CLEVELAND, March 14, 2013 /PRNewswire/ -- KeyCorp (NYSE: KEY) announced today that its Board of Directors has authorized a share repurchase program of up to $426 million of its common stock. KeyCorp's Board will consider a dividend increase at its regular May meeting.
In connection with the 2013 Comprehensive Capital Analysis and Review of bank holding companies, the Federal Reserve has reviewed Key's capital plan and notified the Company that it does not object to the capital plan.
Key's capital plan, which was approved by its Board of Directors prior to submission, requested authority to increase its quarterly common stock dividend from $0.05 per share up to $0.055 per share, effective in the second quarter of 2013. Key's Board of Directors will consider the potential dividend increase at its regular May meeting.
In addition, as previously announced on February 21, 2013, Key intends to file an updated capital plan with the Federal Reserve seeking to use the gain realized upon closing of the sale of Victory Capital Management and its broker dealer affiliate Victory Capital Advisers to repurchase shares of its common stock. The sale is expected to close during the third quarter."Today's actions are consistent with our capital priorities and demonstrate the Board's ongoing commitment to return capital to our shareholders," said Beth E. Mooney, Chairman and Chief Executive Officer. "Key remains one of the best capitalized banks in its peer group, with a Tier 1 common equity ratio of 11.36%, at December 31, 2012. By focusing on our core relationship banking model, we continue to grow revenue, strengthen our balance sheet, become more efficient and maintain peer-leading capital levels. We have made a commitment to our shareholders and delivering on that commitment continues to be a priority for Key." Key intends to execute the repurchase of its common stock through the open market or in privately negotiated transactions. The Company anticipates completing the common stock repurchases by the end of the first quarter of 2014. The reacquired shares will be held as treasury shares and may be reissued for various corporate purposes.