KEYCORP /NEW/ - FORM 8-K - EX-99.3

Attached files

file	filename
8-K - FORM 8-K - KEYCORP /NEW/	d854267d8k.htm
EX-99.2 - EX-99.2 - KEYCORP /NEW/	d854267dex992.htm
EX-99.1 - EX-99.1 - KEYCORP /NEW/	d854267dex991.htm

Exhibit 99.3

Consolidated Balance Sheets

(dollars in millions)


	12-31-14			9-30-14			12-31-13
Assets
Loans	$	57,381		$	56,155		$	54,457
Loans held for sale		734			784			611
Securities available for sale		13,360			12,245			12,346
Held-to-maturity securities		5,015			4,997			4,756
Trading account assets		750			965			738
Short-term investments		4,269			2,342			5,590
Other investments		760			822			969

Total earning assets		82,269			78,310			79,467
Allowance for loan and lease losses		(794	)		(804	)		(848	)
Cash and due from banks		653			651			617
Premises and equipment		841			832			885
Operating lease assets		330			304			305
Goodwill		1,057			1,051			979
Other intangible assets		101			126			127
Corporate-owned life insurance		3,479			3,456			3,408
Derivative assets		609			413			407
Accrued income and other assets		2,952			3,024			3,015
Discontinued assets		2,324			2,421			4,572

Total assets	$	93,821		$	89,784		$	92,934


Liabilities
Deposits in domestic offices:
NOW and money market deposit accounts	$	34,536		$	33,941		$	33,952
Savings deposits		2,371			2,390			2,472
Certificates of deposit ($100,000 or more)		2,040			2,533			2,631
Other time deposits		3,259			3,338			3,648

Total interest-bearing deposits		42,206			42,202			42,703
Noninterest-bearing deposits		29,228			25,697			26,001
Deposits in foreign office — interest-bearing		564			557			558

Total deposits		71,998			68,456			69,262
Federal funds purchased and securities sold under repurchase agreements		575			657			1,534
Bank notes and other short-term borrowings		423			996			343
Derivative liabilities		784			384			414
Accrued expense and other liabilities		1,621			1,613			1,557
Long-term debt		7,875			7,172			7,650
Discontinued liabilities		3			3			1,854

Total liabilities		83,279			79,281			82,614

Equity
Preferred stock, Series A		291			291			291
Common shares		1,017			1,017			1,017
Capital surplus		3,986			3,984			4,022
Retained earnings		8,273			8,082			7,606
Treasury stock, at cost		(2,681	)		(2,563	)		(2,281	)
Accumulated other comprehensive income (loss)		(356	)		(325	)		(352	)

Key shareholders’ equity		10,530			10,486			10,303
Noncontrolling interests		12			17			17

Total equity		10,542			10,503			10,320

Total liabilities and equity	$	93,821		$	89,784		$	92,934


Common shares outstanding (000)		859,403			868,477			890,724

Consolidated Statements of Income

(dollars in millions, except per share amounts)


	Three months ended								Twelve months ended
	12-31-14		9-30-14			12-31-13			12-31-14			12-31-13
Interest income
Loans	$	534	$	531		$	532		$	2,110		$	2,151
Loans held for sale		8		4			6			21			20
Securities available for sale		67		67			75			277			311
Held-to-maturity securities		23		25			22			93			82
Trading account assets		6		6			6			25			21
Short-term investments		2		2			2			6			6
Other investments		6		4			6			22			29

Total interest income		646		639			649			2,554			2,620

Interest expense
Deposits		26		28			34			117			158
Federal funds purchased and securities sold under repurchase agreements		—		1			—			2			2
Bank notes and other short-term borrowings		3		2			3			9			8
Long-term debt		35		33			29			133			127

Total interest expense		64		64			66			261			295

Net interest income		582		575			583			2,293			2,325
Provision (credit) for loan and lease losses		22		21			19			59			130

Net interest income (expense) after provision for loan and lease losses		560		554			564			2,234			2,195

Noninterest income
Trust and investment services income		112		99			98			403			393
Investment banking and debt placement fees		126		88			84			397			333
Service charges on deposit accounts		64		68			68			261			281
Operating lease income and other leasing gains		15		17			26			96			117
Corporate services income		53		42			40			178			172
Cards and payments income		43		42			40			166			162
Corporate-owned life insurance income		38		26			33			118			120
Consumer mortgage income		3		3			3			10			19
Mortgage servicing fees		11		9			22			46			58
Net gains (losses) from principal investing		18		9			20			78			52
Other income ^{(a), (b)}		7		14			19			44			59

Total noninterest income		490		417			453			1,797			1,766

Noninterest expense
Personnel		409		405			398			1,591			1,609
Net occupancy		63		66			73			261			275
Computer processing		40		39			40			158			156
Business services and professional fees		38		36			42			156			151
Equipment		23		25			26			96			104
Operating lease expense		11		11			10			42			47
Marketing		16		15			18			49			51
FDIC assessment		9		9			7			30			30
Intangible asset amortization		10		10			10			39			44
Provision (credit) for losses on lending-related commitments		—		(2	)		(3	)		(2	)		8
OREO expense, net		2		1			2			5			7
Other expense		83		89			89			334			338

Total noninterest expense		704		704			712			2,759			2,820

Income (loss) from continuing operations before income taxes		346		267			305			1,272			1,141
Income taxes		94		64			70			326			271

Income (loss) from continuing operations		252		203			235			946			870
Income (loss) from discontinued operations, net of taxes		2		(17	)		(5	)		(39	)		40

Net income (loss)		254		186			230			907			910
Less: Net income (loss) attributable to noncontrolling interests		1		—			—			7			—

Net income (loss) attributable to Key	$	253	$	186		$	230		$	900		$	910


Income (loss) from continuing operations attributable to Key common shareholders	$	246	$	197		$	229		$	917		$	847
Net income (loss) attributable to Key common shareholders		248		180			224			878			887

Per common share
Income (loss) from continuing operations attributable to Key common shareholders	$	.29	$	.23		$	.26		$	1.05		$	.93
Income (loss) from discontinued operations, net of taxes		—		(.02	)		(.01	)		(.04	)		.04
Net income (loss) attributable to Key common shareholders ^(c)		.29		.21			.25			1.01			.98

Per common share — assuming dilution
Income (loss) from continuing operations attributable to Key common shareholders	$	.28	$	.23		$	.26		$	1.04		$	.93
Income (loss) from discontinued operations, net of taxes		—		(.02	)		(.01	)		(.04	)		.04
Net income (loss) attributable to Key common shareholders ^(c)		.28		.21			.25			.99			.97

Cash dividends declared per common share	$	.065	$	.065		$	.055		$	.25		$	.215

Weighted-average common shares outstanding (000)		858,811		867,350			890,516			871,464			906,524
Weighted-average common shares and potential common shares outstanding (000) ^(d)		886,186		874,122			897,712			878,199			912,571

(a)

For the three months ended December 31, 2014, September 30, 2014, and December 31, 2013, net securities gains (losses) totaled less than $1 million, less than $1 million, and $1 million, respectively. For the three months ended December 31, 2014, September 30, 2014, and December 31, 2013, Key did not have any impairment losses related to securities.

(b)	For the twelve months ended December 31, 2014, and December 31, 2013, net securities gains (losses) totaled less than $1 million and $1 million, respectively. For the twelve months ended December 31, 2014, and December 31, 2013, Key did not have any impairment losses related to securities.

(c)	Earnings per share may not foot due to rounding.

(d)	Assumes conversion of common share options and other stock awards and/or convertible preferred stock, as applicable.

KEYCORP /NEW/ - FORM 8-K - EX-99.3 - January 22, 2015

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KEYCORP /NEW/ Reports