EX-99.3 4 a2q19erex993.htm EXHIBIT 99.3 Exhibit
Exhibit 99.3


Consolidated Balance Sheets
(dollars in millions)
 
 
 
 
 
 
 
 
 
6/30/2019

3/31/2019

6/30/2018

Assets
 
 
 
 
Loans
$
91,937

$
90,178

$
88,222

 
Loans held for sale
1,790

894

1,418

 
Securities available for sale
21,528

20,854

17,367

 
Held-to-maturity securities
10,878

11,234

12,277

 
Trading account assets
1,005

979

833

 
Short-term investments
2,443

2,511

2,646

 
Other investments
632

646

709

 
 
Total earning assets
130,213

127,296

123,472

 
Allowance for loan and lease losses
(890
)
(883
)
(887
)
 
Cash and due from banks
607

611

784

 
Premises and equipment
829

849

892

 
Goodwill
2,664

2,516

2,516

 
Other intangible assets
298

300

361

 
Corporate-owned life insurance
4,201

4,184

4,147

 
Accrued income and other assets
5,633

5,596

5,285

 
Discontinued assets
990

1,046

1,222

 
 
Total assets
$
144,545

$
141,515

$
137,792

 
 
 
 
 
 
Liabilities
 
 
 
 
Deposits in domestic offices:
 
 
 
 
 
NOW and money market deposit accounts
$
63,619

$
61,380

$
55,059

 
 
Savings deposits
4,747

4,839

6,199

 
 
Certificates of deposit ($100,000 or more)
8,084

8,396

7,547

 
 
Other time deposits
5,524

5,573

4,943

 
 
Total interest-bearing deposits
81,974

80,188

73,748

 
 
Noninterest-bearing deposits
27,972

27,987

30,800

 
 
Total deposits
109,946

108,175

104,548

 
Federal funds purchased and securities sold under repurchase agreements 
161

266

1,667

 
Bank notes and other short-term borrowings
720

679

639

 
Accrued expense and other liabilities
2,435

2,301

1,983

 
Long-term debt
14,312

14,168

13,853

 
 
Total liabilities
127,574

125,589

122,690

 
 
 
 
 
 
Equity
 
 
 
 
Preferred stock
1,900

1,450

1,025

 
Common shares
1,257

1,257

1,257

 
Capital surplus
6,266

6,259

6,315

 
Retained earnings
12,005

11,771

10,970

 
Treasury stock, at cost
(4,457
)
(4,283
)
(3,382
)
 
Accumulated other comprehensive income (loss)
(2
)
(530
)
(1,085
)
 
 
Key shareholders’ equity
16,969

15,924

15,100

 
Noncontrolling interests
2

2

2

 
 
Total equity
16,971

15,926

15,102

Total liabilities and equity
$
144,545

$
141,515

$
137,792

 
 
 
 
 
 
Common shares outstanding (000)
1,003,114

1,013,186

1,058,944





Consolidated Statements of Income
 
 
 
(dollars in millions, except per share amounts)
 
 
 
 
 
 
Three months ended
 
Six months ended
 
 
 
6/30/2019
3/31/2019
6/30/2018
 
6/30/2019
6/30/2018
Interest income
 
 
 
 
 
 
 
Loans
$
1,082

$
1,066

$
1,000

 
$
2,148

$
1,940

 
Loans held for sale
15

13

16

 
28

28

 
Securities available for sale
135

129

97

 
264

192

 
Held-to-maturity securities
67

68

72

 
135

141

 
Trading account assets
9

8

7

 
17

14

 
Short-term investments
17

16

8

 
33

16

 
Other investments
4

4

5

 
8

11

 
 
Total interest income
1,329

1,304

1,205

 
2,633

2,342

Interest expense
 
 
 
 
 
 
 
Deposits
223

202

112

 
425

203

 
Federal funds purchased and securities sold under repurchase agreements

1

5

 
1

9

 
Bank notes and other short-term borrowings
5

4

7

 
9

13

 
Long-term debt
120

120

102

 
240

194

 
 
Total interest expense
348

327

226

 
675

419

Net interest income
981

977

979

 
1,958

1,923

Provision for credit losses
74

62

64

 
136

125

Net interest income after provision for credit losses
907

915

915

 
1,822

1,798

Noninterest income
 
 
 
 
 
 
 
Trust and investment services income
122

115

128

 
237

261

 
Investment banking and debt placement fees
163

110

155

 
273

298

 
Service charges on deposit accounts
83

82

91

 
165

180

 
Operating lease income and other leasing gains
44

37

(6
)
 
81

26

 
Corporate services income
53

55

61

 
108

123

 
Cards and payments income
73

66

71

 
139

133

 
Corporate-owned life insurance income
33

32

32

 
65

64

 
Consumer mortgage income
10

8

7

 
18

14

 
Mortgage servicing fees
24

21

22

 
45

42

 
Other income (a)
17

10

99

 
27

120

 
 
Total noninterest income
622

536

660

 
1,158

1,261

Noninterest expense
 
 
 
 
 
 
 
Personnel
589

563

586

 
1,152

1,180

 
Net occupancy
73

72

79

 
145

157

 
Computer processing
56

54

51

 
110

103

 
Business services and professional fees
45

44

51

 
89

92

 
Equipment
24

24

26

 
48

52

 
Operating lease expense
32

26

30

 
58

57

 
Marketing
24

19

26

 
43

51

 
FDIC assessment
9

7

21

 
16

42

 
Intangible asset amortization
22

22

25

 
44

54

 
OREO expense, net
4

3


 
7

2

 
Other expense
141

129

98

 
270

209

 
 
Total noninterest expense
1,019

963

993

 
1,982

1,999

Income (loss) from continuing operations before income taxes
510

488

582

 
998

1,060

 
Income taxes
87

82

103

 
169

165

Income (loss) from continuing operations
423

406

479

 
829

895

 
Income (loss) from discontinued operations, net of taxes
2

1

3

 
3

5

Net income (loss)
425

407

482

 
832

900

 
Less: Net income (loss) attributable to noncontrolling interests



 


Net income (loss) attributable to Key
$
425

$
407

$
482

 
$
832

$
900

 
 
 
 
 
 
 
 
 
Income (loss) from continuing operations attributable to Key common shareholders
$
403

$
386

$
464

 
$
789

$
866

Net income (loss) attributable to Key common shareholders
405

387

467

 
792

871

Per common share
 
 
 
 
 
 
Income (loss) from continuing operations attributable to Key common shareholders
$
.40

$
.38

$
.44

 
$
.79

$
.82

Income (loss) from discontinued operations, net of taxes



 


Net income (loss) attributable to Key common shareholders (b)
.40

.38

.44

 
.79

.82

Per common share — assuming dilution
 
 
 
 
 
 
Income (loss) from continuing operations attributable to Key common shareholders
$
.40

$
.38

$
.44

 
$
.78

$
.81

Income (loss) from discontinued operations, net of taxes



 


Net income (loss) attributable to Key common shareholders (b)
.40

.38

.44

 
.78

.81

 
 
 
 
 
 
 
 
 
Cash dividends declared per common share
$
.17

$
.17

$
.12

 
$
.34

$
.225

 
 
 
 
 
 
 
 
 
Weighted-average common shares outstanding (000)
999,163

1,006,717

1,052,652,000

 
1,003,047,000

1,054,378,000

 
Effect of common share options and other stock awards
8,801

9,787

13,141,000

 
9,318,000

14,561,000

Weighted-average common shares and potential common shares outstanding (000) (c)
1,007,964

1,016,504

1,065,793,000

 
1,012,365,000

1,068,939,000

 
 
 
 
 
 
 
 
 
(a)
For the three months ended June 30, 2019, March 31, 2019, and June 30, 2018, net securities gains (losses) totaled less than $1 million. For the three months ended June 30, 2019, March 31, 2019, and June 30, 2018, 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.