KeyBank 2014 Annual Report Download - page 126

Consolidated Statements of Cash Flows
Year ended December 31,
in millions 2014 2013 2012
OPERATING ACTIVITIES
Net income (loss) $ 907 $ 910 $ 865
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Provision (credit) for loan and lease losses 59 130 229
Provision (credit) for losses on lending-related commitments (2) 8 (16)
Provision (credit) for losses on LIHTC guaranteed funds (7) 4—
Depreciation, amortization and accretion expense, net 227 220 235
Increase in cash surrender value of corporate-owned life insurance (106) (106) (110)
Stock-based compensation expense 44 35 49
FDIC reimbursement (payments), net of FDIC expense 1296 26
Deferred income taxes (benefit) 529 35
Proceeds from sales of loans held for sale 5,386 5,595 5,535
Originations of loans held for sale, net of repayments (5,415) (5,440) (5,189)
Net losses (gains) from sale of loans held for sale (97) (115) (144)
Net losses (gains) from principal investing (78) (52) (72)
Net losses (gains) and writedown on OREO 3613
Net losses (gains) on leased equipment (35) (43) (111)
Net losses (gains) on sales of fixed assets 712 2
Net securities losses (gains) —(1) —
Gain on sale of Victory (10) (146) —
Loss on sale of residual interests and deconsolidation of securitization trusts 40 ——
Net decrease (increase) in trading account assets (12) (133) 18
Other operating activities, net 403 338 (66)
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES 1,320 1,547 1,299
INVESTING ACTIVITIES
Cash received (used) in acquisitions, net of cash acquired (114) 601 776
Proceeds from sale of residual interests 57 ——
Proceeds from sale of Victory 10 131 —
Net decrease (increase) in short-term investments, excluding acquisitions 1,358 (1,650) (421)
Purchases of securities available for sale (3,797) (5,222) (1,772)
Proceeds from sales of securities available for sale —35 1
Proceeds from prepayments and maturities of securities available for sale 2,860 4,470 5,551
Proceeds from prepayments and maturities of held-to-maturity securities 850 847 660
Purchases of held-to-maturity securities (1,109) (1,672) (2,481)
Purchases of other investments (49) (46) (66)
Proceeds from sales of other investments 334 187 28
Proceeds from prepayments and maturities of other investments 46 197
Net decrease (increase) in loans, excluding acquisitions, sales and transfers (3,296) (2,026) (2,935)
Proceeds from sales of portfolio loans 120 185 277
Proceeds from corporate-owned life insurance 35 31 33
Purchases of premises, equipment, and software (97) (100) (164)
Proceeds from sales of premises and equipment 181
Proceeds from sales of other real estate owned 17 23 67
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES (2,816) (4,192) (248)
FINANCING ACTIVITIES
Net increase (decrease) in deposits, excluding acquisitions 2,736 2,333 1,989
Net increase (decrease) in short-term borrowings (879) (18) (152)
Net proceeds from issuance of long-term debt 1,727 2,573 837
Payments on long-term debt (1,355) (1,545) (3,394)
Repurchase of common shares (484) (474) (251)
Net proceeds from reissuance of common shares 27 26 2
Cash dividends paid (240) (217) (191)
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES 1,532 2,678 (1,160)
NET INCREASE (DECREASE) IN CASH AND DUE FROM BANKS 36 33 (109)
CASH AND DUE FROM BANKS AT BEGINNING OF YEAR 617 584 693
CASH AND DUE FROM BANKS AT END OF YEAR $ 653 $ 617 $ 584
Additional disclosures relative to cash flows:
Interest paid $ 281 $ 293 $ 464
Income taxes paid (refunded) 131 185 84
Noncash items:
Assets acquired $41$ 41 $ 1,283
Liabilities assumed 17 — 2,059
Reduction of secured borrowing and related collateral 152 ——
LIHTC guaranteed funds put 7——
Loans transferred to portfolio from held for sale 19 941
Loans transferred to held for sale from portfolio 16 61 118
Loans transferred to other real estate owned 23 21 38
See Notes to Consolidated Financial Statements.
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