KeyBank 2015 Annual Report Download - page 46

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
Page Number
Introduction 35
Terminology 35
Selected financial data 36
Economic overview 37
Long-term financial goals 38
Corporate strategy 38
Strategic developments 39
Highlights of Our 2015 Performance 40
Financial performance 40
Results of Operations 44
Net interest income 44
Noninterest income 48
Noninterest expense 51
Income taxes 52
Line of Business Results 53
Key Community Bank summary of operations 53
Key Corporate Bank summary of operations 55
Other Segments 57
Financial Condition 58
Loans and loans held for sale 58
Securities 67
Other investments 69
Deposits and other sources of funds 70
Capital 70
Off-Balance Sheet Arrangements and Aggregate Contractual Obligations 76
Off-balance sheet arrangements 76
Contractual obligations 77
Guarantees 78
Risk Management 78
Overview 78
Market risk management 79
Liquidity risk management 85
Credit risk management 89
Operational and compliance risk management 97
Fourth Quarter Results 98
Earnings 98
Net interest income 98
Noninterest income 98
Noninterest expense 99
Provision for loan and lease losses 99
Income taxes 99
Critical Accounting Policies and Estimates 103
Allowance for loan and lease losses 103
Valuation methodologies 104
Derivatives and hedging 106
Contingent liabilities, guarantees and income taxes 106
European Sovereign and Non-Sovereign Debt Exposure 108
Throughout the Notes to Consolidated Financial Statements and Management’s Discussion and Analysis of
Financial Condition and Results of Operations (the “MD&A”), we use certain acronyms and
abbreviations. These terms are defined in Note 1 (“Summary of Significant Accounting Policies”), which
begins on page 119.
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