KeyBank 2013 Annual Report Download - page 88

Figure 29. Capital Components and Risk-Weighted Assets
December 31,
dollars in millions 2013 2012
TIER 1 CAPITAL
Key shareholders’ equity $ 10,303 $ 10,271
Qualifying capital securities 339 339
Less: Goodwill 979 979
Accumulated other comprehensive income (a) (394) (172)
Other assets (b) 89 114
Total Tier 1 capital 9,968 9,689
TIER 2 CAPITAL
Allowance for losses on loans and liability for losses on
lending-related commitments (c) 924 972
Net unrealized gains on equity securities available for sale 1—
Qualifying long-term debt 1,048 1,405
Total Tier 2 capital 1,973 2,377
Total risk-based capital $ 11,941 $ 12,066
TIER 1 COMMON EQUITY
Tier 1 capital $ 9,968 $ 9,689
Less: Qualifying capital securities 339 339
Series A Preferred Stock (d) 282 291
Total Tier 1 common equity $ 9,347 $ 9,059
RISK-WEIGHTED ASSETS
Risk-weighted assets on balance sheet $ 65,505 $ 63,995
Risk-weighted off-balance sheet exposure 17,778 16,575
Less: Goodwill 979 979
Other assets (b) 458 368
Plus: Market risk-equivalent assets 1,482 511
Gross risk-weighted assets 83,328 79,734
Less: Excess allowance for loan and lease losses ——
Net risk-weighted assets $ 83,328 $ 79,734
AVERAGE QUARTERLY TOTAL ASSETS $ 91,141 $ 86,239
CAPITAL RATIOS
Tier 1 risk-based capital 11.96 % 12.15 %
Total risk-based capital 14.33 15.13
Leverage (e) 11.11 11.41
Tier 1 common equity 11.22 11.36
(a) Includes net unrealized gains or losses on securities available for sale (except for net unrealized losses on marketable equity securities),
net gains or losses on cash flow hedges, and amounts resulting from the application of the applicable accounting guidance for defined
benefit and other postretirement plans.
(b) Other assets deducted from Tier 1 capital and risk-weighted assets consist of disallowed intangible assets (excluding goodwill) and
deductible portions of nonfinancial equity investments. There were no disallowed deferred tax assets at December 31, 2013, and
December 31, 2012.
(c) The ALLL included in Tier 2 capital is limited by regulation to 1.25% of the sum of gross risk-weighted assets plus low level exposures
and residual interests calculated under the direct reduction method, as defined by the Federal Reserve. The ALLL includes $39 million
and $55 million at December 31, 2013, and December 31, 2012, respectively, of allowance classified as “discontinued assets” on the
balance sheet.
(d) Net of capital surplus for the year ended December 31, 2013.
(e) This ratio is Tier 1 capital divided by average quarterly total assets as defined by the Federal Reserve less: (i) goodwill, (ii) the
disallowed intangible assets described in footnote (b), and (iii) deductible portions of nonfinancial equity investments; plus assets
derecognized as an offset to AOCI resulting from the adoption and subsequent application of the applicable accounting guidance for
defined benefit and other postretirement plans.
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