KeyBank 2008 Annual Report Download - page 76

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74
KEYCORP AND SUBSIDIARIES
Year ended December 31,
dollars in millions, except per share amounts 2008 2007 2006
INTEREST INCOME
Loans $ 3,902 $4,751 $4,561
Loans held for sale 146 337 325
Securities available for sale 440 427 347
Held-to-maturity securities 322
Trading account assets 56 38 30
Short-term investments 31 37 33
Other investments 51 52 82
Total interest income 4,629 5,644 5,380
INTEREST EXPENSE
Deposits 1,468 1,845 1,576
Federal funds purchased and securities sold under repurchase agreements 57 208 107
Bank notes and other short-term borrowings 131 104 94
Long-term debt 564 718 788
Total interest expense 2,220 2,875 2,565
NET INTEREST INCOME 2,409 2,769 2,815
Provision for loan losses 1,835 529 150
Net interest income after provision for loan losses 574 2,240 2,665
NONINTEREST INCOME
Trust and investment services income 538 490 553
Service charges on deposit accounts 365 337 304
Operating lease income 270 272 229
Letter of credit and loan fees 183 192 188
Corporate-owned life insurance income 117 121 105
Electronic banking fees 103 99 105
Insurance income 65 55 64
Investment banking and capital markets income 63 117 230
Net securities (losses) gains (2) (35) 1
Net (losses) gains from principal investing (62) 134 53
Net (losses) gains from loan securitizations and sales (95) (17) 76
Gain from redemption of Visa Inc. shares 165 ——
Gain from sale of McDonald Investments branch network —171 —
Other income 160 293 219
Total noninterest income 1,870 2,229 2,127
NONINTEREST EXPENSE
Personnel 1,605 1,621 1,692
Net occupancy 261 246 250
Operating lease expense 224 224 184
Computer processing 187 201 212
Professional fees 142 117 134
Equipment 92 96 102
Marketing 87 76 97
Goodwill impairment 469 5 —
Other expense 511 662 478
Total noninterest expense 3,578 3,248 3,149
(LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INCOME
TAXES AND CUMULATIVE EFFECT OF ACCOUNTING CHANGE (1,134) 1,221 1,643
Income taxes 334 280 450
(LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE
CUMULATIVE EFFECT OF ACCOUNTING CHANGE (1,468) 941 1,193
Loss from discontinued operations, net of taxes of ($13) and $16, respectively (see Note 3) —(22) (143)
(LOSS) INCOME BEFORE CUMULATIVE EFFECT OF ACCOUNTING CHANGE (1,468) 919 1,050
Cumulative effect of accounting change, net of taxes (see Note 1) ——5
NET (LOSS) INCOME $(1,468) $ 919 $1,055
Net (loss) income applicable to common shares $(1,510) $919 $1,055
Per common share:
(Loss) income from continuing operations before cumulative effect of accounting change $(3.36) $2.40 $2.95
(Loss) income before cumulative effect of accounting change (3.36) 2.35 2.60
Net (loss) income (3.36) 2.35 2.61
Per common share — assuming dilution:
(Loss) income from continuing operations before cumulative effect of accounting change $(3.36) $2.38 $2.91
(Loss) income before cumulative effect of accounting change (3.36) 2.32 2.56
Net (loss) income (3.36) 2.32 2.57
Cash dividends declared per common share .625 1.835 1.38
Weighted-average common shares outstanding (000) 450,039 392,013 404,490
Weighted-average common shares and potential common shares outstanding (000) 450,039 395,823 410,222
See Notes to Consolidated Financial Statements.
CONSOLIDATED STATEMENTS OF INCOME