KeyBank 2015 Annual Report Download - page 116

Figure 46. Selected Quarterly GAAP to Non-GAAP Reconciliations
Three months ended
dollars in millions 12-31-15 9-30-15 6-30-15 3-31-15 12-31-14 9-30-14 6-30-14 3-31-14
Tangible common equity to tangible assets at period end
Key shareholders’ equity (GAAP) $ 10,746 $ 10,705 $ 10,590 $ 10,603 $ 10,530 $ 10,486 $ 10,504 $ 10,403
Less: Intangible assets (a) 1,080 1,084 1,085 1,088 1,090 1,105 1,008 1,012
Series A Preferred Stock (b) 281 281 281 281 282 282 282 282
Tangible common equity (non-GAAP) $ 9,385 $ 9,340 $ 9,224 $ 9,234 $ 9,158 $ 9,099 $ 9,214 $ 9,109
Total assets (GAAP) $ 95,133 $ 95,422 $ 94,606 $ 94,206 $ 93,821 $ 89,784 $ 91,798 $ 90,802
Less: Intangible assets (a) 1,080 1,084 1,085 1,088 1,090 1,105 1,008 1,012
Tangible assets (non-GAAP) $ 94,053 $ 94,338 $ 93,521 $ 93,118 $ 92,731 $ 88,679 $ 90,790 $ 89,790
Tangible common equity to tangible assets ratio (non-GAAP) 9.98 % 9.90 % 9.86 % 9.92 % 9.88% 10.26 % 10.15 % 10.14%
Common Equity Tier 1 at period end
Key shareholders’ equity (GAAP) $ 10,746 $ 10,705 $ 10,590 $ 10,603 ————
Less: Series A Preferred Stock (b) 281 281 281 281 ————
Common Equity Tier 1 capital before adjustments and
deductions 10,465 10,424 10,309 10,322 ————
Less: Goodwill, net of deferred taxes 1,034 1,036 1,034 1,036 ————
Intangible assets, net of deferred taxes 26 29 33 36 ————
Deferred tax assets 1111————
Net unrealized gains (losses) on available-for-sale
securities, net of deferred taxes (58) 54 — 52 ————
Accumulated gains (losses) on cash flow hedges, net of
deferred taxes (20) 21 (20) (8) ————
Amounts in AOCI attributed to pension and
postretirement benefit costs, net of deferred taxes (365) (385) (361) (364) ————
Total Common Equity Tier 1 capital $ 9,847 $ 9,668 $ 9622 $ 9569 ————
Net risk-weighted assets (regulatory) $ 89,980 $ 92,307 $ 89,851 $ 89,967 ————
Common Equity Tier 1 ratio (non-GAAP) 10.94 % 10.47 % 10.71 % 10.64 % ————
Tier 1 common equity at period end
Key shareholders’ equity (GAAP) ————$ 10,530 $ 10,486 $ 10,504 $ 10,403
Qualifying capital securities ————339 340 339 339
Less: Goodwill ————1,057 1,051 979 979
Accumulated other comprehensive income (loss) (c) ————(395) (366) (328) (367)
Other assets (d) ———— 83 110 86 84
Total Tier 1 capital (regulatory) ————10,124 10,031 10,106 10,046
Less: Qualifying capital securities ————339 340 339 339
Series A Preferred Stock (b) ————282 282 282 282
Total Tier 1 common equity (non-GAAP) ————$ 9,503 $ 9,409 $ 9,485 $ 9,425
Net risk-weighted assets (regulatory) ————$ 85,100 $ 83,547 $ 84,287 $ 83,637
Tier 1 common equity ratio (non-GAAP) ————11.17 % 11.26 % 11.25 % 11.27%
Average tangible common equity
Average Key shareholders’ equity (GAAP) $ 10,731 $ 10,614 $ 10,590 $ 10,570 $ 10,562 $ 10,473 $ 10,459 $ 10,371
Less: Intangible assets (average) (e) 1,082 1,083 1,086 1,089 1,096 1,037 1,010 1,013
Series A Preferred Stock (average) 290 290 290 290 291 291 291 291
Average tangible common equity (non-GAAP) $ 9,359 $ 9,241 $ 9,214 $ 9,191 $ 9,175 $ 9,145 $ 9,158 $ 9,067
Return on average tangible common equity from continuing
operations
Net income (loss) from continuing operations attributable to Key
common shareholders (GAAP) $ 224 $ 216 $ 230 $ 222 $ 246 $ 197 $ 242 $ 232
Average tangible common equity (non-GAAP) 9,359 9,241 9,214 9,191 9,175 9,145 9,158 9,067
Return on average tangible common equity from continuing
operations (non-GAAP) 9.50% 9.27 % 10.01 % 9.80 % 10.64 % 8.55 % 10.60 % 10.38%
Return on average tangible common equity consolidated
Net income (loss) attributable to Key common shareholders
(GAAP) $ 220 $ 213 $ 233 $ 227 $ 248 $ 180 $ 214 $ 236
Average tangible common equity (non-GAAP) 9,359 9,241 9,214 9,191 9,175 9,145 9,158 9,067
Return on average tangible common equity consolidated (non-
GAAP) 9.33% 9.14 % 10.14 % 10.02 % 10.72 % 7.81 % 9.37 % 10.56%
Cash efficiency ratio
Noninterest expense (GAAP) $ 736 $ 724 $ 711 $ 669 $ 704 $ 706 $ 687 $ 664
Less: Intangible asset amortization (GAAP) 999910 10 9 10
Adjusted noninterest expense (non-GAAP) $ 727 $ 715 $ 702 $ 660 $ 694 $ 696 $ 678 $ 654
Net interest income (GAAP) $ 602 $ 591 $ 584 $ 571 $ 582 $ 575 $ 573 $ 563
Plus: Taxable-equivalent adjustment 87766666
Noninterest income (GAAP) 485 470 488 437 490 417 455 435
Total taxable-equivalent revenue (non-GAAP) $ 1,095 $ 1,068 $ 1,079 $ 1,014 $ 1,078 $ 998 $ 1,034 $ 1,004
Cash efficiency ratio (non-GAAP) 66.4% 66.9 % 65.1 % 65.1 % 64.4 % 69.7 % 65.6 % 65.1%
102