Condensed Financial Information of the Parent Company (Tables)

12 Months Ended

Dec. 31, 2019

CONDENSED BALANCE SHEETS



December 31, in millions	2019		2018
ASSETS
Cash and due from banks	$	3,813	$	3,241
Short-term investments	20		19
Securities available for sale	10		10
Other investments	36		31
Loans to:
Banks	50		50
Nonbank subsidiaries	16		31
Total loans	66		81
Investment in subsidiaries:
Banks	16,969		15,554
Nonbank subsidiaries	823		833
Total investment in subsidiaries	17,792		16,387
Goodwill	167		167
Corporate-owned life insurance	205		199
Derivative assets	44		61
Accrued income and other assets	295		279
Total assets	$	22,448	$	20,475
LIABILITIES
Accrued expense and other liabilities	$	492	$	480
Long-term debt due to:
Subsidiaries	483		471
Unaffiliated companies	4,435		3,929
Total long-term debt	4,918		4,400
Total liabilities	5,410		4,880
SHAREHOLDERS’ EQUITY ^(a)	17,038		15,595
Total liabilities and shareholders’ equity	$	22,448	$	20,475

(a)

See Key’s Consolidated Statements of Changes in Equity.

CONDENSED STATEMENTS OF INCOME



Year ended December 31,
in millions	2019		2018		2017
INCOME
Dividends from subsidiaries:
Bank subsidiaries	$	1,204	$	1,675	$	750
Nonbank subsidiaries	70		—		—
Interest income from subsidiaries	9		11		10
Other income	11		11		9
Total income	1,294		1,697		769
EXPENSE
Interest on long-term debt with subsidiary trusts	22		20		17
Interest on other borrowed funds	151		137		95
Personnel and other expense	87		69		46
Total expense	260		226		158
Income (loss) before income taxes and equity in net income (loss) less dividends from subsidiaries	1,034		1,471		611
Income tax (expense) benefit	57		55		29
Income (loss) before equity in net income (loss) less dividends from subsidiaries	1,091		1,526		640
Equity in net income (loss) less dividends from subsidiaries	626		340		658
NET INCOME (LOSS)	1,717		1,866		1,298
Less: Net income attributable to noncontrolling interests	—		—		2
NET INCOME (LOSS) ATTRIBUTABLE TO KEY	$	1,717	$	1,866	$	1,296

CONDENSED STATEMENTS OF CASH FLOWS



Year ended December 31,
in millions	2019			2018			2017
OPERATING ACTIVITIES
Net income (loss) attributable to Key	$	1,717		$	1,866		$	1,296
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Deferred income taxes (benefit)	(43		)	109			38
Stock-based compensation expense	8			8			11
Equity in net (income) loss less dividends from subsidiaries	(626		)	(340		)	(658		)
Net (increase) decrease in other assets	39			(58		)	82
Net increase (decrease) in other liabilities	11			8			(82		)
Other operating activities, net	244			79			(114		)
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES	1,350			1,672			573
INVESTING ACTIVITIES
Net (increase) decrease in securities available for sale and in short-term and other investments	(6		)	1			47
Cash infusion from purchase of Cain Brothers	—			—			(90		)
Proceeds from sales, prepayments and maturities of securities available for sale	—			—			1
Net (increase) decrease in loans to subsidiaries	15			200			—
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES	9			201			(42		)
FINANCING ACTIVITIES
Net proceeds from issuance of long-term debt	750			1,250			—
Payments on long-term debt	(300		)	(750		)	—
Repurchase of Treasury Shares	(868		)	(1,145		)	(730		)
Net cash from the issuance (redemption) of Common Shares and preferred stock	435			412			(350		)
Cash dividends paid	(804		)	(656		)	(480		)
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES	(787		)	(889		)	(1,560		)
NET INCREASE (DECREASE) IN CASH AND DUE FROM BANKS	572			984			(1,029		)
CASH AND DUE FROM BANKS AT BEGINNING OF YEAR	3,241			2,257			3,286
CASH AND DUE FROM BANKS AT END OF YEAR	$	3,813		$	3,241		$	2,257