KeyBank 2015 Annual Report Download - page 85

CCAR and capital actions
As part of its ongoing supervisory process, the Federal Reserve requires BHCs like KeyCorp to submit an annual
comprehensive capital plan and to update that plan to reflect material changes in the BHC’s risk profile, business
strategies, or corporate structure, including but not limited to changes in planned capital actions. In January 2015,
we submitted to the Federal Reserve and provided to the OCC our 2015 capital plan under the annual CCAR
process. On March 11, 2015, the Federal Reserve announced that it did not object to our 2015 capital plan. The
2015 capital plan includes a common share repurchase program of up to $725 million, which includes
repurchases to offset issuances of common shares under our employee compensation plans. Common share
repurchases under the 2015 capital plan began in the second quarter of 2015 and were suspended in the fourth
quarter of 2015 due to the pending merger with First Niagara. Share repurchases are expected to be included in
the upcoming 2016 CCAR submission.
During 2015, we repurchased $252 million of common shares under our 2015 capital plan authorization. In
addition, during the first quarter of 2015, we repurchased $208 million of common shares under our 2014 capital
plan for a total of $460 million of common share repurchases during 2015.
Dividends
As previously reported, our 2015 capital plan proposed an increase in our quarterly common share dividend from
$.065 to $.075 per share, which was approved by our Board in May 2015. An additional potential increase in our
quarterly common share dividend, up to $.085 per share, will be considered by the Board in 2016 for the fifth
quarter of the 2015 capital plan. Other changes to future dividends may be evaluated by the Board based upon
our earnings, financial condition, and other factors, including regulatory review. Further information regarding
the capital planning process and CCAR is included in the “Supervision and Regulation” section of Item 1 of this
report under the heading “Regulatory capital and liquidity.”
Consistent with the 2015 capital plan, we made a dividend payment of $.075 per share during each of the second,
third, and fourth quarters of 2015, totalling $189 million, and a dividend payment of $.065 per share, or $55
million, during the first quarter of 2015.
We also made quarterly dividend payments of $1.9375 per share on our Series A Preferred Stock during each
quarter of 2015 for a total of $23 million.
Common shares outstanding
Our common shares are traded on the New York Stock Exchange under the symbol KEY with 27,058 holders of
record at December 31, 2015. Our book value per common share was $12.51 based on 835.8 million shares
outstanding at December 31, 2015, compared to $11.91 based on 859.4 million shares outstanding at
December 31, 2014. At December 31, 2015, our tangible book value per common share was $11.22, compared to
$10.65 at December 31, 2014.
Figure 45 in the section entitled “Fourth Quarter Results” shows the market price ranges of our common shares,
per common share earnings, and dividends paid by quarter for each of the last two years.
Figure 27 compares the price performance of our common shares (based on an initial investment of $100 on
December 31, 2010, and assuming reinvestment of dividends) with that of the Standard & Poor’s 500 Index and a
group of other banks that constitute our peer group. The peer group consists of the banks that make up the
Standard & Poor’s 500 Regional Bank Index and the banks that make up the Standard & Poor’s 500 Diversified
Bank Index. We are included in the Standard & Poor’s 500 Index and the peer group.
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