KeyBank 2013 Annual Report Download - page 126

Consolidated Statements of Income
Year ended December 31,
dollars in millions, except per share amounts 2013 2012 2011
INTEREST INCOME
Loans $ 2,151 $ 2,155 $ 2,206
Loans held for sale 20 20 14
Securities available for sale 311 399 583
Held-to-maturity securities 82 69 12
Trading account assets 21 18 26
Short-term investments 666
Other investments 29 38 42
Total interest income 2,620 2,705 2,889
INTEREST EXPENSE
Deposits 158 257 390
Federal funds purchased and securities sold under repurchase agreements 245
Bank notes and other short-term borrowings 8711
Long-term debt 127 173 216
Total interest expense 295 441 622
NET INTEREST INCOME 2,325 2,264 2,267
Provision (credit) for loan and lease losses 130 229 (60)
Net interest income (expense) after provision for loan and lease losses 2,195 2,035 2,327
NONINTEREST INCOME
Trust and investment services income 393 375 353
Investment banking and debt placement fees 333 327 224
Service charges on deposit accounts 281 287 281
Operating lease income and other leasing gains 108 195 157
Corporate services income 172 168 197
Cards and payments income 162 135 163
Corporate-owned life insurance income 120 122 121
Consumer mortgage income 19 40 32
Mortgage servicing fees 58 24 26
Net gains (losses) from principal investing 52 72 78
Other income (a) 68 111 56
Total noninterest income 1,766 1,856 1,688
NONINTEREST EXPENSE
Personnel 1,609 1,570 1,460
Net occupancy 275 260 258
Computer processing 156 164 166
Business services and professional fees 151 190 183
Equipment 104 107 103
Operating lease expense 47 57 94
Marketing 51 68 60
FDIC assessment 30 31 52
Intangible asset amortization on credit cards 30 14 —
Other intangible asset amortization 14 94
Provision (credit) for losses on lending-related commitments 8(16) (28)
OREO expense, net 715 13
Other expense 338 349 319
Total noninterest expense 2,820 2,818 2,684
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 1,141 1,073 1,331
Income taxes 271 231 364
INCOME (LOSS) FROM CONTINUING OPERATIONS 870 842 967
Income (loss) from discontinued operations, net of taxes of $26, $14 and ($21) (see Note 13) 40 23 (35)
NET INCOME (LOSS) 910 865 932
Less: Net income (loss) attributable to noncontrolling interests —712
NET INCOME (LOSS) ATTRIBUTABLE TO KEY $ 910 $ 858 $ 920
Income (loss) from continuing operations attributable to Key common shareholders $ 847 $ 813 $ 848
Net income (loss) attributable to Key common shareholders 887 836 813
Per common share:
Income (loss) from continuing operations attributable to Key common shareholders $ .93 $ .87 $ .91
Income (loss) from discontinued operations, net of taxes .04 .02 (.04)
Net income (loss) attributable to Key common shareholders (b) .98 .89 .87
Per common share — assuming dilution:
Income (loss) from continuing operations attributable to Key common shareholders $ .93 $ .86 $ .91
Income (loss) from discontinued operations, net of taxes .04 .02 (.04)
Net income (loss) attributable to Key common shareholders (b) .97 .89 .87
Cash dividends declared per common share $ .215 $ .18 $ .10
Weighted-average common shares outstanding (000) (c) 906,524 938,941 931,934
Weighted-average common shares and potential common shares outstanding (000) 912,571 943,259 935,801
(a) For the years ended December 31, 2013, 2012, and 2011, net securities gains (losses) totaled $1 million, less than $1 million, and $1 million, respectively. For
2013, 2012, and 2011, we did not have any impairment losses related to securities.
(b) EPS may not foot due to rounding.
(c) Assumes conversion of stock options and/or Series A Preferred Stock, as applicable.
See Notes to Consolidated Financial Statements.
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