CLEVELAND,
Oct. 21, 2021
/PRNewswire/ -- KeyCorp (NYSE: KEY) today announced net
income from continuing operations attributable to Key common
shareholders of $616 million, or
$.65 per diluted common share for the
third quarter of 2021. This compared to $698
million, or $.72 per diluted
common share, for the second quarter of 2021 and $397 million, or $.41 per diluted common share, for the third
quarter of 2020.
Our results this quarter continue to reflect the
strength of our distinctive business model, strong risk management
practices, and significant momentum from recent investments in
teammates and digital capabilities.
We delivered positive operating leverage with record
third quarter revenue, reflecting broad-based growth across our
businesses. We continue to add and deepen relationships in both our
consumer and commercial businesses. Importantly, we achieved
record consumer loan originations and record investment banking
results for the quarter.
Our strong risk culture and disciplined underwriting
practices continue to result in positive credit trends. Credit
quality remained strong this quarter, with lower nonperforming
loans and net charge-offs as a percent of loans of 11 basis points.
In the third quarter, we entered into an accelerated share
repurchase program which was supported by capital relief generated
from the sale of our nonstrategic indirect auto loan portfolio. We
remain committed to our capital priorities and maximizing
stakeholder value.
- Chris
Gorman, Chairman and CEO
Selected Financial Highlights
|
|
|
|
|
|
|
|
|
dollars in millions, except per share
data
|
|
|
|
|
Change 3Q21 vs.
|
|
|
3Q21
|
2Q21
|
3Q20
|
|
2Q21
|
3Q20
|
Income (loss) from
continuing operations attributable to Key common
shareholders
|
$
|
616
|
|
$
|
698
|
|
$
|
397
|
|
|
(11.7)
|
%
|
55.2
|
%
|
Income (loss) from
continuing operations attributable to Key common shareholders
per
common share — assuming dilution
|
.65
|
|
.72
|
|
.41
|
|
|
(9.7)
|
|
58.5
|
|
Return on average
tangible common equity from continuing operations
(a)
|
18.55
|
%
|
21.34
|
%
|
12.19
|
%
|
|
N/A
|
N/A
|
Return on average
total assets from continuing operations
|
1.41
|
|
1.63
|
|
1.00
|
|
|
N/A
|
N/A
|
Common Equity Tier 1
ratio (b)
|
9.6
|
|
9.9
|
|
9.5
|
|
|
N/A
|
N/A
|
Book value at period
end
|
$
|
16.82
|
|
$
|
16.75
|
|
$
|
16.25
|
|
|
.4
|
%
|
3.5
|
%
|
Net interest margin
(TE) from continuing operations
|
2.47
|
%
|
2.52
|
%
|
2.62
|
%
|
|
N/A
|
N/A
|
|
|
|
|
|
|
|
|
(a)
|
The table entitled
"GAAP to Non-GAAP Reconciliations" in the attached financial
supplement presents the computations of certain financial measures
related to "Return on average tangible common equity from
continuing operations." The table reconciles the GAAP performance
measures to the corresponding non-GAAP measures, which provides a
basis for period-to-period comparisons.
|
(b)
|
September 30,
2021 ratio is estimated.
|
TE = Taxable
Equivalent, N/A = Not Applicable
|
INCOME STATEMENT HIGHLIGHTS
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
dollars in millions
|
|
|
|
|
Change 3Q21 vs.
|
|
3Q21
|
2Q21
|
3Q20
|
|
2Q21
|
3Q20
|
Net interest income
(TE)
|
$
|
1,025
|
|
$
|
1,023
|
|
$
|
1,006
|
|
|
.2
|
%
|
1.9
|
%
|
Noninterest
income
|
797
|
|
750
|
|
681
|
|
|
6.3
|
|
17.0
|
|
Total
revenue
|
$
|
1,822
|
|
$
|
1,773
|
|
$
|
1,687
|
|
|
2.8
|
%
|
8.0
|
%
|
|
|
|
|
|
|
|
TE = Taxable
Equivalent
|
Taxable-equivalent net interest income was $1.0 billion for the third quarter of 2021, an
increase of $19 million from the
third quarter of 2020. The increase in net interest income reflects
higher earning asset balances and lower interest-bearing deposit
costs, partially offset by a lower net interest margin. The net
interest margin was impacted by lower interest rates and a change
in balance sheet mix, including elevated levels of liquidity,
partly offset by higher loan fees from the Paycheck Protection
Program ("PPP") forgiveness.
Compared to the second quarter of 2021, taxable-equivalent
net interest income increased by $2
million, and the net interest margin decreased by 5 basis
points. Both net interest income and the net interest margin were
impacted by higher earning asset balances, including elevated
levels of liquidity, partially offset by lower earning asset
yields. Net interest income also benefited from one additional
business day in the third quarter of 2021.
Noninterest Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
dollars in millions
|
|
|
|
|
Change 3Q21 vs.
|
|
3Q21
|
2Q21
|
3Q20
|
|
2Q21
|
3Q20
|
Trust and investment
services income
|
$
|
129
|
|
$
|
133
|
|
$
|
128
|
|
|
(3.0)
|
%
|
.8
|
%
|
Investment banking
and debt placement fees
|
235
|
|
217
|
|
146
|
|
|
8.3
|
|
61.0
|
|
Service charges on
deposit accounts
|
91
|
|
83
|
|
77
|
|
|
9.6
|
|
18.2
|
|
Operating lease
income and other leasing gains
|
37
|
|
36
|
|
38
|
|
|
2.8
|
|
(2.6)
|
|
Corporate services
income
|
69
|
|
55
|
|
51
|
|
|
25.5
|
|
35.3
|
|
Cards and payments
income
|
111
|
|
113
|
|
114
|
|
|
(1.8)
|
|
(2.6)
|
|
Corporate-owned life
insurance income
|
33
|
|
30
|
|
30
|
|
|
10.0
|
|
10.0
|
|
Consumer mortgage
income
|
33
|
|
26
|
|
51
|
|
|
26.9
|
|
(35.3)
|
|
Commercial mortgage
servicing fees
|
34
|
|
44
|
|
18
|
|
|
(22.7)
|
|
88.9
|
|
Other
income
|
25
|
|
13
|
|
28
|
|
|
92.3
|
|
(10.7)
|
|
Total noninterest
income
|
$
|
797
|
|
$
|
750
|
|
$
|
681
|
|
|
6.3
|
%
|
17.0
|
%
|
|
|
|
|
|
|
|
Compared to the third quarter of 2020, noninterest income
increased by $116 million, primarily
driven by an $89 million increase in
investment banking and debt placement fees, driven by higher
volumes in equity underwriting and advisory transactions. Corporate
services income and commercial mortgage servicing fees increased
$18 million and $16 million, respectively. Partially offsetting
these increases was consumer mortgage income, which decreased
$18 million, due to lower gain on
sale margins.
Compared to the second quarter of 2021, noninterest income
increased by $47 million, reflecting
broad-based growth in our fee-based businesses. Notable drivers of
the quarter-over-quarter increase were investment banking and debt
placement fees and corporate services income, which increased
$18 million and $14 million, respectively. Partially offsetting
these increases was a $10 million
decrease in commercial mortgage servicing fees, reflecting lower
activity-related fees.
Noninterest Expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
dollars in millions
|
|
|
|
|
Change 3Q21 vs.
|
|
3Q21
|
2Q21
|
3Q20
|
|
2Q21
|
3Q20
|
Personnel
expense
|
$
|
640
|
|
$
|
623
|
|
$
|
588
|
|
|
2.7
|
%
|
8.8
|
%
|
Nonpersonnel
expense
|
472
|
|
453
|
|
449
|
|
|
4.2
|
|
5.1
|
|
Total noninterest
expense
|
$
|
1,112
|
|
$
|
1,076
|
|
$
|
1,037
|
|
|
3.3
|
%
|
7.2
|
%
|
|
|
|
|
|
|
|
Key's noninterest expense was $1.1
billion for the third quarter of 2021, an increase of
$75 million from the year-ago period.
The increase is primarily related to higher personnel costs of
$52 million, reflecting higher
incentive and stock-based compensation, attributed to an increase
in fee production and Key's increased stock price. Additionally,
other drivers for the year-over-year increase include higher
business services and professional fees and marketing
expense.
Compared to the second quarter of 2021, noninterest
expense increased $36 million. The
increase is primarily related to other expense, which is up
$18 million reflecting elevated
charitable contributions and a pension settlement charge.
Additionally, personnel expense increased $17 million, mostly driven by an $8 million increase in employee benefits and a
$7 million increase in salaries and
contract labor due to one additional day in the quarter.
BALANCE SHEET HIGHLIGHTS
|
|
|
|
|
|
|
|
Average Loans
|
|
|
|
|
|
|
|
dollars in millions
|
|
|
|
|
Change 3Q21 vs.
|
|
3Q21
|
2Q21
|
3Q20
|
|
2Q21
|
3Q20
|
Commercial and
industrial (a)
|
$
|
49,868
|
|
$
|
51,808
|
|
$
|
57,067
|
|
|
(3.7)
|
%
|
(12.6)
|
%
|
Other commercial
loans
|
19,362
|
|
19,034
|
|
19,677
|
|
|
1.7
|
|
(1.6)
|
|
Total consumer
loans
|
30,908
|
|
29,972
|
|
28,175
|
|
|
3.1
|
|
9.7
|
|
Total loans
|
$
|
100,138
|
|
$
|
100,814
|
|
$
|
104,919
|
|
|
(.7)
|
%
|
(4.6)
|
%
|
|
|
|
|
|
|
|
(a)
|
Commercial and
industrial average loan balances include $137 million, $132
million, and $129 million of assets from commercial credit cards at
September 30, 2021, June 30, 2021, and September 30,
2020, respectively.
|
Average loans were $100.1
billion for the third quarter of 2021, a decrease of
$4.8 billion compared to the third
quarter of 2020. Commercial loans decreased $7.5 billion, reflecting decreased utilization
versus the year-ago period and a decline in PPP balances. Consumer
loans increased $2.7 billion,
reflecting strength from Key's consumer mortgage business and
Laurel Road, partly offset by the sale of the indirect auto loan
portfolio.
Compared to the second quarter of 2021, average loans
decreased by $676 million. Commercial
loans decreased $1.6 billion, driven
by a $3.3 billion decline in PPP loan
balances, partially offset by core portfolio growth in commercial
and industrial loans and commercial real estate loans. Consumer
loans continue to reflect strength from Key's consumer mortgage
business, partly offset by the sale of the indirect auto loan
portfolio, which reduced average loans by $763 million.
Average Deposits
|
|
|
|
|
|
|
|
dollars in millions
|
|
|
|
|
Change 3Q21 vs.
|
|
3Q21
|
2Q21
|
3Q20
|
|
2Q21
|
3Q20
|
Non-time
deposits
|
$
|
142,537
|
|
$
|
139,480
|
|
$
|
127,347
|
|
|
2.2
|
%
|
11.9
|
%
|
Certificates of
deposit ($100,000 or more)
|
1,975
|
|
2,212
|
|
3,862
|
|
|
(10.7)
|
|
(48.9)
|
|
Other time
deposits
|
2,404
|
|
2,630
|
|
3,735
|
|
|
(8.6)
|
|
(35.6)
|
|
Total
deposits
|
$
|
146,916
|
|
$
|
144,322
|
|
$
|
134,944
|
|
|
1.8
|
%
|
8.9
|
%
|
|
|
|
|
|
|
|
Cost of total
deposits
|
.04
|
%
|
.05
|
%
|
.16
|
%
|
|
N/A
|
N/A
|
|
|
|
|
|
|
|
N/A = Not
Applicable
|
Average deposits totaled $146.9
billion for the third quarter of 2021, an increase of
$12.0 billion compared to the
year-ago quarter, reflecting growth from consumer and commercial
relationships, including higher commercial escrow deposits,
partially offset by a decline in time deposits.
Compared to the second quarter of 2021, average deposits
increased by $2.6 billion, primarily
driven by commercial growth.
ASSET QUALITY
|
|
|
|
|
|
|
|
dollars in millions
|
|
|
|
|
Change 3Q21 vs.
|
|
3Q21
|
2Q21
|
3Q20
|
|
2Q21
|
3Q20
|
Net loan
charge-offs
|
$
|
29
|
|
$
|
22
|
|
$
|
128
|
|
|
31.8
|
%
|
(77.3)
|
%
|
Net loan charge-offs
to average total loans
|
.11
|
%
|
.09
|
%
|
.49
|
%
|
|
N/A
|
N/A
|
Nonperforming loans
at period end
|
$
|
554
|
|
$
|
694
|
|
$
|
834
|
|
|
(20.2)
|
|
(33.6)
|
|
Nonperforming assets
at period end
|
599
|
|
738
|
|
1,003
|
|
|
(18.8)
|
|
(40.3)
|
|
Allowance for loan
and lease losses
|
1,084
|
|
1,220
|
|
1,730
|
|
|
(11.1)
|
|
(37.3)
|
|
Allowance for credit
losses
|
1,236
|
|
1,372
|
|
1,938
|
|
|
(9.9)
|
|
(36.2)
|
|
Allowance for loan
and lease losses to nonperforming loans
|
195.7
|
%
|
175.8
|
%
|
207.4
|
%
|
|
N/A
|
N/A
|
Allowance for credit
losses to nonperforming loans
|
223.1
|
|
197.7
|
|
232.4
|
|
|
N/A
|
N/A
|
Provision for credit
losses
|
$
|
(107)
|
|
$
|
(222)
|
|
$
|
160
|
|
|
(51.8)
|
%
|
(166.9)
|
%
|
|
|
|
|
|
|
|
N/A = Not
Applicable
|
Key's provision for credit losses was a net benefit of
$107 million, including a
$136 million reserve release for the third quarter of 2021,
compared to an expense of $160
million in the third quarter of 2020 and a net benefit of
$222 million in the second quarter of
2021. The reserve release was largely driven by a continued
improvement in the economic outlook.
Net loan charge-offs for the third quarter of 2021 totaled
$29 million, or .11% of average total
loans. These results compare to $128
million, or .49%, for the third quarter of 2020 and
$22 million, or .09%, for the second
quarter of 2021. Net charge-offs in the current quarter included
$22 million related to the sale of
the indirect auto loan portfolio. Key's allowance for credit losses
was $1.2 billion, or 1.25% of total
period-end loans at September 30, 2021, compared to 1.88% at
September 30, 2020, and 1.36% at June 30,
2021.
At September 30, 2021, Key's nonperforming loans
totaled $554 million, which
represented .56% of period-end portfolio loans. These results
compare to .81% at September 30, 2020, and .69% at
June 30, 2021. Nonperforming assets at September 30,
2021, totaled $599 million, and
represented .61% of period-end portfolio loans and OREO and other
nonperforming assets. These results compare to .97% at
September 30, 2020, and .73% at June 30, 2021.
CAPITAL
Key's estimated risk-based capital ratios included in the
following table continued to exceed all "well-capitalized"
regulatory benchmarks at September 30, 2021. On September 10, Key entered into an accelerated
share repurchase program.
Capital Ratios
|
|
|
|
|
|
|
|
|
9/30/2021
|
6/30/2021
|
9/30/2020
|
Common Equity Tier 1
(a)
|
9.6
|
%
|
9.9
|
%
|
9.5
|
%
|
Tier 1 risk-based
capital (a)
|
10.9
|
|
11.3
|
|
10.9
|
|
Total risk based
capital (a)
|
12.7
|
|
13.2
|
|
13.3
|
|
Tangible common
equity to tangible assets (b)
|
7.0
|
|
7.4
|
|
7.8
|
|
Leverage
(a)
|
8.4
|
|
8.7
|
|
8.7
|
|
|
|
|
|
(a)
|
September 30,
2021 ratio is estimated and reflects Key's election to adopt the
CECL optional transition provision.
|
(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." The table reconciles the GAAP
performance measures to the corresponding non-GAAP measures, which
provides a basis for period-to-period comparisons.
|
Key's capital position remained strong in the third
quarter of 2021. As shown in the preceding table, at
September 30, 2021, Key's estimated Common Equity Tier 1 and
Tier 1 risk-based capital ratios stood at 9.6% and 10.9%,
respectively. Key's tangible common equity ratio was 7.0% at
September 30, 2021.
Key has elected the CECL phase-in option provided by
regulatory guidance which delays for two years the estimated impact
of CECL on regulatory capital and phases it in over three years
beginning in 2022. On a fully phased-in basis, Key's Common Equity
Tier 1 ratio would be reduced by 20 basis points.
Summary of Changes in Common Shares
Outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
in thousands
|
|
|
|
|
Change 3Q21 vs.
|
|
|
3Q21
|
2Q21
|
3Q20
|
|
2Q21
|
3Q20
|
Shares outstanding at
beginning of period
|
960,276
|
|
972,587
|
|
975,947
|
|
|
(1.3)
|
%
|
(1.6)
|
%
|
Open market
repurchases, repurchases under the accelerated repurchase
program, and return of shares under employee
compensation plans
|
(29,923)
|
|
(13,304)
|
|
(1)
|
|
|
124.9
|
|
N/M
|
Shares issued under
employee compensation plans (net of cancellations)
|
191
|
|
993
|
|
259
|
|
|
(80.8)
|
|
(26.3)
|
|
|
Shares outstanding at
end of period
|
930,544
|
|
960,276
|
|
976,205
|
|
|
(3.1)
|
%
|
(4.7)
|
%
|
|
|
|
|
|
|
|
|
N/M = Not
Meaningful
|
During the third quarter of 2021, Key declared a dividend
of $.185 per common share and
completed $593 million of common
share repurchases. Of the $593
million total common shares repurchased in the third quarter
of 2021, $468 million were related to
the initial settlement of the accelerated share repurchase program
and $125 million were purchased in
the open market.
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 3Q21 vs.
|
|
|
3Q21
|
2Q21
|
3Q20
|
|
2Q21
|
3Q20
|
Revenue from continuing operations
(TE)
|
|
|
|
|
|
|
Consumer
Bank
|
$
|
870
|
|
$
|
852
|
|
$
|
864
|
|
|
2.1
|
%
|
.7
|
%
|
Commercial
Bank
|
891
|
|
873
|
|
811
|
|
|
2.1
|
|
9.9
|
|
Other
(a)
|
61
|
|
48
|
|
12
|
|
|
27.1
|
|
N/M
|
|
Total
|
$
|
1,822
|
|
$
|
1,773
|
|
$
|
1,687
|
|
|
2.8
|
%
|
8.0
|
%
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations attributable
to Key
|
|
|
|
|
|
|
Consumer
Bank
|
$
|
241
|
|
$
|
257
|
|
$
|
229
|
|
|
(6.2)
|
%
|
5.2
|
%
|
Commercial
Bank
|
384
|
|
433
|
|
173
|
|
|
(11.3)
|
|
122.0
|
|
Other
(a)
|
18
|
|
34
|
|
22
|
|
|
(47.1)
|
|
(18.2)
|
|
|
Total
|
$
|
643
|
|
$
|
724
|
|
$
|
424
|
|
|
(11.2)
|
%
|
51.7
|
%
|
|
|
|
|
|
|
|
|
(a)
|
Other includes other
segments that consists of corporate treasury, our principal
investing unit, and various exit portfolios as well as reconciling
items which primarily represents the unallocated portion of
nonearning assets of corporate support functions. Charges related
to the funding of these assets are part of net interest income and
are allocated to the business segments through noninterest expense.
Reconciling items also includes intercompany eliminations and
certain items that are not allocated to the business segments
because they do not reflect their normal operations.
|
TE = Taxable
Equivalent, N/M = Not Meaningful
|
Consumer Bank
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
dollars in millions
|
|
|
|
|
Change 3Q21 vs.
|
|
3Q21
|
2Q21
|
3Q20
|
|
2Q21
|
3Q20
|
Summary of operations
|
|
|
|
|
|
|
Net interest income
(TE)
|
$
|
582
|
|
$
|
599
|
|
$
|
598
|
|
|
(2.8)
|
%
|
(2.7)
|
%
|
Noninterest
income
|
288
|
|
253
|
|
266
|
|
|
13.8
|
|
8.3
|
|
Total revenue
(TE)
|
870
|
|
852
|
|
864
|
|
|
2.1
|
|
.7
|
|
Provision for credit
losses
|
(38)
|
|
(70)
|
|
(3)
|
|
|
45.7
|
|
N/M
|
Noninterest
expense
|
591
|
|
584
|
|
567
|
|
|
1.2
|
|
4.2
|
|
Income (loss) before
income taxes (TE)
|
317
|
|
338
|
|
300
|
|
|
(6.2)
|
|
5.7
|
|
Allocated income
taxes (benefit) and TE adjustments
|
76
|
|
81
|
|
71
|
|
|
(6.2)
|
|
7.0
|
|
Net income (loss)
attributable to Key
|
$
|
241
|
|
$
|
257
|
|
$
|
229
|
|
|
(6.2)
|
%
|
5.2
|
%
|
|
|
|
|
|
|
|
Average balances
|
|
|
|
|
|
|
Loans and
leases
|
$
|
39,796
|
|
$
|
40,598
|
|
$
|
38,354
|
|
|
(2.0)
|
%
|
3.8
|
%
|
Total
assets
|
42,981
|
|
43,818
|
|
43,304
|
|
|
(1.9)
|
|
(.7)
|
|
Deposits
|
89,156
|
|
88,412
|
|
82,829
|
|
|
.8
|
|
7.6
|
|
|
|
|
|
|
|
|
Assets under management at period
end
|
$
|
52,867
|
|
$
|
51,013
|
|
$
|
43,949
|
|
|
3.6
|
%
|
20.3
|
%
|
|
|
|
|
|
|
|
TE = Taxable
Equivalent
|
Additional Consumer Bank Data
|
|
|
|
|
|
|
|
dollars in millions
|
|
|
|
|
Change 3Q21 vs.
|
|
3Q21
|
2Q21
|
3Q20
|
|
2Q21
|
3Q20
|
Noninterest income
|
|
|
|
|
|
|
Trust and investment
services income
|
$
|
105
|
|
$
|
104
|
|
$
|
100
|
|
|
1.0
|
%
|
5.0
|
%
|
Service charges on
deposit accounts
|
56
|
|
48
|
|
44
|
|
|
16.7
|
|
27.3
|
|
Cards and payments
income
|
62
|
|
62
|
|
55
|
|
|
—
|
|
12.7
|
|
Consumer mortgage
income
|
33
|
|
26
|
|
51
|
|
|
26.9
|
|
(35.3)
|
|
Other noninterest
income
|
32
|
|
13
|
|
16
|
|
|
146.2
|
|
100.0
|
|
Total noninterest
income
|
$
|
288
|
|
$
|
253
|
|
$
|
266
|
|
|
13.8
|
%
|
8.3
|
%
|
|
|
|
|
|
|
|
Average deposit balances
|
|
|
|
|
|
|
NOW and money market
deposit accounts
|
$
|
56,353
|
|
$
|
56,038
|
|
$
|
52,539
|
|
|
.6
|
%
|
7.3
|
%
|
Savings
deposits
|
6,749
|
|
6,523
|
|
5,168
|
|
|
3.5
|
|
30.6
|
|
Certificates of
deposit ($100,000 or more)
|
1,846
|
|
2,083
|
|
3,550
|
|
|
(11.4)
|
|
(48.0)
|
|
Other time
deposits
|
2,398
|
|
2,616
|
|
3,701
|
|
|
(8.3)
|
|
(35.2)
|
|
Noninterest-bearing
deposits
|
21,810
|
|
21,152
|
|
17,872
|
|
|
3.1
|
|
22.0
|
|
Total
deposits
|
$
|
89,156
|
|
$
|
88,412
|
|
$
|
82,830
|
|
|
.8
|
%
|
7.6
|
%
|
|
|
|
|
|
|
|
Other data
|
|
|
|
|
|
|
Branches
|
1,000
|
|
1,014
|
|
1,077
|
|
|
|
|
Automated teller
machines
|
1,316
|
|
1,329
|
|
1,388
|
|
|
|
|
|
|
|
|
|
|
|
Consumer Bank Summary of Operations (3Q21 vs.
3Q20)
- Net income attributable to Key of $241 million for the third quarter of 2021,
compared to $229 million for the
year-ago quarter
- Taxable-equivalent net interest income decreased by
$16 million, compared to the third
quarter of 2020, driven by the lower interest rate environment,
partially offset by strong consumer mortgage balance sheet growth
and fees related to PPP loans
- Average loans and leases increased $1.4 billion, or 3.8%, from the third quarter of
2020, driven by growth in consumer mortgage, partially offset by
the sale of the indirect auto loan portfolio
- Average deposits increased $6.3
billion, or 7.6%, from the third quarter of 2020, driven by
retention of consumer stimulus payments and relationship
growth
- Provision for credit losses decreased $35 million, compared to the third quarter of
2020. The provision for credit losses was a net benefit and was
driven by improvements in expected economic conditions and
continued strength in client credit quality
- Noninterest income increased $22
million, or 8.3%, from the year ago quarter, driven by
higher service charges on deposit accounts and cards and payments
income, partially offset by lower consumer mortgage income, due to
lower gain on sale margins
- Noninterest expense increased $24
million, or 4.2%, from the year ago quarter, driven by
higher production-related incentives and support expenses related
to higher loan volumes
Commercial Bank
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
dollars in millions
|
|
|
|
|
Change 3Q21 vs.
|
|
3Q21
|
2Q21
|
3Q20
|
|
2Q21
|
3Q20
|
Summary of operations
|
|
|
|
|
|
|
Net interest income
(TE)
|
$
|
414
|
|
$
|
418
|
|
$
|
427
|
|
|
(1.0)
|
%
|
(3.0)
|
%
|
Noninterest
income
|
477
|
|
455
|
|
384
|
|
|
4.8
|
|
24.2
|
|
Total revenue
(TE)
|
891
|
|
873
|
|
811
|
|
|
2.1
|
|
9.9
|
|
Provision for credit
losses
|
(69)
|
|
(131)
|
|
150
|
|
|
(47.3)
|
|
(146.0)
|
|
Noninterest
expense
|
470
|
|
451
|
|
447
|
|
|
4.2
|
|
5.1
|
|
Income (loss) before
income taxes (TE)
|
490
|
|
553
|
|
214
|
|
|
(11.4)
|
|
129.0
|
|
Allocated income
taxes and TE adjustments
|
106
|
|
120
|
|
41
|
|
|
(11.7)
|
|
158.5
|
|
Net income (loss)
attributable to Key
|
$
|
384
|
|
$
|
433
|
|
$
|
173
|
|
|
(11.3)
|
%
|
122.0
|
%
|
|
|
|
|
|
|
|
Average balances
|
|
|
|
|
|
|
Loans and
leases
|
$
|
59,914
|
|
$
|
59,953
|
|
$
|
66,378
|
|
|
(.1)
|
%
|
(9.7)
|
%
|
Loans held for
sale
|
1,190
|
|
1,341
|
|
1,383
|
|
|
(11.3)
|
|
(14.0)
|
|
Total
assets
|
69,285
|
|
69,101
|
|
74,530
|
|
|
0.3
|
|
(7.0)
|
|
Deposits
|
56,546
|
|
54,814
|
|
51,585
|
|
|
3.2
|
%
|
9.6
|
%
|
|
|
|
|
|
|
|
TE = Taxable
Equivalent, N/M = Not Meaningful
|
Additional Commercial Bank Data
|
|
|
|
|
|
|
|
dollars in millions
|
|
|
|
|
Change 3Q21 vs.
|
|
3Q21
|
2Q21
|
3Q20
|
|
2Q21
|
3Q20
|
Noninterest income
|
|
|
|
|
|
|
Trust and investment
services income
|
$
|
24
|
|
$
|
27
|
|
$
|
28
|
|
|
(11.1)
|
%
|
(14.3)
|
|
Investment banking
and debt placement fees
|
234
|
|
215
|
|
146
|
|
|
8.8
|
|
60.3
|
%
|
Operating lease
income and other leasing gains
|
37
|
|
35
|
|
38
|
|
|
5.7
|
|
(2.6)
|
|
|
|
|
|
|
|
|
Corporate services
income
|
63
|
|
47
|
|
44
|
|
|
34.0
|
|
43.2
|
|
Service charges on
deposit accounts
|
34
|
|
34
|
|
33
|
|
|
—
|
|
3.0
|
|
Cards and payments
income
|
44
|
|
49
|
|
60
|
|
|
(10.2)
|
|
(26.7)
|
|
Payments and services
income
|
141
|
|
130
|
|
137
|
|
|
8.5
|
|
2.9
|
|
|
|
|
|
|
|
|
Commercial mortgage
servicing fees
|
34
|
|
44
|
|
18
|
|
|
(22.7)
|
|
88.9
|
|
Other noninterest
income
|
7
|
|
4
|
|
17
|
|
|
75.0
|
|
(58.8)
|
|
Total noninterest
income
|
$
|
477
|
|
$
|
455
|
|
$
|
384
|
|
|
4.8
|
%
|
24.2
|
%
|
|
|
|
|
|
|
|
N/M = Not
Meaningful
|
Commercial Bank Summary of Operations (3Q21 vs.
3Q20)
- Net income attributable to Key of $384 million for the third quarter of 2021,
compared to $173 million for the
year-ago quarter
- Taxable-equivalent net interest income decreased by
$13 million, compared to the third
quarter of 2020, as lower average loan balances offset fees related
to PPP loans
- Average loan and lease balances decreased $6.5 billion, compared to the third quarter of
2020, driven by lower commercial and industrial line draws and PPP
loan forgiveness
- Average deposit balances increased $5.0 billion, or 9.6%, compared to the third
quarter of 2020, driven by growth in targeted relationships and the
impact of government programs
- Provision for credit losses decreased $219 million, compared to the third quarter of
2020. The provision for credit losses was a net benefit and was
driven by expected improvements in economic conditions
- Noninterest income increased $93
million, from the year-ago quarter, driven by elevated
investment banking client activity and commercial mortgage
servicing fees, partially offset by lower cards and payments income
as individuals roll off unemployment benefits
- Noninterest expense increased by $23 million, or 5.1%, from the third quarter of
2020, driven by higher production-related incentives related to
strong revenue production
*******************************************
KeyCorp's roots trace back nearly 200 years to
Albany, New York. Headquartered in
Cleveland, Ohio, Key is one of the
nation's largest bank-based financial services companies, with
assets of approximately $187.0
billion at September 30, 2021.
Key provides deposit, lending, cash management, and
investment services to individuals and businesses in 15 states
under the name KeyBank National Association through a network of
1,000 branches and approximately 1,300 ATMs. 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.
INVESTOR RELATIONS:
|
KEY MEDIA NEWSROOM:
|
www.key.com/ir
|
www.key.com/newsroom
|
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, 2020, as well as in KeyCorp's
subsequent SEC filings, all of which have been or will be filed
with the Securities and Exchange Commission (the "SEC") and are or
will be 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 worsening of the U.S. economy due to financial,
political, or other shocks, the extensive regulation of the U.S.
financial services industry, and the impact of the COVID-19 global
pandemic on us, our clients, our third-party service providers, and
the markets. 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 October
21, 2021. A replay of the call will be available through
October 30, 2021.
*****
KeyCorp
Third Quarter 2021
Financial Supplement
|
|
Page
|
|
12
|
Financial
Highlights
|
14
|
GAAP to Non-GAAP
Reconciliation
|
16
|
Consolidated Balance
Sheets
|
17
|
Consolidated
Statements of Income
|
18
|
Consolidated Average
Balance Sheets, and Net Interest Income and Yields/Rates From
Continuing Operations
|
20
|
Noninterest
Expense
|
20
|
Personnel
Expense
|
21
|
Loan
Composition
|
21
|
Loans Held for Sale
Composition
|
21
|
Summary of Changes in
Loans Held for Sale
|
22
|
Summary of Loan and
Lease Loss Experience From Continuing Operations
|
23
|
Asset Quality
Statistics From Continuing Operations
|
23
|
Summary of
Nonperforming Assets and Past Due Loans From Continuing
Operations
|
23
|
Summary of Changes in
Nonperforming Loans From Continuing Operations
|
24
|
Line of Business
Results
|
Financial Highlights
|
(dollars in millions,
except per share amounts)
|
|
|
|
Three months ended
|
|
|
|
9/30/2021
|
6/30/2021
|
9/30/2020
|
Summary of operations
|
|
|
|
|
Net interest income
(TE)
|
$
|
1,025
|
|
$
|
1,023
|
|
$
|
1,006
|
|
|
Noninterest
income
|
797
|
|
750
|
|
681
|
|
|
|
Total revenue
(TE)
|
1,822
|
|
1,773
|
|
1,687
|
|
|
Provision for credit
losses
|
(107)
|
|
(222)
|
|
160
|
|
|
Noninterest
expense
|
1,112
|
|
1,076
|
|
1,037
|
|
|
Income (loss) from
continuing operations attributable to Key
|
643
|
|
724
|
|
424
|
|
|
Income (loss) from
discontinued operations, net of taxes
|
2
|
|
5
|
|
4
|
|
|
Net income (loss)
attributable to Key
|
645
|
|
729
|
|
428
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations attributable to Key common
shareholders
|
616
|
|
698
|
|
397
|
|
|
Income (loss) from
discontinued operations, net of taxes
|
2
|
|
5
|
|
4
|
|
|
Net income (loss)
attributable to Key common shareholders
|
618
|
|
703
|
|
401
|
|
|
|
|
|
|
|
Per common share
|
|
|
|
|
Income (loss) from
continuing operations attributable to Key common
shareholders
|
$
|
.65
|
|
$
|
.73
|
|
$
|
.41
|
|
|
Income (loss) from
discontinued operations, net of taxes
|
—
|
|
—
|
|
—
|
|
|
Net income (loss)
attributable to Key common shareholders (a)
|
.66
|
|
.73
|
|
.41
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations attributable to Key common shareholders —
assuming dilution
|
.65
|
|
.72
|
|
.41
|
|
|
Income (loss) from
discontinued operations, net of taxes — assuming
dilution
|
—
|
|
—
|
|
—
|
|
|
Net income (loss)
attributable to Key common shareholders — assuming dilution
(a)
|
.65
|
|
.73
|
|
.41
|
|
|
|
|
|
|
|
|
Cash dividends
declared
|
.185
|
|
.185
|
|
.185
|
|
|
Book value at period
end
|
16.82
|
|
16.75
|
|
16.25
|
|
|
Tangible book value
at period end
|
13.80
|
|
13.81
|
|
13.32
|
|
|
Market price at
period end
|
21.62
|
|
20.65
|
|
11.93
|
|
|
|
|
|
|
|
Performance ratios
|
|
|
|
|
From continuing operations:
|
|
|
|
|
Return on average
total assets
|
1.41
|
%
|
1.63
|
%
|
1.00
|
%
|
|
Return on average
common equity
|
15.28
|
%
|
17.54
|
|
9.98
|
|
|
Return on average
tangible common equity (b)
|
18.55
|
|
21.34
|
|
12.19
|
|
|
Net interest margin
(TE)
|
2.47
|
|
2.52
|
|
2.62
|
|
|
Cash efficiency ratio
(b)
|
60.2
|
|
59.9
|
|
60.6
|
|
|
|
|
|
|
|
|
From consolidated operations:
|
|
|
|
|
Return on average
total assets
|
1.41
|
|
1.64
|
%
|
1.00
|
%
|
|
Return on average
common equity
|
15.33
|
|
17.67
|
|
10.08
|
|
|
Return on average
tangible common equity (b)
|
18.61
|
|
21.49
|
|
12.31
|
|
|
Net interest margin
(TE)
|
2.46
|
|
2.55
|
|
2.62
|
|
|
Loan to deposit
(c)
|
66.5
|
|
70.4
|
|
77.2
|
|
|
|
|
|
|
|
Capital ratios at period end
|
|
|
|
|
Key shareholders'
equity to assets
|
9.4
|
%
|
9.9
|
%
|
10.4
|
%
|
|
Key common
shareholders' equity to assets
|
8.4
|
|
8.9
|
|
9.3
|
|
|
Tangible common
equity to tangible assets (b)
|
7.0
|
|
7.4
|
|
7.8
|
|
|
Common Equity Tier 1
(d)
|
9.6
|
|
9.9
|
|
9.5
|
|
|
Tier 1 risk-based
capital (d)
|
10.9
|
|
11.3
|
|
10.9
|
|
|
Total risk-based
capital (d)
|
12.7
|
|
13.2
|
|
13.3
|
|
|
Leverage
(d)
|
8.4
|
|
8.7
|
|
8.7
|
|
|
|
|
|
|
|
Asset quality — from continuing
operations
|
|
|
|
|
Net loan
charge-offs
|
$
|
29
|
|
$
|
22
|
|
$
|
128
|
|
|
Net loan charge-offs
to average loans
|
.11
|
%
|
.09
|
%
|
.49
|
%
|
|
Allowance for loan
and lease losses
|
$
|
1,084
|
|
$
|
1,220
|
|
$
|
1,730
|
|
|
Allowance for credit
losses
|
1,236
|
|
1,372
|
|
1,938
|
|
|
Allowance for loan
and lease losses to period-end loans
|
1.10
|
%
|
1.21
|
%
|
1.68
|
%
|
|
Allowance for credit
losses to period-end loans
|
1.25
|
|
1.36
|
|
1.88
|
|
|
Allowance for loan
and lease losses to nonperforming loans
|
195.7
|
|
175.8
|
|
207.4
|
|
|
Allowance for credit
losses to nonperforming loans
|
223.1
|
|
197.7
|
|
232.4
|
|
|
Nonperforming loans
at period-end
|
$
|
554
|
|
$
|
694
|
|
$
|
834
|
|
|
Nonperforming assets
at period-end
|
599
|
|
738
|
|
1,003
|
|
|
Nonperforming loans
to period-end portfolio loans
|
.56
|
%
|
.69
|
%
|
.81
|
%
|
|
Nonperforming assets
to period-end portfolio loans plus OREO and other nonperforming
assets
|
.61
|
|
.73
|
|
.97
|
|
|
|
|
|
|
|
Trust assets
|
|
|
|
|
Assets under
management
|
$
|
52,867
|
|
$
|
51,013
|
|
$
|
43,949
|
|
|
|
|
|
|
|
Other data
|
|
|
|
|
Average full-time
equivalent employees
|
17,009
|
|
17,003
|
|
17,097
|
|
|
Branches
|
1,000
|
|
1,014
|
|
1,077
|
|
|
Taxable-equivalent
adjustment
|
$
|
9
|
|
$
|
6
|
|
$
|
6
|
|
|
|
|
|
Financial Highlights
(continued)
|
(dollars in millions,
except per share amounts)
|
|
|
Nine months ended
|
|
|
9/30/2021
|
9/30/2020
|
Summary of operations
|
|
|
|
Net interest income
(TE)
|
$
|
3,060
|
|
$
|
3,020
|
|
|
Noninterest
income
|
2,285
|
|
1,850
|
|
|
Total revenue
(TE)
|
5,345
|
|
4,870
|
|
|
Provision for credit
losses
|
(422)
|
|
1,001
|
|
|
Noninterest
expense
|
3,259
|
|
2,981
|
|
|
Income (loss) from
continuing operations attributable to Key
|
1,985
|
|
754
|
|
|
Income (loss) from
discontinued operations, net of taxes
|
11
|
|
7
|
|
|
Net income (loss)
attributable to Key
|
1,996
|
|
761
|
|
|
|
|
|
|
Income (loss) from
continuing operations attributable to Key common
shareholders
|
1,905
|
|
674
|
|
|
Income (loss) from
discontinued operations, net of taxes
|
11
|
|
7
|
|
|
Net income (loss)
attributable to Key common shareholders
|
1,916
|
|
681
|
|
|
|
|
|
Per common share
|
|
|
|
Income (loss) from
continuing operations attributable to Key common
shareholders
|
$
|
1.99
|
|
$
|
.70
|
|
|
Income (loss) from
discontinued operations, net of taxes
|
.01
|
|
.01
|
|
|
Net income (loss)
attributable to Key common shareholders (a)
|
2.00
|
|
.70
|
|
|
|
|
|
|
Income (loss) from
continuing operations attributable to Key common shareholders —
assuming dilution
|
1.98
|
|
.69
|
|
|
Income (loss) from
discontinued operations, net of taxes — assuming
dilution
|
.01
|
|
.01
|
|
|
Net income (loss)
attributable to Key common shareholders — assuming dilution
(a)
|
1.99
|
|
.70
|
|
|
|
|
|
|
Cash dividends
paid
|
.56
|
|
.56
|
|
|
|
|
|
Performance ratios
|
|
|
|
From continuing
operations:
|
|
|
|
Return on average
total assets
|
1.50
|
%
|
.63
|
%
|
|
Return on average
common equity
|
15.98
|
|
5.75
|
|
|
Return on average
tangible common equity (b)
|
19.43
|
|
7.06
|
|
|
Net interest margin
(TE)
|
2.53
|
|
2.78
|
|
|
Cash efficiency ratio
(b)
|
60.1
|
|
60.2
|
|
|
|
|
|
|
From consolidated
operations:
|
|
|
|
Return on average
total assets
|
1.50
|
%
|
.63
|
%
|
|
Return on average
common equity
|
16.07
|
|
5.81
|
|
|
Return on average
tangible common equity (b)
|
19.54
|
|
7.13
|
|
|
Net interest margin
(TE)
|
2.52
|
|
2.78
|
|
|
|
|
|
Asset quality — from continuing
operations
|
|
|
|
Net loan
charge-offs
|
$
|
165
|
|
$
|
308
|
|
|
Net loan charge-offs
to average total loans
|
.22
|
%
|
.40
|
%
|
|
|
|
|
Other data
|
|
|
|
Average full-time
equivalent employees
|
17,034
|
|
16,758
|
|
|
|
|
|
Taxable-equivalent
adjustment
|
22
|
|
21
|
|
(a)
|
Earnings per share
may not foot due to rounding.
|
(b)
|
The following table
entitled "GAAP to Non-GAAP Reconciliations" presents the
computations of certain financial measures related to "tangible
common equity" 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.
|
(c)
|
Represents period-end
consolidated total loans and loans held for sale divided by
period-end consolidated total deposits.
|
(d)
|
September 30,
2021, ratio is estimated and reflects Key's election to adopt the
CECL optional transition provision.
|
GAAP to Non-GAAP
Reconciliations
|
(dollars in
millions)
|
The table below
presents certain non-GAAP financial measures related to "tangible
common equity," "return on average tangible common equity,"
"pre-provision net revenue," and "cash efficiency
ratio."
|
|
The tangible common
equity ratio and the return on average 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.
|
|
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 credit losses makes it easier to
analyze the results by presenting them on a more comparable
basis.
|
|
The cash efficiency
ratio is a ratio of two non-GAAP performance measures. As such,
there is no directly comparable GAAP performance measure. The cash
efficiency ratio performance measure removes the impact of Key's
intangible asset amortization from the calculation. Management
believes this ratio provide greater consistency and comparability
between Key's results and those of its peer banks. Additionally,
this ratio is used by analysts and investors as they develop
earnings forecasts and peer bank analysis.
|
|
Non-GAAP financial
measures have inherent limitations, are not required to be
uniformly applied, and are not audited. Although these non-GAAP
financial measures are frequently used by investors to evaluate a
company, they have limitations as analytical tools, and should not
be considered in isolation, or as a substitute for analyses of
results as reported under GAAP.
|
|
Three months ended
|
|
Nine months ended
|
|
9/30/2021
|
6/30/2021
|
9/30/2020
|
|
9/30/2021
|
9/30/2020
|
Tangible common equity to tangible assets at
period-end
|
|
|
|
|
|
|
Key shareholders'
equity (GAAP)
|
$
|
17,510
|
|
$
|
17,941
|
|
$
|
17,722
|
|
|
|
|
Less: Intangible
assets (a)
|
2,814
|
|
2,828
|
|
2,862
|
|
|
|
|
Preferred
Stock (b)
|
1,856
|
|
1,856
|
|
1,856
|
|
|
|
|
Tangible common equity
(non-GAAP)
|
$
|
12,840
|
|
$
|
13,257
|
|
$
|
13,004
|
|
|
|
|
Total assets
(GAAP)
|
$
|
187,035
|
|
$
|
181,115
|
|
$
|
170,540
|
|
|
|
|
Less: Intangible
assets (a)
|
2,814
|
|
2,828
|
|
2,862
|
|
|
|
|
Tangible assets
(non-GAAP)
|
$
|
184,221
|
|
$
|
178,287
|
|
$
|
167,678
|
|
|
|
|
Tangible common equity
to tangible assets ratio (non-GAAP)
|
6.97
|
%
|
7.44
|
%
|
7.76
|
%
|
|
|
|
Pre-provision net revenue
|
|
|
|
|
|
|
Net interest income
(GAAP)
|
$
|
1,016
|
|
$
|
1,017
|
|
$
|
1,000
|
|
|
$
|
3,038
|
|
$
|
2,999
|
|
Plus:
Taxable-equivalent adjustment
|
9
|
|
6
|
|
6
|
|
|
22
|
|
21
|
|
Noninterest
income
|
797
|
|
750
|
|
681
|
|
|
2,285
|
|
1,850
|
|
Less: Noninterest
expense
|
1,112
|
|
1,076
|
|
1,037
|
|
|
3,259
|
|
2,981
|
|
Pre-provision net
revenue from continuing operations (non-GAAP)
|
$
|
710
|
|
$
|
697
|
|
$
|
650
|
|
|
$
|
2,086
|
|
$
|
1,889
|
|
Average tangible common equity
|
|
|
|
|
|
|
Average Key
shareholders' equity (GAAP)
|
$
|
17,899
|
|
$
|
17,859
|
|
$
|
17,730
|
|
|
$
|
17,843
|
|
$
|
17,545
|
|
Less: Intangible
assets (average) (c)
|
2,823
|
|
2,840
|
|
2,870
|
|
|
2,834
|
|
2,886
|
|
Preferred stock
(average)
|
1,900
|
|
1,900
|
|
1,900
|
|
|
1,900
|
|
1,900
|
|
Average tangible
common equity (non-GAAP)
|
$
|
13,176
|
|
$
|
13,119
|
|
$
|
12,960
|
|
|
$
|
13,109
|
|
$
|
12,759
|
|
Return on average tangible common equity from
continuing operations
|
|
|
|
|
|
|
Net income (loss) from
continuing operations attributable to Key common shareholders
(GAAP)
|
$
|
616
|
|
$
|
698
|
|
$
|
397
|
|
|
$
|
1,905
|
|
$
|
674
|
|
Average tangible
common equity (non-GAAP)
|
13,176
|
|
13,119
|
|
12,960
|
|
|
13,109
|
|
12,759
|
|
|
|
|
|
|
|
|
Return on average
tangible common equity from continuing operations
(non-GAAP)
|
18.55
|
%
|
21.34
|
%
|
12.19
|
%
|
|
19.43
|
%
|
7.06
|
%
|
Return on average tangible common equity
consolidated
|
|
|
|
|
|
|
Net income (loss)
attributable to Key common shareholders (GAAP)
|
$
|
618
|
|
$
|
703
|
|
$
|
401
|
|
|
$
|
1,916
|
|
$
|
681
|
|
Average tangible
common equity (non-GAAP)
|
13,176
|
|
13,119
|
|
12,960
|
|
|
13,109
|
|
12,759
|
|
|
|
|
|
|
|
|
Return on average
tangible common equity consolidated (non-GAAP)
|
18.61
|
%
|
21.49
|
%
|
12.31
|
%
|
|
19.54
|
%
|
7.13
|
%
|
GAAP to Non-GAAP Reconciliations
(continued)
|
(dollars in
millions)
|
|
Three months ended
|
|
Nine months ended
|
|
9/30/2021
|
6/30/2021
|
9/30/2020
|
|
9/30/2021
|
9/30/2020
|
Cash efficiency ratio
|
|
|
|
|
|
|
Noninterest expense
(GAAP)
|
$
|
1,112
|
|
$
|
1,076
|
|
$
|
1,037
|
|
|
$
|
3,259
|
|
$
|
2,981
|
|
Less: Intangible asset
amortization
|
15
|
|
14
|
|
15
|
|
|
44
|
|
50
|
|
Adjusted noninterest
expense (non-GAAP)
|
$
|
1,097
|
|
$
|
1,062
|
|
$
|
1,022
|
|
|
$
|
3,215
|
|
$
|
2,931
|
|
|
|
|
|
|
|
|
Net interest income
(GAAP)
|
$
|
1,016
|
|
$
|
1,017
|
|
$
|
1,000
|
|
|
$
|
3,038
|
|
$
|
2,999
|
|
Plus:
Taxable-equivalent adjustment
|
9
|
|
6
|
|
6
|
|
|
22
|
|
21
|
|
Noninterest
income
|
797
|
|
750
|
|
681
|
|
|
2,285
|
|
1,850
|
|
Total
taxable-equivalent revenue (non-GAAP)
|
$
|
1,822
|
|
$
|
1,773
|
|
$
|
1,687
|
|
|
$
|
5,345
|
|
$
|
4,870
|
|
|
|
|
|
|
|
|
Cash efficiency ratio
(non-GAAP)
|
60.2
|
%
|
59.9
|
%
|
60.6
|
%
|
|
60.1
|
%
|
60.2
|
%
|
|
|
|
|
|
|
|
(a)
|
For the three months
ended September 30, 2021, June 30, 2021, and
September 30, 2020, intangible assets exclude $3 million, $4
million, and $5 million, respectively, of period-end purchased
credit card receivables.
|
(b)
|
Net of capital
surplus.
|
(c)
|
For the three months
ended September 30, 2021, June 30, 2021, and
September 30, 2020, average intangible assets exclude $3
million, $4 million, and $5 million, respectively, of average
purchased credit card receivables. For the nine months ended
September 30, 2021, and September 30, 2020, average
intangible assets exclude $4 million and $6 million, respectively,
of average purchased credit card receivables
|
GAAP = U.S. generally
accepted accounting principles
|
Consolidated Balance Sheets
|
(dollars in
millions)
|
|
|
|
|
|
|
|
|
|
9/30/2021
|
6/30/2021
|
9/30/2020
|
Assets
|
|
|
|
|
Loans
|
$
|
98,609
|
|
$
|
100,730
|
|
$
|
103,081
|
|
|
Loans held for
sale
|
1,805
|
|
1,537
|
|
1,724
|
|
|
Securities available
for sale
|
40,594
|
|
34,638
|
|
26,895
|
|
|
Held-to-maturity
securities
|
8,423
|
|
6,175
|
|
8,384
|
|
|
Trading account
assets
|
902
|
|
851
|
|
733
|
|
|
Short-term
investments
|
19,608
|
|
20,460
|
|
14,148
|
|
|
Other
investments
|
607
|
|
635
|
|
620
|
|
|
|
Total earning
assets
|
170,548
|
|
165,026
|
|
155,585
|
|
|
Allowance for loan
and lease losses
|
(1,084)
|
|
(1,220)
|
|
(1,730)
|
|
|
Cash and due from
banks
|
763
|
|
792
|
|
956
|
|
|
Premises and
equipment
|
678
|
|
785
|
|
765
|
|
|
Goodwill
|
2,673
|
|
2,673
|
|
2,664
|
|
|
Other intangible
assets
|
144
|
|
159
|
|
203
|
|
|
Corporate-owned life
insurance
|
4,312
|
|
4,304
|
|
4,274
|
|
|
Accrued income and
other assets
|
8,404
|
|
7,966
|
|
7,084
|
|
|
Discontinued
assets
|
597
|
|
630
|
|
739
|
|
|
|
Total assets
|
$
|
187,035
|
|
181,115
|
|
170,540
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
Deposits in domestic
offices:
|
|
|
|
|
|
NOW and money market
deposit accounts
|
$
|
87,242
|
|
$
|
85,242
|
|
$
|
80,791
|
|
|
|
Savings
deposits
|
7,259
|
|
6,993
|
|
5,585
|
|
|
|
Certificates of
deposit ($100,000 or more)
|
1,890
|
|
2,064
|
|
3,345
|
|
|
|
Other time
deposits
|
2,315
|
|
2,493
|
|
3,450
|
|
|
|
Total
interest-bearing deposits
|
98,706
|
|
96,792
|
|
93,171
|
|
|
|
Noninterest-bearing
deposits
|
53,225
|
|
49,280
|
|
43,575
|
|
|
|
Total
deposits
|
151,931
|
|
146,072
|
|
136,746
|
|
|
Federal funds
purchased and securities sold under repurchase
agreements
|
228
|
|
211
|
|
213
|
|
|
Bank notes and other
short-term borrowings
|
767
|
|
723
|
|
818
|
|
|
Accrued expense and
other liabilities
|
3,434
|
|
2,957
|
|
2,356
|
|
|
Long-term
debt
|
13,165
|
|
13,211
|
|
12,685
|
|
|
|
Total liabilities
|
169,525
|
|
163,174
|
|
152,818
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
Preferred
stock
|
1,900
|
|
1,900
|
|
1,900
|
|
|
Common
shares
|
1,257
|
|
1,257
|
|
1,257
|
|
|
Capital
surplus
|
6,141
|
|
6,232
|
|
6,263
|
|
|
Retained
earnings
|
14,133
|
|
13,689
|
|
12,375
|
|
|
Treasury stock, at
cost
|
(5,876)
|
|
(5,287)
|
|
(4,940)
|
|
|
Accumulated other
comprehensive income (loss)
|
(45)
|
|
150
|
|
867
|
|
|
|
Key shareholders'
equity
|
17,510
|
|
17,941
|
|
17,722
|
|
|
Noncontrolling
interests
|
—
|
|
—
|
|
—
|
|
|
|
Total equity
|
17,510
|
|
17,941
|
|
17,722
|
|
Total liabilities and equity
|
$
|
187,035
|
|
$
|
181,115
|
|
$
|
170,540
|
|
|
|
|
|
|
|
Common shares
outstanding (000)
|
930,544
|
|
960,276
|
|
976,205
|
|
Consolidated Statements of
Income
|
(dollars in millions,
except per share amounts)
|
|
|
|
Three months ended
|
|
Nine months ended
|
|
|
|
9/30/2021
|
6/30/2021
|
9/30/2020
|
|
9/30/2021
|
9/30/2020
|
Interest income
|
|
|
|
|
|
|
|
Loans
|
$
|
882
|
|
$
|
888
|
|
$
|
927
|
|
|
$
|
2,659
|
|
$
|
2,933
|
|
|
Loans held for
sale
|
13
|
|
11
|
|
18
|
|
|
35
|
|
58
|
|
|
Securities available
for sale
|
135
|
|
133
|
|
115
|
|
|
398
|
|
365
|
|
|
Held-to-maturity
securities
|
43
|
|
45
|
|
53
|
|
|
133
|
|
171
|
|
|
Trading account
assets
|
4
|
|
5
|
|
3
|
|
|
14
|
|
16
|
|
|
Short-term
investments
|
9
|
|
6
|
|
1
|
|
|
20
|
|
14
|
|
|
Other
investments
|
1
|
|
2
|
|
2
|
|
|
5
|
|
3
|
|
|
|
Total interest
income
|
1,087
|
|
1,090
|
|
1,119
|
|
|
3,264
|
|
3,560
|
|
Interest expense
|
|
|
|
|
|
|
|
Deposits
|
15
|
|
16
|
|
54
|
|
|
52
|
|
319
|
|
|
Federal funds
purchased and securities sold under repurchase
agreements
|
—
|
|
—
|
|
—
|
|
|
—
|
|
6
|
|
|
Bank notes and other
short-term borrowings
|
2
|
|
3
|
|
1
|
|
|
6
|
|
11
|
|
|
Long-term
debt
|
54
|
|
54
|
|
64
|
|
|
168
|
|
225
|
|
|
|
Total interest
expense
|
71
|
|
73
|
|
119
|
|
|
226
|
|
561
|
|
Net interest
income
|
1,016
|
|
1,017
|
|
1,000
|
|
|
3,038
|
|
2,999
|
|
Provision for credit
losses
|
(107)
|
|
(222)
|
|
160
|
|
|
(422)
|
|
1,001
|
|
Net interest income
after provision for credit losses
|
1,123
|
|
1,239
|
|
840
|
|
|
3,460
|
|
1,998
|
|
Noninterest income
|
|
|
|
|
|
|
|
Trust and investment
services income
|
129
|
|
133
|
|
128
|
|
|
395
|
|
384
|
|
|
Investment banking
and debt placement fees
|
235
|
|
217
|
|
146
|
|
|
614
|
|
418
|
|
|
Service charges on
deposit accounts
|
91
|
|
83
|
|
77
|
|
|
247
|
|
229
|
|
|
Operating lease
income and other leasing gains
|
37
|
|
36
|
|
38
|
|
|
111
|
|
128
|
|
|
Corporate services
income
|
69
|
|
55
|
|
51
|
|
|
188
|
|
165
|
|
|
Cards and payments
income
|
111
|
|
113
|
|
114
|
|
|
329
|
|
271
|
|
|
Corporate-owned life
insurance income
|
33
|
|
30
|
|
30
|
|
|
94
|
|
101
|
|
|
Consumer mortgage
income
|
33
|
|
26
|
|
51
|
|
|
106
|
|
133
|
|
|
Commercial mortgage
servicing fees
|
34
|
|
44
|
|
18
|
|
|
112
|
|
48
|
|
|
Other
income
|
25
|
|
13
|
|
28
|
|
|
89
|
|
(27)
|
|
|
|
Total noninterest
income
|
797
|
|
750
|
|
681
|
|
|
2,285
|
|
1,850
|
|
Noninterest expense
|
|
|
|
|
|
|
|
Personnel
|
640
|
|
623
|
|
588
|
|
|
1,887
|
|
1,675
|
|
|
Net
occupancy
|
74
|
|
75
|
|
76
|
|
|
225
|
|
223
|
|
|
Computer
processing
|
67
|
|
71
|
|
59
|
|
|
211
|
|
170
|
|
|
Business services and
professional fees
|
56
|
|
51
|
|
49
|
|
|
157
|
|
142
|
|
|
Equipment
|
25
|
|
25
|
|
25
|
|
|
75
|
|
74
|
|
|
Operating lease
expense
|
30
|
|
31
|
|
33
|
|
|
95
|
|
103
|
|
|
Marketing
|
32
|
|
31
|
|
22
|
|
|
89
|
|
67
|
|
|
Intangible asset
amortization
|
15
|
|
14
|
|
15
|
|
|
44
|
|
50
|
|
|
Other
expense
|
173
|
|
155
|
|
170
|
|
|
476
|
|
477
|
|
|
|
Total noninterest
expense
|
1,112
|
|
1,076
|
|
1,037
|
|
|
3,259
|
|
2,981
|
|
Income (loss) from
continuing operations before income taxes
|
808
|
|
913
|
|
484
|
|
|
2,486
|
|
867
|
|
|
Income
taxes
|
165
|
|
189
|
|
60
|
|
|
501
|
|
113
|
|
Income (loss) from
continuing operations
|
643
|
|
724
|
|
424
|
|
|
1,985
|
|
754
|
|
|
Income (loss) from
discontinued operations, net of taxes
|
2
|
|
5
|
|
4
|
|
|
11
|
|
7
|
|
Net income
(loss)
|
645
|
|
729
|
|
428
|
|
|
1,996
|
|
761
|
|
|
Less: Net
income (loss) attributable to noncontrolling interests
|
—
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
Net income (loss)
attributable to Key
|
$
|
645
|
|
$
|
729
|
|
$
|
428
|
|
|
$
|
1,996
|
|
$
|
761
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations attributable to Key common
shareholders
|
$
|
616
|
|
$
|
698
|
|
$
|
397
|
|
|
$
|
1,905
|
|
$
|
674
|
|
Net income (loss)
attributable to Key common shareholders
|
618
|
|
703
|
|
401
|
|
|
1,916
|
|
681
|
|
Per common share
|
|
|
|
|
|
|
Income (loss) from
continuing operations attributable to Key common
shareholders
|
$
|
.65
|
|
$
|
.73
|
|
$
|
.41
|
|
|
$
|
1.99
|
|
$
|
.70
|
|
Income (loss) from
discontinued operations, net of taxes
|
—
|
|
—
|
|
—
|
|
|
.01
|
|
.01
|
|
Net income (loss)
attributable to Key common shareholders (a)
|
.66
|
|
.73
|
|
.41
|
|
|
2.00
|
|
.70
|
|
Per common share — assuming
dilution
|
|
|
|
|
|
|
Income (loss) from
continuing operations attributable to Key common
shareholders
|
$
|
.65
|
|
$
|
.72
|
|
$
|
.41
|
|
|
$
|
1.98
|
|
$
|
.69
|
|
Income (loss) from
discontinued operations, net of taxes
|
—
|
|
—
|
|
—
|
|
|
.01
|
|
.01
|
|
Net income (loss)
attributable to Key common
shareholders (a)
|
.65
|
|
.73
|
|
.41
|
|
|
1.99
|
|
.70
|
|
|
|
|
|
|
|
|
|
|
Cash dividends
declared per common share
|
$
|
.185
|
|
$
|
.185
|
|
$
|
.185
|
|
|
$
|
.555
|
|
$
|
.555
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
common shares outstanding (000)
|
942,446
|
|
957,423
|
|
967,804
|
|
|
955,069
|
|
967,632
|
|
|
Effect of common
share options and other stock awards
|
10,077
|
|
9,740
|
|
6,184
|
|
|
9,712
|
|
6,648
|
|
Weighted-average
common shares and potential common shares outstanding
(000) (b)
|
952,523
|
|
967,163
|
|
973,988
|
|
|
964,781
|
|
974,280
|
|
(a)
|
Earnings per share
may not foot due to rounding.
|
(b)
|
Assumes conversion of
common share options and other stock awards, as
applicable.
|
Consolidated Average Balance Sheets, and Net Interest
Income and Yields/Rates From Continuing
Operations
|
(dollars in
millions)
|
|
|
Third Quarter 2021
|
|
Second Quarter 2021
|
|
Third Quarter 2020
|
|
|
Average
|
|
Yield/
|
|
Average
|
|
Yield/
|
|
Average
|
|
Yield/
|
|
|
Balance
|
Interest (a)
|
Rate (a)
|
|
Balance
|
Interest (a)
|
Rate (a)
|
|
Balance
|
Interest (a)
|
Rate (a)
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans: (b),
(c)
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and
industrial (d)
|
$
|
49,868
|
|
$
|
445
|
|
3.54
|
|
|
$
|
51,808
|
|
$
|
450
|
|
3.48
|
|
|
$
|
57,067
|
|
$
|
474
|
|
3.31
|
|
|
Real estate —
commercial mortgage
|
13,306
|
|
120
|
|
3.56
|
|
|
12,825
|
|
117
|
|
3.67
|
|
|
13,202
|
|
117
|
|
3.54
|
|
|
Real estate —
construction
|
2,134
|
|
19
|
|
3.53
|
|
|
2,149
|
|
20
|
|
3.68
|
|
|
1,987
|
|
18
|
|
3.57
|
|
|
Commercial lease
financing
|
3,922
|
|
27
|
|
2.80
|
|
|
4,060
|
|
30
|
|
2.98
|
|
|
4,488
|
|
35
|
|
3.10
|
|
|
Total commercial
loans
|
69,230
|
|
611
|
|
3.50
|
|
|
70,842
|
|
617
|
|
3.49
|
|
|
76,744
|
|
644
|
|
3.34
|
|
|
Real estate —
residential mortgage
|
13,168
|
|
92
|
|
2.78
|
|
|
11,055
|
|
81
|
|
2.92
|
|
|
8,398
|
|
73
|
|
3.46
|
|
|
Home equity
loans
|
8,894
|
|
84
|
|
3.75
|
|
|
9,089
|
|
85
|
|
3.76
|
|
|
9,580
|
|
91
|
|
3.82
|
|
|
Consumer direct
loans
|
5,175
|
|
59
|
|
4.55
|
|
|
4,910
|
|
57
|
|
4.69
|
|
|
4,403
|
|
56
|
|
5.07
|
|
|
Credit
cards
|
917
|
|
23
|
|
10.07
|
|
|
908
|
|
22
|
|
9.79
|
|
|
967
|
|
25
|
|
10.24
|
|
|
Consumer indirect
loans
|
2,754
|
|
22
|
|
3.15
|
|
|
4,010
|
|
32
|
|
3.19
|
|
|
4,827
|
|
44
|
|
3.66
|
|
|
Total consumer
loans
|
30,908
|
|
280
|
|
3.60
|
|
|
29,972
|
|
277
|
|
3.71
|
|
|
28,175
|
|
289
|
|
4.10
|
|
|
Total loans
|
100,138
|
|
891
|
|
3.53
|
|
|
100,814
|
|
894
|
|
3.56
|
|
|
104,919
|
|
933
|
|
3.55
|
|
|
Loans held for
sale
|
1,447
|
|
13
|
|
3.66
|
|
|
1,616
|
|
11
|
|
2.60
|
|
|
1,924
|
|
18
|
|
3.61
|
|
|
Securities available
for sale (b), (e)
|
36,923
|
|
135
|
|
1.48
|
|
|
33,623
|
|
133
|
|
1.57
|
|
|
24,941
|
|
115
|
|
1.90
|
|
|
Held-to-maturity
securities (b)
|
6,507
|
|
43
|
|
2.66
|
|
|
6,452
|
|
45
|
|
2.75
|
|
|
8,677
|
|
53
|
|
2.44
|
|
|
Trading account
assets
|
743
|
|
4
|
|
2.19
|
|
|
837
|
|
5
|
|
2.56
|
|
|
686
|
|
3
|
|
2.08
|
|
|
Short-term
investments
|
19,274
|
|
9
|
|
.18
|
|
|
18,817
|
|
6
|
|
.13
|
|
|
12,525
|
|
1
|
|
.04
|
|
|
Other investments
(e)
|
614
|
|
1
|
|
.99
|
|
|
622
|
|
2
|
|
1.02
|
|
|
640
|
|
2
|
|
1.49
|
|
|
Total earning
assets
|
165,646
|
|
1,096
|
|
2.64
|
|
|
162,781
|
|
1,096
|
|
2.70
|
|
|
154,312
|
|
1,125
|
|
2.93
|
|
|
Allowance for loan
and lease losses
|
(1,222)
|
|
|
|
|
(1,442)
|
|
|
|
|
(1,696)
|
|
|
|
|
Accrued income and
other assets
|
16,947
|
|
|
|
|
16,531
|
|
|
|
|
16,195
|
|
|
|
|
Discontinued
assets
|
618
|
|
|
|
|
650
|
|
|
|
|
752
|
|
|
|
|
Total assets
|
$
|
181,989
|
|
|
|
|
$
|
178,520
|
|
|
|
|
$
|
169,563
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
NOW and money market
deposit accounts
|
$
|
85,333
|
|
$
|
10
|
|
.05
|
|
|
$
|
83,981
|
|
$
|
9
|
|
.05
|
|
|
$
|
80,175
|
|
$
|
26
|
|
.13
|
|
|
Savings
deposits
|
7,117
|
|
—
|
|
.01
|
|
|
6,859
|
|
1
|
|
.03
|
|
|
5,478
|
|
1
|
|
.04
|
|
|
Certificates of
deposit ($100,000 or more)
|
1,975
|
|
3
|
|
.59
|
|
|
2,212
|
|
4
|
|
.72
|
|
|
3,862
|
|
16
|
|
1.60
|
|
|
Other time
deposits
|
2,404
|
|
2
|
|
.26
|
|
|
2,630
|
|
2
|
|
.38
|
|
|
3,735
|
|
11
|
|
1.17
|
|
|
Total
interest-bearing deposits
|
96,829
|
|
15
|
|
.06
|
|
|
95,682
|
|
16
|
|
.07
|
|
|
93,250
|
|
54
|
|
.23
|
|
|
Federal funds
purchased and securities sold under repurchase
agreements
|
231
|
|
—
|
|
.02
|
|
|
251
|
|
—
|
|
.02
|
|
|
225
|
|
—
|
|
.05
|
|
|
Bank notes and other
short-term borrowings
|
671
|
|
2
|
|
1.11
|
|
|
744
|
|
3
|
|
1.19
|
|
|
761
|
|
1
|
|
.68
|
|
|
Long-term debt
(f), (g)
|
12,601
|
|
54
|
|
1.73
|
|
|
11,978
|
|
54
|
|
1.79
|
|
|
12,801
|
|
64
|
|
2.12
|
|
|
Total
interest-bearing liabilities
|
110,332
|
|
71
|
|
.26
|
|
|
108,655
|
|
73
|
|
.27
|
|
|
107,037
|
|
119
|
|
.45
|
|
|
Noninterest-bearing
deposits
|
50,087
|
|
|
|
|
48,640
|
|
|
|
|
41,694
|
|
|
|
|
Accrued expense and
other liabilities
|
3,053
|
|
|
|
|
2,716
|
|
|
|
|
2,350
|
|
|
|
|
Discontinued
liabilities (g)
|
618
|
|
|
|
|
650
|
|
|
|
|
752
|
|
|
|
|
Total liabilities
|
$
|
164,090
|
|
|
|
|
$
|
160,661
|
|
|
|
|
$
|
151,833
|
|
|
|
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
Key shareholders'
equity
|
$
|
17,899
|
|
|
|
|
$
|
17,859
|
|
|
|
|
$
|
17,730
|
|
|
|
|
Noncontrolling
interests
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
Total equity
|
17,899
|
|
|
|
|
17,859
|
|
|
|
|
17,730
|
|
|
|
|
Total liabilities and equity
|
$
|
181,989
|
|
|
|
|
$
|
178,520
|
|
|
|
|
$
|
169,563
|
|
|
|
Interest rate spread
(TE)
|
|
|
2.38
|
%
|
|
|
|
2.43
|
%
|
|
|
|
2.48
|
%
|
Net interest income
(TE) and net interest margin (TE)
|
|
$
|
1,025
|
|
2.47
|
%
|
|
|
$
|
1,023
|
|
2.52
|
%
|
|
|
$
|
1,006
|
|
2.62
|
%
|
TE adjustment
(b)
|
|
9
|
|
|
|
|
6
|
|
|
|
|
6
|
|
|
|
Net interest income,
GAAP basis
|
|
$
|
1,016
|
|
|
|
|
$
|
1,017
|
|
|
|
|
$
|
1,000
|
|
|
(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 21% for the three months ended September 30, 2021,
June 30, 2021, and September 30,
2020.
|
(c)
|
For purposes of these
computations, nonaccrual loans are included in average loan
balances.
|
(d)
|
Commercial and
industrial average balances include $137 million, $132 million, and
$129 million of assets from commercial credit cards for the three
months ended September 30, 2021, June 30, 2021, and
September 30, 2020, 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
|
Consolidated Average Balance Sheets, and Net Interest
Income and Yields/Rates From Continuing
Operations
|
(dollars in
millions)
|
|
|
Nine months ended September 30,
2021
|
|
|
Nine months ended September 30,
2020
|
|
|
Average
|
|
Yield/
|
|
|
Average
|
|
Yield/
|
|
|
Balance
|
Interest (a)
|
Rate (a)
|
|
|
Balance
|
Interest (a)
|
Rate (a)
|
Assets
|
|
|
|
|
|
|
|
|
|
Loans: (b),
(c)
|
|
|
|
|
|
|
|
|
|
Commercial and
industrial (d)
|
$
|
51,410
|
|
$
|
1,347
|
|
3.50
|
%
|
|
|
$
|
55,676
|
|
$
|
1,500
|
|
3.60
|
%
|
|
Real estate —
commercial mortgage
|
12,932
|
|
351
|
|
3.63
|
|
|
|
13,419
|
|
400
|
|
3.98
|
|
|
Real estate —
construction
|
2,111
|
|
58
|
|
3.65
|
|
|
|
1,804
|
|
55
|
|
4.06
|
|
|
Commercial lease
financing
|
4,041
|
|
89
|
|
2.93
|
|
|
|
4,546
|
|
107
|
|
3.15
|
|
|
Total commercial
loans
|
70,494
|
|
1,845
|
|
3.50
|
|
|
|
75,445
|
|
2,062
|
|
3.65
|
|
|
Real estate —
residential mortgage
|
11,320
|
|
246
|
|
2.89
|
|
|
|
7,801
|
|
210
|
|
3.59
|
|
|
Home equity
loans
|
9,089
|
|
257
|
|
3.78
|
|
|
|
9,894
|
|
301
|
|
4.07
|
|
|
Consumer direct
loans
|
4,969
|
|
173
|
|
4.65
|
|
|
|
4,089
|
|
165
|
|
5.38
|
|
|
Credit
cards
|
919
|
|
69
|
|
10.10
|
|
|
|
1,010
|
|
81
|
|
10.68
|
|
|
Consumer indirect
loans
|
3,771
|
|
91
|
|
3.22
|
|
|
|
4,779
|
|
135
|
|
3.78
|
|
|
Total consumer
loans
|
30,068
|
|
836
|
|
3.71
|
|
|
|
27,573
|
|
892
|
|
4.32
|
|
|
Total loans
|
100,562
|
|
2,681
|
|
3.56
|
|
|
|
103,018
|
|
2,954
|
|
3.83
|
|
|
Loans held for
sale
|
1,531
|
|
35
|
|
3.03
|
|
|
|
2,090
|
|
58
|
|
3.68
|
|
|
Securities available
for sale (b), (e)
|
33,553
|
|
398
|
|
1.60
|
|
|
|
22,297
|
|
365
|
|
2.25
|
|
|
Held-to-maturity
securities (b)
|
6,713
|
|
133
|
|
2.64
|
|
|
|
9,274
|
|
171
|
|
2.46
|
|
|
Trading account
assets
|
809
|
|
14
|
|
2.30
|
|
|
|
837
|
|
16
|
|
2.55
|
|
|
Short-term
investments
|
18,211
|
|
20
|
|
.15
|
|
|
|
7,412
|
|
14
|
|
.24
|
|
|
Other investments
(e)
|
616
|
|
5
|
|
1.14
|
|
|
|
642
|
|
3
|
|
.72
|
|
|
Total earning
assets
|
161,995
|
|
3,286
|
|
2.71
|
|
|
|
145,570
|
|
3,581
|
|
3.30
|
|
|
Allowance for loan
and lease losses
|
(1,427)
|
|
|
|
|
|
(1,403)
|
|
|
|
|
Accrued income and
other assets
|
16,626
|
|
|
|
|
|
15,579
|
|
|
|
|
Discontinued
assets
|
651
|
|
|
|
|
|
794
|
|
|
|
|
Total assets
|
$
|
177,845
|
|
|
|
|
|
$
|
160,540
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
NOW and money market
deposit accounts
|
$
|
83,599
|
|
$
|
30
|
|
.05
|
|
|
|
$
|
74,087
|
|
$
|
194
|
|
.35
|
|
|
Savings
deposits
|
6,730
|
|
1
|
|
.02
|
|
|
|
5,089
|
|
2
|
|
.04
|
|
|
Certificates of
deposit ($100,000 or more)
|
2,250
|
|
13
|
|
.77
|
|
|
|
5,036
|
|
74
|
|
1.96
|
|
|
Other time
deposits
|
2,644
|
|
8
|
|
.41
|
|
|
|
4,321
|
|
49
|
|
1.53
|
|
|
Total interest-bearing
deposits
|
95,223
|
|
52
|
|
.07
|
|
|
|
88,533
|
|
319
|
|
.48
|
|
|
Federal funds
purchased and securities sold under repurchase
agreements
|
242
|
|
—
|
|
.03
|
|
|
|
821
|
|
6
|
|
.95
|
|
|
Bank notes and other
short-term borrowings
|
764
|
|
6
|
|
.96
|
|
|
|
1,674
|
|
11
|
|
.87
|
|
|
Long-term debt
(f), (g)
|
12,469
|
|
168
|
|
1.80
|
|
|
|
12,733
|
|
225
|
|
2.45
|
|
|
Total interest-bearing
liabilities
|
108,698
|
|
226
|
|
.28
|
|
|
|
103,761
|
|
561
|
|
.73
|
|
|
Noninterest-bearing
deposits
|
47,800
|
|
|
|
|
|
35,922
|
|
|
|
|
Accrued expense and
other liabilities
|
2,853
|
|
|
|
|
|
2,518
|
|
|
|
|
Discontinued
liabilities (g)
|
651
|
|
|
|
|
|
794
|
|
|
|
|
Total liabilities
|
$
|
160,002
|
|
|
|
|
|
$
|
142,995
|
|
|
|
Equity
|
|
|
|
|
|
|
|
|
|
Key shareholders'
equity
|
$
|
17,843
|
|
|
|
|
|
$
|
17,545
|
|
|
|
|
Noncontrolling
interests
|
—
|
|
|
|
|
|
—
|
|
|
|
|
Total equity
|
17,843
|
|
|
|
|
|
17,545
|
|
|
|
|
Total liabilities and equity
|
$
|
177,845
|
|
|
|
|
|
$
|
160,540
|
|
|
|
Interest rate spread
(TE)
|
|
|
2.44
|
%
|
|
|
|
|
2.57
|
%
|
Net interest income
(TE) and net interest margin (TE)
|
|
$
|
3,060
|
|
2.53
|
%
|
|
|
|
$
|
3,020
|
|
2.78
|
%
|
TE adjustment
(b)
|
|
22
|
|
|
|
|
|
21
|
|
|
|
Net interest income,
GAAP basis
|
|
$
|
3,038
|
|
|
|
|
|
$
|
2,999
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 21% for the nine months ended September 30, 2021, and
September 30, 2020, respectively.
|
(c)
|
For purposes of these
computations, nonaccrual loans are included in average loan
balances.
|
(d)
|
Commercial and
industrial average balances include $131 million and $137 million
of assets from commercial credit cards for the nine months ended
September 30, 2021, and September 30, 2020,
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
|
|
Nine months ended
|
|
9/30/2021
|
6/30/2021
|
9/30/2020
|
|
9/30/2021
|
9/30/2020
|
Personnel
(a)
|
$
|
640
|
|
$
|
623
|
|
$
|
588
|
|
|
$
|
1,887
|
|
$
|
1,675
|
|
Net
occupancy
|
74
|
|
75
|
|
76
|
|
|
225
|
|
223
|
|
Computer
processing
|
67
|
|
71
|
|
59
|
|
|
211
|
|
170
|
|
Business services and
professional fees
|
56
|
|
51
|
|
49
|
|
|
157
|
|
142
|
|
Equipment
|
25
|
|
25
|
|
25
|
|
|
75
|
|
74
|
|
Operating lease
expense
|
30
|
|
31
|
|
33
|
|
|
95
|
|
103
|
|
Marketing
|
32
|
|
31
|
|
22
|
|
|
89
|
|
67
|
|
Intangible asset
amortization
|
15
|
|
14
|
|
15
|
|
|
44
|
|
50
|
|
Other
expense
|
173
|
|
155
|
|
170
|
|
|
476
|
|
477
|
|
Total noninterest
expense
|
$
|
1,112
|
|
$
|
1,076
|
|
$
|
1,037
|
|
|
$
|
3,259
|
|
$
|
2,981
|
|
Average full-time
equivalent employees (b)
|
17,009
|
|
17,003
|
|
17,097
|
|
|
17,034
|
|
16,758
|
|
(a)
|
Additional detail
provided in Personnel Expense table below.
|
(b)
|
The number of average
full-time equivalent employees has not been adjusted for
discontinued operations.
|
Personnel Expense
|
(in
millions)
|
|
|
|
|
|
|
|
|
Three months ended
|
|
Nine months ended
|
|
9/30/2021
|
6/30/2021
|
9/30/2020
|
|
9/30/2021
|
9/30/2020
|
Salaries and contract
labor
|
$
|
328
|
|
$
|
321
|
|
$
|
339
|
|
|
$
|
969
|
|
$
|
987
|
|
Incentive and
stock-based compensation
|
212
|
|
210
|
|
155
|
|
|
618
|
|
419
|
|
Employee
benefits
|
100
|
|
92
|
|
93
|
|
|
299
|
|
261
|
|
Severance
|
—
|
|
—
|
|
1
|
|
|
1
|
|
8
|
|
Total personnel
expense
|
$
|
640
|
|
$
|
623
|
|
$
|
588
|
|
|
$
|
1,887
|
|
$
|
1,675
|
|
Loan Composition
|
(dollars in
millions)
|
|
|
|
|
|
|
|
|
|
|
Percent change 9/30/2021 vs
|
|
9/30/2021
|
6/30/2021
|
9/30/2020
|
|
6/30/2021
|
9/30/2020
|
Commercial and
industrial (a)
|
$
|
49,553
|
|
$
|
50,672
|
|
$
|
55,025
|
|
|
(2.2)
|
%
|
(9.9)
|
%
|
Commercial real
estate:
|
|
|
|
|
|
|
Commercial
mortgage
|
13,674
|
|
12,965
|
|
13,059
|
|
|
5.5
|
|
4.7
|
|
Construction
|
2,120
|
|
2,132
|
|
1,947
|
|
|
(.6)
|
|
8.9
|
|
Total commercial real
estate loans
|
15,794
|
|
15,097
|
|
15,006
|
|
|
4.6
|
|
5.3
|
|
Commercial lease
financing (b)
|
3,982
|
|
4,061
|
|
4,450
|
|
|
(1.9)
|
|
(10.5)
|
|
Total commercial
loans
|
69,329
|
|
69,830
|
|
74,481
|
|
|
(.7)
|
|
(6.9)
|
|
Residential — prime
loans:
|
|
|
|
|
|
|
Real estate —
residential mortgage
|
14,204
|
|
12,131
|
|
8,715
|
|
|
17.1
|
|
63.0
|
|
Home equity
loans
|
8,747
|
|
9,047
|
|
9,488
|
|
|
(3.3)
|
|
(7.8)
|
|
Total residential —
prime loans
|
22,951
|
|
21,178
|
|
18,203
|
|
|
8.4
|
|
26.1
|
|
Consumer direct
loans
|
5,324
|
|
5,049
|
|
4,395
|
|
|
5.4
|
|
21.1
|
|
Credit
cards
|
928
|
|
923
|
|
970
|
|
|
.5
|
|
(4.3)
|
|
Consumer indirect
loans
|
77
|
|
3,750
|
|
5,032
|
|
|
(97.9)
|
|
(98.5)
|
|
Total consumer
loans
|
29,280
|
|
30,900
|
|
28,600
|
|
|
(5.2)
|
|
2.4
|
|
Total loans (c),
(d)
|
$
|
98,609
|
|
$
|
100,730
|
|
$
|
103,081
|
|
|
(2.1)
|
%
|
(4.3)
|
%
|
(a)
|
Loan balances include
$139 million, $135 million, and $128 million of commercial credit
card balances at September 30, 2021, June 30, 2021, and
September 30, 2020, respectively.
|
(b)
|
Commercial lease
financing includes receivables held as collateral for a secured
borrowing of $16 million, $19 million, and $18 million at
September 30, 2021, June 30, 2021, and September 30,
2020, respectively. Principal reductions are based on the cash
payments received from these related receivables.
|
(c)
|
Total loans exclude
loans of $602 million at September 30, 2021, $636 million at
June 30, 2021, and $743 million at September 30, 2020,
related to the discontinued operations of the education lending
business.
|
(d)
|
Accrued interest
of$211 million, $225 million, and $235 million at
September 30, 2021, June 30, 2021, and September 30,
2020, respectively, presented in "other assets" on the Consolidated
Balance Sheets is excluded from the amortized cost basis disclosed
in this table.
|
Loans Held for
Sale Composition
|
(dollars in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
Percent change
9/30/2021 vs
|
|
9/30/2021
|
6/30/2021
|
9/30/2020
|
|
6/30/2021
|
9/30/2020
|
Commercial and
industrial
|
$
|
122
|
|
$
|
233
|
|
$
|
336
|
|
|
(47.6)
|
%
|
(63.7)
|
%
|
Real estate —
commercial mortgage
|
1,446
|
|
1,073
|
|
1,031
|
|
|
34.8
|
|
40.3
|
|
Commercial lease
financing
|
—
|
|
—
|
|
1
|
|
|
N/M
|
|
N/M
|
|
Real estate —
residential mortgage
|
237
|
|
231
|
|
288
|
|
|
2.6
|
|
(17.7)
|
|
Consumer direct
loans
|
—
|
|
—
|
|
68
|
|
|
N/M
|
|
N/M
|
|
Total loans held for
sale
|
$
|
1,805
|
|
$
|
1,537
|
|
$
|
1,724
|
|
|
17.4
|
%
|
4.7
|
%
|
|
|
|
|
|
|
|
N/M = Not
Meaningful
|
Summary of Changes
in Loans Held for Sale
|
(in
millions)
|
|
|
|
|
|
|
|
3Q21
|
2Q21
|
1Q21
|
4Q20
|
3Q20
|
Balance at beginning
of period
|
$
|
1,537
|
|
$
|
2,296
|
|
$
|
1,583
|
|
$
|
1,724
|
|
$
|
2,007
|
|
New
originations
|
3,328
|
|
3,573
|
|
4,010
|
|
3,835
|
|
3,282
|
|
Transfers from (to)
held to maturity, net
|
3,305
|
|
(71)
|
|
83
|
|
(24)
|
|
75
|
|
Loan sales
|
(6,405)
|
|
(4,195)
|
|
(3,303)
|
|
(3,932)
|
|
(3,583)
|
|
Loan draws (payments),
net
|
8
|
|
(27)
|
|
(73)
|
|
(19)
|
|
(57)
|
|
Valuation and other
adjustments
|
32
|
|
(39)
|
|
(4)
|
|
—
|
|
—
|
|
Balance at end of
period
|
$
|
1,805
|
|
$
|
1,537
|
|
$
|
2,296
|
|
$
|
1,583
|
|
$
|
1,724
|
|
Summary of Loan and Lease Loss Experience From
Continuing Operations
|
(dollars in
millions)
|
|
|
|
|
|
|
|
|
Three months ended
|
|
Nine months ended
|
|
9/30/2021
|
6/30/2021
|
9/30/2020
|
|
9/30/2021
|
9/30/2020
|
Average loans
outstanding
|
$
|
100,138
|
|
$
|
100,814
|
|
$
|
104,919
|
|
|
$
|
100,562
|
|
$
|
103,018
|
|
Allowance for loan
and lease losses at the end of the prior period
|
$
|
1,220
|
|
$
|
1,438
|
|
$
|
1,708
|
|
|
$
|
1,626
|
|
$
|
900
|
|
Cumulative effect
from change in accounting principle (a)
|
—
|
|
—
|
|
—
|
|
|
—
|
|
204
|
|
Allowance for loan
and lease losses at the beginning of the period
|
1,220
|
|
1,438
|
|
1,708
|
|
|
1,626
|
|
1,104
|
|
Loans charged
off:
|
|
|
|
|
|
|
Commercial and
industrial
|
27
|
|
41
|
|
101
|
|
|
141
|
|
232
|
|
|
|
|
|
|
|
|
Real estate —
commercial mortgage
|
—
|
|
4
|
|
13
|
|
|
39
|
|
18
|
|
Real estate —
construction
|
—
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
Total commercial real
estate loans
|
—
|
|
4
|
|
13
|
|
|
39
|
|
18
|
|
Commercial lease
financing
|
1
|
|
—
|
|
10
|
|
|
5
|
|
16
|
|
Total commercial
loans
|
28
|
|
45
|
|
124
|
|
|
185
|
|
266
|
|
Real estate —
residential mortgage
|
(2)
|
|
1
|
|
—
|
|
|
(1)
|
|
2
|
|
Home equity
loans
|
1
|
|
4
|
|
4
|
|
|
7
|
|
10
|
|
Consumer direct
loans
|
7
|
|
7
|
|
8
|
|
|
22
|
|
30
|
|
Credit
cards
|
6
|
|
9
|
|
9
|
|
|
21
|
|
32
|
|
Consumer indirect
loans
|
26
|
|
5
|
|
6
|
|
|
38
|
|
22
|
|
Total consumer
loans
|
38
|
|
26
|
|
27
|
|
|
87
|
|
96
|
|
Total loans charged
off
|
66
|
|
71
|
|
151
|
|
|
272
|
|
362
|
|
Recoveries:
|
|
|
|
|
|
|
Commercial and
industrial
|
20
|
|
32
|
|
9
|
|
|
60
|
|
19
|
|
|
|
|
|
|
|
|
Real estate —
commercial mortgage
|
1
|
|
6
|
|
2
|
|
|
8
|
|
3
|
|
Real estate —
construction
|
—
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
Total commercial real
estate loans
|
1
|
|
6
|
|
2
|
|
|
8
|
|
3
|
|
Commercial lease
financing
|
6
|
|
—
|
|
—
|
|
|
7
|
|
1
|
|
Total commercial
loans
|
27
|
|
38
|
|
11
|
|
|
75
|
|
23
|
|
Real estate —
residential mortgage
|
1
|
|
—
|
|
1
|
|
|
2
|
|
1
|
|
Home equity
loans
|
2
|
|
1
|
|
3
|
|
|
4
|
|
6
|
|
Consumer direct
loans
|
2
|
|
2
|
|
2
|
|
|
6
|
|
6
|
|
Credit
cards
|
1
|
|
3
|
|
2
|
|
|
6
|
|
6
|
|
Consumer indirect
loans
|
4
|
|
5
|
|
4
|
|
|
14
|
|
12
|
|
Total consumer
loans
|
10
|
|
11
|
|
12
|
|
|
32
|
|
31
|
|
Total
recoveries
|
37
|
|
49
|
|
23
|
|
|
107
|
|
54
|
|
Net loan
charge-offs
|
(29)
|
|
(22)
|
|
(128)
|
|
|
(165)
|
|
(308)
|
|
Provision (credit)
for loan and lease losses
|
(107)
|
|
(196)
|
|
150
|
|
|
(377)
|
|
934
|
|
Allowance for loan
and lease losses at end of period
|
$
|
1,084
|
|
$
|
1,220
|
|
$
|
1,730
|
|
|
$
|
1,084
|
|
$
|
1,730
|
|
|
|
|
|
|
|
|
Liability for credit
losses on lending-related commitments at the end of the prior
period
|
$
|
152
|
|
$
|
178
|
|
$
|
198
|
|
|
$
|
197
|
|
$
|
68
|
|
Liability for credit
losses on contingent guarantees at the end of the prior
period
|
—
|
|
—
|
|
—
|
|
|
—
|
|
7
|
|
Cumulative effect from
change in accounting principle (a), (b)
|
—
|
|
—
|
|
—
|
|
|
—
|
|
66
|
|
Liability for credit
losses on lending-related commitments at beginning of
period
|
152
|
|
178
|
|
198
|
|
|
197
|
|
141
|
|
Provision (credit) for
losses on lending-related commitments
|
—
|
|
(26)
|
|
10
|
|
|
(45)
|
|
67
|
|
Liability for credit
losses on lending-related commitments at end of period
(c)
|
$
|
152
|
|
$
|
152
|
|
$
|
208
|
|
|
$
|
152
|
|
$
|
208
|
|
|
|
|
|
|
|
|
Total allowance for
credit losses at end of period
|
$
|
1,236
|
|
$
|
1,372
|
|
$
|
1,938
|
|
|
$
|
1,236
|
|
$
|
1,938
|
|
|
|
|
|
|
|
|
Net loan charge-offs
to average total loans
|
.11
|
%
|
.09
|
%
|
.49
|
%
|
|
.22
|
%
|
.40
|
%
|
Allowance for loan
and lease losses to period-end loans
|
1.10
|
|
1.21
|
|
1.68
|
|
|
1.10
|
|
1.68
|
|
Allowance for credit
losses to period-end loans
|
1.25
|
|
1.36
|
|
1.88
|
|
|
1.25
|
|
1.88
|
|
Allowance for loan
and lease losses to nonperforming loans
|
195.7
|
|
175.8
|
|
207.4
|
|
|
195.7
|
|
207.4
|
|
Allowance for credit
losses to nonperforming loans
|
223.1
|
|
197.7
|
|
232.4
|
|
|
223.1
|
|
232.4
|
|
|
|
|
|
|
|
|
Discontinued
operations — education lending business:
|
|
|
|
|
|
|
Loans charged
off
|
$
|
1
|
|
1
|
|
$
|
—
|
|
|
$
|
3
|
|
$
|
4
|
|
Recoveries
|
1
|
|
—
|
|
—
|
|
|
2
|
|
3
|
|
Net loan
charge-offs
|
$
|
—
|
|
(1)
|
|
$
|
—
|
|
|
(1)
|
|
$
|
(1)
|
|
(a)
|
The cumulative effect
from change in accounting principle relates to the January 1, 2020,
adoption of ASU 2016-13.
|
(b)
|
Nine months ended
September 30, 2020, excludes $4 million related to the provision
for other financial assets as a result of the change in accounting
principle.
|
(c)
|
Included in "Accrued
expense and other liabilities" on the balance sheet.
|
Asset Quality Statistics From Continuing
Operations
|
(dollars in
millions)
|
|
3Q21
|
2Q21
|
1Q21
|
4Q20
|
3Q20
|
Net loan
charge-offs
|
$
|
29
|
|
$
|
22
|
|
$
|
114
|
|
$
|
135
|
|
$
|
128
|
|
Net loan charge-offs
to average total loans
|
.11
|
%
|
.09
|
%
|
.46
|
%
|
.53
|
%
|
.49
|
%
|
Allowance for loan
and lease losses
|
$
|
1,084
|
|
$
|
1,220
|
|
$
|
1,438
|
|
$
|
1,626
|
|
$
|
1,730
|
|
Allowance for credit
losses (a)
|
1,236
|
|
1,372
|
|
1,616
|
|
1,823
|
|
1,938
|
|
Allowance for loan
and lease losses to period-end loans
|
1.10
|
%
|
1.21
|
%
|
1.42
|
%
|
1.61
|
%
|
1.68
|
%
|
Allowance for credit
losses to period-end loans
|
1.25
|
|
1.36
|
|
1.60
|
|
1.80
|
|
1.88
|
|
Allowance for loan
and lease losses to nonperforming loans
|
195.7
|
|
175.8
|
|
197.5
|
|
207.1
|
|
207.4
|
|
Allowance for credit
losses to nonperforming loans
|
223.1
|
|
197.7
|
|
222.0
|
|
232.2
|
|
232.4
|
|
Nonperforming loans
at period end
|
$
|
554
|
|
$
|
694
|
|
$
|
728
|
|
$
|
785
|
|
$
|
834
|
|
Nonperforming assets
at period end
|
599
|
|
738
|
|
790
|
|
937
|
|
1,003
|
|
Nonperforming loans
to period-end portfolio loans
|
.56
|
%
|
.69
|
%
|
.72
|
%
|
.78
|
%
|
.81
|
%
|
Nonperforming assets
to period-end portfolio loans plus OREO and other
nonperforming assets
|
.61
|
|
.73
|
|
.78
|
|
.92
|
|
.97
|
|
(a)
|
Includes the
allowance for loan and lease losses plus the liability for credit
losses on lending-related commitments.
|
Summary of Nonperforming Assets and Past Due Loans
From Continuing Operations
|
(dollars in
millions)
|
|
9/30/2021
|
6/30/2021
|
3/31/2021
|
12/31/2020
|
9/30/2020
|
Commercial and
industrial
|
$
|
253
|
|
$
|
355
|
|
$
|
387
|
|
$
|
385
|
|
$
|
459
|
|
|
|
|
|
|
|
Real estate —
commercial mortgage
|
49
|
|
66
|
|
66
|
|
104
|
|
104
|
|
Real estate —
construction
|
—
|
|
—
|
|
—
|
|
—
|
|
1
|
|
Total commercial real
estate loans
|
49
|
|
66
|
|
66
|
|
104
|
|
105
|
|
Commercial lease
financing
|
5
|
|
7
|
|
8
|
|
8
|
|
6
|
|
Total commercial
loans
|
307
|
|
428
|
|
461
|
|
497
|
|
570
|
|
Real estate —
residential mortgage
|
93
|
|
99
|
|
95
|
|
110
|
|
96
|
|
Home equity
loans
|
146
|
|
146
|
|
148
|
|
154
|
|
146
|
|
Consumer direct
loans
|
4
|
|
4
|
|
5
|
|
5
|
|
3
|
|
Credit
cards
|
3
|
|
3
|
|
3
|
|
2
|
|
2
|
|
Consumer indirect
loans
|
1
|
|
14
|
|
16
|
|
17
|
|
17
|
|
Total consumer
loans
|
247
|
|
266
|
|
267
|
|
288
|
|
264
|
|
Total nonperforming
loans
|
554
|
|
694
|
|
728
|
|
785
|
|
834
|
|
OREO
|
8
|
|
9
|
|
12
|
|
100
|
|
105
|
|
Nonperforming loans
held for sale
|
35
|
|
32
|
|
47
|
|
49
|
|
61
|
|
Other nonperforming
assets
|
2
|
|
3
|
|
3
|
|
3
|
|
3
|
|
Total nonperforming
assets
|
$
|
599
|
|
$
|
738
|
|
$
|
790
|
|
$
|
937
|
|
$
|
1,003
|
|
Accruing loans past
due 90 days or more
|
82
|
|
74
|
|
92
|
|
86
|
|
73
|
|
Accruing loans past
due 30 through 89 days
|
164
|
|
190
|
|
191
|
|
241
|
|
336
|
|
Restructured loans —
accruing and nonaccruing (a)
|
270
|
|
334
|
|
376
|
|
363
|
|
306
|
|
Restructured loans
included in nonperforming loans (a)
|
146
|
|
177
|
|
192
|
|
229
|
|
168
|
|
Nonperforming assets
from discontinued operations — education lending
business
|
4
|
|
5
|
|
5
|
|
5
|
|
6
|
|
Nonperforming loans
to period-end portfolio loans
|
.56
|
%
|
.69
|
%
|
.72
|
%
|
.78
|
%
|
.81
|
%
|
Nonperforming assets
to period-end portfolio loans plus OREO and other
nonperforming assets
|
.61
|
|
.73
|
|
.78
|
|
.92
|
|
.97
|
|
(a)
|
Restructured loans
(i.e., troubled debt restructuring) 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)
|
|
3Q21
|
2Q21
|
1Q21
|
4Q20
|
3Q20
|
Balance at beginning
of period
|
$
|
694
|
|
$
|
728
|
|
$
|
785
|
|
$
|
834
|
|
$
|
760
|
|
Loans placed on
nonaccrual status
|
116
|
|
186
|
|
196
|
|
300
|
|
387
|
|
Charge-offs
|
(66)
|
|
(74)
|
|
(135)
|
|
(160)
|
|
(150)
|
|
Loans sold
|
(17)
|
|
(10)
|
|
(13)
|
|
(9)
|
|
(6)
|
|
Payments
|
(136)
|
|
(92)
|
|
(37)
|
|
(83)
|
|
(83)
|
|
Transfers to
OREO
|
(1)
|
|
—
|
|
(3)
|
|
(3)
|
|
—
|
|
Transfers to
nonperforming loans held for sale
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Loans returned to
accrual status
|
(36)
|
|
(44)
|
|
(65)
|
|
(94)
|
|
(74)
|
|
Balance at end of
period
|
$
|
554
|
|
$
|
694
|
|
$
|
728
|
|
$
|
785
|
|
$
|
834
|
|
Line of Business Results
|
(dollars in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentage change 3Q21 vs.
|
|
3Q21
|
2Q21
|
1Q21
|
4Q20
|
3Q20
|
|
2Q21
|
3Q20
|
Consumer Bank
|
|
|
|
|
|
|
|
|
Summary of operations
|
|
|
|
|
|
|
|
|
Total revenue
(TE)
|
$
|
870
|
|
$
|
852
|
|
$
|
864
|
|
$
|
896
|
|
$
|
864
|
|
|
2.1
|
%
|
.7
|
%
|
Provision for credit
losses
|
(38)
|
|
(70)
|
|
(23)
|
|
(5)
|
|
(3)
|
|
|
45.7
|
|
N/M
|
Noninterest
expense
|
591
|
|
584
|
|
601
|
|
606
|
|
567
|
|
|
1.2
|
|
4.2
|
|
Net income (loss)
attributable to Key
|
241
|
|
257
|
|
217
|
|
225
|
|
229
|
|
|
(6.2)
|
|
5.2
|
|
Average loans and
leases
|
39,796
|
|
40,598
|
|
39,249
|
|
38,033
|
|
38,354
|
|
|
(2.0)
|
|
3.8
|
|
Average
deposits
|
89,156
|
|
88,412
|
|
85,033
|
|
82,845
|
|
82,829
|
|
|
.8
|
|
7.6
|
|
Net loan
charge-offs
|
35
|
|
34
|
|
36
|
|
28
|
|
23
|
|
|
2.9
|
|
52.2
|
|
Net loan charge-offs
to average total loans
|
.35
|
%
|
.34
|
%
|
.37
|
%
|
.29
|
%
|
.24
|
%
|
|
2.9
|
|
45.8
|
|
Nonperforming assets
at period end
|
$
|
254
|
|
$
|
274
|
|
$
|
277
|
|
$
|
300
|
|
$
|
281
|
|
|
(7.3)
|
|
(9.6)
|
|
Return on average
allocated equity
|
25.81
|
%
|
28.53
|
%
|
25.74
|
%
|
25.60
|
%
|
26.21
|
%
|
|
(9.5)
|
|
(1.5)
|
|
|
|
|
|
|
|
|
|
|
Commercial Bank
|
|
|
|
|
|
|
|
|
Summary of operations
|
|
|
|
|
|
|
|
|
Total revenue
(TE)
|
$
|
891
|
|
$
|
873
|
|
$
|
858
|
|
$
|
922
|
|
$
|
811
|
|
|
2.1
|
%
|
9.9
|
%
|
Provision for credit
losses
|
(69)
|
|
(131)
|
|
(67)
|
|
44
|
|
150
|
|
|
(47.3)
|
|
(187.3)
|
|
Noninterest
expense
|
470
|
|
451
|
|
443
|
|
499
|
|
447
|
|
|
4.2
|
|
5.1
|
|
Net income (loss)
attributable to Key
|
384
|
|
433
|
|
383
|
|
310
|
|
173
|
|
|
(11.3)
|
|
122.0
|
|
Average loans and
leases
|
59,914
|
|
59,953
|
|
61,221
|
|
63,432
|
|
66,378
|
|
|
(.1)
|
|
(9.7)
|
|
Average loans held
for sale
|
1,190
|
|
1,341
|
|
1,237
|
|
1,285
|
|
1,383
|
|
|
(11.3)
|
|
(14.0)
|
|
Average
deposits
|
56,546
|
|
54,814
|
|
51,894
|
|
52,489
|
|
51,585
|
|
|
3.2
|
|
9.6
|
|
Net loan
charge-offs
|
(6)
|
|
9
|
|
78
|
|
108
|
|
103
|
|
|
N/M
|
N/M
|
Net loan charge-offs
to average total loans
|
(.04)
|
%
|
.06
|
%
|
.52
|
%
|
.68
|
%
|
.62
|
%
|
|
N/M
|
N/M
|
Nonperforming assets
at period end
|
$
|
345
|
|
$
|
464
|
|
$
|
514
|
|
$
|
637
|
|
$
|
722
|
|
|
(25.6)
|
|
(52.2)
|
|
Return on average
allocated equity
|
18.68
|
%
|
20.74
|
%
|
17.41
|
%
|
23.79
|
%
|
13.35
|
%
|
|
(9.9)
|
|
39.9
|
|
TE = Taxable
Equivalent, N/A = Not Applicable, N/M = Not Meaningful
|
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SOURCE KeyCorp