KeyBank 2014 Annual Report Download - page 53

Figure 4. GAAP to Non-GAAP Reconciliations
Year ended December 31,
dollars in millions 2014 2013 2012 2011 2010 (a)
Tangible common equity to tangible assets at period end
Key shareholders’ equity (GAAP) $ 10,530 $ 10,303 $ 10,271 $ 9,905 $ 11,117
Less: Intangible assets (b) 1,090 1,014 1,027 934 938
Series B Preferred Stock —— — — 2,446
Series A Preferred Stock (c) 282 282 291 291 291
Tangible common equity (non-GAAP) $ 9,158 $ 9,007 $ 8,953 $ 8,680 $ 7,442
Total assets (GAAP) $ 93,821 $ 92,934 $ 89,236 $ 88,785 $ 91,843
Less: Intangible assets (b) 1,090 1,014 1,027 934 938
Tangible assets (non-GAAP) $ 92,731 $ 91,920 $ 88,209 $ 87,851 $ 90,905
Tangible common equity to tangible assets ratio (non-GAAP) 9.88 % 9.80 % 10.15 % 9.88 % 8.19 %
Tier 1 common equity at period end
Key shareholders’ equity (GAAP) $ 10,530 $ 10,303 $ 10,271 $ 9,905 $ 11,117
Qualifying capital securities 339 339 339 1,046 1,791
Less: Goodwill 1,057 979 979 917 917
Accumulated other comprehensive income (loss) (d) (395) (394) (172) (72) (66)
Other assets (e) 83 89 114 72 248
Total Tier 1 capital (regulatory) 10,124 9,968 9,689 10,034 11,809
Less: Qualifying capital securities 339 339 339 1,046 1,791
Series B Preferred Stock —— — — 2,446
Series A Preferred Stock (c) 282 282 291 291 291
Total Tier 1 common equity (non-GAAP) $ 9,503 $ 9,347 $ 9,059 $ 8,697 $ 7,281
Net risk-weighted assets (regulatory) $ 85,100 $ 83,328 $ 79,734 $ 77,214 $ 77,921
Tier 1 common equity ratio (non-GAAP) 11.17 % 11.22 % 11.36 % 11.26 % 9.34 %
Pre-provision net revenue
Net interest income (GAAP) $ 2,293 $ 2,325 $ 2,264 $ 2,267 $ 2,511
Plus: Taxable-equivalent adjustment 24 23 24 25 26
Noninterest income (GAAP) 1,797 1,766 1,856 1,688 1,954
Less: Noninterest expense (GAAP) 2,759 2,820 2,818 2,684 3,034
Pre-provision net revenue from continuing operations (non-GAAP) $ 1,355 $ 1,294 $ 1,326 $ 1,296 $ 1,457
Average tangible common equity
Average Key shareholders’ equity (GAAP) $ 10,467 $ 10,276 $ 10,144 $ 10,133 $ 10,895
Less: Intangible assets (average) (f) 1,039 1,021 978 935 959
Series B Preferred Stock (average) —— — 590 2,438
Series A Preferred Stock (average) 291 291 291 291 291
Average tangible common equity (non-GAAP) $ 9,137 $ 8,964 $ 8,875 $ 8,317 $ 7,207
Return on average tangible common equity from continuing operations
Net income (loss) from continuing operations attributable to Key
common shareholders (GAAP) $ 917 $ 847 $ 813 $ 848 $ 413
Average tangible common equity (non-GAAP) 9,137 8,964 8,875 8,317 7,207
Return on average tangible common equity from continuing operations
(non-GAAP) 10.04 % 9.45 % 9.16 % 10.20 % 5.73 %
Return on average tangible common equity consolidated
Net income (loss) attributable to Key common shareholders (GAAP) $ 878 $ 887 $ 836 $ 813 $ 390
Average tangible common equity (non-GAAP) 9,137 8,964 8,875 8,317 7,207
Return on average tangible common equity consolidated (non-GAAP) 9.61 % 9.90 % 9.42 % 9.78 % 5.41 %
Cash efficiency ratio
Noninterest expense (GAAP) $ 2,759 $ 2,820 $ 2,818 $ 2,684 $ 3,034
Less: Intangible asset amortization (GAAP) 39 44 23 4 14
Adjusted noninterest expense (non-GAAP) $ 2,720 $ 2,776 $ 2,795 $ 2,680 $ 3,020
Net interest income (GAAP) $ 2,293 $ 2,325 $ 2,264 $ 2,267 $ 2,511
Plus: Taxable-equivalent adjustment 24 23 24 25 26
Noninterest income (GAAP) 1,797 1,766 1,856 1,688 1,954
Total taxable-equivalent revenue (non-GAAP) $ 4,114 $ 4,114 $ 4,144 $ 3,980 $ 4,491
Cash efficiency ratio (non-GAAP) 66.1 % 67.5 % 67.4 % 67.3 % 67.3 %
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