Attached files
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8-K - 8-K - KEYCORP /NEW/ | d661532d8k.htm |
EX-99.2 - EX-99.2 - KEYCORP /NEW/ | d661532dex992.htm |
EX-99.1 - EX-99.1 - KEYCORP /NEW/ | d661532dex991.htm |
Exhibit 99.3
Consolidated Balance Sheets
(dollars in millions)
12-31-13 | 9-30-13 | 12-31-12 | ||||||||||
Assets |
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Loans |
$ | 54,457 | $ | 53,597 | $ | 52,822 | ||||||
Loans held for sale |
611 | 699 | 599 | |||||||||
Securities available for sale |
12,346 | 12,606 | 12,094 | |||||||||
Held-to-maturity securities |
4,756 | 4,835 | 3,931 | |||||||||
Trading account assets |
738 | 806 | 605 | |||||||||
Short-term investments |
5,590 | 3,535 | 3,940 | |||||||||
Other investments |
969 | 1,007 | 1,064 | |||||||||
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Total earning assets |
79,467 | 77,085 | 75,055 | |||||||||
Allowance for loan and lease losses |
(848 | ) | (868 | ) | (888 | ) | ||||||
Cash and due from banks |
617 | 748 | 584 | |||||||||
Premises and equipment |
885 | 890 | 965 | |||||||||
Operating lease assets |
305 | 293 | 288 | |||||||||
Goodwill |
979 | 979 | 979 | |||||||||
Other intangible assets |
127 | 137 | 171 | |||||||||
Corporate-owned life insurance |
3,408 | 3,384 | 3,333 | |||||||||
Derivative assets |
407 | 475 | 693 | |||||||||
Accrued income and other assets |
3,015 | 2,747 | 2,774 | |||||||||
Discontinued assets |
4,572 | 4,838 | 5,282 | |||||||||
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Total assets |
$ | 92,934 | $ | 90,708 | $ | 89,236 | ||||||
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Liabilities |
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Deposits in domestic offices: |
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NOW and money market deposit accounts |
$ | 33,952 | $ | 33,132 | $ | 32,380 | ||||||
Savings deposits |
2,472 | 2,489 | 2,433 | |||||||||
Certificates of deposit ($100,000 or more) |
2,631 | 2,698 | 2,879 | |||||||||
Other time deposits |
3,648 | 3,833 | 4,575 | |||||||||
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Total interest-bearing deposits |
42,703 | 42,152 | 42,267 | |||||||||
Noninterest-bearing deposits |
26,001 | 25,778 | 23,319 | |||||||||
Deposits in foreign office interest-bearing |
558 | 605 | 407 | |||||||||
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Total deposits |
69,262 | 68,535 | 65,993 | |||||||||
Federal funds purchased and securities sold under repurchase agreements |
1,534 | 1,455 | 1,609 | |||||||||
Bank notes and other short-term borrowings |
343 | 466 | 287 | |||||||||
Derivative liabilities |
414 | 450 | 584 | |||||||||
Accrued expense and other liabilities |
1,557 | 1,375 | 1,387 | |||||||||
Long-term debt |
7,650 | 6,154 | 6,847 | |||||||||
Discontinued liabilities |
1,854 | 2,037 | 2,220 | |||||||||
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Total liabilities |
82,614 | 80,472 | 78,927 | |||||||||
Equity |
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Preferred stock, Series A |
291 | 291 | 291 | |||||||||
Common shares |
1,017 | 1,017 | 1,017 | |||||||||
Capital surplus |
4,022 | 4,029 | 4,126 | |||||||||
Retained earnings |
7,606 | 7,431 | 6,913 | |||||||||
Treasury stock, at cost |
(2,281 | ) | (2,193 | ) | (1,952 | ) | ||||||
Accumulated other comprehensive income (loss) |
(352 | ) | (369 | ) | (124 | ) | ||||||
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Key shareholders equity |
10,303 | 10,206 | 10,271 | |||||||||
Noncontrolling interests |
17 | 30 | 38 | |||||||||
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Total equity |
10,320 | 10,236 | 10,309 | |||||||||
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Total liabilities and equity |
$ | 92,934 | $ | 90,708 | $ | 89,236 | ||||||
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Common shares outstanding (000) |
890,724 | 897,821 | 925,769 |
Consolidated Statements of Income
(dollars in millions, except per share amounts)
Three months ended | Twelve months ended | |||||||||||||||||||
12-31-13 | 9-30-13 | 12-31-12 | 12-31-13 | 12-31-12 | ||||||||||||||||
Interest income |
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Loans |
$ | 532 | $ | 532 | $ | 563 | $ | 2,151 | $ | 2,155 | ||||||||||
Loans held for sale |
6 | 5 | 5 | 20 | 20 | |||||||||||||||
Securities available for sale |
75 | 76 | 85 | 311 | 399 | |||||||||||||||
Held-to-maturity securities |
22 | 22 | 19 | 82 | 69 | |||||||||||||||
Trading account assets |
6 | 5 | 3 | 21 | 18 | |||||||||||||||
Short-term investments |
2 | 1 | 2 | 6 | 6 | |||||||||||||||
Other investments |
6 | 6 | 11 | 29 | 38 | |||||||||||||||
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Total interest income |
649 | 647 | 688 | 2,620 | 2,705 | |||||||||||||||
Interest expense |
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Deposits |
34 | 37 | 49 | 158 | 257 | |||||||||||||||
Federal funds purchased and securities sold under repurchase agreements |
| 1 | 1 | 2 | 4 | |||||||||||||||
Bank notes and other short-term borrowings |
3 | 2 | 2 | 8 | 7 | |||||||||||||||
Long-term debt |
29 | 29 | 35 | 127 | 173 | |||||||||||||||
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Total interest expense |
66 | 69 | 87 | 295 | 441 | |||||||||||||||
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Net interest income |
583 | 578 | 601 | 2,325 | 2,264 | |||||||||||||||
Provision (credit) for loan and lease losses |
19 | 28 | 57 | 130 | 229 | |||||||||||||||
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Net interest income (expense) after provision for loan and lease losses |
564 | 550 | 544 | 2,195 | 2,035 | |||||||||||||||
Noninterest income |
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Trust and investment services income |
98 | 100 | 95 | 393 | 375 | |||||||||||||||
Investment banking and debt placement fees |
84 | 86 | 110 | 333 | 327 | |||||||||||||||
Service charges on deposit accounts |
68 | 73 | 75 | 281 | 287 | |||||||||||||||
Operating lease income and other leasing gains |
23 | 43 | 19 | 108 | 195 | |||||||||||||||
Corporate services income |
40 | 44 | 41 | 172 | 168 | |||||||||||||||
Cards and payments income |
40 | 43 | 38 | 162 | 135 | |||||||||||||||
Corporate-owned life insurance income |
33 | 26 | 36 | 120 | 122 | |||||||||||||||
Consumer mortgage income |
3 | 3 | 11 | 19 | 40 | |||||||||||||||
Mortgage servicing fees |
22 | 15 | 7 | 58 | 24 | |||||||||||||||
Net gains (losses) from principal investing |
20 | 17 | 2 | 52 | 72 | |||||||||||||||
Other income (a) |
22 | 9 | 5 | 68 | 111 | |||||||||||||||
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Total noninterest income |
453 | 459 | 439 | 1,766 | 1,856 | |||||||||||||||
Noninterest expense |
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Personnel |
398 | 414 | 422 | 1,609 | 1,570 | |||||||||||||||
Net occupancy |
73 | 66 | 69 | 275 | 260 | |||||||||||||||
Computer processing |
40 | 38 | 38 | 156 | 164 | |||||||||||||||
Business services and professional fees |
42 | 37 | 54 | 151 | 190 | |||||||||||||||
Equipment |
26 | 25 | 27 | 104 | 107 | |||||||||||||||
Operating lease expense |
10 | 14 | 12 | 47 | 57 | |||||||||||||||
Marketing |
18 | 16 | 20 | 51 | 68 | |||||||||||||||
FDIC assessment |
7 | 7 | 8 | 30 | 31 | |||||||||||||||
Intangible asset amortization on credit cards |
7 | 8 | 8 | 30 | 14 | |||||||||||||||
Other intangible asset amortization |
3 | 4 | 4 | 14 | 9 | |||||||||||||||
Provision (credit) for losses on lending-related commitments |
(3 | ) | 3 | (14 | ) | 8 | (16 | ) | ||||||||||||
OREO expense, net |
2 | 1 | 1 | 7 | 15 | |||||||||||||||
Other expense |
89 | 83 | 85 | 338 | 349 | |||||||||||||||
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Total noninterest expense |
712 | 716 | 734 | 2,820 | 2,818 | |||||||||||||||
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Income (loss) from continuing operations before income taxes |
305 | 293 | 249 | 1,141 | 1,073 | |||||||||||||||
Income taxes |
70 | 59 | 53 | 271 | 231 | |||||||||||||||
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Income (loss) from continuing operations |
235 | 234 | 196 | 870 | 842 | |||||||||||||||
Income (loss) from discontinued operations, net of taxes |
(5 | ) | 37 | 7 | 40 | 23 | ||||||||||||||
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Net income (loss) |
230 | 271 | 203 | 910 | 865 | |||||||||||||||
Less: Net income (loss) attributable to noncontrolling interests |
| (1 | ) | | | 7 | ||||||||||||||
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Net income (loss) attributable to Key |
$ | 230 | $ | 272 | $ | 203 | $ | 910 | $ | 858 | ||||||||||
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Income (loss) from continuing operations attributable to Key common shareholders |
$ | 229 | $ | 229 | $ | 190 | $ | 847 | $ | 813 | ||||||||||
Net income (loss) attributable to Key common shareholders |
224 | 266 | 197 | 887 | 836 | |||||||||||||||
Per common share |
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Income (loss) from continuing operations attributable to Key common shareholders |
$ | .26 | $ | .25 | $ | .21 | $ | .93 | $ | .87 | ||||||||||
Income (loss) from discontinued operations, net of taxes |
(.01 | ) | .04 | .01 | .04 | .02 | ||||||||||||||
Net income (loss) attributable to Key common shareholders (b) |
.25 | .29 | .21 | .98 | .89 | |||||||||||||||
Per common share assuming dilution |
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Income (loss) from continuing operations attributable to Key common shareholders |
$ | .26 | $ | .25 | $ | .20 | $ | .93 | $ | .86 | ||||||||||
Income (loss) from discontinued operations, net of taxes |
(.01 | ) | .04 | .01 | .04 | .02 | ||||||||||||||
Net income (loss) attributable to Key common shareholders (b) |
.25 | .29 | .21 | .97 | .89 | |||||||||||||||
Cash dividends declared per common share |
$ | .055 | $ | .055 | $ | .05 | $ | .215 | $ | .18 | ||||||||||
Weighted-average common shares outstanding (000) |
890,516 | 901,904 | 925,725 | 906,524 | 938,941 | |||||||||||||||
Weighted-average common shares and potential common shares outstanding (000) (c) |
897,712 | 928,854 | 930,382 | 912,571 | 943,259 |
(a) | For the three months ended December 31, 2013, September 30, 2013, and December 31, 2012, Key did not have any impairment losses related to securities. |
(b) | Earnings per share may not foot due to rounding. |
(c) | Assumes conversion of stock options and/or Preferred Series A shares, as applicable. |