Condensed Financial Information of the Parent Company (Tables)

12 Months Ended

Dec. 31, 2020

CONDENSED BALANCE SHEETS


December 31, in millions	2020		2019
ASSETS
Cash and due from banks	$	3,799	$	3,813
Short-term investments	21		20
Securities available for sale	12		10
Other investments	43		36
Loans to:
Banks	50		50
Nonbank subsidiaries	16		16
Total loans	66		66
Investment in subsidiaries:
Banks	17,645		16,969
Nonbank subsidiaries	900		823
Total investment in subsidiaries	18,545		17,792
Goodwill	167		167

Corporate-owned life insurance	207		205
Derivative assets	100		44
Accrued income and other assets	299		295
Total assets	$	23,259	$	22,448
LIABILITIES
Accrued expense and other liabilities	$	505	$	492

Long-term debt due to:
Subsidiaries	500		483
Unaffiliated companies	4,273		4,435
Total long-term debt	4,773		4,918
Total liabilities	5,278		5,410
SHAREHOLDERS’ EQUITY (a)	17,981		17,038
Total liabilities and shareholders’ equity	$	23,259	$	22,448

(a)See Key’s Consolidated Statements of Changes in Equity.

CONDENSED STATEMENTS OF INCOME


Year ended December 31,
in millions	2020		2019		2018
INCOME
Dividends from subsidiaries:
Bank subsidiaries	$	1,250	$	1,204	$	1,675
Nonbank subsidiaries	—		70		—
Interest income from subsidiaries	4		9		11
Other income	8		11		11
Total income	1,262		1,294		1,697
EXPENSE
Interest on long-term debt with subsidiary trusts	18		22		20
Interest on other borrowed funds	114		151		137
Personnel and other expense	63		87		69
Total expense	195		260		226
Income (loss) before income taxes and equity in net income (loss) less dividends from subsidiaries	1,067		1,034		1,471
Income tax (expense) benefit	38		57		55
Income (loss) before equity in net income (loss) less dividends from subsidiaries	1,105		1,091		1,526
Equity in net income (loss) less dividends from subsidiaries	238		626		340
NET INCOME (LOSS)	1,343		1,717		1,866
Less: Net income attributable to noncontrolling interests	—		—		—
NET INCOME (LOSS) ATTRIBUTABLE TO KEY	$	1,343	$	1,717	$	1,866

CONDENSED STATEMENTS OF CASH FLOWS


Year ended December 31,
in millions	2020		2019		2018
OPERATING ACTIVITIES
Net income (loss) attributable to Key	$	1,343	$	1,717	$	1,866
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Deferred income taxes (benefit)	2		(43)		109
Stock-based compensation expense	11		8		8
Equity in net (income) loss less dividends from subsidiaries	(238)		(626)		(340)


Net (increase) decrease in other assets	(66)		39		(58)
Net increase (decrease) in other liabilities	12		11		8
Other operating activities, net	131		244		79
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES	1,195		1,350		1,672
INVESTING ACTIVITIES
Net (increase) decrease in securities available for sale and in short-term and other investments	(7)		(6)		1

Cash infusion from purchase of Cain Brothers	—		—		—

Proceeds from sales, prepayments and maturities of securities available for sale	—		—		—
Net (increase) decrease in loans to subsidiaries	—		15		200
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES	(7)		9		201
FINANCING ACTIVITIES
Net proceeds from issuance of long-term debt	800		750		1,250
Payments on long-term debt	(1,003)		(300)		(750)
Repurchase of Treasury Shares	(170)		(868)		(1,145)
Net cash from the issuance (redemption) of Common Shares and preferred stock	—		435		412
Cash dividends paid	(829)		(804)		(656)
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES	(1,202)		(787)		(889)
NET INCREASE (DECREASE) IN CASH AND DUE FROM BANKS	(14)		572		984
CASH AND DUE FROM BANKS AT BEGINNING OF YEAR	3,813		3,241		2,257
CASH AND DUE FROM BANKS AT END OF YEAR	$	3,799	$	3,813	$	3,241