Shareholders' Equity

12 Months Ended

Dec. 31, 2014

Equity [Abstract]

Shareholders' Equity

22. Shareholders’ Equity

Comprehensive Capital Plan

As previously reported and as authorized by our Board of Directors and pursuant to our 2014 capital plan submitted to and not objected to by the Federal Reserve, we have authority to repurchase up to $542 million of our common shares, which include repurchases to offset issuances of common shares under our employee compensation plans. Common share repurchases under our 2014 capital plan began in the second quarter of 2014 and are expected to be executed through the first quarter of 2015. During 2014, we completed $355 million of common share repurchases under our 2014 capital plan authorization. In addition, we completed $141 million of common share repurchases in the first quarter of 2014 under our 2013 capital plan for a total of $496 million of open market common share repurchases during 2014.

The Board declared a quarterly dividend of $.055 per common share for the first quarter of 2014. Consistent with our 2014 capital plan, the Board declared a quarterly dividend of $.065 per common share for the second, third, and fourth quarters of 2014, which brought our annual dividend to $.25 per common share for 2014.

Capital Adequacy

KeyCorp and KeyBank must meet specific capital requirements imposed by federal banking regulators. Sanctions for failure to meet applicable capital requirements may include regulatory enforcement actions that restrict dividend payments, require the adoption of remedial measures to increase capital, terminate FDIC deposit insurance, and mandate the appointment of a conservator or receiver in severe cases. In addition, failure to maintain a “well capitalized” status affects how regulators evaluate applications for certain endeavors, including acquisitions, continuation and expansion of existing activities, and commencement of new activities, and could make clients and potential investors less confident. As of December 31, 2014, KeyCorp and KeyBank met all regulatory capital requirements.

As previously indicated in the “Supervision and Regulation” section in Item 1 of this report under the heading “Revised prompt corrective action capital category ratios,” KeyBank qualified for the “well capitalized” prompt corrective action capital category at December 31, 2014, because KeyBank’s capital and leverage ratios exceeded the prescribed threshold ratios for that capital category and KeyBank was not subject to any written agreement, order, or directive to meet and maintain a specific capital level for any capital measure. Since that date, we believe there has been no change in condition or event that has occurred that would cause KeyBank’s capital category to change.

As previously indicated in the “Supervision and Regulation” section in Item 1 of this report under the heading “Revised prompt corrective action capital category ratios,” BHCs are not assigned to any of the five prompt corrective action capital categories applicable to insured depository institutions. If, however, those categories applied to BHCs, we believe that KeyCorp would satisfy the criteria for a “well capitalized” institution at December 31, 2014, and since that date, we believe there has been no change in condition or event that has occurred that would cause such capital category to change.

Because the regulatory capital categories under the prompt corrective action regulations serve a limited supervisory function, investors should not use them as a representation of the overall financial condition or prospects of KeyBank or KeyCorp.

For additional information on capital adequacy, see “Supervision and Regulation” in Item 1 of this report.

At December 31, 2014, Key and KeyBank (consolidated) had regulatory capital in excess of all current minimum risk-based capital (including all adjustments for market risk) and leverage ratio requirements as shown in the following table.

	Actual					To Meet Minimum Capital Adequacy Requirements					To Qualify as Well Capitalized Under Federal Deposit Insurance Act
dollars in millions	Amount		Ratio			Amount		Ratio			Amount		Ratio
December 31, 2014
TOTAL CAPITAL TO NET RISK-WEIGHTED ASSETS
Key	$	11,824		13.89	%	$	6,808		8.00	%		N/A		N/A
KeyBank (consolidated)		10,833		13.49			6,425		8.00		$	8,031		10.00	%
TIER 1 CAPITAL TO NET RISK-WEIGHTED ASSETS
Key	$	10,124		11.90	%	$	3,404		4.00	%		N/A		N/A
KeyBank (consolidated)		9,151		11.39			3,213		4.00		$	4,819		6.00	%
TIER 1 CAPITAL TO AVERAGE QUARTERLY TANGIBLE ASSETS
Key	$	10,124		11.26	%	$	2,698		3.00	%		N/A		N/A
KeyBank (consolidated)		9,151		10.38			3,526		4.00		$	4,407		5.00	%
December 31, 2013
TOTAL CAPITAL TO NET RISK-WEIGHTED ASSETS
Key	$	11,941		14.33	%	$	6,666		8.00	%		N/A		N/A
KeyBank (consolidated)		10,451		13.33			6,273		8.00		$	7,841		10.00	%
TIER 1 CAPITAL TO NET RISK-WEIGHTED ASSETS
Key	$	9,968		11.96	%	$	3,333		4.00	%		N/A		N/A
KeyBank (consolidated)		8,496		10.83			3,136		4.00		$	4,705		6.00	%
TIER 1 CAPITAL TO AVERAGE QUARTERLY TANGIBLE ASSETS
Key	$	9,968		11.11	%	$	2,691		3.00	%		N/A		N/A
KeyBank (consolidated)		8,496		9.69			3,507		4.00		$	4,384		5.00	%