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Shareholders' Equity
 12 Months Ended
Dec. 31, 2018
Equity [Abstract]  
Shareholders' Equity 23. Shareholders' Equity
Comprehensive Capital Plan

As previously reported and as authorized by the Board and pursuant to our 2018 capital plan (which is effective through the second quarter of 2019) submitted to and not objected to by the Federal Reserve, we have authority to repurchase up to $1.225 billion of our Common Shares. During 2018, we repurchased $325 million of Common Shares under our 2017 capital plan authorization and $820 million under our 2018 capital plan authorization.
Consistent with our 2017 capital plan, the Board declared a quarterly dividend of $.105 per Common Share for the first quarter of 2018, and $.12 per Common Share for the second quarter of 2018. The Board declared a quarterly dividend of $.17 per Common Share for the third and fourth quarters of 2018, consistent with our 2018 capital plan. These quarterly dividend payments brought our annual dividend to $.565 per Common Share for 2018.
Preferred Stock

The following table summarizes our preferred stock at December 31, 2018:
Preferred stock series
Amount outstanding (in millions)

Shares authorized and outstanding

Par value

Liquidation preference

Ownership interest per depositary share
Liquidation preference per depositary share

2018 dividends paid per depositary share

Fixed-to-Floating Rate Perpetual Noncumulative Series D
$
525

21,000

$
1

$
25,000

1/25th
$
1,000

$
50.00

Fixed-to-Floating Rate Perpetual Noncumulative Series E
500

500,000

1

1,000

1/40th
25

1.531252

Fixed Rate Perpetual Noncumulative Series F
425

425,000

1

1,000

1/40th
25

.529688

 
 
 
 
 
 
 
 


Capital Adequacy
KeyCorp and KeyBank (consolidated) 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, 2018, KeyCorp and KeyBank (consolidated) met all regulatory capital requirements.
KeyBank (consolidated) qualified for the “well capitalized” prompt corrective action capital category at December 31, 2018, because its capital and leverage ratios exceeded the prescribed threshold ratios for that capital category and it 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 the capital category for KeyBank (consolidated) to change.
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, 2018, 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.
At December 31, 2018, 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, 2018
 
 
 
 
 
 
 
 
TOTAL CAPITAL TO NET RISK-WEIGHTED ASSETS
 
 
 
 
 
 
 
 
Key
$
15,953

12.89
%
 
$
9,903

8.00
%
 
N/A

N/A

KeyBank (consolidated)
15,432

12.68

 
9,733

8.00

 
$
12,166

10.00
%
TIER 1 CAPITAL TO NET RISK-WEIGHTED ASSETS
 
 
 
 
 
 
 
 
Key
$
13,712

11.08
%
 
$
7,427

6.00
%
 
N/A

N/A

KeyBank (consolidated)
13,575

11.16

 
7,300

6.00

 
$
7,300

6.00
%
TIER 1 CAPITAL TO AVERAGE QUARTERLY TANGIBLE ASSETS
 
 
 
 
 
 
 
 
Key
$
13,712

9.89
%
 
$
5,548

4.00
%
 
N/A

N/A

KeyBank (consolidated)
13,575

9.93

 
5,470

4.00

 
$
6,838

5.00
%
December 31, 2017
 
 
 
 
 
 
 
 
TOTAL CAPITAL TO NET RISK-WEIGHTED ASSETS
 
 
 
 
 
 
 
 
Key
$
15,345

12.92
%
 
$
9,505

8.00
%
 
N/A

N/A

KeyBank (consolidated)
14,957

12.86

 
9,306

8.00

 
$
11,633

10.00
%
TIER 1 CAPITAL TO NET RISK-WEIGHTED ASSETS
 
 
 
 
 
 
 
 
Key
$
13,083

11.01
%
 
$
7,129

6.00
%
 
N/A

N/A

KeyBank (consolidated)
13,110

11.27

 
6,980

6.00

 
$
6,980

6.00
%
TIER 1 CAPITAL TO AVERAGE QUARTERLY TANGIBLE ASSETS
 
 
 
 
 
 
 
 
Key
$
13,083

9.73
%
 
$
5,379

4.00
%
 
N/A

N/A

KeyBank (consolidated)
13,110

9.91

 
5,293

4.00

 
$
6,617

5.00
%