KeyBank 2015 Annual Report Download - page 133

Consolidated Statements of Cash Flows
Year ended December 31,
in millions 2015 2014 2013
OPERATING ACTIVITIES
Net income (loss) $ 920 $ 907 $ 910
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Provision for credit losses 166 57 138
Provision (credit) for losses on LIHTC guaranteed funds —(7) 4
Depreciation, amortization and accretion expense, net 247 246 221
Increase in cash surrender value of corporate-owned life insurance (108) (106) (106)
Stock-based compensation expense 58 44 35
FDIC reimbursement (payments), net of FDIC expense —1 296
Deferred income taxes (benefit) (76) 529
Proceeds from sales of loans held for sale 7,333 5,386 5,595
Originations of loans held for sale, net of repayments (7,072) (5,415) (5,440)
Net losses (gains) from sale of loans held for sale (103) (97) (115)
Net losses (gains) from principal investing (51) (78) (52)
Net losses (gains) and writedown on OREO 436
Net losses (gains) on leased equipment (6) (35) (43)
Net losses (gains) on sales of fixed assets 8712
Net securities losses (gains) —— (1)
Net decrease (increase) in trading account assets (38) (12) (133)
Gain on sale of Victory —(10) (146)
Loss on sale of residual interests and deconsolidation of securitization trusts —40 —
Other operating activities, net (151) 384 337
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES 1,131 1,320 1,547
INVESTING ACTIVITIES
Net decrease (increase) in short-term investments, excluding acquisitions 1,562 1,358 (1,650)
Purchases of securities available for sale (4,090) (3,797) (5,222)
Proceeds from sales of securities available for sale 19 —35
Proceeds from prepayments and maturities of securities available for sale 3,098 2,860 4,470
Proceeds from prepayments and maturities of held-to-maturity securities 1,102 850 847
Purchases of held-to-maturity securities (988) (1,109) (1,672)
Purchases of other investments (32) (49) (46)
Proceeds from sales of other investments 145 334 187
Proceeds from prepayments and maturities of other investments 846
Net decrease (increase) in loans, excluding acquisitions, sales and transfers (2,951) (3,296) (2,026)
Proceeds from sales of portfolio loans 110 120 185
Proceeds from corporate-owned life insurance 46 35 31
Purchases of premises, equipment, and software (75) (97) (100)
Proceeds from sales of premises and equipment 118
Proceeds from sales of OREO 22 17 23
Cash received (used) in acquisitions, net of cash acquired —(114) 601
Proceeds from sale of residual interests —57 —
Proceeds from sale of Victory —10 131
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES (2,023) (2,816) (4,192)
FINANCING ACTIVITIES
Net increase (decrease) in deposits, excluding acquisitions (952) 2,736 2,333
Net increase (decrease) in short-term borrowings (93) (879) (18)
Net proceeds from issuance of long-term debt 3,756 1,727 2,573
Payments on long-term debt (1,172) (1,355) (1,545)
Repurchase of common shares (448) (484) (474)
Net proceeds from reissuance of common shares 22 27 26
Cash dividends paid (267) (240) (217)
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES 846 1,532 2,678
NET INCREASE (DECREASE) IN CASH AND DUE FROM BANKS (46) 36 33
CASH AND DUE FROM BANKS AT BEGINNING OF YEAR 653 617 584
CASH AND DUE FROM BANKS AT END OF YEAR $ 607 $ 653 $ 617
Additional disclosures relative to cash flows:
Interest paid $ 329 $ 298 $ 304
Income taxes paid (refunded) 281 131 185
Noncash items:
Reduction of secured borrowing and related collateral $ 160 $ 152 —
Loans transferred to portfolio from held for sale 119 $ 9
Loans transferred to held for sale from portfolio 63 16 61
Loans transferred to other real estate owned 20 23 21
Assets acquired —41 41
Liabilities assumed —17 —
LIHTC guaranteed funds put —7—
See Notes to Consolidated Financial Statements.
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