KeyBank 2014 Annual Report Download - page 123

Consolidated Statements of Income
Year ended December 31,
dollars in millions, except per share amounts 2014 2013 2012
INTEREST INCOME
Loans $ 2,110 $ 2,151 $ 2,155
Loans held for sale 21 20 20
Securities available for sale 277 311 399
Held-to-maturity securities 93 82 69
Trading account assets 25 21 18
Short-term investments 666
Other investments 22 29 38
Total interest income 2,554 2,620 2,705
INTEREST EXPENSE
Deposits 117 158 257
Federal funds purchased and securities sold under repurchase agreements 224
Bank notes and other short-term borrowings 987
Long-term debt 133 127 173
Total interest expense 261 295 441
NET INTEREST INCOME 2,293 2,325 2,264
Provision (credit) for loan and lease losses 59 130 229
Net interest income (expense) after provision for loan and lease losses 2,234 2,195 2,035
NONINTEREST INCOME
Trust and investment services income 403 393 375
Investment banking and debt placement fees 397 333 327
Service charges on deposit accounts 261 281 287
Operating lease income and other leasing gains 96 117 201
Corporate services income 178 172 168
Cards and payments income 166 162 135
Corporate-owned life insurance income 118 120 122
Consumer mortgage income 10 19 40
Mortgage servicing fees 46 58 24
Net gains (losses) from principal investing 78 52 72
Other income (a) 44 59 105
Total noninterest income 1,797 1,766 1,856
NONINTEREST EXPENSE
Personnel 1,591 1,609 1,570
Net occupancy 261 275 260
Computer processing 158 156 164
Business services and professional fees 156 151 190
Equipment 96 104 107
Operating lease expense 42 47 57
Marketing 49 51 68
FDIC assessment 30 30 31
Intangible asset amortization 39 44 23
Provision (credit) for losses on lending-related commitments (2) 8 (16)
OREO expense, net 5715
Other expense 334 338 349
Total noninterest expense 2,759 2,820 2,818
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 1,272 1,141 1,073
Income taxes 326 271 231
INCOME (LOSS) FROM CONTINUING OPERATIONS 946 870 842
Income (loss) from discontinued operations, net of taxes of ($23), $26 and $14 (see Note 13) (39) 40 23
NET INCOME (LOSS) 907 910 865
Less: Net income (loss) attributable to noncontrolling interests 7—7
NET INCOME (LOSS) ATTRIBUTABLE TO KEY $ 900 $ 910 $ 858
Income (loss) from continuing operations attributable to Key common shareholders $ 917 $ 847 $ 813
Net income (loss) attributable to Key common shareholders 878 887 836
Per common share:
Income (loss) from continuing operations attributable to Key common shareholders $ 1.05 $ .93 $ .87
Income (loss) from discontinued operations, net of taxes (.04) .04 .02
Net income (loss) attributable to Key common shareholders (b) 1.01 .98 .89
Per common share — assuming dilution:
Income (loss) from continuing operations attributable to Key common shareholders $ 1.04 $ .93 $ .86
Income (loss) from discontinued operations, net of taxes (.04) .04 .02
Net income (loss) attributable to Key common shareholders (b) .99 .97 .89
Cash dividends declared per common share $ .25 $ .215 $ .18
Weighted-average common shares outstanding (000) 871,464 906,524 938,941
Effect of convertible preferred stock ———
Effect of common share options and other stock awards 6,735 6,047 4,318
Weighted-average common shares and potential common shares outstanding (000) (c) 878,199 912,571 943,259
(a) For the years ended December 31, 2014, 2013, and 2012, net securities gains (losses) totaled less than $1 million, $1 million, and less
than $1 million, respectively. For 2014, 2013, and 2012, we did not have any impairment losses related to securities.
(b) EPS may not foot due to rounding.
(c) Assumes conversion of common share options and other stock awards and/or convertible preferred stock, as applicable.
See Notes to Consolidated Financial Statements.
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