Attached files
| file | filename |
|---|---|
| 8-K - 8-K - KEYCORP /NEW/ | a3q18er8-k.htm |
| EX-99.2 - EXHIBIT 99.2 - KEYCORP /NEW/ | key3q18confcallslidesvf.htm |
| EX-99.1 - EXHIBIT 99.1 - KEYCORP /NEW/ | a3q18earningsrelease.htm |
Exhibit 99.3
Consolidated Balance Sheets | |||||||||||
(dollars in millions) | |||||||||||
9/30/2018 | 6/30/2018 | 9/30/2017 | |||||||||
Assets | |||||||||||
Loans | $ | 89,268 | $ | 88,222 | $ | 86,492 | |||||
Loans held for sale | 1,618 | 1,418 | 1,341 | ||||||||
Securities available for sale | 18,341 | 17,367 | 19,012 | ||||||||
Held-to-maturity securities | 11,869 | 12,277 | 10,276 | ||||||||
Trading account assets | 958 | 833 | 783 | ||||||||
Short-term investments | 2,272 | 2,646 | 3,993 | ||||||||
Other investments | 681 | 709 | 728 | ||||||||
Total earning assets | 125,007 | 123,472 | 122,625 | ||||||||
Allowance for loan and lease losses | (887 | ) | (887 | ) | (880 | ) | |||||
Cash and due from banks | 319 | 784 | 562 | ||||||||
Premises and equipment | 891 | 892 | 916 | ||||||||
Operating lease assets | 930 | 903 | 736 | ||||||||
Goodwill | 2,516 | 2,516 | 2,487 | ||||||||
Other intangible assets | 338 | 361 | 412 | ||||||||
Corporate-owned life insurance | 4,156 | 4,147 | 4,113 | ||||||||
Accrued income and other assets | 4,378 | 4,382 | 4,366 | ||||||||
Discontinued assets | 1,157 | 1,222 | 1,396 | ||||||||
Total assets | $ | 138,805 | $ | 137,792 | $ | 136,733 | |||||
Liabilities | |||||||||||
Deposits in domestic offices: | |||||||||||
NOW and money market deposit accounts | $ | 57,219 | $ | 55,059 | $ | 53,734 | |||||
Savings deposits | 4,948 | 6,199 | 6,366 | ||||||||
Certificates of deposit ($100,000 or more) | 8,453 | 7,547 | 6,519 | ||||||||
Other time deposits | 5,130 | 4,943 | 4,720 | ||||||||
Total interest-bearing deposits | 75,750 | 73,748 | 71,339 | ||||||||
Noninterest-bearing deposits | 30,030 | 30,800 | 32,107 | ||||||||
Total deposits | 105,780 | 104,548 | 103,446 | ||||||||
Federal funds purchased and securities sold under repurchase agreements | 1,285 | 1,667 | 372 | ||||||||
Bank notes and other short-term borrowings | 637 | 639 | 616 | ||||||||
Accrued expense and other liabilities | 2,044 | 1,983 | 1,949 | ||||||||
Long-term debt | 13,849 | 13,853 | 15,100 | ||||||||
Total liabilities | 123,595 | 122,690 | 121,483 | ||||||||
Equity | |||||||||||
Preferred stock | 1,450 | 1,025 | 1,025 | ||||||||
Common shares | 1,257 | 1,257 | 1,257 | ||||||||
Capital surplus | 6,315 | 6,315 | 6,310 | ||||||||
Retained earnings | 11,262 | 10,970 | 10,125 | ||||||||
Treasury stock, at cost | (3,910 | ) | (3,382 | ) | (2,962 | ) | |||||
Accumulated other comprehensive income (loss) | (1,166 | ) | (1,085 | ) | (506 | ) | |||||
Key shareholders’ equity | 15,208 | 15,100 | 15,249 | ||||||||
Noncontrolling interests | 2 | 2 | 1 | ||||||||
Total equity | 15,210 | 15,102 | 15,250 | ||||||||
Total liabilities and equity | $ | 138,805 | $ | 137,792 | $ | 136,733 | |||||
Common shares outstanding (000) | 1,034,287 | 1,058,944 | 1,079,039 | ||||||||
Consolidated Statements of Income | ||||||||||||||||||
(dollars in millions, except per share amounts) | ||||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||||
9/30/2018 | 6/30/2018 | 9/30/2017 | 9/30/2018 | 9/30/2017 | ||||||||||||||
Interest income | ||||||||||||||||||
Loans | $ | 1,025 | $ | 1,000 | $ | 928 | $ | 2,965 | $ | 2,753 | ||||||||
Loans held for sale | 12 | 16 | 17 | 40 | 39 | |||||||||||||
Securities available for sale | 102 | 97 | 91 | 294 | 276 | |||||||||||||
Held-to-maturity securities | 72 | 72 | 55 | 213 | 161 | |||||||||||||
Trading account assets | 7 | 7 | 7 | 21 | 21 | |||||||||||||
Short-term investments | 15 | 8 | 6 | 31 | 14 | |||||||||||||
Other investments | 6 | 5 | 5 | 17 | 12 | |||||||||||||
Total interest income | 1,239 | 1,205 | 1,109 | 3,581 | 3,276 | |||||||||||||
Interest expense | ||||||||||||||||||
Deposits | 140 | 112 | 72 | 343 | 196 | |||||||||||||
Federal funds purchased and securities sold under repurchase agreements | 1 | 5 | — | 10 | 1 | |||||||||||||
Bank notes and other short-term borrowings | 4 | 7 | 3 | 17 | 12 | |||||||||||||
Long-term debt | 108 | 102 | 86 | 302 | 228 | |||||||||||||
Total interest expense | 253 | 226 | 161 | 672 | 437 | |||||||||||||
Net interest income | 986 | 979 | 948 | 2,909 | 2,839 | |||||||||||||
Provision for credit losses | 62 | 64 | 51 | 187 | 180 | |||||||||||||
Net interest income after provision for credit losses | 924 | 915 | 897 | 2,722 | 2,659 | |||||||||||||
Noninterest income | ||||||||||||||||||
Trust and investment services income | 117 | 128 | 135 | 378 | 404 | |||||||||||||
Investment banking and debt placement fees | 166 | 155 | 141 | 464 | 403 | |||||||||||||
Service charges on deposit accounts | 85 | 91 | 91 | 265 | 268 | |||||||||||||
Operating lease income and other leasing gains | 35 | (6 | ) | 16 | 61 | 69 | ||||||||||||
Corporate services income | 52 | 61 | 54 | 175 | 163 | |||||||||||||
Cards and payments income | 69 | 71 | 75 | 202 | 210 | |||||||||||||
Corporate-owned life insurance income | 34 | 32 | 31 | 98 | 94 | |||||||||||||
Consumer mortgage income | 9 | 7 | 7 | 23 | 19 | |||||||||||||
Mortgage servicing fees | 19 | 22 | 21 | 61 | 54 | |||||||||||||
Other income (a) | 23 | 99 | 21 | 143 | 138 | |||||||||||||
Total noninterest income | 609 | 660 | 592 | 1,870 | 1,822 | |||||||||||||
Noninterest expense | ||||||||||||||||||
Personnel | 553 | 586 | 559 | 1,733 | 1,669 | |||||||||||||
Net occupancy | 76 | 79 | 74 | 233 | 239 | |||||||||||||
Computer processing | 52 | 51 | 56 | 155 | 171 | |||||||||||||
Business services and professional fees | 43 | 51 | 49 | 135 | 140 | |||||||||||||
Equipment | 27 | 26 | 29 | 79 | 83 | |||||||||||||
Operating lease expense | 31 | 30 | 24 | 88 | 64 | |||||||||||||
Marketing | 26 | 26 | 34 | 77 | 85 | |||||||||||||
FDIC assessment | 21 | 21 | 21 | 63 | 62 | |||||||||||||
Intangible asset amortization | 23 | 25 | 25 | 77 | 69 | |||||||||||||
OREO expense, net | 3 | — | 3 | 5 | 8 | |||||||||||||
Other expense | 109 | 98 | 118 | 318 | 410 | |||||||||||||
Total noninterest expense | 964 | 993 | 992 | 2,963 | 3,000 | |||||||||||||
Income (loss) from continuing operations before income taxes | 569 | 582 | 497 | 1,629 | 1,481 | |||||||||||||
Income taxes | 87 | 103 | 134 | 252 | 386 | |||||||||||||
Income (loss) from continuing operations | 482 | 479 | 363 | 1,377 | 1,095 | |||||||||||||
Income (loss) from discontinued operations, net of taxes | — | 3 | 1 | 5 | 6 | |||||||||||||
Net income (loss) | 482 | 482 | 364 | 1,382 | 1,101 | |||||||||||||
Less: Net income (loss) attributable to noncontrolling interests | — | — | — | — | 1 | |||||||||||||
Net income (loss) attributable to Key | $ | 482 | $ | 482 | $ | 364 | $ | 1,382 | $ | 1,100 | ||||||||
Income (loss) from continuing operations attributable to Key common shareholders | $ | 468 | $ | 464 | $ | 349 | $ | 1,334 | $ | 1,038 | ||||||||
Net income (loss) attributable to Key common shareholders | 468 | 467 | 350 | 1,339 | 1,044 | |||||||||||||
Per common share | ||||||||||||||||||
Income (loss) from continuing operations attributable to Key common shareholders | $ | .45 | $ | .44 | $ | .32 | $ | 1.28 | $ | .96 | ||||||||
Income (loss) from discontinued operations, net of taxes | — | — | — | .01 | .01 | |||||||||||||
Net income (loss) attributable to Key common shareholders (b) | .45 | .44 | .32 | 1.27 | .97 | |||||||||||||
Per common share — assuming dilution | ||||||||||||||||||
Income (loss) from continuing operations attributable to Key common shareholders | $ | .45 | $ | .44 | $ | .32 | $ | 1.26 | $ | .95 | ||||||||
Income (loss) from discontinued operations, net of taxes | — | — | — | .01 | .01 | |||||||||||||
Net income (loss) attributable to Key common shareholders (b) | .45 | .44 | .32 | 1.26 | .96 | |||||||||||||
Cash dividends declared per common share | $ | .17 | $ | .12 | $ | .095 | $ | .395 | $ | .275 | ||||||||
Weighted-average common shares outstanding (000) | 1,036,479 | 1,052,652 | 1,073,390 | 1,048,397 | 1,075,296 | |||||||||||||
Effect of common share options and other stock awards | 13,497 | 13,141 | 15,451 | 14,419 | 16,359 | |||||||||||||
Weighted-average common shares and potential common shares outstanding (000) (c) | 1,049,976 | 1,065,793 | 1,088,841 | 1,062,816 | 1,091,655 | |||||||||||||
(a) | For the three months ended September 30, 2018 and June 30, 2018 net securities gains (losses) totaled less than $1 million. For the three months ended September 30, 2017, net securities gains totaled $1 million. For the three months ended September 30, 2018, June 30, 2018, and September 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. |