KeyBank 2015 Annual Report Download - page 130

Consolidated Statements of Income
Year ended December 31,
dollars in millions, except per share amounts 2015 2014 2013
INTEREST INCOME
Loans $ 2,149 $ 2,110 $ 2,151
Loans held for sale 37 21 20
Securities available for sale 293 277 311
Held-to-maturity securities 96 93 82
Trading account assets 21 25 21
Short-term investments 866
Other investments 18 22 29
Total interest income 2,622 2,554 2,620
INTEREST EXPENSE
Deposits 105 117 158
Federal funds purchased and securities sold under repurchase agreements —22
Bank notes and other short-term borrowings 998
Long-term debt 160 133 127
Total interest expense 274 261 295
NET INTEREST INCOME 2,348 2,293 2,325
Provision for credit losses 166 57 138
Net interest income after provision for credit losses 2,182 2,236 2,187
NONINTEREST INCOME
Trust and investment services income 433 403 393
Investment banking and debt placement fees 445 397 333
Service charges on deposit accounts 256 261 281
Operating lease income and other leasing gains 73 96 117
Corporate services income 198 178 172
Cards and payments income 183 166 162
Corporate-owned life insurance income 127 118 120
Consumer mortgage income 12 10 19
Mortgage servicing fees 48 46 58
Net gains (losses) from principal investing 51 78 52
Other income (a) 54 44 59
Total noninterest income 1,880 1,797 1,766
NONINTEREST EXPENSE
Personnel 1,652 1,591 1,609
Net occupancy 255 261 275
Computer processing 164 158 156
Business services and professional fees 159 156 151
Equipment 88 96 104
Operating lease expense 47 42 47
Marketing 57 49 51
FDIC assessment 32 30 30
Intangible asset amortization 36 39 44
OREO expense, net 657
Other expense 344 334 338
Total noninterest expense 2,840 2,761 2,812
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 1,222 1,272 1,141
Income taxes 303 326 271
INCOME (LOSS) FROM CONTINUING OPERATIONS 919 946 870
Income (loss) from discontinued operations, net of taxes of $1, ($23) and $26 (see Note 13) 1(39) 40
NET INCOME (LOSS) 920 907 910
Less: Net income (loss) attributable to noncontrolling interests 47—
NET INCOME (LOSS) ATTRIBUTABLE TO KEY $ 916 $ 900 $ 910
Income (loss) from continuing operations attributable to Key common shareholders $ 892 $ 917 $ 847
Net income (loss) attributable to Key common shareholders 893 878 887
Per common share:
Income (loss) from continuing operations attributable to Key common shareholders $ 1.06 $ 1.05 $ .93
Income (loss) from discontinued operations, net of taxes —(.04) .04
Net income (loss) attributable to Key common shareholders (b) 1.06 1.01 .98
Per common share — assuming dilution:
Income (loss) from continuing operations attributable to Key common shareholders $ 1.05 $ 1.04 $ .93
Income (loss) from discontinued operations, net of taxes —(.04) .04
Net income (loss) attributable to Key common shareholders (b) 1.05 .99 .97
Cash dividends declared per common share $ .29 $ .25 $ .215
Weighted-average common shares outstanding (000) 836,846 871,464 906,524
Effect of convertible preferred stock ———
Effect of common share options and other stock awards 7,643 6,735 6,047
Weighted-average common shares and potential common shares outstanding (000) (c) 844,489 878,199 912,571
(a) Net securities gains (losses) totaled less than $1 million for the years ended December 31, 2015, and 2014, and $1 million for the year
ended December 31, 2013. For 2015, 2014 and 2013, 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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