Condensed Financial Information of the Parent Company (Tables)

12 Months Ended

Dec. 31, 2018

Condensed Financial Information Disclosure [Abstract]

CONDENSED BALANCE SHEETS



December 31, in millions	2018		2017
ASSETS
Cash and due from banks	$	3,241	$	2,257
Short-term investments	19		22
Securities available for sale	10		10
Other investments	31		29
Loans to:
Banks	50		250
Nonbank subsidiaries	31		31
Total loans	81		281
Investment in subsidiaries:
Banks	15,554		15,169
Nonbank subsidiaries	833		885
Total investment in subsidiaries	16,387		16,054
Goodwill	167		167
Corporate-owned life insurance	199		208
Derivative assets	61		29
Accrued income and other assets	279		353
Total assets	$	20,475	$	19,410
LIABILITIES
Accrued expense and other liabilities	$	480	$	466
Long-term debt due to:
Subsidiaries	471		480
Unaffiliated companies	3,929		3,441
Total long-term debt	4,400		3,921
Total liabilities	4,880		4,387
SHAREHOLDERS’ EQUITY ^(a)	15,595		15,023
Total liabilities and shareholders’ equity	$	20,475	$	19,410

(a)

See Key’s Consolidated Statements of Changes in Equity.

Condensed Statements of Income

CONDENSED STATEMENTS OF INCOME



Year ended December 31,
in millions	2018		2017		2016
INCOME
Dividends from subsidiaries:
Bank subsidiaries	$	1,675	$	750	$	625
Nonbank subsidiaries	—		—		50
Interest income from subsidiaries	11		10		10
Other income	11		9		11
Total income	1,697		769		696
EXPENSE
Interest on long-term debt with subsidiary trusts	20		17		14
Interest on other borrowed funds	137		95		69
Personnel and other expense	69		46		101
Total expense	226		158		184
Income (loss) before income taxes and equity in net income (loss) less dividends from subsidiaries	1,471		611		512
Income tax (expense) benefit	55		29		54
Income (loss) before equity in net income (loss) less dividends from subsidiaries	1,526		640		566
Equity in net income (loss) less dividends from subsidiaries	340		658		224
NET INCOME (LOSS)	1,866		1,298		790
Less: Net income attributable to noncontrolling interests	—		2		(1		)
NET INCOME (LOSS) ATTRIBUTABLE TO KEY	$	1,866	$	1,296	$	791

Condensed Statements of Cash Flows

CONDENSED STATEMENTS OF CASH FLOWS



Year ended December 31,
in millions	2018			2017			2016
OPERATING ACTIVITIES
Net income (loss) attributable to Key	$	1,866		$	1,296		$	791
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Deferred income taxes (benefit)	109			38			(24		)
Stock-based compensation expense	8			11			12
Equity in net (income) loss less dividends from subsidiaries	(340		)	(658		)	(224		)
Other intangible asset amortization	—			—			—
Net (increase) decrease in goodwill and other intangibles	—			—			—
Net (increase) decrease in other assets	(58		)	82			(93		)
Net increase (decrease) in other liabilities	8			(82		)	9
Other operating activities, net	79			(114		)	—
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES	1,672			573			471
INVESTING ACTIVITIES
Net (increase) decrease in securities available for sale and in short-term and other investments	1			47			(17		)
Cash infusion from purchase of Cain Brothers	—			(90		)	—
Cash used in acquisitions	—			—			(481		)
Proceeds from sales, prepayments and maturities of securities available for sale	—			1			—
Net (increase) decrease in loans to subsidiaries	200			—			160
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES	201			(42		)	(338		)
FINANCING ACTIVITIES
Net proceeds from issuance of long-term debt	1,250			—			—
Payments on long-term debt	(750		)	—			(21		)
Repurchase of Treasury Shares	(1,145		)	(730		)	(140		)
Net cash from the issuance (redemption) of Common Shares and preferred stock	412			(350		)	1,041
Cash dividends paid	(656		)	(480		)	(335		)
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES	(889		)	(1,560		)	545
NET INCREASE (DECREASE) IN CASH AND DUE FROM BANKS	984			(1,029		)	678
CASH AND DUE FROM BANKS AT BEGINNING OF YEAR	2,257			3,286			2,608
CASH AND DUE FROM BANKS AT END OF YEAR	$	3,241		$	2,257		$	3,286