CLEVELAND -- KeyCorp., parent company of KeyBank, turned in third-quarter results that included a loss and a settlement with the IRS
For the third quarter, the financial institution posted a loss from continuing operations of $36 million, compared with a gain in net income of $210 million recorded in 2007. Year to date, the loss has reached $944 million following a gain of $894 million in 2007.
Net loan charge-offs for the quarter totaled $273 million, up from $59 million in 2007. Year to date, loan losses totaled $918 million, up from a loss of $156 million in 2007.
In August, Key entered into an initiative for settlement with the IRS. The federal agency had contested the recalculation of income previously recognized on all leveraged leases during the second quarter of 2008. Once the agreement is completed, Key believes it should realize an after-tax recovery between $75 million and $100 million for previously accrued interest on disputed tax balances.