KeyBank 2015 Annual Report Download - page 113
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principal investing of $18 million and $7 million of lower trust and investment services income reflecting market
variability. These decreases were partially offset by a $12 million increase in other income and growth in some
of our other core fee-based businesses, including $4 million of higher cards and payments income due to higher
credit card and merchant fees due to increased volume and a $4 million increase in mortgage servicing fees.
Noninterest expense
Our noninterest expense was $736 million for the fourth quarter of 2015. During the quarter, we incurred merger-
related costs of $6 million, a pension settlement charge of $4 million, and costs associated with continuous
improvement and efficiency efforts of $10 million. These costs impacted both personnel and nonpersonnel
expense.
Compared to $704 million for the fourth quarter of last year, the increase in noninterest expense was primarily
attributable to a $20 million increase in personnel expense related to investments made across the business, along
with an increase in employee benefits expense. Nonpersonnel expense increased $12 million, most notably from
higher business services and professional fees, partially due to merger-related costs.
Provision for credit losses
Our provision for credit losses was $45 million for the fourth quarter of 2015, compared to $22 million for the
fourth quarter of 2014. Our ALLL was $796 million, or 1.33% of total period-end loans, at December 31, 2015,
compared to $794 million, or 1.38%, at December 31, 2014.
Net loan charge-offs for the fourth quarter of 2015 totaled $37 million, or .25% of average loans, compared to
$32 million, or .22%, for the same period last year.
Income taxes
For the fourth quarter of 2015, we recorded a tax provision from continuing operations of $73 million, compared
to a tax provision of $94 million for the fourth quarter of 2014. The effective tax rate for the fourth quarter of
2015 was 23.9%, compared to 27.2% for the same quarter one year ago, due to additional federal tax credit
refunds filed for prior years.
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