CLEVELAND, April 21, 2016 /PRNewswire/ -- KeyCorp
(NYSE: KEY) today announced first quarter net income from
continuing operations attributable to Key common shareholders of
$182 million, or $.22 per common share, compared to $224 million, or $.27 per common share, for the fourth quarter of
2015, and $222 million, or
$.26 per common share, for the first
quarter of 2015. During the first quarter of 2016, Key incurred
merger-related expense totaling $24
million, or $.02 per common
share, compared to $6 million in the
fourth quarter of 2015. Excluding merger-related expense, earnings
per common share were $.24 for the
first quarter of 2016.
"While the operating environment remains challenging, our
results reflect continued momentum in our core businesses and
progress on our strategic initiatives," said Chairman and Chief
Executive Officer Beth Mooney.
"Excluding merger-related expense, we generated positive operating
leverage relative to the same period last year, driven by a 3%
increase in revenue and well-controlled expenses. Net interest
income was up 6% from last year, benefiting from growth in average
loans of 5%. Noninterest income reflects positive trends in
several of our core fee-based businesses where we have continued to
make investments, such as consumer and commercial payments. Our
market sensitive businesses were impacted this quarter by the
industry-wide slowdown in capital markets activity. Expenses
also reflect the lower level of market-related activity and our
ongoing efforts to improve efficiency."
"Credit quality measures this quarter were impacted by credit
migration in our oil and gas portfolio, reflecting current market
conditions. Net charge-offs remained below our targeted
range," added Mooney.
"We also continue to make progress on our First Niagara
Financial Group acquisition, including reaching an important
milestone of shareholders from both companies approving the
merger," Mooney continued. "We are excited about the opportunity we
have as we prepare to bring these two companies together, and we
remain confident in our ability to deliver on our commitments and
financial targets."
FIRST QUARTER 2016 FINANCIAL RESULTS, from continuing
operations
Compared to First Quarter of 2015
- Average loans up 5%, driven by 12% growth in commercial,
financial and agricultural loans
- Average deposits, excluding deposits in foreign office, up 4%
reflecting growth in Key's commercial mortgage servicing business
and inflows from commercial and consumer clients
- Net interest income (taxable-equivalent) up $35 million, as higher earning asset balances and
yields were partially offset by higher levels of liquidity
- Noninterest income down $6
million due to lower net gains from principal investing,
partially offset by an increase in other income and growth in core
fee-based businesses
- Noninterest expense, excluding merger-related expense of
$24 million, increased $10 million, primarily attributable to slight
increases across various nonpersonnel areas
- Net loan charge-offs to average loans of .31%, up from .20% in
the year-ago quarter
Compared to Fourth Quarter of 2015
- Average loans up 1%, primarily driven by a 2% increase in
commercial, financial and agricultural loans
- Average deposits, excluding deposits in foreign office,
relatively stable due to increases in certificates of deposit and
other time deposits, largely offset by a decline in the seasonal
and short-term deposit inflows from commercial clients
- Net interest income (taxable-equivalent) up $2 million driven by higher earning asset
balances and yields
- Noninterest income down $54
million, primarily due to lower investment banking and debt
placement fees related to weaker capital markets activity
- Noninterest expense, excluding merger-related expense,
decreased $51 million, primarily
driven by a reduction in personnel expense related to lower
performance-based compensation
- Net loan charge-offs to average loans of .31%, up from .25% in
the prior quarter
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Selected Financial
Highlights
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dollars in
millions, except per share data
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Change 1Q16
vs.
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1Q16
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4Q15
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1Q15
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4Q15
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1Q15
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Income (loss) from
continuing operations attributable to Key common
shareholders
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$
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182
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$
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224
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$
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222
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(18.8)
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%
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(18.0)
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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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.22
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.27
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.26
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(18.5)
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(15.4)
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Return on average
total assets from continuing operations
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.80
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%
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.97
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%
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1.03
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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), (b)
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11.11
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10.94
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10.64
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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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12.79
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$
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12.51
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$
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12.12
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2.2
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%
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5.5
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%
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Net interest margin
(TE) from continuing operations
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2.89
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%
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2.87
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%
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2.91
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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." 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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(b)
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3-31-16 ratio is
estimated.
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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 1Q16
vs.
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1Q16
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4Q15
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1Q15
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4Q15
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1Q15
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Net interest income
(TE)
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$
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612
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$
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610
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$
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577
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.3
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%
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6.1
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%
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Noninterest
income
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431
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485
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437
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(11.1)
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(1.4)
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Total
revenue
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$
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1,043
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$
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1,095
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$
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1,014
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(4.7)
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%
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2.9
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%
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TE = Taxable
Equivalent
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Taxable-equivalent net interest income was $612 million for the first quarter of 2016, and
the net interest margin was 2.89%. These results compare to
taxable-equivalent net interest income of $577 million and a net interest margin of 2.91%
for the first quarter of 2015. The $35
million increase in net interest income reflects higher
earning asset balances and an increase in earning asset yields,
largely the result of Key's loan portfolio re-pricing to the higher
short-term interest rates that resulted from the Federal Reserve's
decision to raise the target range for the federal funds rate in
mid-December of 2015. The net interest margin remained
relatively stable, benefitting from higher earning asset yields,
which were offset by higher levels of liquidity.
Compared to the fourth quarter of 2015, taxable-equivalent net
interest income increased by $2
million, and the net interest margin increased by two basis
points. The increases in net interest income and the net
interest margin were primarily attributable to higher earning asset
balances and yields.
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Noninterest
Income
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dollars in
millions
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Change 1Q16
vs.
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1Q16
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4Q15
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1Q15
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4Q15
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1Q15
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Trust and investment
services income
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$
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109
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$
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105
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$
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109
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3.8
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%
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—
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Investment banking
and debt placement fees
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71
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127
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68
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(44.1)
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4.4
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%
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Service charges on
deposit accounts
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65
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64
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61
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1.6
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6.6
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Operating lease
income and other leasing gains
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17
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15
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19
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13.3
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(10.5)
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Corporate services
income
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50
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55
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43
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(9.1)
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16.3
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Cards and payments
income
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46
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47
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42
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(2.1)
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9.5
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Corporate-owned life
insurance income
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28
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36
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31
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(22.2)
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(9.7)
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Consumer mortgage
income
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2
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2
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3
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—
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(33.3)
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Mortgage servicing
fees
|
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12
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15
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13
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(20.0)
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(7.7)
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Net gains (losses)
from principal investing
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—
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—
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29
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N/M
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N/M
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Other
income
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31
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19
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19
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63.2
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63.2
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Total noninterest
income
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$
|
431
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$
|
485
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$
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437
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(11.1)
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%
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(1.4)
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%
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N/M = Not
Meaningful
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Key's noninterest income was $431
million for the first quarter of 2016, compared to
$437 million for the year-ago
quarter. The decrease from the prior year was largely
attributable to lower net gains from principal investing of
$29 million, reflecting market
weakness. This decline was offset by an increase in other income of
$12 million primarily related to
gains from certain real estate investments, along with continued
growth in some of Key's core fee-based businesses, including
corporate services and cards and payments.
Compared to the fourth quarter of 2015, noninterest income
decreased by $54 million. The
primary cause for the decline was $56
million of lower investment banking and debt placement fees,
reflecting weaker capital markets activity, along with $8 million in lower corporate-owned life
insurance income, which is seasonally higher in the fourth quarter.
Partially offsetting these decreases were $12 million of increased other income primarily
related to gains from certain real estate investments and
$4 million of higher trust and
investment services income.
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Noninterest
Expense
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dollars in
millions
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Change 1Q16
vs.
|
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1Q16
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4Q15
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1Q15
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4Q15
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1Q15
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Personnel
expense
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$
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404
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$
|
429
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$
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389
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(5.8)
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%
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3.9
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%
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Nonpersonnel
expense
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299
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307
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280
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(2.6)
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6.8
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Total noninterest
expense
|
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$
|
703
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$
|
736
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$
|
669
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(4.5)
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%
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5.1
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%
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Key's noninterest expense was $703
million for the first quarter of 2016. Noninterest expense
included $24 million of
merger-related expense, primarily made up of $16 million in personnel expense related to
technology development for systems conversions and fully-dedicated
personnel for merger and integration efforts. The remaining
$8 million of merger-related expense
was nonpersonnel expense, largely recognized in business services
and professional fees. In the fourth quarter of 2015, Key incurred
$6 million of merger-related
expenses, primarily in nonpersonnel expense.
Excluding merger-related expense, noninterest expense was
$10 million higher than the first
quarter of last year. The growth was primarily attributable to
slight increases across various nonpersonnel areas. Personnel
expenses, adjusting for merger-related expense, declined
$1 million from the first quarter of
2015, due to lower employee benefits and severance expense
offsetting higher salaries and performance-based compensation.
Compared to the fourth quarter of 2015, excluding merger-related
expense, noninterest expense decreased by $51 million. The largest driver of this reduction
was a $41 million decrease in
personnel expense due to lower performance-based compensation
costs. Non-merger related marketing and business services and
professional fees also each declined by $5
million.
BALANCE SHEET HIGHLIGHTS
In the first quarter of 2016, Key had average assets of
$96.3 billion compared to
$91.9 billion in the first quarter of
2015 and $96.1 billion in the fourth
quarter of 2015.
|
Average
Loans
|
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dollars in
millions
|
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|
Change 1Q16
vs.
|
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|
1Q16
|
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4Q15
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1Q15
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4Q15
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1Q15
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Commercial, financial
and agricultural (a)
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$
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31,590
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$
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30,884
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$
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28,321
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2.3
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%
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11.5
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%
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Other commercial
loans
|
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13,111
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12,996
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13,304
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.9
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(1.5)
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Home equity
loans
|
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10,240
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10,418
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10,576
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(1.7)
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(3.2)
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Other consumer
loans
|
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5,215
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|
5,278
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5,311
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(1.2)
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(1.8)
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Total
loans
|
|
$
|
60,156
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$
|
59,576
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$
|
57,512
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1.0
|
%
|
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4.6
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%
|
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(a)
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Commercial, financial
and agricultural average loan balances include $85 million, $87
million, and $87 million of assets from commercial credit cards at
March 31, 2016, December 31, 2015, and March 31, 2015,
respectively.
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Average loans were $60.2 billion
for the first quarter of 2016, an increase of $2.6 billion compared to the first quarter of
2015. The loan growth occurred in the commercial, financial
and agricultural portfolio, which increased $3.3 billion and was spread across Key's
commercial lines of business. Consumer loans declined by
$432 million mostly due to paydowns
on Key's prime-based home equity lines of credit and continued
run-off in Key's consumer exit portfolios.
Compared to the fourth quarter of 2015, average loans increased
by $580 million, driven by
commercial, financial and agricultural loans, which grew
$706 million. Consumer loans
declined $241 million, largely the
result of a decline in home equity loans.
|
Average
Deposits
|
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|
dollars in
millions
|
|
|
|
|
|
|
|
|
|
|
Change 1Q16
vs.
|
|
|
|
|
1Q16
|
|
4Q15
|
|
1Q15
|
|
4Q15
|
|
1Q15
|
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|
Non-time deposits
(a)
|
|
$
|
65,637
|
|
$
|
66,270
|
|
$
|
63,606
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(1.0)
|
%
|
|
3.2
|
%
|
|
Certificates of
deposit ($100,000 or more)
|
|
|
2,761
|
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|
2,150
|
|
|
2,017
|
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|
28.4
|
|
|
36.9
|
|
|
Other time
deposits
|
|
|
3,200
|
|
|
3,047
|
|
|
3,217
|
|
|
5.0
|
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|
(.5)
|
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|
Total
deposits
|
|
$
|
71,598
|
|
$
|
71,467
|
|
$
|
68,840
|
|
|
.2
|
%
|
|
4.0
|
%
|
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|
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|
Cost of total
deposits (a)
|
|
|
.17
|
%
|
|
.15
|
%
|
|
.15
|
%
|
|
N/A
|
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
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|
(a)
|
Excludes deposits in
foreign office.
|
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|
N/A = Not
Applicable
|
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|
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|
|
Average deposits, excluding deposits in foreign office, totaled
$71.6 billion for the first quarter
of 2016, an increase of $2.8 billion
compared to the year-ago quarter. Interest-bearing deposits
increased $3.4 billion driven by a
$2.8 billion increase in NOW and
money market deposit accounts and a $727
million increase in certificates of deposit and other time
deposits. The increase in NOW and money market deposit
accounts reflects growth in the commercial mortgage servicing
business and inflows from commercial and consumer clients.
These increases were partially offset by a $689 million decline in noninterest-bearing
deposits.
Compared to the fourth quarter of 2015, average deposits,
excluding deposits in foreign office, were relatively stable.
Growth in certificates of deposit and other time deposits was
largely offset by a decline in the seasonal and short-term deposit
inflows from commercial clients that Key experienced during the
fourth quarter of 2015.
|
ASSET
QUALITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
dollars in
millions
|
|
|
|
|
|
|
|
|
|
|
|
Change 1Q16
vs.
|
|
|
|
|
1Q16
|
|
|
4Q15
|
|
|
1Q15
|
|
|
4Q15
|
|
|
1Q15
|
|
|
Net loan
charge-offs
|
|
$
|
46
|
|
$
|
37
|
|
$
|
28
|
|
|
24.3
|
%
|
|
64.3
|
%
|
|
Net loan charge-offs
to average total loans
|
|
|
.31
|
%
|
|
.25
|
%
|
|
.20
|
%
|
|
N/A
|
|
|
N/A
|
|
|
Nonperforming loans
at period end (a)
|
|
$
|
676
|
|
$
|
387
|
|
$
|
437
|
|
|
74.7
|
%
|
|
54.7
|
%
|
|
Nonperforming assets
at period end
|
|
|
692
|
|
|
403
|
|
|
457
|
|
|
71.7
|
|
|
51.4
|
|
|
Allowance for loan
and lease losses
|
|
|
826
|
|
|
796
|
|
|
794
|
|
|
3.8
|
|
|
4.0
|
|
|
Allowance for loan
and lease losses to nonperforming loans
|
|
|
122.2
|
%
|
|
205.7
|
%
|
|
181.7
|
%
|
|
N/A
|
|
|
N/A
|
|
|
Provision for credit
losses
|
|
$
|
89
|
|
$
|
45
|
|
$
|
35
|
|
|
97.8
|
|
|
154.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Loan balances exclude
$11 million, $11 million, and $12 million of purchased credit
impaired loans at March 31, 2016, December 31, 2015, and March 31,
2015, respectively.
|
|
|
|
N/A = Not
Applicable
|
Asset quality measures in the first quarter of 2016 were
impacted by credit migration, primarily in the oil and gas
portfolio. Key's provision for credit losses was $89 million for the first quarter of 2016,
compared to $35 million for the first
quarter of 2015 and $45 million for
the fourth quarter of 2015. Key's allowance for loan and
lease losses was $826 million, or
1.37% of total period-end loans, at March
31, 2016, compared to 1.37% at March
31, 2015, and 1.33% at December
31, 2015.
Net loan charge-offs for the first quarter of 2016 totaled
$46 million, or .31% of average total
loans. These results compare to $28
million, or .20%, for the first quarter of 2015, and
$37 million, or .25%, for the fourth
quarter of 2015.
At March 31, 2016, Key's
nonperforming loans totaled $676
million and represented 1.12% of period-end portfolio loans,
compared to .75% at March 31, 2015,
and .65% at December 31, 2015.
The increase in nonperforming loans in the first quarter of 2016
was primarily related to Key's oil and gas portfolio. Nonperforming
assets at March 31, 2016 totaled
$692 million and represented 1.14% of
period-end portfolio loans and OREO and other nonperforming assets,
compared to .79% at March 31, 2015,
and .67% at December 31,
2015.
CAPITAL
Key's estimated risk-based capital ratios included in the
following table continued to exceed all "well-capitalized"
regulatory benchmarks at March 31,
2016.
|
Capital
Ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3-31-16
|
|
|
12-31-15
|
|
|
3-31-15
|
|
|
Common Equity Tier 1
(a), (b)
|
|
11.11
|
%
|
|
10.94
|
%
|
|
10.64
|
|
|
Tier 1 risk-based
capital (a)
|
|
11.42
|
|
|
11.35
|
|
|
11.04
|
|
|
Total risk based
capital (a)
|
|
13.17
|
|
|
12.97
|
|
|
12.79
|
|
|
Tangible common
equity to tangible assets (b)
|
|
9.97
|
|
|
9.98
|
|
|
9.92
|
|
|
Leverage
(a)
|
|
10.73
|
|
|
10.72
|
|
|
10.91
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
3-31-16 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 "tangible common equity" and "Common Equity Tier 1." 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 March
31, 2016, Key's estimated Common Equity Tier 1 and Tier 1
risk-based capital ratios stood at 11.11% and 11.42%,
respectively. In addition, the tangible common equity ratio
was 9.97% at March 31, 2016.
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 ratio as calculated under the fully
phased-in Regulatory Capital Rules was 11.05% at March 31, 2016. 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 1Q16
vs.
|
|
|
|
|
|
1Q16
|
|
|
4Q15
|
|
|
1Q15
|
|
|
4Q15
|
|
|
1Q15
|
|
|
Shares outstanding at
beginning of period
|
|
|
835,751
|
|
|
835,285
|
|
|
859,403
|
|
|
.1
|
%
|
|
(2.8)
|
%
|
|
Common shares
repurchased
|
|
|
—
|
|
|
—
|
|
|
(14,087)
|
|
|
N/M
|
|
|
N/M
|
|
|
Shares reissued
(returned) under employee benefit plans
|
|
|
6,539
|
|
|
466
|
|
|
5,571
|
|
|
N/M
|
|
|
17.4
|
|
|
Common shares
exchanged for Series A Preferred Stock
|
|
|
—
|
|
|
—
|
|
|
33
|
|
|
N/M
|
|
|
N/M
|
|
|
Shares outstanding at
end of period
|
|
|
842,290
|
|
|
835,751
|
|
|
850,920
|
|
|
.8
|
%
|
|
(1.0)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
N/M = Not
Meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As previously reported, Key's existing share repurchase program
is suspended through the second quarter of 2016. Share repurchases
were included in Key's 2016 Comprehensive Capital Analysis and
Review submission.
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 1Q16
vs.
|
|
|
|
|
1Q16
|
|
|
4Q15
|
|
|
1Q15
|
|
|
4Q15
|
|
|
1Q15
|
|
|
Revenue from
continuing operations (TE)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Key Community
Bank
|
|
$
|
595
|
|
$
|
588
|
|
$
|
549
|
|
|
1.2
|
%
|
|
8.4
|
%
|
|
Key Corporate
Bank
|
|
|
426
|
|
|
479
|
|
|
402
|
|
|
(11.1)
|
|
|
6.0
|
|
|
Other
Segments
|
|
|
21
|
|
|
31
|
|
|
66
|
|
|
(32.3)
|
|
|
(68.2)
|
|
|
Total segments
|
|
|
1,042
|
|
|
1,098
|
|
|
1,017
|
|
|
(5.1)
|
|
|
2.5
|
|
|
Reconciling
Items
|
|
|
1
|
|
|
(3)
|
|
|
(3)
|
|
|
N/M
|
|
|
N/M
|
|
|
Total
|
|
$
|
1,043
|
|
$
|
1,095
|
|
$
|
1,014
|
|
|
(4.7)
|
%
|
|
2.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations attributable to Key
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Key Community
Bank
|
|
$
|
74
|
|
$
|
70
|
|
$
|
51
|
|
|
5.7
|
%
|
|
45.1
|
%
|
|
Key Corporate
Bank
|
|
|
118
|
|
|
142
|
|
|
127
|
|
|
(16.9)
|
|
|
(7.1)
|
|
|
Other
Segments
|
|
|
14
|
|
|
25
|
|
|
43
|
|
|
(44.0)
|
|
|
(67.4)
|
|
|
Total
segments
|
|
|
206
|
|
|
237
|
|
|
221
|
|
|
(13.1)
|
|
|
(6.8)
|
|
|
Reconciling
Items
|
|
|
(19)
|
|
|
(7)
|
|
|
7
|
|
|
N/M
|
|
|
N/M
|
|
|
Total
|
|
$
|
187
|
|
$
|
230
|
|
$
|
228
|
|
|
(18.7)
|
%
|
|
(18.0)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TE = Taxable
Equivalent, N/M = Not Meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Key Community
Bank
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
dollars in
millions
|
|
|
|
|
|
|
|
|
|
|
|
Change 1Q16
vs.
|
|
|
|
|
|
1Q16
|
|
|
4Q15
|
|
|
1Q15
|
|
|
4Q15
|
|
|
1Q15
|
|
|
Summary of
operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
(TE)
|
|
$
|
399
|
|
$
|
388
|
|
$
|
358
|
|
|
2.8
|
%
|
|
11.5
|
%
|
|
Noninterest
income
|
|
|
196
|
|
|
200
|
|
|
191
|
|
|
(2.0)
|
|
|
2.6
|
|
|
Total revenue
(TE)
|
|
|
595
|
|
|
588
|
|
|
549
|
|
|
1.2
|
|
|
8.4
|
|
|
Provision for credit
losses
|
|
|
42
|
|
|
20
|
|
|
30
|
|
|
110.0
|
|
|
40.0
|
|
|
Noninterest
expense
|
|
|
436
|
|
|
456
|
|
|
438
|
|
|
(4.4)
|
|
|
(.5)
|
|
|
Income (loss) before
income taxes (TE)
|
|
|
117
|
|
|
112
|
|
|
81
|
|
|
4.5
|
|
|
44.4
|
|
|
Allocated income
taxes (benefit) and TE adjustments
|
|
|
43
|
|
|
42
|
|
|
30
|
|
|
2.4
|
|
|
43.3
|
|
|
Net income (loss)
attributable to Key
|
|
$
|
74
|
|
$
|
70
|
|
$
|
51
|
|
|
5.7
|
%
|
|
45.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
balances
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and
leases
|
|
$
|
30,789
|
|
$
|
30,925
|
|
$
|
30,662
|
|
|
(.4)
|
%
|
|
.4
|
%
|
|
Total
assets
|
|
|
32,856
|
|
|
33,056
|
|
|
32,768
|
|
|
(.6)
|
|
|
.3
|
|
|
Deposits
|
|
|
52,803
|
|
|
52,219
|
|
|
50,415
|
|
|
1.1
|
|
|
4.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets under
management at period end
|
|
$
|
34,107
|
|
$
|
33,983
|
|
$
|
39,281
|
|
|
.4
|
%
|
|
(13.2)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TE = Taxable
Equivalent
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional Key
Community Bank Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
dollars in
millions
|
|
|
|
|
|
|
|
|
|
|
|
Change 1Q16
vs.
|
|
|
|
|
|
1Q16
|
|
|
4Q15
|
|
|
1Q15
|
|
|
4Q15
|
|
|
1Q15
|
|
|
Noninterest
income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trust and investment
services income
|
|
$
|
73
|
|
$
|
73
|
|
$
|
74
|
|
|
—
|
|
|
(1.4)
|
%
|
|
Service charges on
deposit accounts
|
|
|
54
|
|
|
54
|
|
|
51
|
|
|
—
|
|
|
5.9
|
|
|
Cards and payments
income
|
|
|
43
|
|
|
44
|
|
|
38
|
|
|
(2.3)
|
%
|
|
13.2
|
|
|
Other noninterest
income
|
|
|
26
|
|
|
29
|
|
|
28
|
|
|
(10.3)
|
|
|
(7.1)
|
|
|
Total noninterest
income
|
|
$
|
196
|
|
$
|
200
|
|
$
|
191
|
|
|
(2.0)
|
%
|
|
2.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average deposit
balances
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOW and money market
deposit accounts
|
|
$
|
29,432
|
|
$
|
28,862
|
|
$
|
27,873
|
|
|
2.0
|
%
|
|
5.6
|
%
|
|
Savings
deposits
|
|
|
2,340
|
|
|
2,330
|
|
|
2,377
|
|
|
.4
|
|
|
(1.6)
|
|
|
Certificates of
deposit ($100,000 or more)
|
|
|
2,120
|
|
|
1,686
|
|
|
1,558
|
|
|
25.7
|
|
|
36.1
|
|
|
Other time
deposits
|
|
|
3,197
|
|
|
3,045
|
|
|
3,211
|
|
|
5.0
|
|
|
(.4)
|
|
|
Deposits in foreign
office
|
|
|
—
|
|
|
208
|
|
|
333
|
|
|
N/M
|
|
|
N/M
|
|
|
Noninterest-bearing
deposits
|
|
|
15,714
|
|
|
16,088
|
|
|
15,063
|
|
|
(2.3)
|
|
|
4.3
|
|
|
Total
deposits
|
|
$
|
52,803
|
|
$
|
52,219
|
|
$
|
50,415
|
|
|
1.1
|
%
|
|
4.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Home equity
loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
balance
|
|
$
|
10,037
|
|
$
|
10,203
|
|
$
|
10,316
|
|
|
|
|
|
|
|
|
Weighted-average
loan-to-value ratio (at date of origination)
|
|
|
71
|
%
|
|
71
|
%
|
|
71
|
%
|
|
|
|
|
|
|
|
Percent first lien
positions
|
|
|
61
|
|
|
61
|
|
|
60
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Branches
|
|
|
961
|
|
|
966
|
|
|
992
|
|
|
|
|
|
|
|
|
Automated teller
machines
|
|
|
1,249
|
|
|
1,256
|
|
|
1,287
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
N/M = Not
Meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Key Community Bank Summary of Operations
- Positive operating leverage from prior year
- Net income increased to $74
million, 45.1% growth from prior year
- Commercial, financial, and agricultural loan growth of
$529 million, or 4.3% from prior
year
- Average deposits up $2.4 billion,
or 4.7% from the prior year
Key Community Bank recorded net income attributable to Key of
$74 million for the first quarter of
2016, compared to net income attributable to Key of $51 million for the year-ago quarter.
Taxable-equivalent net interest income increased by $41 million, or 11.5%, from the first quarter of
2015 due to favorable deposit rates and volume with increases in
average deposits of $2.4 billion, or
4.7%, from one year ago, as well as growth in average loans and
leases of $127 million, or .4%.
Commercial, financial and agricultural loans grew by $529 million, or 4.3%, from the prior year.
Noninterest income increased $5
million, or 2.6%, from the year-ago quarter. Core
fee-based businesses continue to show positive trends, as cards and
payments income increased $5 million
and service charges on deposit accounts increased $3 million. These increases were partially offset
by market weakness affecting Key's Private Bank as well as lower
foreign exchange revenue.
The provision for credit losses increased by $12 million, or 40%, from the first quarter of
2015, primarily due to credit migration reflecting current market
conditions, along with additional reserves for continued growth.
Additionally, net loan charge-offs decreased $5 million from the same period one year
ago.
Noninterest expense decreased by $2
million, or .5 %, from the year-ago quarter, driven by a
decrease in personnel costs related to lower salary and employee
benefits expenses.
|
Key Corporate
Bank
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
dollars in
millions
|
|
|
|
|
|
|
|
|
|
|
|
Change 1Q16
vs.
|
|
|
|
|
|
1Q16
|
|
|
4Q15
|
|
|
1Q15
|
|
|
4Q15
|
|
|
1Q15
|
|
|
Summary of
operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
(TE)
|
|
$
|
218
|
|
$
|
224
|
|
$
|
214
|
|
|
(2.7)
|
%
|
|
1.9
|
%
|
|
Noninterest
income
|
|
|
208
|
|
|
255
|
|
|
188
|
|
|
(18.4)
|
|
|
10.6
|
|
|
Total revenue
(TE)
|
|
|
426
|
|
|
479
|
|
|
402
|
|
|
(11.1)
|
|
|
6.0
|
|
|
Provision for credit
losses
|
|
|
43
|
|
|
26
|
|
|
6
|
|
|
65.4
|
|
|
616.7
|
|
|
Noninterest
expense
|
|
|
237
|
|
|
257
|
|
|
219
|
|
|
(7.8)
|
|
|
8.2
|
|
|
Income (loss) before
income taxes (TE)
|
|
|
146
|
|
|
196
|
|
|
177
|
|
|
(25.5)
|
|
|
(17.5)
|
|
|
Allocated income
taxes and TE adjustments
|
|
|
28
|
|
|
51
|
|
|
49
|
|
|
(45.1)
|
|
|
(42.9)
|
|
|
Net income
(loss)
|
|
|
118
|
|
|
145
|
|
|
128
|
|
|
(18.6)
|
|
|
(7.8)
|
|
|
Less: Net income
(loss) attributable to noncontrolling interests
|
|
|
—
|
|
|
3
|
|
|
1
|
|
|
N/M
|
|
|
N/M
|
|
|
Net income (loss)
attributable to Key
|
|
$
|
118
|
|
$
|
142
|
|
$
|
127
|
|
|
(16.9)
|
%
|
|
(7.1)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
balances
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and
leases
|
|
$
|
27,722
|
|
$
|
26,981
|
|
$
|
24,722
|
|
|
2.7
|
%
|
|
12.1
|
%
|
|
Loans held for
sale
|
|
|
811
|
|
|
820
|
|
|
775
|
|
|
(1.1)
|
|
|
4.6
|
|
|
Total
assets
|
|
|
33,413
|
|
|
32,639
|
|
|
30,240
|
|
|
2.4
|
|
|
10.5
|
|
|
Deposits
|
|
|
18,074
|
|
|
19,080
|
|
|
18,569
|
|
|
(5.3)
|
|
|
(2.7)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TE = Taxable
Equivalent, N/M = Not Meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional Key
Corporate Bank Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
dollars in
millions
|
|
|
|
|
|
|
|
|
|
|
|
Change 1Q16
vs.
|
|
|
|
|
|
1Q16
|
|
|
4Q15
|
|
|
1Q15
|
|
|
4Q15
|
|
|
1Q15
|
|
|
Noninterest
income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trust and investment
services income
|
|
$
|
36
|
|
$
|
32
|
|
$
|
35
|
|
|
12.5
|
%
|
|
2.9
|
%
|
|
Investment banking
and debt placement fees
|
|
|
70
|
|
|
125
|
|
|
68
|
|
|
(44.0)
|
|
|
2.9
|
|
|
Operating lease
income and other leasing gains
|
|
|
13
|
|
|
13
|
|
|
14
|
|
|
—
|
|
|
(7.1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate services
income
|
|
|
38
|
|
|
44
|
|
|
32
|
|
|
(13.6)
|
|
|
18.8
|
|
|
Service charges on
deposit accounts
|
|
|
11
|
|
|
10
|
|
|
10
|
|
|
10.0
|
|
|
10.0
|
|
|
Cards and payments
income
|
|
|
3
|
|
|
3
|
|
|
4
|
|
|
—
|
|
|
(25.0)
|
|
|
Payments and services
income
|
|
|
52
|
|
|
57
|
|
|
46
|
|
|
(8.8)
|
|
|
13.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage servicing
fees
|
|
|
12
|
|
|
15
|
|
|
13
|
|
|
(20.0)
|
|
|
(7.7)
|
|
|
Other noninterest
income
|
|
|
25
|
|
|
13
|
|
|
12
|
|
|
92.3
|
|
|
108.3
|
|
|
Total noninterest
income
|
|
$
|
208
|
|
$
|
255
|
|
$
|
188
|
|
|
(18.4)
|
%
|
|
10.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Key Corporate Bank Summary of Operations
- Average loan and lease balances up 12.1% from the prior
year
- Revenue up 6.0% from the prior year
- Noninterest income up 10.6% from the prior year
Key Corporate Bank recorded net income attributable to Key of
$118 million for the first quarter of
2016, compared to $127 million for
the same period one year ago.
Taxable-equivalent net interest income increased by $4 million, or 1.9%, compared to the first
quarter of 2015. Average loan and lease balances increased
$3 billion, or 12.1%, from the
year-ago quarter, primarily driven by growth in commercial,
financial and agricultural loans. This growth in loan and
lease balances drove an increase of $5
million in earning asset spread. Average deposit
balances decreased $495 million, or
2.7%, from the year-ago quarter, driven by lower public
deposits. Although deposit balances decreased, there was a
higher mix of transactional deposit balances that drove an increase
of $2 million in deposit and
borrowing spread. The earning asset and deposit and borrowing
spread increases were partially offset by slight decreases across
various other items.
Noninterest income was up $20
million, or 10.6%, from the prior year. Other
noninterest income increased $13
million from the year-ago quarter mostly due to gains from
certain real estate investments. Corporate services income
was up $6 million due to growth in
commitment fees, derivatives, and foreign exchange.
Investment banking and debt placement fees increased by
$2 million due to higher loan
syndication and merger and acquisition fees. Partially
offsetting these increases were slight declines in operating lease
income and other leasing gains and cards and payments income of
$1 million each.
The provision for credit losses increased $37 million, or 616.7%, compared to the first
quarter of 2015 due to $22 million of
higher net loan charge-offs and credit migration in the oil and gas
portfolio.
Noninterest expense increased by $18
million, or 8.2%, from the first quarter of 2015.
Increased personnel costs and higher operating leases expenses were
the primary drivers.
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 $14 million for the first quarter of 2016,
compared to $43 million for the same
period last year. This decline was largely attributable to
lower net gains from principal investing of $29 million.
*****
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 $98.4
billion at March 31, 2016.
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, 2015, as well
as in KeyCorp's subsequent SEC filings, all of which have been
filed with the Securities and Exchange Commission (the "SEC") and
are 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 10:00 a.m.
ET, on Thursday, April 21,
2016. An audio replay of the call will be available through
April 28, 2016.
*****
|
Financial
Highlights
|
|
|
(dollars in millions,
except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
|
|
3-31-16
|
|
|
12-31-15
|
|
|
3-31-15
|
|
|
Summary of
operations
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
(TE)
|
$
|
612
|
|
|
$
|
610
|
|
|
$
|
577
|
|
|
Noninterest
income
|
|
431
|
|
|
|
485
|
|
|
|
437
|
|
|
Total revenue
(TE)
|
|
1,043
|
|
|
|
1,095
|
|
|
|
1,014
|
|
|
Provision for credit
losses
|
|
89
|
|
|
|
45
|
|
|
|
35
|
|
|
Noninterest
expense
|
|
703
|
|
|
|
736
|
|
|
|
669
|
|
|
Income (loss) from
continuing operations attributable to Key
|
|
187
|
|
|
|
230
|
|
|
|
228
|
|
|
Income (loss) from
discontinued operations, net of taxes (a)
|
|
1
|
|
|
|
(4)
|
|
|
|
5
|
|
|
Net income (loss)
attributable to Key
|
|
188
|
|
|
|
226
|
|
|
|
233
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations attributable to Key common
shareholders
|
|
182
|
|
|
|
224
|
|
|
|
222
|
|
|
Income (loss) from
discontinued operations, net of taxes (a)
|
|
1
|
|
|
|
(4)
|
|
|
|
5
|
|
|
Net income (loss)
attributable to Key common shareholders
|
|
183
|
|
|
|
220
|
|
|
|
227
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per common
share
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations attributable to Key common
shareholders
|
$
|
.22
|
|
|
$
|
.27
|
|
|
$
|
.26
|
|
|
Income (loss) from
discontinued operations, net of taxes
(a)
|
|
—
|
|
|
|
(.01)
|
|
|
|
.01
|
|
|
Net income (loss)
attributable to Key common shareholders
(b)
|
|
.22
|
|
|
|
.27
|
|
|
|
.27
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations attributable to Key common shareholders —
assuming dilution
|
|
.22
|
|
|
|
.27
|
|
|
|
.26
|
|
|
Income (loss) from
discontinued operations, net of taxes — assuming dilution
(a)
|
|
—
|
|
|
|
(.01)
|
|
|
|
.01
|
|
|
Net income (loss)
attributable to Key common shareholders — assuming dilution
(b)
|
|
.22
|
|
|
|
.26
|
|
|
|
.26
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends
paid
|
|
.075
|
|
|
|
.075
|
|
|
|
.065
|
|
|
Book value at period
end
|
|
12.79
|
|
|
|
12.51
|
|
|
|
12.12
|
|
|
Tangible book value
at period end
|
|
11.52
|
|
|
|
11.22
|
|
|
|
10.84
|
|
|
Market price at
period end
|
|
11.04
|
|
|
|
13.19
|
|
|
|
14.16
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance
ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
From continuing
operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
total assets
|
|
.80
|
%
|
|
|
.97
|
%
|
|
|
1.03
|
%
|
|
Return on average
common equity
|
|
6.86
|
|
|
|
8.51
|
|
|
|
8.76
|
|
|
Return on average
tangible common equity (c)
|
|
7.64
|
|
|
|
9.50
|
|
|
|
9.80
|
|
|
Net interest margin
(TE)
|
|
2.89
|
|
|
|
2.87
|
|
|
|
2.91
|
|
|
Cash efficiency
ratio (c)
|
|
66.6
|
|
|
|
66.4
|
|
|
|
65.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From consolidated
operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
total assets
|
|
.79
|
%
|
|
|
.93
|
%
|
|
|
1.03
|
%
|
|
Return on average
common equity
|
|
6.90
|
|
|
|
8.36
|
|
|
|
8.96
|
|
|
Return on average
tangible common equity (c)
|
|
7.68
|
|
|
|
9.33
|
|
|
|
10.02
|
|
|
Net interest margin
(TE)
|
|
2.83
|
|
|
|
2.84
|
|
|
|
2.88
|
|
|
Loan to deposit
(d)
|
|
85.7
|
|
|
|
87.8
|
|
|
|
86.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital ratios at
period end
|
|
|
|
|
|
|
|
|
|
|
|
|
Key shareholders'
equity to assets
|
|
11.25
|
%
|
|
|
11.30
|
%
|
|
|
11.26
|
%
|
|
Key common
shareholders' equity to assets
|
|
10.95
|
|
|
|
10.99
|
|
|
|
10.95
|
|
|
Tangible common
equity to tangible assets (c)
|
|
9.97
|
|
|
|
9.98
|
|
|
|
9.92
|
|
|
Common Equity Tier
1 (c), (e)
|
|
11.11
|
|
|
|
10.94
|
|
|
|
10.64
|
|
|
Tier 1 risk-based
capital (e)
|
|
11.42
|
|
|
|
11.35
|
|
|
|
11.04
|
|
|
Total risk-based
capital (e)
|
|
13.17
|
|
|
|
12.97
|
|
|
|
12.79
|
|
|
Leverage
(e)
|
|
10.73
|
|
|
|
10.72
|
|
|
|
10.91
|
|
|
Financial
Highlights (continued)
|
|
|
(dollars in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
3-31-16
|
|
|
12-31-15
|
|
|
3-31-15
|
|
|
Asset quality —
from continuing operations
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loan
charge-offs
|
$
|
46
|
|
|
$
|
37
|
|
|
$
|
28
|
|
|
Net loan charge-offs
to average total loans
|
|
.31
|
%
|
|
|
.25
|
%
|
|
|
.20
|
%
|
|
Allowance for loan
and lease losses
|
$
|
826
|
|
|
$
|
796
|
|
|
$
|
794
|
|
|
Allowance for credit
losses
|
|
895
|
|
|
|
852
|
|
|
|
835
|
|
|
Allowance for loan
and lease losses to period-end loans
|
|
1.37
|
%
|
|
|
1.33
|
%
|
|
|
1.37
|
%
|
|
Allowance for credit
losses to period-end loans
|
|
1.48
|
|
|
|
1.42
|
|
|
|
1.44
|
|
|
Allowance for loan
and lease losses to nonperforming loans
|
|
122.2
|
|
|
|
205.7
|
|
|
|
181.7
|
|
|
Allowance for credit
losses to nonperforming loans
|
|
132.4
|
|
|
|
220.2
|
|
|
|
191.1
|
|
|
Nonperforming loans
at period end (f)
|
$
|
676
|
|
|
$
|
387
|
|
|
$
|
437
|
|
|
Nonperforming assets
at period end
|
|
692
|
|
|
|
403
|
|
|
|
457
|
|
|
Nonperforming loans
to period-end portfolio loans
|
|
1.12
|
%
|
|
|
.65
|
%
|
|
|
.75
|
%
|
|
Nonperforming assets
to period-end portfolio loans plus OREO and other nonperforming
assets
|
|
1.14
|
|
|
|
.67
|
|
|
|
.79
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trust and
brokerage assets — from continuing operations
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets under
management
|
$
|
34,107
|
|
|
$
|
33,983
|
|
|
$
|
39,281
|
|
|
Nonmanaged and
brokerage assets
|
|
49,474
|
|
|
|
47,681
|
|
|
|
49,508
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
data
|
|
|
|
|
|
|
|
|
|
|
|
|
Average full-time
equivalent employees
|
|
13,403
|
|
|
|
13,359
|
|
|
|
13,591
|
|
|
Branches
|
|
961
|
|
|
|
966
|
|
|
|
992
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable-equivalent
adjustment
|
$
|
8
|
|
|
$
|
8
|
|
|
$
|
6
|
|
|
|
|
|
|
(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," 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 divided by
period-end consolidated total deposits (excluding deposits in
foreign office).
|
|
|
|
(e)
|
3-31-16 ratio is
estimated.
|
|
|
|
(f)
|
Loan balances exclude
$11 million, $11 million, and $12 million of purchased credit
impaired loans at March 31, 2016, December 31, 2015, and March 31,
2015, 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," "pre-provision net revenue," certain financial measures
excluding merger-related expense, 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 introduced 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.
|
|
|
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.
|
|
|
On October 30, 2015,
Key announced that it entered into a definitive agreement and plan
of merger to acquire First Niagara Financial Group. As a
result of this pending transaction, Key has recognized
merger-related expense. The table below shows the computation
for noninterest expense excluding merger-related expense and
earnings per common share excluding merger-related expense.
Management believes that eliminating the effects of the
merger-related expense 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. The
table below also shows the computation for the cash efficiency
ratio excluding merger-related expense. Management believes these
ratios provide greater consistency and comparability between Key's
results and those of its peer banks. Additionally, these
ratios are 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
|
|
|
|
|
|
3-31-16
|
|
|
12-31-15
|
|
|
3-31-15
|
|
|
Tangible common
equity to tangible assets at period end
|
|
|
|
|
|
|
|
|
|
|
|
|
Key shareholders'
equity (GAAP)
|
$
|
11,066
|
|
|
$
|
10,746
|
|
|
$
|
10,603
|
|
|
Less:
|
Intangible
assets (a)
|
|
1,077
|
|
|
|
1,080
|
|
|
|
1,088
|
|
|
|
Preferred Stock,
Series A (b)
|
|
281
|
|
|
|
281
|
|
|
|
281
|
|
|
|
Tangible common
equity (non-GAAP)
|
$
|
9,708
|
|
|
$
|
9,385
|
|
|
$
|
9,234
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
(GAAP)
|
$
|
98,402
|
|
|
$
|
95,133
|
|
|
$
|
94,206
|
|
|
Less:
|
Intangible
assets (a)
|
|
1,077
|
|
|
|
1,080
|
|
|
|
1,088
|
|
|
|
Tangible assets
(non-GAAP)
|
$
|
97,325
|
|
|
$
|
94,053
|
|
|
$
|
93,118
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible common
equity to tangible assets ratio (non-GAAP)
|
|
9.97
|
%
|
|
|
9.98
|
%
|
|
|
9.92
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Equity Tier
1 at period end
|
|
|
|
|
|
|
|
|
|
|
|
|
Key shareholders'
equity (GAAP)
|
$
|
11,066
|
|
|
$
|
10,746
|
|
|
|
10,603
|
|
|
Less:
|
Preferred Stock,
Series A (b)
|
|
281
|
|
|
|
281
|
|
|
|
281
|
|
|
|
Common Equity Tier 1
capital before adjustments and deductions
|
|
10,785
|
|
|
|
10,465
|
|
|
|
10,322
|
|
|
Less:
|
Goodwill, net of
deferred taxes
|
|
1,034
|
|
|
|
1,034
|
|
|
|
1,036
|
|
|
|
Intangible assets,
net of deferred taxes
|
|
35
|
|
|
|
26
|
|
|
|
36
|
|
|
|
Deferred tax
assets
|
|
1
|
|
|
|
1
|
|
|
|
1
|
|
|
|
Net unrealized gains
(losses) on available-for-sale securities, net of deferred
taxes
|
|
70
|
|
|
|
(58)
|
|
|
|
52
|
|
|
|
Accumulated gains
(losses) on cash flow hedges, net of deferred
taxes
|
|
47
|
|
|
|
(20)
|
|
|
|
(8)
|
|
|
|
Amounts in
accumulated other comprehensive income (loss) attributed
to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
pension and
postretirement benefit costs, net of deferred
taxes
|
|
(365)
|
|
|
|
(365)
|
|
|
|
(364)
|
|
|
|
Total Common Equity
Tier 1 capital (c)
|
$
|
9,963
|
|
|
$
|
9,847
|
|
|
|
9,569
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net risk-weighted
assets (regulatory) (c)
|
$
|
89,712
|
|
|
$
|
89,980
|
|
|
|
89,967
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Equity Tier 1
ratio (non-GAAP) (c)
|
|
11.11
|
%
|
|
|
10.94
|
%
|
|
|
10.64
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
expense excluding merger-related expense
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest expense
(GAAP)
|
$
|
703
|
|
|
$
|
736
|
|
|
$
|
669
|
|
|
Less:
|
Merger-related
expense
|
|
24
|
|
|
|
6
|
|
|
|
—
|
|
|
|
Noninterest expense
excluding merger-related expense (non-GAAP)
|
$
|
679
|
|
|
$
|
730
|
|
|
$
|
669
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
common share (EPS) excluding merger-related
expense
|
|
|
|
|
|
|
|
|
|
|
|
|
EPS from continuing
operations attributable to Key common shareholders ─
|
|
|
|
|
|
|
|
|
|
|
|
|
|
assuming
dilution
|
$
|
.22
|
|
|
$
|
.27
|
|
|
$
|
.26
|
|
|
Add:
|
EPS impact of
merger-related expense
|
|
.02
|
|
|
|
—
|
|
|
|
—
|
|
|
|
EPS from continuing
operations attributable to Key common shareholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
excluding
merger-related expense (non-GAAP)
|
$
|
.24
|
|
|
$
|
.27
|
|
|
$
|
.26
|
|
|
GAAP to Non-GAAP
Reconciliations (continued)
|
|
(dollars in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
|
|
3-31-16
|
|
|
12-31-15
|
|
|
3-31-15
|
|
|
Pre-provision net
revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
(GAAP)
|
$
|
604
|
|
|
$
|
602
|
|
|
$
|
571
|
|
|
Plus:
|
Taxable-equivalent
adjustment
|
|
8
|
|
|
|
8
|
|
|
|
6
|
|
|
|
Noninterest
income
|
|
431
|
|
|
|
485
|
|
|
|
437
|
|
|
Less:
|
Noninterest
expense
|
|
703
|
|
|
|
736
|
|
|
|
669
|
|
|
Pre-provision net
revenue from continuing operations (non-GAAP)
|
$
|
340
|
|
|
$
|
359
|
|
|
$
|
345
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average tangible
common equity
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Key
shareholders' equity (GAAP)
|
$
|
10,953
|
|
|
$
|
10,731
|
|
|
$
|
10,570
|
|
|
Less:
|
Intangible assets
(average) (d)
|
|
1,079
|
|
|
|
1,082
|
|
|
|
1,089
|
|
|
|
Preferred Stock,
Series A (average)
|
|
290
|
|
|
|
290
|
|
|
|
290
|
|
|
|
Average tangible
common equity (non-GAAP)
|
$
|
9,584
|
|
|
$
|
9,359
|
|
|
$
|
9,191
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
tangible common equity from continuing operations
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
from continuing operations attributable to Key common shareholders
(GAAP)
|
$
|
182
|
|
|
$
|
224
|
|
|
$
|
222
|
|
|
Average tangible
common equity (non-GAAP)
|
|
9,584
|
|
|
|
9,359
|
|
|
|
9,191
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
tangible common equity from continuing operations
(non-GAAP)
|
|
7.64
|
%
|
|
|
9.50
|
%
|
|
|
9.80
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
tangible common equity consolidated
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Key common shareholders (GAAP)
|
$
|
183
|
|
|
$
|
220
|
|
|
$
|
227
|
|
|
Average tangible
common equity (non-GAAP)
|
|
9,584
|
|
|
|
9,359
|
|
|
|
9,191
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
tangible common equity consolidated (non-GAAP)
|
|
7.68
|
%
|
|
|
9.33
|
%
|
|
|
10.02
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash efficiency
ratio
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest expense
(GAAP)
|
$
|
703
|
|
|
$
|
736
|
|
|
$
|
669
|
|
|
Less:
|
Intangible asset
amortization
|
|
8
|
|
|
|
9
|
|
|
|
9
|
|
|
|
Adjusted noninterest
expense (non-GAAP)
|
|
695
|
|
|
|
727
|
|
|
|
660
|
|
|
Less:
|
Merger-related
expense
|
|
24
|
|
|
|
6
|
|
|
|
—
|
|
|
|
Adjusted noninterest
expense excluding merger-related expense (non-GAAP)
|
$
|
671
|
|
|
$
|
721
|
|
|
$
|
660
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
(GAAP)
|
$
|
604
|
|
|
$
|
602
|
|
|
$
|
571
|
|
|
Plus:
|
Taxable-equivalent
adjustment
|
|
8
|
|
|
|
8
|
|
|
|
6
|
|
|
|
Noninterest
income
|
|
431
|
|
|
|
485
|
|
|
|
437
|
|
|
|
Total
taxable-equivalent revenue (non-GAAP)
|
$
|
1,043
|
|
|
$
|
1,095
|
|
|
$
|
1,014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash efficiency ratio
(non-GAAP)
|
|
66.6
|
%
|
|
|
66.4
|
%
|
|
|
65.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash efficiency ratio
excluding merger-related expense (non-GAAP)
|
|
64.3
|
%
|
|
|
65.8
|
%
|
|
|
65.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
|
|
|
|
|
|
|
|
|
|
3-31-16
|
|
|
|
|
|
|
|
|
|
Common Equity Tier
1 under the Regulatory Capital Rules ("RCR")
(estimates)
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Equity Tier 1
under current RCR
|
$
|
9,963
|
|
|
|
|
|
|
|
|
|
|
Adjustments from
current RCR to the fully phased-in RCR:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred tax assets
and other intangible assets (e)
|
|
(24)
|
|
|
|
|
|
|
|
|
|
|
|
Common Equity Tier 1
anticipated under the fully phased-in RCR (f)
|
$
|
9,939
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net risk-weighted
assets under current RCR
|
$
|
89,712
|
|
|
|
|
|
|
|
|
|
|
Adjustments from
current RCR to the fully phased-in RCR:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage servicing
assets (g)
|
|
477
|
|
|
|
|
|
|
|
|
|
|
|
Volcker
funds
|
|
(290)
|
|
|
|
|
|
|
|
|
|
|
|
All other
assets
|
|
18
|
|
|
|
|
|
|
|
|
|
|
|
Total risk-weighted
assets anticipated under the fully phased-in RCR
(f)
|
$
|
89,917
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Equity Tier 1
ratio under the fully phased-in RCR (f)
|
|
11.05
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
For the three months
ended March 31, 2016, December 31, 2015, and March 31, 2015,
intangible assets exclude $40 million, $45 million, and $61
million, respectively, of period-end purchased credit card
receivables.
|
|
|
|
(b)
|
Net of capital
surplus.
|
|
|
|
(c)
|
3-31-16 amount is
estimated.
|
|
|
|
(d)
|
For the three months
ended March 31, 2016, December 31, 2015, and March 31, 2015,
average intangible assets exclude $42 million, $47 million, and $64
million, respectively, of average purchased credit card
receivables.
|
|
|
|
(e)
|
Includes the deferred
tax assets subject to future taxable income for realization,
primarily tax credit carryforwards, as well as intangible assets
(other than goodwill and mortgage servicing assets) subject to the
transition provisions of the final rule.
|
|
|
|
(f)
|
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."
|
|
|
|
(g)
|
Item is included in
the 10%/15% exceptions bucket calculation and is risk-weighted at
250%.
|
|
|
|
GAAP = U.S. generally
accepted accounting principles
|
|
Consolidated
Balance Sheets
|
|
(dollars in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3-31-16
|
|
|
12-31-15
|
|
|
3-31-15
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
$
|
60,438
|
|
|
$
|
59,876
|
|
|
$
|
57,953
|
|
Loans held for
sale
|
|
|
684
|
|
|
|
639
|
|
|
|
1,649
|
|
Securities available
for sale
|
|
|
14,304
|
|
|
|
14,218
|
|
|
|
13,120
|
|
Held-to-maturity
securities
|
|
|
5,003
|
|
|
|
4,897
|
|
|
|
5,005
|
|
Trading account
assets
|
|
|
765
|
|
|
|
788
|
|
|
|
789
|
|
Short-term
investments
|
|
|
5,436
|
|
|
|
2,707
|
|
|
|
3,378
|
|
Other
investments
|
|
|
643
|
|
|
|
655
|
|
|
|
730
|
|
|
Total earning
assets
|
|
|
87,273
|
|
|
|
83,780
|
|
|
|
82,624
|
|
Allowance for loan
and lease losses
|
|
|
(826)
|
|
|
|
(796)
|
|
|
|
(794)
|
|
Cash and due from
banks
|
|
|
474
|
|
|
|
607
|
|
|
|
506
|
|
Premises and
equipment
|
|
|
750
|
|
|
|
779
|
|
|
|
806
|
|
Operating lease
assets
|
|
|
362
|
|
|
|
340
|
|
|
|
306
|
|
Goodwill
|
|
|
1,060
|
|
|
|
1,060
|
|
|
|
1,057
|
|
Other intangible
assets
|
|
|
57
|
|
|
|
65
|
|
|
|
92
|
|
Corporate-owned life
insurance
|
|
|
3,557
|
|
|
|
3,541
|
|
|
|
3,488
|
|
Derivative
assets
|
|
|
1,065
|
|
|
|
619
|
|
|
|
731
|
|
Accrued income and
other assets
|
|
|
2,849
|
|
|
|
3,290
|
|
|
|
3,142
|
|
Discontinued
assets
|
|
|
1,781
|
|
|
|
1,846
|
|
|
|
2,246
|
|
|
Total
assets
|
|
$
|
98,402
|
|
|
$
|
95,131
|
|
|
$
|
94,204
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits in domestic
offices:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOW and money market
deposit accounts
|
|
$
|
38,946
|
|
|
$
|
37,089
|
|
|
$
|
35,623
|
|
|
Savings
deposits
|
|
|
2,385
|
|
|
|
2,341
|
|
|
|
2,413
|
|
|
Certificates of
deposit ($100,000 or more)
|
|
|
3,095
|
|
|
|
2,392
|
|
|
|
1,982
|
|
|
Other time
deposits
|
|
|
3,259
|
|
|
|
3,127
|
|
|
|
3,182
|
|
|
Total interest-bearing
deposits
|
|
|
47,685
|
|
|
|
44,949
|
|
|
|
43,200
|
|
|
Noninterest-bearing
deposits
|
|
|
25,697
|
|
|
|
26,097
|
|
|
|
27,948
|
|
Deposits in foreign
office — interest-bearing
|
|
|
—
|
|
|
|
—
|
|
|
|
474
|
|
|
Total
deposits
|
|
|
73,382
|
|
|
|
71,046
|
|
|
|
71,622
|
|
Federal funds
purchased and securities
sold under
repurchase agreements
|
|
|
374
|
|
|
|
372
|
|
|
|
517
|
|
Bank notes and other
short-term borrowings
|
|
|
615
|
|
|
|
533
|
|
|
|
608
|
|
Derivative
liabilities
|
|
|
790
|
|
|
|
632
|
|
|
|
825
|
|
Accrued expense and
other liabilities
|
|
|
1,410
|
|
|
|
1,605
|
|
|
|
1,308
|
|
Long-term
debt
|
|
|
10,760
|
|
|
|
10,184
|
|
|
|
8,711
|
|
|
Total
liabilities
|
|
|
87,331
|
|
|
|
84,372
|
|
|
|
83,591
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock,
Series A
|
|
|
290
|
|
|
|
290
|
|
|
|
290
|
|
Common
shares
|
|
|
1,017
|
|
|
|
1,017
|
|
|
|
1,017
|
|
Capital
surplus
|
|
|
3,818
|
|
|
|
3,922
|
|
|
|
3,910
|
|
Retained
earnings
|
|
|
9,042
|
|
|
|
8,922
|
|
|
|
8,445
|
|
Treasury stock, at
cost
|
|
|
(2,888)
|
|
|
|
(3,000)
|
|
|
|
(2,780)
|
|
Accumulated other
comprehensive income (loss)
|
|
|
(213)
|
|
|
|
(405)
|
|
|
|
(279)
|
|
|
Key shareholders'
equity
|
|
|
11,066
|
|
|
|
10,746
|
|
|
|
10,603
|
|
Noncontrolling
interests
|
|
|
5
|
|
|
|
13
|
|
|
|
10
|
|
|
Total
equity
|
|
|
11,071
|
|
|
|
10,759
|
|
|
|
10,613
|
|
Total liabilities
and equity
|
|
$
|
98,402
|
|
|
$
|
95,131
|
|
|
$
|
94,204
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares
outstanding (000)
|
|
|
842,290
|
|
|
|
835,751
|
|
|
|
850,920
|
|
Consolidated
Statements of Income
|
|
(dollars in millions,
except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
|
3-31-16
|
|
12-31-15
|
|
3-31-15
|
|
Interest
income
|
|
|
|
|
|
|
|
|
|
Loans
|
$
|
562
|
|
$
|
552
|
|
$
|
523
|
|
Loans held for
sale
|
|
8
|
|
|
8
|
|
|
7
|
|
Securities available
for sale
|
|
75
|
|
|
76
|
|
|
70
|
|
Held-to-maturity
securities
|
|
24
|
|
|
24
|
|
|
24
|
|
Trading account
assets
|
|
7
|
|
|
6
|
|
|
5
|
|
Short-term
investments
|
|
4
|
|
|
3
|
|
|
2
|
|
Other
investments
|
|
3
|
|
|
4
|
|
|
5
|
|
|
Total interest
income
|
|
683
|
|
|
673
|
|
|
636
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
31
|
|
|
26
|
|
|
26
|
|
Bank notes and other
short-term borrowings
|
|
2
|
|
|
3
|
|
|
2
|
|
Long-term
debt
|
|
46
|
|
|
42
|
|
|
37
|
|
|
Total interest
expense
|
|
79
|
|
|
71
|
|
|
65
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
604
|
|
|
602
|
|
|
571
|
|
Provision for credit
losses
|
|
89
|
|
|
45
|
|
|
35
|
|
Net interest income
after provision for credit losses
|
|
515
|
|
|
557
|
|
|
536
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
income
|
|
|
|
|
|
|
|
|
|
Trust and investment
services income
|
|
109
|
|
|
105
|
|
|
109
|
|
Investment banking
and debt placement fees
|
|
71
|
|
|
127
|
|
|
68
|
|
Service charges on
deposit accounts
|
|
65
|
|
|
64
|
|
|
61
|
|
Operating lease
income and other leasing gains
|
|
17
|
|
|
15
|
|
|
19
|
|
Corporate services
income
|
|
50
|
|
|
55
|
|
|
43
|
|
Cards and payments
income
|
|
46
|
|
|
47
|
|
|
42
|
|
Corporate-owned life
insurance income
|
|
28
|
|
|
36
|
|
|
31
|
|
Consumer mortgage
income
|
|
2
|
|
|
2
|
|
|
3
|
|
Mortgage servicing
fees
|
|
12
|
|
|
15
|
|
|
13
|
|
Net gains (losses)
from principal investing
|
|
—
|
|
|
—
|
|
|
29
|
|
Other income
(a), (b)
|
|
31
|
|
|
19
|
|
|
19
|
|
|
Total noninterest
income
|
|
431
|
|
|
485
|
|
|
437
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
expense
|
|
|
|
|
|
|
|
|
|
Personnel
|
|
404
|
|
|
429
|
|
|
389
|
|
Net
occupancy
|
|
61
|
|
|
64
|
|
|
65
|
|
Computer
processing
|
|
43
|
|
|
43
|
|
|
38
|
|
Business services and
professional fees
|
|
41
|
|
|
44
|
|
|
33
|
|
Equipment
|
|
21
|
|
|
22
|
|
|
22
|
|
Operating lease
expense
|
|
13
|
|
|
13
|
|
|
11
|
|
Marketing
|
|
12
|
|
|
17
|
|
|
8
|
|
FDIC
assessment
|
|
9
|
|
|
8
|
|
|
8
|
|
Intangible asset
amortization
|
|
8
|
|
|
9
|
|
|
9
|
|
OREO expense,
net
|
|
1
|
|
|
1
|
|
|
2
|
|
Other
expense
|
|
90
|
|
|
86
|
|
|
84
|
|
|
Total noninterest
expense
|
|
703
|
|
|
736
|
|
|
669
|
|
Income (loss) from
continuing operations before income taxes
|
|
243
|
|
|
306
|
|
|
304
|
|
Income
taxes
|
|
56
|
|
|
73
|
|
|
74
|
|
Income (loss) from
continuing operations
|
|
187
|
|
|
233
|
|
|
230
|
|
Income (loss) from
discontinued operations, net of taxes
|
|
1
|
|
|
(4)
|
|
|
5
|
|
Net income
(loss)
|
|
188
|
|
|
229
|
|
|
235
|
|
Less: Net
income (loss) attributable to noncontrolling interests
|
|
—
|
|
|
3
|
|
|
2
|
|
Net income (loss)
attributable to Key
|
$
|
188
|
|
$
|
226
|
|
$
|
233
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations attributable to Key common shareholders
|
$
|
182
|
|
$
|
224
|
|
$
|
222
|
|
Net income (loss)
attributable to Key common shareholders
|
|
183
|
|
|
220
|
|
|
227
|
|
|
|
|
|
|
|
|
|
|
|
|
Per common
share
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations attributable to Key common
shareholders
|
$
|
.22
|
|
$
|
.27
|
|
$
|
.26
|
|
Income (loss) from
discontinued operations, net of taxes
|
|
—
|
|
|
(.01)
|
|
|
.01
|
|
Net income (loss)
attributable to Key common shareholders
(b)
|
|
.22
|
|
|
.27
|
|
|
.27
|
|
|
|
|
|
|
|
|
|
|
|
|
Per common share —
assuming dilution
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations attributable to Key common
shareholders
|
$
|
.22
|
|
$
|
.27
|
|
$
|
.26
|
|
Income (loss) from
discontinued operations, net of taxes
|
|
—
|
|
|
(.01)
|
|
|
.01
|
|
Net income (loss)
attributable to Key common shareholders
(b)
|
|
.22
|
|
|
.26
|
|
|
.26
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends
declared per common share
|
$
|
.075
|
|
$
|
.075
|
|
$
|
.065
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
common shares outstanding (000)
|
|
826,447
|
|
|
828,206
|
|
|
848,580
|
|
Effect of common
share options and other stock awards
|
|
7,594
|
|
|
7,733
|
|
|
8,542
|
|
Weighted-average
common shares and potential common shares outstanding (000)
(c)
|
|
834,041
|
|
|
835,939
|
|
|
857,122
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
For the three months
ended March 31, 2016, and March 31, 2015, net securities gains
(losses) totaled less than $1 million. For the three months
ended December 31, 2015, net securities gains (losses) totaled $1
million. For the three months ended March 31, 2016, and
December 31, 2015, Key did not have any impairment losses related
to securities. For the three months ended March 31, 2015,
impaired 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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Quarter
2016
|
|
|
Fourth Quarter
2015
|
|
|
First Quarter
2015
|
|
|
|
|
|
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)
|
|
$
|
31,590
|
|
$
|
263
|
|
|
3.35
|
%
|
|
$
|
30,884
|
|
$
|
253
|
|
|
3.25
|
%
|
|
$
|
28,321
|
|
$
|
223
|
|
|
3.18
|
%
|
|
Real estate —
commercial mortgage
|
|
|
8,138
|
|
|
77
|
|
|
3.78
|
|
|
|
8,019
|
|
|
75
|
|
|
3.70
|
|
|
|
8,095
|
|
|
73
|
|
|
3.67
|
|
|
Real estate —
construction
|
|
|
1,016
|
|
|
10
|
|
|
4.11
|
|
|
|
1,067
|
|
|
10
|
|
|
3.65
|
|
|
|
1,139
|
|
|
11
|
|
|
3.90
|
|
|
Commercial lease
financing
|
|
|
3,957
|
|
|
36
|
|
|
3.65
|
|
|
|
3,910
|
|
|
36
|
|
|
3.68
|
|
|
|
4,070
|
|
|
36
|
|
|
3.57
|
|
|
|
Total commercial loans
|
|
|
44,701
|
|
|
386
|
|
|
3.47
|
|
|
|
43,880
|
|
|
374
|
|
|
3.38
|
|
|
|
41,625
|
|
|
343
|
|
|
3.33
|
|
|
Real estate —
residential mortgage
|
|
|
2,236
|
|
|
24
|
|
|
4.18
|
|
|
|
2,252
|
|
|
24
|
|
|
4.18
|
|
|
|
2,229
|
|
|
24
|
|
|
4.26
|
|
|
Home equity
loans
|
|
|
10,240
|
|
|
103
|
|
|
4.06
|
|
|
|
10,418
|
|
|
105
|
|
|
3.97
|
|
|
|
10,576
|
|
|
104
|
|
|
3.99
|
|
|
Consumer direct
loans
|
|
|
1,593
|
|
|
26
|
|
|
6.53
|
|
|
|
1,605
|
|
|
26
|
|
|
6.50
|
|
|
|
1,546
|
|
|
25
|
|
|
6.63
|
|
|
Credit
cards
|
|
|
784
|
|
|
21
|
|
|
10.72
|
|
|
|
780
|
|
|
21
|
|
|
10.66
|
|
|
|
732
|
|
|
20
|
|
|
11.01
|
|
|
Consumer indirect
loans
|
|
|
602
|
|
|
10
|
|
|
6.44
|
|
|
|
641
|
|
|
10
|
|
|
6.45
|
|
|
|
804
|
|
|
13
|
|
|
6.41
|
|
|
|
Total consumer loans
|
|
|
15,455
|
|
|
184
|
|
|
4.76
|
|
|
|
15,696
|
|
|
186
|
|
|
4.69
|
|
|
|
15,887
|
|
|
186
|
|
|
4.73
|
|
|
|
Total loans
|
|
|
60,156
|
|
|
570
|
|
|
3.80
|
|
|
|
59,576
|
|
|
560
|
|
|
3.72
|
|
|
|
57,512
|
|
|
529
|
|
|
3.72
|
|
|
Loans held for
sale
|
|
|
826
|
|
|
8
|
|
|
4.02
|
|
|
|
841
|
|
|
8
|
|
|
4.13
|
|
|
|
795
|
|
|
7
|
|
|
3.33
|
|
|
Securities available
for sale (b), (e)
|
|
|
14,207
|
|
|
75
|
|
|
2.12
|
|
|
|
14,168
|
|
|
76
|
|
|
2.13
|
|
|
|
13,087
|
|
|
70
|
|
|
2.17
|
|
|
Held-to-maturity
securities (b)
|
|
|
4,817
|
|
|
24
|
|
|
2.01
|
|
|
|
4,908
|
|
|
24
|
|
|
1.99
|
|
|
|
4,947
|
|
|
24
|
|
|
1.93
|
|
|
Trading account
assets
|
|
|
817
|
|
|
7
|
|
|
3.50
|
|
|
|
822
|
|
|
6
|
|
|
3.31
|
|
|
|
717
|
|
|
5
|
|
|
2.80
|
|
|
Short-term
investments
|
|
|
3,432
|
|
|
4
|
|
|
.46
|
|
|
|
3,483
|
|
|
3
|
|
|
.28
|
|
|
|
2,399
|
|
|
2
|
|
|
.27
|
|
|
Other investments
(e)
|
|
|
647
|
|
|
3
|
|
|
1.73
|
|
|
|
674
|
|
|
4
|
|
|
2.71
|
|
|
|
742
|
|
|
5
|
|
|
2.79
|
|
|
|
Total earning assets
|
|
|
84,902
|
|
|
691
|
|
|
3.27
|
|
|
|
84,472
|
|
|
681
|
|
|
3.21
|
|
|
|
80,199
|
|
|
642
|
|
|
3.23
|
|
|
Allowance for loan
and lease losses
|
|
|
(803)
|
|
|
|
|
|
|
|
|
|
(790)
|
|
|
|
|
|
|
|
|
|
(793)
|
|
|
|
|
|
|
|
|
Accrued income and
other assets
|
|
|
10,378
|
|
|
|
|
|
|
|
|
|
10,435
|
|
|
|
|
|
|
|
|
|
10,221
|
|
|
|
|
|
|
|
|
Discontinued
assets
|
|
|
1,804
|
|
|
|
|
|
|
|
|
|
1,947
|
|
|
|
|
|
|
|
|
|
2,271
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
96,281
|
|
|
|
|
|
|
|
|
$
|
96,064
|
|
|
|
|
|
|
|
|
$
|
91,898
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOW and money market
deposit accounts
|
|
$
|
37,708
|
|
|
15
|
|
|
.16
|
|
|
$
|
37,640
|
|
|
14
|
|
|
.15
|
|
|
$
|
34,952
|
|
|
13
|
|
|
.15
|
|
|
Savings
deposits
|
|
|
2,349
|
|
|
—
|
|
|
.02
|
|
|
|
2,338
|
|
|
—
|
|
|
.02
|
|
|
|
2,385
|
|
|
—
|
|
|
.02
|
|
|
Certificates of
deposit ($100,000 or more) (f)
|
|
|
2,761
|
|
|
10
|
|
|
1.37
|
|
|
|
2,150
|
|
|
7
|
|
|
1.31
|
|
|
|
2,017
|
|
|
7
|
|
|
1.30
|
|
|
Other time
deposits
|
|
|
3,200
|
|
|
6
|
|
|
.79
|
|
|
|
3,047
|
|
|
5
|
|
|
.72
|
|
|
|
3,217
|
|
|
6
|
|
|
.72
|
|
|
Deposits in foreign
office
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
354
|
|
|
—
|
|
|
.24
|
|
|
|
529
|
|
|
—
|
|
|
.22
|
|
|
|
Total interest-bearing deposits
|
|
|
46,018
|
|
|
31
|
|
|
.27
|
|
|
|
45,529
|
|
|
26
|
|
|
.24
|
|
|
|
43,100
|
|
|
26
|
|
|
.24
|
|
|
Federal funds
purchased and securities
sold under
repurchase agreements
|
|
|
437
|
|
|
—
|
|
|
.07
|
|
|
|
392
|
|
|
—
|
|
|
.02
|
|
|
|
720
|
|
|
—
|
|
|
.03
|
|
|
Bank notes and other
short-term borrowings
|
|
|
591
|
|
|
2
|
|
|
1.63
|
|
|
|
556
|
|
|
3
|
|
|
1.65
|
|
|
|
506
|
|
|
2
|
|
|
1.56
|
|
|
Long-term debt
(f), (g)
|
|
|
8,566
|
|
|
46
|
|
|
2.19
|
|
|
|
8,316
|
|
|
42
|
|
|
2.05
|
|
|
|
6,124
|
|
|
37
|
|
|
2.52
|
|
|
|
Total interest-bearing liabilities
|
|
|
55,612
|
|
|
79
|
|
|
.57
|
|
|
|
54,793
|
|
|
71
|
|
|
.52
|
|
|
|
50,450
|
|
|
65
|
|
|
.52
|
|
|
Noninterest-bearing
deposits
|
|
|
25,580
|
|
|
|
|
|
|
|
|
|
26,292
|
|
|
|
|
|
|
|
|
|
26,269
|
|
|
|
|
|
|
|
|
Accrued expense and
other liabilities
|
|
|
2,322
|
|
|
|
|
|
|
|
|
|
2,289
|
|
|
|
|
|
|
|
|
|
2,327
|
|
|
|
|
|
|
|
|
Discontinued
liabilities (g)
|
|
|
1,804
|
|
|
|
|
|
|
|
|
|
1,947
|
|
|
|
|
|
|
|
|
|
2,271
|
|
|
|
|
|
|
|
|
|
Total liabilities
|
|
|
85,318
|
|
|
|
|
|
|
|
|
|
85,321
|
|
|
|
|
|
|
|
|
|
81,317
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Key shareholders'
equity
|
|
|
10,953
|
|
|
|
|
|
|
|
|
|
10,731
|
|
|
|
|
|
|
|
|
|
10,570
|
|
|
|
|
|
|
|
|
Noncontrolling
interests
|
|
|
10
|
|
|
|
|
|
|
|
|
|
12
|
|
|
|
|
|
|
|
|
|
11
|
|
|
|
|
|
|
|
|
|
Total equity
|
|
|
10,963
|
|
|
|
|
|
|
|
|
|
10,743
|
|
|
|
|
|
|
|
|
|
10,581
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and equity
|
|
$
|
96,281
|
|
|
|
|
|
|
|
|
$
|
96,064
|
|
|
|
|
|
|
|
|
$
|
91,898
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate spread
(TE)
|
|
|
|
|
|
|
|
|
2.70
|
%
|
|
|
|
|
|
|
|
|
2.69
|
%
|
|
|
|
|
|
|
|
|
2.71
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
(TE) and net interest margin (TE)
|
|
|
|
|
|
612
|
|
|
2.89
|
%
|
|
|
|
|
|
610
|
|
|
2.87
|
%
|
|
|
|
|
|
577
|
|
|
2.91
|
%
|
|
TE adjustment
(b)
|
|
|
|
|
|
8
|
|
|
|
|
|
|
|
|
|
8
|
|
|
|
|
|
|
|
|
|
6
|
|
|
|
|
|
Net interest income,
GAAP basis
|
|
|
|
|
$
|
604
|
|
|
|
|
|
|
|
|
$
|
602
|
|
|
|
|
|
|
|
|
$
|
571
|
|
|
|
|
|
|
|
|
|
(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 $85 million, $87 million,
and $87 million of assets from commercial credit cards for the
three months ended March 31, 2016, December 31, 2015, and March 31,
2015, 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 Key's 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
|
|
3-31-16
|
|
12-31-15
|
|
3-31-15
|
|
Personnel
(a)
|
$
|
404
|
|
$
|
429
|
|
$
|
389
|
|
Net
occupancy
|
|
61
|
|
|
64
|
|
|
65
|
|
Computer
processing
|
|
43
|
|
|
43
|
|
|
38
|
|
Business services and
professional fees
|
|
41
|
|
|
44
|
|
|
33
|
|
Equipment
|
|
21
|
|
|
22
|
|
|
22
|
|
Operating lease
expense
|
|
13
|
|
|
13
|
|
|
11
|
|
Marketing
|
|
12
|
|
|
17
|
|
|
8
|
|
FDIC
assessment
|
|
9
|
|
|
8
|
|
|
8
|
|
Intangible asset
amortization
|
|
8
|
|
|
9
|
|
|
9
|
|
OREO expense,
net
|
|
1
|
|
|
1
|
|
|
2
|
|
Other
expense
|
|
90
|
|
|
86
|
|
|
84
|
|
Total noninterest
expense
|
$
|
703
|
|
$
|
736
|
|
$
|
669
|
|
|
|
|
|
|
|
|
|
|
Merger-related
expense
|
|
24
|
|
|
6
|
|
|
—
|
|
Total noninterest expense
excluding merger-related expense (b)
|
$
|
679
|
|
$
|
730
|
|
$
|
669
|
|
|
|
|
|
|
|
|
|
|
Average full-time
equivalent employees (c)
|
|
13,403
|
|
|
13,359
|
|
|
13,591
|
|
|
|
|
|
|
|
|
|
|
(a) Additional
detail provided in table below.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(b) Non-GAAP
measure. See the table entitled "GAAP to Non-GAAP
Reconciliations" in this financial supplement.
|
|
|
|
|
|
|
|
|
|
|
(c) The number
of average full-time equivalent employees has not been adjusted for
discontinued operations.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Personnel
Expense
|
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
3-31-16
|
|
12-31-15
|
|
3-31-15
|
|
Salaries and contract
labor
|
$
|
244
|
|
$
|
244
|
|
$
|
228
|
|
Incentive and
stock-based compensation
|
|
89
|
|
|
115
|
|
|
83
|
|
Employee
benefits
|
|
68
|
|
|
64
|
|
|
72
|
|
Severance
|
|
3
|
|
|
6
|
|
|
6
|
|
Total personnel
expense
|
$
|
404
|
|
$
|
429
|
|
$
|
389
|
|
Loan
Composition
|
|
|
(dollars in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percent change
3-31-16 vs.
|
|
|
|
|
|
3-31-16
|
|
12-31-15
|
|
3-31-15
|
|
12-31-15
|
|
3-31-15
|
|
|
Commercial, financial
and agricultural (a)
|
$
|
31,976
|
|
$
|
31,240
|
|
$
|
28,783
|
|
|
2.4
|
%
|
|
11.1
|
%
|
|
Commercial real
estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
mortgage
|
|
8,364
|
|
|
7,959
|
|
|
8,162
|
|
|
5.1
|
|
|
2.5
|
|
|
Construction
|
|
841
|
|
|
1,053
|
|
|
1,142
|
|
|
(20.1)
|
|
|
(26.4)
|
|
|
Total commercial real estate
loans
|
|
9,205
|
|
|
9,012
|
|
|
9,304
|
|
|
2.1
|
|
|
(1.1)
|
|
|
Commercial lease
financing (b)
|
|
3,934
|
|
|
4,020
|
|
|
4,064
|
|
|
(2.1)
|
|
|
(3.2)
|
|
|
Total commercial
loans
|
|
45,115
|
|
|
44,272
|
|
|
42,151
|
|
|
1.9
|
|
|
7.0
|
|
|
Residential — prime
loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate —
residential mortgage
|
|
2,234
|
|
|
2,242
|
|
|
2,231
|
|
|
(.4)
|
|
|
.1
|
|
|
Home equity
loans
|
|
10,149
|
|
|
10,335
|
|
|
10,523
|
|
|
(1.8)
|
|
|
(3.6)
|
|
|
Total residential —
prime loans
|
|
12,383
|
|
|
12,577
|
|
|
12,754
|
|
|
(1.5)
|
|
|
(2.9)
|
|
|
Consumer direct
loans
|
|
1,579
|
|
|
1,600
|
|
|
1,547
|
|
|
(1.3)
|
|
|
2.1
|
|
|
Credit
cards
|
|
782
|
|
|
806
|
|
|
727
|
|
|
(3.0)
|
|
|
7.6
|
|
|
Consumer indirect
loans
|
|
579
|
|
|
621
|
|
|
774
|
|
|
(6.8)
|
|
|
(25.2)
|
|
|
Total consumer
loans
|
|
15,323
|
|
|
15,604
|
|
|
15,802
|
|
|
(1.8)
|
|
|
(3.0)
|
|
|
Total loans (c),
(d)
|
$
|
60,438
|
|
$
|
59,876
|
|
$
|
57,953
|
|
|
.9
|
%
|
|
4.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans Held for
Sale Composition
|
|
|
(dollars in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percent change
3-31-16 vs.
|
|
|
|
|
|
3-31-16
|
|
12-31-15
|
|
3-31-15
|
|
12-31-15
|
|
3-31-15
|
|
|
Commercial, financial
and agricultural
|
$
|
103
|
|
$
|
76
|
|
$
|
183
|
|
|
35.5
|
%
|
|
(43.7)
|
%
|
|
Real estate —
commercial mortgage
|
|
562
|
|
|
532
|
|
|
1,408
|
|
|
5.6
|
|
|
(60.1)
|
|
|
Commercial lease
financing
|
|
19
|
|
|
14
|
|
|
14
|
|
|
35.7
|
|
|
35.7
|
|
|
Real estate —
residential mortgage
|
|
—
|
|
|
17
|
|
|
44
|
|
|
N/M
|
|
|
N/M
|
|
|
Total loans held for
sale (e)
|
$
|
684
|
|
$
|
639
|
|
$
|
1,649
|
|
|
7.0
|
%
|
|
(58.5)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Summary of Changes
in Loans Held for Sale
|
|
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1Q16
|
|
4Q15
|
|
3Q15
|
|
2Q15
|
|
1Q15
|
|
|
Balance at beginning
of period
|
$
|
639
|
|
$
|
916
|
|
$
|
835
|
|
$
|
1,649
|
|
$
|
734
|
|
|
New
originations
|
|
1,114
|
|
|
1,655
|
|
|
1,673
|
|
|
1,650
|
|
|
2,130
|
|
|
Transfers from (to)
held to maturity, net
|
|
—
|
|
|
22
|
|
|
24
|
|
|
6
|
|
|
10
|
|
|
Loan sales
|
|
(1,108)
|
|
|
(1,943)
|
|
|
(1,616)
|
|
|
(2,466)
|
|
|
(1,204)
|
|
|
Loan draws
(payments), net
|
|
39
|
|
|
(11)
|
|
|
—
|
|
|
(4)
|
|
|
(21)
|
|
|
Balance at end of
period (e)
|
$
|
684
|
|
$
|
639
|
|
$
|
916
|
|
$
|
835
|
|
$
|
1,649
|
|
|
|
|
|
|
(a)
|
Loan balances include
$85 million, $85 million, and $87 million of commercial credit card
balances at March 31, 2016, December 31, 2015, and March 31, 2015,
respectively.
|
|
|
|
(b)
|
Commercial lease
financing includes receivables held as collateral for a secured
borrowing of $115 million, $134 million, and $230 million at March
31, 2016, December 31, 2015, and March 31, 2015, respectively.
Principal reductions are based on the cash payments received from
these related receivables.
|
|
|
|
(c)
|
At March 31, 2016,
total loans include purchased loans of $109 million, of which $11
million were purchased credit impaired. At December 31, 2015, total
loans include purchased loans of $114 million, of which $11 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.
|
|
|
|
(d)
|
Total loans exclude
loans of $1.8 billion at March 31, 2016, and at December 31, 2015,
and $2.2 billion at March 31, 2015, related to the discontinued
operations of the education lending business.
|
|
|
|
(e)
|
Total loans held for
sale exclude loans held for sale of $169 million at September 30,
2015, and $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
|
|
3-31-16
vs.
|
|
Charge-offs
|
|
Nonperforming
Status
|
|
3-31-16
|
|
12-31-15
|
|
12-31-15
|
|
1Q16
|
|
|
4Q15
|
|
3-31-16
|
|
12-31-15
|
|
Residential
properties — homebuilder
|
|
—
|
|
$
|
6
|
|
$
|
(6)
|
|
|
—
|
|
|
|
—
|
|
$
|
3
|
|
$
|
8
|
|
Marine and RV floor
plan
|
|
—
|
|
|
1
|
|
|
(1)
|
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Commercial lease
financing (a)
|
$
|
743
|
|
|
765
|
|
|
(22)
|
|
$
|
1
|
|
|
|
—
|
|
|
—
|
|
|
1
|
|
Total commercial
loans
|
|
743
|
|
|
772
|
|
|
(29)
|
|
|
1
|
|
|
|
—
|
|
|
3
|
|
|
9
|
|
Home equity —
Other
|
|
195
|
|
|
208
|
|
|
(13)
|
|
|
1
|
|
|
$
|
2
|
|
|
7
|
|
|
8
|
|
Marine
|
|
544
|
|
|
583
|
|
|
(39)
|
|
|
2
|
|
|
|
1
|
|
|
4
|
|
|
6
|
|
RV and other
consumer
|
|
39
|
|
|
41
|
|
|
(2)
|
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Total consumer
loans
|
|
778
|
|
|
832
|
|
|
(54)
|
|
|
3
|
|
|
|
3
|
|
|
11
|
|
|
14
|
|
Total exit loans in loan
portfolio
|
$
|
1,521
|
|
$
|
1,604
|
|
$
|
(83)
|
|
$
|
4
|
|
|
$
|
3
|
|
$
|
14
|
|
$
|
23
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued
operations — education
lending
business (not included in exit loans above)
|
$
|
1,760
|
|
$
|
1,828
|
|
$
|
(68)
|
|
$
|
6
|
|
|
$
|
7
|
|
$
|
6
|
|
$
|
7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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.
|
|
Asset Quality
Statistics From Continuing Operations
|
|
|
(dollars in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1Q16
|
|
|
4Q15
|
|
|
3Q15
|
|
|
2Q15
|
|
|
1Q15
|
|
|
Net loan
charge-offs
|
$
|
46
|
|
$
|
37
|
|
$
|
41
|
|
$
|
36
|
|
$
|
28
|
|
|
Net loan charge-offs
to average total loans
|
|
.31
|
%
|
|
.25
|
%
|
|
.27
|
%
|
|
.25
|
%
|
|
.20
|
%
|
|
Allowance for loan
and lease losses
|
$
|
826
|
|
$
|
796
|
|
$
|
790
|
|
$
|
796
|
|
$
|
794
|
|
|
Allowance for credit
losses (a)
|
|
895
|
|
|
852
|
|
|
844
|
|
|
841
|
|
|
835
|
|
|
Allowance for loan
and lease losses to period-end loans
|
|
1.37
|
%
|
|
1.33
|
%
|
|
1.31
|
%
|
|
1.37
|
%
|
|
1.37
|
%
|
|
Allowance for credit
losses to period-end loans
|
|
1.48
|
|
|
1.42
|
|
|
1.40
|
|
|
1.44
|
|
|
1.44
|
|
|
Allowance for loan
and lease losses to nonperforming loans
|
|
122.2
|
|
|
205.7
|
|
|
197.5
|
|
|
190.0
|
|
|
181.7
|
|
|
Allowance for credit
losses to nonperforming loans
|
|
132.4
|
|
|
220.2
|
|
|
211.0
|
|
|
200.7
|
|
|
191.1
|
|
|
Nonperforming loans
at period end (b)
|
$
|
676
|
|
$
|
387
|
|
$
|
400
|
|
$
|
419
|
|
$
|
437
|
|
|
Nonperforming assets
at period end
|
|
692
|
|
|
403
|
|
|
417
|
|
|
440
|
|
|
457
|
|
|
Nonperforming loans
to period-end portfolio loans
|
|
1.12
|
%
|
|
.65
|
%
|
|
.67
|
%
|
|
.72
|
%
|
|
.75
|
%
|
|
Nonperforming assets
to period-end portfolio loans plus
OREO and other
nonperforming assets
|
|
1.14
|
|
|
.67
|
|
|
.69
|
|
|
.75
|
|
|
.79
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Includes the
allowance for loan and lease losses plus the liability for credit
losses on lending-related unfunded commitments.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(b)
|
Loan balances exclude
$11 million, $11 million, $12 million, $12 million, and $12 million
of purchased credit impaired loans at March 31, 2016, December
31, 2015, September 30, 2015, June 30, 2015, and March 31, 2015,
respectively.
|
|
Summary of Loan
and Lease Loss Experience From Continuing
Operations
|
|
(dollars in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
3-31-16
|
|
12-31-15
|
|
3-31-15
|
|
|
Average loans
outstanding
|
$
|
60,156
|
|
$
|
59,576
|
|
$
|
57,512
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan
and lease losses at beginning of period
|
$
|
796
|
|
$
|
790
|
|
$
|
794
|
|
|
Loans charged
off:
|
|
|
|
|
|
|
|
|
|
|
Commercial, financial and
agricultural
|
|
26
|
|
|
18
|
|
|
12
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate — commercial
mortgage
|
|
1
|
|
|
2
|
|
|
2
|
|
|
Real estate —
construction
|
|
—
|
|
|
—
|
|
|
1
|
|
|
Total commercial real estate loans
|
|
1
|
|
|
2
|
|
|
3
|
|
|
Commercial lease
financing
|
|
3
|
|
|
6
|
|
|
2
|
|
|
Total commercial loans
|
|
30
|
|
|
26
|
|
|
17
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate — residential
mortgage
|
|
2
|
|
|
2
|
|
|
2
|
|
|
Home equity loans
|
|
10
|
|
|
7
|
|
|
8
|
|
|
Consumer direct
loans
|
|
6
|
|
|
6
|
|
|
6
|
|
|
Credit cards
|
|
8
|
|
|
7
|
|
|
8
|
|
|
Consumer indirect
loans
|
|
4
|
|
|
3
|
|
|
6
|
|
|
Total consumer loans
|
|
30
|
|
|
25
|
|
|
30
|
|
|
Total loans charged off
|
|
60
|
|
|
51
|
|
|
47
|
|
|
Recoveries:
|
|
|
|
|
|
|
|
|
|
|
Commercial, financial and
agricultural
|
|
3
|
|
|
3
|
|
|
5
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate — commercial
mortgage
|
|
2
|
|
|
4
|
|
|
2
|
|
|
Real estate —
construction
|
|
1
|
|
|
—
|
|
|
—
|
|
|
Total commercial real estate loans
|
|
3
|
|
|
4
|
|
|
2
|
|
|
Commercial lease financing
|
|
—
|
|
|
—
|
|
|
4
|
|
|
Total commercial loans
|
|
6
|
|
|
7
|
|
|
11
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate — residential
mortgage
|
|
2
|
|
|
2
|
|
|
—
|
|
|
Home equity loans
|
|
3
|
|
|
2
|
|
|
3
|
|
|
Consumer direct
loans
|
|
1
|
|
|
1
|
|
|
2
|
|
|
Credit cards
|
|
1
|
|
|
—
|
|
|
—
|
|
|
Consumer indirect
loans
|
|
1
|
|
|
2
|
|
|
3
|
|
|
Total consumer loans
|
|
8
|
|
|
7
|
|
|
8
|
|
|
Total recoveries
|
|
14
|
|
|
14
|
|
|
19
|
|
|
Net loan
charge-offs
|
|
(46)
|
|
|
(37)
|
|
|
(28)
|
|
|
Provision (credit)
for loan and lease losses
|
|
76
|
|
|
43
|
|
|
29
|
|
|
Foreign currency
translation adjustment
|
|
—
|
|
|
—
|
|
|
(1)
|
|
|
Allowance for loan
and lease losses at end of period
|
$
|
826
|
|
$
|
796
|
|
$
|
794
|
|
|
|
|
|
|
|
|
|
|
|
|
Liability for credit
losses on lending-related commitments at beginning of
period
|
$
|
56
|
|
$
|
54
|
|
$
|
35
|
|
|
Provision (credit)
for losses on lending-related commitments
|
|
13
|
|
|
2
|
|
|
6
|
|
|
Liability for credit
losses on lending-related commitments at end of period
(a)
|
$
|
69
|
|
$
|
56
|
|
$
|
41
|
|
|
|
|
|
|
|
|
|
|
|
|
Total allowance for
credit losses at end of period
|
$
|
895
|
|
$
|
852
|
|
$
|
835
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loan charge-offs
to average total loans
|
|
.31
|
%
|
|
.25
|
%
|
|
.20
|
%
|
|
Allowance for loan
and lease losses to period-end loans
|
|
1.37
|
|
|
1.33
|
|
|
1.37
|
|
|
Allowance for credit
losses to period-end loans
|
|
1.48
|
|
|
1.42
|
|
|
1.44
|
|
|
Allowance for loan
and lease losses to nonperforming loans
|
|
122.2
|
|
|
205.7
|
|
|
181.7
|
|
|
Allowance for credit
losses to nonperforming loans
|
|
132.4
|
|
|
220.2
|
|
|
191.1
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued
operations — education lending business:
|
|
|
|
|
|
|
|
|
|
|
Loans charged off
|
$
|
9
|
|
$
|
10
|
|
$
|
10
|
|
|
Recoveries
|
|
3
|
|
|
3
|
|
|
4
|
|
|
Net loan
charge-offs
|
$
|
(6)
|
|
$
|
(7)
|
|
$
|
(6)
|
|
|
|
|
|
|
|
|
|
|
|
|
(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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3-31-16
|
|
12-31-15
|
|
9-30-15
|
|
6-30-15
|
|
3-31-15
|
|
|
Commercial, financial
and agricultural
|
$
|
380
|
|
$
|
82
|
|
$
|
89
|
|
$
|
100
|
|
$
|
98
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate —
commercial mortgage
|
|
16
|
|
|
19
|
|
|
23
|
|
|
26
|
|
|
30
|
|
|
Real estate —
construction
|
|
12
|
|
|
9
|
|
|
9
|
|
|
12
|
|
|
12
|
|
|
Total commercial real estate loans
|
|
28
|
|
|
28
|
|
|
32
|
|
|
38
|
|
|
42
|
|
|
Commercial lease
financing
|
|
11
|
|
|
13
|
|
|
21
|
|
|
18
|
|
|
20
|
|
|
Total commercial loans
|
|
419
|
|
|
123
|
|
|
142
|
|
|
156
|
|
|
160
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate —
residential mortgage
|
|
59
|
|
|
64
|
|
|
67
|
|
|
67
|
|
|
72
|
|
|
Home equity
loans
|
|
191
|
|
|
190
|
|
|
181
|
|
|
184
|
|
|
191
|
|
|
Consumer direct
loans
|
|
1
|
|
|
2
|
|
|
1
|
|
|
1
|
|
|
2
|
|
|
Credit
cards
|
|
2
|
|
|
2
|
|
|
2
|
|
|
2
|
|
|
2
|
|
|
Consumer indirect
loans
|
|
4
|
|
|
6
|
|
|
7
|
|
|
9
|
|
|
10
|
|
|
Total consumer loans
|
|
257
|
|
|
264
|
|
|
258
|
|
|
263
|
|
|
277
|
|
|
Total nonperforming loans (a)
|
|
676
|
|
|
387
|
|
|
400
|
|
|
419
|
|
|
437
|
|
|
OREO
|
|
14
|
|
|
14
|
|
|
17
|
|
|
20
|
|
|
20
|
|
|
Other nonperforming
assets
|
|
2
|
|
|
2
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
Total nonperforming
assets
|
$
|
692
|
|
$
|
403
|
|
$
|
417
|
|
$
|
440
|
|
$
|
457
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accruing loans past
due 90 days or more
|
$
|
70
|
|
$
|
72
|
|
$
|
54
|
|
$
|
66
|
|
$
|
111
|
|
|
Accruing loans past
due 30 through 89 days
|
|
237
|
|
|
208
|
|
|
271
|
|
|
181
|
|
|
216
|
|
|
Restructured loans —
accruing and nonaccruing (b)
|
|
283
|
|
|
280
|
|
|
287
|
|
|
300
|
|
|
268
|
|
|
Restructured loans
included in nonperforming loans (b)
|
|
151
|
|
|
159
|
|
|
160
|
|
|
170
|
|
|
141
|
|
|
Nonperforming assets
from discontinued operations —
education lending
business
|
|
6
|
|
|
7
|
|
|
8
|
|
|
6
|
|
|
8
|
|
|
Nonperforming loans
to period-end portfolio loans
|
|
1.12
|
%
|
|
.65
|
%
|
|
.67
|
%
|
|
.72
|
%
|
|
.75
|
%
|
|
Nonperforming assets
to period-end portfolio loans
plus OREO and other
nonperforming assets
|
|
1.14
|
|
|
.67
|
|
|
.69
|
|
|
.75
|
|
|
.79
|
|
|
|
|
|
|
(a)
|
Loan balances exclude
$11 million, $11 million, $12 million, $12 million, and $12 million
of purchased credit impaired loans at March 31, 2016, December 31,
2015, September 30, 2015, June 30, 2015, and March 31, 2015,
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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1Q16
|
|
4Q15
|
|
3Q15
|
|
2Q15
|
|
1Q15
|
|
Balance at beginning
of period
|
|
$
|
387
|
|
$
|
400
|
|
$
|
419
|
|
$
|
437
|
|
$
|
418
|
|
Loans placed on nonaccrual
status
|
|
|
406
|
|
|
81
|
|
|
81
|
|
|
92
|
|
|
123
|
|
Charge-offs
|
|
|
(60)
|
|
|
(51)
|
|
|
(53)
|
|
|
(52)
|
|
|
(47)
|
|
Loans sold
|
|
|
(11)
|
|
|
—
|
|
|
(2)
|
|
|
—
|
|
|
—
|
|
Payments
|
|
|
(8)
|
|
|
(21)
|
|
|
(16)
|
|
|
(25)
|
|
|
(9)
|
|
Transfers to OREO
|
|
|
(4)
|
|
|
(4)
|
|
|
(4)
|
|
|
(5)
|
|
|
(7)
|
|
Transfers to other
nonperforming assets
|
|
|
—
|
|
|
(1)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Loans returned to accrual
status
|
|
|
(34)
|
|
|
(17)
|
|
|
(25)
|
|
|
(28)
|
|
|
(41)
|
|
Balance at end of
period (a)
|
|
$
|
676
|
|
$
|
387
|
|
$
|
400
|
|
$
|
419
|
|
$
|
437
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Loan
balances exclude $11 million, $11 million, $12 million, $12
million, and $12 million of purchased credit impaired loans at
March 31, 2016, December 31, 2015,
|
|
September
30, 2015, June 30, 2015, and March 31, 2015,
respectively.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Summary of Changes
in Other Real Estate Owned, Net of Allowance, From Continuing
Operations
|
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1Q16
|
|
4Q15
|
|
3Q15
|
|
2Q15
|
|
1Q15
|
|
Balance at beginning
of period
|
|
$
|
14
|
|
$
|
17
|
|
$
|
20
|
|
$
|
20
|
|
$
|
18
|
|
Properties acquired —
nonperforming loans
|
|
|
4
|
|
|
4
|
|
|
4
|
|
|
5
|
|
|
7
|
|
Valuation
adjustments
|
|
|
(1)
|
|
|
(2)
|
|
|
(2)
|
|
|
(1)
|
|
|
(1)
|
|
Properties sold
|
|
|
(3)
|
|
|
(5)
|
|
|
(5)
|
|
|
(4)
|
|
|
(4)
|
|
Balance at end of
period
|
|
$
|
14
|
|
$
|
14
|
|
$
|
17
|
|
$
|
20
|
|
$
|
20
|
|
Line of Business
Results
|
|
|
(dollars in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percent change
1Q16 vs.
|
|
|
|
1Q16
|
|
4Q15
|
|
3Q15
|
|
2Q15
|
|
1Q15
|
|
4Q15
|
|
1Q15
|
|
|
Key Community
Bank
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Summary of
operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue
(TE)
|
|
$
|
595
|
|
$
|
588
|
|
$
|
579
|
|
$
|
560
|
|
$
|
549
|
|
|
1.2
|
%
|
|
8.4
|
%
|
|
Provision for credit
losses
|
|
|
42
|
|
|
20
|
|
|
18
|
|
|
3
|
|
|
30
|
|
|
110.0
|
|
|
40.0
|
|
|
Noninterest
expense
|
|
|
436
|
|
|
456
|
|
|
444
|
|
|
447
|
|
|
438
|
|
|
(4.4)
|
|
|
(.5)
|
|
|
Net income (loss)
attributable to Key
|
|
|
74
|
|
|
70
|
|
|
74
|
|
|
69
|
|
|
51
|
|
|
5.7
|
|
|
45.1
|
|
|
Average loans and
leases
|
|
|
30,789
|
|
|
30,925
|
|
|
31,039
|
|
|
30,707
|
|
|
30,662
|
|
|
(.4)
|
|
|
.4
|
|
|
Average deposits
|
|
|
52,803
|
|
|
52,219
|
|
|
51,234
|
|
|
50,765
|
|
|
50,415
|
|
|
1.1
|
|
|
4.7
|
|
|
Net loan
charge-offs
|
|
|
23
|
|
|
23
|
|
|
21
|
|
|
20
|
|
|
28
|
|
|
—
|
|
|
(17.9)
|
|
|
Net loan charge-offs to
average total loans
|
|
|
.30
|
%
|
|
.30
|
%
|
|
.27
|
%
|
|
.26
|
%
|
|
.37
|
%
|
|
N/A
|
|
|
N/A
|
|
|
Nonperforming assets at
period end
|
|
$
|
303
|
|
$
|
303
|
|
$
|
306
|
|
$
|
305
|
|
$
|
328
|
|
|
—
|
|
|
(7.6)
|
|
|
Return on average allocated
equity
|
|
|
11.09
|
%
|
|
10.39
|
%
|
|
10.92
|
%
|
|
10.34
|
%
|
|
7.56
|
%
|
|
N/A
|
|
|
N/A
|
|
|
Average full-time equivalent
employees
|
|
|
7,376
|
|
|
7,390
|
|
|
7,476
|
|
|
7,574
|
|
|
7,642
|
|
|
(.2)
|
|
|
(3.5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Key Corporate
Bank
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Summary of
operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue
(TE)
|
|
$
|
426
|
|
$
|
479
|
|
$
|
454
|
|
$
|
478
|
|
$
|
402
|
|
|
(11.1)
|
%
|
|
6.0
|
%
|
|
Provision for credit
losses
|
|
|
43
|
|
|
26
|
|
|
30
|
|
|
41
|
|
|
6
|
|
|
65.4
|
|
|
616.7
|
|
|
Noninterest
expense
|
|
|
237
|
|
|
257
|
|
|
250
|
|
|
256
|
|
|
219
|
|
|
(7.8)
|
|
|
8.2
|
|
|
Net income (loss)
attributable to Key
|
|
|
118
|
|
|
142
|
|
|
136
|
|
|
131
|
|
|
127
|
|
|
(16.9)
|
|
|
(7.1)
|
|
|
Average loans and leases
|
|
|
27,722
|
|
|
26,981
|
|
|
26,425
|
|
|
25,298
|
|
|
24,722
|
|
|
2.7
|
|
|
12.1
|
|
|
Average loans held for sale
|
|
|
811
|
|
|
820
|
|
|
918
|
|
|
1,234
|
|
|
775
|
|
|
(1.1)
|
|
|
4.6
|
|
|
Average
deposits
|
|
|
18,074
|
|
|
19,080
|
|
|
18,809
|
|
|
19,709
|
|
|
18,569
|
|
|
(5.3)
|
|
|
(2.7)
|
|
|
Net loan
charge-offs
|
|
|
18
|
|
|
12
|
|
|
20
|
|
|
12
|
|
|
(4)
|
|
|
50.0
|
|
|
N/M
|
|
|
Net loan charge-offs to
average total loans
|
|
|
.26
|
%
|
|
.18
|
%
|
|
.30
|
%
|
|
.19
|
%
|
|
(.07)
|
%
|
|
N/A
|
|
|
N/A
|
|
|
Nonperforming assets at
period end
|
|
$
|
372
|
|
$
|
74
|
|
$
|
85
|
|
$
|
105
|
|
$
|
93
|
|
|
402.7
|
|
|
300.0
|
|
|
Return on average allocated
equity
|
|
|
23.15
|
%
|
|
29.05
|
%
|
|
28.29
|
%
|
|
29.24
|
%
|
|
27.68
|
%
|
|
N/A
|
|
|
N/A
|
|
|
Average full-time equivalent
employees
|
|
|
2,126
|
|
|
2,113
|
|
|
2,173
|
|
|
2,058
|
|
|
2,057
|
|
|
.6
|
|
|
3.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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-first-quarter-2016-net-income-of-182-million-or-22-per-common-share-earnings-per-common-share-of-24-excluding-02-of-merger-related-expense-300255269.html
SOURCE KeyCorp