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Consolidated Statements of Income - USD ($)
shares in Thousands, $ in Millions
3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
INTEREST INCOME        
Loans $ 1,073 $ 1,025 $ 3,221 $ 2,965
Loans held for sale 18 12 46 40
Securities available for sale 136 102 400 294
Held-to-maturity securities 64 72 199 213
Trading account assets 7 7 24 21
Short-term investments 16 15 49 31
Other investments 3 6 11 17
Total interest income 1,317 1,239 3,950 3,581
INTEREST EXPENSE        
Deposits 227 140 652 343
Federal funds purchased and securities sold under repurchase agreements 0 1 1 10
Bank notes and other short-term borrowings 4 4 13 17
Long-term debt 114 108 354 302
Total interest expense 345 253 1,020 672
NET INTEREST INCOME 972 986 2,930 2,909
Provision for credit losses 200 62 336 187
Net interest income after provision for credit losses 772 924 2,594 2,722
NONINTEREST INCOME        
Trust and investment services income 118 117 355 378
Investment banking and debt placement fees 176 166 449 464
Service charges on deposit accounts 86 85 251 265
Operating lease income and other leasing gains 42 35 123 61
Corporate services income 63 52 171 175
Cards and payments income 69 69 208 202
Corporate-owned life insurance income 32 34 97 98
Consumer mortgage income 14 9 32 23
Mortgage servicing fees 23 19 68 61
Other income [1] 27 23 54 143
Total noninterest income 650 609 1,808 1,870
NONINTEREST EXPENSE        
Personnel 547 553 1,699 1,733
Net occupancy 72 76 217 233
Computer processing 53 52 163 155
Business services and professional fees 43 43 132 135
Equipment 27 27 75 79
Operating lease expense 33 31 91 88
Marketing 26 26 69 77
FDIC assessment 7 21 23 63
Intangible asset amortization 26 23 70 77
OREO expense, net 3 3 10 5
Other expense 102 109 372 318
Total noninterest expense 939 964 2,921 2,963
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 483 569 1,481 1,629
Income taxes 70 87 239 252
INCOME (LOSS) FROM CONTINUING OPERATIONS 413 482 1,242 1,377
Income (loss) from discontinued operations 3 0 6 5
NET INCOME (LOSS) 416 482 1,248 1,382
Less: Net income (loss) attributable to noncontrolling interests 0 0 0 0
NET INCOME (LOSS) ATTRIBUTABLE TO KEY 416 482 1,248 1,382
Income (loss) from continuing operations attributable to Key common shareholders 383 468 1,172 1,334
Net income (loss) attributable to Key common shareholders $ 386 $ 468 $ 1,178 $ 1,339
Per Common Share:        
Income (loss) from continuing operations attributable to Key common shareholders (in usd per share) $ 0.39 $ 0.45 $ 1.17 $ 1.27
Income (loss) from discontinued operations, net of taxes (in usd per share) 0 0 0.01 0.01
Net income (loss) attributable to Key common shareholders (in usd per share) [2] 0.39 0.45 1.18 1.28
Per Common Share — assuming dilution:        
Income (loss) from continuing operations attributable to Key common shareholders (in usd per share) 0.38 0.45 1.16 1.26
Income (loss) from discontinued operations, net of taxes (in usd per share) 0 0 0.01 0.01
Net income (loss) attributable to Key common shareholders (in usd per share) [2] 0.39 0.45 1.17 1.26
Cash dividends declared per common share (in usd per share) $ 0.185 $ 0.17 $ 0.525 $ 0.395
Weighted-average common shares outstanding (000) (in shares) 988,319 1,036,479 998,268 1,048,397
Effect of common share options and other stock awards (in shares) 10,009 13,497 9,632 14,419
Weighted-average common shares and potential common shares outstanding (in shares) [3] 998,328 1,049,976 1,007,900 1,062,816
[1]
For the three and nine months ended September 30, 2019, net securities gains (losses) totaled $15 million. For the three and nine months ended September 30, 2018, net securities gains (losses) totaled less than $1 million. For the three and nine months ended September 30, 2019, and September 30, 2018, Key did not have any impairment losses related to securities.
[2]
EPS may not foot due to rounding.
[3]
Assumes conversion of Common Share options and other stock awards and/or convertible preferred stock, as applicable.