KeyBank 2013 Annual Report Download - page 56

Figure 4. GAAP to Non-GAAP Reconciliations
Year ended December 31,
dollars in millions 2013 2012 2011 2010 (a) 2009 (a)
Tangible common equity to tangible assets at period end
Key shareholders’ equity (GAAP) $ 10,303 $ 10,271 $ 9,905 $ 11,117 $ 10,663
Less: Intangible assets (b) 1,014 1,027 934 938 967
Series B Preferred Stock —— — 2,446 2,430
Series A Preferred Stock (c) 282 291 291 291 291
Tangible common equity (non-GAAP) $ 9,007 $ 8,953 $ 8,680 $ 7,442 $ 6,975
Total assets (GAAP) $ 92,934 $ 89,236 $ 88,785 $ 91,843 $ 93,287
Less: Intangible assets (b) 1,014 1,027 934 938 967
Tangible assets (non-GAAP) $ 91,920 $ 88,209 $ 87,851 $ 90,905 $ 92,320
Tangible common equity to tangible assets ratio (non-GAAP) 9.80 % 10.15 % 9.88 % 8.19 % 7.56 %
Tier 1 common equity at period end
Key shareholders’ equity (GAAP) $ 10,303 $ 10,271 $ 9,905 $ 11,117 $ 10,663
Qualifying capital securities 339 339 1,046 1,791 1,791
Less: Goodwill 979 979 917 917 917
Accumulated other comprehensive income (loss) (d) (394) (172) (72) (66) (48)
Other assets (e) 89 114 72 248 632
Total Tier 1 capital (regulatory) 9,968 9,689 10,034 11,809 10,953
Less: Qualifying capital securities 339 339 1,046 1,791 1,791
Series B Preferred Stock —— — 2,446 2,430
Series A Preferred Stock (c) 282 291 291 291 291
Total Tier 1 common equity (non-GAAP) $ 9,347 $ 9,059 $ 8,697 $ 7,281 $ 6,441
Net risk-weighted assets (regulatory) $ 83,328 $ 79,734 $ 77,214 $ 77,921 $ 85,881
Tier 1 common equity ratio (non-GAAP) 11.22 % 11.36 % 11.26 % 9.34 % 7.50 %
Pre-provision net revenue
Net interest income (GAAP) $ 2,325 $ 2,264 $ 2,267 $ 2,511 $ 2,380
Plus: Taxable-equivalent adjustment 23 24 25 26 26
Noninterest income (GAAP) 1,766 1,856 1,688 1,954 2,035
Less: Noninterest expense (GAAP) 2,820 2,818 2,684 3,034 3,554
Pre-provision net revenue from continuing operations (non-GAAP) $ 1,294 $ 1,326 $ 1,296 $ 1,457 $ 887
Average tangible common equity
Average Key shareholders’ equity (GAAP) $ 10,276 $ 10,144 $ 10,133 $ 10,895 $ 10,592
Less: Intangible assets (average) (f) 1,021 978 935 959 1,068
Series B Preferred Stock (average) —— 590 2,438 2,578
Series A Preferred Stock (average) 291 291 291 291 291
Average tangible common equity (non-GAAP) $ 8,964 $ 8,875 $ 8,317 $ 7,207 $ 6,655
Return on average tangible common equity from continuing operations
Net income (loss) from continuing operations attributable to Key common
shareholders (GAAP) $ 847 $ 813 $ 848 $ 413 $ (1,581)
Average tangible common equity (non-GAAP) 8,964 8,875 8,317 7,207 6,655
Return on average tangible common equity from continuing operations
(non-GAAP) 9.45 % 9.16 % 10.20 % 5.73 % (23.8)%
Return on average tangible common equity consolidated
Net income (loss) attributable to Key common shareholders (GAAP) $ 887 $ 836 $ 813 $ 390 $ (1,629)
Average tangible common equity (non-GAAP) 8,964 8,875 8,317 7,207 6,655
Return on average tangible common equity consolidated (non-GAAP) 9.90 % 9.42 % 9.78 % 5.41 % (24.5)%
Cash efficiency ratio
Noninterest expense (GAAP) $ 2,820 $ 2,818 $ 2,684 $ 3,034 $ 3,554
Less: Intangible asset amortization on credit cards (GAAP) 30 14 — — —
Other intangible asset amortization (GAAP) 14 9 4 14 77
Intangible asset impairment (GAAP) ————214
Adjusted noninterest expense (non-GAAP) $ 2,776 $ 2,795 $ 2,680 $ 3,020 $ 3,263
Net interest income (GAAP) $ 2,325 $ 2,264 $ 2,267 $ 2,511 $ 2,380
Plus: Taxable-equivalent adjustment 23 24 25 26 26
Noninterest income (GAAP) 1,766 1,856 1,688 1,954 2,035
Total taxable-equivalent revenue (non-GAAP) $ 4,114 $ 4,144 $ 3,980 $ 4,491 $ 4,441
Cash efficiency ratio (non-GAAP) 67.5 % 67.4 % 67.3 % 67.3 % 73.5 %
Adjusted cash efficiency ratio net of efficiency initiative charges
Adjusted noninterest expense (non-GAAP) $ 2,776 $ 2,795 $ 2,680 $ 3,020 $ 3,263
Less: Efficiency initiative and pension settlement charges (non-GAAP) 117 25 — — —
Net adjusted noninterest expense (non-GAAP) $ 2,659 $ 2,770 $ 2,680 $ 3,020 $ 3,263
Total taxable-equivalent revenue (non-GAAP) $ 4,114 $ 4,144 $ 3,980 $ 4,491 $ 4,441
Adjusted cash efficiency ratio net of efficiency initiative charges (non-GAAP) 64.6 % 66.8 % 67.3 % 67.3 % 73.5 %
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