CLEVELAND, July 16, 2015 /PRNewswire/ -- KeyCorp (NYSE: KEY)
today announced second quarter net income from continuing
operations attributable to Key common shareholders of $230 million, or $.27 per common share, compared to $222 million, or $.26 per common share, for the first quarter of
2015, and $242 million, or
$.27 per common share, for the second
quarter of 2014.
For the six months ended June 30,
2015, net income from continuing operations attributable to
Key common shareholders was $452
million, or $.52 per common
share, compared to $474 million, or
$.53 per common share, for the same
period one year ago.
"Second quarter results reflect our continued success in
executing our strategy and driving growth across our company," said
Chairman and Chief Executive Officer Beth
Mooney. "We generated positive operating leverage and added
new and expanded relationships in both our Community Bank and
Corporate Bank."
"Revenue benefited from positive trends in our core fee-based
businesses, including investment banking and debt placement fees,
which had a record quarter and was up 42% from the prior year. We
also had momentum in trust and investment services and cards and
payments income. Average loans continued to grow, driven by
commercial, financial and agricultural loans, which were up 10%
from one year ago," continued Mooney.
"Credit quality remained strong, with a net charge-offs to
average loans ratio of .25%, well below our targeted range," said
Mooney.
"We continue to be disciplined in the way we manage our
capital. In the second quarter, our Board of Directors
increased our quarterly common share dividend by 15% and we
repurchased $129 million of common
shares," added Mooney. "We expect our 2015 estimated payout ratio
to remain among the highest in our peer group."
SECOND QUARTER 2015 FINANCIAL RESULTS, from continuing
operations
Compared to Second Quarter of 2014
- Average loans up 4.3%, driven by 9.7% growth in commercial,
financial and agricultural loans
- Average deposits, excluding deposits in foreign office, up 5.7%
due to strength in commercial mortgage servicing and inflows from
commercial and consumer clients
- Net interest income (taxable-equivalent) up $12 million, as higher earning asset balances
offset lower earning asset yields
- Noninterest income up $33 million
due to a record quarter for investment banking and debt placement
fees and growth in other core fee-based businesses
- Noninterest expense up $24
million primarily attributable to performance-based
compensation and the third quarter 2014 acquisition of Pacific
Crest Securities
- The provision for credit losses was $41
million in the second quarter of 2015, compared to
$12 million in the year-ago
quarter
- Asset quality remained strong, with net loan charge-offs to
average loans of .25%, up from .22% in the year-ago quarter and
remaining well below our targeted range of .40% to .60%
- Disciplined capital management, repurchasing $129 million of common shares during the second
quarter of 2015
Compared to First Quarter of 2015
- Average loans up .8%, primarily driven by a 2.5% increase in
commercial, financial and agricultural loans
- Average deposits, excluding deposits in foreign office, up 2.1%
primarily attributable to strength in commercial mortgage servicing
and inflows from commercial and consumer clients
- Net interest income (taxable-equivalent) up $14 million due to higher earning asset balances
and day count
- Noninterest income up $51
million, primarily due to a record quarter for investment
banking and debt placement fees and growth in other core fee-based
businesses
- Noninterest expense up $42
million, primarily driven by performance-based compensation,
seasonal trends, and higher business services and professional
fees
- The provision for credit losses was $41
million in the second quarter of 2015, compared to
$35 million in the prior quarter
- Strong asset quality, with net loan charge-offs to average
loans of .25%, compared to .20% in the first quarter of 2015
and remaining well below our targeted range of .40% to .60%
- Disciplined capital management, maintaining a solid capital
position with a Common Equity Tier 1 ratio of 10.69% compared to
10.64% in the prior quarter
Selected Financial
Highlights
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dollars in
millions, except per share data
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Change 2Q15
vs.
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2Q15
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1Q15
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2Q14
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1Q15
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2Q14
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Income (loss) from
continuing operations attributable to Key common
shareholders
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$
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230
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$
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222
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$
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242
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3.6
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%
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(5.0)
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%
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Income (loss) from
continuing operations attributable to Key common shareholders
per common share — assuming
dilution
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.27
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.26
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.27
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3.8
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—
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Return on average
total assets from continuing operations
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1.03
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%
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1.03
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%
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1.14
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%
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N/A
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N/A
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Common Equity Tier 1
(a)
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10.69
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10.64
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N/A
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N/A
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N/A
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Tier 1 common equity
(a)
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N/A
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N/A
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11.25
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%
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N/A
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N/A
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Book value at period
end
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$
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12.21
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$
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12.12
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$
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11.65
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.7
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%
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4.8
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%
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Net interest margin
(TE) from continuing operations
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2.88
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%
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2.91
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%
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2.98
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%
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N/A
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N/A
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(a)
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The table entitled
"GAAP to Non-GAAP Reconciliations" in the attached financial
supplement presents the computations of certain financial measures
related to "Common Equity Tier 1" (compliance date of January 1,
2015, under the Regulatory Capital Rules) and "Tier 1 common
equity" (prior to January 1, 2015). The table reconciles the
GAAP performance measures to the corresponding non-GAAP measures,
which provides a basis for period-to-period comparisons. For
further information on the Regulatory Capital Rules, see the
"Capital" section of this release.
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TE = Taxable
Equivalent, N/A = Not Applicable
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INCOME STATEMENT
HIGHLIGHTS
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Revenue
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dollars in
millions
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Change 2Q15
vs.
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2Q15
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1Q15
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2Q14
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1Q15
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2Q14
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Net interest income
(TE)
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$
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591
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$
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577
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$
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579
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2.4
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%
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2.1
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%
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Noninterest
income
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488
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437
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455
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11.7
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7.3
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Total
revenue
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$
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1,079
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$
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1,014
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$
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1,034
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6.4
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%
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4.4
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%
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TE = Taxable
Equivalent
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Taxable-equivalent net interest income was $591 million for the second quarter of 2015, and
the net interest margin was 2.88%. These results compare to
taxable-equivalent net interest income of $579 million and a net interest margin of 2.98%
for the second quarter of 2014. The increase in net interest
income reflects higher earning asset balances mitigated by lower
earning asset yields, which also drove the decline in the net
interest margin.
Compared to the first quarter of 2015, taxable-equivalent net
interest income increased by $14
million, and the net interest margin declined by three basis
points. The increase in net interest income was primarily
attributable to higher earning asset balances and day count in the
second quarter of 2015. The decline in the net interest
margin reflects higher levels of excess liquidity driven by
commercial deposit growth and slightly lower earning asset
yields.
Noninterest
Income
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dollars in
millions
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Change 2Q15
vs.
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2Q15
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1Q15
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2Q14
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1Q15
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2Q14
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Trust and investment
services income
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$
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111
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$
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109
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$
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94
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1.8
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%
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18.1
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%
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Investment banking
and debt placement fees
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141
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68
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99
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107.4
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42.4
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Service charges on
deposit accounts
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63
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61
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66
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3.3
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(4.5)
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Operating lease
income and other leasing gains
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24
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19
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35
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26.3
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(31.4)
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Corporate services
income
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43
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43
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41
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—
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4.9
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Cards and payments
income
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47
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42
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43
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11.9
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9.3
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Corporate-owned life
insurance income
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30
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31
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28
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(3.2)
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7.1
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Consumer mortgage
income
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4
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3
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2
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33.3
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100.0
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Mortgage servicing
fees
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9
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13
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11
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(30.8)
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(18.2)
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Net gains (losses)
from principal investing
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11
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29
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27
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(62.1)
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(59.3)
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Other
income
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5
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19
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9
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(73.7)
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(44.4)
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Total noninterest
income
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$
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488
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$
|
437
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$
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455
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11.7
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%
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7.3
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%
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Key's noninterest income was $488
million for the second quarter of 2015, compared to
$455 million for the year-ago
quarter. Results for the second quarter of 2015 reflect a
record quarter for investment banking and debt placement fees,
which increased $42 million
year-over-year. This increase was primarily driven by strength in
financial advisory fees and loan syndications. Investment banking
and debt placement fees also benefited from the third quarter 2014
acquisition of Pacific Crest Securities. Trust and investment
services income increased $17
million, primarily due to the impact of the Pacific Crest
Securities acquisition as well as strength in Key's Retail and
Private Banking businesses. Additionally, cards and payments income
increased $4 million. Partially
offsetting these increases was a $16
million decrease in net gains from principal investing and
lower operating lease income and other leasing gains, which
benefited from a $17 million gain
from the early termination of a leveraged lease in the second
quarter of 2014.
Compared to the first quarter of 2015, noninterest income
increased by $51 million. The
largest driver of this increase was the growth in investment
banking and debt placement fees, which increased by $73 million due to strength in financial advisory
fees and loan syndications. Additionally, cards and payments income
increased $5 million predominantly
due to credit and debit card growth. Compared to the first quarter
of 2015, the growth in the second quarter of 2015 was partially
offset by $18 million of lower net
gains from principal investing and a $14
million decline in other income.
Noninterest
Expense
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dollars in
millions
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Change 2Q15
vs.
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2Q15
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1Q15
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2Q14
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1Q15
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2Q14
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Personnel
expense
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$
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408
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$
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389
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$
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389
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4.9
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%
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4.9
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%
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Nonpersonnel
expense
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303
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280
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298
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8.2
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1.7
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Total noninterest
expense
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$
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711
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$
|
669
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$
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687
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6.3
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%
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3.5
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%
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Key's noninterest expense was $711
million for the second quarter of 2015, compared to
$687 million in the second quarter of
last year. This increase was primarily due to higher
performance-based compensation and the third quarter 2014
acquisition of Pacific Crest Securities.
Compared to the first quarter of 2015, noninterest expense
increased by $42 million. This
increase was primarily driven by performance-based compensation,
normal seasonal trends, and higher business services and
professional fees.
BALANCE SHEET HIGHLIGHTS
In the second quarter of 2015, Key had average assets of
$93.9 billion compared to
$91.1 billion in the second quarter
of 2014 and $91.9 billion in the
first quarter of 2015. Growth in Key's securities available
for sale portfolio during the second quarter of 2015 resulted from
higher levels of liquidity, driven by deposit growth and long-term
debt issuance. In the second quarter of 2015, Key issued
$1.75 billion in bank-level long-term
debt, which benefited its liquidity coverage ratio and credit
ratings profile.
Average
Loans
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dollars in
millions
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Change 6-30-15
vs.
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6-30-15
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3-31-15
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6-30-14
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3-31-15
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6-30-14
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Commercial, financial
and agricultural (a)
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$
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29,017
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$
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28,321
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$
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26,444
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2.5
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%
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9.7
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%
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Other commercial
loans
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13,161
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13,304
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13,186
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(1.1)
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(.2)
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Total home equity
loans
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10,510
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10,576
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10,627
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(.6)
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(1.1)
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Other consumer
loans
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5,290
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5,311
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5,354
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(.4)
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(1.2)
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Total
loans
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$
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57,978
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$
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57,512
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$
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55,611
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.8
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%
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4.3
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%
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(a)
|
Commercial, financial
and agricultural average loan balances include $88 million, $87
million, and $95 million of assets from commercial credit cards at
June 30, 2015, March 31, 2015, and June 30, 2014,
respectively.
|
Average loans were $58.0 billion
for the second quarter of 2015, an increase of $2.4 billion compared to the second quarter of
2014. The loan growth occurred primarily in the commercial,
financial and agricultural portfolio, which increased $2.6 billion and was broad-based across Key's
commercial lines of business. Consumer loans remained
relatively stable as modest increases across Key's core consumer
loan portfolio were offset by run-off in Key's consumer exit
portfolios.
Compared to the first quarter of 2015, average loans increased
by $466 million, driven by
commercial, financial and agricultural loans, which increased by
$696 million.
Average
Deposits
|
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dollars in
millions
|
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|
Change 6-30-15
vs.
|
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|
6-30-15
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3-31-15
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6-30-14
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|
3-31-15
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6-30-14
|
|
Non-time deposits
(a)
|
|
$
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65,109
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$
|
63,606
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$
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60,066
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2.4
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%
|
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8.4
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%
|
Certificates of
deposit ($100,000 or more)
|
|
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2,010
|
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|
2,017
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2,808
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(.3)
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(28.4)
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Other time
deposits
|
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3,136
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3,217
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3,587
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(2.5)
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(12.6)
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Total
deposits
|
|
$
|
70,255
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|
$
|
68,840
|
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$
|
66,461
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2.1
|
%
|
|
5.7
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%
|
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|
Cost of total
deposits (a)
|
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|
.15
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%
|
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.15
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%
|
|
.18
|
%
|
|
N/A
|
|
|
N/A
|
|
|
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(a)
|
Excludes deposits in
foreign office.
|
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|
N/A = Not
Applicable
|
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|
Average deposits, excluding deposits in foreign office, totaled
$70.3 billion for the second quarter
of 2015, an increase of $3.8 billion
compared to the year-ago quarter. Noninterest-bearing
deposits increased by $3.3 billion,
and NOW and money market deposit accounts increased by $1.8 billion, reflecting continued growth in the
commercial mortgage servicing business and inflows from commercial
and consumer clients. These increases were partially offset
by a decline in certificates of deposit.
Compared to the first quarter of 2015, average deposits,
excluding deposits in foreign office, increased by $1.4 billion. The increase was driven by
NOW and money market deposit accounts which increased $1.2 billion, and noninterest-bearing deposits
which increased $325 million.
Higher escrow deposits from Key's commercial mortgage servicing
business and inflows related to both commercial and consumer
clients drove the linked-quarter increase.
ASSET
QUALITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
dollars in
millions
|
|
|
|
|
|
|
|
|
|
|
|
Change 2Q15
vs.
|
|
|
|
|
2Q15
|
|
|
1Q15
|
|
|
2Q14
|
|
|
1Q15
|
|
|
2Q14
|
|
Net loan
charge-offs
|
|
$
|
36
|
|
$
|
28
|
|
$
|
30
|
|
|
28.6
|
%
|
|
20.0
|
%
|
Net loan charge-offs
to average total loans
|
|
|
.25
|
%
|
|
.20
|
%
|
|
.22
|
%
|
|
N/A
|
|
|
N/A
|
|
Nonperforming loans
at period end (a)
|
|
$
|
419
|
|
$
|
437
|
|
$
|
396
|
|
|
(4.1)
|
%
|
|
5.8
|
%
|
Nonperforming assets
at period end
|
|
|
440
|
|
|
457
|
|
|
410
|
|
|
(3.7)
|
|
|
7.3
|
|
Allowance for loan
and lease losses
|
|
|
796
|
|
|
794
|
|
|
814
|
|
|
.3
|
|
|
(2.2)
|
|
Allowance for loan
and lease losses to nonperforming loans
|
|
|
190.0
|
%
|
|
181.7
|
%
|
|
205.6
|
%
|
|
N/A
|
|
|
N/A
|
|
Provision for credit
losses
|
|
|
41
|
|
|
35
|
|
|
12
|
|
|
17.1
|
%
|
|
241.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Loan
balances exclude $12 million, $12 million, and $15 million of
purchased credit impaired loans at June 30, 2015, March 31, 2015,
and June 30, 2014,
|
respectively.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
N/A = Not
Applicable
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Key's provision for credit losses was $41
million for the second quarter of 2015, compared to
$12 million for the second quarter of
2014 and $35 million for the first
quarter of 2015. Key's allowance for loan and lease losses
was $796 million, or 1.37% of total
period-end loans, at June 30, 2015,
compared to 1.46% at June 30, 2014,
and 1.37% at March 31,
2015.
Net loan charge-offs for the second quarter of 2015 totaled
$36 million, or .25% of average total
loans. These results compare to $30
million, or .22%, for the second quarter of 2014, and
$28 million, or .20%, for the first
quarter of 2015.
At June 30, 2015, Key's
nonperforming loans totaled $419
million and represented .72% of period-end portfolio loans,
compared to .71% at June 30, 2014,
and .75% at March 31, 2015.
Nonperforming assets at June 30, 2015
totaled $440 million and represented
.75% of period-end portfolio loans and OREO and other nonperforming
assets, compared to .74% at June 30,
2014, and .79% at March 31,
2015.
CAPITAL
Key's estimated risk-based capital ratios included in the
following table continued to exceed all "well-capitalized"
regulatory benchmarks at June 30,
2015.
Capital
Ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6-30-15
|
|
|
3-31-15
|
|
|
6-30-14
|
|
Common Equity Tier 1
(a), (b)
|
|
10.69
|
%
|
|
10.64
|
%
|
|
N/A
|
|
Tier 1 common equity
(b)
|
|
N/A
|
|
|
N/A
|
|
|
11.25
|
%
|
Tier 1 risk-based
capital (a)
|
|
11.10
|
%
|
|
11.04
|
%
|
|
11.99
|
|
Total risk based
capital (a)
|
|
12.63
|
|
|
12.79
|
|
|
14.14
|
|
Tangible common
equity to tangible assets (b)
|
|
9.86
|
|
|
9.92
|
|
|
10.15
|
|
Leverage
(a)
|
|
10.73
|
|
|
10.91
|
|
|
11.24
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
6-30-15 ratio is
estimated.
|
|
|
(b)
|
The table entitled
"GAAP to Non-GAAP Reconciliations" in the attached financial
supplement presents the computations of certain financial measures
related to "Common Equity Tier 1" (compliance date of January 1,
2015, under the Regulatory Capital Rules) and "Tier 1 common
equity" (prior to January 1, 2015). The table reconciles the GAAP
performance measures to the corresponding non-GAAP measures, which
provides a basis for period-to-period comparisons. See below for
further information on the Regulatory Capital Rules.
|
As shown in the preceding table, at June
30, 2015, Key's estimated Common Equity Tier 1 and Tier 1
risk-based capital ratios stood at 10.69% and 11.10%,
respectively. In addition, the tangible common equity ratio
was 9.86% at June 30, 2015.
In October 2013, federal banking
regulators published the final Basel III capital framework for U.S.
banking organizations (the "Regulatory Capital Rules"). The
mandatory compliance date for Key as a "standardized approach"
banking organization began on January 1,
2015, subject to transitional provisions extending to
January 1, 2019. Key's
estimated Common Equity Tier 1 as calculated under the fully
phased-in Regulatory Capital Rules was 10.58% at June 30, 2015. This estimate exceeds the
fully phased-in required minimum Common Equity Tier 1 and Capital
Conservation Buffer of 7.00%.
Summary of Changes
in Common Shares Outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
in
thousands
|
|
|
|
|
|
|
|
|
|
|
|
Change 2Q15
vs.
|
|
|
|
|
|
2Q15
|
|
|
1Q15
|
|
|
2Q14
|
|
|
1Q15
|
|
|
2Q14
|
|
Shares outstanding at
beginning of period
|
|
|
850,920
|
|
|
859,403
|
|
|
884,869
|
|
|
(1.0)
|
%
|
|
(3.8)
|
%
|
Common shares
repurchased
|
|
|
(8,794)
|
|
|
(14,087)
|
|
|
(7,824)
|
|
|
(37.6)
|
|
|
12.4
|
|
Shares reissued
(returned) under employee benefit plans
|
|
|
1,482
|
|
|
5,571
|
|
|
(222)
|
|
|
(73.4)
|
|
|
N/M
|
|
Common shares
exchanged for Series A Preferred Stock
|
|
|
—
|
|
|
33
|
|
|
—
|
|
|
N/M
|
|
|
N/M
|
|
|
Shares outstanding at
end of period
|
|
|
843,608
|
|
|
850,920
|
|
|
876,823
|
|
|
(.9)
|
%
|
|
(3.8)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As previously reported, Key's 2015 capital plan includes common
share repurchases of up to $725
million, which are expected to be executed through the
second quarter of 2016. During the second quarter of 2015, Key
completed $129 million of common
share repurchases, including repurchases to offset issuances of
common shares under employee compensation plans.
LINE OF BUSINESS RESULTS
The following table shows the contribution made by each major
business segment to Key's taxable-equivalent revenue from
continuing operations and income (loss) from continuing operations
attributable to Key for the periods presented. For more
detailed financial information pertaining to each business segment,
see the tables at the end of this release.
Major Business
Segments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
dollars in
millions
|
|
|
|
|
|
|
|
|
|
|
|
Change 2Q15
vs.
|
|
|
|
|
|
2Q15
|
|
|
1Q15
|
|
|
2Q14
|
|
|
1Q15
|
|
|
2Q14
|
|
Revenue from
continuing operations (TE)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Key Community
Bank
|
|
$
|
559
|
|
$
|
549
|
|
$
|
553
|
|
|
1.8
|
%
|
|
1.1
|
%
|
Key Corporate
Bank
|
|
|
477
|
|
|
401
|
|
|
395
|
|
|
19.0
|
|
|
20.8
|
|
Other
Segments
|
|
|
44
|
|
|
66
|
|
|
87
|
|
|
(33.3)
|
|
|
(49.4)
|
|
|
Total
segments
|
|
|
1,080
|
|
|
1,016
|
|
|
1,035
|
|
|
6.3
|
|
|
4.3
|
|
Reconciling
Items
|
|
|
(1)
|
|
|
(2)
|
|
|
(1)
|
|
|
N/M
|
|
|
N/M
|
|
|
Total
|
|
$
|
1,079
|
|
$
|
1,014
|
|
$
|
1,034
|
|
|
6.4
|
%
|
|
4.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations attributable to Key
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Key Community
Bank
|
|
$
|
65
|
|
$
|
50
|
|
$
|
53
|
|
|
30.0
|
%
|
|
22.6
|
%
|
Key Corporate
Bank
|
|
|
135
|
|
|
127
|
|
|
135
|
|
|
6.3
|
|
|
—
|
|
Other
Segments
|
|
|
31
|
|
|
44
|
|
|
54
|
|
|
(29.5)
|
|
|
(42.6)
|
|
|
Total
segments
|
|
|
231
|
|
|
221
|
|
|
242
|
|
|
4.5
|
|
|
(4.5)
|
|
Reconciling
Items
|
|
|
4
|
|
|
7
|
|
|
5
|
|
|
(42.9)
|
|
|
(20.0)
|
|
|
Total
|
|
$
|
235
|
|
$
|
228
|
|
$
|
247
|
|
|
3.1
|
%
|
|
(4.9)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TE = Taxable
Equivalent, N/M = Not Meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Key Community
Bank
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
dollars in
millions
|
|
|
|
|
|
|
|
|
|
|
|
Change 2Q15
vs.
|
|
|
|
|
|
2Q15
|
|
|
1Q15
|
|
|
2Q14
|
|
|
1Q15
|
|
|
2Q14
|
|
Summary of
operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
(TE)
|
|
$
|
362
|
|
$
|
358
|
|
$
|
361
|
|
|
1.1
|
%
|
|
.3
|
%
|
Noninterest
income
|
|
|
197
|
|
|
191
|
|
|
192
|
|
|
3.1
|
|
|
2.6
|
|
|
Total revenue
(TE)
|
|
|
559
|
|
|
549
|
|
|
553
|
|
|
1.8
|
|
|
1.1
|
|
Provision for credit
losses
|
|
|
7
|
|
|
29
|
|
|
25
|
|
|
(75.9)
|
|
|
(72.0)
|
|
Noninterest
expense
|
|
|
449
|
|
|
441
|
|
|
443
|
|
|
1.8
|
|
|
1.4
|
|
|
Income (loss) before
income taxes (TE)
|
|
|
103
|
|
|
79
|
|
|
85
|
|
|
30.4
|
|
|
21.2
|
|
Allocated income
taxes (benefit) and TE adjustments
|
|
|
38
|
|
|
29
|
|
|
32
|
|
|
31.0
|
|
|
18.8
|
|
|
Net income (loss)
attributable to Key
|
|
$
|
65
|
|
$
|
50
|
|
$
|
53
|
|
|
30.0
|
%
|
|
22.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
balances
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and
leases
|
|
$
|
30,707
|
|
$
|
30,662
|
|
$
|
30,034
|
|
|
.1
|
%
|
|
2.2
|
%
|
Total
assets
|
|
|
32,758
|
|
|
32,716
|
|
|
32,132
|
|
|
.1
|
|
|
1.9
|
|
Deposits
|
|
|
50,766
|
|
|
50,417
|
|
|
50,232
|
|
|
.7
|
|
|
1.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets under
management at period end
|
|
$
|
38,399
|
|
$
|
39,281
|
|
$
|
39,632
|
|
|
(2.2)
|
%
|
|
(3.1)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TE = Taxable
Equivalent
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional Key
Community Bank Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
dollars in
millions
|
|
|
|
|
|
|
|
|
|
|
|
Change 2Q15
vs.
|
|
|
|
|
|
2Q15
|
|
|
1Q15
|
|
|
2Q14
|
|
|
1Q15
|
|
|
2Q14
|
|
Noninterest
income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trust and investment
services income
|
|
$
|
76
|
|
$
|
75
|
|
$
|
71
|
|
|
1.3
|
%
|
|
7.0
|
%
|
Service charges on
deposit accounts
|
|
|
52
|
|
|
51
|
|
|
55
|
|
|
2.0
|
|
|
(5.5)
|
|
Cards and payments
income
|
|
|
43
|
|
|
38
|
|
|
38
|
|
|
13.2
|
|
|
13.2
|
|
Other noninterest
income
|
|
|
26
|
|
|
27
|
|
|
28
|
|
|
(3.7)
|
|
|
(7.1)
|
|
|
Total noninterest
income
|
|
$
|
197
|
|
$
|
191
|
|
$
|
192
|
|
|
3.1
|
%
|
|
2.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average deposit
balances
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOW and money market
deposit accounts
|
|
$
|
28,284
|
|
$
|
27,873
|
|
$
|
27,578
|
|
|
1.5
|
%
|
|
2.6
|
%
|
Savings
deposits
|
|
|
2,385
|
|
|
2,377
|
|
|
2,483
|
|
|
.3
|
|
|
(3.9)
|
|
Certificates of
deposit ($100,000 or more)
|
|
|
1,547
|
|
|
1,558
|
|
|
2,169
|
|
|
(.7)
|
|
|
(28.7)
|
|
Other time
deposits
|
|
|
3,132
|
|
|
3,211
|
|
|
3,580
|
|
|
(2.5)
|
|
|
(12.5)
|
|
Deposits in foreign
office
|
|
|
299
|
|
|
333
|
|
|
294
|
|
|
(10.2)
|
|
|
1.7
|
|
Noninterest-bearing
deposits
|
|
|
15,119
|
|
|
15,065
|
|
|
14,128
|
|
|
.4
|
|
|
7.0
|
|
|
Total
deposits
|
|
$
|
50,766
|
|
$
|
50,417
|
|
$
|
50,232
|
|
|
.7
|
%
|
|
1.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Home equity
loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
balance
|
|
$
|
10,266
|
|
$
|
10,316
|
|
$
|
10,321
|
|
|
|
|
|
|
|
Weighted-average
loan-to-value ratio (at date of origination)
|
|
|
71
|
%
|
|
71
|
%
|
|
71
|
%
|
|
|
|
|
|
|
Percent first lien
positions
|
|
|
60
|
|
|
60
|
|
|
59
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Branches
|
|
|
989
|
|
|
992
|
|
|
1,009
|
|
|
|
|
|
|
|
Automated teller
machines
|
|
|
1,280
|
|
|
1,287
|
|
|
1,311
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Key Community Bank Summary of Operations
- Net income increased to $65
million, up 22.6% from prior year
- Commercial, financial, and agricultural loan growth of
$692 million, or 5.9% from prior
year
- Average deposits (excluding certificates of deposit and other
time deposits) up $1.6 billion, or
3.6% from the prior year
Key Community Bank recorded net income attributable to Key of
$65 million for the second quarter of
2015, compared to net income attributable to Key of $53 million for the year-ago quarter.
Taxable-equivalent net interest income increased by $1 million, or .3%, from the second quarter of
2014. Average loans and leases increased 2.2% due to
commercial, financial, and agricultural loan growth of $692 million, or 5.9%, while average deposits
increased 1.1% from one year ago.
Noninterest income increased by $5
million, or 2.6%, from the year-ago quarter.
Year-over-year improvement reflected core business growth,
including trust and investment services income and cards and
payments income, which each increased $5
million, partially offset by a $3
million decrease in service charges on deposit accounts.
The provision for credit losses was $7
million in the second quarter of 2015, compared to
$25 million for the same period one
year ago.
Noninterest expense increased by $6
million, or 1.4%, from the year-ago quarter, including
increases in personnel expense of $2
million and nonpersonnel expense of $4 million, driven by higher marketing and
sales-related expenses.
Key Corporate
Bank
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
dollars in
millions
|
|
|
|
|
|
|
|
|
|
|
|
Change 2Q15
vs.
|
|
|
|
|
|
2Q15
|
|
|
1Q15
|
|
|
2Q14
|
|
|
1Q15
|
|
|
2Q14
|
|
Summary of
operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
(TE)
|
|
$
|
227
|
|
$
|
213
|
|
$
|
210
|
|
|
6.6
|
%
|
|
8.1
|
%
|
Noninterest
income
|
|
|
250
|
|
|
188
|
|
|
185
|
|
|
33.0
|
|
|
35.1
|
|
|
Total revenue
(TE)
|
|
|
477
|
|
|
401
|
|
|
395
|
|
|
19.0
|
|
|
20.8
|
|
Provision for credit
losses
|
|
|
38
|
|
|
8
|
|
|
(4)
|
|
|
375.0
|
|
|
N/M
|
|
Noninterest
expense
|
|
|
252
|
|
|
216
|
|
|
207
|
|
|
16.7
|
|
|
21.7
|
|
|
Income (loss) before
income taxes (TE)
|
|
|
187
|
|
|
177
|
|
|
192
|
|
|
5.6
|
|
|
(2.6)
|
|
Allocated income
taxes and TE adjustments
|
|
|
52
|
|
|
50
|
|
|
54
|
|
|
4.0
|
|
|
(3.7)
|
|
|
Net income
(loss)
|
|
|
135
|
|
|
127
|
|
|
138
|
|
|
6.3
|
|
|
(2.2)
|
%
|
Less: Net income
(loss) attributable to noncontrolling interests
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
N/M
|
|
|
N/M
|
|
|
Net income (loss)
attributable to Key
|
|
$
|
135
|
|
$
|
127
|
|
$
|
135
|
|
|
6.3
|
%
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
balances
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and
leases
|
|
$
|
25,298
|
|
$
|
24,722
|
|
$
|
22,886
|
|
|
2.3
|
%
|
|
10.5
|
%
|
Loans held for
sale
|
|
|
1,234
|
|
|
775
|
|
|
429
|
|
|
59.2
|
|
|
187.6
|
|
Total
assets
|
|
|
31,228
|
|
|
30,297
|
|
|
28,007
|
|
|
3.1
|
|
|
11.5
|
|
Deposits
|
|
|
19,708
|
|
|
18,567
|
|
|
16,357
|
|
|
6.1
|
|
|
20.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets under
management at period end
|
|
|
—
|
|
|
—
|
|
$
|
37
|
|
|
N/M
|
|
|
N/M
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TE = Taxable
Equivalent, N/M = Not Meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional Key
Corporate Bank Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
dollars in
millions
|
|
|
|
|
|
|
|
|
|
|
|
Change 2Q15
vs.
|
|
|
|
|
|
2Q15
|
|
|
1Q15
|
|
|
2Q14
|
|
|
1Q15
|
|
|
2Q14
|
|
Noninterest
income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trust and investment
services income
|
|
$
|
35
|
|
$
|
34
|
|
$
|
23
|
|
|
2.9
|
%
|
|
52.2
|
%
|
Investment banking
and debt placement fees
|
|
|
139
|
|
|
68
|
|
|
97
|
|
|
104.4
|
|
|
43.3
|
|
Operating lease
income and other leasing gains
|
|
|
18
|
|
|
14
|
|
|
11
|
|
|
28.6
|
|
|
63.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate services
income
|
|
|
33
|
|
|
32
|
|
|
30
|
|
|
3.1
|
|
|
10.0
|
|
Service charges on
deposit accounts
|
|
|
11
|
|
|
10
|
|
|
11
|
|
|
10.0
|
|
|
—
|
|
Cards and payments
income
|
|
|
4
|
|
|
4
|
|
|
3
|
|
|
—
|
|
|
33.3
|
|
|
Payments and services
income
|
|
|
48
|
|
|
46
|
|
|
44
|
|
|
4.3
|
|
|
9.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage servicing
fees
|
|
|
9
|
|
|
13
|
|
|
11
|
|
|
(30.8)
|
|
|
(18.2)
|
|
Other noninterest
income
|
|
|
1
|
|
|
13
|
|
|
(1)
|
|
|
(92.3)
|
|
|
N/M
|
|
|
Total noninterest
income
|
|
$
|
250
|
|
$
|
188
|
|
$
|
185
|
|
|
33.0
|
%
|
|
35.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
N/M = Not
Meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Key Corporate Bank Summary of Operations
- Record high quarter for investment banking and debt placement
fees
- Revenue up 20.8% from the prior year
- Average loan and lease balances up 10.5% from the prior
year
- Average deposits up 20.5% from the prior year
Key Corporate Bank recorded net income attributable to Key of
$135 million for the second quarter
of 2015, unchanged from the same period one year ago.
Taxable-equivalent net interest income increased by $17 million, or 8.1%, compared to the second
quarter of 2014. Average earning assets increased
$2.6 billion, or 10.3%, from the
year-ago quarter, primarily driven by loan growth in commercial,
financial and agricultural and real estate commercial mortgage
loans. This growth in earning assets drove an increase of
$10 million in earning asset
spread. Average deposit balances increased $3.4 billion, or 20.5%, from the year-ago
quarter, driven by commercial mortgage servicing deposits and other
commercial client inflows. This growth in deposit balances
drove an increase of $13 million in
deposit and borrowing
spread.
Noninterest income was up $65
million, or 35.1% from the prior year. This growth was
primarily due to a record high quarter for investment banking and
debt placement fees, which increased $42
million or 43.3%, driven by strength in financial advisory
fees and loan syndications. Trust and investment services
income increased $12 million, mostly
due to the Pacific Crest Securities acquisition. Operating
lease income and other leasing gains also increased $7 million, or
63.6%.
The provision for credit losses was an expense of $38 million for the second quarter of 2015,
compared to a credit of $4 million
for the same period one year ago.
Noninterest expense increased by $45
million, or 21.7%, from the second quarter of 2014.
This increase was due to performance-based compensation and
expenses related to the third quarter 2014 acquisition of Pacific
Crest Securities.
Other Segments
Other Segments consist of Corporate Treasury, Key's Principal
Investing unit and various exit portfolios. Other Segments
generated net income attributable to Key of $31 million for the second quarter of 2015,
compared to net income attributable to Key of $54 million for the same period last year.
These results were primarily due to $16
million in lower net gains on principal investing and
$19 million in lower operating lease
income and other leasing gains, partially offset by a $3 million increase in corporate-owned life
insurance income and lower personnel expense.
*****
KeyCorp was organized more than 160 years ago and is
headquartered in Cleveland,
Ohio. One of the nation's largest bank-based financial
services companies, Key had assets of approximately $94.6 billion at June 30,
2015.
Key provides deposit, lending, cash management and investment
services to individuals and small and mid-sized businesses in 12
states under the name KeyBank National Association. Key also
provides a broad range of sophisticated corporate and investment
banking products, such as merger and acquisition advice, public and
private debt and equity, syndications and derivatives to middle
market companies in selected industries throughout the United States under the KeyBanc Capital
Markets trade name. For more information, visit
https://www.key.com/. KeyBank is Member FDIC.
This earnings release contains forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995. These statements do not relate strictly to historical or
current facts. Forward-looking statements usually can be
identified by the use of words such as "goal," "objective," "plan,"
"expect," "assume," "anticipate," "intend," "project," "believe,"
"estimate," or other words of similar meaning. Forward-looking
statements provide our current expectations or forecasts of future
events, circumstances, results, or aspirations. Forward-looking
statements, by their nature, are subject to assumptions, risks and
uncertainties, many of which are outside of our control. Our actual
results may differ materially from those set forth in our
forward-looking statements. There is no assurance that any list of
risks and uncertainties or risk factors is complete. Factors
that could cause Key's actual results to differ from those
described in the forward-looking statements can be found in
KeyCorp's Form 10-K for the year ended December 31, 2014, which has been filed with the
Securities and Exchange Commission (the "SEC") and is available on
Key's website (www.key.com/ir) and on the SEC's website
(www.sec.gov). These factors may include, among others:
deterioration of commercial real estate market fundamentals,
adverse changes in credit quality trends, declining asset prices, a
reversal of the U.S. economic recovery due to financial, political,
or other shocks, and the extensive and increasing regulation of the
U.S. financial services industry. Any forward-looking
statements made by us or on our behalf speak only as of the date
they are made and we do not undertake any obligation to update any
forward-looking statement to reflect the impact of subsequent
events or circumstances.
Notes to Editors:
A live Internet broadcast
of KeyCorp's conference call to discuss quarterly results and
currently anticipated earnings trends and to answer analysts'
questions can be accessed through the Investor Relations section at
https://www.key.com/ir at 9:00 a.m.
ET, on Thursday, July 16,
2015. An audio replay of the call will be available through
July 23, 2015.
Financial
Highlights
|
|
(dollars in millions,
except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
|
|
6-30-15
|
|
|
3-31-15
|
|
|
6-30-14
|
|
Summary of
operations
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
(TE)
|
$
|
591
|
|
|
$
|
577
|
|
|
$
|
579
|
|
|
Noninterest
income
|
|
488
|
|
|
|
437
|
|
|
|
455
|
|
|
|
Total revenue
(TE)
|
|
1,079
|
|
|
|
1,014
|
|
|
|
1,034
|
|
|
Provision for credit
losses
|
|
41
|
|
|
|
35
|
|
|
|
12
|
|
|
Noninterest
expense
|
|
711
|
|
|
|
669
|
|
|
|
687
|
|
|
Income (loss) from
continuing operations attributable to Key
|
|
235
|
|
|
|
228
|
|
|
|
247
|
|
|
Income (loss) from
discontinued operations, net of taxes (a)
|
|
3
|
|
|
|
5
|
|
|
|
(28)
|
|
|
Net income (loss)
attributable to Key
|
|
238
|
|
|
|
233
|
|
|
|
219
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations attributable to Key common
shareholders
|
$
|
230
|
|
|
$
|
222
|
|
|
$
|
242
|
|
|
Income (loss) from
discontinued operations, net of taxes (a)
|
|
3
|
|
|
|
5
|
|
|
|
(28)
|
|
|
Net income (loss)
attributable to Key common shareholders
|
|
233
|
|
|
|
227
|
|
|
|
214
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per common
share
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations attributable to Key common
shareholders
|
$
|
.27
|
|
|
$
|
.26
|
|
|
$
|
.28
|
|
|
Income (loss) from
discontinued operations, net of taxes
(a)
|
|
—
|
|
|
|
.01
|
|
|
|
(.03)
|
|
|
Net income (loss)
attributable to Key common shareholders
(b)
|
|
.28
|
|
|
|
.27
|
|
|
|
.24
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations attributable to Key common shareholders —
assuming dilution
|
|
.27
|
|
|
|
.26
|
|
|
|
.27
|
|
|
Income (loss) from
discontinued operations, net of taxes — assuming dilution
(a)
|
|
—
|
|
|
|
.01
|
|
|
|
(.03)
|
|
|
Net income (loss)
attributable to Key common shareholders — assuming dilution
(b)
|
|
.27
|
|
|
|
.26
|
|
|
|
.24
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends
paid
|
|
.075
|
|
|
|
.065
|
|
|
|
.065
|
|
|
Book value at period
end
|
|
12.21
|
|
|
|
12.12
|
|
|
|
11.65
|
|
|
Tangible book value
at period end
|
|
10.92
|
|
|
|
10.84
|
|
|
|
10.50
|
|
|
Market price at
period end
|
|
15.02
|
|
|
|
14.16
|
|
|
|
14.33
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance
ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
From continuing
operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
total assets
|
|
1.03
|
%
|
|
|
1.03
|
%
|
|
|
1.14
|
%
|
|
Return on average
common equity
|
|
8.96
|
|
|
|
8.76
|
|
|
|
9.55
|
|
|
Return on average
tangible common equity (c)
|
|
10.01
|
|
|
|
9.80
|
|
|
|
10.60
|
|
|
Net interest margin
(TE)
|
|
2.88
|
|
|
|
2.91
|
|
|
|
2.98
|
|
|
Cash efficiency
ratio (c)
|
|
65.1
|
|
|
|
65.1
|
|
|
|
65.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From consolidated
operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
total assets
|
|
1.02
|
%
|
|
|
1.03
|
%
|
|
|
.96
|
%
|
|
Return on average
common equity
|
|
9.07
|
|
|
|
8.96
|
|
|
|
8.44
|
|
|
Return on average
tangible common equity (c)
|
|
10.14
|
|
|
|
10.02
|
|
|
|
9.37
|
|
|
Net interest margin
(TE)
|
|
2.85
|
|
|
|
2.88
|
|
|
|
2.94
|
|
|
Loan to deposit
(d)
|
|
87.3
|
|
|
|
86.9
|
|
|
|
87.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital ratios at
period end
|
|
|
|
|
|
|
|
|
|
|
|
|
Key shareholders'
equity to assets
|
|
11.19
|
%
|
|
|
11.26
|
%
|
|
|
11.44
|
%
|
|
Key common
shareholders' equity to assets
|
|
10.89
|
|
|
|
10.95
|
|
|
|
11.13
|
|
|
Tangible common
equity to tangible assets (c)
|
|
9.86
|
|
|
|
9.92
|
|
|
|
10.15
|
|
|
Common Equity Tier
1 (c), (e)
|
|
10.69
|
|
|
|
10.64
|
|
|
|
N/A
|
|
|
Tier 1 common
equity (c)
|
|
N/A
|
|
|
|
N/A
|
|
|
|
11.25
|
|
|
Tier 1 risk-based
capital (e)
|
|
11.10
|
|
|
|
11.04
|
|
|
|
11.99
|
|
|
Total risk-based
capital (e)
|
|
12.63
|
|
|
|
12.79
|
|
|
|
14.14
|
|
|
Leverage
(e)
|
|
10.73
|
|
|
|
10.91
|
|
|
|
11.24
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset quality —
from continuing operations
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loan
charge-offs
|
$
|
36
|
|
|
$
|
28
|
|
|
$
|
30
|
|
|
Net loan charge-offs
to average loans
|
|
.25
|
%
|
|
|
.20
|
%
|
|
|
.22
|
%
|
|
Allowance for loan
and lease losses
|
$
|
796
|
|
|
$
|
794
|
|
|
$
|
814
|
|
|
Allowance for credit
losses
|
|
841
|
|
|
|
835
|
|
|
|
851
|
|
|
Allowance for loan
and lease losses to period-end loans
|
|
1.37
|
%
|
|
|
1.37
|
%
|
|
|
1.46
|
%
|
|
Allowance for credit
losses to period-end loans
|
|
1.44
|
|
|
|
1.44
|
|
|
|
1.53
|
|
|
Allowance for loan
and lease losses to nonperforming loans
|
|
190.0
|
|
|
|
181.7
|
|
|
|
205.6
|
|
|
Allowance for credit
losses to nonperforming loans
|
|
200.7
|
|
|
|
191.1
|
|
|
|
214.9
|
|
|
Nonperforming loans
at period end (f)
|
$
|
419
|
|
|
$
|
437
|
|
|
$
|
396
|
|
|
Nonperforming assets
at period end
|
|
440
|
|
|
|
457
|
|
|
|
410
|
|
|
Nonperforming loans
to period-end portfolio loans
|
|
.72
|
%
|
|
|
.75
|
%
|
|
|
.71
|
%
|
|
Nonperforming assets
to period-end portfolio loans plus OREO and other nonperforming
assets
|
|
.75
|
|
|
|
.79
|
|
|
|
.74
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trust and
brokerage assets
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets under
management
|
$
|
38,399
|
|
|
$
|
39,281
|
|
|
$
|
39,669
|
|
|
Nonmanaged and
brokerage assets
|
|
48,789
|
|
|
|
49,508
|
|
|
|
48,728
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
data
|
|
|
|
|
|
|
|
|
|
|
|
|
Average full-time
equivalent employees
|
|
13,455
|
|
|
|
13,591
|
|
|
|
13,867
|
|
|
Branches
|
|
989
|
|
|
|
992
|
|
|
|
1,009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable-equivalent
adjustment
|
$
|
7
|
|
|
$
|
6
|
|
|
$
|
6
|
|
Financial
Highlights (continued)
|
(dollars in millions,
except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months
ended
|
|
|
|
|
6-30-15
|
|
|
6-30-14
|
|
Summary of
operations
|
|
|
|
|
|
|
|
|
Net interest income
(TE)
|
$
|
1,168
|
|
|
$
|
1,148
|
|
|
Noninterest
income
|
|
925
|
|
|
|
890
|
|
|
|
Total revenue
(TE)
|
|
2,093
|
|
|
|
2,038
|
|
|
Provision for credit
losses
|
|
76
|
|
|
|
16
|
|
|
Noninterest
expense
|
|
1,380
|
|
|
|
1,351
|
|
|
Income (loss) from
continuing operations attributable to Key
|
|
463
|
|
|
|
485
|
|
|
Income (loss) from
discontinued operations, net of taxes
(a)
|
|
8
|
|
|
|
(24)
|
|
|
Net income (loss)
attributable to Key
|
|
471
|
|
|
|
461
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations attributable to Key common
shareholders
|
$
|
452
|
|
|
$
|
474
|
|
|
Income (loss) from
discontinued operations, net of taxes
(a)
|
|
8
|
|
|
|
(24)
|
|
|
Net income (loss)
attributable to Key common shareholders
|
|
460
|
|
|
|
450
|
|
|
|
|
|
|
|
|
|
|
|
Per common
share
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations attributable to Key common
shareholders
|
$
|
.53
|
|
|
$
|
.54
|
|
|
Income (loss) from
discontinued operations, net of taxes
(a)
|
|
.01
|
|
|
|
(.03)
|
|
|
Net income (loss)
attributable to Key common shareholders
(b)
|
|
.54
|
|
|
|
.51
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations attributable to Key common shareholders —
assuming dilution
|
|
.52
|
|
|
|
.53
|
|
|
Income (loss) from
discontinued operations, net of taxes — assuming dilution
(a)
|
|
.01
|
|
|
|
(.03)
|
|
|
Net income (loss)
attributable to Key common shareholders — assuming dilution
(b)
|
|
.53
|
|
|
|
.51
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends
paid
|
|
.14
|
|
|
|
.12
|
|
|
|
|
|
|
|
|
|
|
|
Performance ratios
|
|
|
|
|
|
|
|
|
From continuing
operations:
|
|
|
|
|
|
|
|
|
Return on average
total assets
|
|
1.03
|
%
|
|
|
1.13
|
%
|
|
Return on average
common equity
|
|
8.86
|
|
|
|
9.44
|
|
|
Return on average
tangible common equity (c)
|
|
9.91
|
|
|
|
10.49
|
|
|
Net interest margin
(TE)
|
|
2.89
|
|
|
|
2.99
|
|
|
Cash efficiency
ratio (c)
|
|
65.1
|
|
|
|
65.4
|
|
|
|
|
|
|
|
|
|
|
|
|
From consolidated
operations:
|
|
|
|
|
|
|
|
|
Return on average
total assets
|
|
1.02
|
%
|
|
|
1.03
|
%
|
|
Return on average
common equity
|
|
9.01
|
|
|
|
8.96
|
|
|
Return on average
tangible common equity (c)
|
|
10.08
|
|
|
|
9.96
|
|
|
Net interest margin
(TE)
|
|
2.86
|
|
|
|
2.95
|
|
|
|
|
|
|
|
|
|
|
|
Asset quality —
from continuing operations
|
|
|
|
|
|
|
|
|
Net loan
charge-offs
|
$
|
64
|
|
|
$
|
50
|
|
|
Net loan charge-offs
to average total loans
|
|
.22
|
%
|
|
|
.18
|
%
|
|
|
|
|
|
|
|
|
|
|
Other
data
|
|
|
|
|
|
|
|
|
Average full-time
equivalent employees
|
|
13,512
|
|
|
|
13,961
|
|
|
|
|
|
|
|
|
|
|
|
Taxable-equivalent
adjustment
|
$
|
13
|
|
|
$
|
12
|
|
|
|
|
|
|
|
|
|
(a)
|
In April 2009,
management decided to wind down the operations of Austin Capital
Management, Ltd., a subsidiary that specialized in managing hedge
fund investments for institutional customers. In September
2009, management decided to discontinue the education lending
business conducted through Key Education Resources, the education
payment and financing unit of KeyBank National Association.
In February 2013, Key decided to sell its investment subsidiary,
Victory Capital Management, and its broker-dealer affiliate,
Victory Capital Advisors, to a private equity fund. As a
result of these decisions, Key has accounted for these businesses
as discontinued operations.
|
(b)
|
Earnings per share
may not foot due to rounding.
|
(c)
|
The following table
entitled "GAAP to Non-GAAP Reconciliations" presents the
computations of certain financial measures related to "tangible
common equity," "Common Equity Tier 1" (compliance date of
January 1, 2015, under the Regulatory Capital Rules) "Tier 1 common
equity" (prior to January 1, 2015), and "cash efficiency."
The table reconciles the GAAP performance measures to the
corresponding non-GAAP measures, which provides a basis for
period-to-period comparisons. For further information on the
Regulatory Capital Rules, see the "Capital" section of this
release.
|
(d)
|
Represents period-end
consolidated total loans and loans held for sale (excluding
education loans in the securitization trusts for periods prior to
September 30, 2014) divided by period-end consolidated total
deposits (excluding deposits in foreign office).
|
(e)
|
6-30-15 ratio is
estimated.
|
(f)
|
Loan balances exclude
$12 million, $12 million, and $15 million of purchased credit
impaired loans at June 30, 2015, March 31, 2015, and June 30, 2014,
respectively.
|
TE = Taxable
Equivalent, GAAP = U.S. generally accepted accounting
principles
|
GAAP to Non-GAAP
Reconciliations
|
(dollars in
millions)
|
|
The table below
presents certain non-GAAP financial measures related to "tangible
common equity," "return on tangible common equity," "Common Equity
Tier 1," "Tier 1 common equity," "pre-provision net revenue," and
"cash efficiency ratio."
|
|
The tangible common
equity ratio and the return on tangible common equity ratio have
been a focus for some investors, and management believes these
ratios may assist investors in analyzing Key's capital position
without regard to the effects of intangible assets and preferred
stock. Traditionally, the banking regulators have assessed
bank and bank holding company capital adequacy based on both the
amount and the composition of capital, the calculation of which is
prescribed in federal banking regulations. In October 2013,
the federal banking regulators published the final Basel III
capital framework for U.S. banking organizations (the "Regulatory
Capital Rules"). The Regulatory Capital Rules require higher
and better-quality capital and introduces a new capital measure,
"Common Equity Tier 1," a non-GAAP financial measure. The
mandatory compliance date for Key as a "standardized approach"
banking organization began on January 1, 2015, subject to
transitional provisions extending to January 1, 2019. Prior
to January 1, 2015, the Federal Reserve focused its assessment of
capital adequacy on a component of Tier 1 risk-based capital known
as Tier 1 common equity, also a non-GAAP financial
measure.
|
|
Common Equity Tier 1
is not formally defined by GAAP and is considered to be a non-GAAP
financial measure. Since analysts and banking regulators may
assess Key's capital adequacy using tangible common equity and
Common Equity Tier 1, management believes it is useful to enable
investors to assess Key's capital adequacy on these same
bases. The table also reconciles the GAAP performance
measures to the corresponding non-GAAP measures.
|
|
The table also shows
the computation for pre-provision net revenue, which is not
formally defined by GAAP. Management believes that
eliminating the effects of the provision for loan and lease losses
makes it easier to analyze the results by presenting them on a more
comparable basis.
|
|
The cash efficiency
ratio is a ratio of two non-GAAP performance measures. As such,
there is no directly comparable GAAP performance measure. The
cash efficiency ratio performance measure removes the impact of
Key's intangible asset amortization from the calculation.
Management believes this ratio provides greater consistency and
comparability between Key's results and those of its peer
banks. Additionally, this ratio is used by analysts and
investors as they develop earnings forecasts and peer bank
analysis.
|
|
Non-GAAP financial
measures have inherent limitations, are not required to be
uniformly applied, and are not audited. Although these
non-GAAP financial measures are frequently used by investors to
evaluate a company, they have limitations as analytical tools, and
should not be considered in isolation, or as a substitute for
analyses of results as reported under GAAP.
|
|
|
|
|
|
Three months ended
|
|
|
|
|
|
6-30-15
|
|
|
3-31-15
|
|
|
6-30-14
|
|
Tangible common
equity to tangible assets at period end
|
|
|
|
|
|
|
|
|
|
|
|
|
Key shareholders'
equity (GAAP)
|
$
|
10,590
|
|
|
$
|
10,603
|
|
|
$
|
10,504
|
|
|
Less:
|
Intangible
assets (a)
|
|
1,085
|
|
|
|
1,088
|
|
|
|
1,008
|
|
|
|
Preferred Stock,
Series A (b)
|
|
281
|
|
|
|
281
|
|
|
|
282
|
|
|
|
Tangible common
equity (non-GAAP)
|
$
|
9,224
|
|
|
$
|
9,234
|
|
|
$
|
9,214
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
(GAAP)
|
$
|
94,606
|
|
|
$
|
94,206
|
|
|
$
|
91,798
|
|
|
Less:
|
Intangible
assets (a)
|
|
1,085
|
|
|
|
1,088
|
|
|
|
1,008
|
|
|
|
Tangible assets
(non-GAAP)
|
$
|
93,521
|
|
|
$
|
93,118
|
|
|
$
|
90,790
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible common
equity to tangible assets ratio (non-GAAP)
|
|
9.86
|
%
|
|
|
9.92
|
%
|
|
|
10.15
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Equity Tier
1 at period end
|
|
|
|
|
|
|
|
|
|
|
|
|
Key shareholders'
equity (GAAP)
|
$
|
10,590
|
|
|
$
|
10,603
|
|
|
|
—
|
|
|
Less:
|
Preferred Stock,
Series A (b)
|
|
281
|
|
|
|
281
|
|
|
|
—
|
|
|
|
Common Equity Tier 1
capital before adjustments and deductions
|
|
10,309
|
|
|
|
10,322
|
|
|
|
—
|
|
|
Less:
|
Goodwill, net of
deferred taxes
|
|
1,036
|
|
|
|
1,036
|
|
|
|
—
|
|
|
|
Intangible assets,
net of deferred taxes
|
|
33
|
|
|
|
36
|
|
|
|
—
|
|
|
|
Deferred tax
assets
|
|
1
|
|
|
|
1
|
|
|
|
—
|
|
|
|
Net unrealized gains
(losses) on available-for-sale securities, net of deferred
taxes
|
|
1
|
|
|
|
52
|
|
|
|
—
|
|
|
|
Accumulated gain
(loss) on cash flow hedges, net of deferred taxes
|
|
(21)
|
|
|
|
(8)
|
|
|
|
—
|
|
|
|
Amounts recorded in
accumulated other comprehensive income (loss), net
of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
deferred
taxes
|
|
(362)
|
|
|
|
(364)
|
|
|
|
—
|
|
|
|
Total Common Equity
Tier 1 capital (c)
|
$
|
9,621
|
|
|
$
|
9,569
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net risk-weighted
assets (regulatory) (c)
|
$
|
89,995
|
|
|
$
|
89,967
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Equity Tier 1
ratio (non-GAAP) (c)
|
|
10.69
|
%
|
|
|
10.64
|
%
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1 common
equity at period end
|
|
|
|
|
|
|
|
|
|
|
|
|
Key shareholders'
equity (GAAP)
|
|
—
|
|
|
|
—
|
|
|
$
|
10,504
|
|
|
Qualifying capital
securities
|
|
—
|
|
|
|
—
|
|
|
|
339
|
|
|
Less:
|
Goodwill
|
|
—
|
|
|
|
—
|
|
|
|
979
|
|
|
|
Accumulated other
comprehensive income (loss) (d)
|
|
—
|
|
|
|
—
|
|
|
|
(328)
|
|
|
|
Other assets
(e)
|
|
—
|
|
|
|
—
|
|
|
|
86
|
|
|
|
Total Tier 1 capital
(regulatory)
|
|
—
|
|
|
|
—
|
|
|
|
10,106
|
|
|
Less:
|
Qualifying capital
securities
|
|
—
|
|
|
|
—
|
|
|
|
339
|
|
|
|
Preferred Stock,
Series A (b)
|
|
—
|
|
|
|
—
|
|
|
|
282
|
|
|
|
Total Tier 1 common
equity (non-GAAP)
|
|
—
|
|
|
|
—
|
|
|
$
|
9,485
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net risk-weighted
assets (regulatory)
|
|
—
|
|
|
|
—
|
|
|
$
|
84,287
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1 common equity
ratio (non-GAAP)
|
|
—
|
|
|
|
—
|
|
|
|
11.25
|
%
|
GAAP to Non-GAAP
Reconciliations (continued)
|
(dollars in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
|
|
6-30-15
|
|
|
3-31-15
|
|
|
6-30-14
|
|
Pre-provision net
revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
(GAAP)
|
$
|
584
|
|
|
$
|
571
|
|
|
$
|
573
|
|
|
Plus:
|
Taxable-equivalent
adjustment
|
|
7
|
|
|
|
6
|
|
|
|
6
|
|
|
|
Noninterest income
(GAAP)
|
|
488
|
|
|
|
437
|
|
|
|
455
|
|
|
Less:
|
Noninterest expense
(GAAP)
|
|
711
|
|
|
|
669
|
|
|
|
687
|
|
|
Pre-provision net
revenue from continuing operations (non-GAAP)
|
$
|
368
|
|
|
$
|
345
|
|
|
$
|
347
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average tangible
common equity
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Key
shareholders' equity (GAAP)
|
$
|
10,590
|
|
|
$
|
10,570
|
|
|
$
|
10,459
|
|
|
Less:
|
Intangible assets
(average) (f)
|
|
1,086
|
|
|
|
1,089
|
|
|
|
1,010
|
|
|
|
Preferred Stock,
Series A (average)
|
|
290
|
|
|
|
290
|
|
|
|
291
|
|
|
|
Average tangible
common equity (non-GAAP)
|
$
|
9,214
|
|
|
$
|
9,191
|
|
|
$
|
9,158
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
tangible common equity from continuing operations
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
from continuing operations attributable to Key common shareholders
(GAAP)
|
$
|
230
|
|
|
$
|
222
|
|
|
$
|
242
|
|
|
Average tangible
common equity (non-GAAP)
|
|
9,214
|
|
|
|
9,191
|
|
|
|
9,158
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
tangible common equity from continuing operations
(non-GAAP)
|
|
10.01
|
%
|
|
|
9.80
|
%
|
|
|
10.60
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
tangible common equity consolidated
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Key common shareholders (GAAP)
|
$
|
233
|
|
|
$
|
227
|
|
|
$
|
214
|
|
|
Average tangible
common equity (non-GAAP)
|
|
9,214
|
|
|
|
9,191
|
|
|
|
9,158
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
tangible common equity consolidated (non-GAAP)
|
|
10.14
|
%
|
|
|
10.02
|
%
|
|
|
9.37
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash efficiency
ratio
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest expense
(GAAP)
|
$
|
711
|
|
|
$
|
669
|
|
|
$
|
687
|
|
|
Less:
|
Intangible asset
amortization (GAAP)
|
|
9
|
|
|
|
9
|
|
|
|
9
|
|
|
|
Adjusted noninterest
expense (non-GAAP)
|
$
|
702
|
|
|
$
|
660
|
|
|
$
|
678
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
(GAAP)
|
$
|
584
|
|
|
$
|
571
|
|
|
$
|
573
|
|
|
Plus:
|
Taxable-equivalent
adjustment
|
|
7
|
|
|
|
6
|
|
|
|
6
|
|
|
|
Noninterest income
(GAAP)
|
|
488
|
|
|
|
437
|
|
|
|
455
|
|
|
|
Total
taxable-equivalent revenue (non-GAAP)
|
$
|
1,079
|
|
|
$
|
1,014
|
|
|
$
|
1,034
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash efficiency ratio
(non-GAAP)
|
|
65.1
|
%
|
|
|
65.1
|
%
|
|
|
65.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
months
ended
|
|
|
|
|
|
|
|
|
|
|
|
|
6-30-15
|
|
|
|
|
|
|
|
|
Common Equity Tier
1 under the Regulatory Capital Rules (estimates)
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Equity Tier 1
under current regulatory rules
|
$
|
9,621
|
|
|
|
|
|
|
|
|
|
|
Adjustments from
current regulatory rules to the Regulatory Capital
Rules:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred tax assets
and other assets (g)
|
|
(51)
|
|
|
|
|
|
|
|
|
|
|
|
Common Equity Tier 1
anticipated under the Regulatory Capital Rules
(h)
|
$
|
9,570
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net risk-weighted
assets under current regulatory rules
|
$
|
89,995
|
|
|
|
|
|
|
|
|
|
|
Adjustments from
current regulatory rules to the Regulatory Capital
Rules:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage servicing
assets (i)
|
|
494
|
|
|
|
|
|
|
|
|
|
|
|
Deferred tax assets
(i)
|
|
22
|
|
|
|
|
|
|
|
|
|
|
|
Significant
investments (i)
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
Other assets
(j)
|
|
(51)
|
|
|
|
|
|
|
|
|
|
|
|
Total risk-weighted
assets anticipated under the Regulatory Capital Rules
(h)
|
$
|
90,460
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Equity Tier 1
ratio under the Regulatory Capital Rules (h)
|
|
10.58
|
%
|
|
|
|
|
|
|
|
|
GAAP to Non-GAAP
Reconciliations (continued)
|
(dollars in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months
ended
|
|
|
|
|
|
|
|
|
6-30-15
|
|
|
6-30-14
|
|
Pre-provision net
revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
(GAAP)
|
|
|
|
|
$
|
1,155
|
|
|
$
|
1,136
|
|
|
Plus:
|
Taxable-equivalent
adjustment
|
|
|
|
|
|
13
|
|
|
|
12
|
|
|
|
Noninterest income
(GAAP)
|
|
|
|
|
|
925
|
|
|
|
890
|
|
|
Less:
|
Noninterest expense
(GAAP)
|
|
|
|
|
|
1,380
|
|
|
|
1,351
|
|
|
Pre-provision net
revenue from continuing operations (non-GAAP)
|
|
|
|
|
$
|
713
|
|
|
$
|
687
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average tangible
common equity
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Key
shareholders' equity (GAAP)
|
|
|
|
|
$
|
10,580
|
|
|
$
|
10,415
|
|
|
Less:
|
Intangible assets
(average) (k)
|
|
|
|
|
|
1,088
|
|
|
|
1,011
|
|
|
|
Preferred Stock,
Series A (average)
|
|
|
|
|
|
290
|
|
|
|
291
|
|
|
|
Average tangible
common equity (non-GAAP)
|
|
|
|
|
$
|
9,202
|
|
|
$
|
9,113
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
tangible common equity from continuing operations
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
from continuing operations attributable to Key common shareholders
(GAAP)
|
|
|
|
|
$
|
452
|
|
|
$
|
474
|
|
|
Average tangible
common equity (non-GAAP)
|
|
|
|
|
|
9,202
|
|
|
|
9,113
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
tangible common equity from continuing operations
(non-GAAP)
|
|
|
|
|
|
9.91
|
%
|
|
|
10.49
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
tangible common equity consolidated
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Key common shareholders (GAAP)
|
|
|
|
|
$
|
460
|
|
|
$
|
450
|
|
|
Average tangible
common equity (non-GAAP)
|
|
|
|
|
|
9,202
|
|
|
|
9,113
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
tangible common equity consolidated (non-GAAP)
|
|
|
|
|
|
10.08
|
%
|
|
|
9.96
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash efficiency
ratio
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest expense
(GAAP)
|
|
|
|
|
$
|
1,380
|
|
|
$
|
1,351
|
|
|
Less:
|
Intangible asset
amortization (GAAP)
|
|
|
|
|
|
18
|
|
|
|
19
|
|
|
|
Adjusted noninterest
expense (non-GAAP)
|
|
|
|
|
$
|
1,362
|
|
|
$
|
1,332
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
(GAAP)
|
|
|
|
|
$
|
1,155
|
|
|
$
|
1,136
|
|
|
Plus:
|
Taxable-equivalent
adjustment
|
|
|
|
|
|
13
|
|
|
|
12
|
|
|
|
Noninterest income
(GAAP)
|
|
|
|
|
|
925
|
|
|
|
890
|
|
|
|
Total
taxable-equivalent revenue (non-GAAP)
|
|
|
|
|
$
|
2,093
|
|
|
$
|
2,038
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash efficiency ratio
(non-GAAP)
|
|
|
|
|
|
65.1
|
%
|
|
|
65.4
|
%
|
(a)
|
For the three months
ended June 30, 2015, March 31, 2015, and June 30, 2014, intangible
assets exclude $55 million, $61 million, and $79 million,
respectively, of period-end purchased credit card
receivables.
|
(b)
|
Net of capital
surplus.
|
(c)
|
6-30-15 amount is
estimated.
|
(d)
|
Includes net
unrealized gains or losses on securities available for sale (except
for net unrealized losses on marketable equity securities), net
gains or losses on cash flow hedges, and amounts resulting from the
application of the applicable accounting guidance for defined
benefit and other postretirement plans.
|
(e)
|
Other assets deducted
from Tier 1 capital and net risk-weighted assets consist of
disallowed intangible assets (excluding goodwill) and deductible
portions of nonfinancial equity investments. There were no
disallowed deferred tax assets at June 30, 2014.
|
(f)
|
For the three months
ended June 30, 2015, March 31, 2015, and June 30, 2014, average
intangible assets exclude $58 million, $64 million, and $82
million, respectively, of average purchased credit card
receivables.
|
(g)
|
Includes the deferred
tax asset subject to future taxable income for realization,
primarily tax credit carryforwards, as well as the deductible
portion of purchased credit card receivables.
|
(h)
|
The anticipated
amount of regulatory capital and risk-weighted assets is based upon
the federal banking agencies' Regulatory Capital Rules (as fully
phased-in on January 1, 2019); Key is subject to the Regulatory
Capital Rules under the "standardized approach."
|
(i)
|
Item is included in
the 10%/15% exceptions bucket calculation and is risk-weighted at
250%.
|
(j)
|
Under the fully
implemented rule, certain deferred tax assets and intangible assets
subject to the transition provision are no longer required to be
risk-weighted because they are deducted directly from
capital.
|
(k)
|
For the six months
ended June 30, 2015, and June 30, 2014, average intangible assets
exclude $61 million, and $85 million, respectively, of average
purchased credit card receivables.
|
GAAP = U.S. generally
accepted accounting principles
|
Consolidated
Balance Sheets
|
(dollars in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6-30-15
|
|
|
3-31-15
|
|
|
6-30-14
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
$
|
58,264
|
|
|
$
|
57,953
|
|
|
$
|
55,600
|
|
Loans held for
sale
|
|
|
835
|
|
|
|
1,649
|
|
|
|
435
|
|
Securities available
for sale
|
|
|
14,244
|
|
|
|
13,120
|
|
|
|
12,224
|
|
Held-to-maturity
securities
|
|
|
5,022
|
|
|
|
5,005
|
|
|
|
5,233
|
|
Trading account
assets
|
|
|
674
|
|
|
|
789
|
|
|
|
890
|
|
Short-term
investments
|
|
|
3,222
|
|
|
|
3,378
|
|
|
|
3,176
|
|
Other
investments
|
|
|
703
|
|
|
|
730
|
|
|
|
899
|
|
|
Total earning
assets
|
|
|
82,964
|
|
|
|
82,624
|
|
|
|
78,457
|
|
Allowance for loan
and lease losses
|
|
|
(796)
|
|
|
|
(794)
|
|
|
|
(814)
|
|
Cash and due from
banks
|
|
|
693
|
|
|
|
506
|
|
|
|
604
|
|
Premises and
equipment
|
|
|
788
|
|
|
|
806
|
|
|
|
844
|
|
Operating lease
assets
|
|
|
296
|
|
|
|
306
|
|
|
|
306
|
|
Goodwill
|
|
|
1,057
|
|
|
|
1,057
|
|
|
|
979
|
|
Other intangible
assets
|
|
|
83
|
|
|
|
92
|
|
|
|
108
|
|
Corporate-owned life
insurance
|
|
|
3,502
|
|
|
|
3,488
|
|
|
|
3,438
|
|
Derivative
assets
|
|
|
536
|
|
|
|
731
|
|
|
|
549
|
|
Accrued income and
other assets
|
|
|
3,314
|
|
|
|
3,144
|
|
|
|
3,090
|
|
Discontinued
assets
|
|
|
2,169
|
|
|
|
2,246
|
|
|
|
4,237
|
|
|
Total
assets
|
|
$
|
94,606
|
|
|
$
|
94,206
|
|
|
$
|
91,798
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits in domestic
offices:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOW and money market
deposit accounts
|
|
$
|
36,024
|
|
|
$
|
35,623
|
|
|
$
|
33,637
|
|
|
Savings
deposits
|
|
|
2,370
|
|
|
|
2,413
|
|
|
|
2,450
|
|
|
Certificates of
deposit ($100,000 or more)
|
|
|
2,032
|
|
|
|
1,982
|
|
|
|
2,743
|
|
|
Other time
deposits
|
|
|
3,105
|
|
|
|
3,182
|
|
|
|
3,505
|
|
|
Total interest-bearing
deposits
|
|
|
43,531
|
|
|
|
43,200
|
|
|
|
42,335
|
|
|
Noninterest-bearing
deposits
|
|
|
26,640
|
|
|
|
27,948
|
|
|
|
24,781
|
|
Deposits in foreign
office — interest-bearing
|
|
|
498
|
|
|
|
474
|
|
|
|
683
|
|
|
Total
deposits
|
|
|
70,669
|
|
|
|
71,622
|
|
|
|
67,799
|
|
Federal funds
purchased and securities
sold under
repurchase agreements
|
|
|
444
|
|
|
|
517
|
|
|
|
1,213
|
|
Bank notes and other
short-term borrowings
|
|
|
528
|
|
|
|
608
|
|
|
|
521
|
|
Derivative
liabilities
|
|
|
560
|
|
|
|
825
|
|
|
|
451
|
|
Accrued expense and
other liabilities
|
|
|
1,537
|
|
|
|
1,308
|
|
|
|
1,400
|
|
Long-term
debt
|
|
|
10,267
|
|
|
|
8,713
|
|
|
|
8,213
|
|
Discontinued
liabilities
|
|
|
—
|
|
|
|
—
|
|
|
|
1,680
|
|
|
Total
liabilities
|
|
|
84,005
|
|
|
|
83,593
|
|
|
|
81,277
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock,
Series A
|
|
|
290
|
|
|
|
290
|
|
|
|
291
|
|
Common
shares
|
|
|
1,017
|
|
|
|
1,017
|
|
|
|
1,017
|
|
Capital
surplus
|
|
|
3,898
|
|
|
|
3,910
|
|
|
|
3,987
|
|
Retained
earnings
|
|
|
8,614
|
|
|
|
8,445
|
|
|
|
7,950
|
|
Treasury stock, at
cost
|
|
|
(2,884)
|
|
|
|
(2,780)
|
|
|
|
(2,452)
|
|
Accumulated other
comprehensive income (loss)
|
|
|
(345)
|
|
|
|
(279)
|
|
|
|
(289)
|
|
|
Key shareholders'
equity
|
|
|
10,590
|
|
|
|
10,603
|
|
|
|
10,504
|
|
Noncontrolling
interests
|
|
|
11
|
|
|
|
10
|
|
|
|
17
|
|
|
Total
equity
|
|
|
10,601
|
|
|
|
10,613
|
|
|
|
10,521
|
Total liabilities
and equity
|
|
$
|
94,606
|
|
|
$
|
94,206
|
|
|
$
|
91,798
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares
outstanding (000)
|
|
|
843,608
|
|
|
|
850,920
|
|
|
|
876,823
|
Consolidated
Statements of Income
|
(dollars in millions,
except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
Six months
ended
|
|
|
|
6-30-15
|
|
3-31-15
|
|
6-30-14
|
|
|
6-30-15
|
|
|
6-30-14
|
Interest
income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
$
|
532
|
|
$
|
523
|
|
$
|
526
|
|
|
$
|
1,055
|
|
|
$
|
1,045
|
|
Loans held for
sale
|
|
12
|
|
|
7
|
|
|
5
|
|
|
|
19
|
|
|
|
9
|
|
Securities available
for sale
|
|
72
|
|
|
70
|
|
|
71
|
|
|
|
142
|
|
|
|
143
|
|
Held-to-maturity
securities
|
|
24
|
|
|
24
|
|
|
23
|
|
|
|
48
|
|
|
|
45
|
|
Trading account
assets
|
|
5
|
|
|
5
|
|
|
7
|
|
|
|
10
|
|
|
|
13
|
|
Short-term
investments
|
|
2
|
|
|
2
|
|
|
1
|
|
|
|
4
|
|
|
|
2
|
|
Other
investments
|
|
5
|
|
|
5
|
|
|
6
|
|
|
|
10
|
|
|
|
12
|
|
|
Total interest
income
|
|
652
|
|
|
636
|
|
|
639
|
|
|
|
1,288
|
|
|
|
1,269
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
26
|
|
|
26
|
|
|
31
|
|
|
|
52
|
|
|
|
63
|
|
Federal funds
purchased and securities
sold under
repurchase agreements
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
—
|
|
|
|
1
|
|
Bank notes and other
short-term borrowings
|
|
2
|
|
|
2
|
|
|
2
|
|
|
|
4
|
|
|
|
4
|
|
Long-term
debt
|
|
40
|
|
|
37
|
|
|
33
|
|
|
|
77
|
|
|
|
65
|
|
|
Total interest
expense
|
|
68
|
|
|
65
|
|
|
66
|
|
|
|
133
|
|
|
|
133
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
584
|
|
|
571
|
|
|
573
|
|
|
|
1,155
|
|
|
|
1,136
|
Provision for credit
losses
|
|
41
|
|
|
35
|
|
|
12
|
|
|
|
76
|
|
|
|
16
|
Net interest income
after provision for credit losses
|
|
543
|
|
|
536
|
|
|
561
|
|
|
|
1,079
|
|
|
|
1,120
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trust and investment
services income
|
|
111
|
|
|
109
|
|
|
94
|
|
|
|
220
|
|
|
|
192
|
|
Investment banking
and debt placement fees
|
|
141
|
|
|
68
|
|
|
99
|
|
|
|
209
|
|
|
|
183
|
|
Service charges on
deposit accounts
|
|
63
|
|
|
61
|
|
|
66
|
|
|
|
124
|
|
|
|
129
|
|
Operating lease
income and other leasing gains
|
|
24
|
|
|
19
|
|
|
35
|
|
|
|
43
|
|
|
|
64
|
|
Corporate services
income
|
|
43
|
|
|
43
|
|
|
41
|
|
|
|
86
|
|
|
|
83
|
|
Cards and payments
income
|
|
47
|
|
|
42
|
|
|
43
|
|
|
|
89
|
|
|
|
81
|
|
Corporate-owned life
insurance income
|
|
30
|
|
|
31
|
|
|
28
|
|
|
|
61
|
|
|
|
54
|
|
Consumer mortgage
income
|
|
4
|
|
|
3
|
|
|
2
|
|
|
|
7
|
|
|
|
4
|
|
Mortgage servicing
fees
|
|
9
|
|
|
13
|
|
|
11
|
|
|
|
22
|
|
|
|
26
|
|
Net gains (losses)
from principal investing
|
|
11
|
|
|
29
|
|
|
27
|
|
|
|
40
|
|
|
|
51
|
|
Other income
(a)
|
|
5
|
|
|
19
|
|
|
9
|
|
|
|
24
|
|
|
|
23
|
|
|
Total noninterest
income
|
|
488
|
|
|
437
|
|
|
455
|
|
|
|
925
|
|
|
|
890
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Personnel
|
|
408
|
|
|
389
|
|
|
389
|
|
|
|
797
|
|
|
|
777
|
|
Net
occupancy
|
|
66
|
|
|
65
|
|
|
68
|
|
|
|
131
|
|
|
|
132
|
|
Computer
processing
|
|
42
|
|
|
38
|
|
|
41
|
|
|
|
80
|
|
|
|
79
|
|
Business services and
professional fees
|
|
42
|
|
|
33
|
|
|
41
|
|
|
|
75
|
|
|
|
82
|
|
Equipment
|
|
22
|
|
|
22
|
|
|
24
|
|
|
|
44
|
|
|
|
48
|
|
Operating lease
expense
|
|
12
|
|
|
11
|
|
|
10
|
|
|
|
23
|
|
|
|
20
|
|
Marketing
|
|
15
|
|
|
8
|
|
|
13
|
|
|
|
23
|
|
|
|
18
|
|
FDIC
assessment
|
|
8
|
|
|
8
|
|
|
6
|
|
|
|
16
|
|
|
|
12
|
|
Intangible asset
amortization
|
|
9
|
|
|
9
|
|
|
9
|
|
|
|
18
|
|
|
|
19
|
|
OREO expense,
net
|
|
1
|
|
|
2
|
|
|
1
|
|
|
|
3
|
|
|
|
2
|
|
Other
expense
|
|
86
|
|
|
84
|
|
|
85
|
|
|
|
170
|
|
|
|
162
|
|
|
Total noninterest
expense
|
|
711
|
|
|
669
|
|
|
687
|
|
|
|
1,380
|
|
|
|
1,351
|
Income (loss) from
continuing operations before income taxes
|
|
320
|
|
|
304
|
|
|
329
|
|
|
|
624
|
|
|
|
659
|
|
Income
taxes
|
|
84
|
|
|
74
|
|
|
76
|
|
|
|
158
|
|
|
|
168
|
Income (loss) from
continuing operations
|
|
236
|
|
|
230
|
|
|
253
|
|
|
|
466
|
|
|
|
491
|
|
Income (loss) from
discontinued operations, net of taxes
|
|
3
|
|
|
5
|
|
|
(28)
|
|
|
|
8
|
|
|
|
(24)
|
Net income
(loss)
|
|
239
|
|
|
235
|
|
|
225
|
|
|
|
474
|
|
|
|
467
|
|
Less: Net
income (loss) attributable to noncontrolling interests
|
|
1
|
|
|
2
|
|
|
6
|
|
|
|
3
|
|
|
|
6
|
Net income (loss)
attributable to Key
|
$
|
238
|
|
$
|
233
|
|
$
|
219
|
|
|
$
|
471
|
|
|
$
|
461
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations attributable to Key common
shareholders
|
$
|
230
|
|
$
|
222
|
|
$
|
242
|
|
|
$
|
452
|
|
|
$
|
474
|
Net income (loss)
attributable to Key common shareholders
|
|
233
|
|
|
227
|
|
|
214
|
|
|
|
460
|
|
|
|
450
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per common
share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations attributable to Key common
shareholders
|
$
|
.27
|
|
$
|
.26
|
|
$
|
.28
|
|
|
$
|
.53
|
|
|
$
|
.54
|
Income (loss) from
discontinued operations, net of taxes
|
|
—
|
|
|
.01
|
|
|
(.03)
|
|
|
|
.01
|
|
|
|
(.03)
|
Net income (loss)
attributable to Key common shareholders
(b)
|
|
.28
|
|
|
.27
|
|
|
.24
|
|
|
|
.54
|
|
|
|
.51
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per common share —
assuming dilution
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations attributable to Key common
shareholders
|
$
|
.27
|
|
$
|
.26
|
|
$
|
.27
|
|
|
$
|
.52
|
|
|
$
|
.53
|
Income (loss) from
discontinued operations, net of taxes
|
|
—
|
|
|
.01
|
|
|
(.03)
|
|
|
|
.01
|
|
|
|
(.03)
|
Net income (loss)
attributable to Key common shareholders
(b)
|
|
.27
|
|
|
.26
|
|
|
.24
|
|
|
|
.53
|
|
|
|
.51
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends
declared per common share
|
$
|
.075
|
|
$
|
.065
|
|
$
|
.065
|
|
|
$
|
.14
|
|
|
$
|
.12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
common shares outstanding (000)
|
|
839,454
|
|
|
848,580
|
|
|
875,298
|
|
|
|
843,992
|
|
|
|
879,986
|
|
Effect of convertible
preferred stock
|
|
—
|
|
|
—
|
|
|
20,602
|
|
|
|
—
|
|
|
|
—
|
|
Effect of common
share options and other stock awards
|
|
6,858
|
|
|
8,542
|
|
|
6,237
|
|
|
|
7,695
|
|
|
|
6,698
|
Weighted-average
common shares and potential common shares outstanding (000)
(c)
|
|
846,312
|
|
|
857,122
|
|
|
902,137
|
|
|
|
851,687
|
|
|
|
886,684
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
For each of the three
months ended June 30, 2015, March 31, 2015, and June 30, 2014, net
securities gains (losses) totaled less than $1 million. For the
three months ended June 30, 2015, and June 30, 2014, Key did not
have any impairment losses related to securities. For the three
months ended March 31, 2015, impairment losses related to
securities totaled less than $1 million.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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.
|
Consolidated
Average Balance Sheets, and Net Interest Income and Yields/Rates
From Continuing Operations
|
(dollars in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Quarter
2015
|
|
|
First Quarter
2015
|
|
|
Second Quarter
2014
|
|
|
|
|
|
Average
|
|
|
|
|
|
|
|
|
Average
|
|
|
|
|
|
|
|
|
Average
|
|
|
|
|
|
|
|
|
|
|
|
Balance
|
|
Interest
|
(a)
|
Yield/Rate
|
(a)
|
|
Balance
|
|
Interest
|
(a)
|
Yield/Rate
|
(a)
|
|
Balance
|
|
Interest
|
(a)
|
Yield/Rate
|
(a)
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans: (b),
(c)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial, financial
and agricultural (d)
|
|
$
|
29,017
|
|
$
|
233
|
|
|
3.23
|
%
|
|
$
|
28,321
|
|
$
|
223
|
|
|
3.18
|
%
|
|
$
|
26,444
|
|
$
|
219
|
|
|
3.31
|
%
|
|
Real estate —
commercial mortgage
|
|
|
7,981
|
|
|
74
|
|
|
3.70
|
|
|
|
8,095
|
|
|
73
|
|
|
3.67
|
|
|
|
7,880
|
|
|
74
|
|
|
3.79
|
|
|
Real estate —
construction
|
|
|
1,199
|
|
|
11
|
|
|
3.60
|
|
|
|
1,139
|
|
|
11
|
|
|
3.90
|
|
|
|
1,049
|
|
|
11
|
|
|
4.03
|
|
|
Commercial lease
financing
|
|
|
3,981
|
|
|
36
|
|
|
3.58
|
|
|
|
4,070
|
|
|
36
|
|
|
3.57
|
|
|
|
4,257
|
|
|
38
|
|
|
3.54
|
|
|
|
Total commercial loans
|
|
|
42,178
|
|
|
354
|
|
|
3.36
|
|
|
|
41,625
|
|
|
343
|
|
|
3.33
|
|
|
|
39,630
|
|
|
342
|
|
|
3.45
|
|
|
Real estate —
residential mortgage
|
|
|
2,237
|
|
|
23
|
|
|
4.22
|
|
|
|
2,229
|
|
|
24
|
|
|
4.26
|
|
|
|
2,189
|
|
|
24
|
|
|
4.41
|
|
|
Home
equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Key Community
Bank
|
|
|
10,266
|
|
|
99
|
|
|
3.89
|
|
|
|
10,316
|
|
|
99
|
|
|
3.89
|
|
|
|
10,321
|
|
|
100
|
|
|
3.92
|
|
|
|
Other
|
|
|
244
|
|
|
5
|
|
|
7.86
|
|
|
|
260
|
|
|
5
|
|
|
7.82
|
|
|
|
306
|
|
|
6
|
|
|
7.80
|
|
|
|
Total home equity loans
|
|
|
10,510
|
|
|
104
|
|
|
3.98
|
|
|
|
10,576
|
|
|
104
|
|
|
3.99
|
|
|
|
10,627
|
|
|
106
|
|
|
4.03
|
|
|
Consumer other — Key
Community Bank
|
|
|
1,571
|
|
|
26
|
|
|
6.52
|
|
|
|
1,546
|
|
|
25
|
|
|
6.66
|
|
|
|
1,479
|
|
|
26
|
|
|
6.97
|
|
|
Credit
cards
|
|
|
737
|
|
|
19
|
|
|
10.57
|
|
|
|
732
|
|
|
20
|
|
|
11.01
|
|
|
|
702
|
|
|
18
|
|
|
10.39
|
|
|
Consumer
other:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marine
|
|
|
702
|
|
|
11
|
|
|
6.30
|
|
|
|
755
|
|
|
12
|
|
|
6.35
|
|
|
|
926
|
|
|
15
|
|
|
6.18
|
|
|
|
Other
|
|
|
43
|
|
|
1
|
|
|
7.77
|
|
|
|
49
|
|
|
1
|
|
|
7.32
|
|
|
|
58
|
|
|
1
|
|
|
8.09
|
|
|
|
Total consumer other
|
|
|
745
|
|
|
12
|
|
|
6.38
|
|
|
|
804
|
|
|
13
|
|
|
6.41
|
|
|
|
984
|
|
|
16
|
|
|
6.29
|
|
|
|
Total consumer loans
|
|
|
15,800
|
|
|
184
|
|
|
4.69
|
|
|
|
15,887
|
|
|
186
|
|
|
4.74
|
|
|
|
15,981
|
|
|
190
|
|
|
4.77
|
|
|
|
Total loans
|
|
|
57,978
|
|
|
538
|
|
|
3.72
|
|
|
|
57,512
|
|
|
529
|
|
|
3.72
|
|
|
|
55,611
|
|
|
532
|
|
|
3.83
|
|
|
Loans held for
sale
|
|
|
1,263
|
|
|
12
|
|
|
3.91
|
|
|
|
795
|
|
|
7
|
|
|
3.33
|
|
|
|
458
|
|
|
5
|
|
|
4.14
|
|
|
Securities available
for sale (b), (e)
|
|
|
13,360
|
|
|
73
|
|
|
2.17
|
|
|
|
13,087
|
|
|
70
|
|
|
2.17
|
|
|
|
12,408
|
|
|
71
|
|
|
2.30
|
|
|
Held-to-maturity
securities (b)
|
|
|
4,965
|
|
|
24
|
|
|
1.91
|
|
|
|
4,947
|
|
|
24
|
|
|
1.93
|
|
|
|
4,973
|
|
|
23
|
|
|
1.87
|
|
|
Trading account
assets
|
|
|
805
|
|
|
5
|
|
|
2.55
|
|
|
|
717
|
|
|
5
|
|
|
2.80
|
|
|
|
985
|
|
|
7
|
|
|
2.80
|
|
|
Short-term
investments
|
|
|
3,228
|
|
|
2
|
|
|
.26
|
|
|
|
2,399
|
|
|
2
|
|
|
.27
|
|
|
|
2,475
|
|
|
1
|
|
|
.17
|
|
|
Other investments
(e)
|
|
|
713
|
|
|
5
|
|
|
2.48
|
|
|
|
742
|
|
|
5
|
|
|
2.79
|
|
|
|
888
|
|
|
6
|
|
|
2.64
|
|
|
|
Total earning assets
|
|
|
82,312
|
|
|
659
|
|
|
3.21
|
|
|
|
80,199
|
|
|
642
|
|
|
3.23
|
|
|
|
77,798
|
|
|
645
|
|
|
3.31
|
|
|
Allowance for loan
and lease losses
|
|
|
(793)
|
|
|
|
|
|
|
|
|
|
(793)
|
|
|
|
|
|
|
|
|
|
(824)
|
|
|
|
|
|
|
|
|
Accrued income and
other assets
|
|
|
10,140
|
|
|
|
|
|
|
|
|
|
10,223
|
|
|
|
|
|
|
|
|
|
9,767
|
|
|
|
|
|
|
|
|
Discontinued
assets
|
|
|
2,194
|
|
|
|
|
|
|
|
|
|
2,271
|
|
|
|
|
|
|
|
|
|
4,341
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
93,853
|
|
|
|
|
|
|
|
|
$
|
91,900
|
|
|
|
|
|
|
|
|
$
|
91,082
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOW and money market
deposit accounts
|
|
$
|
36,122
|
|
|
14
|
|
|
.16
|
|
|
$
|
34,952
|
|
|
13
|
|
|
.15
|
|
|
$
|
34,283
|
|
|
11
|
|
|
.14
|
|
|
Savings
deposits
|
|
|
2,393
|
|
|
—
|
|
|
.02
|
|
|
|
2,385
|
|
|
—
|
|
|
.02
|
|
|
|
2,493
|
|
|
—
|
|
|
.03
|
|
|
Certificates of
deposit ($100,000 or more) (f)
|
|
|
2,010
|
|
|
6
|
|
|
1.25
|
|
|
|
2,017
|
|
|
7
|
|
|
1.30
|
|
|
|
2,808
|
|
|
10
|
|
|
1.39
|
|
|
Other time
deposits
|
|
|
3,136
|
|
|
5
|
|
|
.70
|
|
|
|
3,217
|
|
|
6
|
|
|
.72
|
|
|
|
3,587
|
|
|
9
|
|
|
.98
|
|
|
Deposits in foreign
office
|
|
|
583
|
|
|
1
|
|
|
.23
|
|
|
|
529
|
|
|
—
|
|
|
.22
|
|
|
|
662
|
|
|
1
|
|
|
.23
|
|
|
|
Total interest-bearing deposits
|
|
|
44,244
|
|
|
26
|
|
|
.24
|
|
|
|
43,100
|
|
|
26
|
|
|
.24
|
|
|
|
43,833
|
|
|
31
|
|
|
.28
|
|
|
Federal funds
purchased and securities
sold under
repurchase agreements
|
|
|
557
|
|
|
—
|
|
|
.02
|
|
|
|
720
|
|
|
—
|
|
|
.03
|
|
|
|
1,470
|
|
|
—
|
|
|
.19
|
|
|
Bank notes and other
short-term borrowings
|
|
|
657
|
|
|
2
|
|
|
1.39
|
|
|
|
506
|
|
|
2
|
|
|
1.56
|
|
|
|
545
|
|
|
2
|
|
|
1.54
|
|
|
Long-term debt
(f), (g)
|
|
|
6,968
|
|
|
40
|
|
|
2.30
|
|
|
|
6,126
|
|
|
37
|
|
|
2.52
|
|
|
|
5,476
|
|
|
33
|
|
|
2.51
|
|
|
|
Total interest-bearing liabilities
|
|
|
52,426
|
|
|
68
|
|
|
.52
|
|
|
|
50,452
|
|
|
65
|
|
|
.52
|
|
|
|
51,324
|
|
|
66
|
|
|
.52
|
|
|
Noninterest-bearing
deposits
|
|
|
26,594
|
|
|
|
|
|
|
|
|
|
26,269
|
|
|
|
|
|
|
|
|
|
23,290
|
|
|
|
|
|
|
|
|
Accrued expense and
other liabilities
|
|
|
2,039
|
|
|
|
|
|
|
|
|
|
2,327
|
|
|
|
|
|
|
|
|
|
1,654
|
|
|
|
|
|
|
|
|
Discontinued
liabilities (g)
|
|
|
2,194
|
|
|
|
|
|
|
|
|
|
2,271
|
|
|
|
|
|
|
|
|
|
4,341
|
|
|
|
|
|
|
|
|
|
Total liabilities
|
|
|
83,253
|
|
|
|
|
|
|
|
|
|
81,319
|
|
|
|
|
|
|
|
|
|
80,609
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Key shareholders'
equity
|
|
|
10,590
|
|
|
|
|
|
|
|
|
|
10,570
|
|
|
|
|
|
|
|
|
|
10,459
|
|
|
|
|
|
|
|
|
Noncontrolling
interests
|
|
|
10
|
|
|
|
|
|
|
|
|
|
11
|
|
|
|
|
|
|
|
|
|
14
|
|
|
|
|
|
|
|
|
|
Total equity
|
|
|
10,600
|
|
|
|
|
|
|
|
|
|
10,581
|
|
|
|
|
|
|
|
|
|
10,473
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and equity
|
|
$
|
93,853
|
|
|
|
|
|
|
|
|
$
|
91,900
|
|
|
|
|
|
|
|
|
$
|
91,082
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate spread
(TE)
|
|
|
|
|
|
|
|
|
2.69
|
%
|
|
|
|
|
|
|
|
|
2.71
|
%
|
|
|
|
|
|
|
|
|
2.79
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
(TE) and net interest margin (TE)
|
|
|
|
|
|
591
|
|
|
2.88
|
%
|
|
|
|
|
|
577
|
|
|
2.91
|
%
|
|
|
|
|
|
579
|
|
|
2.98
|
%
|
TE adjustment
(b)
|
|
|
|
|
|
7
|
|
|
|
|
|
|
|
|
|
6
|
|
|
|
|
|
|
|
|
|
6
|
|
|
|
|
|
Net interest income,
GAAP basis
|
|
|
|
|
$
|
584
|
|
|
|
|
|
|
|
|
$
|
571
|
|
|
|
|
|
|
|
|
$
|
573
|
|
|
|
|
(a)
|
Results are from
continuing operations. Interest excludes the interest
associated with the liabilities referred to in (g) below,
calculated using a matched funds transfer pricing
methodology.
|
(b)
|
Interest income on
tax-exempt securities and loans has been adjusted to a
taxable-equivalent basis using the statutory federal income tax
rate of 35%.
|
(c)
|
For purposes of these
computations, nonaccrual loans are included in average loan
balances.
|
(d)
|
Commercial, financial
and agricultural average balances include $88 million, $87 million,
and $95 million of assets from commercial credit cards for the
three months ended June 30, 2015, March 31, 2015, and June 30,
2014, respectively.
|
(e)
|
Yield is calculated
on the basis of amortized cost.
|
(f)
|
Rate calculation
excludes basis adjustments related to fair value
hedges.
|
(g)
|
A portion of
long-term debt and the related interest expense is allocated to
discontinued liabilities as a result of applying our matched funds
transfer pricing methodology to discontinued operations.
|
TE = Taxable
Equivalent, GAAP = U.S. generally accepted accounting
principles
|
Consolidated
Average Balance Sheets, and Net Interest Income and Yields/Rates
From Continuing Operations
|
|
(dollars in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended
June 30, 2015
|
|
|
Six months ended
June 30, 2014
|
|
|
|
|
Average
|
|
|
|
|
|
|
Average
|
|
|
|
|
|
|
|
|
Balance
|
|
Interest
|
(a)
|
Yield/Rate
|
(a)
|
|
Balance
|
|
Interest
|
(a)
|
Yield/
Rate
|
(a)
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans: (b),
(c)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial, financial
and agricultural (d)
|
$
|
28,671
|
|
$
|
456
|
|
|
3.21
|
%
|
|
$
|
25,920
|
|
$
|
425
|
|
|
3.30
|
%
|
|
Real estate —
commercial mortgage
|
|
8,038
|
|
|
147
|
|
|
3.68
|
|
|
|
7,844
|
|
|
148
|
|
|
3.82
|
|
|
Real estate —
construction
|
|
1,169
|
|
|
22
|
|
|
3.75
|
|
|
|
1,069
|
|
|
23
|
|
|
4.29
|
|
|
Commercial lease
financing
|
|
4,025
|
|
|
72
|
|
|
3.57
|
|
|
|
4,348
|
|
|
80
|
|
|
3.67
|
|
|
|
Total commercial loans
|
|
41,903
|
|
|
697
|
|
|
3.35
|
|
|
|
39,181
|
|
|
676
|
|
|
3.47
|
|
|
Real estate —
residential mortgage
|
|
2,233
|
|
|
47
|
|
|
4.24
|
|
|
|
2,188
|
|
|
48
|
|
|
4.42
|
|
|
Home
equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Key Community
Bank
|
|
10,291
|
|
|
198
|
|
|
3.89
|
|
|
|
10,313
|
|
|
200
|
|
|
3.92
|
|
|
|
Other
|
|
252
|
|
|
10
|
|
|
7.84
|
|
|
|
315
|
|
|
12
|
|
|
7.79
|
|
|
Total home equity loans
|
|
10,543
|
|
|
208
|
|
|
3.99
|
|
|
|
10,628
|
|
|
212
|
|
|
4.03
|
|
|
Consumer other — Key
Community Bank
|
|
1,558
|
|
|
51
|
|
|
6.59
|
|
|
|
1,459
|
|
|
51
|
|
|
7.01
|
|
|
Credit
cards
|
|
735
|
|
|
39
|
|
|
10.79
|
|
|
|
702
|
|
|
38
|
|
|
10.83
|
|
|
Consumer
other:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marine
|
|
728
|
|
|
23
|
|
|
6.32
|
|
|
|
961
|
|
|
30
|
|
|
6.18
|
|
|
|
Other
|
|
46
|
|
|
2
|
|
|
7.54
|
|
|
|
62
|
|
|
2
|
|
|
7.80
|
|
|
|
Total
consumer other
|
|
774
|
|
|
25
|
|
|
6.40
|
|
|
|
1,023
|
|
|
32
|
|
|
6.28
|
|
|
Total consumer loans
|
|
15,843
|
|
|
370
|
|
|
4.71
|
|
|
|
16,000
|
|
|
381
|
|
|
4.80
|
|
|
Total loans
|
|
57,746
|
|
|
1,067
|
|
|
3.72
|
|
|
|
55,181
|
|
|
1,057
|
|
|
3.86
|
|
|
Loans held for
sale
|
|
1,030
|
|
|
19
|
|
|
3.68
|
|
|
|
452
|
|
|
9
|
|
|
3.75
|
|
|
Securities available
for sale (b), (e)
|
|
13,225
|
|
|
143
|
|
|
2.17
|
|
|
|
12,378
|
|
|
143
|
|
|
2.31
|
|
|
Held-to-maturity
securities (b)
|
|
4,956
|
|
|
48
|
|
|
1.92
|
|
|
|
4,870
|
|
|
45
|
|
|
1.86
|
|
|
Trading account
assets
|
|
762
|
|
|
10
|
|
|
2.67
|
|
|
|
983
|
|
|
13
|
|
|
2.66
|
|
|
Short-term
investments
|
|
2,816
|
|
|
4
|
|
|
.26
|
|
|
|
2,480
|
|
|
2
|
|
|
.17
|
|
|
Other investments
(e)
|
|
727
|
|
|
10
|
|
|
2.64
|
|
|
|
912
|
|
|
12
|
|
|
2.61
|
|
|
Total earning assets
|
|
81,262
|
|
|
1,301
|
|
|
3.22
|
|
|
|
77,256
|
|
|
1,281
|
|
|
3.32
|
|
|
Allowance for loan
and lease losses
|
|
(793)
|
|
|
|
|
|
|
|
|
|
(833)
|
|
|
|
|
|
|
|
|
Accrued income and
other assets
|
|
10,181
|
|
|
|
|
|
|
|
|
|
9,779
|
|
|
|
|
|
|
|
|
Discontinued
assets
|
|
2,232
|
|
|
|
|
|
|
|
|
|
4,417
|
|
|
|
|
|
|
|
|
Total assets
|
$
|
92,882
|
|
|
|
|
|
|
|
|
$
|
90,619
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOW and money market
deposit accounts
|
$
|
35,540
|
|
|
27
|
|
|
.15
|
|
|
$
|
34,174
|
|
|
23
|
|
|
.14
|
|
|
Savings
deposits
|
|
2,389
|
|
|
—
|
|
|
.02
|
|
|
|
2,484
|
|
|
—
|
|
|
.03
|
|
|
Certificates of
deposit ($100,000 or more) (f)
|
|
2,014
|
|
|
13
|
|
|
1.28
|
|
|
|
2,783
|
|
|
20
|
|
|
1.45
|
|
|
Other time
deposits
|
|
3,176
|
|
|
11
|
|
|
.71
|
|
|
|
3,633
|
|
|
19
|
|
|
1.02
|
|
|
Deposits in foreign
office
|
|
556
|
|
|
1
|
|
|
.23
|
|
|
|
661
|
|
|
1
|
|
|
.22
|
|
|
|
Total interest-bearing deposits
|
|
43,675
|
|
|
52
|
|
|
.24
|
|
|
|
43,735
|
|
|
63
|
|
|
.29
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal funds
purchased and securities
sold under repurchase
agreements
|
|
638
|
|
|
—
|
|
|
.03
|
|
|
|
1,470
|
|
|
1
|
|
|
.18
|
|
|
Bank notes and other
short-term borrowings
|
|
582
|
|
|
4
|
|
|
1.46
|
|
|
|
565
|
|
|
4
|
|
|
1.59
|
|
|
Long-term debt
(f), (g)
|
|
6,550
|
|
|
77
|
|
|
2.40
|
|
|
|
5,323
|
|
|
65
|
|
|
2.54
|
|
|
|
Total interest-bearing liabilities
|
|
51,445
|
|
|
133
|
|
|
.52
|
|
|
|
51,093
|
|
|
133
|
|
|
.53
|
|
|
Noninterest-bearing
deposits
|
|
26,432
|
|
|
|
|
|
|
|
|
|
22,976
|
|
|
|
|
|
|
|
|
Accrued expense and
other liabilities
|
|
2,182
|
|
|
|
|
|
|
|
|
|
1,702
|
|
|
|
|
|
|
|
|
Discontinued
liabilities (g)
|
|
2,232
|
|
|
|
|
|
|
|
|
|
4,417
|
|
|
|
|
|
|
|
|
Total liabilities
|
|
82,291
|
|
|
|
|
|
|
|
|
|
80,188
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Key shareholders'
equity
|
|
10,580
|
|
|
|
|
|
|
|
|
|
10,415
|
|
|
|
|
|
|
|
|
Noncontrolling
interests
|
|
11
|
|
|
|
|
|
|
|
|
|
16
|
|
|
|
|
|
|
|
|
Total equity
|
|
10,591
|
|
|
|
|
|
|
|
|
|
10,431
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and equity
|
$
|
92,882
|
|
|
|
|
|
|
|
|
$
|
90,619
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate spread
(TE)
|
|
|
|
|
|
|
|
2.70
|
%
|
|
|
|
|
|
|
|
|
2.79
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
(TE) and net interest margin (TE)
|
|
|
|
|
1,168
|
|
|
2.89
|
%
|
|
|
|
|
|
1,148
|
|
|
2.99
|
%
|
TE adjustment
(b)
|
|
|
|
|
13
|
|
|
|
|
|
|
|
|
|
12
|
|
|
|
|
|
Net interest income,
GAAP basis
|
|
|
|
$
|
1,155
|
|
|
|
|
|
|
|
|
$
|
1,136
|
|
|
|
|
(a)
|
Results are from
continuing operations. Interest excludes the interest
associated with the liabilities referred to in (g) below,
calculated using a matched funds transfer pricing
methodology.
|
(b)
|
Interest income on
tax-exempt securities and loans has been adjusted to a
taxable-equivalent basis using the statutory federal income tax
rate of 35%.
|
(c)
|
For purposes of these
computations, nonaccrual loans are included in average loan
balances.
|
(d)
|
Commercial, financial
and agricultural average balances include $88 million and $95
million of assets from commercial credit cards for the six months
ended June 30, 2015, and June 30, 2014, respectively.
|
(e)
|
Yield is calculated
on the basis of amortized cost.
|
(f)
|
Rate calculation
excludes basis adjustments related to fair value
hedges.
|
(g)
|
A portion of
long-term debt and the related interest expense is allocated to
discontinued liabilities as a result of applying our matched funds
transfer pricing methodology to discontinued operations.
|
TE = Taxable
Equivalent, GAAP = U.S. generally accepted accounting
principles
|
Noninterest
Expense
|
(dollars in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Six months
ended
|
|
6-30-15
|
|
3-31-15
|
|
6-30-14
|
|
6-30-15
|
|
6-30-14
|
Personnel
(a)
|
$
|
408
|
|
$
|
389
|
|
$
|
389
|
|
$
|
797
|
|
$
|
777
|
Net
occupancy
|
|
66
|
|
|
65
|
|
|
68
|
|
|
131
|
|
|
132
|
Computer
processing
|
|
42
|
|
|
38
|
|
|
41
|
|
|
80
|
|
|
79
|
Business services and
professional fees
|
|
42
|
|
|
33
|
|
|
41
|
|
|
75
|
|
|
82
|
Equipment
|
|
22
|
|
|
22
|
|
|
24
|
|
|
44
|
|
|
48
|
Operating lease
expense
|
|
12
|
|
|
11
|
|
|
10
|
|
|
23
|
|
|
20
|
Marketing
|
|
15
|
|
|
8
|
|
|
13
|
|
|
23
|
|
|
18
|
FDIC
assessment
|
|
8
|
|
|
8
|
|
|
6
|
|
|
16
|
|
|
12
|
Intangible asset
amortization
|
|
9
|
|
|
9
|
|
|
9
|
|
|
18
|
|
|
19
|
OREO expense,
net
|
|
1
|
|
|
2
|
|
|
1
|
|
|
3
|
|
|
2
|
Other
expense
|
|
86
|
|
|
84
|
|
|
85
|
|
|
170
|
|
|
162
|
Total noninterest
expense
|
$
|
711
|
|
$
|
669
|
|
$
|
687
|
|
$
|
1,380
|
|
$
|
1,351
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average full-time
equivalent employees (b)
|
|
13,455
|
|
|
13,591
|
|
|
13,867
|
|
|
13,512
|
|
|
13,961
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Additional
detail provided in table below.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(b) The number
of average full-time equivalent employees has not been adjusted for
discontinued operations.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Personnel
Expense
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Six months
ended
|
|
6-30-15
|
|
3-31-15
|
|
6-30-14
|
|
6-30-15
|
|
6-30-14
|
Salaries
|
$
|
229
|
|
$
|
218
|
|
$
|
224
|
|
$
|
447
|
|
$
|
444
|
Technology contract
labor, net
|
|
10
|
|
|
10
|
|
|
14
|
|
|
20
|
|
|
31
|
Incentive and
stock-based compensation
|
|
109
|
|
|
83
|
|
|
91
|
|
|
192
|
|
|
174
|
Employee
benefits
|
|
55
|
|
|
72
|
|
|
50
|
|
|
127
|
|
|
113
|
Severance
|
|
5
|
|
|
6
|
|
|
10
|
|
|
11
|
|
|
15
|
Total personnel
expense
|
$
|
408
|
|
$
|
389
|
|
$
|
389
|
|
$
|
797
|
|
$
|
777
|
Loan
Composition
|
|
(dollars in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percent change
6-30-15 vs.
|
|
|
|
|
|
6-30-15
|
|
3-31-15
|
|
6-30-14
|
|
3-31-15
|
|
6-30-14
|
|
Commercial, financial
and agricultural (a)
|
$
|
29,285
|
|
$
|
28,783
|
|
$
|
26,327
|
|
|
1.7
|
%
|
|
11.2
|
%
|
Commercial real
estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
mortgage
|
|
7,874
|
|
|
8,162
|
|
|
7,946
|
|
|
(3.5)
|
|
|
(.9)
|
|
|
Construction
|
|
1,254
|
|
|
1,142
|
|
|
1,047
|
|
|
9.8
|
|
|
19.8
|
|
|
Total commercial real estate
loans
|
|
9,128
|
|
|
9,304
|
|
|
8,993
|
|
|
(1.9)
|
|
|
1.5
|
|
Commercial lease
financing (b)
|
|
4,010
|
|
|
4,064
|
|
|
4,241
|
|
|
(1.3)
|
|
|
(5.4)
|
|
|
Total commercial
loans
|
|
42,423
|
|
|
42,151
|
|
|
39,561
|
|
|
.6
|
|
|
7.2
|
|
Residential — prime
loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate —
residential mortgage
|
|
2,252
|
|
|
2,231
|
|
|
2,189
|
|
|
.9
|
|
|
2.9
|
|
|
Home
equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Key Community
Bank
|
|
10,296
|
|
|
10,270
|
|
|
10,379
|
|
|
.3
|
|
|
(.8)
|
|
|
|
Other
|
|
236
|
|
|
253
|
|
|
300
|
|
|
(6.7)
|
|
|
(21.3)
|
|
|
Total home equity
loans
|
|
10,532
|
|
|
10,523
|
|
|
10,679
|
|
|
.1
|
|
|
(1.4)
|
|
Total residential —
prime loans
|
|
12,784
|
|
|
12,754
|
|
|
12,868
|
|
|
.2
|
|
|
(.7)
|
|
Consumer other — Key
Community Bank
|
|
1,595
|
|
|
1,547
|
|
|
1,514
|
|
|
3.1
|
|
|
5.4
|
|
Credit
cards
|
|
753
|
|
|
727
|
|
|
718
|
|
|
3.6
|
|
|
4.9
|
|
Consumer
other:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marine
|
|
673
|
|
|
730
|
|
|
888
|
|
|
(7.8)
|
|
|
(24.2)
|
|
|
Other
|
|
36
|
|
|
44
|
|
|
51
|
|
|
(18.2)
|
|
|
(29.4)
|
|
|
Total consumer
other
|
|
709
|
|
|
774
|
|
|
939
|
|
|
(8.4)
|
|
|
(24.5)
|
|
|
Total consumer
loans
|
|
15,841
|
|
|
15,802
|
|
|
16,039
|
|
|
.2
|
|
|
(1.2)
|
|
|
Total loans (c),
(d)
|
$
|
58,264
|
|
$
|
57,953
|
|
$
|
55,600
|
|
|
.5
|
%
|
|
4.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans Held for
Sale Composition
|
|
(dollars in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percent change
6-30-15 vs.
|
|
|
|
|
|
6-30-15
|
|
3-31-15
|
|
6-30-14
|
|
3-31-15
|
|
6-30-14
|
|
Commercial, financial
and agricultural
|
$
|
217
|
|
$
|
183
|
|
$
|
181
|
|
|
18.6
|
%
|
|
19.9
|
%
|
Real estate —
commercial mortgage
|
|
576
|
|
|
1,408
|
|
|
221
|
|
|
(59.1)
|
|
|
160.6
|
|
Commercial lease
financing
|
|
7
|
|
|
14
|
|
|
10
|
|
|
(50.0)
|
|
|
(30.0)
|
|
Real estate —
residential mortgage
|
|
35
|
|
|
44
|
|
|
23
|
|
|
(20.5)
|
|
|
52.2
|
|
|
Total loans held for
sale (e)
|
$
|
835
|
|
$
|
1,649
|
|
$
|
435
|
|
|
(49.4)
|
%
|
|
92.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Summary of Changes
in Loans Held for Sale
|
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2Q15
|
|
1Q15
|
|
4Q14
|
|
3Q14
|
|
2Q14
|
|
Balance at beginning
of period
|
$
|
1,649
|
|
$
|
734
|
|
$
|
784
|
|
$
|
435
|
|
$
|
401
|
|
|
New
originations
|
|
1,650
|
|
|
2,130
|
|
|
2,465
|
|
|
1,593
|
|
|
978
|
|
|
Transfers from (to)
held to maturity, net
|
|
6
|
|
|
10
|
|
|
2
|
|
|
—
|
|
|
(8)
|
|
|
Loan sales
|
|
(2,466)
|
|
|
(1,204)
|
|
|
(2,516)
|
|
|
(1,243)
|
|
|
(934)
|
|
|
Loan draws
(payments), net
|
|
(4)
|
|
|
(21)
|
|
|
(1)
|
|
|
(1)
|
|
|
(2)
|
|
Balance at end of
period (e)
|
$
|
835
|
|
$
|
1,649
|
|
$
|
734
|
|
$
|
784
|
|
$
|
435
|
|
(a)
|
Loan balances include
$89 million, $87 million, and $94 million of commercial credit card
balances at June 30, 2015, March 31, 2015, and June 30, 2014,
respectively.
|
(b)
|
Commercial lease
financing includes receivables held as collateral for a secured
borrowing of $191 million, $230 million, and $375 million at June
30, 2015, March 31, 2015, and June 30, 2014, respectively.
Principal reductions are based on the cash payments received from
these related receivables.
|
(c)
|
At June 30, 2015,
total loans include purchased loans of $125 million, of which $12
million were purchased credit impaired. At March 31, 2015, total
loans include purchased loans of $130 million, of which $12 million
were purchased credit impaired. At June 30, 2014, total loans
include purchased loans of $151 million, of which $15 million were
purchased credit impaired.
|
(d)
|
Total loans exclude
loans of $2 billion at June 30, 2015, $2.2 billion at March 31,
2015, and $4.2 billion at June 30, 2014, related to the
discontinued operations of the education lending
business.
|
(e)
|
Total loans held for
sale exclude loans held for sale of $179 million at June 30, 2015,
related to the discontinued operations of the education lending
business.
|
N/M = Not
Meaningful
|
Exit Loan
Portfolio From Continuing Operations
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance
|
|
Change
|
|
Net
Loan
|
|
Balance
on
|
|
Outstanding
|
|
6-30-15
vs.
|
|
Charge-offs
|
|
Nonperforming
Status
|
|
6-30-15
|
|
3-31-15
|
|
3-31-15
|
|
2Q15
|
|
1Q15
|
(c)
|
6-30-15
|
|
3-31-15
|
Residential
properties — homebuilder
|
$
|
6
|
|
$
|
6
|
|
|
—
|
|
|
—
|
|
$
|
1
|
|
$
|
8
|
|
$
|
8
|
Marine and RV floor
plan
|
|
2
|
|
|
6
|
|
$
|
(4)
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
5
|
Commercial lease
financing (a)
|
|
831
|
|
|
877
|
|
|
(46)
|
|
|
—
|
|
|
(1)
|
|
|
—
|
|
|
—
|
Total commercial
loans
|
|
839
|
|
|
889
|
|
|
(50)
|
|
|
—
|
|
|
—
|
|
|
9
|
|
|
13
|
Home equity —
Other
|
|
236
|
|
|
253
|
|
|
(17)
|
|
$
|
1
|
|
|
—
|
|
|
8
|
|
|
9
|
Marine
|
|
673
|
|
|
730
|
|
|
(57)
|
|
|
3
|
|
|
2
|
|
|
8
|
|
|
9
|
RV and other
consumer
|
|
47
|
|
|
50
|
|
|
(3)
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
1
|
Total consumer
loans
|
|
956
|
|
|
1,033
|
|
|
(77)
|
|
|
4
|
|
|
3
|
|
|
17
|
|
|
19
|
Total exit loans in loan
portfolio
|
$
|
1,795
|
|
$
|
1,922
|
|
$
|
(127)
|
|
$
|
4
|
|
$
|
3
|
|
$
|
26
|
|
$
|
32
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued
operations — education
lending
business (not included in exit loans above)
(b)
|
$
|
1,962
|
|
$
|
2,219
|
|
$
|
(257)
|
|
$
|
2
|
|
$
|
6
|
|
$
|
6
|
|
$
|
8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Includes (1) the
business aviation, commercial vehicle, office products,
construction, and industrial leases; (2) Canadian lease financing
portfolios; (3) European lease financing portfolios; and (4) all
remaining balances related to lease in, lease out; sale in, lease
out; service contract leases; and qualified technological equipment
leases.
|
(b)
|
Excludes loans held
for sale of $179 million at June 30, 2015.
|
(c)
|
Credit amounts
indicate recoveries exceeded charge-offs.
|
Asset Quality
Statistics From Continuing Operations
|
|
(dollars in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2Q15
|
|
|
1Q15
|
|
|
4Q14
|
|
|
3Q14
|
|
|
2Q14
|
|
Net loan
charge-offs
|
$
|
36
|
|
$
|
28
|
|
$
|
32
|
|
$
|
31
|
|
$
|
30
|
|
Net loan charge-offs
to average total loans
|
|
.25
|
%
|
|
.20
|
%
|
|
.22
|
%
|
|
.22
|
%
|
|
.22
|
%
|
Allowance for loan
and lease losses
|
$
|
796
|
|
$
|
794
|
|
$
|
794
|
|
$
|
804
|
|
$
|
814
|
|
Allowance for credit
losses (a)
|
|
841
|
|
|
835
|
|
|
829
|
|
|
839
|
|
|
851
|
|
Allowance for loan
and lease losses to period-end loans
|
|
1.37
|
%
|
|
1.37
|
%
|
|
1.38
|
%
|
|
1.43
|
%
|
|
1.46
|
%
|
Allowance for credit
losses to period-end loans
|
|
1.44
|
|
|
1.44
|
|
|
1.44
|
|
|
1.49
|
|
|
1.53
|
|
Allowance for loan
and lease losses to nonperforming loans
|
|
190.0
|
|
|
181.7
|
|
|
190.0
|
|
|
200.5
|
|
|
205.6
|
|
Allowance for credit
losses to nonperforming loans
|
|
200.7
|
|
|
191.1
|
|
|
198.3
|
|
|
209.2
|
|
|
214.9
|
|
Nonperforming loans
at period end (b)
|
$
|
419
|
|
$
|
437
|
|
$
|
418
|
|
$
|
401
|
|
$
|
396
|
|
Nonperforming assets
at period end
|
|
440
|
|
|
457
|
|
|
436
|
|
|
418
|
|
|
410
|
|
Nonperforming loans
to period-end portfolio loans
|
|
.72
|
%
|
|
.75
|
%
|
|
.73
|
%
|
|
.71
|
%
|
|
.71
|
%
|
Nonperforming assets
to period-end portfolio loans plus
OREO and other
nonperforming assets
|
|
.75
|
|
|
.79
|
|
|
.76
|
|
|
.74
|
|
|
.74
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Includes the
allowance for loan and lease losses plus the liability for credit
losses on lending-related unfunded commitments.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(b)
|
Loan balances exclude
$12 million, $12 million, $13 million, $14 million, and $15 million
of purchased credit impaired loans at June 30, 2015, March 31,
2015, December 31, 2014, September 30, 2014, and June 30, 2014,
respectively.
|
Summary of Loan
and Lease Loss Experience From Continuing
Operations
|
(dollars in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Six months
ended
|
|
|
6-30-15
|
|
3-31-15
|
|
6-30-14
|
|
6-30-15
|
|
6-30-14
|
|
Average loans
outstanding
|
$
|
57,978
|
|
$
|
57,512
|
|
$
|
55,611
|
|
$
|
57,746
|
|
$
|
55,181
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan
and lease losses at beginning of period
|
$
|
794
|
|
$
|
794
|
|
$
|
834
|
|
$
|
794
|
|
$
|
848
|
|
Loans charged
off:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial, financial and
agricultural
|
|
21
|
|
|
12
|
|
|
11
|
|
|
33
|
|
|
23
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate — commercial
mortgage
|
|
—
|
|
|
2
|
|
|
1
|
|
|
2
|
|
|
3
|
|
Real estate —
construction
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|
2
|
|
Total commercial real estate loans
|
|
—
|
|
|
3
|
|
|
1
|
|
|
3
|
|
|
5
|
|
Commercial lease
financing
|
|
1
|
|
|
2
|
|
|
2
|
|
|
3
|
|
|
5
|
|
Total commercial loans
|
|
22
|
|
|
17
|
|
|
14
|
|
|
39
|
|
|
33
|
|
Real estate — residential
mortgage
|
|
1
|
|
|
2
|
|
|
2
|
|
|
3
|
|
|
5
|
|
Home equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Key Community Bank
|
|
8
|
|
|
7
|
|
|
10
|
|
|
15
|
|
|
20
|
|
Other
|
|
2
|
|
|
1
|
|
|
3
|
|
|
3
|
|
|
6
|
|
Total home equity loans
|
|
10
|
|
|
8
|
|
|
13
|
|
|
18
|
|
|
26
|
|
Consumer other — Key
Community Bank
|
|
6
|
|
|
6
|
|
|
8
|
|
|
12
|
|
|
16
|
|
Credit cards
|
|
8
|
|
|
8
|
|
|
12
|
|
|
16
|
|
|
18
|
|
Consumer other:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marine
|
|
5
|
|
|
5
|
|
|
7
|
|
|
10
|
|
|
14
|
|
Other
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|
1
|
|
Total consumer other
|
|
5
|
|
|
6
|
|
|
7
|
|
|
11
|
|
|
15
|
|
Total consumer
loans
|
|
30
|
|
|
30
|
|
|
42
|
|
|
60
|
|
|
80
|
|
Total loans charged off
|
|
52
|
|
|
47
|
|
|
56
|
|
|
99
|
|
|
113
|
|
Recoveries:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial, financial and
agricultural
|
|
6
|
|
|
5
|
|
|
11
|
|
|
11
|
|
|
21
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate — commercial
mortgage
|
|
—
|
|
|
2
|
|
|
1
|
|
|
2
|
|
|
2
|
|
Real estate —
construction
|
|
1
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
15
|
|
Total commercial real estate loans
|
|
1
|
|
|
2
|
|
|
2
|
|
|
3
|
|
|
17
|
|
Commercial lease
financing
|
|
1
|
|
|
4
|
|
|
4
|
|
|
5
|
|
|
6
|
|
Total commercial loans
|
|
8
|
|
|
11
|
|
|
17
|
|
|
19
|
|
|
44
|
|
Real estate — residential
mortgage
|
|
1
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
2
|
|
Home equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Key Community Bank
|
|
1
|
|
|
2
|
|
|
1
|
|
|
3
|
|
|
4
|
|
Other
|
|
1
|
|
|
1
|
|
|
2
|
|
|
2
|
|
|
3
|
|
Total home equity loans
|
|
2
|
|
|
3
|
|
|
3
|
|
|
5
|
|
|
7
|
|
Consumer other — Key
Community Bank
|
|
2
|
|
|
2
|
|
|
1
|
|
|
4
|
|
|
3
|
|
Credit cards
|
|
1
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
1
|
|
Consumer other:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marine
|
|
2
|
|
|
3
|
|
|
2
|
|
|
5
|
|
|
5
|
|
Other
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
Total consumer other
|
|
2
|
|
|
3
|
|
|
3
|
|
|
5
|
|
|
6
|
|
Total consumer
loans
|
|
8
|
|
|
8
|
|
|
9
|
|
|
16
|
|
|
19
|
|
Total
recoveries
|
|
16
|
|
|
19
|
|
|
26
|
|
|
35
|
|
|
63
|
|
Net loan
charge-offs
|
|
(36)
|
|
|
(28)
|
|
|
(30)
|
|
|
(64)
|
|
|
(50)
|
|
Provision (credit)
for loan and lease losses
|
|
37
|
|
|
29
|
|
|
10
|
|
|
66
|
|
|
16
|
|
Foreign currency
translation adjustment
|
|
1
|
|
|
(1)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Allowance for loan
and lease losses at end of period
|
$
|
796
|
|
$
|
794
|
|
$
|
814
|
|
$
|
796
|
|
$
|
814
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liability for credit
losses on lending-related commitments at beginning of
period
|
$
|
41
|
|
$
|
35
|
|
$
|
35
|
|
$
|
35
|
|
$
|
37
|
|
Provision (credit)
for losses on lending-related commitments
|
|
4
|
|
|
6
|
|
|
2
|
|
|
10
|
|
|
—
|
|
Liability for credit
losses on lending-related commitments at end of period
(a)
|
$
|
45
|
|
$
|
41
|
|
$
|
37
|
|
$
|
45
|
|
$
|
37
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total allowance for
credit losses at end of period
|
$
|
841
|
|
$
|
835
|
|
$
|
851
|
|
$
|
841
|
|
$
|
851
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loan charge-offs
to average total loans
|
|
.25
|
%
|
|
.20
|
%
|
|
.22
|
%
|
|
.22
|
%
|
|
.18
|
%
|
Allowance for loan
and lease losses to period-end loans
|
|
1.37
|
|
|
1.37
|
|
|
1.46
|
|
|
1.37
|
|
|
1.46
|
|
Allowance for credit
losses to period-end loans
|
|
1.44
|
|
|
1.44
|
|
|
1.53
|
|
|
1.44
|
|
|
1.53
|
|
Allowance for loan
and lease losses to nonperforming loans
|
|
190.0
|
|
|
181.7
|
|
|
205.6
|
|
|
190.0
|
|
|
205.6
|
|
Allowance for credit
losses to nonperforming loans
|
|
200.7
|
|
|
191.1
|
|
|
214.9
|
|
|
200.7
|
|
|
214.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued
operations — education lending business:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans charged off
|
$
|
6
|
|
$
|
10
|
|
$
|
11
|
|
$
|
16
|
|
$
|
24
|
|
Recoveries
|
|
4
|
|
|
4
|
|
|
4
|
|
|
8
|
|
|
8
|
|
Net loan
charge-offs
|
$
|
(2)
|
|
$
|
(6)
|
|
$
|
(7)
|
|
$
|
(8)
|
|
$
|
(16)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Included in
"accrued expense and other liabilities" on the balance
sheet.
|
|
|
|
|
|
|
|
|
|
|
Summary of
Nonperforming Assets and Past Due Loans From Continuing
Operations
|
|
(dollars in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6-30-15
|
|
3-31-15
|
|
12-31-14
|
|
9-30-14
|
|
6-30-14
|
|
Commercial, financial
and agricultural
|
$
|
100
|
|
$
|
98
|
|
$
|
59
|
|
$
|
47
|
|
$
|
37
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate —
commercial mortgage
|
|
26
|
|
|
30
|
|
|
34
|
|
|
41
|
|
|
38
|
|
Real estate —
construction
|
|
12
|
|
|
12
|
|
|
13
|
|
|
14
|
|
|
9
|
|
Total commercial real estate loans
|
|
38
|
|
|
42
|
|
|
47
|
|
|
55
|
|
|
47
|
|
Commercial lease
financing
|
|
18
|
|
|
20
|
|
|
18
|
|
|
14
|
|
|
15
|
|
Total commercial loans
|
|
156
|
|
|
160
|
|
|
124
|
|
|
116
|
|
|
99
|
|
Real estate —
residential mortgage
|
|
67
|
|
|
72
|
|
|
79
|
|
|
81
|
|
|
89
|
|
Home
equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Key Community
Bank
|
|
176
|
|
|
182
|
|
|
185
|
|
|
174
|
|
|
178
|
|
Other
|
|
8
|
|
|
9
|
|
|
10
|
|
|
10
|
|
|
11
|
|
Total home equity loans
|
|
184
|
|
|
191
|
|
|
195
|
|
|
184
|
|
|
189
|
|
Consumer other — Key
Community Bank
|
|
1
|
|
|
2
|
|
|
2
|
|
|
2
|
|
|
2
|
|
Credit
cards
|
|
2
|
|
|
2
|
|
|
2
|
|
|
1
|
|
|
1
|
|
Consumer
other:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marine
|
|
8
|
|
|
9
|
|
|
15
|
|
|
16
|
|
|
15
|
|
Other
|
|
1
|
|
|
1
|
|
|
1
|
|
|
1
|
|
|
1
|
|
Total consumer other
|
|
9
|
|
|
10
|
|
|
16
|
|
|
17
|
|
|
16
|
|
Total consumer loans
|
|
263
|
|
|
277
|
|
|
294
|
|
|
285
|
|
|
297
|
|
Total nonperforming loans (a)
|
|
419
|
|
|
437
|
|
|
418
|
|
|
401
|
|
|
396
|
|
Nonperforming loans
held for sale
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
OREO
|
|
20
|
|
|
20
|
|
|
18
|
|
|
16
|
|
|
12
|
|
Other nonperforming
assets
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
Total nonperforming
assets
|
$
|
440
|
|
$
|
457
|
|
$
|
436
|
|
$
|
418
|
|
$
|
410
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accruing loans past
due 90 days or more
|
$
|
66
|
|
$
|
111
|
|
$
|
96
|
|
$
|
71
|
|
$
|
83
|
|
Accruing loans past
due 30 through 89 days
|
|
181
|
|
|
216
|
|
|
235
|
|
|
340
|
|
|
274
|
|
Restructured loans —
accruing and nonaccruing (b)
|
|
300
|
|
|
268
|
|
|
270
|
|
|
264
|
|
|
266
|
|
Restructured loans
included in nonperforming loans (b)
|
|
170
|
|
|
141
|
|
|
157
|
|
|
137
|
|
|
142
|
|
Nonperforming assets
from discontinued operations —
education lending
business
|
|
6
|
|
|
8
|
|
|
11
|
|
|
9
|
|
|
19
|
|
Nonperforming loans
to period-end portfolio loans
|
|
.72
|
%
|
|
.75
|
%
|
|
.73
|
%
|
|
.71
|
%
|
|
.71
|
%
|
Nonperforming assets
to period-end portfolio loans
plus OREO and other
nonperforming assets
|
|
.75
|
|
|
.79
|
|
|
.76
|
|
|
.74
|
|
|
.74
|
|
(a)
|
Loan balances exclude
$12 million, $12 million, $13 million, $14 million, and $15 million
of purchased credit impaired loans at June 30, 2015, March 31,
2015, December 31, 2014, September 30, 2014, and June 30, 2014,
respectively.
|
(b)
|
Restructured loans
(i.e., troubled debt restructurings) are those for which Key, for
reasons related to a borrower's financial difficulties, grants a
concession to the borrower that it would not otherwise
consider. These concessions are made to improve the
collectability of the loan and generally take the form of a
reduction of the interest rate, extension of the maturity date or
reduction in the principal balance.
|
Summary of Changes
in Nonperforming Loans From Continuing
Operations
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2Q15
|
|
1Q15
|
|
4Q14
|
|
3Q14
|
|
2Q14
|
Balance at beginning
of period
|
|
$
|
437
|
|
$
|
418
|
|
$
|
401
|
|
$
|
396
|
|
$
|
449
|
Loans placed on nonaccrual
status
|
|
|
92
|
|
|
123
|
|
|
103
|
|
|
109
|
|
|
79
|
Charge-offs
|
|
|
(52)
|
|
|
(47)
|
|
|
(49)
|
|
|
(49)
|
|
|
(56)
|
Loans sold
|
|
|
—
|
|
|
—
|
|
|
(2)
|
|
|
—
|
|
|
(21)
|
Payments
|
|
|
(25)
|
|
|
(9)
|
|
|
(17)
|
|
|
(13)
|
|
|
(17)
|
Transfers to OREO
|
|
|
(5)
|
|
|
(7)
|
|
|
(6)
|
|
|
(7)
|
|
|
(4)
|
Loans returned to accrual
status
|
|
|
(28)
|
|
|
(41)
|
|
|
(12)
|
|
|
(35)
|
|
|
(34)
|
Balance at end of
period (a)
|
|
$
|
419
|
|
$
|
437
|
|
$
|
418
|
|
$
|
401
|
|
$
|
396
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Loan
balances exclude $12 million, $12 million, $13 million, $14
million, and $15 million of purchased credit impaired loans at June
30, 2015, March 31, 2015,
December 31, 2014, September
30, 2014, and June 30, 2014, respectively.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Summary of Changes
in Other Real Estate Owned, Net of Allowance, From Continuing
Operations
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2Q15
|
|
1Q15
|
|
4Q14
|
|
3Q14
|
|
2Q14
|
Balance at beginning
of period
|
|
$
|
20
|
|
$
|
18
|
|
$
|
16
|
|
$
|
12
|
|
$
|
12
|
Properties acquired —
nonperforming loans
|
|
|
5
|
|
|
7
|
|
|
6
|
|
|
7
|
|
|
4
|
Valuation
adjustments
|
|
|
(1)
|
|
|
(1)
|
|
|
(2)
|
|
|
(1)
|
|
|
(1)
|
Properties sold
|
|
|
(4)
|
|
|
(4)
|
|
|
(2)
|
|
|
(2)
|
|
|
(3)
|
Balance at end of
period
|
|
$
|
20
|
|
$
|
20
|
|
$
|
18
|
|
$
|
16
|
|
$
|
12
|
Line of Business
Results
|
|
(dollars in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percent change
2Q15 vs.
|
|
|
|
2Q15
|
|
1Q15
|
|
4Q14
|
|
3Q14
|
|
2Q14
|
|
1Q15
|
|
2Q14
|
|
Key Community
Bank
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Summary of
operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue
(TE)
|
|
$
|
559
|
|
$
|
549
|
|
$
|
558
|
|
$
|
558
|
|
$
|
553
|
|
|
1.8
|
%
|
|
1.1
|
%
|
Provision for credit
losses
|
|
|
7
|
|
|
29
|
|
|
12
|
|
|
27
|
|
|
25
|
|
|
(75.9)
|
|
|
(72.0)
|
|
Noninterest
expense
|
|
|
449
|
|
|
441
|
|
|
448
|
|
|
440
|
|
|
443
|
|
|
1.8
|
|
|
1.4
|
|
Net income (loss)
attributable to Key
|
|
|
65
|
|
|
50
|
|
|
61
|
|
|
57
|
|
|
53
|
|
|
30.0
|
|
|
22.6
|
|
Average loans and
leases
|
|
|
30,707
|
|
|
30,662
|
|
|
30,478
|
|
|
30,103
|
|
|
30,034
|
|
|
.1
|
|
|
2.2
|
|
Average deposits
|
|
|
50,766
|
|
|
50,417
|
|
|
50,850
|
|
|
50,302
|
|
|
50,232
|
|
|
.7
|
|
|
1.1
|
|
Net loan
charge-offs
|
|
|
20
|
|
|
28
|
|
|
28
|
|
|
28
|
|
|
33
|
|
|
(28.6)
|
|
|
(39.4)
|
|
Net loan charge-offs to
average total loans
|
|
|
.26
|
%
|
|
.37
|
%
|
|
.36
|
%
|
|
.37
|
%
|
|
.44
|
%
|
|
N/A
|
|
|
N/A
|
|
Nonperforming assets at
period end
|
|
$
|
305
|
|
$
|
328
|
|
$
|
340
|
|
$
|
338
|
|
$
|
331
|
|
|
(7.0)
|
|
|
(7.9)
|
|
Return on average allocated
equity
|
|
|
9.75
|
%
|
|
7.41
|
%
|
|
9.00
|
%
|
|
8.44
|
%
|
|
7.83
|
%
|
|
N/A
|
|
|
N/A
|
|
Average full-time equivalent
employees
|
|
|
7,400
|
|
|
7,452
|
|
|
7,414
|
|
|
7,573
|
|
|
7,569
|
|
|
(.7)
|
|
|
(2.2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Key Corporate
Bank
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Summary of
operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue
(TE)
|
|
$
|
477
|
|
$
|
401
|
|
$
|
460
|
|
$
|
400
|
|
$
|
395
|
|
|
19.0
|
%
|
|
20.8
|
%
|
Provision for credit
losses
|
|
|
38
|
|
|
8
|
|
|
4
|
|
|
(3)
|
|
|
(4)
|
|
|
375.0
|
|
|
N/M
|
|
Noninterest
expense
|
|
|
252
|
|
|
216
|
|
|
245
|
|
|
215
|
|
|
207
|
|
|
16.7
|
|
|
21.7
|
|
Net income (loss)
attributable to Key
|
|
|
135
|
|
|
127
|
|
|
151
|
|
|
136
|
|
|
135
|
|
|
6.3
|
|
|
—
|
|
Average loans and leases
|
|
|
25,298
|
|
|
24,722
|
|
|
23,798
|
|
|
23,215
|
|
|
22,886
|
|
|
2.3
|
|
|
10.5
|
|
Average loans held for sale
|
|
|
1,234
|
|
|
775
|
|
|
855
|
|
|
481
|
|
|
429
|
|
|
59.2
|
|
|
187.6
|
|
Average
deposits
|
|
|
19,708
|
|
|
18,567
|
|
|
18,356
|
|
|
17,600
|
|
|
16,357
|
|
|
6.1
|
|
|
20.5
|
|
Net loan
charge-offs
|
|
|
12
|
|
|
(4)
|
|
|
(3)
|
|
|
(1)
|
|
|
(2)
|
|
|
N/M
|
|
|
N/M
|
|
Net loan charge-offs to
average total loans
|
|
|
.19
|
%
|
|
(.07)
|
%
|
|
(.05)
|
%
|
|
(.02)
|
%
|
|
(.04)
|
%
|
|
N/A
|
|
|
N/A
|
|
Nonperforming assets at
period end
|
|
$
|
105
|
|
$
|
93
|
|
$
|
41
|
|
$
|
20
|
|
$
|
22
|
|
|
12.9
|
|
|
377.3
|
|
Return on average allocated
equity
|
|
|
30.15
|
%
|
|
27.66
|
%
|
|
34.17
|
%
|
|
32.08
|
%
|
|
35.72
|
%
|
|
N/A
|
|
|
N/A
|
|
Average full-time equivalent
employees
|
|
|
2,058
|
|
|
2,057
|
|
|
2,043
|
|
|
1,998
|
|
|
1,940
|
|
|
—
|
|
|
6.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TE
= Taxable Equivalent, N/A = Not Applicable, N/M = Not
Meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/keycorp-reports-second-quarter-2015-net-income-of-230-million-or-27-per-common-share-300114264.html
SOURCE KeyCorp