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

Attached files

file	filename
8-K - 8-K - KEYCORP /NEW/	keycorp3q16er8-k.htm
EX-99.2 - EXHIBIT 99.2 - KEYCORP /NEW/	key3q16confcallslidesvf.htm
EX-99.1 - EXHIBIT 99.1 - KEYCORP /NEW/	keycorp3q16earningsrelease.htm

Exhibit 99.3



Consolidated Balance Sheets
(dollars in millions)

			9/30/2016			6/30/2016			9/30/2015
Assets
	Loans		$	85,528		$	62,098		$	60,085
	Loans held for sale		1,137			442			916
	Securities available for sale		20,540			14,552			14,376
	Held-to-maturity securities		8,995			4,832			4,936
	Trading account assets		926			965			811
	Short-term investments		3,216			6,599			1,964
	Other investments		747			577			691
		Total earning assets	121,089			90,065			83,779
	Allowance for loan and lease losses		(865		)	(854		)	(790		)
	Cash and due from banks		749			496			470
	Premises and equipment		1,023			742			771
	Operating lease assets		430			399			315
	Goodwill		2,480			1,060			1,060
	Other intangible assets		426			50			74
	Corporate-owned life insurance		4,035			3,568			3,516
	Derivative assets		1,304			1,234			793
	Accrued income and other assets		3,480			2,673			3,346
	Discontinued assets		1,654			1,717			2,086
		Total assets	$	135,805		$	101,150		$	95,420

Liabilities
	Deposits in domestic offices:
		NOW and money market deposit accounts	$	56,432		$	40,195		$	37,301
		Savings deposits	5,335			2,355			2,338
		Certificates of deposit ($100,000 or more)	4,601			3,381			2,001
		Other time deposits	5,793			3,267			3,020
		Total interest-bearing deposits	72,161			49,198			44,660
		Noninterest-bearing deposits	32,024			26,127			25,985
	Deposits in foreign office — interest-bearing		—			—			428
		Total deposits	104,185			75,325			71,073
	Federal funds purchased and securities sold under repurchase agreements		602			360			407
	Bank notes and other short-term borrowings		809			687			677
	Derivative liabilities		850			746			676
	Accrued expense and other liabilities		1,739			1,326			1,562
	Long-term debt		12,622			11,388			10,308
		Total liabilities	120,807			89,832			84,703

Equity
	Preferred stock		1,165			290			290
	Common shares		1,257			1,017			1,017
	Capital surplus		6,359			3,835			3,914
	Retained earnings		9,260			9,166			8,764
	Treasury stock, at cost		(2,863		)	(2,881		)	(3,008		)
	Accumulated other comprehensive income (loss)		(182		)	(114		)	(272		)
		Key shareholders’ equity	14,996			11,313			10,705
	Noncontrolling interests		2			5			12
		Total equity	14,998			11,318			10,717
Total liabilities and equity			$	135,805		$	101,150		$	95,420

Common shares outstanding (000)			1,082,055			842,703			835,285



Consolidated Statements of Income
(dollars in millions, except per share amounts)
			Three months ended								Nine months ended
			9/30/2016		6/30/2016			9/30/2015			9/30/2016		9/30/2015
Interest income
	Loans		$	746	$	567		$	542		$	1,875	$	1,597
	Loans held for sale			10		5			10			23		29
	Securities available for sale			88		74			75			237		217
	Held-to-maturity securities			30		24			24			78		72
	Trading account assets			4		6			5			17		15
	Short-term investments			7		6			1			17		5
	Other investments			5		2			4			10		14
		Total interest income		890		684			661			2,257		1,949

Interest expense
	Deposits			49		34			27			114		79
	Bank notes and other short-term borrowings			2		3			2			7		6
	Long-term debt			59		50			41			155		118
		Total interest expense		110		87			70			276		203

Net interest income				780		597			591			1,981		1,746
Provision for credit losses				59		52			45			200		121
Net interest income after provision for credit losses				721		545			546			1,781		1,625

Noninterest income
	Trust and investment services income			122		110			108			341		328
	Investment banking and debt placement fees			156		98			109			325		318
	Service charges on deposit accounts			85		68			68			218		192
	Operating lease income and other leasing gains			6		18			15			41		58
	Corporate services income			51		53			57			154		143
	Cards and payments income			66		52			47			164		136
	Corporate-owned life insurance income			29		28			30			85		91
	Consumer mortgage income			6		3			3			11		10
	Mortgage servicing fees			15		10			11			37		33
	Net gains (losses) from principal investing			5		11			11			16		51
	Other income ^(a)			8		22			11			61		35
		Total noninterest income		549		473			470			1.453		1,395

Noninterest expense
	Personnel			594		427			426			1.425		1,223
	Net occupancy			73		59			60			193		191
	Computer processing			70		45			41			158		121
	Business services and professional fees			76		40			40			157		115
	Equipment			26		21			22			68		66
	Operating lease expense			15		14			11			42		34
	Marketing			32		22			17			66		40
	FDIC assessment			21		8			8			38		24
	Intangible asset amortization			13		7			9			28		27
	OREO expense, net			3		2			2			6		5
	Other expense			159		106			88			355		258
		Total noninterest expense		1,082		751			724			2,536		2,104
Income (loss) from continuing operations before income taxes				188		267			292			698		916
	Income taxes			16		69			72			141		230
Income (loss) from continuing operations				172		198			220			557		686
	Income (loss) from discontinued operations, net of taxes			1		3			(3	)		5		5
Net income (loss)				173		201			217			562		691
	Less: Net income (loss) attributable to noncontrolling interests			1		(1	)		(2	)		—		1
Net income (loss) attributable to Key			$	172	$	202		$	219		$	562	$	690

Income (loss) from continuing operations attributable to Key common shareholders			$	165	$	193		$	216		$	540	$	668
Net income (loss) attributable to Key common shareholders				166		196			213			545		673

Per common share
Income (loss) from continuing operations attributable to Key common shareholders			$	.17	$	.23		$	.26		$	.61	$	.79
Income (loss) from discontinued operations, net of taxes				—		—			—			.01		.01
Net income (loss) attributable to Key common shareholders ^(b)				.17		.23			.26			.62		.80

Per common share — assuming dilution
Income (loss) from continuing operations attributable to Key common shareholders			$	.16	$	.23		$	.26		$	.60	$	.78
Income (loss) from discontinued operations, net of taxes				—		—			—			.01		.01
Net income (loss) attributable to Key common shareholders ^(b)				.17		.23			.25			.61		.79

Cash dividends declared per common share			$	.085	$	.085		$	.075		$	.245	$	.215

Weighted-average common shares outstanding (000)				982,080		831,899			831,430			880,824		839,758
	Effect of common share options and other stock awards			12,580		6,597			7,450			8,965		7,613
Weighted-average common shares and potential common shares outstanding (000) ^(c)				994,660		838,496			838,880			889,789		847,371

(a)	For the three months ended September 30, 2016, net securities losses totaled $6 million. For the three months ended June 30, 2016, and September 30, 2015, net securities gains (losses) totaled less than $1 million. For the three months ended September 30, 2016, June 30, 2016, and September 30, 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.

KEYCORP /NEW/ - FORM 8-K - EX-99.3 - EXHIBIT 99.3 - October 25, 2016

Attached files

KEYCORP /NEW/ Reports