Earnings Release
KeyCorp Reports Second Quarter 2017 Net Income Of $393 Million, Or $.36 Per Common Share
KeyCorp (KEY) today announced second quarter net income from continuing operations attributable to Key common shareholders of $393 million, or $.36 per common share, compared to $296 million or $.27 per common share, for the first quarter of 2017 and $193 million, or $.23 per common share, for the second quarter of 2016. During the second quarter of 2017, Key’s results included a number of notable items, including a gain related to our merchant services business, the finalization of purchase accounting, merger-related charges, and a charitable contribution. These notable items had a pre-tax net benefit of $43 million, or $.02 per common share for the second quarter of 2017.
"We were pleased with the strength and quality of our second quarter results, which reflect Key’s continued business momentum and realization of value from the First Niagara acquisition," said Chairman and Chief Executive Officer Beth Mooney. "We also made investments for growth across our franchise, including the repositioning of our merchant services business and the recent acquisition of HelloWallet."
"We continued to generate positive operating leverage versus the prior year and prior quarter, and our cash efficiency ratio improved to 59.3%, or 59.4%, excluding notable items," Mooney continued. "Revenue growth was driven by both net interest income and fee-based businesses, and importantly, we achieved $400 million in annualized cost savings from First Niagara. We remain on track to achieve an incremental $50 million in savings by early 2018, and remain confident in our ability to achieve our targets and continue to deliver value for our shareholders."
"Our risk and capital positions remained strong in the second quarter," added Mooney. "We increased our common share dividend by 12% while also repurchasing $94 million of common shares. We were pleased to receive no objection from the Federal Reserve on our 2017 Capital Plan, which includes two additional dividend increases, subject to Board approval, and an increased common share repurchase authorization."
Selected Financial Highlights
dollars in millions, except per share data
Change 2Q17 vs.
Income (loss) from continuing operations attributable to Key common shareholders
$
393
$
296
$
193
32.8% 103.6%
Income (loss) from continuing operations attributable to Key common shareholders per .36
.27
.23
33.3
56.5
common share -- assuming dilution
Return on average total assets from continuing operations
1.23%
.99%
.82%
N/A
N/A
Common Equity Tier 1 ratio (non-GAAP) (a), (b)
9.97
9.91
11.10
N/A
N/A
Book value at period end
$
13.02
$
12.71
$
13.08
2.4%
(.5)%
Net interest margin (TE) from continuing operations
3.30%
3.13%
2.76%
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 "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.
(b)
6/30/2017 ratio is estimated.
TE = Taxable Equivalent, N/A = Not Applicable
INCOME STATEMENT HIGHLIGHTS
dollars in millions
Change 2Q17 vs.
Net interest income (TE) $
987
$
929
$
605
6.2
%
63.1 %
Noninterest income
653
577
473
13.2 %
38.1 %
Total revenue
$
1,640
$
1,506
$
1,078
8.9
%
52.1 %
TE = Taxable Equivalent; N/M = Not Meaningful
Second quarter 2017 net interest income included $100 million of purchase accounting accretion related to the acquisition of First Niagara, including $42 million related to the finalization of previous purchase accounting estimates. First quarter 2017 results included $53 million of purchase accounting accretion.
Taxable-equivalent net interest income was $987 million for the second quarter of 2017, and the net interest margin was 3.30%, compared to taxable-equivalent net interest income of $605 million and a net interest margin of 2.76% for the second quarter of 2016, reflecting benefit from the First Niagara acquisition, including purchase accounting accretion, as well as higher earning asset yields and balances.
Compared to the first quarter of 2017, taxable-equivalent net interest income increased by $58 million, and the net interest margin increased by 17 basis points. The increase in net interest income and the net interest margin reflects an increase in purchase accounting accretion and higher earning asset yields, partly offset by a decline in loan fees and higher interest-bearing deposit costs, largely the result of an increase in commercial deposit rates and growth in higher-yielding deposit products. Net interest income also benefited from one additional day in the second quarter of 2017.
Excluding purchase accounting accretion, taxable-equivalent net interest income increased $282 million from the second quarter of 2016 and $11 million from the first quarter of 2017.
dollars in millions
Change 2Q17 vs.
Trust and investment services income
$ 134
$ 135
$ 110
(.7)%
21.8%
Investment banking and debt placement fees
135
127
98
6.3
37.8
Service charges on deposit accounts
90
87
68
3.4
32.4
Operating lease income and other leasing gains 30
23
18
30.4
66.7
Corporate services income
55
54
53
1.9
3.8
Cards and payments income
70
65
52
7.7
34.6
Corporate-owned life insurance income
33
30
28
10.0
17.9
Consumer mortgage income
6
6
3
--
100.0
Mortgage servicing fees
15
18
10
(16.7)
50.0
Net gains (losses) from principal investing
--
1
11
N/M
N/M
Other income
85
31
22
174.2
286.4
Total noninterest income
$ 653
$ 577
$ 473
13.2%
38.1%
Key’s noninterest income was $653 million for the second quarter of 2017, compared to $473 million for the year-ago quarter. Growth was largely driven by the acquisition of First Niagara, as well as core business momentum and a $64 million one-time gain from acquiring the remaining ownership interest in a merchant services joint venture. Investment banking and debt placement fees grew $37 million, related to strong commercial mortgage banking, underwriting, and advisory fees.
Compared to the first quarter of 2017, noninterest income increased by $76 million. The largest driver of the increase was a $64 million one-time gain related to Key’s merchant services business, realized in other income. Investment banking and debt placement fees continue to be a source of growth, up $8 million from the prior quarter, related to strong advisory fees. Operating lease income and other leasing gains grew $7 million, and cards and payments income increased $5 million.
dollars in millions
Change 2Q17 vs.
Personnel expense
$ 551
$ 556
$ 427
(.9)%
29.0%
Non-personnel expense
444
457
324
(2.8)
37.0
Total noninterest expense
$ 995
$ 1,013
$ 751
(1.8)
32.5
Merger-related charges
44
81
45
(45.7)
(2.2)
Total noninterest expense excluding merger-related charges $ 951
$ 932
$ 706
2.0%
34.7%
Key’s noninterest expense was $995 million for the second quarter of 2017, and included $44 million of merger-related charges. Merger-related charges for the quarter were made up of $31 million of personnel expense and $13 million of non-personnel expense, largely reflected in business services and professional fees and marketing expense.
Excluding merger-related charges, noninterest expense was $245 million higher than the second quarter of last year. The increase from the prior year, reflected in both personnel and non-personnel expense, was primarily driven by the acquisition of First Niagara. Higher incentive compensation related to stronger capital markets performance also contributed to the year-over-year increase.
Excluding merger-related charges, noninterest expense was $19 million higher than the first quarter of 2017, mostly related to seasonal trends, including higher marketing expense. Incentive and stock-based compensation and salaries expense increased but were more than offset by lower employee benefits expense. Other notable items which impacted the second quarter included a $20 million charitable contribution and $4 million benefit from purchase accounting finalization, both of which are reflected in other expense.
BALANCE SHEET HIGHLIGHTS
dollars in millions
Change 2Q17 vs.
Commercial and industrial (a) $
40,666
$
40,002
$
32,630
1.7%
24.6%
Other commercial loans
21,990
22,175
13,222
(.8)
66.3
Home equity loans
12,473
12,611
10,098
(1.1)
23.5
Other consumer loans
11,373
11,345
5,198
.2
118.8
Total loans
$
86,502
$
86,133
$
61,148
.4%
41.5%
(a) Commercial and industrial average loan balances include $117 million, $114 million, and $87 million of assets from commercial credit cards at June 30, 2017, March 31, 2017, and June 30, 2016, respectively.
During the second quarter of 2017, Key finalized the fair value of the First Niagara acquired loan portfolio, adjusting the discount from $548 million to $603 million. At June 30, 2017, $345 million of the fair value discount remained.
Average loans were $86.5 billion for the second quarter of 2017, an increase of $25.4 billion compared to the second quarter of 2016, primarily reflecting the impact of the First Niagara acquisition, as well as growth in commercial and industrial loans which was broad-based and spread across Key’s commercial lines of business.
Compared to the first quarter of 2017, average loans increased by $369 million. Commercial and industrial loans increased $664 million, with strength in middle market lending. Consumer loans decreased $110 million, mostly from continued declines in the home equity loan portfolio, largely the result of paydowns on home equity lines of credit.
dollars in millions
Change 2Q17 vs.
Non-time deposits
$
92,018
$
91,745
$
67,419
.3%
36.5%
Certificates of deposit ($100,000 or more)
6,111
5,627
3,233
8.6
89.0
Other time deposits
4,650
4,706
3,252
(1.2)
43.0
Total deposits
$
102,779
$
102,078
$
73,904
.7%
39.1%
Cost of total deposits
.26%
.23%
.19%
N/A
N/A
Average deposits totaled $102.8 billion for the second quarter of 2017, an increase of $28.9 billion compared to the year-ago quarter, primarily reflecting the acquisition of First Niagara and core retail and commercial deposit growth.
Compared to the first quarter of 2017, average deposits increased by $701 million, driven by growth in certificates of deposits and NOW and money market deposit accounts, partly offset by a decline in escrow deposits. During the quarter, Key also experienced a shift in deposit mix from noninterest-bearing and low-cost interest-bearing deposits to higher-yielding deposit products. On a period-end basis, total deposits decreased $1.1 billion compared to the linked-quarter, largely the result of seasonal deposit growth that occurred in the first quarter of 2017.
dollars in millions
Change 2Q17 vs.
Net loan charge-offs
$
66
$
58
$
43
13.8%
53.5%
Net loan charge-offs to average total loans
.31%
.27%
.28%
N/A
N/A
Nonperforming loans at period end (a)
$
507
$
573
$
619
(11.5)
(18.1)
Nonperforming assets at period end (a)
556
623
637
(10.8)
(12.7)
Allowance for loan and lease losses
870
870
854
.0
1.9
Allowance for loan and lease losses to nonperforming loans (a) 171.6%
151.8%
138.0%
N/A
N/A
Provision for credit losses
$
66
$
63
$
52
4.8%
26.9%
(a)
Nonperforming loan balances exclude $835 million, $812 million, and $11 million of purchased credit impaired loans at June 30, 2017, March 31, 2017, and June 30, 2016, respectively.
Key’s provision for credit losses was $66 million for the second quarter of 2017, compared to $52 million for the second quarter of 2016 and $63 million for the first quarter of 2017. Key’s allowance for loan and lease losses was $870 million, or 1.01% of total period-end loans, at June 30, 2017, compared to 1.38% at June 30, 2016, and 1.01% at March 31, 2017.
Net loan charge-offs for the second quarter of 2017 totaled $66 million, or .31% of average total loans. These results compare to $43 million, or .28%, for the second quarter of 2016, and $58 million, or .27%, for the first quarter of 2017.
At June 30, 2017, Key’s nonperforming loans totaled $507 million, which represented .59% of period-end portfolio loans. These results compare to 1.00% at June 30, 2016, and .67% at March 31, 2017. Nonperforming assets at June 30, 2017, totaled $556 million, and represented .64% of period-end portfolio loans and OREO and other nonperforming assets. These results compare to 1.03% at June 30, 2016, and .72% at March 31, 2017.
CAPITAL
Key’s estimated risk-based capital ratios included in the following table continued to exceed all "well-capitalized" regulatory benchmarks at June 30, 2017.
6/30/2017 3/31/2017 6/30/2016
Common Equity Tier 1 (a), (b)
9.97%
9.91%
11.10%
Tier 1 risk-based capital (a)
10.79
10.74
11.41
Total risk based capital (a)
12.71
12.69
13.63
Tangible common equity to tangible assets (b) 8.56
8.51
9.95
Leverage (a)
9.96
9.81
10.59
(a) 6/30/2017 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.
Key’s capital position remained strong throughout the first quarter. As shown in the preceding table, at June 30, 2017, Key’s estimated Common Equity Tier 1 and Tier 1 risk-based capital ratios stood at 9.97% and 10.79%, respectively. In addition, the tangible common equity ratio was 8.56% at June 30, 2017.
As a "standardized approach" banking organization, Key’s mandatory compliance with the final Basel III capital framework for U.S. banking organizations (the "Regulatory Capital Rules") 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 9.87% at June 30, 2017. 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 2Q17 vs.
Shares outstanding at beginning of period
1,097,479
1,079,314
842,290
1.7%
30.3%
Open market repurchases and return of shares under employee compensation plans
(5,072)
(8,673)
--
(41.5)
N/M
Shares issued under employee compensation plans (net of cancellations)
332
6,270
413
(94.7)
(19.6)
Common shares exchanged for Series A Preferred Stock
--
20,568
--
N/M
N/M
Shares outstanding at end of period
1,092,739
1,097,479
842,703
(.4)%
29.7%
Consistent with Key’s 2016 Capital Plan, during the second quarter of 2017, Key declared an increased dividend of $.095 per common share, representing a 12% increase compared to the first quarter of 2017. Key also completed $94 million of common share repurchases during the quarter, including $88 million of common share repurchases in the open market and $6 million of share repurchases related to employee equity compensation programs.
Key’s 2017 Capital Plan, which received no objection from the Federal Reserve, includes two common share dividend increases (subject to Board approval), as well as a common share repurchase program of up to $800 million. This authorization includes repurchases to offset issuances of common shares under our employee compensation plans. Repurchases are expected to be executed over the next four quarters.
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.
dollars in millions
Change 2Q17 vs.
Revenue from continuing operations (TE)
Key Community Bank
$
1,012
$
907
$
598
11.6%
69.2%
Key Corporate Bank
596
579
451
2.9
32.2
Other Segments
35
29
31
20.7
12.9
Total segments
1,643
1,515
1,080
8.4
52.1
Reconciling Items
(3)
(9)
(2)
N/M
N/M
Total
$
1,640
$
1,506
$
1,078
8.9%
52.1%
Income (loss) from continuing operations attributable to Key
Key Community Bank
$
197
$
146
$
80
34.9%
146.3%
Key Corporate Bank
222
182
135
22.0
64.4
Other Segments
28
21
25
33.3
12.0
Total segments
447
349
240
28.1
86.3
Reconciling Items (a)
(40)
(25)
(41)
N/M
N/M
Total
$
407
$
324
$
199
25.6%
104.5%
(a)
Reconciling items consists primarily of the unallocated portion of merger-related charges and items not allocated to the business segments because they do not reflect their normal operations.
TE = Taxable Equivalent, N/M = Not Meaningful
dollars in millions
Change 2Q17 vs.
Net interest income (TE)
$
676
$
630
$
392
7.3%
72.4%
Noninterest income
336
277
206
21.3
63.1
Total revenue (TE)
1,012
907
598
11.6
69.2
Provision for credit losses
47
47
25
--
88.0
Noninterest expense
652
628
445
3.8
46.5
Income (loss) before income taxes (TE) 313
232
128
34.9
144.5
Allocated income taxes (benefit) and TE adjustments
116
86
48
34.9
141.7
Net income (loss) attributable to Key
$
197
$
146
$
80
34.9%
146.3%
Loans and leases
$
47,431
$
47,036
$
30,936
.8%
53.3%
Total assets
51,419
50,963
32,963
.9
56.0
Deposits
79,716
79,393
53,794
.4
48.2
Assets under management at period end
$
37,613
$
37,417
$
34,535
.5%
8.9%
Additional Key Community Bank Data
dollars in millions
Change 2Q17 vs.
Trust and investment services income
$
99
$
98
$
73
1.0%
35.6%
Service charges on deposit accounts
77
75
56
2.7
37.5
Cards and payments income
60
55
46
9.1
30.4
Other noninterest income
100
49
31
104.1
222.6
Total noninterest income
$
336
$
277
$
206
21.3%
63.1%
NOW and money market deposit accounts
$
45,243
$
45,027
$
30,144
.5%
50.1%
Savings deposits
5,293
5,268
2,365
.5
123.8
Certificates of deposit ($100,000 or more)
4,016
3,878
2,383
3.6
68.5
Other time deposits
4,640
4,692
3,245
(1.1)
43.0
Noninterest-bearing deposits
20,524
20,528
15,657
--
31.1
Total deposits
$
79,716
$
79,393
$
53,794
.4%
48.2%
Average balance
$
12,330
$
12,456
$
9,908
Combined weighted-average loan-to-value ratio (at date of origination)
71%
70%
71%
Percent first lien positions
60
60
61
Automated teller machines
1,589
1,594
1,236
Key Community Bank Summary of Operations (2Q17 vs. 2Q16)
-- Positive operating leverage compared to prior year
-- Net income increased $117 million, or 146.3%, from prior year
• Average commercial and industrial loans increased $5.4 billion, or 41.2%, from the prior year
-- Average deposits increased $25.9 billion, or 48.2%, from the prior year
Key Community Bank recorded net income attributable to Key of $197 million for the second quarter of 2017, compared to $80 million for the year-ago quarter, benefiting from momentum in Key’s core businesses, as well as the impact of the First Niagara acquisition.
Taxable-equivalent net interest income increased by $284 million, or 72.4%, from the second quarter of 2016. The increase was primarily attributable to the acquisition of First Niagara, as well as the benefit from higher interest rates. Average loans and leases increased $16.5 billion, or 53.3%, largely driven by a $5.4 billion, or 41.2%, increase in commercial and industrial loans. Additionally, average deposits increased $25.9 billion, or 48.2%, from one year ago.
Noninterest income was up $130 million, or 63.1%, from the year-ago quarter, driven by the acquisition of First Niagara, including the addition of Key Insurance and Benefits Services. Strength in cards and payments and higher assets under management from market growth also contributed to the increase. The increase in other noninterest income was largely driven by the one-time gain related to Key’s merchant services business.
The provision for credit losses increased by $22 million, or 88.0%, and net loan charge-offs increased $30 million from the second quarter of 2016, primarily related to the acquisition of First Niagara.
Noninterest expense increased by $207 million, or 46.5%, from the year-ago quarter, largely driven by the acquisition of First Niagara, as well as core business activity and investments. Personnel expense increased $76 million, while non-personnel expense increased by $131 million, including higher intangible amortization expense and higher FDIC assessment expense.
dollars in millions
Change 2Q17 vs.
Net interest income (TE)
$
312
$
304
$
221
2.6%
41.2%
Noninterest income
284
275
230
3.3
23.5
Total revenue (TE)
596
579
451
2.9
32.2
Provision for credit losses
19
17
30
11.8
(36.7)
Noninterest expense
299
303
259
(1.3)
15.4
Income (loss) before income taxes (TE) 278
259
162
7.3
71.6
Allocated income taxes and TE adjustments
56
77
29
(27.3)
93.1
Net income (loss)
222
182
133
22.0
66.9
Less: Net income (loss) attributable to noncontrolling interests
--
--
(2)
N/M
N/M
Net income (loss) attributable to Key
$
222
$
182
$
135
22.0%
64.4%
Loans and leases
$
37,750
$
37,737
$
28,607
--
32.0%
Loans held for sale
1,000
1,097
591
(8.8)%
69.2
Total assets
44,177
44,173
33,908
--
30.3
Deposits
21,146
21,003
19,129
.7%
10.5%
TE = Taxable Equivalent, N/M = Not Meaningful
Additional Key Corporate Bank Data
dollars in millions
Change 2Q17 vs.
Trust and investment services income
$ 35
$ 37
$ 37
(5.4)%
(5.4)%
Investment banking and debt placement fees
134
124
94
8.1
42.6
Operating lease income and other leasing gains
22
21
15
4.8
46.7
Corporate services income
38
38
40
--
(5.0)
Service charges on deposit accounts
13
12
12
8.3
8.3
Cards and payments income
10
10
6
--
66.7
Payments and services income 61
60
58
1.7
5.2
Mortgage servicing fees
12
16
10
(25.0)
20.0
Other noninterest income
20
17
16
17.6
25.0
Total noninterest income
$ 284
$ 275
$ 230
3.3%
23.5%
Key Corporate Bank Summary of Operations (2Q17 vs. 2Q16)
-- Positive operating leverage compared to prior year
-- Average loan and lease balances up $9.1 billion, or 32%, from the prior year
-- Revenue up $145 million, or 32.2%, from the prior year
-- Investment banking and debt placement fees up $40 million, or 42.6%, from the prior year
Key Corporate Bank recorded net income attributable to Key of $222 million for the second quarter of 2017, compared to $135 million for the same period one year ago.
Taxable-equivalent net interest income increased by $91 million, or 41.2%, compared to the second quarter of 2016 driven by higher earning asset yields and balances. Average loan and lease balances increased $9.1 billion, or 32%, from the year-ago quarter, primarily driven by the First Niagara acquisition as well as growth in commercial and industrial loans. Average deposit balances increased $2 billion, or 10.5%, from the year-ago quarter, mostly driven by the First Niagara acquisition.
Noninterest income was up $54 million, or 23.5%, from the prior year. This growth was mostly due to $40 million of higher investment banking and debt placement fees related to stronger commercial mortgage banking, underwriting, and advisory fees, as well as an increase of $7 million in operating lease income and other leasing gains related to higher originations. Additional increases of $4 million in both cards and payments income and other noninterest income were partially offset by a $2 million decrease in trust and investment services income.
The provision for credit losses decreased $11 million, or 36.7%, compared to the second quarter of 2016 due to $8 million of lower net loan charge-offs and improvement in the oil and gas portfolio.
Noninterest expense increased by $40 million, or 15.4%, from the second quarter of 2016. The increase from the prior year, reflected in both personnel and non-personnel expense, was largely driven by the acquisition of First Niagara, higher performance-based compensation and various other items, including operating lease, FDIC, and cards and payments expenses.
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 $28 million for the second quarter of 2017, compared to $25 million for the same period last year, driven by increases in operating lease income and other leasing gains and corporate-owned life insurance income.
KeyCorp’s roots trace back 190 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 $135.8 billion at June 30, 2017.
Key provides deposit, lending, cash management, insurance, and investment services to individuals and businesses in 15 states under the name KeyBank National Association through a network of more than 1,200 branches and more than 1,500 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.
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, 2016, 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 9:00 a.m. ET, on Thursday, July 20, 2017. An audio replay of the call will be available through July 30, 2017.
For up-to-date company information, media contacts, and facts and figures about Key’s lines of business, visit our Media Newsroom at https://www.key.com/newsroom.
(dollars in millions, except per share amounts)
6/30/2017
3/31/2017
6/30/2016
Net interest income (TE)
$
987
$
929
$
605
Noninterest income
653
577
473
Total revenue (TE)
1,640
1,506
1,078
Provision for credit losses
66
63
52
Noninterest expense
995
1,013
751
Income (loss) from continuing operations attributable to Key
407
324
199
Income (loss) from discontinued operations, net of taxes (a)
5
--
3
Net income (loss) attributable to Key
412
324
202
Income (loss) from continuing operations attributable to Key common shareholders
393
296
193
Income (loss) from discontinued operations, net of taxes (a)
5
--
3
Net income (loss) attributable to Key common shareholders
398
296
196
Income (loss) from continuing operations attributable to Key common shareholders
$
.36
$
.28
$
.23
Income (loss) from discontinued operations, net of taxes (a)
--
--
--
Net income (loss) attributable to Key common shareholders (b)
.37
.28
.23
Income (loss) from continuing operations attributable to Key common shareholders -- assuming dilution .36
.27
.23
Income (loss) from discontinued operations, net of taxes -- assuming dilution (a)
--
--
--
Net income (loss) attributable to Key common shareholders -- assuming dilution (b)
.36
.27
.23
Cash dividends declared
.095
.085
.085
Book value at period end
13.02
12.71
13.08
Tangible book value at period end
10.40
10.21
11.81
Market price at period end
18.74
17.78
11.05
From continuing operations:
Return on average total assets
1.23
%
.99
%
.82
%
Return on average common equity
11.12
8.76
7.15
Return on average tangible common equity (c)
13.80
10.98
7.94
Net interest margin (TE)
3.30
3.13
2.76
Cash efficiency ratio (c)
59.3
65.8
69.0
From consolidated operations:
Return on average total assets
1.23
%
.98
%
.82
%
Return on average common equity
11.26
8.76
7.26
Return on average tangible common equity (c)
13.98
10.98
8.06
Net interest margin (TE)
3.28
3.11
2.74
Loan to deposit (d)
87.2
85.6
85.3
Capital ratios at period end
Key shareholders’ equity to assets
11.23
%
11.14
%
11.18
%
Key common shareholders’ equity to assets
10.48
10.37
10.90
Tangible common equity to tangible assets (c)
8.56
8.51
9.95
Common Equity Tier 1 (c), (e)
9.97
9.91
11.10
Tier 1 risk-based capital (e)
10.79
10.74
11.41
Total risk-based capital (e)
12.71
12.69
13.63
Leverage (e)
9.96
9.81
10.59
Asset quality -- from continuing operations
Net loan charge-offs
$
66
$
58
$
43
Net loan charge-offs to average loans
.31
%
.27
%
.28
%
Allowance for loan and lease losses
$
870
$
870
$
854
Allowance for credit losses
918
918
904
Allowance for loan and lease losses to period-end loans
1.01
%
1.01
%
1.38
%
Allowance for credit losses to period-end loans
1.06
1.07
1.46
Allowance for loan and lease losses to nonperforming loans (f)
171.6
151.8
138.0
Allowance for credit losses to nonperforming loans (f)
181.1
160.2
146.0
Nonperforming loans at period-end (f)
$
507
$
573
$
619
Nonperforming assets at period-end (f)
556
623
637
Nonperforming loans to period-end portfolio loans (f)
.59
%
.67
%
1.00
%
Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets (f)
.64
.72
1.03
Assets under management
$
37,613
$
37,417
$
34,535
Average full-time equivalent employees
18,344
18,386
13,419
Taxable-equivalent adjustment
$
14
$
11
$
8
Financial Highlights (continued)
(dollars in millions, except per share amounts)
Net interest income (TE)
$
1,916
$
1,217
Noninterest income
1,230
904
Total revenue (TE)
3,146
2,121
Provision for credit losses
129
141
Noninterest expense
2,008
1,454
Income (loss) from continuing operations attributable to Key
731
386
Income (loss) from discontinued operations, net of taxes (a)
5
4
Net income (loss) attributable to Key
736
390
Income (loss) from continuing operations attributable to Key common shareholders
$
689
$
375
Income (loss) from discontinued operations, net of taxes (a)
5
4
Net income (loss) attributable to Key common shareholders
694
379
Income (loss) from continuing operations attributable to Key common shareholders
$
.64
$
.45
Income (loss) from discontinued operations, net of taxes (a)
--
--
Net income (loss) attributable to Key common shareholders (b)
.64
.45
Income (loss) from continuing operations attributable to Key common shareholders -- assuming dilution .63
.44
Income (loss) from discontinued operations, net of taxes -- assuming dilution (a)
--
--
Net income (loss) attributable to Key common shareholders -- assuming dilution (b)
.63
.45
Cash dividends paid
.18
.16
From continuing operations:
Return on average total assets
1.11
%
.81
%
Return on average common equity
9.97
7.01
Return on average tangible common equity (c)
12.43
7.79
Net interest margin (TE)
3.21
2.83
Cash efficiency ratio (c)
62.4
67.8
From consolidated operations:
Return on average total assets
1.11
%
.80
%
Return on average common equity
10.04
7.08
Return on average tangible common equity (c)
12.52
7.87
Net interest margin (TE)
3.19
2.80
Asset quality -- from continuing operations
Net loan charge-offs
124
89
Net loan charge-offs to average total loans
.29
%
.30
%
Average full-time equivalent employees
18,365
13,411
Taxable-equivalent adjustment
25
16
(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.
(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)
June 30, 2017, ratio is estimated.
(f)
Nonperforming loan balances exclude $835 million, $812 million, and $11 million of purchased credit impaired loans at June 30, 2017, March 31, 2017, and June 30, 2016, 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 average tangible common equity," "Common Equity Tier 1," "pre-provision net revenue," certain financial measures excluding merger-related charges and/or other notable items, and "cash efficiency ratio."
Notable items include certain revenue or expense items that may occur in a reporting period which management does not consider indicative of ongoing financial performance. Management believes it is useful to consider certain financial metrics with and without merger-related charges and/or other notable items in order to enable a better understanding of Company results, increase comparability of period-to-period results, and to evaluate and forecast those results.
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. 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 credit losses makes it easier to analyze the results by presenting them on a more comparable basis.
As previously disclosed, Key completed its purchase of First Niagara on August 1, 2016. The definitive agreement and plan of merger to acquire First Niagara was originally announced on October 30, 2015. As a result of this transaction, Key has recognized merger-related charges. The table below shows the computation of noninterest expense excluding merger-related charges, return on average tangible common equity excluding merger-related charges, return on average assets from continuing operations excluding merger-related charges, cash efficiency ratio excluding merger-related charges, and pre-provision net revenue excluding merger-related charges. For the second quarter of 2017, merger-related charges are included in the total for "notable items," the detail of which is provided below. Management believes that eliminating the effects of the merger-related charges and other notable items 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 charges. 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
Six months ended
6/30/2017
3/31/2017
6/30/2016
6/30/2017
6/30/2016
Tangible common equity to tangible assets at period end
Key shareholders’ equity (GAAP)
$
15,253
$
14,976
$
11,313
Less:
Intangible assets (a)
2,866
2,751
1,074
Preferred Stock (b)
1,009
1,009
281
Tangible common equity (non-GAAP)
$
11,378
$
11,216
$
9,958
Total assets (GAAP)
$
135,824
$
134,476
$
101,150
Less:
Intangible assets (a)
2,866
2,751
1,074
Tangible assets (non-GAAP)
$
132,958
$
131,725
$
100,076
Tangible common equity to tangible assets ratio (non-GAAP)
8.56
%
8.51
%
9.95
%
Common Equity Tier 1 at period end
Key shareholders’ equity (GAAP)
$
15,253
$
14,976
$
11,313
Less:
Preferred Stock (b)
1,009
1,009
281
Common Equity Tier 1 capital before adjustments and deductions
14,244
13,967
11,032
Less:
Goodwill, net of deferred taxes
2,417
2,379
1,031
Intangible assets, net of deferred taxes
252
194
30
Net unrealized gains (losses) on available-for-sale securities, net of deferred taxes
(144)
(179)
129
Accumulated gains (losses) on cash flow hedges, net of deferred taxes
(64)
(76)
77
Amounts in accumulated other comprehensive income (loss) attributed to
pension and postretirement benefit costs, net of deferred taxes (334)
(335)
(362)
Total Common Equity Tier 1 capital (c)
$
12,106
$
11,973
$
10,126
Net risk-weighted assets (regulatory) (c)
$
121,484
$
120,852
$
91,195
Common Equity Tier 1 ratio (non-GAAP) (c)
9.97
%
9.91
%
11.10
%
Merger-related charges
$
(44)
$
(81)
$
(45)
$
(125)
$
(69)
Merchant services gain
64
--
--
64
--
Purchase accounting finalization, net
43
--
--
43
--
Charitable contribution
(20)
--
--
(20)
--
Total notable items
$
43
$
(81)
$
(45)
$
(38)
$
(69)
Income taxes
16
(30)
(17)
(14)
(26)
Total notable items after tax
$
27
$
(51)
$
(28)
$
(24)
$
(43)
GAAP to Non-GAAP Reconciliations (continued)
Three months ended
Six months ended
6/30/2017
3/31/2017
6/30/2016
6/30/2017
6/30/2016
Pre-provision net revenue
Net interest income (GAAP)
$
973
$
918
$
597
$
1,891
$
1,201
Plus:
Taxable-equivalent adjustment
14
11
8
25
16
Noninterest income
653
577
473
1,230
904
Less:
Noninterest expense
995
1,013
751
2,008
1,454
Pre-provision net revenue from continuing operations (non-GAAP)
$
645
$
493
$
327
$
1,138
$
667
Plus:
Notable items
(43)
81
45
38
69
Pre-provision net revenue from continuing operations excluding notable items (non-GAAP)
$
602
$
574
$
372
$
1,176
$
736
Average tangible common equity
Average Key shareholders’ equity (GAAP)
$
15,200
$
15,184
$
11,147
$
15,192
$
11,050
Less:
Intangible assets (average) (d)
2,756
2,772
1,076
2,764
1,077
Preferred Stock (average)
1,025
1,480
290
1,251
290
Average tangible common equity (non-GAAP)
$
11,419
$
10,932
$
9,781
$
11,177
$
9,683
Return on average tangible common equity from continuing operations
Net income (loss) from continuing operations attributable to Key common shareholders (GAAP)
$
393
$
296
$
193
$
689
$
375
Plus:
Notable items, after tax
(27)
51
28
24
43
Net income (loss) from continuing operations attributable to Key common shareholders excluding
notable items (non-GAAP)
$
366
$
347
$
221
$
713
$
418
Average tangible common equity (non-GAAP)
11,419
10,932
9,781
11,177
9,683
Return on average tangible common equity from continuing operations (non-GAAP)
13.80
%
10.98
%
7.94
%
12.43
%
7.79
%
Return on average tangible common equity from continuing operations excluding notable items
12.86
12.87
9.09
12.86
8.68
Return on average tangible common equity consolidated
Net income (loss) attributable to Key common shareholders (GAAP)
$
398
$
296
$
196
$
694
$
379
Average tangible common equity (non-GAAP)
11,419
10,932
9,781
11,177
9,683
Return on average tangible common equity consolidated (non-GAAP)
13.98
%
10.98
%
8.06
%
12.52
%
7.87
%
Noninterest expense (GAAP)
$
995
$
1,013
$
751
$
2,008
$
1,454
Less:
Intangible asset amortization
22
22
7
44
15
Adjusted noninterest expense (non-GAAP)
973
991
744
1,964
1,439
Less:
Notable items (e)
60
81
45
141
69
Adjusted noninterest expense excluding notable items (non-GAAP)
$
913
$
910
$
699
$
1,823
$
1,370
Net interest income (GAAP)
$
973
$
918
$
597
$
1,891
$
1,201
Plus:
Taxable-equivalent adjustment
14
11
8
25
16
Noninterest income
653
577
473
1,230
904
Total taxable-equivalent revenue (non-GAAP)
1,640
1,506
1,078
3,146
2,121
Plus:
Notable items (f)
(103)
--
--
(103)
--
Adjusted total taxable-equivalent revenue excluding notable items (non-GAAP)
$
1,537
$
1,506
$
1,078
$
3,043
$
2,121
Cash efficiency ratio (non-GAAP)
59.3
%
65.8
%
69.0
%
62.4
%
67.8
%
Cash efficiency ratio excluding notable items (non-GAAP)
59.4
60.4
64.8
59.9
64.6
Return on average total assets from continuing operations excluding notable items
Income from continuing operations attributable to Key (GAAP)
$
407
$
324
$
199
$
731
$
386
Plus:
Notable items, after tax
(27)
51
28
24
43
Income from continuing operations attributable to Key excluding notable items, after tax $
380
$
375
$
227
$
755
$
429
Average total assets from continuing operations (GAAP)
$
132,491
$
132,741
$
97,413
$
132,615
$
95,945
Return on average total assets from continuing operations excluding notable items (non-GAAP)
1.15
%
1.15
%
.94
%
1.15
%
.90
%
GAAP to Non-GAAP Reconciliations (continued)
Common Equity Tier 1 under the Regulatory Capital Rules ("RCR") (estimates)
Common Equity Tier 1 under current RCR
$
12,106
Adjustments from current RCR to the fully phased-in RCR:
Deferred tax assets and other intangible assets (g)
(66)
Common Equity Tier 1 anticipated under the fully phased-in RCR (h)
$
12,040
Net risk-weighted assets under current RCR
$
121,484
Adjustments from current RCR to the fully phased-in RCR:
Mortgage servicing assets (i)
603
Total risk-weighted assets anticipated under the fully phased-in RCR (h) $
121,993
Common Equity Tier 1 ratio under the fully phased-in RCR (h)
9.87
%
Operating leverage excluding notable items
Total revenue (TE)
$ 1,640
$ 1,506
$ 1,078
Less: Notable items (f)
103
--
--
Total revenue (TE) excluding notable items
$ 1,537
$ 1,506
$ 1,078
2.1 %
42.6 %
Noninterest expense
$ 995
$ 1,013
$ 751
Less: Notable items (e)
60
81
45
Noninterest expense excluding notable items
$ 935
$ 932
$ 706
.3
%
32.4 %
Operating leverage excluding notable items (non-GAAP) (j)
1.8 %
10.2 %
(a)
For the three months ended June 30, 2017, March 31, 2017, and June 30, 2016, intangible assets exclude $33 million, $38 million, and $36 million, respectively, of period-end purchased credit card receivables.
(b)
Net of capital surplus.
(c)
June 30, 2017, amount is estimated.
(d)
For the three months ended June 30, 2017, March 31, 2017, and June 30, 2016, average intangible assets exclude $36 million, $40 million, and $38 million, respectively, of average purchased credit card receivables. For the six months ended June 30, 2017, and June 30, 2016, average intangible assets exclude $38 million and $40 million, respectively, of average purchased credit card receivables.
(e)
Notable items for the three months ended June 30, 2017, includes $44 million of merger-related expense, $20 million charitable contribution, and a credit of $4 million related to purchase accounting finalization.
(f)
Notable items for the three months ended June 30, 2017, includes $64 million related to the merchant services gain and $39 million related to purchase accounting finalization.
(g)
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.
(h)
The anticipated amount of regulatory capital and risk-weighted assets is based upon the federal banking agencies’ Regulatory Capital Rules (as fully phased-in on January 1, 2019); Key is subject to the Regulatory Capital Rules under the "standardized approach."
(i)
Item is included in the 10%/15% exceptions bucket calculation and is risk-weighted at 250%.
(j)
Operating leverage excluding notable items is calculated as the difference in the change in total revenue (TE) excluding notable items from the change in noninterest expense excluding notable items.
GAAP = U.S. generally accepted accounting principles
Consolidated Balance Sheets
6/30/2017
3/31/2017
6/30/2016
Loans
$
86,503
$
86,125
$
62,098
Loans held for sale
1,743
1,384
442
Securities available for sale
18,024
18,431
14,552
Held-to-maturity securities
10,638
10,186
4,832
Trading account assets
1,081
921
965
Short-term investments
2,522
2,525
6,599
Other investments
732
689
577
Total earning assets
121,243
120,261
90,065
Allowance for loan and lease losses
(870)
(870)
(854)
Cash and due from banks
601
549
496
Premises and equipment
919
935
742
Operating lease assets
691
563
399
Other intangible assets
435
362
50
Corporate-owned life insurance
4,100
4,087
3,568
Derivative assets
636
578
1,234
Accrued income and other assets
4,147
4,064
2,673
Discontinued assets
1,458
1,520
1,717
Total assets
$
135,824
$
134,476
$
101,150
Deposits in domestic offices:
NOW and money market deposit accounts
$
53,342
$
55,095
$
40,195
Savings deposits
7,056
6,306
2,355
Certificates of deposit ($100,000 or more) 6,286
5,859
3,381
Other time deposits
4,605
4,694
3,267
Total interest-bearing deposits
71,289
71,954
49,198
Noninterest-bearing deposits
31,532
32,028
26,127
Total deposits
102,821
103,982
75,325
Federal funds purchased and securities sold under repurchase agreements
1,780
442
360
Bank notes and other short-term borrowings
924
943
687
Derivative liabilities
308
255
746
Accrued expense and other liabilities
1,475
1,552
1,326
Long-term debt
13,261
12,324
11,388
Total liabilities
120,569
119,498
89,832
Preferred stock
1,025
1,025
290
Common shares
1,257
1,257
1,017
Capital surplus
6,310
6,287
3,835
Retained earnings
9,878
9,584
9,166
Treasury stock, at cost
(2,711)
(2,623)
(2,881)
Accumulated other comprehensive income (loss)
(506)
(554)
(114)
Key shareholders’ equity
15,253
14,976
11,313
Noncontrolling interests
2
2
5
Total equity
15,255
14,978
11,318
Total liabilities and equity
$
135,824
$
134,476
$
101,150
Common shares outstanding (000)
1,092,739
1,097,479
842,703
Consolidated Statements of Income
(dollars in millions, except per share amounts)
Three months ended
Six months ended
6/30/2017
3/31/2017
6/30/2016
6/30/2017
6/30/2016
Loans
$
948
$
877
$
567
$
1,825
$
1,129
Loans held for sale
9
13
5
22
13
Securities available for sale
90
95
74
185
149
Held-to-maturity securities
55
51
24
106
48
Trading account assets
7
7
6
14
13
Short-term investments
5
3
6
8
10
Total interest income
1,117
1,050
684
2,167
1,367
Federal funds purchased and securities sold under repurchase agreements --
1
--
1
--
Bank notes and other short-term borrowings
4
5
3
9
5
Long-term debt
74
68
50
142
96
Total interest expense
144
132
87
276
166
Net interest income
973
918
597
1,891
1,201
Provision for credit losses
66
63
52
129
141
Net interest income after provision for credit losses
907
855
545
1,762
1,060
Trust and investment services income
134
135
110
269
219
Investment banking and debt placement fees
135
127
98
262
169
Service charges on deposit accounts
90
87
68
177
133
Operating lease income and other leasing gains
30
23
18
53
35
Corporate services income
55
54
53
109
103
Cards and payments income
70
65
52
135
98
Corporate-owned life insurance income
33
30
28
63
56
Consumer mortgage income
6
6
3
12
5
Mortgage servicing fees
15
18
10
33
22
Net gains (losses) from principal investing
--
1
11
1
11
Other income (a)
85
31
22
116
53
Total noninterest income
653
577
473
1,230
904
Personnel
551
556
427
1,107
831
Net occupancy
78
87
59
165
120
Computer processing
55
60
45
115
88
Business services and professional fees
45
46
40
91
81
Operating lease expense
21
19
14
40
27
Intangible asset amortization
22
22
7
44
15
Other expense
142
153
106
295
196
Total noninterest expense
995
1,013
751
2,008
1,454
Income (loss) from continuing operations before income taxes
565
419
267
984
510
Income taxes
158
94
69
252
125
Income (loss) from continuing operations
407
325
198
732
385
Income (loss) from discontinued operations, net of taxes
5
--
3
5
4
Net income (loss)
412
325
201
737
389
Less:
Net income (loss) attributable to noncontrolling interests
--
1
(1)
1
(1)
Net income (loss) attributable to Key
$
412
$
324
$
202
$
736
$
390
Income (loss) from continuing operations attributable to Key common shareholders
$
393
$
296
$
193
$
689
$
375
Net income (loss) attributable to Key common shareholders
398
296
196
694
379
Income (loss) from continuing operations attributable to Key common shareholders
$
.36
$
.28
$
.23
$
.64
$
.45
Income (loss) from discontinued operations, net of taxes
--
--
--
--
--
Net income (loss) attributable to Key common shareholders (b)
.37
.28
.23
.64
.45
Per common share -- assuming dilution
Income (loss) from continuing operations attributable to Key common shareholders
$
.36
$
.27
$
.23
$
.63
$
.44
Income (loss) from discontinued operations, net of taxes
--
--
--
--
--
Net income (loss) attributable to Key common shareholders (b)
.36
.27
.23
.63
.45
Cash dividends declared per common share
$
.095
$
.085
$
.085
$
.18
$
.16
Weighted-average common shares outstanding (000)
1,076,203
1,068,609
831,899
1,083,486
829,640
Effect of common share options and other stock awards
16,836
17,931
6,597
15,808
7,138
Weighted-average common shares and potential common shares outstanding (000) (c)
1,093,039
1,086,540
838,496
1,099,294
836,778
(a)
For the three months ended June 30, 2017, net securities gains (losses) totaled $1 million. For the three months ended March 31, 2017, net securities gains (losses) totaled $1 million. For the three months ended June 30, 2016, net securities gains (losses) totaled less than $1 million. For the three months ended June 30, 2017, March 31, 2017, and June 30, 2016, Key did not have any impairment losses related to securities.
(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
Second Quarter 2017
First Quarter 2017
Second Quarter 2016
Balance
Interest (a) Yield/Rate (a)
Balance
Interest (a) Yield/Rate (a)
Balance
Interest (a) Yield/Rate (a)
Commercial and industrial (d)
$
40,666
$
409
4.04
%
$
40,002
$
373
3.77
%
$
32,630
$
270
3.32
%
Real estate -- commercial mortgage
15,096
187
4.97
15,187
164
4.39
8,404
80
3.85
Real estate -- construction
2,204
31
5.51
2,353
26
4.54
869
8
3.78
Commercial lease financing
4,690
50
4.33
4,635
44
3.76
3,949
37
3.77
Total commercial loans
62,656
677
4.34
62,177
607
3.95
45,852
395
3.47
Real estate -- residential mortgage
5,509
52
3.77
5,520
54
3.94
2,253
22
4.11
Home equity loans
12,473
135
4.31
12,611
131
4.22
10,098
102
4.04
Consumer direct loans
1,743
31
7.07
1,762
30
6.97
1,599
26
6.53
Credit cards
1,044
29
11.04
1,067
29
11.06
792
21
10.58
Consumer indirect loans
3,077
38
5.02
2,996
37
4.91
554
9
6.56
Total consumer loans
23,846
285
4.77
23,956
281
4.75
15,296
180
4.74
Total loans
86,502
962
4.46
86,133
888
4.17
61,148
575
3.78
Loans held for sale
1,082
9
3.58
1,188
13
4.28
611
5
3.18
Securities available for sale (b), (e)
17,997
90
1.97
19,181
95
1.95
14,268
74
2.08
Held-to-maturity securities (b)
10,469
55
2.09
9,988
51
2.04
4,883
24
1.98
Trading account assets
1,042
7
3.00
968
7
2.75
967
6
2.28
Short-term investments
1,970
5
.96
1,610
3
.79
5,559
6
.45
Other investments (e)
687
3
1.87
709
4
2.26
610
2
1.54
Total earning assets
119,749
1,131
3.78
119,777
1,061
3.57
88,046
692
3.16
Allowance for loan and lease losses
(864)
(855)
(833)
Accrued income and other assets
13,606
13,819
10,200
Discontinued assets
1,477
1,540
1,738
Total assets
$
133,968
$
134,281
$
99,151
NOW and money market deposit accounts
$
54,416
34
.25
$
54,295
32
.24
$
39,687
16
.17
Savings deposits
6,854
4
.21
6,351
1
.10
2,375
--
.02
Certificates of deposit ($100,000 or more) 6,111
19
1.23
5,627
16
1.16
3,233
11
1.39
Other time deposits
4,650
9
.77
4,706
9
.76
3,252
7
.85
Total interest-bearing deposits
72,031
66
.36
70,979
58
.33
48,547
34
.29
Federal funds purchased and securities
466
--
.23
795
1
.32
337
--
.01
sold under repurchase agreements
Bank notes and other short-term borrowings 1,216
4
1.43
1,802
5
1.06
694
3
1.39
Long-term debt (f), (g)
11,046
74
2.68
10,833
68
2.54
9,294
50
2.25
Total interest-bearing liabilities
84,759
144
.68
84,409
132
.63
58,872
87
.60
Noninterest-bearing deposits
30,748
31,099
25,357
Accrued expense and other liabilities
1,782
2,048
2,032
Discontinued liabilities (g)
1,477
1,540
1,738
Total liabilities
118,766
119,096
87,999
Key shareholders’ equity
15,200
15,184
11,147
Noncontrolling interests
2
1
5
Total equity
15,202
15,185
11,152
Total liabilities and equity
$
133,968
$
134,281
$
99,151
Interest rate spread (TE)
3.10
%
2.94
%
2.56
%
Net interest income (TE) and net interest margin (TE)
987
3.30
%
929
3.13
%
605
2.76
%
Net interest income, GAAP basis
$
973
$
918
$
597
(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 and industrial average balances include $117 million, $114 million, and $87 million of assets from commercial credit cards for the three months ended June 30, 2017, March 31, 2017, and June 30, 2016, 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
Six months ended June 30, 2017
Six months ended June 30, 2016
Balance
Interest (a) Yield/Rate (a)
Balance
Interest (a) Yield/ Rate (a)
Commercial and industrial (d)
$
40,336
$
782
3.90
%
$
32,110
$
533
3.33
%
Real estate -- commercial mortgage
15,142
351
4.68
8,271
157
3.81
Real estate -- construction
2,278
57
5.01
942
18
3.96
Commercial lease financing
4,662
94
4.04
3,953
73
3.71
Total commercial loans
62,418
1,284
4.14
45,276
781
3.47
Real estate -- residential mortgage
5,514
106
3.85
2,245
46
4.15
Home equity loans
12,542
266
4.27
10,169
205
4.05
Consumer direct loans
1,752
61
7.02
1,596
52
6.53
Credit cards
1,055
58
11.05
788
42
10.65
Consumer indirect loans
3,037
75
4.97
578
19
6.50
Total consumer loans
23,900
566
4.76
15,376
364
4.75
Total loans
86,318
1,850
4.31
60,652
1,145
3.79
Loans held for sale
1,135
22
3.95
718
13
3.66
Securities available for sale (b), (e)
18,586
185
1.96
14,238
149
2.10
Held-to-maturity securities (b)
10,230
106
2.07
4,850
48
2.00
Trading account assets
1,005
14
2.88
892
13
2.83
Short-term investments
1,791
8
.88
4,495
10
.45
Other investments (e)
698
7
2.07
629
5
1.64
Total earning assets
119,763
2,192
3.67
86,474
1,383
3.21
Allowance for loan and lease losses
(860)
(818)
Accrued income and other assets
13,712
10,289
Discontinued assets
1,508
1,771
Total assets
$
134,123
$
97,716
NOW and money market deposit accounts
$
54,356
66
.24
$
38,698
31
.16
Savings deposits
6,604
5
.16
2,362
--
.02
Certificates of deposit ($100,000 or more)
5,871
35
1.20
2,997
21
1.38
Other time deposits
4,677
18
.77
3,226
13
.82
Total interest-bearing deposits
71,508
124
.35
47,283
65
.28
Federal funds purchased and securities sold under repurchase agreements 629
1
.28
387
--
.04
Bank notes and other short-term borrowings
1,508
9
1.21
643
5
1.50
Long-term debt (f), (g)
10,940
142
2.61
8,930
96
2.22
Total interest-bearing liabilities
84,585
276
.66
57,243
166
.59
Noninterest-bearing deposits
30,922
25,468
Accrued expense and other liabilities
1,914
2,177
Discontinued liabilities (g)
1,509
1,771
Total liabilities
118,930
86,659
Key shareholders’ equity
15,192
11,050
Noncontrolling interests
1
7
Total liabilities and equity
$
134,123
$
97,716
Interest rate spread (TE)
3.01
%
2.62
%
Net interest income (TE) and net interest margin (TE)
1,916
3.21
%
1,217
2.83
%
Net interest income, GAAP basis
$
1,891
$
1,201
(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 and industrial average balances include $115 million and $86 million of assets from commercial credit cards for the six months ended June 30, 2017, and June 30, 2016, 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
Three months ended
Six months ended
6/30/2017 3/31/2017
6/30/2016 6/30/2017
6/30/2016
Personnel (a)
$
551
$
556
$
427
$
1,107
$
831
Net occupancy
78
87
59
165
120
Computer processing
55
60
45
115
88
Business services and professional fees
45
46
40
91
81
Operating lease expense
21
19
14
40
27
Intangible asset amortization
22
22
7
44
15
Other expense
142
153
106
295
196
Total noninterest expense
$
995
$
1,013
$
751
$
2,008
$
1,454
Merger-related charges (b)
44
81
45
125
69
Total noninterest expense excluding merger-related charges $
951
$
932
$
706
$
1,883
$
1,385
Average full-time equivalent employees (c)
18,344
18,386
13,419
18,365
13,411
(a) Additional detail provided in Personnel Expense table below.
(b) Additional detail provide in Merger-Related Charges table below.
(c) The number of average full-time equivalent employees has not been adjusted for discontinued operations.
Three months ended
Six months ended
6/30/2017 3/31/2017 6/30/2016 6/30/2017
6/30/2016
Salaries and contract labor
$
332
$
324
$
266
$
656
$
510
Incentive and stock-based compensation
137
127
101
264
190
Employee benefits
76
96
58
172
126
Total personnel expense
$
551
$
556
$
427
$
1,107
$
831
Merger-related charges
31
30
35
61
51
Total personnel expense excluding merger-related charges $
520
$
526
$
392
$
1,046
$
780
Three months ended
Six months ended
6/30/2017 3/31/2017 6/30/2016 6/30/2017
6/30/2016
Business services and professional fees
6
5
5
11
12
Computer processing
2
5
--
7
--
Other non-personnel expense
--
30
2
30
2
Noninterest expense
44
81
45
125
69
Total merger-related charges
$
44
$
81
$
45
$
125
$
69
Percent change 6/30/2017 vs.
6/30/2017
3/31/2017
6/30/2016
3/31/2017 6/30/2016
Commercial and industrial (a)
$
40,914
$
40,112
$
33,376
2.0
% 22.6
%
Commercial mortgage
14,813
15,260
8,582
(2.9)
72.6
Construction
2,168
2,270
881
(4.5)
146.1
Total commercial real estate loans
16,981
17,530
9,463
(3.1)
79.4
Commercial lease financing (b)
4,737
4,665
3,988
1.5
18.8
Total commercial loans
62,632
62,307
46,827
.5
33.8
Residential -- prime loans:
Real estate -- residential mortgage 5,517
5,507
2,285
.2
141.4
Home equity loans
12,405
12,541
10,062
(1.1)
23.3
Total residential -- prime loans
17,922
18,048
12,347
(.7)
45.2
Consumer direct loans
1,755
1,735
1,584
1.2
10.8
Credit cards
1,049
1,037
813
1.2
29.0
Consumer indirect loans
3,145
2,998
527
4.9
496.8
Total consumer loans
23,871
23,818
15,271
.2
56.3
Total loans (c), (d)
$
86,503
$
86,125
$
62,098
.4
% 39.3
%
(a) Loan balances include $118 million, $114 million, and $88 million of commercial credit card balances at June 30, 2017, March 31, 2017, and June 30, 2016, respectively.
(b) Commercial lease financing includes receivables held as collateral for a secured borrowing of $47 million, $55 million, and $102 million at June 30, 2017, March 31, 2017, and June 30, 2016, respectively. Principal reductions are based on the cash payments received from these related receivables.
(c) At June 30, 2017, total loans include purchased loans of $17.8 billion, of which $835 million were purchased credit impaired. At March 31, 2017, total loans include purchased loans of $19.0 billion, of which $812 million were purchased credit impaired. At June 30, 2016, total loans include purchased loans of $104 million, of which $11 million were purchased credit impaired.
(d) Total loans exclude loans of $1.4 billion at June 30, 2017, $1.5 billion at March 31, 2017, and $1.7 billion at June 30, 2016, related to the discontinued operations of the education lending business.
Loans Held for Sale Composition
Percent change 6/30/2017 vs.
6/30/2017
3/31/2017
6/30/2016 3/31/2017 6/30/2016
Commercial and industrial
$
338
$
171
$
150
97.7
% 125.3
%
Real estate -- commercial mortgage
1,332
1,150
270
15.8
393.3
Commercial lease financing
10
1
3
900.0
233.3
Real estate -- residential mortgage 63
62
19
1.6
231.6
Total loans held for sale (a)
$
1,743
$
1,384
$
442
25.9
% 294.3
%
(a)
Total loans held for sale include Real estate -- residential mortgage loans held for sale at fair value of $63 million at June 30, 2017, and $62 million at March 31, 2017.
Summary of Changes in Loans Held for Sale
Balance at beginning of period
$
1,384
$
1,104
$
1,137
$
442
$
684
New originations
2,876
2,563
2,846
2,857
1,539
Transfers from (to) held to maturity, net (7)
17
11
2
22
Loan sales
(2,507)
(2,299)
(2,889)
(2,180)
(1,802)
Loan draws (payments), net
(3)
(1)
(1)
(32)
(1)
Balance at end of period (a)
$
1,743
$
1,384
$
1,104
$
1,137
$
442
(a) Total loans held for sale include Real estate -- residential mortgage loans held for sale at fair value of $63 million at June 30, 2017, and $62 million at March 31, 2017, December 31, 2016, and September 30, 2016.
Summary of Loan and Lease Loss Experience From Continuing Operations
Three months ended
Six months ended
6/30/2017
3/31/2017
6/30/2016
6/30/2017
6/30/2016
Average loans outstanding
$
86,502
$
86,133
$
61,148
$
86,318
$
60,652
Allowance for loan and lease losses at beginning of period
$
870
$
858
$
826
$
858
$
796
Commercial and industrial
40
32
35
72
61
Real estate -- commercial mortgage
3
--
2
3
3
Real estate -- construction
--
--
--
--
--
Total commercial real estate loans
3
--
2
3
3
Commercial lease financing
1
7
3
8
6
Total commercial loans
44
39
40
83
70
Real estate -- residential mortgage
4
(2)
1
2
3
Consumer direct loans
8
10
6
18
12
Consumer indirect loans
5
11
2
16
6
Total consumer loans
38
38
24
76
54
Total loans charged off
82
77
64
159
124
Commercial and industrial
2
5
3
7
6
Real estate -- commercial mortgage
--
--
6
--
8
Real estate -- construction
--
1
--
1
1
Total commercial real estate loans
--
1
6
1
9
Commercial lease financing
--
2
2
2
2
Total commercial loans
2
8
11
10
17
Real estate -- residential mortgage
1
2
--
3
2
Consumer direct loans
2
1
2
3
3
Consumer indirect loans
4
4
3
8
4
Total consumer loans
14
11
10
25
18
Total recoveries
16
19
21
35
35
Net loan charge-offs
(66)
(58)
(43)
(124)
(89)
Provision (credit) for loan and lease losses
66
70
71
136
147
Foreign currency translation adjustment
--
--
--
--
--
Allowance for loan and lease losses at end of period
$
870
$
870
$
854
$
870
$
854
Liability for credit losses on lending-related commitments at beginning of period $
48
$
55
$
69
$
55
$
56
Provision (credit) for losses on lending-related commitments
--
(7)
(19)
(7)
(6)
Liability for credit losses on lending-related commitments at end of period (a)
$
48
$
48
$
50
$
48
$
50
Total allowance for credit losses at end of period
$
918
$
918
$
904
$
918
$
904
Net loan charge-offs to average total loans
.31
%
.27
%
.28
%
.29
%
.30
%
Allowance for loan and lease losses to period-end loans
1.01
1.01
1.38
1.01
1.38
Allowance for credit losses to period-end loans
1.06
1.07
1.46
1.06
1.46
Allowance for loan and lease losses to nonperforming loans
171.6
151.8
138.0
171.6
138.0
Allowance for credit losses to nonperforming loans
181.1
160.2
146.0
181.1
146.0
Discontinued operations -- education lending business:
Loans charged off
$
4
$
6
$
6
$
10
$
15
Net loan charge-offs
$
(2)
$
(4)
$
(4)
$
(6)
$
(10)
(a) Included in "Accrued expense and other liabilities" on the balance sheet.
Asset Quality Statistics From Continuing Operations
Net loan charge-offs
$
66
$
58
$
72
$
44
$
43
Net loan charge-offs to average total loans
.31
%
.27
%
.34
%
.23
%
.28
%
Allowance for loan and lease losses
$
870
$
870
$
858
$
865
$
854
Allowance for credit losses (a)
918
918
913
918
904
Allowance for loan and lease losses to period-end loans
1.01
%
1.01
%
1.00
%
1.01
%
1.38
%
Allowance for credit losses to period-end loans
1.06
1.07
1.06
1.07
1.46
Allowance for loan and lease losses to nonperforming loans (b)
171.6
151.8
137.3
119.6
138.0
Allowance for credit losses to nonperforming loans (b)
181.1
160.2
146.1
127.0
146.0
Nonperforming loans at period end (b)
$
507
$
573
$
625
$
723
$
619
Nonperforming assets at period end (b)
556
623
676
760
637
Nonperforming loans to period-end portfolio loans (b)
.59
%
.67
%
.73
%
.85
%
1.00
%
Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets (b) .64
.72
.79
.89
1.03
(a) Includes the allowance for loan and lease losses plus the liability for credit losses on lending-related unfunded commitments.
(b) Nonperforming loan balances exclude $835 million, $812 million, $865 million, $959 million, and $11 million of purchased credit impaired loans at June 30, 2017, March 31, 2017, December 31, 2016, September 30, 2016, and June 30, 2016, respectively.
Summary of Nonperforming Assets and Past Due Loans From Continuing Operations
6/30/2017
3/31/2017
12/31/2016
9/30/2016
6/30/2016
Commercial and industrial
$
178
$
258
$
297
$
335
$
321
Real estate -- commercial mortgage
34
32
26
32
14
Real estate -- construction
4
2
3
17
25
Total commercial real estate loans
38
34
29
49
39
Commercial lease financing
11
5
8
13
10
Total commercial loans
227
297
334
397
370
Real estate -- residential mortgage
58
54
56
72
54
Home equity loans
208
207
223
225
189
Consumer direct loans
2
3
6
2
1
Consumer indirect loans
10
9
4
24
3
Total consumer loans
280
276
291
326
249
Total nonperforming loans (a)
507
573
625
723
619
Other nonperforming assets
1
1
0
2
3
Total nonperforming assets (a)
$
556
$
623
$
676
$
760
$
637
Accruing loans past due 90 days or more
$
85
$
79
$
87
$
49
$
70
Accruing loans past due 30 through 89 days
340
312
404
317
203
Restructured loans -- accruing and nonaccruing (b)
333
302
280
304
277
Restructured loans included in nonperforming loans (b)
193
161
141
149
133
Nonperforming assets from discontinued operations -- education lending business
5
4
5
5
5
Nonperforming loans to period-end portfolio loans (a)
.59
%
.67
%
.73
%
.85
%
1.00
%
Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets (a) .64
.72
.79
.89
1.03
(a) Nonperforming loan balances exclude $835 million, $812 million, $865 million, $959 million, and $11 million, of purchased credit impaired loans at June 30, 2017, March 31, 2017, December 31, 2016, September 30, 2016, and June 30, 2016, 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
Balance at beginning of period
$
573
$
625
$
723
$
619
$
676
Loans placed on nonaccrual status
143
218
170
78
124
Nonperforming loans acquired from First Niagara (a) --
--
(31)
150
--
Charge-offs
(82)
(77)
(81)
(53)
(64)
Payments
(84)
(59)
(30)
(32)
(75)
Transfers to OREO
(8)
(11)
(21)
(5)
(6)
Transfers to other nonperforming assets
--
--
--
--
--
Loans returned to accrual status
(35)
(115)
(96)
(34)
(36)
Balance at end of period (b)
$
507
$
573
$
625
$
723
$
619
(a) During the fourth quarter of 2016, Key adjusted the estimated fair value of the First Niagara acquired loan portfolio recorded during the third quarter of 2016, resulting in a $31 million decrease in the balance of acquired nonperforming loans.
(b) Nonperforming loan balances exclude $835 million, $812 million, $865 million, $959 million, and $11 million of purchased credit impaired loans at June 30, 2017, March 31, 2017, December 31, 2016, September 30, 2016, and June 30, 2016, respectively.
2Q17
1Q17
4Q16
3Q16
2Q16
1Q17
2Q16
Total revenue (TE)
$
1,012
$
907
$
902
$
783
$
598
11.6
% 69.2
%
Provision for credit losses
47
47
48
37
25
--
88.0
Noninterest expense
652
628
682
589
445
3.8
46.5
Net income (loss) attributable to Key
197
146
108
98
80
34.9
146.3
Average loans and leases
47,431
47,036
47,031
41,548
30,936
.8
53.3
Average deposits
79,716
79,393
79,358
69,397
53,794
.4
48.2
Net loan charge-offs
47
43
42
31
17
9.3
176.5
Net loan charge-offs to average total loans .40
% .37
% .36
% .30
% .22
%
N/A
N/A
Nonperforming assets at period end
$
406
$
395
$
412
$
428
$
651
2.8
(37.6)
Return on average allocated equity
16.62
% 12.61
% 9.05
% 10.95
% 11.76
%
N/A
N/A
Average full-time equivalent employees
10,899
10,804
11,198
9,805
7,331
.9
48.7
Total revenue (TE)
$
596
$
579
$
630
$
556
$
451
2.9
% 32.2
%
Provision for credit losses
19
17
20
25
30
11.8
(36.7)
Noninterest expense
299
303
326
310
259
(1.3)
15.4
Net income (loss) attributable to Key
222
182
222
159
135
22.0
64.4
Average loans and leases
37,750
37,737
36,773
34,561
28,607
--
32.0
Average loans held for sale
1,000
1,097
1,223
1,103
591
(8.8)
69.2
Average deposits
21,146
21,003
23,172
22,708
19,129
.7
10.5
Net loan charge-offs
19
14
26
12
27
35.7
(29.6)
Net loan charge-offs to average total loans .20
% .15
% .28
% .14
% .38
%
N/A
N/A
Nonperforming assets at period end
$
119
$
197
$
244
$
318
$
355
(39.6)
(66.5)
Return on average allocated equity
31.29
% 25.06
% 30.89
% 26.72
% 26.23
%
N/A
N/A
Average full-time equivalent employees
2,364
2,384
2,380
2,330
2,138
(.8)
10.6
TE = Taxable Equivalent, N/A = Not Applicable, N/M = Not Meaningful
View original content:http://www.prnewswire.com/news-releases/keycorp-reports-second-quarter-2017-net-income-of-393-millio
SOURCE KeyCorp
https://rt.prnewswire.com/rt.gif?NewsItemId=CL45192&Transmission_Id=201707200630PR_NEWS_USPR_____CL45192&DateId=20170720
