KeyCorp reported Q3/16 net income from continuing operations attributable to Key common shareholders of $165 million compared to $193 million for Q2/16, and $216 million for Q3/15. During the quarter, Key incurred merger-related charges totaling $207 million compared to $45 million in Q2/16.

The following highlights were excerpted from Key’s earnings report:

• KeyCorp’s third quarter results reflect its acquisition of First Niagara Financial Group effective August 1, 2016.
• Operating lease assets at the end of Q3/16 of $430 million was up almost 27% from $315 million at the end of the same quarter in 2015.
• Average commercial lease financing assets of $4,508 million in Q3/16 compared to $3,946 million in Q3/15. Interest and yield of $38 million and 3.33%, respectively, compared to $35 million and 3.57% in Q3/15.
• Average loans were up 5% from prior year, driven by an 11% increase in commercial, financial and agricultural loans, excluding the impact of First Niagara.
• Net interest income of $788 million was up $190 million in Q3/16 compared to the same quarter one year ago.
• Q3/16 net interest margin was 2.85% compared to 2.85% in Q3/15.

“Third quarter results reflect strong momentum and performance in Key’s core businesses, and we achieved a significant milestone with the completion of our First Niagara acquisition,” said Beth Mooney, chairman and CEO. “Excluding the impact from the acquisition and merger-related charges, Key’s revenue was up 6%, benefiting from solid loan growth and strong fee income, including a record quarter for investment banking and debt placement fees. Credit quality remained solid with net charge-offs as a percent of average loans remaining below our targeted range. Also, during the quarter, we leveraged Key’s strong capital position by reinitiating our share repurchase program.”