Attached files
| file | filename |
|---|---|
| EX-99.2 - EXHIBIT 99.2 - KEYCORP /NEW/ | key4q18confcallslidesvf.htm |
| EX-99.1 - EXHIBIT 99.1 - KEYCORP /NEW/ | a4q18earningsreleaseclassic.htm |
| 8-K - 8-K - KEYCORP /NEW/ | a4q18er8-kclassic.htm |
Exhibit 99.3
Consolidated Balance Sheets | |||||||||||
(dollars in millions) | |||||||||||
12/31/2018 | 9/30/2018 | 12/31/2017 | |||||||||
Assets | |||||||||||
Loans | $ | 89,552 | $ | 89,268 | $ | 86,405 | |||||
Loans held for sale | 1,227 | 1,618 | 1,107 | ||||||||
Securities available for sale | 19,428 | 18,341 | 18,139 | ||||||||
Held-to-maturity securities | 11,519 | 11,869 | 11,830 | ||||||||
Trading account assets | 849 | 958 | 836 | ||||||||
Short-term investments | 2,562 | 2,272 | 4,447 | ||||||||
Other investments | 666 | 681 | 726 | ||||||||
Total earning assets | 125,803 | 125,007 | 123,490 | ||||||||
Allowance for loan and lease losses | (883 | ) | (887 | ) | (877 | ) | |||||
Cash and due from banks | 678 | 319 | 671 | ||||||||
Premises and equipment | 882 | 891 | 930 | ||||||||
Operating lease assets | 993 | 930 | 821 | ||||||||
Goodwill | 2,516 | 2,516 | 2,538 | ||||||||
Other intangible assets | 316 | 338 | 416 | ||||||||
Corporate-owned life insurance | 4,171 | 4,156 | 4,132 | ||||||||
Accrued income and other assets | 4,037 | 4,378 | 4,237 | ||||||||
Discontinued assets | 1,100 | 1,157 | 1,340 | ||||||||
Total assets | $ | 139,613 | $ | 138,805 | $ | 137,698 | |||||
Liabilities | |||||||||||
Deposits in domestic offices: | |||||||||||
NOW and money market deposit accounts | $ | 59,918 | $ | 57,219 | $ | 53,627 | |||||
Savings deposits | 4,854 | 4,948 | 6,296 | ||||||||
Certificates of deposit ($100,000 or more) | 7,913 | 8,453 | 6,849 | ||||||||
Other time deposits | 5,332 | 5,130 | 4,798 | ||||||||
Total interest-bearing deposits | 78,017 | 75,750 | 71,570 | ||||||||
Noninterest-bearing deposits | 29,292 | 30,030 | 33,665 | ||||||||
Total deposits | 107,309 | 105,780 | 105,235 | ||||||||
Federal funds purchased and securities sold under repurchase agreements | 319 | 1,285 | 377 | ||||||||
Bank notes and other short-term borrowings | 544 | 637 | 634 | ||||||||
Accrued expense and other liabilities | 2,113 | 2,044 | 2,094 | ||||||||
Long-term debt | 13,732 | 13,849 | 14,333 | ||||||||
Total liabilities | 124,017 | 123,595 | 122,673 | ||||||||
Equity | |||||||||||
Preferred stock | 1,450 | 1,450 | 1,025 | ||||||||
Common shares | 1,257 | 1,257 | 1,257 | ||||||||
Capital surplus | 6,331 | 6,315 | 6,335 | ||||||||
Retained earnings | 11,556 | 11,262 | 10,335 | ||||||||
Treasury stock, at cost | (4,181 | ) | (3,910 | ) | (3,150 | ) | |||||
Accumulated other comprehensive income (loss) | (818 | ) | (1,166 | ) | (779 | ) | |||||
Key shareholders’ equity | 15,595 | 15,208 | 15,023 | ||||||||
Noncontrolling interests | 1 | 2 | 2 | ||||||||
Total equity | 15,596 | 15,210 | 15,025 | ||||||||
Total liabilities and equity | $ | 139,613 | $ | 138,805 | $ | 137,698 | |||||
Common shares outstanding (000) | 1,019,503 | 1,034,287 | 1,069,084 | ||||||||
Consolidated Statements of Income | ||||||||||||||||||
(dollars in millions, except per share amounts) | ||||||||||||||||||
Three months ended | Twelve months ended | |||||||||||||||||
12/31/2018 | 9/30/2018 | 12/31/2017 | 12/31/2018 | 12/31/2017 | ||||||||||||||
Interest income | ||||||||||||||||||
Loans | $ | 1,058 | $ | 1,025 | $ | 924 | $ | 4,023 | $ | 3,677 | ||||||||
Loans held for sale | 26 | 12 | 13 | 66 | 52 | |||||||||||||
Securities available for sale | 115 | 102 | 93 | 409 | 369 | |||||||||||||
Held-to-maturity securities | 71 | 72 | 61 | 284 | 222 | |||||||||||||
Trading account assets | 8 | 7 | 6 | 29 | 27 | |||||||||||||
Short-term investments | 15 | 15 | 12 | 46 | 26 | |||||||||||||
Other investments | 4 | 6 | 5 | 21 | 17 | |||||||||||||
Total interest income | 1,297 | 1,239 | 1,114 | 4,878 | 4,390 | |||||||||||||
Interest expense | ||||||||||||||||||
Deposits | 174 | 140 | 82 | 517 | 278 | |||||||||||||
Federal funds purchased and securities sold under repurchase agreements | 1 | 1 | — | 11 | 1 | |||||||||||||
Bank notes and other short-term borrowings | 4 | 4 | 3 | 21 | 15 | |||||||||||||
Long-term debt | 118 | 108 | 91 | 420 | 319 | |||||||||||||
Total interest expense | 297 | 253 | 176 | 969 | 613 | |||||||||||||
Net interest income | 1,000 | 986 | 938 | 3,909 | 3,777 | |||||||||||||
Provision for credit losses | 59 | 62 | 49 | 246 | 229 | |||||||||||||
Net interest income after provision for credit losses | 941 | 924 | 889 | 3,663 | 3,548 | |||||||||||||
Noninterest income | ||||||||||||||||||
Trust and investment services income | 121 | 117 | 131 | 499 | 535 | |||||||||||||
Investment banking and debt placement fees | 186 | 166 | 200 | 650 | 603 | |||||||||||||
Service charges on deposit accounts | 84 | 85 | 89 | 349 | 357 | |||||||||||||
Operating lease income and other leasing gains | 28 | 35 | 27 | 89 | 96 | |||||||||||||
Corporate services income | 58 | 52 | 56 | 233 | 219 | |||||||||||||
Cards and payments income | 68 | 69 | 77 | 270 | 287 | |||||||||||||
Corporate-owned life insurance income | 39 | 34 | 37 | 137 | 131 | |||||||||||||
Consumer mortgage income | 7 | 9 | 7 | 30 | 26 | |||||||||||||
Mortgage servicing fees | 21 | 19 | 17 | 82 | 71 | |||||||||||||
Other income (a) | 33 | 23 | 15 | 176 | 153 | |||||||||||||
Total noninterest income | 645 | 609 | 656 | 2,515 | 2,478 | |||||||||||||
Noninterest expense | ||||||||||||||||||
Personnel | 576 | 553 | 609 | 2,309 | 2,278 | |||||||||||||
Net occupancy | 75 | 76 | 92 | 308 | 331 | |||||||||||||
Computer processing | 55 | 52 | 54 | 210 | 225 | |||||||||||||
Business services and professional fees | 49 | 43 | 52 | 184 | 192 | |||||||||||||
Equipment | 26 | 27 | 31 | 105 | 114 | |||||||||||||
Operating lease expense | 32 | 31 | 28 | 120 | 92 | |||||||||||||
Marketing | 25 | 26 | 35 | 102 | 120 | |||||||||||||
FDIC assessment | 9 | 21 | 20 | 72 | 82 | |||||||||||||
Intangible asset amortization | 22 | 23 | 26 | 99 | 95 | |||||||||||||
OREO expense, net | 1 | 3 | 3 | 6 | 11 | |||||||||||||
Other expense | 142 | 109 | 148 | 460 | 558 | |||||||||||||
Total noninterest expense | 1,012 | 964 | 1,098 | 3,975 | 4,098 | |||||||||||||
Income (loss) from continuing operations before income taxes | 574 | 569 | 447 | 2,203 | 1,928 | |||||||||||||
Income taxes | 92 | 87 | 251 | 344 | 637 | |||||||||||||
Income (loss) from continuing operations | 482 | 482 | 196 | 1,859 | 1,291 | |||||||||||||
Income (loss) from discontinued operations, net of taxes | 2 | — | 1 | 7 | 7 | |||||||||||||
Net income (loss) | 484 | 482 | 197 | 1,866 | 1,298 | |||||||||||||
Less: Net income (loss) attributable to noncontrolling interests | — | — | 1 | — | 2 | |||||||||||||
Net income (loss) attributable to Key | $ | 484 | $ | 482 | $ | 196 | $ | 1,866 | $ | 1,296 | ||||||||
Income (loss) from continuing operations attributable to Key common shareholders | $ | 459 | $ | 468 | $ | 181 | $ | 1,793 | $ | 1,219 | ||||||||
Net income (loss) attributable to Key common shareholders | 461 | 468 | 182 | 1,800 | 1,226 | |||||||||||||
Per common share | ||||||||||||||||||
Income (loss) from continuing operations attributable to Key common shareholders | $ | .45 | $ | .45 | $ | .17 | $ | 1.72 | $ | 1.13 | ||||||||
Income (loss) from discontinued operations, net of taxes | — | — | — | .01 | .01 | |||||||||||||
Net income (loss) attributable to Key common shareholders (b) | .45 | .45 | .17 | 1.73 | 1.14 | |||||||||||||
Per common share — assuming dilution | ||||||||||||||||||
Income (loss) from continuing operations attributable to Key common shareholders | $ | .45 | $ | .45 | $ | .17 | $ | 1.70 | $ | 1.12 | ||||||||
Income (loss) from discontinued operations, net of taxes | — | — | — | .01 | .01 | |||||||||||||
Net income (loss) attributable to Key common shareholders (b) | .45 | .45 | .17 | 1.71 | 1.13 | |||||||||||||
Cash dividends declared per common share | $ | .17 | $ | .17 | $ | .105 | $ | .565 | $ | .38 | ||||||||
Weighted-average common shares outstanding (000) | 1,018,614 | 1,036,480 | 1,062,348 | 1,040,890 | 1,072,077 | |||||||||||||
Effect of common share options and other stock awards | 11,803 | 13,497 | 16,982 | 13,792 | 16,515 | |||||||||||||
Weighted-average common shares and potential common shares outstanding (000) (c) | 1,030,417 | 1,049,976 | 1,079,330 | 1,054,682 | 1,088,593 | |||||||||||||
(a) | For the three months ended December 31, 2018, September 30, 2018, and December 31, 2017, net securities gains (losses) totaled less than $1 million. For the three months ended December 31, 2018, September 30, 2018, and December 31, 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. |