KeyBank 2014 Annual Report Download - page 43

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS (the “MD&A”)
Page Number
Introduction 33
Terminology 33
Selected financial data 34
Economic overview 35
Long-term financial goals 36
Corporate strategy 36
Strategic developments 37
Highlights of Our 2014 Performance 38
Financial performance 38
Results of Operations 42
Net interest income 42
Noninterest income 46
Noninterest expense 49
Income taxes 50
Line of Business Results 51
Key Community Bank summary of operations 51
Key Corporate Bank summary of operations 53
Other Segments 55
Financial Condition 56
Loans and loans held for sale 56
Securities 65
Other investments 67
Deposits and other sources of funds 67
Capital 68
Off-Balance Sheet Arrangements and Aggregate Contractual Obligations 73
Off-balance sheet arrangements 73
Contractual obligations 74
Guarantees 74
Risk Management 75
Overview 75
Market risk management 76
Liquidity risk management 82
Credit risk management 86
Operational and compliance risk management 93
Fourth Quarter Results 94
Earnings 94
Net interest income 94
Noninterest income 95
Noninterest expense 95
Provision for loan and lease losses 95
Income taxes 95
Critical Accounting Policies and Estimates 99
Allowance for loan and lease losses 99
Valuation methodologies 100
Derivatives and hedging 101
Contingent liabilities, guarantees and income taxes 102
European Sovereign and Non-Sovereign Debt Exposure 103
Throughout the Notes to Consolidated Financial Statements and Management’s Discussion and Analysis of
Financial Condition and Results of Operations, we use certain acronyms and abbreviations. These terms
are defined in Note 1 (“Summary of Significant Accounting Policies”), which begins on page 114.
32