KeyBank 2015 Annual Report Download - page 88

less than $1 million at December 31, 2015, and at December 31, 2014. Starting with the implementation of the
Regulatory Capital Rules on January 1, 2015, deferred tax assets that arise from net operating loss and tax credit
carryforwards are deductible from Common Equity Tier 1 on a phase-in basis. As of December 31, 2015, this
balance was approximately $1 million.
Figure 29 represents the details of our regulatory capital position at December 31, 2015, under the Regulatory
Capital Rules.
Figure 30 represents the details of our regulatory capital position at December 31, 2014.
Figure 29. Capital Components and Risk-Weighted Assets (Regulatory Capital Rules)
December 31,
dollars in millions 2015
COMMON EQUITY TIER 1
Key shareholders’ equity (GAAP) $ 10,746
Less: Series A Preferred Stock (a) 281
Common Equity Tier 1 capital before adjustments and deductions 10,465
Less: Goodwill, net of deferred taxes 1,034
Intangible assets, net of deferred taxes 26
Deferred tax assets 1
Net unrealized gains (losses) on available-for-sale securities, net of deferred taxes (58)
Accumulated gains (losses) on cash flow hedges, net of deferred taxes (20)
Amounts in AOCI attributed to pension and postretirement benefit costs, net of deferred taxes (365)
Total Common Equity Tier 1 capital $ 9,847
TIER 1 CAPITAL
Common Equity Tier 1 $ 9,847
Additional Tier 1 capital instruments and related surplus 281
Non-qualifying capital instruments subject to phase out 85
Less: Deductions 1
Total Tier 1 capital 10,212
TIER 2 CAPITAL
Tier 2 capital instruments and related surplus 578
Allowance for losses on loans and liability for losses on lending-related commitments (b) 881
Net unrealized gains on available-for-sale preferred stock classified as an equity security —
Less: Deductions —
Total Tier 2 capital 1,459
Total risk-based capital $ 11,671
RISK-WEIGHTED ASSETS
Risk-weighted assets on balance sheet $ 67,390
Risk-weighted off-balance sheet exposure 21,983
Market risk-equivalent assets 607
Gross risk-weighted assets 89,980
Less: Excess allowance for loan and lease losses —
Net risk-weighted assets $ 89,980
AVERAGE QUARTERLY TOTAL ASSETS $ 95,272
CAPITAL RATIOS
Tier 1 risk-based capital 11.35 %
Total risk-based capital 12.97
Leverage (c) 10.72
Common Equity Tier 1 10.94
(a) Net of capital surplus.
(b) The ALLL included in Tier 2 capital is limited by regulation to 1.25% of the institution’s standardized total risk-weighted assets
(excluding its standardized market risk-weighted assets). The ALLL includes $28 million of allowance classified as “discontinued
assets” on the balance sheet at December 31, 2015.
(c) 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 and deferred tax assets, and (iii) other deductions from assets for leverage capital purposes.
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