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Consolidated Statements of Income - USD ($)
shares in Thousands, $ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
INTEREST INCOME        
Loans $ 980 $ 1,082 $ 2,006 $ 2,148
Loans held for sale 21 15 40 28
Securities available for sale 121 135 250 264
Held-to-maturity securities 56 67 118 135
Trading account assets 5 9 13 17
Short-term investments 7 17 13 33
Other investments 0 4 1 8
Total interest income 1,190 1,329 2,441 2,633
INTEREST EXPENSE        
Deposits 96 223 265 425
Federal funds purchased and securities sold under repurchase agreements 0 0 6 1
Bank notes and other short-term borrowings 5 5 10 9
Long-term debt 71 120 161 240
Total interest expense 172 348 442 675
NET INTEREST INCOME 1,018 981 1,999 1,958
Provision for credit losses 482 74 841 136
Net interest income after provision for credit losses 536 907 1,158 1,822
NONINTEREST INCOME        
Trust and investment services income 123 122 256 237
Investment banking and debt placement fees 156 163 272 273
Service charges on deposit accounts 68 83 152 165
Operating lease income and other leasing gains 60 44 90 81
Corporate services income 52 53 114 108
Cards and payments income 91 73 157 139
Corporate-owned life insurance income 35 33 71 65
Consumer mortgage income 62 15 82 26
Commercial mortgage servicing fees 12 19 30 37
Other income [1] 33 17 (55) 27
Total noninterest income 692 622 1,169 1,158
NONINTEREST EXPENSE        
Personnel 572 589 1,087 1,152
Net occupancy 71 73 147 145
Computer processing 56 56 111 110
Business services and professional fees 49 45 93 89
Equipment 25 24 49 48
Operating lease expense 34 32 70 58
Marketing 24 24 45 43
FDIC assessment 8 9 17 16
Intangible asset amortization 18 22 35 44
OREO expense, net 6 4 9 7
Other expense 150 141 281 270
Total noninterest expense 1,013 1,019 1,944 1,982
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 215 510 383 998
Income taxes 30 87 53 169
INCOME (LOSS) FROM CONTINUING OPERATIONS 185 423 330 829
Income (loss) from discontinued operations 2 2 3 3
NET INCOME (LOSS) 187 425 333 832
Less: Net income (loss) attributable to noncontrolling interests 0 0 0 0
NET INCOME (LOSS) ATTRIBUTABLE TO KEY 187 425 333 832
Income (loss) from continuing operations attributable to Key common shareholders 159 403 277 789
Net income (loss) attributable to Key common shareholders $ 161 $ 405 $ 280 $ 792
Per Common Share:        
Income (loss) from continuing operations attributable to Key common shareholders (in usd per share) $ 0.16 $ 0.40 $ 0.29 $ 0.79
Income (loss) from discontinued operations, net of taxes (in usd per share) 0 0 0 0
Net income (loss) attributable to Key common shareholders (in usd per share) [2] 0.17 0.40 0.29 0.79
Per Common Share — assuming dilution:        
Income (loss) from continuing operations attributable to Key common shareholders (in usd per share) 0.16 0.40 0.28 0.78
Income (loss) from discontinued operations, net of taxes (in usd per share) 0 0 0 0
Net income (loss) attributable to Key common shareholders (in usd per share) [2] 0.17 0.40 0.29 0.78
Cash dividends declared per common share (in usd per share) $ 0.185 $ 0.17 $ 0.370 $ 0.34
Weighted-average common shares outstanding (000) (in shares) 967,147 999,163 967,380 1,003,047
Effect of common share options and other stock awards (in shares) 4,994 8,801 6,892 9,318
Weighted-average common shares and potential common shares outstanding (in shares) [3] 972,141 1,007,964 974,272 1,012,365
[1]
For the three months ended June 30, 2020, we had no net securities gains (losses). For the six months ended June 30, 2020, net securities gains (losses) totaled $4 million. For the three and six months ended June 30, 2019, net securities gains (losses) totaled less than $1 million. For the three months ended June 30, 2020, and June 30, 2019, we 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.