KeyBank 2014 Annual Report Download - page 224

restrict dividend payments, require the adoption of remedial measures to increase capital, terminate FDIC deposit
insurance, and mandate the appointment of a conservator or receiver in severe cases. In addition, failure to
maintain a “well capitalized” status affects how regulators evaluate applications for certain endeavors, including
acquisitions, continuation and expansion of existing activities, and commencement of new activities, and could
make clients and potential investors less confident. As of December 31, 2014, KeyCorp and KeyBank met all
regulatory capital requirements.
As previously indicated in the “Supervision and Regulation” section in Item 1 of this report under the heading
“Revised prompt corrective action capital category ratios,” KeyBank qualified for the “well capitalized” prompt
corrective action capital category at December 31, 2014, because KeyBank’s capital and leverage ratios exceeded the
prescribed threshold ratios for that capital category and KeyBank was not subject to any written agreement, order, or
directive to meet and maintain a specific capital level for any capital measure. Since that date, we believe there has
been no change in condition or event that has occurred that would cause KeyBank’s capital category to change.
As previously indicated in the “Supervision and Regulation” section in Item 1 of this report under the heading
“Revised prompt corrective action capital category ratios,” BHCs are not assigned to any of the five prompt
corrective action capital categories applicable to insured depository institutions. If, however, those categories
applied to BHCs, we believe that KeyCorp would satisfy the criteria for a “well capitalized” institution at
December 31, 2014, and since that date, we believe there has been no change in condition or event that has
occurred that would cause such capital category to change.
Because the regulatory capital categories under the prompt corrective action regulations serve a limited
supervisory function, investors should not use them as a representation of the overall financial condition or
prospects of KeyBank or KeyCorp.
For additional information on capital adequacy, see “Supervision and Regulation” in Item 1 of this report.
At December 31, 2014, Key and KeyBank (consolidated) had regulatory capital in excess of all current minimum
risk-based capital (including all adjustments for market risk) and leverage ratio requirements as shown in the
following table.
Actual
To Meet Minimum
Capital Adequacy
Requirements
To Qualify as Well Capitalized
Under Federal Deposit
Insurance Act
dollars in millions Amount Ratio Amount Ratio Amount Ratio
December 31, 2014
TOTAL CAPITAL TO NET RISK-WEIGHTED ASSETS
Key $ 11,824 13.89% $ 6,808 8.00% N/A N/A
KeyBank (consolidated) 10,833 13.49 6,425 8.00 $ 8,031 10.00%
TIER 1 CAPITAL TO NET RISK-WEIGHTED ASSETS
Key $ 10,124 11.90% $ 3,404 4.00% N/A N/A
KeyBank (consolidated) 9,151 11.39 3,213 4.00 $ 4,819 6.00%
TIER 1 CAPITAL TO AVERAGE QUARTERLY TANGIBLE ASSETS
Key $ 10,124 11.26% $ 2,698 3.00% N/A N/A
KeyBank (consolidated) 9,151 10.38 3,526 4.00 $ 4,407 5.00%
December 31, 2013
TOTAL CAPITAL TO NET RISK-WEIGHTED ASSETS
Key $ 11,941 14.33% $ 6,666 8.00% N/A N/A
KeyBank (consolidated) 10,451 13.33 6,273 8.00 $ 7,841 10.00%
TIER 1 CAPITAL TO NET RISK-WEIGHTED ASSETS
Key $ 9,968 11.96% $ 3,333 4.00% N/A N/A
KeyBank (consolidated) 8,496 10.83 3,136 4.00 $ 4,705 6.00%
TIER 1 CAPITAL TO AVERAGE QUARTERLY TANGIBLE ASSETS
Key $ 9,968 11.11% $ 2,691 3.00% N/A N/A
KeyBank (consolidated) 8,496 9.69 3,507 4.00 $ 4,384 5.00%
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