Attached files
| file | filename |
|---|---|
| EX-99.1 - EXHIBIT 99.1 - KEYCORP /NEW/ | keycorp2q17earningsrelease.htm |
| 8-K - 8-K - KEYCORP /NEW/ | keycorp2q17er8-k.htm |
| EX-99.2 - EXHIBIT 99.2 - KEYCORP /NEW/ | key2q17confcallslidesvf.htm |
Exhibit 99.3
Consolidated Balance Sheets | |||||||||||
(dollars in millions) | |||||||||||
6/30/2017 | 3/31/2017 | 6/30/2016 | |||||||||
Assets | |||||||||||
Loans | $ | 86,503 | $ | 86,125 | $ | 62,098 | |||||
Loans held for sale | 1,743 | 1,384 | 442 | ||||||||
Securities available for sale | 18,024 | 18,431 | 14,552 | ||||||||
Held-to-maturity securities | 10,638 | 10,186 | 4,832 | ||||||||
Trading account assets | 1,081 | 921 | 965 | ||||||||
Short-term investments | 2,522 | 2,525 | 6,599 | ||||||||
Other investments | 732 | 689 | 577 | ||||||||
Total earning assets | 121,243 | 120,261 | 90,065 | ||||||||
Allowance for loan and lease losses | (870 | ) | (870 | ) | (854 | ) | |||||
Cash and due from banks | 601 | 677 | 496 | ||||||||
Premises and equipment | 919 | 935 | 742 | ||||||||
Operating lease assets | 691 | 563 | 399 | ||||||||
Goodwill | 2,464 | 2,427 | 1,060 | ||||||||
Other intangible assets | 435 | 362 | 50 | ||||||||
Corporate-owned life insurance | 4,100 | 4,087 | 3,568 | ||||||||
Derivative assets | 636 | 578 | 1,234 | ||||||||
Accrued income and other assets | 4,147 | 4,064 | 2,673 | ||||||||
Discontinued assets | 1,458 | 1,520 | 1,717 | ||||||||
Total assets | $ | 135,824 | $ | 134,476 | $ | 101,150 | |||||
Liabilities | |||||||||||
Deposits in domestic offices: | |||||||||||
NOW and money market deposit accounts | $ | 53,342 | $ | 55,095 | $ | 40,195 | |||||
Savings deposits | 7,056 | 6,306 | 2,355 | ||||||||
Certificates of deposit ($100,000 or more) | 6,286 | 5,859 | 3,381 | ||||||||
Other time deposits | 4,605 | 4,694 | 3,267 | ||||||||
Total interest-bearing deposits | 71,289 | 71,954 | 49,198 | ||||||||
Noninterest-bearing deposits | 31,532 | 32,028 | 26,127 | ||||||||
Total deposits | 102,821 | 103,982 | 75,325 | ||||||||
Federal funds purchased and securities sold under repurchase agreements | 1,780 | 442 | 360 | ||||||||
Bank notes and other short-term borrowings | 924 | 943 | 687 | ||||||||
Derivative liabilities | 308 | 255 | 746 | ||||||||
Accrued expense and other liabilities | 1,475 | 1,552 | 1,326 | ||||||||
Long-term debt | 13,261 | 12,324 | 11,388 | ||||||||
Total liabilities | 120,569 | 119,498 | 89,832 | ||||||||
Equity | |||||||||||
Preferred stock | 1,025 | 1,025 | 290 | ||||||||
Common shares | 1,257 | 1,257 | 1,017 | ||||||||
Capital surplus | 6,310 | 6,287 | 3,835 | ||||||||
Retained earnings | 9,878 | 9,584 | 9,166 | ||||||||
Treasury stock, at cost | (2,711 | ) | (2,623 | ) | (2,881 | ) | |||||
Accumulated other comprehensive income (loss) | (506 | ) | (554 | ) | (114 | ) | |||||
Key shareholders’ equity | 15,253 | 14,976 | 11,313 | ||||||||
Noncontrolling interests | 2 | 2 | 5 | ||||||||
Total equity | 15,255 | 14,978 | 11,318 | ||||||||
Total liabilities and equity | $ | 135,824 | $ | 134,476 | $ | 101,150 | |||||
Common shares outstanding (000) | 1,092,739 | 1,097,479 | 842,703 | ||||||||
Consolidated Statements of Income | ||||||||||||||||||
(dollars in millions, except per share amounts) | ||||||||||||||||||
Three months ended | Six months ended | |||||||||||||||||
6/30/2017 | 3/31/2017 | 6/30/2016 | 6/30/2017 | 6/30/2016 | ||||||||||||||
Interest income | ||||||||||||||||||
Loans | $ | 948 | $ | 877 | $ | 567 | $ | 1,825 | $ | 1,129 | ||||||||
Loans held for sale | 9 | 13 | 5 | 22 | 13 | |||||||||||||
Securities available for sale | 90 | 95 | 74 | 185 | 149 | |||||||||||||
Held-to-maturity securities | 55 | 51 | 24 | 106 | 48 | |||||||||||||
Trading account assets | 7 | 7 | 6 | 14 | 13 | |||||||||||||
Short-term investments | 5 | 3 | 6 | 8 | 10 | |||||||||||||
Other investments | 3 | 4 | 2 | 7 | 5 | |||||||||||||
Total interest income | 1,117 | 1,050 | 684 | 2,167 | 1,367 | |||||||||||||
Interest expense | ||||||||||||||||||
Deposits | 66 | 58 | 34 | 124 | 65 | |||||||||||||
Federal funds purchased and securities sold under repurchase agreements | — | 1 | — | 1 | — | |||||||||||||
Bank notes and other short-term borrowings | 4 | 5 | 3 | 9 | 5 | |||||||||||||
Long-term debt | 74 | 68 | 50 | 142 | 96 | |||||||||||||
Total interest expense | 144 | 132 | 87 | 276 | 166 | |||||||||||||
Net interest income | 973 | 918 | 597 | 1,891 | 1,201 | |||||||||||||
Provision for credit losses | 66 | 63 | 52 | 129 | 141 | |||||||||||||
Net interest income after provision for credit losses | 907 | 855 | 545 | 1,762 | 1,060 | |||||||||||||
Noninterest income | ||||||||||||||||||
Trust and investment services income | 134 | 135 | 110 | 269 | 219 | |||||||||||||
Investment banking and debt placement fees | 135 | 127 | 98 | 262 | 169 | |||||||||||||
Service charges on deposit accounts | 90 | 87 | 68 | 177 | 133 | |||||||||||||
Operating lease income and other leasing gains | 30 | 23 | 18 | 53 | 35 | |||||||||||||
Corporate services income | 55 | 54 | 53 | 109 | 103 | |||||||||||||
Cards and payments income | 70 | 65 | 52 | 135 | 98 | |||||||||||||
Corporate-owned life insurance income | 33 | 30 | 28 | 63 | 56 | |||||||||||||
Consumer mortgage income | 6 | 6 | 3 | 12 | 5 | |||||||||||||
Mortgage servicing fees | 15 | 18 | 10 | 33 | 22 | |||||||||||||
Net gains (losses) from principal investing | — | 1 | 11 | 1 | 11 | |||||||||||||
Other income (a) | 85 | 31 | 22 | 116 | 53 | |||||||||||||
Total noninterest income | 653 | 577 | 473 | 1,230 | #REF! | |||||||||||||
Noninterest expense | ||||||||||||||||||
Personnel | 551 | 556 | 427 | 1,107 | 831 | |||||||||||||
Net occupancy | 78 | 87 | 59 | 165 | 120 | |||||||||||||
Computer processing | 55 | 60 | 45 | 115 | 88 | |||||||||||||
Business services and professional fees | 45 | 46 | 40 | 91 | 81 | |||||||||||||
Equipment | 27 | 27 | 21 | 54 | 42 | |||||||||||||
Operating lease expense | 21 | 19 | 14 | 40 | 27 | |||||||||||||
Marketing | 30 | 21 | 22 | 51 | 34 | |||||||||||||
FDIC assessment | 21 | 20 | 8 | 41 | 17 | |||||||||||||
Intangible asset amortization | 22 | 22 | 7 | 44 | 15 | |||||||||||||
OREO expense, net | 3 | 2 | 2 | 5 | 3 | |||||||||||||
Other expense | 142 | 153 | 106 | 295 | 196 | |||||||||||||
Total noninterest expense | 995 | 1,013 | 751 | 2,008 | 2,840 | |||||||||||||
Income (loss) from continuing operations before income taxes | 565 | 419 | 267 | 984 | 510 | |||||||||||||
Income taxes | 158 | 94 | 69 | 252 | 125 | |||||||||||||
Income (loss) from continuing operations | 407 | 325 | 198 | 732 | 919 | |||||||||||||
Income (loss) from discontinued operations, net of taxes | 5 | — | 3 | 5 | 4 | |||||||||||||
Net income (loss) | 412 | 325 | 201 | 737 | 920 | |||||||||||||
Less: Net income (loss) attributable to noncontrolling interests | — | 1 | (1 | ) | 1 | (1 | ) | |||||||||||
Net income (loss) attributable to Key | $ | 412 | $ | 324 | $ | 202 | $ | 736 | $ | 916 | ||||||||
Income (loss) from continuing operations attributable to Key common shareholders | $ | 393 | $ | 296 | $ | 193 | $ | 689 | $ | 375 | ||||||||
Net income (loss) attributable to Key common shareholders | 398 | 296 | 196 | 694 | 379 | |||||||||||||
Per common share | ||||||||||||||||||
Income (loss) from continuing operations attributable to Key common shareholders | $ | .36 | $ | .28 | $ | .23 | $ | .64 | $ | .45 | ||||||||
Income (loss) from discontinued operations, net of taxes | — | — | — | — | — | |||||||||||||
Net income (loss) attributable to Key common shareholders (b) | .37 | .28 | .23 | .64 | .45 | |||||||||||||
Per common share — assuming dilution | ||||||||||||||||||
Income (loss) from continuing operations attributable to Key common shareholders | $ | .36 | $ | .27 | $ | .23 | $ | .63 | $ | .44 | ||||||||
Income (loss) from discontinued operations, net of taxes | — | — | — | — | — | |||||||||||||
Net income (loss) attributable to Key common shareholders (b) | .36 | .27 | .23 | .63 | .45 | |||||||||||||
Cash dividends declared per common share | $ | .095 | $ | .085 | $ | .085 | $ | .18 | $ | .16 | ||||||||
Weighted-average common shares outstanding (000) | 1,076,203 | 1,068,609 | 831,899 | 1,083,486 | 829,640 | |||||||||||||
Effect of common share options and other stock awards | 16,836 | 17,931 | 7,733 | 15,808 | 7,138 | |||||||||||||
Weighted-average common shares and potential common shares outstanding (000) (c) | 1,093,039 | 1,086,540 | 838,496 | 1,099,294 | 844,489 | |||||||||||||
(a) | For the three months ended June 30, 2017, net securities gains (losses) totaled $1 million. For the three months ended March 31, 2017, net securities gains (losses) totaled $1 million. For the three months ended June 30, 2016, net securities gains (losses) totaled less than $1 million. For the three months ended June 30, 2017, March 31, 2017, and June 30, 2016, Key did not have any impairment losses related to securities. | |||||||||||||||||
(b) | For the twelve months ended December 31, 2016 and December 31, 2015, net securities gains (losses) totaled less than $1 million. For the twelve months ended December 31, 2016, and December 31,2015, Key did not have any impairment losses related to securities. | |||||||||||||||||
(b) | Earnings per share may not foot due to rounding. | |||||||||||||||||
(c) | Assumes conversion of common share options and other stock awards and/or convertible preferred stock, as applicable. | |||||||||||||||||