Attached files
| file | filename |
|---|---|
| EX-99.2 - EXHIBIT 99.2 - KEYCORP /NEW/ | key2q18confcallslidesvf.htm |
| EX-99.1 - EXHIBIT 99.1 - KEYCORP /NEW/ | a2q18earningsrelease.htm |
| 8-K - 8-K - KEYCORP /NEW/ | a2q18er8-k.htm |
Exhibit 99.3
Consolidated Balance Sheets | |||||||||||
(dollars in millions) | |||||||||||
6/30/2018 | 3/31/2018 | 6/30/2017 | |||||||||
Assets | |||||||||||
Loans | $ | 88,222 | $ | 88,089 | $ | 86,503 | |||||
Loans held for sale | 1,418 | 1,667 | 1,743 | ||||||||
Securities available for sale | 17,367 | 17,888 | 18,024 | ||||||||
Held-to-maturity securities | 12,277 | 12,189 | 10,638 | ||||||||
Trading account assets | 833 | 769 | 1,081 | ||||||||
Short-term investments | 2,646 | 1,644 | 2,522 | ||||||||
Other investments | 709 | 715 | 732 | ||||||||
Total earning assets | 123,472 | 122,961 | 121,243 | ||||||||
Allowance for loan and lease losses | (887 | ) | (881 | ) | (870 | ) | |||||
Cash and due from banks | 784 | 643 | 601 | ||||||||
Premises and equipment | 892 | 916 | 919 | ||||||||
Operating lease assets | 903 | 838 | 691 | ||||||||
Goodwill | 2,516 | 2,538 | 2,464 | ||||||||
Other intangible assets | 361 | 387 | 435 | ||||||||
Corporate-owned life insurance | 4,147 | 4,142 | 4,100 | ||||||||
Accrued income and other assets | 4,382 | 4,216 | 4,783 | ||||||||
Discontinued assets | 1,222 | 1,289 | 1,458 | ||||||||
Total assets | $ | 137,792 | $ | 137,049 | $ | 135,824 | |||||
Liabilities | |||||||||||
Deposits in domestic offices: | |||||||||||
NOW and money market deposit accounts | $ | 55,059 | $ | 54,606 | $ | 53,342 | |||||
Savings deposits | 6,199 | 6,321 | 7,056 | ||||||||
Certificates of deposit ($100,000 or more) | 7,547 | 7,295 | 6,286 | ||||||||
Other time deposits | 4,943 | 4,928 | 4,605 | ||||||||
Total interest-bearing deposits | 73,748 | 73,150 | 71,289 | ||||||||
Noninterest-bearing deposits | 30,800 | 31,601 | 31,532 | ||||||||
Total deposits | 104,548 | 104,751 | 102,821 | ||||||||
Federal funds purchased and securities sold under repurchase agreements | 1,667 | 616 | 1,780 | ||||||||
Bank notes and other short-term borrowings | 639 | 1,133 | 924 | ||||||||
Accrued expense and other liabilities | 1,983 | 1,854 | 1,783 | ||||||||
Long-term debt | 13,853 | 13,749 | 13,261 | ||||||||
Total liabilities | 122,690 | 122,103 | 120,569 | ||||||||
Equity | |||||||||||
Preferred stock | 1,025 | 1,025 | 1,025 | ||||||||
Common shares | 1,257 | 1,257 | 1,257 | ||||||||
Capital surplus | 6,315 | 6,289 | 6,310 | ||||||||
Retained earnings | 10,970 | 10,624 | 9,878 | ||||||||
Treasury stock, at cost | (3,382 | ) | (3,260 | ) | (2,711 | ) | |||||
Accumulated other comprehensive income (loss) | (1,085 | ) | (991 | ) | (506 | ) | |||||
Key shareholders’ equity | 15,100 | 14,944 | 15,253 | ||||||||
Noncontrolling interests | 2 | 2 | 2 | ||||||||
Total equity | 15,102 | 14,946 | 15,255 | ||||||||
Total liabilities and equity | $ | 137,792 | $ | 137,049 | $ | 135,824 | |||||
Common shares outstanding (000) | 1,058,944 | 1,064,939 | 1,092,739 | ||||||||
Consolidated Statements of Income | ||||||||||||||||||
(dollars in millions, except per share amounts) | ||||||||||||||||||
Three months ended | Six months ended | |||||||||||||||||
6/30/2018 | 3/31/2018 | 6/30/2017 | 6/30/2018 | 6/30/2017 | ||||||||||||||
Interest income | ||||||||||||||||||
Loans | $ | 1,000 | $ | 940 | $ | 948 | $ | 1,940 | $ | 1,825 | ||||||||
Loans held for sale | 16 | 12 | 9 | 28 | 22 | |||||||||||||
Securities available for sale | 97 | 95 | 90 | 192 | 185 | |||||||||||||
Held-to-maturity securities | 72 | 69 | 55 | 141 | 106 | |||||||||||||
Trading account assets | 7 | 7 | 7 | 14 | 14 | |||||||||||||
Short-term investments | 8 | 8 | 5 | 16 | 8 | |||||||||||||
Other investments | 5 | 6 | 3 | 11 | 7 | |||||||||||||
Total interest income | 1,205 | 1,137 | 1,117 | 2,342 | 2,167 | |||||||||||||
Interest expense | ||||||||||||||||||
Deposits | 112 | 91 | 66 | 203 | 124 | |||||||||||||
Federal funds purchased and securities sold under repurchase agreements | 5 | 4 | — | 9 | 1 | |||||||||||||
Bank notes and other short-term borrowings | 7 | 6 | 4 | 13 | 9 | |||||||||||||
Long-term debt | 102 | 92 | 74 | 194 | 142 | |||||||||||||
Total interest expense | 226 | 193 | 144 | 419 | 276 | |||||||||||||
Net interest income | 979 | 944 | 973 | 1,923 | 1,891 | |||||||||||||
Provision for credit losses | 64 | 61 | 66 | 125 | 129 | |||||||||||||
Net interest income after provision for credit losses | 915 | 883 | 907 | 1,798 | 1,762 | |||||||||||||
Noninterest income | ||||||||||||||||||
Trust and investment services income | 128 | 133 | 134 | 261 | 269 | |||||||||||||
Investment banking and debt placement fees | 155 | 143 | 135 | 298 | 262 | |||||||||||||
Service charges on deposit accounts | 91 | 89 | 90 | 180 | 177 | |||||||||||||
Operating lease income and other leasing gains | (6 | ) | 32 | 30 | 26 | 53 | ||||||||||||
Corporate services income | 61 | 62 | 55 | 123 | 109 | |||||||||||||
Cards and payments income | 71 | 62 | 70 | 133 | 135 | |||||||||||||
Corporate-owned life insurance income | 32 | 32 | 33 | 64 | 63 | |||||||||||||
Consumer mortgage income | 7 | 7 | 6 | 14 | 12 | |||||||||||||
Mortgage servicing fees | 22 | 20 | 15 | 42 | 33 | |||||||||||||
Other income (a) | 99 | 21 | 85 | 120 | 117 | |||||||||||||
Total noninterest income | 660 | 601 | 653 | 1,261 | 1,230 | |||||||||||||
Noninterest expense | ||||||||||||||||||
Personnel | 586 | 594 | 553 | 1,180 | 1,110 | |||||||||||||
Net occupancy | 79 | 78 | 78 | 157 | 165 | |||||||||||||
Computer processing | 51 | 52 | 55 | 103 | 115 | |||||||||||||
Business services and professional fees | 51 | 41 | 45 | 92 | 91 | |||||||||||||
Equipment | 26 | 26 | 27 | 52 | 54 | |||||||||||||
Operating lease expense | 30 | 27 | 21 | 57 | 40 | |||||||||||||
Marketing | 26 | 25 | 30 | 51 | 51 | |||||||||||||
FDIC assessment | 21 | 21 | 21 | 42 | 41 | |||||||||||||
Intangible asset amortization | 25 | 29 | 22 | 54 | 44 | |||||||||||||
OREO expense, net | — | 2 | 3 | 2 | 5 | |||||||||||||
Other expense | 98 | 111 | 140 | 209 | 292 | |||||||||||||
Total noninterest expense | 993 | 1,006 | 995 | 1,999 | 2,008 | |||||||||||||
Income (loss) from continuing operations before income taxes | 582 | 478 | 565 | 1,060 | 984 | |||||||||||||
Income taxes | 103 | 62 | 158 | 165 | 252 | |||||||||||||
Income (loss) from continuing operations | 479 | 416 | 407 | 895 | 732 | |||||||||||||
Income (loss) from discontinued operations, net of taxes | 3 | 2 | 5 | 5 | 5 | |||||||||||||
Net income (loss) | 482 | 418 | 412 | 900 | 737 | |||||||||||||
Less: Net income (loss) attributable to noncontrolling interests | — | — | — | — | 1 | |||||||||||||
Net income (loss) attributable to Key | $ | 482 | $ | 418 | $ | 412 | $ | 900 | $ | 736 | ||||||||
Income (loss) from continuing operations attributable to Key common shareholders | $ | 464 | $ | 402 | $ | 393 | $ | 866 | $ | 689 | ||||||||
Net income (loss) attributable to Key common shareholders | 467 | 404 | 398 | 871 | 694 | |||||||||||||
Per common share | ||||||||||||||||||
Income (loss) from continuing operations attributable to Key common shareholders | $ | .44 | $ | .38 | $ | .36 | $ | .82 | $ | .64 | ||||||||
Income (loss) from discontinued operations, net of taxes | — | — | — | — | — | |||||||||||||
Net income (loss) attributable to Key common shareholders (b) | .44 | .38 | .37 | .82 | .64 | |||||||||||||
Per common share — assuming dilution | ||||||||||||||||||
Income (loss) from continuing operations attributable to Key common shareholders | $ | .44 | $ | .38 | $ | .36 | $ | .81 | $ | .63 | ||||||||
Income (loss) from discontinued operations, net of taxes | — | — | — | — | — | |||||||||||||
Net income (loss) attributable to Key common shareholders (b) | .44 | .38 | .36 | .81 | .63 | |||||||||||||
Cash dividends declared per common share | $ | .12 | $ | .105 | $ | .095 | $ | .225 | $ | .18 | ||||||||
Weighted-average common shares outstanding (000) | 1,052,652 | 1,056,037 | 1,076,203 | 1,054,378 | 1,083,486 | |||||||||||||
Effect of common share options and other stock awards | 13,141 | 15,749 | 16,836 | 14,561 | 15,808 | |||||||||||||
Weighted-average common shares and potential common shares outstanding (000) (c) | 1,065,793 | 1,071,786 | 1,093,039 | 1,068,939 | 1,099,294 | |||||||||||||
(a) | For the three months ended June 30, 2018 and March 31, 2018 net securities gains (losses) totaled less than $1 million. For the three months ended June 30, 2017, net securities gains totaled $1 million. For the three months ended June 30, 2018, March 31, 2018, and June 30, 2017, 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. |