of the goodwill that had been assigned to the National
Banking unit.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Based on reviews of impairment indicators during both the second and third quarters of 2009, we
determined that further reviews of goodwill and other intangible assets for our Community Banking
unit were necessary. These further reviews indicated that the estimated fair value of the
Community Banking unit was greater than its carrying amount at both September 30, 2009, and June
30, 2009; therefore, no further impairment testing was required. The goodwill assigned to the
Community Banking unit is recorded at cost on the balance sheet and, therefore, not included in the
preceding table.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">During the second quarter of 2009, a review of other intangible assets in the National Banking
unit did not identify any impairment of those assets. However, during the third quarter of 2009, a
review of other intangible assets in the National Banking unit identified a $45 million intangible
asset related to vendor relationships in the equipment leasing business that was impaired as a
result of our actions taken during the third quarter to cease conducting business in both the
commercial vehicle and office equipment leasing markets. Accordingly, during the third quarter, we
recorded a $45 million charge to write-off this intangible asset. Our review of the remaining
intangible assets in the National Banking unit did not identify any impairment of those assets
during the third quarter of 2009.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">OREO and other repossessed properties are valued based on inputs such as appraisals and third-party price
opinions, less estimated selling costs. Therefore, we have classified these assets as Level 3. OREO and
other repossessed properties are classified as Level 2 if we receive binding purchase agreements to sell
these properties. Returned lease inventory is valued based on market data for similar assets and is
classified as Level 2.
Assets that are acquired through, or in lieu of, loan
foreclosures are recorded as held for sale initially at the lower of the loan balance or fair value
upon the date of foreclosure. Subsequent to foreclosure, valuations are updated periodically, and
the assets may be marked down further, as a result of current market conditions, to a new cost basis. These adjusted assets
totaled $105 million at September 30, 2009.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">The retained interests in securitizations related to the discontinued operations of the
education lending business are valued using a discounted cash flow analysis with
internally-developed inputs such as discount rates, prepayment rates and default rates. Therefore,
we have classified these assets as Level 3. Current market conditions, including lower
prepayments, interest rates and expected recovery rates, have impacted our modeling assumptions and
consequently resulted in write-downs of these assets.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Fair Value Disclosures of Financial Instruments</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Effective June 30, 2009, we adopted the applicable accounting guidance for financial instruments
related to interim disclosures about the fair value of financial instruments. This guidance
requires disclosures about the fair value of financial instruments in interim financial statements
of publicly traded companies. The carrying amount and fair value of our financial instruments at
September 30, 2009, and December 31, 2008, are shown in the following table.
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>September 30, 2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>December 31, 2008</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Carrying</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Fair</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Carrying</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Fair</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><i>in millions</i></td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Amount</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Value</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Amount</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>Value</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>ASSETS</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Cash and short-term investments <sup style="font-size: 85%; vertical-align: text-top">(a)</sup>
</div></td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>3,711</b></td>
<td> </td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>3,711</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">6,466</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">6,466</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Trading account assets <sup style="font-size: 85%; vertical-align: text-top">(b)</sup>
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>1,406</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>1,406</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,280</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,280</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Securities available for sale <sup style="font-size: 85%; vertical-align: text-top">(b)</sup>
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>15,173</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>15,413</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">8,055</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">8,246</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Held-to-maturity securities <sup style="font-size: 85%; vertical-align: text-top">(c)</sup>
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>24</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>24</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">25</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">25</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Other investments <sup style="font-size: 85%; vertical-align: text-top">(d)</sup>
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>1,448</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>1,448</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,526</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,526</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Loans, net of allowance <sup style="font-size: 85%; vertical-align: text-top">(e)</sup>
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>59,708</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>52,523</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">71,206</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">63,081</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Loans held for sale <sup style="font-size: 85%; vertical-align: text-top">(e)</sup>
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>703</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>703</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">626</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">626</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Mortgage servicing assets <sup style="font-size: 85%; vertical-align: text-top">(f)</sup>
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>226</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>353</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">242</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">406</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Derivative assets <sup style="font-size: 85%; vertical-align: text-top">(g)</sup>
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>1,285</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>1,285</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,896</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,896</td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>LIABILITIES</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Deposits with no stated maturity <sup style="font-size: 85%; vertical-align: text-top">(a)</sup>
</div></td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>40,049</b></td>
<td> </td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>40,049</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">37,255</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">37,255</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Time deposits <sup style="font-size: 85%; vertical-align: text-top">(f)</sup>
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>27,210</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>28,178</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">27,872</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">28,528</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Short-term borrowings <sup style="font-size: 85%; vertical-align: text-top">(a)</sup>
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>2,135</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>2,135</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">10,034</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">10,034</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Long-term debt <sup style="font-size: 85%; vertical-align: text-top">(f)</sup>
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>12,865</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>12,050</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">14,995</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">12,859</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Derivative liabilities <sup style="font-size: 85%; vertical-align: text-top"> (g)</sup>
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>1,185</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>1,185</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,032</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,032</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><u>Valuation Methods and Assumptions</u>
</div>
<div style="margin-top: 6pt">
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr>
<td width="3%"></td>
<td width="1%"></td>
<td width="96"></td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">(a)</td>
<td> </td>
<td>Fair value equals or approximates carrying amount. The fair value of deposits with no stated
maturity does not take into
consideration the value ascribed to core deposit intangibles.</td>
</tr>
<tr style="font-size: 6pt">
<td> </td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">(b)</td>
<td> </td>
<td>Fair values of trading securities and securities available for sale are determined based on
quoted prices when available in an active market. If quoted prices are not available, we
determine fair value using pricing models, quoted prices of similar securities or discounted
cash flows. Where there is limited activity in the market for a particular instrument, we
must make assumptions to determine fair value.</td>
</tr>
<tr style="font-size: 6pt">
<td> </td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">(c)</td>
<td> </td>
<td>Fair values of held-to-maturity securities are determined through the use of models
that are based on security-specific details, as well as relevant industry and economic
factors. The most significant of these inputs are quoted market prices, interest rate spreads
on relevant benchmark securities and certain prepayment assumptions. We review the valuations
derived from the models for reasonableness to ensure they are consistent with the values
placed on similar securities traded in the secondary markets.</td>
</tr>
<tr style="font-size: 6pt">
<td> </td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">(d)</td>
<td> </td>
<td>Fair values of most instruments categorized as other investments are determined by
considering the issuer’s recent financial performance and future potential, the values of
companies in comparable businesses, the risks associated with the particular business or
investment type, current market conditions, the nature and duration of resale restrictions,
the issuer’s payment history, our knowledge of the industry and other relevant factors.</td>
</tr>
<tr style="font-size: 6pt">
<td> </td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">(e)</td>
<td> </td>
<td>The fair value of the loans is based on the present value of the expected cash flows from the
loans. The projected cash flows are based on the contractual terms of the loans, adjusted for
prepayments and use of a discount rate based on the relative risk of the cash flows, taking
into account the loan type, maturity of the loan, liquidity risk, servicing costs, and a
required return on debt and capital. In addition, an incremental liquidity discount was
applied to certain loans using historical sales of loans during periods of similar economic
conditions as a benchmark. The fair value of loans includes lease financing receivables at
their aggregate carrying amount, which is equivalent to their fair value. In some cases, as
with loans held for sale, fair values are determined based on nonbinding quotes, when
available. Excluded from the table above are loans, net of allowance and loans held for sale
related to the discontinued operations of the education lending business. At September 30,
2009, and December 31, 2008, these loans, net of allowance had carrying amounts of $3.4
billion ($2.2 billion fair value) and $3.5 billion ($2.8 billion fair value), respectively.
At September 30, 2009, and December 31, 2008, these loans held for sale had carrying amounts
of $341 million ($341 million fair value) and $401 million ($401 million fair value),
respectively.</td>
</tr>
<tr style="font-size: 6pt">
<td> </td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">(f)</td>
<td> </td>
<td>Fair values of servicing assets, time deposits and long-term debt are based on discounted
cash flows utilizing relevant market inputs.</td>
</tr>
</table>
</div>
<div style="margin-top: 6pt">
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr>
<td width="3%"></td>
<td width="1%"></td>
<td width="96"></td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">(g)</td>
<td> </td>
<td>Information pertaining to our methodology for measuring the fair values of derivative assets
and liabilities is included in Note 15 (“Derivatives and Hedging Activities”), which begins on
page 40.</td>
</tr>
</table>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">Residential real estate mortgage loans with carrying amounts of $1.8 billion at September 30,
2009, and $1.9 billion at December 31, 2008, are included in the amount shown for “Loans, net of
allowance.”
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">For financial instruments with a remaining average life to maturity of less than six months,
carrying amounts were used as an approximation of fair values.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">We use valuation methods based on exit market prices in accordance with the applicable accounting
guidance for fair value measurements and disclosures. In certain instances, we determine fair
value based on assumptions pertaining to
the factors a market participant would consider in valuing the asset. If we were to use different
assumptions, the fair values shown in the preceding table could change significantly. Also,
because the applicable accounting guidance for financial instruments excludes certain financial
instruments and all nonfinancial instruments from its disclosure requirements, the fair value
amounts shown in the table above do not, by themselves, represent the underlying value of our
company as a whole.
</div>
</div>
false
--12-31
2009-09-30
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Net of reclassification adjustments.
For the three months ended September 30, 2009, impairment losses totaled $4 million, of which $2 million was recognized in equity as a component of accumulated other comprehensive income on the balance sheet. For the three months ended June 30, 2009, impairment losses totaled $7 million, of which $1 million was recognized in equity as a component of accumulated other comprehensive income. (See Note 5)