KeyBank 2015 Annual Report Download - page 89

Figure 30. Capital Components and Risk-Weighted Assets
December 31,
dollars in millions 2014
TIER 1 CAPITAL
Key shareholders’ equity $ 10,530
Qualifying capital securities 339
Less: Goodwill 1,057
Accumulated other comprehensive income (a) (395)
Other assets (b) 83
Total Tier 1 capital 10,124
TIER 2 CAPITAL
Allowance for losses on loans and liability for losses on lending-related commitments (c) 859
Net unrealized gains on equity securities available for sale 1
Qualifying long-term debt 840
Total Tier 2 capital 1,700
Total risk-based capital $ 11,824
TIER 1 COMMON EQUITY
Tier 1 capital $ 10,124
Less: Qualifying capital securities 339
Series A Preferred Stock (d) 282
Total Tier 1 common equity $ 9,503
RISK-WEIGHTED ASSETS
Risk-weighted assets on balance sheet $ 66,054
Risk-weighted off-balance sheet exposure 19,360
Less: Goodwill 1,057
Other assets (b) 120
Plus: Market risk-equivalent assets 863
Gross risk-weighted assets 85,100
Less: Excess allowance for loan and lease losses —
Net risk-weighted assets $ 85,100
AVERAGE QUARTERLY TOTAL ASSETS $ 91,116
CAPITAL RATIOS
Tier 1 risk-based capital 11.90 %
Total risk-based capital 13.89
Leverage (e) 11.26
Tier 1 common equity 11.17
(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, 2014.
(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 $29 million of
allowance classified as “discontinued assets” on the balance sheet at December 31, 2014.
(d) Net of capital surplus.
(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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