Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - KEYCORP /NEW/ | d757476d8k.htm |
| EX-99.1 - EX-99.1 - KEYCORP /NEW/ | d757476dex991.htm |
| EX-99.2 - EX-99.2 - KEYCORP /NEW/ | d757476dex992.htm |
Exhibit 99.3
Consolidated Balance Sheets
(dollars in millions)
| 6-30-14 | 3-31-14 | 6-30-13 | ||||||||||
| Assets |
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| Loans |
$ | 55,600 | $ | 55,445 | $ | 53,101 | ||||||
| Loans held for sale |
435 | 401 | 402 | |||||||||
| Securities available for sale |
12,224 | 12,359 | 13,253 | |||||||||
| Held-to-maturity securities |
5,233 | 4,826 | 4,750 | |||||||||
| Trading account assets |
890 | 840 | 592 | |||||||||
| Short-term investments |
3,176 | 2,922 | 3,582 | |||||||||
| Other investments |
899 | 899 | 1,037 | |||||||||
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| Total earning assets |
78,457 | 77,692 | 76,717 | |||||||||
| Allowance for loan and lease losses |
(814 | ) | (834 | ) | (876 | ) | ||||||
| Cash and due from banks |
604 | 409 | 696 | |||||||||
| Premises and equipment |
844 | 862 | 900 | |||||||||
| Operating lease assets |
306 | 294 | 303 | |||||||||
| Goodwill |
979 | 979 | 979 | |||||||||
| Other intangible assets |
108 | 117 | 149 | |||||||||
| Corporate-owned life insurance |
3,438 | 3,425 | 3,362 | |||||||||
| Derivative assets |
549 | 427 | 461 | |||||||||
| Accrued income and other assets |
3,090 | 3,004 | 2,864 | |||||||||
| Discontinued assets |
4,237 | 4,427 | 5,084 | |||||||||
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| Total assets |
$ | 91,798 | $ | 90,802 | $ | 90,639 | ||||||
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| Liabilities |
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| Deposits in domestic offices: |
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| NOW and money market deposit accounts |
$ | 33,637 | $ | 34,373 | $ | 32,689 | ||||||
| Savings deposits |
2,450 | 2,513 | 2,542 | |||||||||
| Certificates of deposit ($100,000 or more) |
2,743 | 2,849 | 2,918 | |||||||||
| Other time deposits |
3,505 | 3,682 | 4,089 | |||||||||
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| Total interest-bearing deposits |
42,335 | 43,417 | 42,238 | |||||||||
| Noninterest-bearing deposits |
24,781 | 23,244 | 24,939 | |||||||||
| Deposits in foreign office — interest-bearing |
683 | 605 | 544 | |||||||||
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| Total deposits |
67,799 | 67,266 | 67,721 | |||||||||
| Federal funds purchased and securities sold under repurchase agreements |
1,213 | 1,417 | 1,647 | |||||||||
| Bank notes and other short-term borrowings |
521 | 464 | 298 | |||||||||
| Derivative liabilities |
451 | 408 | 456 | |||||||||
| Accrued expense and other liabilities |
1,400 | 1,297 | 1,421 | |||||||||
| Long-term debt |
8,213 | 7,712 | 6,666 | |||||||||
| Discontinued liabilities |
1,680 | 1,819 | 2,169 | |||||||||
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| Total liabilities |
81,277 | 80,383 | 80,378 | |||||||||
| Equity |
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| Preferred stock, Series A |
291 | 291 | 291 | |||||||||
| Common shares |
1,017 | 1,017 | 1,017 | |||||||||
| Capital surplus |
3,987 | 3,961 | 4,045 | |||||||||
| Retained earnings |
7,950 | 7,793 | 7,214 | |||||||||
| Treasury stock, at cost |
(2,452 | ) | (2,335 | ) | (2,020 | ) | ||||||
| Accumulated other comprehensive income (loss) |
(289 | ) | (324 | ) | (318 | ) | ||||||
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| Key shareholders’ equity |
10,504 | 10,403 | 10,229 | |||||||||
| Noncontrolling interests |
17 | 16 | 32 | |||||||||
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| Total equity |
10,521 | 10,419 | 10,261 | |||||||||
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| Total liabilities and equity |
$ | 91,798 | $ | 90,802 | $ | 90,639 | ||||||
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| Common shares outstanding (000) |
876,823 | 884,869 | 912,883 | |||||||||
Consolidated Statements of Income
(dollars in millions, except per share amounts)
| Three months ended | Six months ended | |||||||||||||||||||
| 6-30-14 | 3-31-14 | 6-30-13 | 6-30-14 | 6-30-13 | ||||||||||||||||
| Interest income |
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| Loans |
$ | 526 | $ | 519 | $ | 539 | $ | 1,045 | $ | 1,087 | ||||||||||
| Loans held for sale |
5 | 4 | 5 | 9 | 9 | |||||||||||||||
| Securities available for sale |
71 | 72 | 80 | 143 | 160 | |||||||||||||||
| Held-to-maturity securities |
23 | 22 | 20 | 45 | 38 | |||||||||||||||
| Trading account assets |
7 | 6 | 4 | 13 | 10 | |||||||||||||||
| Short-term investments |
1 | 1 | 1 | 2 | 3 | |||||||||||||||
| Other investments |
6 | 6 | 8 | 12 | 17 | |||||||||||||||
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| Total interest income |
639 | 630 | 657 | 1,269 | 1,324 | |||||||||||||||
| Interest expense |
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| Deposits |
31 | 32 | 42 | 63 | 87 | |||||||||||||||
| Federal funds purchased and securities sold under repurchase agreements |
— | 1 | — | 1 | 1 | |||||||||||||||
| Bank notes and other short-term borrowings |
2 | 2 | 2 | 4 | 3 | |||||||||||||||
| Long-term debt |
33 | 32 | 32 | 65 | 69 | |||||||||||||||
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| Total interest expense |
66 | 67 | 76 | 133 | 160 | |||||||||||||||
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| Net interest income |
573 | 563 | 581 | 1,136 | 1,164 | |||||||||||||||
| Provision (credit) for loan and lease losses |
10 | 6 | 28 | 16 | 83 | |||||||||||||||
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| Net interest income (expense) after provision for loan and lease losses |
563 | 557 | 553 | 1,120 | 1,081 | |||||||||||||||
| Noninterest income |
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| Trust and investment services income |
94 | 98 | 100 | 192 | 195 | |||||||||||||||
| Investment banking and debt placement fees |
99 | 84 | 84 | 183 | 163 | |||||||||||||||
| Service charges on deposit accounts |
66 | 63 | 71 | 129 | 140 | |||||||||||||||
| Operating lease income and other leasing gains |
35 | 29 | 22 | 64 | 47 | |||||||||||||||
| Corporate services income |
41 | 42 | 43 | 83 | 88 | |||||||||||||||
| Cards and payments income |
43 | 38 | 42 | 81 | 79 | |||||||||||||||
| Corporate-owned life insurance income |
28 | 26 | 31 | 54 | 61 | |||||||||||||||
| Consumer mortgage income |
2 | 2 | 6 | 4 | 13 | |||||||||||||||
| Mortgage servicing fees |
11 | 15 | 13 | 26 | 21 | |||||||||||||||
| Net gains (losses) from principal investing |
27 | 24 | 7 | 51 | 15 | |||||||||||||||
| Other income (a) |
9 | 14 | 10 | 23 | 32 | |||||||||||||||
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| Total noninterest income |
455 | 435 | 429 | 890 | 854 | |||||||||||||||
| Noninterest expense |
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| Personnel |
389 | 388 | 406 | 777 | 797 | |||||||||||||||
| Net occupancy |
68 | 64 | 72 | 132 | 136 | |||||||||||||||
| Computer processing |
41 | 38 | 39 | 79 | 78 | |||||||||||||||
| Business services and professional fees |
41 | 41 | 37 | 82 | 72 | |||||||||||||||
| Equipment |
24 | 24 | 27 | 48 | 53 | |||||||||||||||
| Operating lease expense |
10 | 10 | 11 | 20 | 23 | |||||||||||||||
| Marketing |
13 | 5 | 11 | 18 | 17 | |||||||||||||||
| FDIC assessment |
6 | 6 | 8 | 12 | 16 | |||||||||||||||
| Intangible asset amortization |
9 | 10 | 10 | 19 | 22 | |||||||||||||||
| Provision (credit) for losses on lending-related commitments |
2 | (2 | ) | 5 | — | 8 | ||||||||||||||
| OREO expense, net |
1 | 1 | 1 | 2 | 4 | |||||||||||||||
| Other expense |
85 | 77 | 84 | 162 | 166 | |||||||||||||||
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| Total noninterest expense |
689 | 662 | 711 | 1,351 | 1,392 | |||||||||||||||
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| Income (loss) from continuing operations before income taxes |
329 | 330 | 271 | 659 | 543 | |||||||||||||||
| Income taxes |
76 | 92 | 72 | 168 | 142 | |||||||||||||||
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| Income (loss) from continuing operations |
253 | 238 | 199 | 491 | 401 | |||||||||||||||
| Income (loss) from discontinued operations, net of taxes |
(28 | ) | 4 | 5 | (24 | ) | 8 | |||||||||||||
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| Net income (loss) |
225 | 242 | 204 | 467 | 409 | |||||||||||||||
| Less: Net income (loss) attributable to noncontrolling interests |
6 | — | — | 6 | 1 | |||||||||||||||
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| Net income (loss) attributable to Key |
$ | 219 | $ | 242 | $ | 204 | $ | 461 | $ | 408 | ||||||||||
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| Income (loss) from continuing operations attributable to Key common shareholders |
$ | 242 | $ | 232 | $ | 193 | $ | 474 | $ | 389 | ||||||||||
| Net income (loss) attributable to Key common shareholders |
214 | 236 | 198 | 450 | 397 | |||||||||||||||
| Per common share |
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| Income (loss) from continuing operations attributable to Key common shareholders |
$ | .28 | $ | .26 | $ | .21 | $ | .54 | $ | .42 | ||||||||||
| Income (loss) from discontinued operations, net of taxes |
(.03 | ) | — | .01 | (.03 | ) | .01 | |||||||||||||
| Net income (loss) attributable to Key common shareholders (b) |
.24 | .27 | .22 | .51 | .43 | |||||||||||||||
| Per common share — assuming dilution |
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| Income (loss) from continuing operations attributable to Key common shareholders |
$ | .27 | $ | .26 | $ | .21 | $ | .53 | $ | .42 | ||||||||||
| Income (loss) from discontinued operations, net of taxes |
(.03 | ) | — | .01 | (.03 | ) | .01 | |||||||||||||
| Net income (loss) attributable to Key common shareholders (b) |
.24 | .26 | .22 | .51 | .43 | |||||||||||||||
| Cash dividends declared per common share |
$ | .065 | $ | .055 | $ | .055 | $ | .12 | $ | .105 | ||||||||||
| Weighted-average common shares outstanding (000) |
875,298 | 884,727 | 913,736 | 879,986 | 917,008 | |||||||||||||||
| Weighted-average common shares and potential common shares outstanding (000) (c) |
902,137 | 891,890 | 918,628 | 886,684 | 922,319 | |||||||||||||||
| (a) | For each of the three months ended June 30, 2014, March 31, 2014, and June 30, 2013, net securities gains (losses) totaled less than $1 million. For the three months ended June 30, 2014, March 31, 2014, and June 30, 2013, Key did not have any impairment losses related to securities. |
| (b) | Earnings per share may not foot due to rounding. |
| (c) | Assumes conversion of stock options and/or Preferred Series A shares, as applicable. |