Condensed Financial Information of the Parent Company

12 Months Ended

Dec. 31, 2021

Condensed Financial Information Disclosure [Abstract]

Condensed Financial Information of the Parent Company

26. Condensed Financial Information of the Parent Company

CONDENSED BALANCE SHEETS

December 31, Dollars in millions	2021		2020
ASSETS
Cash and due from banks	$	2,293	$	3,799
Short-term investments	24		21
Securities available for sale	—		12
Other investments	77		43
Loans to:
Banks	50		50
Nonbank subsidiaries	16		16
Total loans	66		66
Investment in subsidiaries:
Banks	17,019		17,645
Nonbank subsidiaries	1,015		900
Total investment in subsidiaries	18,034		18,545
Goodwill	167		167
Corporate-owned life insurance	212		207
Derivative assets	76		100
Accrued income and other assets	309		299
Total assets	$	21,258	$	23,259
LIABILITIES
Accrued expense and other liabilities	$	532	$	505
Long-term debt due to:
Subsidiaries	483		500
Unaffiliated companies	2,820		4,273
Total long-term debt	3,303		4,773
Total liabilities	3,835		5,278
SHAREHOLDERS’ EQUITY (a)	17,423		17,981
Total liabilities and shareholders’ equity	$	21,258	$	23,259

(a)See Key’s Consolidated Statements of Changes in Equity.

CONDENSED STATEMENTS OF INCOME

Year ended December 31,
Dollars in millions	2021		2020		2019
INCOME
Dividends from subsidiaries:
Bank subsidiaries	$	1,925	$	1,250	$	1,204
Nonbank subsidiaries	50		—		70
Interest income from subsidiaries	1		4		9
Other income	36		8		11
Total income	2,012		1,262		1,294
EXPENSE
Interest on long-term debt with subsidiary trusts	13		18		22
Interest on other borrowed funds	65		114		151
Personnel and other expense	101		63		87
Total expense	179		195		260
Income (loss) before income taxes and equity in net income (loss) less dividends from subsidiaries	1,833		1,067		1,034
Income tax (expense) benefit	38		38		57
Income (loss) before equity in net income (loss) less dividends from subsidiaries	1,871		1,105		1,091
Equity in net income (loss) less dividends from subsidiaries	754		238		626
NET INCOME (LOSS)	2,625		1,343		1,717
Less: Net income attributable to noncontrolling interests	—		—		—
NET INCOME (LOSS) ATTRIBUTABLE TO KEY	$	2,625	$	1,343	$	1,717

.

CONDENSED STATEMENTS OF CASH FLOWS

Year ended December 31,
Dollars in millions	2021		2020		2019
OPERATING ACTIVITIES
Net income (loss) attributable to Key	$	2,625	$	1,343	$	1,717
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Deferred income taxes (benefit)	(22)		2		(43)
Stock-based compensation expense	9		11		8
Equity in net (income) loss less dividends from subsidiaries	(754)		(238)		(626)
Net (increase) decrease in other assets	13		(66)		39
Net increase (decrease) in other liabilities	48		12		11
Other operating activities, net	(414)		131		244
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES	1,505		1,195		1,350
INVESTING ACTIVITIES
Net (increase) decrease in securities available for sale and in short-term and other investments	(15)		(7)		(6)
Proceeds from sales, prepayments and maturities of securities available for sale	—		—		—
Net (increase) decrease in loans to subsidiaries	—		—		15
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES	(15)		(7)		9
FINANCING ACTIVITIES
Net proceeds from issuance of long-term debt	—		800		750
Payments on long-term debt	(997)		(1,003)		(300)
Repurchase of Treasury Shares	(1,176)		(170)		(868)
Net cash from the issuance (redemption) of Common Shares and preferred stock	—		—		435
Cash dividends paid	(823)		(829)		(804)
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES	(2,996)		(1,202)		(787)
NET INCREASE (DECREASE) IN CASH AND DUE FROM BANKS	(1,506)		(14)		572
CASH AND DUE FROM BANKS AT BEGINNING OF YEAR	3,799		3,813		3,241
CASH AND DUE FROM BANKS AT END OF YEAR	$	2,293	$	3,799	$	3,813

KeyCorp paid interest on borrowed funds totaling $130 million in 2021, $204 million in 2020, and $151 million in 2019.