KeyBank 2015 Annual Report Download - page 84

in a partnership was valued at $4 million at December 31, 2014. Under the requirements of the Volcker Rule, we
were required to dispose of this investment. Prior to December 31, 2015, the investment was redeemed.
Additional information pertaining to the equity investment is included in the “Changes in Level 3 Fair Value
Measurements” section of Note 6 (“Fair Value Measurements”).
Most of our other investments are not traded on an active market. We determine the fair value at which these
investments should be recorded based on the nature of the specific investment and all available relevant
information. This review may encompass such factors as the issuer’s past financial performance and future
potential, the values of public companies in comparable businesses, the risks associated with the particular
business or investment type, current market conditions, the nature and duration of resale restrictions, the issuer’s
payment history, our knowledge of the industry, third-party data, and other relevant factors. As of December 31,
2015, net gains from our principal investing activities (including results attributable to noncontrolling interests)
totaled $51 million, which includes $47 million of net unrealized losses. These net gains are recorded as “net
gains (losses) from principal investing” on the income statement. Additional information regarding these
investments is provided in Note 6.
Deposits and other sources of funds
Domestic deposits are our primary source of funding. The composition of our average deposits is shown in
Figure 5 in the section entitled “Net interest income.” During 2015, average domestic deposits were $70.1 billion
and represented 85% of the funds we used to support loans and other earning assets, compared to $67.3 billion
and 86% during 2014. NOW and money market deposit accounts increased $2.0 billion, and noninterest-bearing
deposits increased $1.9 billion, reflecting continued growth in the commercial mortgage servicing business and
inflows from commercial and consumer clients. These increases were partially offset by a decline in certificates
of deposit.
Wholesale funds, consisting of deposits in our foreign office and short-term borrowings, averaged $1.7 billion
during 2015, compared to $2.4 billion during 2014. The decrease from 2014 was caused by declines of $550
million in federal funds purchased and securities sold under repurchase agreements, $126 million in foreign
office deposits, and $25 million in bank notes and other short-term borrowings.
At December 31, 2015, we had $2.4 billion in time deposits of $100,000 or more. Figure 26 shows the maturity
distribution of these deposits.
Figure 26. Maturity Distribution of Time Deposits of $100,000 or More (a)
December 31, 2015
in millions
Domestic
Offices Total
Remaining maturity:
Three months or less $ 324 $ 324
After three through six months 366 366
After six through twelve months 542 542
After twelve months 1,160 1,160
Total $ 2,392 $ 2,392
(a) There were no deposits in foreign offices at December 31, 2015.
Capital
At December 31, 2015, our shareholders’ equity was $10.7 billion, up $216 million from December 31, 2014.
The following sections discuss certain factors that contributed to this change. For other factors that contributed to
the change, see the Consolidated Statements of Changes in Equity.
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