Consolidated Balance Sheets
(dollars in millions)
| 6-30-11 | 3-31-11 | 6-30-10 | ||||||||||
Assets | ||||||||||||
Loans | $ | 47,840 | $ | 48,552 | $ | 53,334 | ||||||
Loans held for sale | 381 | 426 | 699 | |||||||||
Securities available for sale | 18,680 | 19,448 | 19,773 | |||||||||
Held-to-maturity securities | 19 | 19 | 19 | |||||||||
Trading account assets | 769 | 1,041 | 1,014 | |||||||||
Short-term investments | 4,563 | 3,705 | 1,984 | |||||||||
Other investments | 1,195 | 1,402 | 1,415 | |||||||||
Total earning assets | 73,447 | 74,593 | 78,238 | |||||||||
Allowance for loan and lease losses | (1,230 | ) | (1,372 | ) | (2,219 | ) | ||||||
Cash and due from banks | 853 | 540 | 591 | |||||||||
Premises and equipment | 919 | 906 | 872 | |||||||||
Operating lease assets | 453 | 491 | 589 | |||||||||
Goodwill | 917 | 917 | 917 | |||||||||
Other intangible assets | 19 | 20 | 42 | |||||||||
Corporate-owned life insurance | 3,208 | 3,187 | 3,109 | |||||||||
Derivative assets | 900 | 1,005 | 1,153 | |||||||||
Accrued income and other assets | 2,968 | 3,758 | 4,061 | |||||||||
Discontinued assets | 6,328 | 6,393 | 6,814 | |||||||||
Total assets | $ | 88,782 | $ | 90,438 | $ | 94,167 | ||||||
Liabilities | ||||||||||||
Deposits in domestic offices: | ||||||||||||
NOW and money market deposit accounts | $ | 26,277 | $ | 26,177 | $ | 25,526 | ||||||
Savings deposits | 1,973 | 1,964 | 1,883 | |||||||||
Certificates of deposit ($100,000 or more) | 4,939 | 5,314 | 8,476 | |||||||||
Other time deposits | 7,167 | 7,597 | 10,430 | |||||||||
Total interest-bearing deposits | 40,356 | 41,052 | 46,315 | |||||||||
Noninterest-bearing deposits | 19,318 | 16,495 | 15,226 | |||||||||
Deposits in foreign office — interest-bearing | 736 | 3,263 | 834 | |||||||||
Total deposits | 60,410 | 60,810 | 62,375 | |||||||||
Federal funds purchased and securities sold under repurchase agreements | 1,668 | 2,232 | 2,836 | |||||||||
Bank notes and other short-term borrowings | 511 | 685 | 819 | |||||||||
Derivative liabilities | 991 | 1,106 | 1,321 | |||||||||
Accrued expense and other liabilities | 1,518 | 1,931 | 2,154 | |||||||||
Long-term debt | 10,997 | 11,048 | 10,451 | |||||||||
Discontinued liabilities | 2,950 | 2,929 | 3,139 | |||||||||
Total liabilities | 79,045 | 80,741 | 83,095 | |||||||||
Equity | ||||||||||||
Preferred stock, Series A | 291 | 291 | 291 | |||||||||
Preferred stock, Series B | — | — | 2,438 | |||||||||
Common shares | 1,017 | 1,017 | 946 | |||||||||
Common stock warrant | — | 87 | 87 | |||||||||
Capital surplus | 4,191 | 4,167 | 3,701 | |||||||||
Retained earnings | 5,926 | 5,721 | 5,118 | |||||||||
Treasury stock, at cost | (1,815 | ) | (1,823 | ) | (1,914 | ) | ||||||
Accumulated other comprehensive income (loss) | 109 | (35 | ) | 153 | ||||||||
Key shareholders’ equity | 9,719 | 9,425 | 10,820 | |||||||||
Noncontrolling interests | 18 | 272 | 252 | |||||||||
Total equity | 9,737 | 9,697 | 11,072 | |||||||||
Total liabilities and equity | $ | 88,782 | $ | 90,438 | $ | 94,167 | ||||||
Common shares outstanding (000) | 953,822 | 953,926 | 880,515 | |||||||||
Consolidated Statements of Income
(dollars in millions, except per share amounts)
| Three months ended | Six months ended | |||||||||||||||||||
| 6-30-11 | 3-31-11 | 6-30-10 | 6-30-11 | 6-30-10 | ||||||||||||||||
Interest income | ||||||||||||||||||||
Loans | $ | 551 | $ | 570 | $ | 677 | $ | 1,121 | $ | 1,387 | ||||||||||
Loans held for sale | 3 | 4 | 5 | 7 | 9 | |||||||||||||||
Securities available for sale | 149 | 166 | 154 | 315 | 304 | |||||||||||||||
Held-to-maturity securities | 1 | — | — | 1 | 1 | |||||||||||||||
Trading account assets | 9 | 7 | 10 | 16 | 21 | |||||||||||||||
Short-term investments | 1 | 1 | 2 | 2 | 4 | |||||||||||||||
Other investments | 12 | 12 | 13 | 24 | 27 | |||||||||||||||
Total interest income | 726 | 760 | 861 | 1,486 | 1,753 | |||||||||||||||
Interest expense | ||||||||||||||||||||
Deposits | 100 | 110 | 188 | 210 | 400 | |||||||||||||||
Federal funds purchased and securities sold under repurchase agreements | 2 | 1 | 2 | 3 | 3 | |||||||||||||||
Bank notes and other short-term borrowings | 3 | 3 | 4 | 6 | 7 | |||||||||||||||
Long-term debt | 57 | 49 | 50 | 106 | 101 | |||||||||||||||
Total interest expense | 162 | 163 | 244 | 325 | 511 | |||||||||||||||
Net interest income | 564 | 597 | 617 | 1,161 | 1,242 | |||||||||||||||
Provision (credit) for loan and lease losses | (8 | ) | (40 | ) | 228 | (48 | ) | 641 | ||||||||||||
Net interest income (expense) after provision for loan and lease losses | 572 | 637 | 389 | 1,209 | 601 | |||||||||||||||
Noninterest income | ||||||||||||||||||||
Trust and investment services income | 113 | 110 | 112 | 223 | 226 | |||||||||||||||
Service charges on deposit accounts | 69 | 68 | 80 | 137 | 156 | |||||||||||||||
Operating lease income | 32 | 35 | 43 | 67 | 90 | |||||||||||||||
Letter of credit and loan fees | 47 | 55 | 42 | 102 | 82 | |||||||||||||||
Corporate-owned life insurance income | 28 | 27 | 28 | 55 | 56 | |||||||||||||||
Net securities gains (losses)(a) | 2 | (1 | ) | (2 | ) | 1 | 1 | |||||||||||||
Electronic banking fees | 33 | 30 | 29 | 63 | 56 | |||||||||||||||
Gains on leased equipment | 5 | 4 | 2 | 9 | 10 | |||||||||||||||
Insurance income | 14 | 15 | 19 | 29 | 37 | |||||||||||||||
Net gains (losses) from loan sales | 11 | 19 | 25 | 30 | 29 | |||||||||||||||
Net gains (losses) from principal investing | 17 | 35 | 17 | 52 | 54 | |||||||||||||||
Investment banking and capital markets income (loss) | 42 | 43 | 31 | 85 | 40 | |||||||||||||||
Other income | 41 | 17 | 66 | 58 | 105 | |||||||||||||||
Total noninterest income | 454 | 457 | 492 | 911 | 942 | |||||||||||||||
Noninterest expense | ||||||||||||||||||||
Personnel | 380 | 371 | 385 | 751 | 747 | |||||||||||||||
Net occupancy | 62 | 65 | 64 | 127 | 130 | |||||||||||||||
Operating lease expense | 25 | 28 | 35 | 53 | 74 | |||||||||||||||
Computer processing | 42 | 42 | 47 | 84 | 94 | |||||||||||||||
Business services and professional fees | 44 | 38 | 41 | 82 | 79 | |||||||||||||||
FDIC assessment | 9 | 29 | 33 | 38 | 70 | |||||||||||||||
OREO expense, net | (3 | ) | 10 | 22 | 7 | 54 | ||||||||||||||
Equipment | 26 | 26 | 26 | 52 | 50 | |||||||||||||||
Marketing | 10 | 10 | 16 | 20 | 29 | |||||||||||||||
Provision (credit) for losses on lending-related commitments | (12 | ) | (4 | ) | (10 | ) | (16 | ) | (12 | ) | ||||||||||
Other expense | 97 | 86 | 110 | 183 | 239 | |||||||||||||||
Total noninterest expense | 680 | 701 | 769 | 1,381 | 1,554 | |||||||||||||||
Income (loss) from continuing operations before income taxes | 346 | 393 | 112 | 739 | (11 | ) | ||||||||||||||
Income taxes | 94 | 111 | 11 | 205 | (71 | ) | ||||||||||||||
Income (loss) from continuing operations | 252 | 282 | 101 | 534 | 60 | |||||||||||||||
Income (loss) from discontinued operations, net of taxes | (9 | ) | (11 | ) | (27 | ) | (20 | ) | (25 | ) | ||||||||||
Net income (loss) | 243 | 271 | 74 | 514 | 35 | |||||||||||||||
Less: Net income (loss) attributable to noncontrolling interests | 3 | 8 | 4 | 11 | 20 | |||||||||||||||
Net income (loss) attributable to Key | $ | 240 | $ | 263 | $ | 70 | $ | 503 | $ | 15 | ||||||||||
Income (loss) from continuing operations attributable to Key common shareholders | $ | 243 | $ | 184 | $ | 56 | $ | 427 | $ | (42 | ) | |||||||||
Net income (loss) attributable to Key common shareholders | 234 | 173 | 29 | 407 | (67 | ) | ||||||||||||||
Per common share | ||||||||||||||||||||
Income (loss) from continuing operations attributable to Key common shareholders | $ | .26 | $ | .21 | $ | .06 | $ | .47 | $ | (.05 | ) | |||||||||
Income (loss) from discontinued operations, net of taxes | (.01 | ) | (.01 | ) | (.03 | ) | (.02 | ) | (.03 | ) | ||||||||||
Net income (loss) attributable to Key common shareholders | .25 | .20 | .03 | .44 | (.08 | ) | ||||||||||||||
Per common share — assuming dilution | ||||||||||||||||||||
Income (loss) from continuing operations attributable to Key common shareholders | $ | .26 | $ | .21 | $ | .06 | $ | .46 | $ | (.05 | ) | |||||||||
Income (loss) from discontinued operations, net of taxes | (.01 | ) | (.01 | ) | (.03 | ) | (.02 | ) | (.03 | ) | ||||||||||
Net income (loss) attributable to Key common shareholders | .25 | .19 | .03 | .44 | (.08 | ) | ||||||||||||||
Cash dividends declared per common share | $ | .03 | $ | .01 | $ | .01 | $ | .04 | $ | .0925 | ||||||||||
Weighted-average common shares outstanding (000) | 947,565 | 881,894 | 874,664 | 914,911 | 874,526 | |||||||||||||||
Weighted-average common shares and potential common shares outstanding (000) (b) | 951,747 | 887,836 | 874,664 | 919,968 | 874,526 | |||||||||||||||
| (a) | For the three months ended June 30, 2011 and March 31, 2011, Key did not have any impairment losses related to securities. For the three months ended June 30, 2010, Key had $4 million in impairment losses related to securities. |
| (b) | Assumes conversion of stock options and/or Preferred Series A shares, as applicable. |
