Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2019 | Jul. 29, 2019 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2019 | |
Entity File Number | 001-11302 | |
Entity Registrant Name | KEYCORP /NEW/ | |
Entity Incorporation, State or Country Code | OH | |
Entity Tax Identification Number | 34-6542451 | |
Entity Address, Address Line One | 127 Public Square, | |
Entity Address, City or Town | Cleveland, | |
Entity Address, State or Province | OH | |
Entity Address, Postal Zip Code | 44114-1306 | |
City Area Code | 216 | |
Local Phone Number | 689-3000 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 1,003,258,801 | |
Amendment Flag | false | |
Entity Central Index Key | 0000091576 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Common Stock [Member] | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Common Shares, $1 par value | |
Trading Symbol | KEY | |
Security Exchange Name | NYSE | |
Series E Preferred Stock [Member] | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Perpetual Non-Cumulative Preferred Stock, Series E) | |
Trading Symbol | KEY PrI | |
Security Exchange Name | NYSE | |
Series F Preferred Stock [Member] | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Cumulative Preferred Stock, Series F) | |
Trading Symbol | KEY PrJ | |
Security Exchange Name | NYSE | |
Series G Preferred Stock [Member] | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Cumulative Preferred Stock, Series G) | |
Trading Symbol | KEY PrK | |
Security Exchange Name | NYSE |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 | |
ASSETS | |||
Cash and due from banks | $ 607 | $ 678 | |
Short-term investments | 2,443 | 2,562 | |
Trading account assets | 1,005 | 849 | |
Securities available for sale | 21,528 | 19,428 | |
Held-to-maturity securities (fair value: $10,899 and $11,122) | 10,878 | 11,519 | |
Other investments | 632 | 666 | |
Loans, net of unearned income of $309 and $678 | 91,937 | 89,552 | |
Less: Allowance for loan and lease losses | (890) | (883) | |
Net loans | 91,047 | 88,669 | |
Loans held for sale | [1] | 1,790 | 1,227 |
Premises and equipment | 829 | 882 | |
Goodwill | 2,664 | 2,516 | |
Other intangible assets | 298 | 316 | |
Corporate-owned life insurance | 4,201 | 4,171 | |
Accrued income and other assets | 5,633 | 5,030 | |
Discontinued assets | 990 | 1,100 | |
Total assets | 144,545 | 139,613 | |
Deposits in domestic offices: | |||
NOW and money market deposit accounts | 63,619 | 59,918 | |
Savings deposits | 4,747 | 4,854 | |
Certificates of deposit ($100,000 or more) | 8,084 | 7,913 | |
Other time deposits | 5,524 | 5,332 | |
Total interest-bearing deposits | 81,974 | 78,017 | |
Noninterest-bearing deposits | 27,972 | 29,292 | |
Total deposits | 109,946 | 107,309 | |
Federal funds purchased and securities sold under repurchase agreements | 161 | 319 | |
Bank notes and other short-term borrowings | 720 | 544 | |
Accrued expense and other liabilities | 2,435 | 2,113 | |
Long-term debt | 14,312 | 13,732 | |
Total liabilities | 127,574 | 124,017 | |
EQUITY | |||
Preferred stock | 1,900 | 1,450 | |
Common Shares, $1 par value; authorized 2,100,000,000 and 1,400,000,000 shares; issued 1,256,702,081 and 1,256,702,081 shares | 1,257 | 1,257 | |
Capital surplus | 6,266 | 6,331 | |
Retained earnings | 12,005 | 11,556 | |
Treasury stock, at cost (253,587,973 and 237,198,944 shares) | (4,457) | (4,181) | |
Accumulated other comprehensive income (loss) | (2) | (818) | |
Key shareholders’ equity | 16,969 | 15,595 | |
Noncontrolling interests | 2 | 1 | |
Total equity | 16,971 | 15,596 | |
Total liabilities and equity | $ 144,545 | $ 139,613 | |
[1] | Total loans held for sale include real estate — residential mortgage loans held for sale at fair value of $164 million at June 30, 2019 , and $54 million at December 31, 2018 . |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Held-to-maturity securities, fair value | $ 10,899,000,000 | $ 11,122,000,000 |
Unearned income on loans | 309,000,000 | 678,000,000 |
Loans held for sale | 0 | |
Aggregate amount of certificates of deposit, denominations | $ 100,000,000,000 | $ 100,000,000,000 |
Common shares, par value (in usd per share) | $ 1 | $ 1 |
Common shares, shares authorized (in shares) | 2,100,000,000 | 1,400,000,000 |
Common shares, shares issued (in shares) | 1,256,702,081 | 1,256,702,081 |
Treasury stock, shares (in shares) | 253,587,973 | 237,198,944 |
Residential Mortgage [Member] | ||
Loans held for sale | $ 164,000,000 | $ 54,000,000 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||
INTEREST INCOME | |||||
Loans | $ 1,082 | $ 1,000 | $ 2,148 | $ 1,940 | |
Loans held for sale | 15 | 16 | 28 | 28 | |
Securities available for sale | 135 | 97 | 264 | 192 | |
Held-to-maturity securities | 67 | 72 | 135 | 141 | |
Trading account assets | 9 | 7 | 17 | 14 | |
Short-term investments | 17 | 8 | 33 | 16 | |
Other investments | 4 | 5 | 8 | 11 | |
Total interest income | 1,329 | 1,205 | 2,633 | 2,342 | |
INTEREST EXPENSE | |||||
Deposits | 223 | 112 | 425 | 203 | |
Federal funds purchased and securities sold under repurchase agreements | 0 | 5 | 1 | 9 | |
Bank notes and other short-term borrowings | 5 | 7 | 9 | 13 | |
Long-term debt | 120 | 102 | 240 | 194 | |
Total interest expense | 348 | 226 | 675 | 419 | |
NET INTEREST INCOME | 981 | 979 | 1,958 | 1,923 | |
Provision for credit losses | 74 | 64 | 136 | 125 | |
Net interest income after provision for credit losses | 907 | 915 | 1,822 | 1,798 | |
NONINTEREST INCOME | |||||
Trust and investment services income | 122 | 128 | 237 | 261 | |
Investment banking and debt placement fees | 163 | 155 | 273 | 298 | |
Service charges on deposit accounts | 83 | 91 | 165 | 180 | |
Operating lease income and other leasing gains | 44 | (6) | 81 | 26 | |
Corporate services income | 53 | 61 | 108 | 123 | |
Cards and payments income | 73 | 71 | 139 | 133 | |
Corporate-owned life insurance income | 33 | 32 | 65 | 64 | |
Consumer mortgage income | 10 | 7 | 18 | 14 | |
Mortgage servicing fees | 24 | 22 | 45 | 42 | |
Other income | [1] | 17 | 99 | 27 | 120 |
Total noninterest income | 622 | 660 | 1,158 | 1,261 | |
NONINTEREST EXPENSE | |||||
Personnel | 589 | 586 | 1,152 | 1,180 | |
Net occupancy | 73 | 79 | 145 | 157 | |
Computer processing | 56 | 51 | 110 | 103 | |
Business services and professional fees | 45 | 51 | 89 | 92 | |
Equipment | 24 | 26 | 48 | 52 | |
Operating lease expense | 32 | 30 | 58 | 57 | |
Marketing | 24 | 26 | 43 | 51 | |
FDIC assessment | 9 | 21 | 16 | 42 | |
Intangible asset amortization | 22 | 25 | 44 | 54 | |
OREO expense, net | 4 | 0 | 7 | 2 | |
Other expense | 141 | 98 | 270 | 209 | |
Total noninterest expense | 1,019 | 993 | 1,982 | 1,999 | |
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 510 | 582 | 998 | 1,060 | |
Income taxes | 87 | 103 | 169 | 165 | |
INCOME (LOSS) FROM CONTINUING OPERATIONS | 423 | 479 | 829 | 895 | |
Income (loss) from discontinued operations | 2 | 3 | 3 | 5 | |
NET INCOME (LOSS) | 425 | 482 | 832 | 900 | |
Less: Net income (loss) attributable to noncontrolling interests | 0 | 0 | 0 | 0 | |
NET INCOME (LOSS) ATTRIBUTABLE TO KEY | 425 | 482 | 832 | 900 | |
Income (loss) from continuing operations attributable to Key common shareholders | 403 | 464 | 789 | 866 | |
Net income (loss) attributable to Key common shareholders | $ 405 | $ 467 | $ 792 | $ 871 | |
Per Common Share: | |||||
Income (loss) from continuing operations attributable to Key common shareholders (in usd per share) | $ 0.40 | $ 0.44 | $ 0.79 | $ 0.82 | |
Income (loss) from discontinued operations, net of taxes (in usd per share) | 0 | 0 | 0 | 0 | |
Net income (loss) attributable to Key common shareholders (in usd per share) | [2] | 0.40 | 0.44 | 0.79 | 0.82 |
Per Common Share — assuming dilution: | |||||
Income (loss) from continuing operations attributable to Key common shareholders (in usd per share) | 0.40 | 0.44 | 0.78 | 0.81 | |
Income (loss) from discontinued operations, net of taxes (in usd per share) | 0 | 0 | 0 | 0 | |
Net income (loss) attributable to Key common shareholders (in usd per share) | [2] | 0.40 | 0.44 | 0.78 | 0.81 |
Cash dividends declared per common share (in usd per share) | $ 0.17 | $ 0.120 | $ 0.340 | $ 0.225 | |
Weighted-average common shares outstanding (000) (in shares) | 999,163 | 1,052,652 | 1,003,047 | 1,054,378 | |
Effect of common share options and other stock awards (in shares) | 8,801 | 13,141 | 9,318 | 14,561 | |
Weighted-average common shares and potential common shares outstanding (in shares) | [3] | 1,007,964 | 1,065,793 | 1,012,365 | 1,068,939 |
[1] | For the three and six months ended June 30, 2019 , and June 30, 2018 , net securities gains totaled less than $1 million. For the three and six months ended June 30, 2019 , and June 30, 2018 , we did not have any impairment losses related to securities. | ||||
[2] | EPS may not foot due to rounding. | ||||
[3] | Assumes conversion of Common Share options and other stock awards and/or convertible preferred stock, as applicable. |
Consolidated Statements of In_2
Consolidated Statements of Income (Parenthetical) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Statement [Abstract] | ||||
Net securities gains (less than $1 million)) | $ 1,000,000 | $ 1,000,000 | $ 1,000,000 | $ 1,000,000 |
Impaired losses related to securities | $ 0 | $ 0 | $ 0 | $ 0 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 425 | $ 482 | $ 832 | $ 900 |
Other comprehensive income (loss), net of tax: | ||||
Net unrealized gains (losses) on securities available for sale, net of income taxes of $91, ($20), $147, and ($67) | 291 | (66) | 475 | (216) |
Net unrealized gains (losses) on derivative financial instruments, net of income taxes of $68, ($4), $99 and ($24) | 219 | (17) | 318 | (80) |
Foreign currency translation adjustments, net of income taxes of $1, $3, $1 and $3 | 1 | (14) | 4 | (16) |
Net pension and postretirement benefit costs, net of income taxes of $5, $1, $6 and $2 | 17 | 3 | 19 | 6 |
Total other comprehensive income (loss), net of tax | 528 | (94) | 816 | (306) |
Comprehensive income (loss) | 953 | 388 | 1,648 | 594 |
Less: Comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Comprehensive income (loss) attributable to Key | $ 953 | $ 388 | $ 1,648 | $ 594 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Income taxes effect on net unrealized (losses) gains on securities available for sale | $ 91 | $ (20) | $ 147 | $ (67) |
Income taxes effect on net unrealized gains (losses) on derivative financial instruments | 68 | (4) | 99 | (24) |
Income taxes effect on foreign currency translation adjustments | 1 | 3 | 1 | 3 |
Income taxes effect on net pension and postretirement benefit costs | $ 5 | $ 1 | $ 6 | $ 2 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Millions | Total | Series D Preferred Stock [Member] | Series E Preferred Stock [Member] | Series F Preferred Stock [Member] | Preferred Stock [Member] | Common Stock [Member] | Capital Surplus [Member] | Retained Earnings [Member] | Retained Earnings [Member]Series D Preferred Stock [Member] | Retained Earnings [Member]Series E Preferred Stock [Member] | Retained Earnings [Member]Series F Preferred Stock [Member] | Treasury Stock, at Cost [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Noncontrolling Interests [Member] |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Beginning Balance | $ 1,025 | $ 1,257 | $ 6,335 | $ 10,335 | $ (3,150) | $ (779) | $ 2 | |||||||
Beginning Balance, Preferred Shares (in shares) at Dec. 31, 2017 | 521,000 | |||||||||||||
Beginning Balance, Common Shares (in shares) at Dec. 31, 2017 | 1,069,084,000 | |||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Beginning Balance | $ 1,025 | $ 1,257 | 6,315 | 10,970 | (3,382) | (1,085) | 2 | |||||||
Other amounts reclassified from AOCI, net of income taxes | $ (5) | 5 | ||||||||||||
Net income (loss) | 900 | 900 | 0 | |||||||||||
Other comprehensive income (loss) | (306) | (306) | ||||||||||||
Deferred compensation | 12 | |||||||||||||
Cash dividends declared on common shares | (239) | |||||||||||||
Cash dividends declared on preferred stock | $ (13) | $ (16) | ||||||||||||
Open market common share repurchases (in shares) | (13,438,000) | |||||||||||||
Open market Common Share repurchases | (279) | |||||||||||||
Employee equity compensation program Common Share repurchases (in shares) | (2,221,000) | |||||||||||||
Employee equity compensation program Common Share repurchases | (46) | |||||||||||||
Common shares reissued (returned) for stock options and other employee benefit plans, shares | 5,519,000 | |||||||||||||
Common Shares reissued (returned) for stock options and other employee benefit plans | (32) | 93 | ||||||||||||
Ending Balance, Preferred Shares (in shares) at Jun. 30, 2018 | 521,000 | |||||||||||||
Ending Balance, Common Shares (in shares) at Jun. 30, 2018 | 1,058,944,000 | |||||||||||||
Ending Balance at Jun. 30, 2018 | $ 1,025 | $ 1,257 | 6,315 | 10,970 | (3,382) | (1,085) | 2 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Beginning Balance | $ 1,025 | $ 1,257 | 6,289 | 10,624 | (3,260) | (991) | 2 | |||||||
Beginning Balance, Preferred Shares (in shares) at Mar. 31, 2018 | 521,000 | |||||||||||||
Beginning Balance, Common Shares (in shares) at Mar. 31, 2018 | 1,064,939,000 | |||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Beginning Balance | $ 1,025 | $ 1,257 | 6,315 | 10,970 | (3,382) | (1,085) | 2 | |||||||
Other amounts reclassified from AOCI, net of income taxes | (5) | 5 | ||||||||||||
Net income (loss) | 482 | 482 | 0 | |||||||||||
Other comprehensive income (loss) | (94) | (94) | ||||||||||||
Deferred compensation | 6 | |||||||||||||
Cash dividends declared on common shares | (127) | |||||||||||||
Cash dividends declared on preferred stock | (6) | (8) | ||||||||||||
Open market common share repurchases (in shares) | (6,105,000) | |||||||||||||
Open market Common Share repurchases | (123) | |||||||||||||
Employee equity compensation program Common Share repurchases (in shares) | (155,000) | |||||||||||||
Employee equity compensation program Common Share repurchases | (3) | |||||||||||||
Common shares reissued (returned) for stock options and other employee benefit plans, shares | 265,000 | |||||||||||||
Common Shares reissued (returned) for stock options and other employee benefit plans | 20 | 4 | ||||||||||||
Ending Balance, Preferred Shares (in shares) at Jun. 30, 2018 | 521,000 | |||||||||||||
Ending Balance, Common Shares (in shares) at Jun. 30, 2018 | 1,058,944,000 | |||||||||||||
Ending Balance at Jun. 30, 2018 | $ 1,025 | $ 1,257 | 6,315 | 10,970 | (3,382) | (1,085) | 2 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Beginning Balance | 1,025 | 1,257 | 6,315 | 10,970 | (3,382) | (1,085) | 2 | |||||||
Beginning Balance | 15,596 | $ 1,450 | $ 1,257 | 6,331 | 11,556 | (4,181) | (818) | 1 | ||||||
Beginning Balance, Preferred Shares (in shares) at Dec. 31, 2018 | 946,000 | |||||||||||||
Beginning Balance, Common Shares (in shares) at Dec. 31, 2018 | 1,019,503,000 | |||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Beginning Balance | 16,971 | $ 1,900 | $ 1,257 | 6,266 | 12,005 | (4,457) | (2) | 2 | ||||||
Net income (loss) | 832 | 832 | 0 | |||||||||||
Other comprehensive income (loss) | 816 | 816 | ||||||||||||
Deferred compensation | 1 | |||||||||||||
Cash dividends declared on common shares | (343) | |||||||||||||
Cash dividends declared on preferred stock | (13) | (15) | $ (12) | |||||||||||
Issuance of Preferred Stock (in shares) | 450,000 | |||||||||||||
Shares issued | $ 450 | (15) | ||||||||||||
Open market common share repurchases (in shares) | (20,325,000) | |||||||||||||
Open market Common Share repurchases | (346) | |||||||||||||
Employee equity compensation program Common Share repurchases (in shares) | (1,878,000) | |||||||||||||
Employee equity compensation program Common Share repurchases | (3) | (33) | ||||||||||||
Common shares reissued (returned) for stock options and other employee benefit plans, shares | 5,814,000 | |||||||||||||
Common Shares reissued (returned) for stock options and other employee benefit plans | (48) | 103 | ||||||||||||
Net contribution from (distribution to) noncontrolling interests | 1 | |||||||||||||
Ending Balance, Preferred Shares (in shares) at Jun. 30, 2019 | 21,000 | 500,000 | 425,000 | 1,396,000 | ||||||||||
Ending Balance, Common Shares (in shares) at Jun. 30, 2019 | 1,003,114,000 | |||||||||||||
Ending Balance at Jun. 30, 2019 | 16,971 | $ 1,900 | $ 1,257 | 6,266 | 12,005 | (4,457) | (2) | 2 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Beginning Balance | $ 1,450 | $ 1,257 | 6,259 | 11,771 | (4,283) | (530) | 2 | |||||||
Beginning Balance, Preferred Shares (in shares) at Mar. 31, 2019 | 946,000 | |||||||||||||
Beginning Balance, Common Shares (in shares) at Mar. 31, 2019 | 1,013,186,000 | |||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Beginning Balance | 16,971 | $ 1,900 | $ 1,257 | 6,266 | 12,005 | (4,457) | (2) | 2 | ||||||
Net income (loss) | 425 | 425 | 0 | |||||||||||
Other comprehensive income (loss) | 528 | 528 | ||||||||||||
Deferred compensation | 4 | |||||||||||||
Cash dividends declared on common shares | (171) | |||||||||||||
Cash dividends declared on preferred stock | $ (7) | $ (7) | $ (6) | |||||||||||
Issuance of Preferred Stock (in shares) | 450,000 | |||||||||||||
Shares issued | $ 450 | (15) | ||||||||||||
Open market common share repurchases (in shares) | (10,357,000) | |||||||||||||
Open market Common Share repurchases | (179) | |||||||||||||
Employee equity compensation program Common Share repurchases (in shares) | (55,000) | |||||||||||||
Employee equity compensation program Common Share repurchases | (1) | (1) | ||||||||||||
Common shares reissued (returned) for stock options and other employee benefit plans, shares | 340,000 | |||||||||||||
Common Shares reissued (returned) for stock options and other employee benefit plans | 19 | 6 | ||||||||||||
Net contribution from (distribution to) noncontrolling interests | 0 | |||||||||||||
Ending Balance, Preferred Shares (in shares) at Jun. 30, 2019 | 21,000 | 500,000 | 425,000 | 1,396,000 | ||||||||||
Ending Balance, Common Shares (in shares) at Jun. 30, 2019 | 1,003,114,000 | |||||||||||||
Ending Balance at Jun. 30, 2019 | 16,971 | $ 1,900 | $ 1,257 | 6,266 | 12,005 | (4,457) | (2) | 2 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Beginning Balance | $ 16,971 | $ 1,900 | $ 1,257 | $ 6,266 | $ 12,005 | $ (4,457) | $ (2) | $ 2 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Equity (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Cash dividends declared on common shares (in usd per share) | $ 0.17 | $ 0.120 | $ 0.340 | $ 0.225 |
Series D Preferred Stock [Member] | ||||
Cash dividends declared on Preferred Stock (in usd per share) | 12.50 | 12.50 | 25 | 25 |
Series E Preferred Stock [Member] | ||||
Cash dividends declared on Preferred Stock (in usd per share) | 0.382813 | $ 0.382813 | 0.765626 | $ 0.765626 |
Series F Preferred Stock [Member] | ||||
Cash dividends declared on Preferred Stock (in usd per share) | $ 0.353125 | $ 0.70625 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
OPERATING ACTIVITIES | ||
Net income (loss) | $ 832 | $ 900 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Provision for credit losses | 136 | 125 |
Depreciation and amortization expense, net | 121 | 195 |
Accretion of acquired loans | 28 | 22 |
Increase in cash surrender value of corporate-owned life insurance | (57) | (56) |
Stock-based compensation expense | 48 | 53 |
FDIC reimbursement (payments), net of FDIC expense | 1 | 2 |
Deferred income taxes (benefit) | 68 | 17 |
Proceeds from sales of loans held for sale | 4,445 | 5,703 |
Originations of loans held for sale, net of repayments | (4,890) | (5,944) |
Net losses (gains) on sales of loans held for sale | (70) | (89) |
Net losses (gains) and writedown on OREO | 4 | 2 |
Net losses (gains) on leased equipment | (11) | (37) |
Net losses (gains) on sales of fixed assets | 11 | 4 |
Net decrease (increase) in trading account assets | (155) | 3 |
Gain on sale of KIBS | 0 | (78) |
Other operating activities, net | 209 | (414) |
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | 720 | 408 |
INVESTING ACTIVITIES | ||
Cash received (used) in acquisitions, net of cash acquired | (185) | 0 |
Proceeds from sale of KIBS | 0 | 119 |
Net decrease (increase) in short-term investments, excluding acquisitions | 119 | 1,801 |
Purchases of securities available for sale | (2,940) | (1,167) |
Proceeds from prepayments and maturities of securities available for sale | 1,457 | 1,640 |
Proceeds from prepayments and maturities of held-to-maturity securities | 652 | 797 |
Purchases of held-to-maturity securities | (9) | (1,242) |
Purchases of other investments | (30) | (6) |
Proceeds from sales of other investments | 28 | 22 |
Proceeds from prepayments and maturities of other investments | 36 | 2 |
Net decrease (increase) in loans, excluding acquisitions, sales and transfers | (2,747) | (2,044) |
Proceeds from sales of portfolio loans | 146 | 99 |
Proceeds from corporate-owned life insurance | 27 | 41 |
Purchases of premises, equipment, and software | (38) | (36) |
Proceeds from sales of premises and equipment | 1 | 1 |
Proceeds from sales of OREO | 10 | 14 |
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES | (3,473) | 41 |
FINANCING ACTIVITIES | ||
Net increase (decrease) in deposits, excluding acquisitions | 2,637 | (687) |
Net increase (decrease) in short-term borrowings | 18 | 1,295 |
Net proceeds from issuance of long-term debt | 1,351 | 1,758 |
Payments on long-term debt | (1,002) | (2,123) |
Issuance of preferred shares | 435 | 0 |
Open market Common Share repurchases | (346) | (279) |
Employee equity compensation program Common Share repurchases | (33) | (46) |
Net proceeds from reissuance of Common Shares | 5 | 14 |
Cash dividends paid | (383) | (268) |
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | 2,682 | (336) |
NET INCREASE (DECREASE) IN CASH AND DUE FROM BANKS | (71) | 113 |
CASH AND DUE FROM BANKS AT BEGINNING OF PERIOD | 678 | 671 |
CASH AND DUE FROM BANKS AT END OF PERIOD | 607 | 784 |
Additional disclosures relative to cash flows: | ||
Interest paid | 619 | 389 |
Income taxes paid (refunded) | (43) | 14 |
Noncash items: | ||
Reduction of secured borrowing and related collateral | 2 | 15 |
Loans transferred to portfolio from held for sale | 5 | 21 |
Loans transferred to held for sale from portfolio | 52 | 3 |
Loans transferred to OREO | 16 | 9 |
CMBS risk retentions | $ 9 | $ 0 |
Basis of Presentation and Accou
Basis of Presentation and Accounting Policies | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Accounting Policies | 1. Basis of Presentation and Accounting Policies The consolidated financial statements include the accounts of KeyCorp and its subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. Some previously reported amounts have been reclassified to conform to current reporting practices. The consolidated financial statements include any voting rights entities in which we have a controlling financial interest. In accordance with the applicable accounting guidance for consolidations, we consolidate a VIE if we have: (i) a variable interest in the entity; (ii) the power to direct activities of the VIE that most significantly affect the entity’s economic performance; and (iii) the obligation to absorb losses of the entity or the right to receive benefits from the entity that could potentially be significant to the VIE (i.e., we are considered to be the primary beneficiary). Variable interests can include equity interests, subordinated debt, derivative contracts, leases, service agreements, guarantees, standby letters of credit, loan commitments, and other contracts, agreements, and financial instruments. See Note 10 (“ Variable Interest Entities ”) for information on our involvement with VIEs. We use the equity method to account for unconsolidated investments in voting rights entities or VIEs if we have significant influence over the entity’s operating and financing decisions (usually defined as a voting or economic interest of 20% to 50% , but not controlling). Unconsolidated investments in voting rights entities or VIEs in which we have a voting or economic interest of less than 20% are carried at the cost measurement alternative or at fair value. Investments held by our registered broker-dealer and investment company subsidiaries (principal investing entities and Real Estate Capital line of business) are carried at fair value. We believe that the unaudited consolidated interim financial statements reflect all adjustments of a normal recurring nature and disclosures that are necessary for a fair presentation of the results for the interim periods presented. The results of operations for the interim period are not necessarily indicative of the results of operations to be expected for the full year. The interim financial statements should be read in conjunction with the audited consolidated financial statements and related notes included in our 2018 Form 10-K. In preparing these financial statements, subsequent events were evaluated through the time the financial statements were issued. Financial statements are considered issued when they are widely distributed to all shareholders and other financial statement users or filed with the SEC. Accounting Guidance Adopted in 2019 Standard Date of Adoption Description Effect on Financial Statements or Other Significant Matters ASU 2016-02, Leases (Topic 842) ASU 2018-01, Leases (Topic 842): Land Easement Practical Expedient ASU 2018-10, Codification Improvements to Topic 842 ASU 2018-11, Leases (Topic 842): Targeted Improvements ASU 2018-20, Leases (Topic 842): Narrow Scope Improvements for Lessors ASU 2019-01, Codification Improvements to Topic 842 January 1, 2019 The ASUs create and amend ASC Topic 842, Leases , and supersede Topic 840, Leases. The new guidance requires that a lessee recognize assets and liabilities for leases with lease terms of more than 12 months. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. Leveraged leases that commenced before the effective date of the new guidance are grandfathered. The recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification as a finance or operating lease. However, both types of leases are required to be recognized on the balance sheet. ASC 842 requires enhanced disclosures to better understand the amount, timing, and uncertainty of cash flows arising from leases. Qualitative and quantitative disclosures are required to provide additional information about the amounts recorded in the financial statements. Although substantially unchanged, certain amendments provide clarifications related to lessor accounting. The guidance should be implemented using a modified retrospective approach. However, entities may choose to measure and present the changes at the beginning of the earliest period presented or to reflect the changes as of the adoption date. Key adopted this guidance on January 1, 2019, using the package of practical expedients, which allowed Key to maintain historic lease identification and classification, and permitted Key not to reassess initial direct costs under the new guidance. Key also elected the practical expedient on not separating lease components from nonlease components for all of its leases. Adoption resulted in an increase in right-of-use assets and associated lease liabilities arising from operating leases in which Key is the lessee of approximately $710 million on our Consolidated Balance Sheets at January 1, 2019. Right of use assets, lease liabilities, and other changes as a result of adoption are not reflected in comparable periods presented prior to that date. The adoption of this guidance did not have a material impact on the recognition of operating lease expense in our Consolidated Statements of Income. The amount of the right-of-use assets and associated lease liabilities recorded at adoption was based on the present value of unpaid future minimum lease payments. These payments were discounted using Key’s incremental borrowing rate, consistent with what Key would pay to borrow on a collateralized basis over a term similar to each lease. For more information, please see Note 9 (“Leases”). ASU 2017-08, Premium Amortization on Purchased Callable Debt Securities January 1, 2019 The ASU amends ASC Topic 310-20, Receivables — Nonrefundable Fees and Other Costs , and shortens the amortization period to the earliest call date for certain callable debt securities held at a premium. Securities held at a discount will continue to be amortized to maturity. The guidance should be implemented on a modified retrospective basis using a cumulative-effect adjustment. The adoption of this guidance did not have a material effect on our financial condition or results of operations. ASU 2018-07, Stock Compensation - Improvements to Nonemployee Share-Based Payment Accounting January 1, 2019 The ASU amends ASC Topic 718, Stock Compensation , and simplifies the accounting for share based payments granted to nonemployees for goods and services. The guidance should be implemented on a modified retrospective basis using a cumulative-effect adjustment. The adoption of this guidance did not affect our financial condition or results of operations. ASU 2018-13, Fair Value Measurement: Disclosure Framework September 30, 2018 (removed disclosures only); January 1, 2019, remaining requirements An entity is permitted to early adopt any removed or modified disclosures upon issuance of this ASU and delay adoption of the additional disclosures until their effective date. The ASU amends disclosure requirements related to fair value measurements. Specifically, entities are no longer required to disclose transfers between Level 1 and Level 2 of the fair value hierarchy, or qualitatively disclose the valuation process for Level 3 fair value measurements. The updated guidance requires disclosure of the changes in unrealized gains and losses for the period included in Other Comprehensive Income for recurring Level 3 fair value measurements. Entities also will be required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. Key removed the disclosures no longer required by the guidance as of September 30, 2018, and early adopted the additional provisions of the standard in the first quarter of 2019. The adoption of this standard did not result in significant changes to Key’s disclosures, and there was no effect to our financial condition or results of operations. Standard Date of Adoption Description Effect on Financial Statements or Other Significant Matters ASU 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract January 1, 2019 Early adoption. The ASU amends ASC Topic 350-40 to align the accounting for costs incurred in a cloud computing arrangement with the guidance on developing internal use software. Specifically, if a cloud computing arrangement is deemed to be a service contract, certain implementation costs are eligible for capitalization. The new guidance prescribes the balance sheet and income statement presentation and cash flow classification for the capitalized costs and related amortization expense. It also requires additional quantitative and qualitative disclosures. The guidance may be adopted prospectively or retrospectively. Key early adopted this guidance effective January 1, 2019, on a prospective basis. The adoption of this guidance did not have a material effect on our financial condition or results of operations. ASU 2019-04, Codification Improvements to Topic 815, Derivatives and Hedging (ASU Topic #3), and Topic 825, Financial Instruments (ASU Topic #4) May 1, 2019 Early adoption upon issuance The ASU provides technical corrections to previously adopted ASUs 2016-01 and 2017-12 and clarifies issues related to partial-term fair value hedges, fair value hedge basis adjustments, and how to measure changes in fair value of a hedged item. It also clarifies certain issues related to equity securities and the measurement alternative. Amendments related to ASU 2016-01 should be adopted using a modified retrospective approach, except for those related to equity securities without readily determinable fair values for which the measurement alternative is elected, that should be applied prospectively. Amendments related to ASU 2017-12 can be applied on either a prospective or retrospective basis, with certain exceptions. Key early adopted this guidance effective May 1, 2019. The adoption of this accounting guidance did not effect our financial condition or results of operations. |
Earnings Per Common Share
Earnings Per Common Share | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | 2. Earnings Per Common Share Basic earnings per share is the amount of earnings (adjusted for dividends declared on our preferred stock) available to each Common Share outstanding during the reporting periods. Diluted earnings per share is the amount of earnings available to each Common Share outstanding during the reporting periods adjusted to include the effects of potentially dilutive Common Shares. Potentially dilutive Common Shares include stock options and other stock-based awards. Potentially dilutive Common Shares are excluded from the computation of diluted earnings per share in the periods where the effect would be antidilutive. Our basic and diluted earnings per Common Share are calculated as follows: Three months ended June 30, Six months ended June 30, dollars in millions, except per share amounts 2019 2018 2019 2018 EARNINGS Income (loss) from continuing operations $ 423 $ 479 $ 829 $ 895 Less: Net income (loss) attributable to noncontrolling interests — — — — Income (loss) from continuing operations attributable to Key 423 479 829 895 Less: Dividends on Preferred Stock 20 15 40 29 Income (loss) from continuing operations attributable to Key common shareholders 403 464 789 866 Income (loss) from discontinued operations, net of taxes 2 3 3 5 Net income (loss) attributable to Key common shareholders $ 405 $ 467 $ 792 $ 871 WEIGHTED-AVERAGE COMMON SHARES Weighted-average Common Shares outstanding (000) 999,163 1,052,652 1,003,047 1,054,378 Effect of Common Share options and other stock awards 8,801 13,141 9,318 14,561 Weighted-average Common Shares and potential Common Shares outstanding (000) (a) 1,007,964 1,065,793 1,012,365 1,068,939 EARNINGS PER COMMON SHARE Income (loss) from continuing operations attributable to Key common shareholders $ .40 $ .44 $ .79 $ .82 Income (loss) from discontinued operations, net of taxes — — — — Net income (loss) attributable to Key common shareholders (b) .40 .44 .79 .82 Income (loss) from continuing operations attributable to Key common shareholders — assuming dilution $ .40 $ .44 $ .78 $ .81 Income (loss) from discontinued operations, net of taxes — assuming dilution — — — — Net income (loss) attributable to Key common shareholders — assuming dilution (b) .40 .44 .78 .81 (a) Assumes conversion of Common Share options and other stock awards and/or convertible preferred stock, as applicable. (b) EPS may not foot due to rounding. |
Loan Portfolio
Loan Portfolio | 6 Months Ended |
Jun. 30, 2019 | |
Loans Receivables [Abstract] | |
Loan Portfolio | 3. Loan Portfolio in millions June 30, 2019 December 31, 2018 Commercial and industrial (a) $ 48,544 $ 45,753 Commercial real estate: Commercial mortgage 13,299 14,285 Construction 1,439 1,666 Total commercial real estate loans 14,738 15,951 Commercial lease financing (b) 4,578 4,606 Total commercial loans 67,860 66,310 Residential — prime loans: Real estate — residential mortgage 6,053 5,513 Home equity loans 10,575 11,142 Total residential — prime loans 16,628 16,655 Consumer direct loans 2,350 1,809 Credit cards 1,096 1,144 Consumer indirect loans 4,003 3,634 Total consumer loans 24,077 23,242 Total loans (c) $ 91,937 $ 89,552 (a) Loan balances include $143 million and $132 million of commercial credit card balances at June 30, 2019 , and December 31, 2018 , respectively. (b) Commercial lease financing includes receivables held as collateral for a secured borrowing of $11 million and $10 million at June 30, 2019 , and December 31, 2018 , respectively. Principal reductions are based on the cash payments received from these related receivables. Additional information pertaining to this secured borrowing is included in Note 19 (“ Long-Term Debt ”) beginning on page 160 of our 2018 Form 10-K. (c) Total loans exclude loans of $964 million at June 30, 2019 , and $1.1 billion at December 31, 2018 |
Asset Quality
Asset Quality | 6 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Asset Quality | 4. Asset Quality We assess the credit quality of the loan portfolio by monitoring net credit losses, levels of nonperforming assets, delinquencies, and credit quality ratings as defined by management. Credit Quality Indicators The prevalent risk characteristic for both commercial and consumer loans is the risk of loss arising from an obligor’s inability or failure to meet contractual payment or performance terms. Evaluation of this risk is stratified and monitored by the loan risk rating grades assigned for the commercial loan portfolios and the refreshed FICO score assigned for the consumer loan portfolios. Additional information pertaining to loan grading and scoring is included in Note 5 (“ Asset Quality ”) on page 165 of our 2018 Form 10-K. Commercial Credit Exposure — Excluding PCI Credit Risk Profile by Creditworthiness Category (a), (b) Commercial and industrial RE — Commercial RE — Construction Commercial lease Total in millions June 30, December 31, June 30, December 31, June 30, December 31, June 30, December 31, June 30, December 31, RATING 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 Pass $ 46,773 $ 44,138 $ 12,756 $ 13,672 $ 1,379 $ 1,537 $ 4,535 $ 4,557 $ 65,443 $ 63,904 Criticized (Accruing) 1,529 1,402 303 354 57 125 36 41 1,925 1,922 Criticized (Nonaccruing) 189 152 85 81 2 2 7 8 283 243 Total $ 48,491 $ 45,692 $ 13,144 $ 14,107 $ 1,438 $ 1,664 $ 4,578 $ 4,606 $ 67,651 $ 66,069 (a) Credit quality indicators are updated on an ongoing basis and reflect credit quality information as of the dates indicated. (b) The term criticized refers to those loans that are internally classified by Key as special mention or worse, which are asset quality categories defined by regulatory authorities. These assets have an elevated level of risk and may have a high probability of default or total loss. Pass rated refers to all loans not classified as criticized. Consumer Credit Exposure — Excluding PCI Non-PCI Loans by Refreshed FICO Score (a) Residential — Prime Consumer direct loans Credit cards Consumer indirect loans Total in millions June 30, December 31, June 30, December 31, June 30, December 31, June 30, December 31, June 30, December 31, FICO SCORE 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 750 and above $ 10,040 $ 9,794 $ 827 $ 549 $ 499 $ 521 $ 1,849 $ 1,647 $ 13,215 $ 12,511 660 to 749 4,681 4,906 822 700 481 507 1,440 1,320 7,424 7,433 Less than 660 1,341 1,411 219 224 116 116 573 565 2,249 2,316 No Score 260 213 479 333 — — 141 102 880 648 Total $ 16,322 $ 16,324 $ 2,347 $ 1,806 $ 1,096 $ 1,144 $ 4,003 $ 3,634 $ 23,768 $ 22,908 (a) Borrower FICO scores provide information about the credit quality of our consumer loan portfolio as they provide an indication as to the likelihood that a debtor will repay its debts. The scores are obtained from a nationally recognized consumer rating agency and are presented in the above table at the dates indicated. Commercial Credit Exposure — PCI Credit Risk Profile by Creditworthiness Category (a), (b) Commercial and Industrial RE — Commercial RE — Construction Commercial Lease Total in millions June 30, December 31, June 30, December 31, June 30, December 31, June 30, December 31, June 30, December 31, RATING 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 Pass $ 32 $ 37 $ 111 $ 125 $ 1 $ 2 — — $ 144 $ 164 Criticized 21 24 44 53 — — — — 65 77 Total $ 53 $ 61 $ 155 $ 178 $ 1 $ 2 — — $ 209 $ 241 (a) Credit quality indicators are updated on an ongoing basis and reflect credit quality information as of the dates indicated. (b) The term “criticized” refers to those loans that are internally classified by Key as special mention or worse, which are asset quality categories defined by regulatory authorities. These assets have an elevated level of risk and may have a high probability of default or total loss. Pass rated refers to all loans not classified as criticized. Consumer Credit Exposure — PCI PCI Loans by Refreshed FICO Score (a) Residential — Prime Consumer direct loans Credit cards Consumer indirect loans Total in millions June 30, December 31, June 30, December 31, June 30, December 31, June 30, December 31, June 30, December 31, FICO SCORE 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 750 and above $ 119 $ 137 1 — — — — — $ 120 $ 137 660 to 749 103 95 $ 1 $ 1 — — — — 104 96 Less than 660 78 97 1 2 — — — — 79 99 No Score 6 2 — — — — — — 6 2 Total $ 306 $ 331 $ 3 $ 3 — — — — $ 309 $ 334 (a) Borrower FICO scores provide information about the credit quality of our consumer loan portfolio as they provide an indication as to the likelihood that a debtor will repay its debts. The scores are obtained from a nationally recognized consumer rating agency and are presented in the above table at the dates indicated. Nonperforming and Past Due Loans Our policies for determining past due loans, placing loans on nonaccrual, applying payments on nonaccrual loans, and resuming accrual of interest for our commercial and consumer loan portfolios are disclosed in Note 1 (“ Summary of Significant Accounting Policies ”) under the heading “Nonperforming Loans” beginning on page 100 of our 2018 Form 10-K. The following aging analysis of past due and current loans as of June 30, 2019 , and December 31, 2018 , provides further information regarding Key’s credit exposure. Aging Analysis of Loan Portfolio (a) June 30, 2019 Current 30-59 Days Past Due (b) 60-89 Days Past Due (b) 90 and Greater Days Past Due (b) Non-performing Loans Total Past Due and Non-performing Loans Purchased Credit Impaired Total Loans (c), (d) in millions LOAN TYPE Commercial and industrial $ 48,136 $ 116 $ 20 $ 30 $ 189 $ 355 $ 53 $ 48,544 Commercial real estate: Commercial mortgage 13,029 17 3 10 85 115 155 13,299 Construction 1,416 20 — — 2 22 1 1,439 Total commercial real estate loans 14,445 37 3 10 87 137 156 14,738 Commercial lease financing 4,547 13 3 8 7 31 — 4,578 Total commercial loans $ 67,128 $ 166 $ 26 $ 48 $ 283 $ 523 $ 209 $ 67,860 Real estate — residential mortgage $ 5,686 $ 11 $ 2 $ 1 $ 62 $ 76 $ 291 $ 6,053 Home equity loans 10,329 27 8 5 191 231 15 10,575 Consumer direct loans 2,322 10 5 7 3 25 3 2,350 Credit cards 1,073 6 4 11 2 23 — 1,096 Consumer indirect loans 3,947 28 6 2 20 56 — 4,003 Total consumer loans $ 23,357 $ 82 $ 25 $ 26 $ 278 $ 411 $ 309 $ 24,077 Total loans $ 90,485 $ 248 $ 51 $ 74 $ 561 $ 934 $ 518 $ 91,937 (a) Amounts in table represent recorded investment and exclude loans held for sale. Recorded investment represents the face amount of the loan increased or decreased by applicable accrued interest, net deferred loan fees and costs, and unamortized premium or discount, and reflects direct charge-offs. (b) Past due loan amounts exclude PCI, even if contractually past due (or if we do not expect to collect principal or interest in full based on the original contractual terms), as we are currently accreting income over the remaining term of the loans. (c) Net of unearned income, net deferred loan fees and costs, and unamortized discounts and premiums. (d) Future accretable yield related to PCI loans is not included in the analysis of the loan portfolio. December 31, 2018 Current 30-59 Days Past Due (b) 60-89 Days Past Due (b) 90 and Greater Days Past Due (b) Non-performing Loans Total Past Due and Non-performing Loans Purchased Credit Impaired Total Loans (c), (d) in millions LOAN TYPE Commercial and industrial $ 45,375 $ 89 $ 31 $ 45 $ 152 $ 317 61 $ 45,753 Commercial real estate: Commercial mortgage 13,957 27 17 25 81 150 178 14,285 Construction 1,646 — 13 3 2 18 2 1,666 Total commercial real estate loans 15,603 27 30 28 83 168 180 15,951 Commercial lease financing 4,580 12 1 4 9 26 — 4,606 Total commercial loans $ 65,558 $ 128 $ 62 $ 77 $ 244 $ 511 241 $ 66,310 Real estate — residential mortgage $ 5,119 $ 11 $ 3 $ 4 $ 62 $ 80 $ 314 $ 5,513 Home equity loans 10,862 31 12 10 210 263 17 11,142 Consumer direct loans 1,780 11 5 6 4 26 3 1,809 Credit cards 1,119 6 5 12 2 25 — 1,144 Consumer indirect loans 3,573 31 7 3 20 61 — 3,634 Total consumer loans $ 22,453 $ 90 $ 32 $ 35 $ 298 $ 455 $ 334 $ 23,242 Total loans $ 88,011 $ 218 $ 94 $ 112 $ 542 $ 966 $ 575 $ 89,552 (a) Amounts in table represent recorded investment and exclude loans held for sale. Recorded investment represents the face amount of the loan increased or decreased by applicable accrued interest, net deferred loan fees and costs, and unamortized premium or discount, and reflects direct charge-offs. (b) Past due loan amounts exclude PCI, even if contractually past due (or if we do not expect to collect principal or interest in full based on the original contractual terms), as we are currently accreting income over the remaining term of the loans. (c) Net of unearned income, net deferred loan fees and costs, and unamortized discounts and premiums. (d) Future accretable yield related to purchased credit impaired loans is not included in the analysis of the loan portfolio. At June 30, 2019 , the approximate carrying amount of our commercial nonperforming loans outstanding represented 79% of their original contractual amount owed, total nonperforming loans outstanding represented 82% of their original contractual amount owed, and nonperforming assets in total were carried at 87% of their original contractual amount owed. Nonperforming loans and loans held for sale reduced expected interest income by $9 million and $17 million for the three and six months ended June 30, 2019 , respectively, and $7 million and $14 million for the three and six months ended June 30, 2018 , respectively. The following tables set forth a further breakdown of individually impaired loans as of June 30, 2019 , and December 31, 2018 : June 30, 2019 December 31, 2018 Recorded Investment (a) Unpaid Principal Balance (b) Specific Allowance Recorded Investment (a) Unpaid Principal Balance (b) Specific Allowance in millions With no related allowance recorded: Commercial and industrial $ 118 $ 151 — $ 118 $ 175 — Commercial real estate: Commercial mortgage 61 73 — 64 70 — Total commercial real estate loans 61 73 — 64 70 — Total commercial loans 179 224 — 182 245 — Real estate — residential mortgage 4 6 — 4 5 — Home equity loans 47 53 — 49 56 — Consumer direct loans — 1 — 1 1 — Consumer indirect loans 2 4 — 2 4 — Total consumer loans 53 64 — 56 66 — Total loans with no related allowance recorded 232 288 — 238 311 — With an allowance recorded: Commercial and industrial 65 83 $ 10 44 47 $ 5 Commercial real estate: Commercial mortgage 3 3 1 2 3 1 Total commercial real estate loans 3 3 1 2 3 1 Total commercial loans 68 86 11 46 50 6 Real estate — residential mortgage 44 68 3 45 70 3 Home equity loans 81 87 9 78 85 8 Consumer direct loans 4 4 — 3 3 — Credit cards 3 3 — 3 3 — Consumer indirect loans 33 34 3 34 34 2 Total consumer loans 165 196 15 163 195 13 Total loans with an allowance recorded 233 282 26 209 245 19 Total $ 465 $ 570 $ 26 $ 447 $ 556 $ 19 (a) The Recorded Investment represents the face amount of the loan increased or decreased by applicable accrued interest, net deferred loan fees and costs, and unamortized premium or discount, and reflects direct charge-offs. This amount is a component of total loans on our Consolidated Balance Sheet. (b) The Unpaid Principal Balance represents the customer’s legal obligation to us. The following table sets forth a further breakdown of the average individually impaired loans reported by Key: Average Recorded Investment (a) Three Months Ended June 30, Six Months Ended June 30, in millions 2019 2018 2019 2018 Commercial and industrial $ 176 $ 178 $ 172 $ 161 Commercial real estate: Commercial mortgage 63 16 65 16 Total commercial real estate loans 63 16 65 16 Total commercial loans 239 194 237 177 Real estate — residential mortgage 48 49 49 49 Home equity loans 128 124 127 121 Consumer direct loans 4 4 4 4 Credit cards 2 3 3 3 Consumer indirect loans 36 35 36 34 Total consumer loans 218 215 219 211 Total $ 457 $ 409 $ 456 $ 388 (a) The Recorded Investment represents the face amount of the loan increased or decreased by applicable accrued interest, net deferred loan fees and costs, and unamortized premium or discount, and reflects direct charge-offs. This amount is a component of total loans on our Consolidated Balance Sheet. Interest income recognized on the outstanding balances of accruing impaired loans totaled $3 million and $6 million for the three and six months ended June 30, 2019 , respectively, and $3 million and $5 million for the three and six months ended June 30, 2018 , respectively. TDRs We classify loan modifications as TDRs when a borrower is experiencing financial difficulties and we have granted a concession without commensurate financial, structural, or legal consideration. Additional information pertaining to TDRs is included in Note 5 (“ Asset Quality ”) on page 117 of our 2018 Form 10-K. As TDRs are individually evaluated for impairment under the specific reserve methodology, subsequent defaults do not generally have a significant additional impact on the ALLL. Commitments outstanding to lend additional funds to borrowers whose loan terms have been modified in TDRs were $5 million and $5 million at June 30, 2019 , and December 31, 2018 , respectively. At June 30, 2019 , and December 31, 2018 , the recorded investment of consumer residential mortgage loans in the process of foreclosure was approximately $96 million and $113 million , respectively. At June 30, 2019 , and December 31, 2018 , we had $38 million and $35 million , respectively, of OREO which included the carrying value of foreclosed residential real estate of approximately $38 million and $35 million , respectively. The following table shows the post-modification outstanding recorded investment by concession type for our commercial and consumer accruing and nonaccruing TDRs that occurred during the periods indicated: Three Months Ended June 30, Six Months Ended June 30, in millions 2019 2018 2019 2018 Commercial loans: Forgiveness of principal $ — 5 $ — 5 Extension of Maturity Date 6 $ 14 $ 6 $ 15 Payment or Covenant Modification/Deferment 18 20 18 20 Bankruptcy Plan Modification 11 7 11 7 Total 35 $ 46 $ 35 $ 47 Consumer loans: Interest rate reduction $ 4 $ 8 $ 8 $ 18 Other 9 10 16 21 Total $ 13 $ 18 $ 24 $ 39 Total commercial and consumer TDRs $ 48 $ 64 $ 59 $ 86 The following table summarizes the change in the post-modification outstanding recorded investment of our accruing and nonaccruing TDRs during the periods indicated: Three Months Ended June 30, Six Months Ended June 30, in millions 2019 2018 2019 2018 Balance at beginning of the period $ 365 $ 317 $ 399 $ 317 Additions 54 54 68 75 Payments (19 ) (22 ) (58 ) (41 ) Charge-offs (5 ) (2 ) (14 ) (4 ) Balance at end of period $ 395 $ 347 $ 395 $ 347 A further breakdown of TDRs included in nonperforming loans by loan category for the periods indicated are as follows: June 30, 2019 December 31, 2018 Number of Loans Pre-modification Outstanding Recorded Investment Post-modification Outstanding Recorded Investment Number of Loans Pre-modification Outstanding Recorded Investment Post-modification Outstanding Recorded Investment dollars in millions LOAN TYPE Nonperforming: Commercial and industrial 57 $ 111 $ 88 35 $ 121 $ 85 Commercial real estate: Commercial mortgage 8 67 61 6 66 62 Total commercial real estate loans 8 67 61 6 66 62 Total commercial loans 65 178 149 41 187 147 Real estate — residential mortgage 297 21 19 281 21 20 Home equity loans 801 49 45 1,142 66 63 Consumer direct loans 129 1 1 171 2 1 Credit cards 251 1 1 330 2 2 Consumer indirect loans 968 16 13 1,098 18 14 Total consumer loans 2,446 88 79 3,022 109 100 Total nonperforming TDRs 2,511 266 228 3,063 296 247 Prior-year accruing: (a) Commercial and industrial 10 34 28 11 37 32 Commercial real estate Commercial mortgage 1 — — 2 — — Total commercial real estate loans 1 — — 2 — — Total commercial loans 11 34 28 13 37 32 Real estate — residential mortgage 467 35 29 491 36 30 Home equity loans 1,716 100 83 1,403 82 64 Consumer direct loans 138 5 3 79 4 3 Credit cards 600 3 2 479 3 1 Consumer indirect loans 766 36 22 556 33 22 Total consumer loans 3,687 179 139 3,008 158 120 Total prior-year accruing TDRs 3,698 213 167 3,021 195 152 Total TDRs 6,209 $ 479 $ 395 6,084 $ 491 $ 399 (a) All TDRs that were restructured prior to January 1, 2019 , and January 1, 2018 , and are fully accruing. Commercial loan TDRs are considered defaulted when principal and interest payments are 90 days past due. Consumer loan TDRs are considered defaulted when principal and interest payments are more than 60 days past due. During the three months ended June 30, 2019 , there were no commercial loan TDRs and 102 consumer loan TDRs with a combined recorded investment of $2 million that experienced payment defaults after modifications resulting in TDR status during 2018 . During the three months ended June 30, 2018 , there were no commercial loan TDRs and 55 consumer loan TDRs with a combined recorded investment of $1 million that experienced payment defaults after modifications resulting in TDR status during 2017 . During the six months ended June 30, 2019 , there were no commercial loan TDRs and 174 consumer loan TDRs with a combined recorded investment of $4 million that experienced payment defaults after modifications resulting in TDR status during 2018 . During the six months ended June 30, 2018 , there were no commercial loan TDRs and 96 consumer loan TDRs with a combined recorded investment of $2 million that experienced payment defaults after modifications resulting in TDR status during 2017 . ALLL and Liability for Credit Losses on Unfunded Lending-Related Commitments We determine the appropriate level of the ALLL on at least a quarterly basis. The methodology is described in Note 1 (“Summary of Significant Accounting Policies”) under the heading “Allowance for Loan and Lease Losses” beginning on page 101 of our 2018 Form 10-K. The ALLL on the acquired non-impaired loan portfolio is estimated using the same methodology as the originated portfolio, however, the estimated ALLL is compared to the remaining accretable yield to determine if an ALLL must be recorded. For PCI loans, Key estimates cash flows expected to be collected quarterly. Decreases in expected cash flows are recognized as impairment through a provision for loan and lease losses and an increase in the ALLL. The ALLL at June 30, 2019 , represents our best estimate of the incurred credit losses inherent in the loan portfolio at that date. The changes in the ALLL by loan category for the periods indicated are as follows: Three months ended June 30, 2019 : in millions March 31, 2019 Provision Charge-offs Recoveries June 30, 2019 Commercial and Industrial $ 530 $ 43 $ (30 ) $ 6 $ 549 Commercial real estate: Real estate — commercial mortgage 144 (5 ) (1 ) 1 139 Real estate — construction 28 (4 ) — — 24 Total commercial real estate loans 172 (9 ) (1 ) 1 163 Commercial lease financing 35 14 (16 ) 2 35 Total commercial loans 737 48 (47 ) 9 747 Real estate — residential mortgage 8 — (1 ) — 7 Home equity loans 36 4 (6 ) 2 36 Consumer direct loans 33 7 (10 ) 2 32 Credit cards 47 7 (12 ) 2 44 Consumer indirect loans 22 6 (8 ) 4 24 Total consumer loans 146 24 (37 ) 10 143 Total ALLL — continuing operations 883 72 (a) (84 ) 19 890 Discontinued operations 13 2 (4 ) 1 12 Total ALLL — including discontinued operations $ 896 $ 74 $ (88 ) $ 20 $ 902 (a) Excludes a provision for losses on lending-related commitments of $2 million . Three months ended June 30, 2018 : in millions March 31, 2018 Provision Charge-offs Recoveries June 30, 2018 Commercial and Industrial $ 533 $ 41 $ (39 ) $ 7 $ 542 Commercial real estate: Real estate — commercial mortgage 136 4 (2 ) 1 139 Real estate — construction 33 (5 ) — — 28 Total commercial real estate loans 169 (1 ) (2 ) 1 167 Commercial lease financing 40 4 (4 ) — 40 Total commercial loans 742 44 (45 ) 8 749 Real estate — residential mortgage 9 1 — — 10 Home equity loans 38 2 (6 ) 3 37 Consumer direct loans 27 6 (9 ) 2 26 Credit cards 45 11 (12 ) 2 46 Consumer indirect loans 20 2 (7 ) 4 19 Total consumer loans 139 22 (34 ) 11 138 Total ALLL — continuing operations 881 66 (a) (79 ) 19 887 Discontinued operations 16 — (3 ) 1 14 Total ALLL — including discontinued operations $ 897 $ 66 $ (82 ) $ 20 $ 901 (a) Excludes a credit for losses on lending-related commitments of $2 million . Six months ended June 30, 2019 : in millions December 31, 2018 Provision Charge-offs Recoveries June 30, 2019 Commercial and Industrial 532 $ 67 $ (66 ) $ 16 $ 549 Commercial real estate: Real estate — commercial mortgage 142 1 (6 ) 2 139 Real estate — construction 33 (5 ) (4 ) — 24 Total commercial real estate loans 175 (4 ) (10 ) 2 163 Commercial lease financing 36 20 (24 ) 3 35 Total commercial loans 743 83 (100 ) 21 747 Real estate — residential mortgage 7 1 (2 ) 1 7 Home equity loans 35 7 (10 ) 4 36 Consumer direct loans 30 19 (20 ) 3 32 Credit cards 48 15 (23 ) 4 44 Consumer indirect loans 20 11 (16 ) 9 24 Total consumer loans 140 53 (71 ) 21 143 Total ALLL — continuing operations 883 136 (a) (171 ) 42 890 Discontinued operations 14 4 (8 ) 2 12 Total ALLL — including discontinued operations $ 897 $ 140 $ (179 ) $ 44 $ 902 Six months ended June 30, 2018 : in millions December 31, 2017 Provision Charge-offs Recoveries June 30, 2018 Commercial and Industrial $ 529 $ 76 $ (76 ) $ 13 $ 542 Commercial real estate: Real estate — commercial mortgage 133 8 (3 ) 1 139 Real estate — construction 30 (3 ) — 1 28 Total commercial real estate loans 163 5 (3 ) 2 167 Commercial lease financing 43 1 (5 ) 1 40 Total commercial loans 735 82 (84 ) 16 749 Real estate — residential mortgage 7 4 (1 ) — 10 Home equity loans 43 (2 ) (10 ) 6 37 Consumer direct loans 28 11 (17 ) 4 26 Credit cards 44 23 (24 ) 3 46 Consumer indirect loans 20 6 (15 ) 8 19 Total consumer loans 142 42 (67 ) 21 138 Total ALLL — continuing operations 877 124 (a) (151 ) 37 887 Discontinued operations 16 2 (7 ) 3 14 Total ALLL — including discontinued operations $ 893 $ 126 $ (158 ) $ 40 $ 901 (a) Excludes a provision for losses on lending-related commitments of $1 million . A breakdown of the individual and collective ALLL and the corresponding loan balances as of June 30, 2019 , follows: Allowance Outstanding June 30, 2019 Individually Evaluated for Impairment Collectively Evaluated for Impairment Purchased Credit Impaired Loans Individually Evaluated for Impairment Collectively Evaluated for Impairment Purchased Credit Impaired in millions Commercial and industrial $ 10 $ 538 $ 1 $ 48,544 $ 183 $ 48,308 $ 53 Commercial real estate: Commercial mortgage 1 137 1 13,299 64 13,080 155 Construction — 24 — 1,439 — 1,438 1 Total commercial real estate loans 1 161 1 14,738 64 14,518 156 Commercial lease financing — 35 — 4,578 — 4,578 — Total commercial loans 11 734 2 67,860 247 67,404 209 Real estate — residential mortgage 3 3 1 6,053 48 5,714 291 Home equity loans 9 26 1 10,575 128 10,432 15 Consumer direct loans — 32 — 2,350 4 2,343 3 Credit cards — 44 — 1,096 3 1,093 — Consumer indirect loans 3 21 — 4,003 35 3,968 — Total consumer loans 15 126 2 24,077 218 23,550 309 Total ALLL — continuing operations 26 860 4 91,937 465 90,954 518 Discontinued operations 2 10 — 964 (a) 23 941 (a) — Total ALLL — including discontinued operations $ 28 $ 870 $ 4 $ 92,901 $ 488 $ 91,895 $ 518 (a) Amount includes $2 million of loans carried at fair value that are excluded from ALLL consideration. A breakdown of the individual and collective ALLL and the corresponding loan balances as of December 31, 2018 , follows: Allowance Outstanding December 31, 2018 Individually Evaluated for Impairment Collectively Evaluated for Impairment Purchased Credit Impaired Loans Individually Evaluated for Impairment Collectively Evaluated for Impairment Purchased Credit Impaired in millions Commercial and Industrial $ 5 $ 526 $ 1 $ 45,753 $ 162 $ 45,530 $ 61 Commercial real estate: Commercial mortgage — 139 3 14,285 66 14,041 178 Construction — 33 — 1,666 — 1,664 2 Total commercial real estate loans — 172 3 15,951 66 15,705 180 Commercial lease financing — 36 — 4,606 — 4,606 — Total commercial loans 5 734 4 66,310 228 65,841 241 Real estate — residential mortgage 3 4 — 5,513 49 5,150 314 Home equity loans 8 26 1 11,142 127 10,998 17 Consumer direct loans — 30 — 1,809 4 1,802 3 Credit cards — 48 — 1,144 3 1,141 — Consumer indirect loans 3 17 — 3,634 36 3,598 — Total consumer loans 14 125 1 23,242 219 22,689 334 Total ALLL — continuing operations 19 859 5 89,552 447 88,530 575 Discontinued operations 2 12 — 1,073 (a) 23 1,050 (a) — Total ALLL — including discontinued operations $ 21 $ 871 $ 5 $ 90,625 $ 470 $ 89,580 $ 575 (a) Amount includes $2 million of loans carried at fair value that are excluded from ALLL consideration. The liability for credit losses inherent in unfunded lending-related commitments, such as letters of credit and unfunded loan commitments, is included in “accrued expense and other liabilities” on the balance sheet. We establish the amount of this reserve by considering both historical trends and current market conditions quarterly, or more often if deemed necessary. Changes in the liability for credit losses on unfunded lending-related commitments are summarized as follows: Three months ended June 30, Six months ended June 30, in millions 2019 2018 2019 2018 Balance at beginning of period $ 62 $ 60 $ 64 $ 57 Provision (credit) for losses on lending-related commitments 2 (2 ) — 1 Balance at end of period $ 64 $ 58 $ 64 $ 58 PCI Loans Purchased loans that have evidence of deterioration in credit quality since origination and for which it is probable, at acquisition, that all contractually required payments will not be collected are deemed PCI. Our policies for determining, recording payments on, and derecognizing PCI loans are disclosed in Note 1 (“ Summary of Significant Accounting Policies ”) under the heading “Purchased Loans” beginning on page 105 of our 2018 Form 10-K. We have PCI loans from two separate acquisitions, one in 2012 and one in 2016. The following tables present the roll-forward of the accretable yield and the beginning and ending outstanding unpaid principal balance and carrying amount of all PCI loans for the six months ended June 30, 2019 , and the twelve months ended December 31, 2018 . Three Months Ended June 30, Six Months Ended June 30, 2019 2019 in millions Accretable Yield Carrying Amount Outstanding Unpaid Principal Balance Accretable Yield Carrying Amount Outstanding Unpaid Principal Balance Balance at beginning of period $ 118 $ 547 $ 578 $ 117 $ 571 $ 607 Accretion (9 ) (19 ) Net reclassifications from nonaccretable to accretable (5 ) 8 Payments received, net (3 ) (5 ) Balance at end of period $ 101 $ 513 $ 541 $ 101 $ 513 $ 541 Twelve Months Ended December 31, 2018 in millions Accretable Yield Carrying Amount Outstanding Unpaid Principal Balance Balance at beginning of period $ 131 $ 738 $ 803 Accretion (42 ) Net reclassifications from nonaccretable to accretable 50 Payments received, net (21 ) Loans charged off (1 ) Balance at end of period $ 117 $ 571 $ 607 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 5. Fair Value Measurements In accordance with GAAP, Key measures certain assets and liabilities at fair value. Fair value is defined as the price to sell an asset or transfer a liability in an orderly transaction between market participants in our principal market. Additional information regarding our accounting policies for determining fair value is provided in Note 6 (“ Fair Value Measurements ”) and Note 1 (“ Summary of Significant Accounting Policies ”) under the heading “Fair Value Measurements” of our 2018 Form 10-K. Assets and Liabilities Measured at Fair Value on a Recurring Basis Certain assets and liabilities are measured at fair value on a recurring basis in accordance with GAAP. The following tables present these assets and liabilities at June 30, 2019 , and December 31, 2018 . June 30, 2019 December 31, 2018 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total in millions ASSETS MEASURED ON A RECURRING BASIS Trading account assets: U.S. Treasury, agencies and corporations — $ 853 — $ 853 — $ 578 — $ 578 States and political subdivisions — 32 — 32 — 60 — 60 Other mortgage-backed securities — 36 — 36 — 164 — 164 Other securities — 62 — 62 — 22 — 22 Total trading account securities — 983 — 983 — 824 — 824 Commercial loans — 22 — 22 — 25 — 25 Total trading account assets — 1,005 — 1,005 — 849 — 849 Securities available for sale: U.S. Treasury, agencies and corporations — 272 — 272 — 147 — 147 States and political subdivisions — 5 — 5 — 7 — 7 Agency residential collateralized mortgage obligations — 13,612 — 13,612 — 13,962 — 13,962 Agency residential mortgage-backed securities — 2,061 — 2,061 — 2,105 — 2,105 Agency commercial mortgage-backed securities — 5,543 — 5,543 — 3,187 — 3,187 Other securities — 24 $ 11 35 — — $ 20 20 Total securities available for sale — 21,517 11 21,528 — 19,408 20 19,428 Other investments: Principal investments: Direct — — 1 1 — — 1 1 Indirect (measured at NAV) (a) — — — 76 — — — 96 Total principal investments — — 1 77 — — 1 97 Equity investments: Direct — — 7 7 — 1 7 8 Direct (measured at NAV) (a) — — — 1 — — — 1 Indirect (measured at NAV) (a) — — — 8 — — — 9 Total equity investments — — 7 16 — 1 7 18 Total other investments — — 8 93 — 1 8 115 Loans, net of unearned income (residential) — — 3 3 — — 3 3 Loans held for sale (residential) — 164 — 164 — 54 — 54 Derivative assets: Interest rate — 885 4 889 — 410 5 415 Foreign exchange $ 41 29 — 70 $ 70 36 — 106 Commodity — 246 — 246 — 333 — 333 Credit — 1 — 1 — 1 — 1 Other — 10 6 16 — 6 3 9 Derivative assets 41 1,171 10 1,222 70 786 8 864 Netting adjustments (b) — — — (413 ) — — — (333 ) Total derivative assets 41 1,171 10 809 70 786 8 531 Accrued income and other assets — — — — — — — — Total assets on a recurring basis at fair value $ 41 $ 23,857 $ 32 $ 23,602 $ 70 $ 21,098 $ 39 $ 20,980 LIABILITIES MEASURED ON A RECURRING BASIS Bank notes and other short-term borrowings: Short positions $ 7 $ 713 — $ 720 $ 14 $ 530 — $ 544 Derivative liabilities: Interest rate — 220 — 220 — 297 — 297 Foreign exchange 35 29 — 64 58 37 — 95 Commodity — 236 — 236 — 323 — 323 Credit — 2 $ 1 3 — 1 — 1 Other — 13 — 13 — 7 — 7 Derivative liabilities 35 500 1 536 58 665 — 723 Netting adjustments (b) — — — (319 ) — — — (337 ) Total derivative liabilities 35 500 1 217 58 665 — 386 Accrued expense and other liabilities — — — — — — — — Total liabilities on a recurring basis at fair value $ 42 $ 1,213 $ 1 $ 937 $ 72 $ 1,195 — $ 930 (a) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheet. (b) Netting adjustments represent the amounts recorded to convert our derivative assets and liabilities from a gross basis to a net basis in accordance with the applicable accounting guidance. The net basis takes into account the impact of bilateral collateral and master netting agreements that allow us to settle all derivative contracts with a single counterparty on a net basis and to offset the net derivative position with the related cash collateral. Total derivative assets and liabilities include these netting adjustments. Qualitative Disclosures of Valuation Techniques The following table describes the valuation techniques and significant inputs used to measure the classes of assets and liabilities reported at fair value on a recurring basis, as well as the classification of each within the valuation hierarchy. Asset/liability class Valuation technique Valuation hierarchy classification(s) Securities (trading account assets and available for sale) Fair value of level 1 securities is determined by: • Quoted market prices available in an active market for identical securities. This includes exchange-traded equity securities. Fair value of level 2 securities is determined by: • Pricing models (either by a third party pricing service or internally). Inputs include: yields, benchmark securities, bids, offers, actual trade data (i.e., spreads, credit ratings, and interest rates) for comparable assets, spread tables, matrices, high-grade scales, and option-adjusted spreads. • Observable market prices of similar securities. Fair value of level 3 securities is determined by: • Internal models, principally discounted cash flow models (income approach). • Revenue multiples of comparable public companies (market approach). For level 3 securities, increases (decreases) in the discount rate and marketability discount used in the discounted cash flow models would have resulted in lower (higher) fair value measurements. Higher volatility factors would have further magnified changes in fair value. The valuations provided by the third-party pricing service are based on observable market inputs, which include benchmark yields, reported trades, issuer spreads, benchmark securities, bids, offers, and reference data obtained from market research publications. Inputs used by the third-party pricing service in valuing CMOs and other mortgage-backed securities also include new issue data, monthly payment information, whole loan collateral performance, and “To Be Announced” prices. In valuations of securities issued by state and political subdivisions, inputs used by the third-party pricing service also include material event notices. Level 1, 2, and 3 (primarily Level 2) Commercial loans (trading account assets) Fair value is based on: • Observable market price spreads for similar loans. Valuations reflect prices within the bid-ask spread that are most representative of fair value. Level 2 Principal investments (direct) Direct principal investments consist of equity and debt instruments of private companies made by our principal investing entities. Fair value is determined using: • Operating performance and market multiples of comparable businesses • Other unique facts and circumstances related to each individual investment Direct principal investments are accounted for as investment companies in accordance with the applicable accounting guidance, whereby each investment is adjusted to fair value with any net realized or unrealized gain/loss recorded in the current period’s earnings. We are in the process of winding down our direct principal investment portfolio. As of June 30, 2019, the balance is less than $1 million. Level 3 Principal investments (indirect) Indirect principal investments include primary and secondary investments in private equity funds engaged mainly in venture- and growth-oriented investing. These investments do not have readily determinable fair values and qualify for the practical expedient to estimate fair value based upon net asset value per share (or its equivalent, such as member units or an ownership interest in partners’ capital to which a proportionate share of net assets is attributed). Indirect principal investments are also accounted for as investment companies, whereby each investment is adjusted to fair value with any net realized or unrealized gain/loss recorded in the current period’s earnings. Under the provisions of the Volcker Rule, we are required to dispose or conform our indirect investments to the requirements of the statute by no later than July 21, 2022. As of June 30, 2019, we have not committed to a plan to sell these investments. Therefore, these investments continue to be valued using the net asset value per share methodology. NAV The following table presents the fair value of our direct and indirect principal investments and related unfunded commitments at June 30, 2019 , as well as financial support provided for the three and six months ended June 30, 2019 , and June 30, 2018 . Financial support provided Three months ended June 30, Six months ended June 30, June 30, 2019 2019 2018 2019 2018 in millions Fair Value Unfunded Commitments Funded Commitments Funded Other Funded Commitments Funded Other Funded Commitments Funded Other Funded Commitments Funded Other INVESTMENT TYPE Direct investments $ 1 — — $ — — — — — — — Indirect investments (measured at NAV) (a) 76 $ 24 $ — — — — $ 2 — $ 1 — Total $ 77 $ 24 — $ — — — $ 2 — $ 1 — (a) Our indirect investments consist of buyout funds, venture capital funds, and fund of funds. These investments are generally not redeemable. Instead, distributions are received through the liquidation of the underlying investments of the fund. An investment in any one of these funds typically can be sold only with the approval of the fund’s general partners. At June 30, 2019 , no significant liquidation of the underlying investments has been communicated to Key. The purpose of funding our capital commitments to these investments is to allow the funds to make additional follow-on investments and pay fund expenses until the fund dissolves. We, and all other investors in the fund, are obligated to fund the full amount of our respective capital commitments to the fund based on our and their respective ownership percentages, as noted in the applicable Limited Partnership Agreement. Asset/liability class Valuation technique Valuation hierarchy classification(s) Other direct equity investments Fair value is determined using: • Discounted cash flows • Operating performance and market/exit multiples of comparable businesses • Other unique facts and circumstances related to each individual investment For level 3 securities, increases (decreases) in the discount rate and marketability discount used in the discounted cash flow models would have resulted in lower (higher) fair value measurements. Higher volatility factors would have further magnified changes in fair value. Level 2 investments reflect the price of recent investments, which is deemed representative of fair value. Level 2 and 3 Other direct and indirect equity investments (NAV) Certain direct investments do not have readily determinable fair values and qualify for the practical expedient in the accounting guidance that allows us to estimate fair value based upon net asset value per share. NAV Loans held for sale and held for investment (residential) Residential mortgage loans held for sale are accounted for at fair value. The election of the fair value option aligns the accounting for these assets with the related forward loan sale commitments. Fair values are based on: • Quoted market prices, where available • Prices for other traded mortgage loans with similar characteristics • Purchase commitments and bid information received from market participants Prices are adjusted as necessary to include: • The embedded servicing value in the loans • The specific characteristics of certain loans that are priced based on the pricing of similar loans. (These adjustments represent unobservable inputs to the valuation but are not considered significant given the relative insensitivity of the value to changes in these inputs to the fair value of the loans.) Residential loans held for investment: Certain residential loans held for sale contain salability exceptions that make them unable to be sold into the performing loan sales market. Loans in this category are transferred to the held to maturity loan portfolio and are included in “Loans, net of unearned income” on the balance sheet. This type of loan is classified as level 3 in the valuation hierarchy as transaction details regarding sales of this type of loan are often unavailable. Fair value is based upon: • Unobservable bid information from brokers and investors Higher (lower) unobservable bid information would have resulted in higher (lower) fair value measurements. Level 1, 2 and 3 (primarily level 2) Derivatives Exchange-traded derivatives are valued using quoted prices in active markets and, therefore, are classified as Level 1 instruments. The majority of our derivative positions are level 2 and are valued using internally developed models based on market convention and observable market inputs. These derivative contracts include interest rate swaps, certain options, floors, cross currency swaps, credit default swaps, and forward mortgage loan sale commitments. Significant inputs used in the valuation models include: • Interest rate curves • Yield curves • LIBOR and Overnight Index Swap (OIS) discount rates • LIBOR and OIS curves, index pricing curves, foreign currency curves • Volatility surfaces (a three-dimensional graph of implied volatility against strike price and maturity) Level 1, 2, and 3 (primarily level 2) Asset/liability class Valuation technique Valuation hierarchy classification(s) Derivatives (continued) We have several customized derivative instruments and risk participations that are classified as Level 3 instruments. These derivative positions are valued using internally developed models, with inputs consisting of available market data, such as: • Bond spreads and asset values The unobservable internally derived assumptions include: • Loss probabilities • Internal risk ratings of customers The fair value represents an estimate of the amount that the risk participation counterparty would need to pay/receive as of the measurement date based on the probability of customer default on the swap transaction and the fair value of the underlying customer swap. Therefore, higher (lower) loss probabilities and internal risk ratings would have resulted in a lower (higher) fair value measurement of the risk participations. A directionally similar change would have also applied to other customized derivative instruments classified as Level 3. We use interest rate lock commitments for our residential mortgage business, which are classified as Level 3 instruments. The significant components of the valuation model include: • Interest rates observable in the market • Investor supplied prices for similar securities • The probability of the loan closing (i.e. the "pull-through" amount, a significant unobservable input). Increases (decreases) in the probability of the loan closing would have resulted in higher (lower) fair value measurements. Valuation of residential mortgage forward sale commitments utilizes observable market prices of comparable commitments and mortgage securities (Level 2). Level 1, 2, and 3 (primarily level 2) Liability for short positions This includes fixed income securities held by our broker dealer in its trading inventory. Fair value of level 1 securities is determined by: • Quoted market prices available in an active market for identical securities Fair value of level 2 securities is determined by: • Observable market prices of similar securities • Market activity, spreads, credit ratings and interest rates for each security type Level 1 and 2 Changes in Level 3 Fair Value Measurements The following table shows the components of the change in the fair values of our Level 3 financial instruments measured at fair value on a recurring basis for the three and six months ended June 30, 2019 , and June 30, 2018 . in millions Beginning of Period Balance Gains (Losses) Included in Other Comprehensive Income Gains (Losses) Included in Earnings Purchases Sales Settlements Transfers Other Transfers into Level 3 Transfers out of Level 3 End of Period Balance Unrealized Gains (Losses) Included in Earnings Six months ended June 30, 2019 Securities available for sale Other securities $ 20 $ 15 — — — — — — (24 ) $ 11 — Other investments Principal investments Direct 1 — — $ — $ — — — — — 1 — Equity investments Direct 7 — (1 ) — — — — $ 1 — 7 — Loans held for sale (residential) — — — — (1 ) — $ 1 — — — — Loans, net of unearned income (residential) 3 — — — — — — — — 3 — Derivative instruments (b) Interest rate 5 — $ 3 (c) — — — — 2 (d) $ (6 ) (d) 4 — Credit — — — (1 ) — — — — — (1 ) — Other (e) 3 — — — — — 3 — — 6 — Three months ended June 30, 2019 Securities available for sale Other securities $ 25 $ 10 — — — — — — $ (24 ) $ 11 — Other investments Principal investments Direct 1 — $ — (1 ) 1 — — — — 1 — Other indirect — — — — — — — — — — — Equity investments Direct 8 — (1 ) — — — — — — 7 — Loans held for sale (residential) 1 — — — (1 ) — — — — — — Loans, net of unearned income (residential) 3 — — — — — — — — 3 — Derivative instruments (b) Interest rate 3 — 2 (c) — — — — — (d) (1 ) (d) 4 — Credit (1 ) — — — — $ — — — — (1 ) — Other (e) 4 — — — — — 2 — — 6 — in millions Beginning of Period Balance Gains (Losses) Included in Other Comprehensive Income Gains (Losses) Included in Earnings Purchases Sales Settlements Transfers Other Transfers into Level 3 Transfers out of Level 3 End of Period Balance Unrealized Gains (Losses) Included in Earnings Six months ended June 30, 2018 Securities available for sale Other securities $ 20 — — — — — — — — $ 20 — Other investments Principal investments Direct 13 — — $ 1 $ (1 ) — — — — 13 $ 1 (a) Equity investments Direct 3 — — — — — — $ 4 — 7 — Loans held for sale (residential) 1 — — — (1 ) — — — — — — Loans, net of unearned income (residential) 2 — — — — — $ 1 — — 3 — Derivative instruments (b) Interest rate 9 — $ (2 ) (c) 1 (2 ) — — 4 (d) $ (5 ) (d) 5 — Credit 1 — (20 ) (c) — — $ 10 — — — (9 ) — Other (e) 3 — — — — — $ — — — 3 — Three months ended June 30, 2018 Securities available for sale Other securities $ 20 — — — — — — — — $ 20 — Other investments Principal investments Direct 12 — $ 1 (a) $ 1 $ (1 ) — — — — 13 $ 2 (a) Equity investments Direct 7 — — — — — — — — 7 — Loans held for sale (residential) 1 — — — (1 ) — — — — — — Loans, net of unearned income (residential) 2 — — — — — $ 1 — — 3 — Derivative instruments (b) Interest rate 4 — (1 ) (c) — (2 ) — — $ 4 (d) — 5 — Credit — — (15 ) (c) — — $ 6 — — — (9 ) — Other (e) 3 — — — — — — — — 3 — (a) Realized and unrealized gains and losses on principal investments are reported in “other income” on the income statement. (b) Amounts represent Level 3 derivative assets less Level 3 derivative liabilities. (c) Realized and unrealized gains and losses on derivative instruments are reported in “corporate services income” and “other income” on the income statement. (d) Certain derivatives previously classified as Level 2 were transferred to Level 3 because Level 3 unobservable inputs became significant. Certain derivatives previously classified as Level 3 were transferred to Level 2 because Level 3 unobservable inputs became less significant. (e) Amounts represent Level 3 interest rate lock commitments. Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis Certain assets and liabilities are measured at fair value on a nonrecurring basis in accordance with GAAP. The adjustments to fair value generally result from the application of accounting guidance that requires assets and liabilities to be recorded at the lower of cost or fair value, or assessed for impairment. There were no liabilities measured at fair value on a nonrecurring basis at June 30, 2019 , and December 31, 2018 . The following table presents our assets measured at fair value on a nonrecurring basis at June 30, 2019 , and December 31, 2018 : June 30, 2019 December 31, 2018 in millions Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total ASSETS MEASURED ON A NONRECURRING BASIS Impaired loans and leases — $ — $ 57 $ 57 — — $ 42 $ 42 Accrued income and other assets — — 21 21 — — 16 16 Total assets on a nonrecurring basis at fair value — $ — $ 78 $ 78 — — $ 58 $ 58 Qualitative Disclosures of Valuation Techniques The following table describes the valuation techniques and significant inputs used to measure the significant classes of assets and liabilities reported at fair value on a nonrecurring basis, as well as the classification of each within the valuation hierarchy. Asset/liability class Valuation technique Valuation hierarchy classification(s) Impaired loans and leases Loans are evaluated for impairment on a quarterly basis; impairment typically occurs when there is evidence of a probable loss and the expected value of the loan is less than the contractual value of the loan. The amount of the impairment may be determined based on the estimated present value of future cash flows, the fair value of the underlying collateral (Level 3), or the loan’s observable market price based on recent sales of similar loans and collateral (Level 2). Cash flow analysis considers internally developed inputs including: • Discount rates • Default rates • Changes in collateral values and costs of foreclosure Level 2 and 3 Commercial loans held for sale and student loans held for sale Through a quarterly analysis of our loan portfolios held for sale, which include both performing and nonperforming commercial and student loans, we determine any adjustments necessary to record the portfolios at the lower of cost or fair value in accordance with GAAP. Valuation inputs include: • Non-binding bids for the respective loans or similar loans • Recent sales transactions • Internal models that emulate recent securitizations Level 2 and 3 Direct financing leases and operating lease assets held for sale Valuations of direct financing leases and operating lease assets held for sale are performed using an internal model that relies on market data, including: • Swap rates and bond ratings • Our own assumptions about the exit market for the leases • Details about the individual leases in the portfolio Leases for which we receive a current nonbinding bid, and for which the sale is considered probable, may be classified as Level 2. Valuations of lease and operating lease assets held for sale that employ our own assumptions are classified as Level 3 assets. The inputs based on our own assumptions include changes in the value of leased items and internal credit ratings. Level 2 and 3 OREO, other repossessed personal property, and right-of-use assets OREO, other repossessed properties, and right-of-use assets are valued based on: • Appraisals and third-party price opinions, less estimated selling costs Generally, we classify these assets as Level 3, but OREO and other repossessed properties for which we receive binding purchase agreements are classified as Level 2. Returned lease inventory is valued based on market data for similar assets and is classified as Level 2. Level 2 and 3 Asset/liability class Valuation technique Valuation hierarchy classification(s) LIHTC, HTC, and NMTC investments Valuation of LIHTC, HTC and NMTC involves measuring the present value of future tax benefits and comparing that value against the current carrying value of the investment. Expected future tax benefits are discounted to their present value using discounted cash flow modeling that incorporates an appropriate risk premium. LIHTC and HTC investments are impaired when it is more likely than not that the carrying amount of the investment will not be realized. Level 3 Other equity investments We have other investments in equity securities that do not have readily determinable fair values and do not qualify for the practical expedient to measure the investment using a net asset value per share. We have elected to measure these securities at cost less impairment plus or minus adjustments due to observable orderly transactions. Impairment is recorded when there is evidence that the expected fair value of the investment has declined to below the recorded cost. At each reporting period, we assess if these investments continue to qualify for this measurement alternative. At June 30, 2019, and December 31, 2018, the carrying amount of equity investments under this method was $139 million and $107 million, respectively. No impairment was recorded for the three months ended June 30, 2019. Level 3 Mortgage Servicing Rights Refer to Note 8. Mortgage Servicing Assets Level 3 Quantitative Information about Level 3 Fair Value Measurements The following table describes the significant unobservable inputs of our level 3 recurring and nonrecurring assets and liabilities: June 30, 2019 Level 3 Asset (Liability) Valuation Technique Significant Unobservable Input Range (Weighted-Average) (b), (c) dollars in millions Recurring Securities available-for-sale: Other securities $ 11 Discounted cash flows Discount rate N/A (15.95%) Marketability discount N/A (30.00%) Volatility factor N/A (38.00%) Other investments: (a) Equity investments Direct 7 Discounted cash flows Discount rate 14.81 - 16.78% (15.06%) Marketability discount N/A (30.00%) Volatility factor N/A (49.00%) Loans, net of unearned income (residential) 3 Market comparable pricing Comparability factor 78.57 - 95.75% (90.40%) Derivative instruments: Interest rate 4 Discounted cash flows Probability of default .02 - 100% (2.10%) Internal risk rating 1 - 19 (9.021) Loss given default 0 - 1 (.492) Credit (1 ) Discounted cash flows Probability of default .02 - 100% (2.36%) Internal risk rating 1 - 19 (9.134) Loss given default 0 - 1 (.50) Other (d) 6 Discounted cash flows Loan closing rates 36.70 - 99.15% (74.62%) Nonrecurring Impaired loans $ 57 Fair value of underlying collateral Discount rate 0 - 80.00% (17.00%) Accrued income and other assets: OREO and other Level 3 assets (e) $ 18 Appraised value Appraised value N/M December 31, 2018 Level 3 Asset (Liability) Valuation Technique Significant Unobservable Input Range (Weighted-Average (b)(c) ) dollars in millions Nonrecurring Impaired loans $ 42 Fair value of underlying collateral Discount rate 20.00 - 40.00% (21.00%) (a) Principal investments, direct is excluded from this table as the balance at June 30, 2019 , is insignificant (less than $1 million ). (b) The weighted average of significant unobservable inputs is calculated using a weighting relative to fair value. (c) For significant unobservable inputs with no range, a single figure is reported to denote the single quantitative factor used. (d) Amounts represent interest rate lock commitments. (e) Excludes balances pertaining to mortgage servicing assets. Refer to Note 9. Mortgage Servicing Assets for significant unobservable inputs pertaining to these assets. Fair Value Disclosures of Financial Instruments The levels in the fair value hierarchy ascribed to our financial instruments and the related carrying amounts at June 30, 2019 , and December 31, 2018 , are shown in the following tables. Assets and liabilities are further arranged by measurement category. June 30, 2019 Fair Value in millions Carrying Amount Level 1 Level 2 Level 3 Measured at NAV Netting Adjustment Total ASSETS (by measurement category) Fair value - net income Trading account assets (b) $ 1,005 $ — $ 1,005 — — — $ 1,005 Other investments (b) 632 — — $ 547 $ 85 — 632 Loans, net of unearned income (residential) (d) 3 — — 3 — — 3 Loans held for sale (residential) (b) 164 — 164 — — — 164 Derivative assets - trading (b) 715 41 1,065 11 — $ (402 ) (f) 715 Fair value - OCI Securities available for sale (b) 21,528 — 21,517 $ 11 — — 21,528 Derivative assets - hedging (b)(g) 94 — 105 — — (11 ) (f) 94 Amortized cost Held-to-maturity securities (c) 10,878 — 10,899 — — — 10,899 Loans, net of unearned income (d) 91,044 — — 89,803 — — 89,803 Loans held for sale (b) 1,626 — — 1,626 — — 1,626 Other Cash and short-term investments (a) 3,050 3,050 — — — — 3,050 LIABILITIES (by measurement category) Fair value - net income Derivative liabilities - trading (b) $ 216 $ 33 $ 490 1 — $ (308 ) (f) $ 216 Fair value - OCI Derivative liabilities - hedging (b)(g) 1 2 10 — — (11 ) (f) 1 Amortized cost Time deposits (e) 13,608 — 13,716 — — — 13,716 Short-term borrowings (a) 881 7 874 — — — 881 Long-term debt (e) 14,312 13,557 1,229 — — — 14,786 Other Deposits with no stated maturity (a) 96,338 — 96,338 — — — 96,338 December 31, 2018 Fair Value in millions Carrying Amount Level 1 Level 2 Level 3 Measured at NAV Netting Adjustment Total ASSETS (by measurement category) Fair value - net income Trading account assets (b) $ 849 — $ 849 — — — $ 849 Other investments (b) 666 — 1 $ 559 $ 106 — 666 Loans, net of unearned income (residential) (d) 3 — — 3 — — 3 Loans held for sale (residential) (b) 54 — 54 — — — 54 Derivative assets - trading (b) 462 $ 68 736 8 — $ (350 ) (f) 462 Fair value - OCI Securities available for sale (b) 19,428 — 19,408 20 — — 19,428 Derivative assets - hedging (b)(g) 69 2 50 — — 17 (f) 69 Amortized cost Held-to-maturity securities (c) 11,519 — 11,122 — — — 11,122 Loans, net of unearned income (d) 88,666 — — 86,224 — — 86,224 Loans held for sale (b) 1,173 — — 1,173 — — 1,173 Other Cash and short-term investments (a) 3,240 3,240 — — — — 3,240 LIABILITIES (by measurement category) Fair value - net income Derivative liabilities - trading (b) $ 395 $ 58 $ 675 — — $ (338 ) (f) $ 395 Fair value - OCI Derivative liabilities - hedging (b)(g) (9 ) — (10 ) — — 1 (f) (9 ) Amortized cost Time deposits (e) 13,245 — 13,331 — — — 13,331 Short-term borrowings (a) 863 14 849 — — — 863 Long-term debt (e) 13,732 12,576 1,211 — — — 13,787 Other Deposits with no stated maturity (a) 94,064 — 94,064 — — — 94,064 Valuation Methods and Assumptions (a) Fair value equals or approximates carrying amount. The fair value of deposits with no stated maturity does not take into consideration the value ascribed to core deposit intangibles. (b) Information pertaining to our methodology for measuring the fair values of these assets and liabilities is included in the sections entitled “Qualitative Disclosures of Valuation Techniques” and “Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis” in this Note. Investments accounted for under the cost method (or cost less impairment adjusted for observable price changes for certain equity investments) are classified as Level 3 assets. These investments are not actively traded in an open market as sales for these types of investments are rare. The carrying amount of the investments carried at cost are adjusted for declines in value if they are considered to be other-than-temporary (or due to observable orderly transactions of the same issuer for equity investments eligible for the cost less impairment measurement alternative). These adjustments are included in “other income” on the income statement. (c) Fair values of held-to-maturity securities are determined by using models that are based on security-specific details, as well as relevant industry and economic factors. The most significant of these inputs are quoted market prices, interest rate spreads on relevant benchmark securities, and certain prepayment assumptions. We review the valuations derived from the models to ensure that they are reasonable and consistent with the values placed on similar securities traded in the secondary markets. (d) The fair value of loans is based on the present value of the expected cash flows. The projected cash flows are based on the contractual terms of the loans, adjusted for prepayments and use of a discount rate based on the relative risk of the cash flows, taking into account the loan type, maturity of the loan, liquidity risk, servicing costs, and a required return on debt and capital. In addition, an incremental liquidity discount is applied to certain loans, using historical sales of loans during periods of similar economic conditions as a benchmark. The fair value of loans includes lease financing receivables at their aggregate carrying amount, which is equivalent to their fair value. (e) Fair values of time deposits and long-term debt are based on discounted cash flows utilizing relevant market inputs. (f) Netting adjustments represent the amounts recorded to convert our derivative assets and liabilities from a gross basis to a net basis in accordance with the applicable accounting guidance. The net basis takes into account the impact of bilateral collateral and master netting agreements that allow us to settle all d |
Securities
Securities | 6 Months Ended |
Jun. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities | 6. Securities The amortized cost, unrealized gains and losses, and approximate fair value of our securities available for sale and held-to-maturity securities are presented in the following tables. Gross unrealized gains and losses represent the difference between the amortized cost and the fair value of securities on the balance sheet as of the dates indicated. Accordingly, the amount of these gains and losses may change in the future as market conditions change. June 30, 2019 December 31, 2018 in millions Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value SECURITIES AVAILABLE FOR SALE U.S. Treasury, agencies, and corporations $ 272 — — $ 272 $ 150 — $ 3 $ 147 States and political subdivisions 5 — — 5 7 — — 7 Agency residential collateralized mortgage obligations 13,593 $ 111 $ 92 13,612 14,315 $ 20 373 13,962 Agency residential mortgage-backed securities 2,035 36 10 2,061 2,128 13 36 2,105 Agency commercial mortgage-backed securities 5,472 128 57 5,543 3,300 19 132 3,187 Other securities 17 18 — 35 17 3 — 20 Total securities available for sale $ 21,394 $ 293 $ 159 $ 21,528 $ 19,917 $ 55 $ 544 $ 19,428 HELD-TO-MATURITY SECURITIES Agency residential collateralized mortgage obligations $ 6,435 $ 28 $ 59 $ 6,404 $ 7,021 $ 2 $ 254 $ 6,769 Agency residential mortgage-backed securities 456 2 1 457 490 — 14 476 Agency commercial mortgage-backed securities 3,972 64 13 4,023 3,996 2 133 3,865 Other securities 15 — — 15 12 — — 12 Total held-to-maturity securities $ 10,878 $ 94 $ 73 $ 10,899 $ 11,519 $ 4 $ 401 $ 11,122 The following table summarizes our securities that were in an unrealized loss position as of June 30, 2019 , and December 31, 2018 . Duration of Unrealized Loss Position Less than 12 Months 12 Months or Longer Total in millions Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses June 30, 2019 Securities available for sale: U.S Treasury, agencies, and corporations $ 10 — $ 45 — $ 55 — Agency residential collateralized mortgage obligations 183 $ 1 6,941 $ 91 7,124 $ 92 Agency residential mortgage-backed securities 1 — (a) 996 10 997 10 Agency commercial mortgage-backed securities — — 1,779 57 1,779 57 Held-to-maturity securities: Agency residential collateralized mortgage obligations — — 3,941 59 3,941 59 Agency residential mortgage-backed securities 58 — (a) 81 1 139 1 Agency commercial mortgage-backed securities — — 514 13 514 13 Other securities 7 — (a) — — 7 — Total temporarily impaired securities $ 259 $ 1 $ 14,298 $ 231 $ 14,557 $ 232 December 31, 2018 Securities available for sale: U.S. Treasury, agencies, and corporations — — $ 147 $ 3 $ 147 $ 3 Agency residential collateralized mortgage obligations $ 570 $ 2 10,945 371 11,515 373 Agency residential mortgage-backed securities 4 — (b) 1,087 36 1,091 36 Agency commercial mortgage-backed securities — — 1,729 132 1,729 132 Held-to-maturity securities: Agency residential collateralized mortgage obligations — — 6,416 254 6,416 254 Agency residential mortgage-backed securities — — 475 14 475 14 Agency commercial mortgage-backed securities 73 — (b) 3,359 133 3,432 133 Total temporarily impaired securities $ 647 $ 2 $ 24,158 $ 943 $ 24,805 $ 945 (a) At June 30, 2019 , gross unrealized losses totaled less than $1 million for agency residential mortgage-backed securities available for sale and less than $1 million for agency residential mortgage-back securities and other securities held-to-maturity securities with a loss duration of less than 12 months. (b) At December 31, 2018 , gross unrealized losses totaled less than $1 million for agency residential mortgage-backed securities available for sale with a loss duration of less than 12 months and less than $1 million for agency commercial mortgage-backed securities held-to-maturity with a loss duration of less than 12 months. At June 30, 2019 , we had $92 million of gross unrealized losses related to 278 fixed-rate agency residential CMOs that we invested in as part of our overall A/LM strategy. These securities had a weighted-average maturity of 3.72 years at June 30, 2019 . At June 30, 2019 , we also had $10 million of gross unrealized losses related to 213 agency residential mortgage-backed securities positions and $57 million of gross unrealized losses related to 14 agency commercial mortgage backed securities positions with weighted-average maturities of 3.75 years and 4.12 years, respectively. Because these securities have a fixed interest rate, their fair value is sensitive to movements in market interest rates. These unrealized losses are considered temporary since we expect to collect all contractually due amounts from these securities. Accordingly, these investments were reduced to their fair value through OCI, not through earnings. We regularly assess our securities portfolio for OTTI. The assessments are based on the nature of the securities, the underlying collateral, the financial condition of the issuer, the extent and duration of the loss, our intent related to the individual securities, and the likelihood that we will have to sell securities prior to expected recovery. We did no t have any impairment losses recognized in earnings for the six months ended June 30, 2019 . At June 30, 2019 , securities available for sale and held-to-maturity securities totaling $8.5 billion were pledged to secure securities sold under repurchase agreements, to secure public and trust deposits, to facilitate access to secured funding, and for other purposes required or permitted by law. The following table shows our securities by remaining maturity. CMOs and other mortgage-backed securities in the available for sale portfolio and held-to-maturity portfolio are presented based on their expected average lives. The remaining securities, in both the available-for-sale and held-to-maturity portfolios, are presented based on their remaining contractual maturity. Actual maturities may differ from expected or contractual maturities since borrowers have the right to prepay obligations with or without prepayment penalties. June 30, 2019 Securities Available for Sale Held to Maturity Securities in millions Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ 360 $ 378 $ 41 $ 41 Due after one through five years 16,532 16,535 7,605 7,590 Due after five through ten years 4,493 4,606 3,232 3,268 Due after ten years 9 9 — — Total $ 21,394 $ 21,528 $ 10,878 $ 10,899 |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Activities | 7. Derivatives and Hedging Activities We are a party to various derivative instruments, mainly through our subsidiary, KeyBank. The primary derivatives that we use are interest rate swaps, caps, floors, and futures; foreign exchange contracts; commodity derivatives; and credit derivatives. Generally, these instruments help us manage exposure to interest rate risk, mitigate the credit risk inherent in our loan portfolio, hedge against changes in foreign currency exchange rates, and meet client financing and hedging needs. At June 30, 2019 , after taking into account the effects of bilateral collateral and master netting agreements, we had $94 million of derivative assets and $1 million of derivative liabilities that relate to contracts entered into for hedging purposes. As of the same date, after taking into account the effects of bilateral collateral and master netting agreements and a reserve for potential future losses, we had derivative assets of $715 million and derivative liabilities of $216 million that were not designated as hedging instruments. These positions are primarily comprised of derivative contracts entered into for client accommodation purposes. Additional information regarding our accounting policies for derivatives is provided in Note 1 (“ Summary of Significant Accounting Policies ”) under the heading “Derivatives and Hedging” beginning on page 103 of our 2018 Form 10-K. Our derivative strategies and related risk management objectives are described in Note 8 (“ Derivatives and Hedging Activities ”) beginning on page 132 of our 2018 Form 10-K. Fair Values, Volume of Activity, and Gain/Loss Information Related to Derivative Instruments The following table summarizes the fair values of our derivative instruments on a gross and net basis as of June 30, 2019 , and December 31, 2018 . The derivative asset and liability balances are presented on a gross basis, prior to the application of bilateral collateral and master netting agreements, but after the variation margin payments with central clearing organizations have been applied as settlement, as applicable. Total derivative assets and liabilities are adjusted to take into account the impact of legally enforceable master netting agreements that allow us to settle all derivative contracts with a single counterparty on a net basis and to offset the net derivative position with the related cash collateral. Securities collateral related to legally enforceable master netting agreements is not offset on the balance sheet. Our derivative instruments are included in “accrued income and other assets” or “accrued expenses and other liabilities” on the balance sheet, as follows: June 30, 2019 December 31, 2018 Fair Value Fair Value in millions Notional Amount Derivative Assets Derivative Liabilities Notional Amount Derivative Assets Derivative Liabilities Derivatives designated as hedging instruments: Interest rate $ 37,147 $ 105 $ 10 $ 28,546 $ 50 $ (10 ) Foreign exchange 122 — 2 122 2 — Total 37,269 105 12 28,668 52 (10 ) Derivatives not designated as hedging instruments: Interest rate 68,202 784 210 63,454 365 307 Foreign exchange 5,702 70 62 6,829 104 95 Commodity 6,662 246 236 2,002 333 323 Credit 453 1 3 226 1 1 Other (a) 4,483 16 13 1,466 9 7 Total 85,502 1,117 524 73,977 812 733 Netting adjustments (b) — (413 ) (319 ) — (333 ) (337 ) Net derivatives in the balance sheet 122,771 809 217 102,645 531 386 Other collateral (c) — (3 ) (46 ) — (2 ) (33 ) Net derivative amounts $ 122,771 $ 806 $ 171 $ 102,645 $ 529 $ 353 (a) Other derivatives include interest rate lock commitments and forward sale commitments related to our residential mortgage banking activities, forward purchase and sales contracts consisting of contractual commitments associated with “to be announced” securities and when-issued securities, and other customized derivative contracts. (b) Netting adjustments represent the amounts recorded to convert our derivative assets and liabilities from a gross basis to a net basis in accordance with the applicable accounting guidance. (c) Other collateral represents the amount that cannot be used to offset our derivative assets and liabilities from a gross basis to a net basis in accordance with the applicable accounting guidance. The other collateral consists of securities and is exchanged under bilateral collateral and master netting agreements that allow us to offset the net derivative position with the related collateral. The application of the other collateral cannot reduce the net derivative position below zero. Therefore, excess other collateral, if any, is not reflected above. Fair value hedges. During the six -month period ended June 30, 2019 , we did not exclude any portion of fair value hedging instruments from the assessment of hedge effectiveness. The following tables summarize the amounts that were recorded on the balance sheet as of June 30, 2019 , and December 31, 2018 , related to cumulative basis adjustments for fair value hedges. June 30, 2019 in millions Balance sheet line item in which the hedge item is included Carrying amount of hedged item (a) Hedge accounting basis adjustment (b) Interest rate contracts Long-term debt $ 9,559 $ 237 Interest rate contracts Certificate of deposit ($100,000 or more) 194 — Interest rate contracts Other time deposits 175 — December 31, 2018 Balance sheet line item in which the hedge item is included Carrying amount of hedged item (a) Hedge accounting basis adjustment (b) Interest rate contracts Long-term debt $ 9,363 $ (6 ) Interest rate contracts Certificate of deposit ($100,000 or more) 343 (1 ) Interest rate contracts Other time deposits 178 — (a) The carrying amount represents the portion of the liability designated as the hedged item. (b) Basis adjustments related to de-designated hedged items that no longer qualify as fair value hedges reduced the hedge accounting basis adjustment by $10 million and $10 million at June 30, 2019 , and December 31, 2018 , respectively, Cash flow hedges. During the six -month period ended June 30, 2019 , we did not exclude any portion of cash flow hedging instruments from the assessment of hedge effectiveness. Considering the interest rates, yield curves, and notional amounts as of June 30, 2019 , we expect to reclassify an estimated $63 million of after-tax net losses on derivative instruments designated as cash flow hedges from AOCI to income during the next 12 months . In addition, we expect to reclassify approximately $10 million of net losses related to terminated cash flow hedges from AOCI to income during the next 12 months. As of June 30, 2019 , the maximum length of time over which we hedge forecasted transactions is 10 years. The following tables summarize the effect of fair value and cash flow hedge accounting on the income statement for the three- and six- month periods ended June 30, 2019 , and June 30, 2018 . Location and amount of net gains (losses) recognized in income on fair value and cash flow hedging relationships in millions Interest expense – long-term debt Interest income – loans Interest expense - deposits Other income Three months ended June 30, 2019 Total amounts presented in the consolidated statement of income $ (120 ) $ 1,082 $ (223 ) $ 17 Net gains (losses) on fair value hedging relationships Interest contracts Recognized on hedged items (152 ) — (1 ) — Recognized on derivatives designated as hedging instruments 142 — — — Net income (expense) recognized on fair value hedges $ (10 ) — (1 ) — Net gain (loss) on cash flow hedging relationships Interest contracts Realized gains (losses) (pre-tax) reclassified from AOCI into net income $ — $ (19 ) — — Net income (expense) recognized on cash flow hedges $ — $ (19 ) — — Three months ended June 30, 2018 Total amounts presented in the consolidated statement of income $ (102 ) $ 1,000 $ (112 ) $ 99 Net gains (losses) on fair value hedging relationships Interest contracts Recognized on hedged items $ 22 — $ 1 — Recognized on derivatives designated as hedging instruments (25 ) — — — Net income (expense) recognized on fair value hedges $ (3 ) — $ 1 — Net gain (loss) on cash flow hedging relationships Interest contracts Realized gains (losses) (pre-tax) reclassified from AOCI into net income $ 1 $ (25 ) — — Net income (expense) recognized on cash flow hedges $ 1 $ (25 ) — — Location and amount of net gains (losses) recognized in income on fair value and cash flow hedging relationships in millions Interest expense – long-term debt Interest income – loans Interest expense - deposits Other income Six months ended June 30, 2019 Total amounts presented in the consolidated statement of income $ (240 ) $ 2,148 $ (425 ) $ 27 Net gains (losses) on fair value hedging relationships Interest contracts Recognized on hedged items (245 ) — (1 ) — Recognized on derivatives designated as hedging instruments 224 — — — Net income (expense) recognized on fair value hedges $ (21 ) — (1 ) — Net gain (loss) on cash flow hedging relationships Interest contracts Realized gains (losses) (pre-tax) reclassified from AOCI into net income $ (1 ) $ (43 ) — — Net income (expense) recognized on cash flow hedges $ (1 ) $ (43 ) — — Six months ended June 30, 2018 Total amounts presented in the consolidated statement of income $ (194 ) $ 1,940 $ (203 ) $ 120 Net gains (losses) on fair value hedging relationships Interest contracts Recognized on hedged items $ 93 — $ 1 — Recognized on derivatives designated as hedging instruments (94 ) — — — Net income (expense) recognized on fair value hedges $ (1 ) — $ 1 — Net gain (loss) on cash flow hedging relationships Interest contracts Realized gains (losses) (pre-tax) reclassified from AOCI into net income — $ (27 ) — — Net income (expense) recognized on cash flow hedges — $ (27 ) — — Net investment hedges. We enter into foreign currency forward contracts to hedge our exposure to changes in the carrying value of our investments as a result of changes in the related foreign exchange rates. At June 30, 2019 , AOCI reflected unrecognized, after-tax gains totaling $24 million related to cumulative changes in the fair value of our net investment hedges, which offset the unrecognized, after-tax foreign currency losses on net investment balances. We did not exclude any portion of our hedging instruments from the assessment of hedge effectiveness during the six -month period ended June 30, 2019 . The following tables summarize the pre-tax net gains (losses) on our cash flow and net investment hedges for the three- and six- month periods ended June 30, 2019 , and June 30, 2018 , and where they are recorded on the income statement. The table includes net gains (losses) recognized in OCI during the period and net gains (losses) reclassified from OCI into income during the current period. in millions Net Gains (Losses) Recognized in OCI Income Statement Location of Net Gains (Losses) Reclassified From OCI Into Income Net Gains (Losses) Reclassified From OCI Into Income Three months ended June 30, 2019 Cash Flow Hedges Interest rate $ 270 Interest income — Loans $ (19 ) Interest rate (2 ) Interest expense — Long-term debt — Interest rate (1 ) Investment banking and debt placement fees — Net Investment Hedges Foreign exchange contracts (1 ) Other Income — Total $ 266 $ (19 ) Three months ended June 30, 2018 Cash Flow Hedges Interest rate $ (58 ) Interest income — Loans $ (25 ) Interest rate 2 Interest expense — Long-term debt 1 Interest rate 1 Investment banking and debt placement fees — Net Investment Hedges Foreign exchange contracts 10 Other Income — Total $ (45 ) $ (24 ) in millions Net Gains (Losses) Recognized in OCI Income Statement Location of Net Gains (Losses) Reclassified From OCI Into Income Net Gains (Losses) Reclassified From OCI Into Income (a) Six months ended June 30, 2019 Cash Flow Hedges Interest rate $ 385 Interest income — Loans $ (43 ) Interest rate (3 ) Interest expense — Long-term debt (1 ) Interest rate (6 ) Investment banking and debt placement fees — Net Investment Hedges Foreign exchange contracts (4 ) Other Income — Total $ 372 $ (44 ) Six months ended June 30, 2018 Cash Flow Hedges Interest rate $ (146 ) Interest income — Loans $ (27 ) Interest rate 4 Interest expense — Long-term debt — Interest rate 1 Investment banking and debt placement fees — Net Investment Hedges Foreign exchange contracts 10 Other Income — Total $ (131 ) $ (27 ) Nonhedging instruments The following table summarizes the pre-tax net gains (losses) on our derivatives that are not designated as hedging instruments for the three- and six- month periods ended June 30, 2019 , and June 30, 2018 , and where they are recorded on the income statement. Three months ended June 30, 2019 Three months ended June 30, 2018 in millions Corporate services income Consumer mortgage income Other income Total Corporate services income Consumer mortgage income Other income Total NET GAINS (LOSSES) Interest rate $ 7 — $ — $ 7 $ 11 — — $ 11 Foreign exchange 11 — — 11 11 — — 11 Commodity 2 — — 2 3 — — 3 Credit — — (8 ) (8 ) — — $ (14 ) (14 ) Other — — 2 2 — — 16 16 Total net gains (losses) $ 20 — $ (6 ) $ 14 $ 25 — $ 2 $ 27 Six months ended June 30, 2019 Six months ended June 30, 2018 in millions Corporate services income Consumer mortgage income Other income Total Corporate services income Consumer mortgage income Other income Total NET GAINS (LOSSES) Interest rate $ 15 $ — $ (2 ) $ 13 $ 20 — $ 2 $ 22 Foreign exchange 21 — — 21 22 — — 22 Commodity 3 — — 3 6 — — 6 Credit 1 — (15 ) (14 ) 2 — (19 ) (17 ) Other — — 3 3 — $ — 12 12 Total net gains (losses) $ 40 $ — $ (14 ) $ 26 $ 50 $ — $ (5 ) $ 45 Counterparty Credit Risk We hold collateral in the form of cash and highly rated securities issued by the U.S. Treasury, government-sponsored enterprises, or GNMA. Cash collateral of $160 million was netted against derivative assets on the balance sheet at June 30, 2019 , compared to $33 million of cash collateral netted against derivative assets at December 31, 2018 . The cash collateral netted against derivative liabilities totaled $66 million at June 30, 2019 , and $37 million at December 31, 2018 . Our means of mitigating and managing exposure to credit risk on derivative contracts is described in Note 8 (“ Derivatives and Hedging Activities ”) beginning on page 136 of our 2018 Form 10-K under the heading “Counterparty Credit Risk.” The following table summarizes the fair value of our derivative assets by type at the dates indicated. These assets represent our gross exposure to potential loss after taking into account the effects of bilateral collateral and master netting agreements and other means used to mitigate risk. in millions June 30, 2019 December 31, 2018 Interest rate $ 793 $ 308 Foreign exchange 36 60 Commodity 124 187 Credit — — Other 16 9 Derivative assets before collateral 969 564 Less: Related collateral 160 33 Total derivative assets $ 809 $ 531 We enter into derivative transactions with two primary groups: broker-dealers and banks, and clients. Given that these groups have different economic characteristics, we have different methods for managing counterparty credit exposure and credit risk. We enter into transactions with broker-dealers and banks for various risk management purposes. At June 30, 2019 , we had gross exposure of $384 million to broker-dealers and banks. We had net exposure of $117 million after the application of master netting agreements and cash collateral, where such qualifying agreements exist. We had net exposure of $113 million after considering $4 million of additional collateral held in the form of securities. We enter into transactions with clients to accommodate their business needs. Due to the smaller size and magnitude of the individual contracts with clients, we generally do not exchange collateral in connection with these derivative transactions. To address the risk of default associated with the uncollateralized contracts, we have established a credit valuation adjustment (included in “accrued income and other assets”) in the amount of $6 million at June 30, 2019 , which we estimate to be the potential future losses on amounts due from client counterparties in the event of default. At June 30, 2019 , we had gross exposure of $731 million to client counterparties and other entities that are not broker-dealers or banks for derivatives that have associated master netting agreements. We had net exposure of $692 million on our derivatives with these counterparties after the application of master netting agreements, collateral, and the related reserve. Credit Derivatives We are a buyer and, under limited circumstances, may be a seller of credit protection through the credit derivative market. We purchase credit derivatives to manage the credit risk associated with specific commercial lending and swap obligations as well as exposures to debt securities. Our credit derivative portfolio was in a net liability position of $2 million as of June 30, 2019 , and less than $1 million as of December 31, 2018 . Our credit derivative portfolio consists of single-name credit default swaps, traded credit default swap indices, and risk participation agreements. Additional descriptions of our credit derivatives are provided in Note 8 (“ Derivatives and Hedging Activities ”) beginning on page 137 of our 2018 Form 10-K under the heading “Credit Derivatives.” The following table provides information on the types of credit derivatives sold by us and held on the balance sheet at June 30, 2019 , and December 31, 2018 . The sold credit derivatives represented in the following table include only Risk Participation Agreements; there were no traded indexes sold. The notional amount represents the maximum amount that the seller could be required to pay. The payment/performance risk assessment at June 30, 2019 , is based on the internal probability of default of the reference entity consistent with our Fair Value Methodology. The payment/performance risk shown in the table represents a weighted-average of the default probabilities for all reference entities. These default probabilities are directly correlated to the probability that we will have to make a payment under the credit derivative contracts. June 30, 2019 December 31, 2018 dollars in millions Notional Amount Average Term (Years) Payment / Performance Risk Notional Amount Average Term (Years) Payment / Performance Risk Other $ 126 13.84 2.50 % $ 22 13.43 17.18 % Total credit derivatives sold $ 126 — — $ 22 — — Credit Risk Contingent Features We have entered into certain derivative contracts that require us to post collateral to the counterparties when these contracts are in a net liability position. The amount of collateral to be posted is based on the amount of the net liability and thresholds generally related to our long-term senior unsecured credit ratings with Moody’s and S&P. Collateral requirements also are based on minimum transfer amounts, which are specific to each Credit Support Annex (a component of the ISDA Master Agreement) that we have signed with the counterparties. In a limited number of instances, counterparties have the right to terminate their ISDA Master Agreements with us if our ratings fall below a certain level, usually investment-grade level (i.e., “Baa3” for Moody’s and “BBB-” for S&P). At June 30, 2019 , KeyBank’s rating was “ A3 ” with Moody’s and “ A- ” with S&P, and KeyCorp’s rating was “ Baa1 ” with Moody’s and “ BBB+ ” with S&P. As of June 30, 2019 , the aggregate fair value of all derivative contracts with credit risk contingent features (i.e., those containing collateral posting or termination provisions based on our ratings) held by KeyBank that were in a net liability position totaled $8 million , which was comprised of $6 million in derivative assets and $14 million in derivative liabilities. We had $9 million in cash and securities collateral posted to cover those positions as of June 30, 2019 . There were no derivative contracts with credit risk contingent features held by KeyCorp at June 30, 2019 . The following table summarizes the additional cash and securities collateral that KeyBank would have been required to deliver under the ISDA Master Agreements had the credit risk contingent features been triggered for the derivative contracts in a net liability position as of June 30, 2019 , and December 31, 2018 . The additional collateral amounts were calculated based on scenarios under which KeyBank’s ratings are downgraded one, two, or three ratings as of June 30, 2019 , and December 31, 2018 , and take into account all collateral already posted. A similar calculation was performed for KeyCorp, and no additional collateral would have been required as of June 30, 2019 , and December 31, 2018 . For more information about the credit ratings for KeyBank and KeyCorp, see the discussion under the heading “Factors affecting liquidity” in the section entitled “Liquidity risk management” in Item 2 of this report. June 30, 2019 December 31, 2018 in millions Moody’s S&P Moody’s S&P KeyBank’s long-term senior unsecured credit ratings A3 A- A3 A- One rating downgrade $ — $ — $ 2 $ 2 Two rating downgrades — — 2 2 Three rating downgrades — — 2 2 KeyBank’s long-term senior unsecured credit rating was four ratings above noninvestment grade at Moody’s and S&P as of June 30, 2019 , and December 31, 2018 . If KeyBank’s ratings had been downgraded below investment grade as of June 30, 2019 , or December 31, 2018 , payments of less than $1 million and $4 million , respectively, would have been required to either terminate the contracts or post additional collateral for those contracts in a net liability position, taking into account all collateral already posted. If KeyCorp’s ratings had been downgraded below investment grade as of June 30, 2019 , or December 31, 2018 , no payments would have been required to either terminate the contracts or post additional collateral for those contracts in a net liability position, taking into account all collateral already posted. |
Mortgage Servicing Assets
Mortgage Servicing Assets | 6 Months Ended |
Jun. 30, 2019 | |
Servicing Asset [Abstract] | |
Mortgage Servicing Assets | 8. Mortgage Servicing Assets We originate and periodically sell commercial and residential mortgage loans but continue to service those loans for the buyers. We also may purchase the right to service commercial mortgage loans for other lenders. We record a servicing asset if we purchase or retain the right to service loans in exchange for servicing fees that exceed the going market servicing rate and are considered more than adequate compensation for servicing. Additional information pertaining to the accounting for mortgage and other servicing assets is included in Note 1 (“ Summary of Significant Accounting Policies ”) under the heading “Servicing Assets” beginning on page 106 of our 2018 Form 10-K. Commercial Changes in the carrying amount of commercial mortgage servicing assets are summarized as follows: Three months ended June 30, Six months ended June 30, in millions 2019 2018 2019 2018 Balance at beginning of period $ 497 $ 435 $ 502 $ 412 Servicing retained from loan sales 23 29 41 56 Purchases 17 12 23 33 Amortization (28 ) (25 ) (57 ) (50 ) Balance at end of period $ 509 $ 451 $ 509 $ 451 Fair value at end of period $ 723 $ 646 $ 723 $ 646 The fair value of commercial mortgage servicing assets is determined by calculating the present value of future cash flows associated with servicing the loans. This calculation uses a number of assumptions that are based on current market conditions. The range and weighted average of the significant unobservable inputs used to determine the fair value of our commercial mortgage servicing assets at June 30, 2019 , and June 30, 2018 , along with the valuation techniques, are shown in the following table: dollars in millions June 30, 2019 June 30, 2018 Valuation Technique Significant Unobservable Input Range (Weighted Average) Discounted cash flow Expected defaults 1.00 - 2.00% (1.13%) 1.00 - 3.00% (1.17%) Residual cash flows discount rate 7.00 - 11.54% (9.26%) 7.00 - 15.00% (9.06%) Escrow earn rate 1.92 - 3.13% (2.63%) 2.40 - 3.82% (3.10%) Loan assumption rate 0.00 - 3.02% (1.40%) 0.00 - 3.00% (1.19%) If these economic assumptions change or prove incorrect, the fair value of commercial mortgage servicing assets may also change. Expected credit losses, escrow earning rates, and discount rates are critical to the valuation of commercial mortgage servicing assets. Estimates of these assumptions are based on how a market participant would view the respective rates, and reflect historical data associated with the commercial mortgage loans, industry trends, and other considerations. Actual rates may differ from those estimated due to changes in a variety of economic factors. A decrease in the value assigned to the escrow earning rates would cause a decrease in the fair value of our commercial mortgage servicing assets. An increase in the assumed default rates of commercial mortgage loans or an increase in the assigned discount rates would cause a decrease in the fair value of our commercial mortgage servicing assets. Prepayment activity on commercial serviced loans does not significantly affect the valuation of our commercial mortgage servicing assets. Unlike residential mortgages, commercial mortgages experience significantly lower prepayments due to certain contractual restrictions affecting the borrower’s ability to prepay the mortgage. The amortization of commercial servicing assets is determined in proportion to, and over the period of, the estimated net servicing income. The amortization of commercial servicing assets for each period, as shown in the table at the beginning of this note, is recorded as a reduction to contractual fee income. The contractual fee income from servicing commercial mortgage loans totaled $95 million for the six-month period ended June 30, 2019 , and $85 million for the six-month period ended June 30, 2018 . This fee income was offset by $57 million of amortization for the six-month period ended June 30, 2019 , and $50 million for the six-month period ended June 30, 2018 . Both the contractual fee income and the amortization are recorded, net, in “mortgage servicing fees” on the income statement. Residential Changes in the carrying amount of residential mortgage servicing assets are summarized as follows: Three months ended June 30, Six months ended June 30, in millions 2019 2018 2019 2018 Balance at beginning of period $ 38 $ 32 $ 37 $ 31 Servicing retained from loan sales 2 3 4 5 Purchases — — — — Amortization (1 ) (1 ) (2 ) (2 ) Balance at end of period $ 39 $ 34 $ 39 $ 34 Fair value at end of period $ 45 $ 43 $ 45 $ 43 The fair value of mortgage servicing assets is determined by calculating the present value of future cash flows associated with servicing the loans. This calculation uses a number of assumptions that are based on current market conditions. The range and weighted-average of the significant unobservable inputs used to fair value our mortgage servicing assets at June 30, 2019 , and June 30, 2018 , along with the valuation techniques, are shown in the following table: dollars in millions June 30, 2019 June 30, 2018 Valuation Technique Significant Unobservable Input Range (Weighted Average) Discounted cash flow Prepayment speed 10.95 - 62.06% (12.52%) 8.39 - 49.39% (9.17%) Discount rate 7.50 - 10.00% (7.53%) 8.50 - 11.00% (8.54%) Servicing cost $62 - $4,375 ($67.55) $76 - $4,385 ($82.38) If these economic assumptions change or prove incorrect, the fair value of residential mortgage servicing assets may also change. Prepayment speed, discount rates, and servicing cost are critical to the valuation of servicing assets. Estimates of these assumptions are based on how a market participant would view the respective rates, and reflect historical data associated with the loans, industry trends, and other considerations. Actual rates may differ from those estimated due to changes in a variety of economic factors. An increase in the prepayment speed, assigned discount rates, and servicing cost assumptions would also cause a negative impact on the fair value of our residential mortgage servicing assets. The amortization of residential servicing assets is determined in proportion to, and over the period of, the estimated net residential servicing income. The amortization of servicing assets for June 30, 2019 , as shown in the table above, is recorded as a reduction to contractual fee income. The contractual fee income from servicing residential mortgage loans totaled $9 million for the six-month period ended June 30, 2019 , and $7 million for the six-month period ended June 30, 2018 . This fee income was offset by $2 million of amortization for both the six-month periods ended June 30, 2019 , and June 30, 2018 . Both the contractual fee income and the amortization are recorded, net, in “mortgage servicing fees” on the income statement. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Leases | 9. Leases As a lessee, we enter into leases of land, buildings and equipment. Our real estate leases primarily relate to bank branches and office space. The leases of equipment principally relate to technology assets for data processing and data storage. As a lessor, we primarily provide financing through our equipment leasing business. Lessee Our leases are classified as either operating or financing and have remaining terms ranging from 1 to 20 years with the exception of certain ground leases that have terms over 30 years. Leases with an initial term of less than 1 year are not recorded on the balance sheet. The related expense is recognized on a straight-line basis over the lease term. For leases with initial terms greater than one year, right-of-use assets are reported on the balance sheet. Certain leases contain options to extend the lease term for up to five years . Some leases give us the option to terminate, for a penalty or at the lessor's discretion. Leases with variable payments are primarily based on adjustments for inflation over the term of the lease based on a contractually defined index. Certain ATM leases include variable payments based on volume of transactions. Operating lease expense is recognized in "net occupancy" and "equipment" on the income statement. The components of lease expense are summarized as follows: in millions Three months ended June 30, 2019 Six months ended June 30, 2019 Operating lease cost $ 34 $ 68 Finance lease cost: Amortization of right-of-use assets 1 1 Variable lease cost 6 11 Total lease cost (a), (b) $ 41 $ 80 (a) Interest on lease liabilities for finance leases was less than $1 million for the three and six months ended June 30, 2019 . (b) Short-term lease cost was less than less than $1 million for the three and six months ended June 30, 2019 . Cash flows related to leases are summarized as follows: in millions Three months ended June 30, 2019 Six months ended June 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: (a) Operating cash flows from operating leases $ 37 $ 73 Financing cash flows from finance leases 1 1 Right-of-use assets obtained in exchange for lease obligations: (b) Operating leases $ 16 $ 44 (a) Operating cash flows from finance leases were less than $1 million for the three and six months ended June 30, 2019 . (b) There were no right-of-use assets obtained in exchange for finance lease obligations for the three and six months ended June 30, 2019 . Additional balance sheet information related to leases is summarized as follows: in millions Balance sheet classification June 30, 2019 Operating lease assets Accrued income and other assets $ 695 Operating lease liabilities Accrued expense and other liabilities 775 Finance leases: Property and equipment, gross Premises and equipment 28 Accumulated depreciation Premises and equipment (16 ) Property and equipment, net 12 Finance lease liabilities Long-term debt 15 Information pertaining to the lease term and weighted-average discount rate is summarized as follows: June 30, 2019 Weighted-average remaining lease term: Operating leases 7.8 Finance leases 6.44 Weighted-average discount rate: Operating leases 3.28 % Finance leases 3.90 % Maturities of lease liabilities are summarized as follows: in millions Operating Leases Finance Leases Total 2019 $ 72 $ 2 $ 74 2020 141 3 144 2021 127 3 130 2022 111 3 114 2023 95 2 97 Thereafter 339 5 344 Total lease payments 885 18 903 Less imputed interest 110 3 113 Total $ 775 $ 15 $ 790 Lessor Equipment Leasing Leases may have fixed or floating rate terms. Variable payments are based on an index or other specified rate and are included in rental payments. Certain leases contain an option to extend the lease term or the option to terminate at the discretion of the lessee. Under certain conditions, lease agreements may also contain the option for a lessee to purchase the underlying asset. Interest income from sales-type and direct financing leases is recognized in "interest income — loans" on the statement of income. Income related to operating leases is recognized in “operating lease income and other leasing gains” on the income statement. The components of equipment leasing income are summarized in the table below: in millions Three months ended June 30, 2019 Six months ended June 30, 2019 Sales-type and direct financing leases Interest income on lease receivable $ 31 $ 61 Interest income related to accretion of unguaranteed residual asset 3 6 Interest income on deferred fees and costs — — Total sales-type and direct financing lease income 34 67 Operating leases Operating lease income related to lease payments 33 66 Other operating leasing gains 11 15 Total operating lease income and other leasing gains 44 81 Total lease income $ 78 $ 148 Equipment leasing receivables relate to sales-type and direct financing leases. The composition of the net investment in sales-type and direct financing leases is as follows: in millions June 30, 2019 Lease receivables $ 3,689 Unearned income (345 ) Unguaranteed residual value 430 Deferred fees and costs 17 Net investment in sales-type and direct financing leases $ 3,791 The residual value component of a lease represents the fair value of the leased asset at the end of the lease term. We rely on industry data, historical experience, independent appraisals and the experience of the equipment leasing asset management team to value lease residuals. Relationships with a number of equipment vendors give the asset management team insight into the life cycle of the leased equipment, pending product upgrades and competing products. Effective January 1, 2019, as a result of the implementation of ASU 2016-02, Key will assess net investments in leases, including residual values, for impairment and recognize any impairment losses in accordance with the impairment guidance for financial instruments. The carrying amount of residual assets covered by residual value guarantees was $289 million at June 30, 2019 . At June 30, 2019 , minimum future lease payments to be received for sales-type and direct financing leases are as follows: in millions Sales-type and direct financing lease payments 2019 $ 640 2020 1,008 2021 731 2022 493 2023 318 Thereafter 499 Total lease payments $ 3,689 At June 30, 2019 , minimum future lease payments to be received for operating leases are as follows: in millions Operating lease payments 2019 $ 64 2020 123 2021 106 2022 90 2023 75 Thereafter 220 Total lease payments $ 678 The carrying amount of operating lease assets at June 30, 2019 , was $948 million . |
Leases | 9. Leases As a lessee, we enter into leases of land, buildings and equipment. Our real estate leases primarily relate to bank branches and office space. The leases of equipment principally relate to technology assets for data processing and data storage. As a lessor, we primarily provide financing through our equipment leasing business. Lessee Our leases are classified as either operating or financing and have remaining terms ranging from 1 to 20 years with the exception of certain ground leases that have terms over 30 years. Leases with an initial term of less than 1 year are not recorded on the balance sheet. The related expense is recognized on a straight-line basis over the lease term. For leases with initial terms greater than one year, right-of-use assets are reported on the balance sheet. Certain leases contain options to extend the lease term for up to five years . Some leases give us the option to terminate, for a penalty or at the lessor's discretion. Leases with variable payments are primarily based on adjustments for inflation over the term of the lease based on a contractually defined index. Certain ATM leases include variable payments based on volume of transactions. Operating lease expense is recognized in "net occupancy" and "equipment" on the income statement. The components of lease expense are summarized as follows: in millions Three months ended June 30, 2019 Six months ended June 30, 2019 Operating lease cost $ 34 $ 68 Finance lease cost: Amortization of right-of-use assets 1 1 Variable lease cost 6 11 Total lease cost (a), (b) $ 41 $ 80 (a) Interest on lease liabilities for finance leases was less than $1 million for the three and six months ended June 30, 2019 . (b) Short-term lease cost was less than less than $1 million for the three and six months ended June 30, 2019 . Cash flows related to leases are summarized as follows: in millions Three months ended June 30, 2019 Six months ended June 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: (a) Operating cash flows from operating leases $ 37 $ 73 Financing cash flows from finance leases 1 1 Right-of-use assets obtained in exchange for lease obligations: (b) Operating leases $ 16 $ 44 (a) Operating cash flows from finance leases were less than $1 million for the three and six months ended June 30, 2019 . (b) There were no right-of-use assets obtained in exchange for finance lease obligations for the three and six months ended June 30, 2019 . Additional balance sheet information related to leases is summarized as follows: in millions Balance sheet classification June 30, 2019 Operating lease assets Accrued income and other assets $ 695 Operating lease liabilities Accrued expense and other liabilities 775 Finance leases: Property and equipment, gross Premises and equipment 28 Accumulated depreciation Premises and equipment (16 ) Property and equipment, net 12 Finance lease liabilities Long-term debt 15 Information pertaining to the lease term and weighted-average discount rate is summarized as follows: June 30, 2019 Weighted-average remaining lease term: Operating leases 7.8 Finance leases 6.44 Weighted-average discount rate: Operating leases 3.28 % Finance leases 3.90 % Maturities of lease liabilities are summarized as follows: in millions Operating Leases Finance Leases Total 2019 $ 72 $ 2 $ 74 2020 141 3 144 2021 127 3 130 2022 111 3 114 2023 95 2 97 Thereafter 339 5 344 Total lease payments 885 18 903 Less imputed interest 110 3 113 Total $ 775 $ 15 $ 790 Lessor Equipment Leasing Leases may have fixed or floating rate terms. Variable payments are based on an index or other specified rate and are included in rental payments. Certain leases contain an option to extend the lease term or the option to terminate at the discretion of the lessee. Under certain conditions, lease agreements may also contain the option for a lessee to purchase the underlying asset. Interest income from sales-type and direct financing leases is recognized in "interest income — loans" on the statement of income. Income related to operating leases is recognized in “operating lease income and other leasing gains” on the income statement. The components of equipment leasing income are summarized in the table below: in millions Three months ended June 30, 2019 Six months ended June 30, 2019 Sales-type and direct financing leases Interest income on lease receivable $ 31 $ 61 Interest income related to accretion of unguaranteed residual asset 3 6 Interest income on deferred fees and costs — — Total sales-type and direct financing lease income 34 67 Operating leases Operating lease income related to lease payments 33 66 Other operating leasing gains 11 15 Total operating lease income and other leasing gains 44 81 Total lease income $ 78 $ 148 Equipment leasing receivables relate to sales-type and direct financing leases. The composition of the net investment in sales-type and direct financing leases is as follows: in millions June 30, 2019 Lease receivables $ 3,689 Unearned income (345 ) Unguaranteed residual value 430 Deferred fees and costs 17 Net investment in sales-type and direct financing leases $ 3,791 The residual value component of a lease represents the fair value of the leased asset at the end of the lease term. We rely on industry data, historical experience, independent appraisals and the experience of the equipment leasing asset management team to value lease residuals. Relationships with a number of equipment vendors give the asset management team insight into the life cycle of the leased equipment, pending product upgrades and competing products. Effective January 1, 2019, as a result of the implementation of ASU 2016-02, Key will assess net investments in leases, including residual values, for impairment and recognize any impairment losses in accordance with the impairment guidance for financial instruments. The carrying amount of residual assets covered by residual value guarantees was $289 million at June 30, 2019 . At June 30, 2019 , minimum future lease payments to be received for sales-type and direct financing leases are as follows: in millions Sales-type and direct financing lease payments 2019 $ 640 2020 1,008 2021 731 2022 493 2023 318 Thereafter 499 Total lease payments $ 3,689 At June 30, 2019 , minimum future lease payments to be received for operating leases are as follows: in millions Operating lease payments 2019 $ 64 2020 123 2021 106 2022 90 2023 75 Thereafter 220 Total lease payments $ 678 The carrying amount of operating lease assets at June 30, 2019 , was $948 million . |
Leases | 9. Leases As a lessee, we enter into leases of land, buildings and equipment. Our real estate leases primarily relate to bank branches and office space. The leases of equipment principally relate to technology assets for data processing and data storage. As a lessor, we primarily provide financing through our equipment leasing business. Lessee Our leases are classified as either operating or financing and have remaining terms ranging from 1 to 20 years with the exception of certain ground leases that have terms over 30 years. Leases with an initial term of less than 1 year are not recorded on the balance sheet. The related expense is recognized on a straight-line basis over the lease term. For leases with initial terms greater than one year, right-of-use assets are reported on the balance sheet. Certain leases contain options to extend the lease term for up to five years . Some leases give us the option to terminate, for a penalty or at the lessor's discretion. Leases with variable payments are primarily based on adjustments for inflation over the term of the lease based on a contractually defined index. Certain ATM leases include variable payments based on volume of transactions. Operating lease expense is recognized in "net occupancy" and "equipment" on the income statement. The components of lease expense are summarized as follows: in millions Three months ended June 30, 2019 Six months ended June 30, 2019 Operating lease cost $ 34 $ 68 Finance lease cost: Amortization of right-of-use assets 1 1 Variable lease cost 6 11 Total lease cost (a), (b) $ 41 $ 80 (a) Interest on lease liabilities for finance leases was less than $1 million for the three and six months ended June 30, 2019 . (b) Short-term lease cost was less than less than $1 million for the three and six months ended June 30, 2019 . Cash flows related to leases are summarized as follows: in millions Three months ended June 30, 2019 Six months ended June 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: (a) Operating cash flows from operating leases $ 37 $ 73 Financing cash flows from finance leases 1 1 Right-of-use assets obtained in exchange for lease obligations: (b) Operating leases $ 16 $ 44 (a) Operating cash flows from finance leases were less than $1 million for the three and six months ended June 30, 2019 . (b) There were no right-of-use assets obtained in exchange for finance lease obligations for the three and six months ended June 30, 2019 . Additional balance sheet information related to leases is summarized as follows: in millions Balance sheet classification June 30, 2019 Operating lease assets Accrued income and other assets $ 695 Operating lease liabilities Accrued expense and other liabilities 775 Finance leases: Property and equipment, gross Premises and equipment 28 Accumulated depreciation Premises and equipment (16 ) Property and equipment, net 12 Finance lease liabilities Long-term debt 15 Information pertaining to the lease term and weighted-average discount rate is summarized as follows: June 30, 2019 Weighted-average remaining lease term: Operating leases 7.8 Finance leases 6.44 Weighted-average discount rate: Operating leases 3.28 % Finance leases 3.90 % Maturities of lease liabilities are summarized as follows: in millions Operating Leases Finance Leases Total 2019 $ 72 $ 2 $ 74 2020 141 3 144 2021 127 3 130 2022 111 3 114 2023 95 2 97 Thereafter 339 5 344 Total lease payments 885 18 903 Less imputed interest 110 3 113 Total $ 775 $ 15 $ 790 Lessor Equipment Leasing Leases may have fixed or floating rate terms. Variable payments are based on an index or other specified rate and are included in rental payments. Certain leases contain an option to extend the lease term or the option to terminate at the discretion of the lessee. Under certain conditions, lease agreements may also contain the option for a lessee to purchase the underlying asset. Interest income from sales-type and direct financing leases is recognized in "interest income — loans" on the statement of income. Income related to operating leases is recognized in “operating lease income and other leasing gains” on the income statement. The components of equipment leasing income are summarized in the table below: in millions Three months ended June 30, 2019 Six months ended June 30, 2019 Sales-type and direct financing leases Interest income on lease receivable $ 31 $ 61 Interest income related to accretion of unguaranteed residual asset 3 6 Interest income on deferred fees and costs — — Total sales-type and direct financing lease income 34 67 Operating leases Operating lease income related to lease payments 33 66 Other operating leasing gains 11 15 Total operating lease income and other leasing gains 44 81 Total lease income $ 78 $ 148 Equipment leasing receivables relate to sales-type and direct financing leases. The composition of the net investment in sales-type and direct financing leases is as follows: in millions June 30, 2019 Lease receivables $ 3,689 Unearned income (345 ) Unguaranteed residual value 430 Deferred fees and costs 17 Net investment in sales-type and direct financing leases $ 3,791 The residual value component of a lease represents the fair value of the leased asset at the end of the lease term. We rely on industry data, historical experience, independent appraisals and the experience of the equipment leasing asset management team to value lease residuals. Relationships with a number of equipment vendors give the asset management team insight into the life cycle of the leased equipment, pending product upgrades and competing products. Effective January 1, 2019, as a result of the implementation of ASU 2016-02, Key will assess net investments in leases, including residual values, for impairment and recognize any impairment losses in accordance with the impairment guidance for financial instruments. The carrying amount of residual assets covered by residual value guarantees was $289 million at June 30, 2019 . At June 30, 2019 , minimum future lease payments to be received for sales-type and direct financing leases are as follows: in millions Sales-type and direct financing lease payments 2019 $ 640 2020 1,008 2021 731 2022 493 2023 318 Thereafter 499 Total lease payments $ 3,689 At June 30, 2019 , minimum future lease payments to be received for operating leases are as follows: in millions Operating lease payments 2019 $ 64 2020 123 2021 106 2022 90 2023 75 Thereafter 220 Total lease payments $ 678 The carrying amount of operating lease assets at June 30, 2019 , was $948 million . |
Leases | 9. Leases As a lessee, we enter into leases of land, buildings and equipment. Our real estate leases primarily relate to bank branches and office space. The leases of equipment principally relate to technology assets for data processing and data storage. As a lessor, we primarily provide financing through our equipment leasing business. Lessee Our leases are classified as either operating or financing and have remaining terms ranging from 1 to 20 years with the exception of certain ground leases that have terms over 30 years. Leases with an initial term of less than 1 year are not recorded on the balance sheet. The related expense is recognized on a straight-line basis over the lease term. For leases with initial terms greater than one year, right-of-use assets are reported on the balance sheet. Certain leases contain options to extend the lease term for up to five years . Some leases give us the option to terminate, for a penalty or at the lessor's discretion. Leases with variable payments are primarily based on adjustments for inflation over the term of the lease based on a contractually defined index. Certain ATM leases include variable payments based on volume of transactions. Operating lease expense is recognized in "net occupancy" and "equipment" on the income statement. The components of lease expense are summarized as follows: in millions Three months ended June 30, 2019 Six months ended June 30, 2019 Operating lease cost $ 34 $ 68 Finance lease cost: Amortization of right-of-use assets 1 1 Variable lease cost 6 11 Total lease cost (a), (b) $ 41 $ 80 (a) Interest on lease liabilities for finance leases was less than $1 million for the three and six months ended June 30, 2019 . (b) Short-term lease cost was less than less than $1 million for the three and six months ended June 30, 2019 . Cash flows related to leases are summarized as follows: in millions Three months ended June 30, 2019 Six months ended June 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: (a) Operating cash flows from operating leases $ 37 $ 73 Financing cash flows from finance leases 1 1 Right-of-use assets obtained in exchange for lease obligations: (b) Operating leases $ 16 $ 44 (a) Operating cash flows from finance leases were less than $1 million for the three and six months ended June 30, 2019 . (b) There were no right-of-use assets obtained in exchange for finance lease obligations for the three and six months ended June 30, 2019 . Additional balance sheet information related to leases is summarized as follows: in millions Balance sheet classification June 30, 2019 Operating lease assets Accrued income and other assets $ 695 Operating lease liabilities Accrued expense and other liabilities 775 Finance leases: Property and equipment, gross Premises and equipment 28 Accumulated depreciation Premises and equipment (16 ) Property and equipment, net 12 Finance lease liabilities Long-term debt 15 Information pertaining to the lease term and weighted-average discount rate is summarized as follows: June 30, 2019 Weighted-average remaining lease term: Operating leases 7.8 Finance leases 6.44 Weighted-average discount rate: Operating leases 3.28 % Finance leases 3.90 % Maturities of lease liabilities are summarized as follows: in millions Operating Leases Finance Leases Total 2019 $ 72 $ 2 $ 74 2020 141 3 144 2021 127 3 130 2022 111 3 114 2023 95 2 97 Thereafter 339 5 344 Total lease payments 885 18 903 Less imputed interest 110 3 113 Total $ 775 $ 15 $ 790 Lessor Equipment Leasing Leases may have fixed or floating rate terms. Variable payments are based on an index or other specified rate and are included in rental payments. Certain leases contain an option to extend the lease term or the option to terminate at the discretion of the lessee. Under certain conditions, lease agreements may also contain the option for a lessee to purchase the underlying asset. Interest income from sales-type and direct financing leases is recognized in "interest income — loans" on the statement of income. Income related to operating leases is recognized in “operating lease income and other leasing gains” on the income statement. The components of equipment leasing income are summarized in the table below: in millions Three months ended June 30, 2019 Six months ended June 30, 2019 Sales-type and direct financing leases Interest income on lease receivable $ 31 $ 61 Interest income related to accretion of unguaranteed residual asset 3 6 Interest income on deferred fees and costs — — Total sales-type and direct financing lease income 34 67 Operating leases Operating lease income related to lease payments 33 66 Other operating leasing gains 11 15 Total operating lease income and other leasing gains 44 81 Total lease income $ 78 $ 148 Equipment leasing receivables relate to sales-type and direct financing leases. The composition of the net investment in sales-type and direct financing leases is as follows: in millions June 30, 2019 Lease receivables $ 3,689 Unearned income (345 ) Unguaranteed residual value 430 Deferred fees and costs 17 Net investment in sales-type and direct financing leases $ 3,791 The residual value component of a lease represents the fair value of the leased asset at the end of the lease term. We rely on industry data, historical experience, independent appraisals and the experience of the equipment leasing asset management team to value lease residuals. Relationships with a number of equipment vendors give the asset management team insight into the life cycle of the leased equipment, pending product upgrades and competing products. Effective January 1, 2019, as a result of the implementation of ASU 2016-02, Key will assess net investments in leases, including residual values, for impairment and recognize any impairment losses in accordance with the impairment guidance for financial instruments. The carrying amount of residual assets covered by residual value guarantees was $289 million at June 30, 2019 . At June 30, 2019 , minimum future lease payments to be received for sales-type and direct financing leases are as follows: in millions Sales-type and direct financing lease payments 2019 $ 640 2020 1,008 2021 731 2022 493 2023 318 Thereafter 499 Total lease payments $ 3,689 At June 30, 2019 , minimum future lease payments to be received for operating leases are as follows: in millions Operating lease payments 2019 $ 64 2020 123 2021 106 2022 90 2023 75 Thereafter 220 Total lease payments $ 678 The carrying amount of operating lease assets at June 30, 2019 , was $948 million . |
Leases | 9. Leases As a lessee, we enter into leases of land, buildings and equipment. Our real estate leases primarily relate to bank branches and office space. The leases of equipment principally relate to technology assets for data processing and data storage. As a lessor, we primarily provide financing through our equipment leasing business. Lessee Our leases are classified as either operating or financing and have remaining terms ranging from 1 to 20 years with the exception of certain ground leases that have terms over 30 years. Leases with an initial term of less than 1 year are not recorded on the balance sheet. The related expense is recognized on a straight-line basis over the lease term. For leases with initial terms greater than one year, right-of-use assets are reported on the balance sheet. Certain leases contain options to extend the lease term for up to five years . Some leases give us the option to terminate, for a penalty or at the lessor's discretion. Leases with variable payments are primarily based on adjustments for inflation over the term of the lease based on a contractually defined index. Certain ATM leases include variable payments based on volume of transactions. Operating lease expense is recognized in "net occupancy" and "equipment" on the income statement. The components of lease expense are summarized as follows: in millions Three months ended June 30, 2019 Six months ended June 30, 2019 Operating lease cost $ 34 $ 68 Finance lease cost: Amortization of right-of-use assets 1 1 Variable lease cost 6 11 Total lease cost (a), (b) $ 41 $ 80 (a) Interest on lease liabilities for finance leases was less than $1 million for the three and six months ended June 30, 2019 . (b) Short-term lease cost was less than less than $1 million for the three and six months ended June 30, 2019 . Cash flows related to leases are summarized as follows: in millions Three months ended June 30, 2019 Six months ended June 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: (a) Operating cash flows from operating leases $ 37 $ 73 Financing cash flows from finance leases 1 1 Right-of-use assets obtained in exchange for lease obligations: (b) Operating leases $ 16 $ 44 (a) Operating cash flows from finance leases were less than $1 million for the three and six months ended June 30, 2019 . (b) There were no right-of-use assets obtained in exchange for finance lease obligations for the three and six months ended June 30, 2019 . Additional balance sheet information related to leases is summarized as follows: in millions Balance sheet classification June 30, 2019 Operating lease assets Accrued income and other assets $ 695 Operating lease liabilities Accrued expense and other liabilities 775 Finance leases: Property and equipment, gross Premises and equipment 28 Accumulated depreciation Premises and equipment (16 ) Property and equipment, net 12 Finance lease liabilities Long-term debt 15 Information pertaining to the lease term and weighted-average discount rate is summarized as follows: June 30, 2019 Weighted-average remaining lease term: Operating leases 7.8 Finance leases 6.44 Weighted-average discount rate: Operating leases 3.28 % Finance leases 3.90 % Maturities of lease liabilities are summarized as follows: in millions Operating Leases Finance Leases Total 2019 $ 72 $ 2 $ 74 2020 141 3 144 2021 127 3 130 2022 111 3 114 2023 95 2 97 Thereafter 339 5 344 Total lease payments 885 18 903 Less imputed interest 110 3 113 Total $ 775 $ 15 $ 790 Lessor Equipment Leasing Leases may have fixed or floating rate terms. Variable payments are based on an index or other specified rate and are included in rental payments. Certain leases contain an option to extend the lease term or the option to terminate at the discretion of the lessee. Under certain conditions, lease agreements may also contain the option for a lessee to purchase the underlying asset. Interest income from sales-type and direct financing leases is recognized in "interest income — loans" on the statement of income. Income related to operating leases is recognized in “operating lease income and other leasing gains” on the income statement. The components of equipment leasing income are summarized in the table below: in millions Three months ended June 30, 2019 Six months ended June 30, 2019 Sales-type and direct financing leases Interest income on lease receivable $ 31 $ 61 Interest income related to accretion of unguaranteed residual asset 3 6 Interest income on deferred fees and costs — — Total sales-type and direct financing lease income 34 67 Operating leases Operating lease income related to lease payments 33 66 Other operating leasing gains 11 15 Total operating lease income and other leasing gains 44 81 Total lease income $ 78 $ 148 Equipment leasing receivables relate to sales-type and direct financing leases. The composition of the net investment in sales-type and direct financing leases is as follows: in millions June 30, 2019 Lease receivables $ 3,689 Unearned income (345 ) Unguaranteed residual value 430 Deferred fees and costs 17 Net investment in sales-type and direct financing leases $ 3,791 The residual value component of a lease represents the fair value of the leased asset at the end of the lease term. We rely on industry data, historical experience, independent appraisals and the experience of the equipment leasing asset management team to value lease residuals. Relationships with a number of equipment vendors give the asset management team insight into the life cycle of the leased equipment, pending product upgrades and competing products. Effective January 1, 2019, as a result of the implementation of ASU 2016-02, Key will assess net investments in leases, including residual values, for impairment and recognize any impairment losses in accordance with the impairment guidance for financial instruments. The carrying amount of residual assets covered by residual value guarantees was $289 million at June 30, 2019 . At June 30, 2019 , minimum future lease payments to be received for sales-type and direct financing leases are as follows: in millions Sales-type and direct financing lease payments 2019 $ 640 2020 1,008 2021 731 2022 493 2023 318 Thereafter 499 Total lease payments $ 3,689 At June 30, 2019 , minimum future lease payments to be received for operating leases are as follows: in millions Operating lease payments 2019 $ 64 2020 123 2021 106 2022 90 2023 75 Thereafter 220 Total lease payments $ 678 The carrying amount of operating lease assets at June 30, 2019 , was $948 million . |
Variable Interest Entities
Variable Interest Entities | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities | 10. Variable Interest Entities Our significant VIEs are summarized below. Additional information pertaining to the criteria used in determining if an entity is a VIE is included in Note 12 (“ Variable Interest Entities “) beginning on page 142 of our 2018 Form 10-K. LIHTC investments. We had $1.4 billion and $1.4 billion of investments in LIHTC operating partnerships at June 30, 2019 , and December 31, 2018 , respectively. These investments are recorded in “accrued income and other assets” on our balance sheet. We do not have any loss reserves recorded related to these investments because we believe the likelihood of any loss to be remote. For all legally binding, unfunded equity commitments, we increase our recognized investment and recognize a liability. As of June 30, 2019 , and December 31, 2018 , we had liabilities of $489 million and $532 million , respectively, related to investments in qualified affordable housing projects, which are recorded in “accrued expenses and other liabilities” on our balance sheet. We continue to invest in these LIHTC operating partnerships. The assets and liabilities presented in the table below convey the size of KCDC’s direct and indirect investments at June 30, 2019 , and December 31, 2018 . As these investments represent unconsolidated VIEs, the assets and liabilities of the investments themselves are not recorded on our balance sheet. Additional information pertaining to our LIHTC investments is included in Note 12 (“ Variable Interest Entities “) beginning on page 142 of our 2018 Form 10-K. Unconsolidated VIEs in millions Total Assets Total Liabilities Maximum Exposure to Loss June 30, 2019 LIHTC investments $ 6,276 $ 2,588 $ 1,739 December 31, 2018 LIHTC investments $ 5,932 $ 2,569 $ 1,740 We amortize our LIHTC investments over the period that we expect to receive the tax benefits. During the first six months of 2019 , we recognized $89 million of amortization and $92 million of tax credits associated with these investments within “income taxes” on our income statement. During the first six months of 2018 , we recognized $83 million of amortization and $81 million of tax credits associated with these investments within “income taxes” on our income statement. Principal investments. Our maximum exposure to loss associated with indirect principal investments consists of the investments’ fair value plus any unfunded equity commitments. The fair value of our indirect principal investments totaled $76 million and $96 million at June 30, 2019 , and December 31, 2018 , respectively. These investments are recorded in “other investments” on our balance sheet. The table below reflects the size of the private equity funds in which we were invested as well as our maximum exposure to loss in connection with these investments at June 30, 2019 , and December 31, 2018 . Unconsolidated VIEs in millions Total Assets Total Liabilities Maximum Exposure to Loss June 30, 2019 Indirect investments $ 15,018 $ 286 $ 100 December 31, 2018 Indirect investments $ 19,659 $ 376 $ 122 Through our principal investing entities, we have formed and funded operating entities that provide management and other related services to our investment company funds, which directly invest in portfolio companies. These entities had no assets at June 30, 2019 and December 31, 2018 that can be used to settle the entities’ obligations. The entities had no liabilities at June 30, 2019 and December 31, 2018 , and other equity investors have no recourse to our general credit. Additional information on our indirect and direct principal investments is provided in Note 5 (“ Fair Value Measurements ”) and in Note 12 (“ Variable Interest Entities “) beginning on page 142 of our 2018 Form 10-K. Other unconsolidated VIEs. We are involved with other various entities in the normal course of business which we have determined to be VIEs. We have determined that we are not the primary beneficiary of these VIEs because we do not have the power to direct the activities that most significantly impact their economic performance. Our assets associated with these unconsolidated VIEs totaled $287 million at June 30, 2019 , and $248 million at December 31, 2018 . These assets are recorded in “accrued income and other assets,” “other investments,” “securities available for sale,” and “loans, net of unearned income” on our balance sheet. We had liabilities totaling $2 million and $2 million associated with these unconsolidated VIEs at June 30, 2019 , and December 31, 2018 , respectively. Additional information pertaining to our other unconsolidated VIEs is included in Note 12 (“ Variable Interest Entities “) under the heading “Other unconsolidated VIEs” on page 144 of our 2018 Form 10-K. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 11. Income Taxes Income Tax Provision In accordance with the applicable accounting guidance, the principal method established for computing the provision for income taxes in interim periods requires us to make our best estimate of the effective tax rate expected to be applicable for the full year. This estimated effective tax rate is then applied to interim consolidated pre-tax operating income to determine the interim provision for income taxes. The effective tax rate, which is the provision for income taxes as a percentage of income before income taxes, was 16.8% for the second quarter of 2019 and 17.6% for the second quarter of 2018 . The effective tax rates are less than our combined federal and state statutory tax rate of 23.7% , primarily due to income from investments in tax-advantaged assets such as corporate-owned life insurance and credits associated with renewable energy and low-income housing investments. Deferred Tax Asset At June 30, 2019 , we had a net deferred tax liability of $101 million , compared to a net deferred tax asset of $222 million at December 31, 2018 , included in “accrued income and other assets” on the balance sheet. To determine the amount of deferred tax assets that are more likely than not to be realized, and therefore recorded, we conduct a quarterly assessment of all available evidence. This evidence includes, but is not limited to, taxable income in prior periods, projected future taxable income, and projected future reversals of deferred tax items. These assessments involve a degree of subjectivity and may undergo change. Based on these criteria, we had a valuation allowance of $11 million at June 30, 2019 , and $11 million at December 31, 2018 . The valuation allowance is associated with certain state net operating loss carryforwards, state credit carryforwards, and federal and state capital loss carryforwards. Unrecognized Tax Benefits As permitted under the applicable accounting guidance for income taxes, it is our policy to recognize interest and penalties related to unrecognized tax benefits in “income tax expense.” At June 30, 2019 , Key’s unrecognized tax benefits were $37 million . Pre-1988 Bank Reserves Acquired in a Business Combination Retained earnings of KeyBank included approximately $92 million of allocated bad debt deductions for which no income taxes have been recorded. Under current federal law, these reserves are subject to recapture into taxable income if KeyBank, or any successor, fails to maintain its bank status under the Internal Revenue Code or makes non-dividend distributions or distributions greater than its accumulated earnings and profits. No deferred tax liability has been established as these events are not expected to occur in the foreseeable future. |
Acquisitions, Divestiture, and
Acquisitions, Divestiture, and Discontinued Operations | 6 Months Ended |
Jun. 30, 2019 | |
Business Combinations [Abstract] | |
Acquisitions, Divestiture, and Discontinued Operations | 12. Acquisitions, Divestiture, and Discontinued Operations Acquisitions Laurel Road Digital Lending Business. On April 3, 2019, KeyBank acquired Laurel Road's digital lending business from Laurel Road Bank. Laurel Road Bank's three bank branches located in southeast Connecticut were not part of this transaction. Through the acquisition, KeyBank expects to enhance its digital capabilities with state-of-the-art, customer-centric technology and to leverage Laurel Road's proven ability to attract and serve professional millennial clients. The acquisition is accounted for as a business combination. During the second quarter of 2019, we recognized provisional identifiable intangible assets with an estimated fair value of $37 million . We also recognized provisional goodwill of $148 million in connection with this acquisition. These fair value estimates represent our best estimate of fair value and are expected to be finalized over a period of up to one year from the acquisition date. Divestiture Key Insurance & Benefits Services, Inc. On March 29, 2018, we announced that we had entered into a definitive agreement to sell KIBS to USI Insurance Services. We acquired KIBS as a part of the 2016 merger with First Niagara. We completed the sale to USI Insurance Services on May 4, 2018. At the close of the sale, we recognized a $73 million net gain on sale. In the third quarter of 2018, we recognized an additional $5 million gain upon the finalization of the purchase price. Discontinued operations Discontinued operations primarily includes our government-guaranteed education lending business. At June 30, 2019 , and December 31, 2018 , approximately $964 million and $1.1 billion , respectively, of education loans are included in discontinued assets on the consolidated balance sheets. Net interest income after provision for credit losses for this business is not material and is included in income (loss) from discontinued operations, net of taxes on the consolidated statements of income. |
Securities Financing Activities
Securities Financing Activities | 6 Months Ended |
Jun. 30, 2019 | |
Banking and Thrift [Abstract] | |
Securities Financing Activities | 13. Securities Financing Activities We enter into repurchase agreements to finance overnight customer sweep deposits. We also enter into repurchase and reverse repurchase agreements to settle other securities obligations. We account for these securities financing agreements as collateralized financing transactions. Repurchase and reverse repurchase agreements are recorded on the balance sheet at the amounts for which the securities will be subsequently sold or repurchased. Securities borrowed transactions are recorded on the balance sheet at the amounts of cash collateral advanced. While our securities financing agreements incorporate a right of set off, the assets and liabilities are reported on a gross basis. Reverse repurchase agreements and securities borrowed transactions are included in “short-term investments” on the balance sheet; repurchase agreements are included in “federal funds purchased and securities sold under repurchase agreements.” Additional information regarding our securities financing activities, including risk management activities, is provided in Note 16 (“ Securities Financing Activities ”) beginning on page 148 of our 2018 Form 10-K. The following table summarizes our securities financing agreements at June 30, 2019 , and December 31, 2018 : June 30, 2019 December 31, 2018 in millions Gross Amount Presented in Balance Sheet Netting Adjustments (a) Collateral (b) Net Amounts Gross Amount Presented in Balance Sheet Netting Adjustments (a) Collateral (b) Net Amounts Offsetting of financial assets: Reverse repurchase agreements $ 210 $ (6 ) $ (204 ) — $ 14 $ (14 ) — — Total $ 210 $ (6 ) $ (204 ) — $ 14 $ (14 ) — — Offsetting of financial liabilities: Repurchase agreements (c) $ 161 $ (6 ) $ (155 ) — $ 319 $ (14 ) $ (305 ) — Total $ 161 $ (6 ) $ (155 ) — $ 319 $ (14 ) $ (305 ) — (a) Netting adjustments take into account the impact of master netting agreements that allow us to settle with a single counterparty on a net basis. (b) These adjustments take into account the impact of bilateral collateral agreements that allow us to offset the net positions with the related collateral. The application of collateral cannot reduce the net position below zero. Therefore, excess collateral, if any, is not reflected above. (c) Repurchase agreements are collateralized by mortgaged-backed agency securities and are contracted on an overnight or continuous basis. As of June 30, 2019 , the carrying amount of assets pledged as collateral against repurchase agreements totaled $211 million . Assets pledged as collateral are reported in “securities available for sale” and “held-to-maturity securities” on our balance sheet. At June 30, 2019 , the liabilities associated with collateral pledged were solely comprised of customer sweep financing activity and had a carrying value of $155 million . The collateral pledged under customer sweep repurchase agreements is posted to a third-party custodian and cannot be sold or repledged by the secured party. The risk related to a decline in the market value of collateral pledged is minimal given the collateral's high credit quality and the overnight duration of the repurchase agreements. |
Employee Benefits
Employee Benefits | 6 Months Ended |
Jun. 30, 2019 | |
Retirement Benefits [Abstract] | |
Employee Benefits | 14. Employee Benefits Pension Plans The components of net pension cost (benefit) for all funded and unfunded plans are recorded in “other expense” and are summarized in the following table. For more information on our Pension Plans and Other Postretirement Benefit Plans, see Note 17 (“ Employee Benefits ”) beginning on page 151 of our 2018 Form 10-K. Three months ended June 30, Six months ended June 30, in millions 2019 2018 2019 2018 Interest cost on PBO $ 12 $ 10 $ 23 $ 20 Expected return on plan assets (12 ) (13 ) (24 ) (26 ) Amortization of losses 3 4 7 8 Net pension cost $ 3 $ 1 $ 6 $ 2 |
Trust Preferred Securities Issu
Trust Preferred Securities Issued by Unconsolidated Subsidiaries | 6 Months Ended |
Jun. 30, 2019 | |
Banking and Thrift [Abstract] | |
Trust Preferred Securities Issued by Unconsolidated Subsidiaries | 15. Trust Preferred Securities Issued by Unconsolidated Subsidiaries We own the outstanding common stock of business trusts formed by us that issued corporation-obligated, mandatorily redeemable, trust preferred securities. The trusts used the proceeds from the issuance of their trust preferred securities and common stock to buy debentures issued by KeyCorp. These debentures are the trusts’ only assets; the interest payments from the debentures finance the distributions paid on the mandatorily redeemable trust preferred securities. The outstanding common stock of these business trusts is recorded in “other investments” on our balance sheet. We unconditionally guarantee the following payments or distributions on behalf of the trusts: • required distributions on the trust preferred securities; • the redemption price when a capital security is redeemed; and • the amounts due if a trust is liquidated or terminated. The Regulatory Capital Rules, discussed in “Supervision and regulation” in Item 2 of this report, require us to treat our mandatorily redeemable trust preferred securities as Tier 2 capital. The trust preferred securities, common stock, and related debentures are summarized as follows: dollars in millions Trust Preferred Securities, Net of Discount (a) Common Stock Principal Amount of Debentures, Net of Discount (b) Interest Rate of Trust Preferred Securities and Debentures (c) Maturity of Trust Preferred Securities and Debentures June 30, 2019 KeyCorp Capital I $ 156 $ 6 $ 162 3.332 % 2028 KeyCorp Capital II 106 4 110 6.875 2029 KeyCorp Capital III 138 4 142 7.750 2029 HNC Statutory Trust III 19 1 20 3.924 2035 Willow Grove Statutory Trust I 18 1 19 3.720 2036 HNC Statutory Trust IV 16 1 17 3.863 2037 Westbank Capital Trust II 7 — 7 4.577 2034 Westbank Capital Trust III 7 — 7 4.577 2034 Total $ 467 $ 17 $ 484 5.536 % — December 31, 2018 $ 454 $ 17 $ 471 5.447 % — (a) The trust preferred securities must be redeemed when the related debentures mature, or earlier if provided in the governing indenture. Each issue of trust preferred securities carries an interest rate identical to that of the related debenture. Certain trust preferred securities include basis adjustments related to fair value hedges totaling $58 million at June 30, 2019 , and $46 million at December 31, 2018 . See Note 7 (“ Derivatives and Hedging Activities ”) for an explanation of fair value hedges. (b) We have the right to redeem these debentures. If the debentures purchased by KeyCorp Capital I, HNC Statutory Trust III, Willow Grove Statutory Trust I, HNC Statutory Trust IV, Westbank Capital Trust II, or Westbank Capital Trust III are redeemed before they mature, the redemption price will be the principal amount, plus any accrued but unpaid interest. If the debentures purchased by KeyCorp Capital II or KeyCorp Capital III are redeemed before they mature, the redemption price will be the greater of: (i) the principal amount, plus any accrued but unpaid interest, or (ii) the sum of the present values of principal and interest payments discounted at the Treasury Rate (as defined in the applicable indenture), plus 20 basis points for KeyCorp Capital II or 25 basis points for KeyCorp Capital III, or 50 basis points in the case of redemption upon either a tax or a capital treatment event for either KeyCorp Capital II or KeyCorp Capital III, plus any accrued but unpaid interest. The principal amount of certain debentures includes basis adjustments related to fair value hedges totaling $58 million at June 30, 2019 , and $46 million at December 31, 2018 . See Note 7 (“ Derivatives and Hedging Activities ”) for an explanation of fair value hedges. The principal amount of debentures, net of discounts, is included in “long-term debt” on the balance sheet. (c) The interest rates for the trust preferred securities issued by KeyCorp Capital II and KeyCorp Capital III are fixed. The trust preferred securities issued by KeyCorp Capital I have a floating interest rate, equal to three-month LIBOR plus 74 basis points, that reprices quarterly. The trust preferred securities issued by HNC Statutory Trust III have a floating interest rate, equal to three-month LIBOR plus 140 basis points, that reprices quarterly. The trust preferred securities issued by Willow Grove Statutory Trust I have a floating interest rate, equal to three-month LIBOR plus 131 basis points, that reprices quarterly. The trust preferred securities issued by HNC Statutory Trust IV have a floating interest rate, equal to three-month LIBOR plus 128 basis points, that reprices quarterly. The trust preferred securities issued by Westbank Capital Trust II and Westbank Capital Trust III each have a floating interest rate, equal to three-month LIBOR plus 219 basis points, that reprices quarterly. The total interest rates are weighted-average rates. |
Contingent Liabilities and Guar
Contingent Liabilities and Guarantees | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingent Liabilities and Guarantees | 16. Contingent Liabilities and Guarantees Legal Proceedings Litigation. From time to time, in the ordinary course of business, we and our subsidiaries are subject to various litigation, investigations, and administrative proceedings. Private, civil litigations may range from individual actions involving a single plaintiff to putative class action lawsuits with potentially thousands of class members. Investigations may involve both formal and informal proceedings, by both government agencies and self-regulatory bodies. These matters may involve claims for substantial monetary relief. At times, these matters may present novel claims or legal theories. Due to the complex nature of these various other matters, it may be years before some matters are resolved. While it is impossible to ascertain the ultimate resolution or range of financial liability, based on information presently known to us, we do not believe there is any matter to which we are a party, or involving any of our properties that, individually or in the aggregate, would reasonably be expected to have a material adverse effect on our financial condition. We continually monitor and reassess the potential materiality of these litigation matters. We note, however, that in light of the inherent uncertainty in legal proceedings there can be no assurance that the ultimate resolution will not exceed established reserves. As a result, the outcome of a particular matter, or a combination of matters, may be material to our results of operations for a particular period, depending upon the size of the loss or our income for that particular period. Guarantees We are a guarantor in various agreements with third parties. The following table shows the types of guarantees that we had outstanding at June 30, 2019 . Information pertaining to the basis for determining the liabilities recorded in connection with these guarantees is included in Note 1 (“ Summary of Significant Accounting Policies ”) under the heading “Guarantees” beginning on page 106 of our 2018 Form 10-K. June 30, 2019 Maximum Potential Undiscounted Future Payments Liability Recorded in millions Financial guarantees: Standby letters of credit $ 3,086 $ 73 Recourse agreement with FNMA 4,392 6 Residential mortgage reserve 1,617 6 Written put options (a) 2,854 49 Total $ 11,949 $ 134 (a) The maximum potential undiscounted future payments represent notional amounts of derivatives qualifying as guarantees. We determine the payment/performance risk associated with each type of guarantee described below based on the probability that we could be required to make the maximum potential undiscounted future payments shown in the preceding table. We use a scale of low ( 0% to 30% probability of payment), moderate (greater than 30% to 70% probability of payment), or high (greater than 70% probability of payment) to assess the payment/performance risk, and have determined that the payment/performance risk associated with each type of guarantee outstanding at June 30, 2019 , is low. Information pertaining to the nature of each of the guarantees listed below is included in Note 21 (“ Commitments, Contingent Liabilities, and Guarantees ”) under the heading “Guarantees” beginning on page 163 of our 2018 Form 10-K. Standby letters of credit. At June 30, 2019 , our standby letters of credit had a remaining weighted-average life of two years , with remaining actual lives ranging from less than one year to as many as 16 years . Recourse agreement with FNMA. At June 30, 2019 , the outstanding commercial mortgage loans in this program had a weighted-average remaining term of 7.8 years , and the unpaid principal balance outstanding of loans sold by us as a participant was $15.1 billion . The maximum potential amount of undiscounted future payments that we could be required to make under this program, as shown in the preceding table, is equal to approximately 29% of the principal balance of loans outstanding at June 30, 2019 . Residential Mortgage Banking. At June 30, 2019 , the unpaid principal balance outstanding of loans sold by us in this program was $5.4 billion . The risk assessment is low for the residential mortgage product. The maximum potential amount of undiscounted future payments that we could be required to make under this program, as shown in the preceding table, is equal to approximately 30% of the principal balance of loans outstanding at June 30, 2019 . Our liability for estimated repurchase obligations on loans sold, which is included in other liabilities on our balance sheet, was $6 million at June 30, 2019 . For more information on our residential mortgages, see Note 8 (“ Mortgage Servicing Assets “). Written put options. At June 30, 2019 , our written put options had an average life of three years . These written put options are accounted for as derivatives at fair value, as further discussed in Note 7 (“ Derivatives and Hedging Activities ”). Written put options where the counterparty is a broker-dealer or bank are accounted for as derivatives at fair value but are not considered guarantees since these counterparties typically do not hold the underlying instruments. In addition, we are a purchaser and seller of credit derivatives, which are further discussed in Note 7 (“ Derivatives and Hedging Activities ”). Other Off-Balance Sheet Risk Other off-balance sheet risk stems from financial instruments that do not meet the definition of a guarantee as specified in the applicable accounting guidance, and from other relationships. Additional information pertaining to types other off-balance sheet risk is included in Note 21 (“ Commitments, Contingent Liabilities, and Guarantees ”) under the heading “Other Off-Balance Sheet Risk” on page 165 of our 2018 Form 10-K. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income | 17. Accumulated Other Comprehensive Income Our changes in AOCI for the three and six months ended June 30, 2019 , and June 30, 2018 , are as follows: in millions Unrealized gains (losses) on securities available for sale Unrealized gains (losses) on derivative financial instruments Foreign currency translation adjustment Net pension and postretirement benefit costs Total Balance at December 31, 2018 $ (373 ) $ (50 ) $ (14 ) $ (381 ) $ (818 ) Other comprehensive income before reclassification, net of income taxes 475 284 4 14 777 Amounts reclassified from AOCI, net of income taxes (a) — 34 — 5 39 Net current-period other comprehensive income, net of income taxes 475 318 4 19 816 Balance at June 30, 2019 $ 102 $ 268 $ (10 ) $ (362 ) $ (2 ) Balance at March 31, 2019 $ (189 ) $ 49 $ (11 ) $ (379 ) $ (530 ) Other comprehensive income before reclassification, net of income taxes 291 204 1 15 511 Amounts reclassified from AOCI, net of income taxes (a) — 15 — 2 17 Net current-period other comprehensive income, net of income taxes 291 219 1 17 528 Balance at June 30, 2019 $ 102 $ 268 $ (10 ) $ (362 ) $ (2 ) Balance at December 31, 2017 $ (311 ) $ (86 ) $ 9 $ (391 ) $ (779 ) Other comprehensive income before reclassification, net of income taxes (216 ) (100 ) (11 ) — (327 ) Amounts reclassified from AOCI, net of income taxes (a) — 20 — 6 26 Other amounts reclassified from AOCI, net of income taxes — — (5 ) — (5 ) Net current-period other comprehensive income, net of income taxes (216 ) (80 ) (16 ) 6 (306 ) Balance at June 30, 2018 $ (527 ) $ (166 ) $ (7 ) $ (385 ) $ (1,085 ) Balance at March 31, 2018 (461 ) $ (149 ) $ 7 $ (388 ) $ (991 ) Other comprehensive income before reclassification, net of income taxes (66 ) (35 ) (9 ) — (110 ) Amounts reclassified from AOCI, net of income taxes (a) — 18 — 3 21 Other amounts reclassified from AOCI, net of income taxes — — (5 ) — (5 ) Net current-period other comprehensive income, net of income taxes (66 ) (17 ) (14 ) 3 (94 ) Balance at June 30, 2018 $ (527 ) $ (166 ) $ (7 ) $ (385 ) $ (1,085 ) (a) See table below for details about these reclassifications. Our reclassifications out of AOCI for the three and six months ended June 30, 2019 , and June 30, 2018 , are as follows: Six months ended June 30, Affected Line Item in the Statement Where Net Income is Presented in millions 2019 2018 Unrealized gains (losses) on derivative financial instruments Interest rate $ (43 ) $ (27 ) Interest income — Loans Interest rate (1 ) — Interest expense — Long-term debt (44 ) (27 ) Income (loss) from continuing operations before income taxes (10 ) (7 ) Income taxes $ (34 ) $ (20 ) Income (loss) from continuing operations Net pension and postretirement benefit costs Amortization of losses $ (7 ) $ (8 ) Personnel expense (7 ) (8 ) Income (loss) from continuing operations before income taxes (2 ) (2 ) Income taxes $ (5 ) $ (6 ) Income (loss) from continuing operations Three months ended June 30, Affected Line Item in the Statement Where Net Income is Presented in millions 2019 2018 Unrealized gains (losses) on derivative financial instruments Interest rate $ (19 ) $ (25 ) Interest income — Loans Interest rate — 1 Interest expense — Long-term debt (19 ) (24 ) Income (loss) from continuing operations before income taxes (4 ) (6 ) Income taxes $ (15 ) (18 ) Income (loss) from continuing operations Net pension and postretirement benefit costs Amortization of losses $ (3 ) (4 ) Personnel expense (3 ) (4 ) Income (loss) from continuing operations before income taxes (1 ) (1 ) Income taxes $ (2 ) $ (3 ) Income (loss) from continuing operations |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Shareholder' Equity | 18. Shareholders' Equity Comprehensive Capital Plan As previously reported and as authorized by the Board and pursuant to our 2018 capital plan (which was effective through the second quarter of 2019) submitted and not objected to by the Federal Reserve, we have authority to repurchase up to $1.225 billion of our Common Shares. We completed $180 million of Common Share repurchases, including $179 million of Common Share repurchases in the open market and $1 million of Common Share repurchases related to employee equity compensation programs, in the second quarter of 2019 under this authorization. Consistent with our 2018 capital plan, the Board declared a quarterly dividend of $.17 per Common Share for the second quarter of 2019 . On April 18, 2019, we announced our 2019 capital plan. Share repurchases of up to $1.0 billion are included in the 2019 capital plan which is effective from the third quarter of 2019 through the second quarter of 2020. Our 2019 capital plan also includes a 9% increase in our Common Stock dividend to $.185 per Common Share, which was approved by our Board of Directors on July 17, 2019. Preferred Stock On April 29, 2019, we issued $450 million of depositary shares, each representing a 1/40th ownership interest in a share of our Fixed Rate Perpetual Noncumulative Series G Preferred Stock. 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 Second quarter 2019 dividends paid per depositary share Fixed-to-Floating Rate Perpetual Noncumulative Series D $ 525 21,000 $ 1 $ 25,000 1/25th $ 1,000 $ 12.50 Fixed-to-Floating Rate Perpetual Noncumulative Series E 500 500,000 1 1,000 1/40th 25 .382813 Fixed Rate Perpetual Noncumulative Series F 425 425,000 1 1,000 1/40th 25 .353125 Fixed Rate Perpetual Non-Cumulative Series G 450 450,000 1 1,000 1/40th 25 — |
Business Segment Reporting
Business Segment Reporting | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Business Segment Reporting | 19. Business Segment Reporting Key previously reported its results of operations through two reportable business segments, Key Community Bank and Key Corporate Bank. In the first quarter of 2019, Key underwent a company-wide organizational change, resulting in the realignment of its businesses into two reportable business segments, Consumer Bank and Commercial Bank, with the remaining operations that do not meet the criteria for disclosure as a separate reportable business recorded in Other. The new business segment structure aligns with how management reviews performance and makes decisions by client, segment and business unit. Prior period information was restated to conform to the new business segment structure. Additionally, goodwill was reallocated to the new segments on a relative fair value basis. On March 31, 2019, the Consumer Bank was allocated goodwill in the amount of $1.6 billion and the Commercial Bank was allocated goodwill in the amount of $912 million . The following is a description of the segments and their primary businesses at June 30, 2019 . Consumer Bank The Consumer Bank serves individuals and small businesses throughout our 15 -state branch footprint by offering a variety of deposit and investment products, personal finance and financial wellness services, lending, mortgage and home equity, student loan refinancing, credit card, treasury services, and business advisory services. The Consumer Bank also purchases retail auto sales contracts via a network of auto dealerships. The auto dealerships finance the sale of automobiles as the initial lender and then assign the contracts to us pursuant to dealer agreements. In addition, wealth management and investment services are offered to assist institutional, non-profit, and high-net-worth clients with their banking, trust, portfolio management, life insurance, charitable giving, and related needs. Commercial Bank The Commercial Bank is an aggregation of our Institutional and Commercial operating segments. The Commercial operating segment is a full-service corporate bank focused principally on serving the needs of middle market clients in seven industry sectors: consumer, energy, healthcare, industrial, public sector, real estate, and technology. The Commercial operating segment is also a significant servicer of commercial mortgage loans and a significant special servicer of CMBS. The Institutional operating segment delivers a broad suite of banking and capital markets products to its clients, including syndicated finance, debt and equity capital markets, commercial payments, equipment finance, commercial mortgage banking, derivatives, foreign exchange, financial advisory, and public finance. Other Other includes various corporate treasury activities such as management of our investment securities portfolio, long-term debt, short-term liquidity and funding activities, and balance sheet risk management, our principal investing unit, and various exit portfolios as well as reconciling items which primarily represents the unallocated portion of nonearning assets of corporate support functions. Charges related to the funding of these assets are part of net interest income and are allocated to the business segments through noninterest expense. Reconciling items also include intercompany eliminations and certain items that are not allocated to the business segments because they do not reflect their normal operations. The development and application of the methodologies that we use to allocate items among our business segments is a dynamic process. Accordingly, financial results may be revised periodically to reflect enhanced alignment of expense base allocations drivers, changes in the risk profile of a particular business, or changes in our organizational structure. The table below shows selected financial data for our business segments for the three- and six- month periods ended June 30, 2019 , and June 30, 2018 . Three months ended June 30, Consumer Bank Commercial Bank Other Total Key dollars in millions 2019 2018 2019 2018 2019 2018 2019 2018 SUMMARY OF OPERATIONS Net interest income (TE) $ 594 $ 574 $ 405 $ 418 $ (10 ) $ (5 ) $ 989 $ 987 Noninterest income 231 236 354 303 37 121 622 660 Total revenue (TE) (a) 825 810 759 721 27 116 1,611 1,647 Provision for credit losses 40 39 33 25 1 — 74 64 Depreciation and amortization expense 25 26 35 34 37 39 97 99 Other noninterest expense 535 543 346 357 41 (6 ) 922 894 Income (loss) from continuing operations before income taxes (TE) 225 202 345 305 (52 ) 83 518 590 Allocated income taxes and TE adjustments 53 47 62 49 (20 ) 15 95 111 Income (loss) from continuing operations 172 155 283 256 (32 ) 68 423 479 Income (loss) from discontinued operations, net of taxes — — — — 2 3 2 3 Net income (loss) 172 155 283 256 (30 ) 71 425 482 Less: Net income (loss) attributable to noncontrolling interests — — — — — — — — Net income (loss) attributable to Key $ 172 $ 155 $ 283 $ 256 $ (30 ) $ 71 $ 425 $ 482 AVERAGE BALANCES (b) Loans and leases $ 31,881 $ 31,276 $ 57,924 $ 56,175 $ 980 $ 1,193 $ 90,785 $ 88,644 Total assets (a) 35,469 34,495 65,907 63,948 41,259 37,935 142,635 136,378 Deposits 72,303 68,279 35,961 33,169 1,337 2,555 109,601 104,003 OTHER FINANCIAL DATA Net loan charge-offs (b) $ 40 $ 39 $ 23 $ 22 2 (1 ) $ 65 $ 60 Return on average allocated equity (b) 21.12 % 18.88 % 24.57 % 22.99 % (1.48 )% 3.75 % 10.26 % 12.78 % Return on average allocated equity 21.12 18.88 24.57 22.99 (1.39 ) 3.92 10.31 12.86 Average full-time equivalent employees (c) 9,440 10,067 2,260 2,467 5,506 5,842 17,206 18,376 (a) Substantially all revenue generated by our major business segments is derived from clients that reside in the United States. Substantially all long-lived assets, including premises and equipment, capitalized software, and goodwill held by our major business segments, are located in the United States. (b) From continuing operations. (c) The number of average full-time equivalent employees was not adjusted for discontinued operations. Six months ended June 30, Consumer Bank Commercial Bank Other Total Key dollars in millions 2019 2018 2019 2018 2019 2018 2019 2018 SUMMARY OF OPERATIONS Net interest income (TE) $ 1,185 $ 1,126 $ 806 $ 824 $ (17 ) $ (11 ) $ 1,974 $ 1,939 Noninterest income 445 457 655 636 58 168 1,158 1,261 Total revenue (TE) (a) 1,630 1,583 1,461 1,460 41 157 3,132 3,200 Provision for credit losses 85 73 49 54 2 (2 ) 136 125 Depreciation and amortization expense 48 53 65 69 72 81 185 203 Other noninterest expense 1,061 1,093 680 700 56 3 1,797 1,796 Income (loss) from continuing operations before income taxes (TE) 436 364 667 637 (89 ) 75 1,014 1,076 Allocated income taxes and TE adjustments 103 86 127 96 (45 ) (1 ) 185 181 Income (loss) from continuing operations 333 278 540 541 (44 ) 76 829 895 Income (loss) from discontinued operations, net of taxes — — — — 3 5 3 5 Net income (loss) 333 278 540 541 (41 ) 81 832 900 Less: Net income (loss) attributable to noncontrolling interests — — — — — — — — Net income (loss) attributable to Key $ 333 $ 278 $ 540 $ 541 $ (41 ) $ 81 $ 832 $ 900 AVERAGE BALANCES (b) Loans and leases $ 31,603 $ 31,409 $ 57,610 $ 55,210 $ 1,007 $ 1,171 $ 90,220 $ 87,790 Total assets (a) 35,103 34,638 65,405 62,865 40,877 38,148 141,385 135,651 Deposits 71,798 67,852 35,194 32,983 1,602 2,448 108,594 103,283 OTHER FINANCIAL DATA Net loan charge-offs (b) $ 74 $ 73 $ 53 $ 41 2 — $ 129 $ 114 Return on average allocated equity (b) 20.76 % 16.98 % 23.93 % 24.74 % (1.06 )% 2.11 % 10.37 % 12.06 % Return on average allocated equity 20.76 16.98 23.93 24.74 (.99 ) 2.25 10.41 12.13 Average full-time equivalent employees (c) 9,531 10,082 2,314 2,466 5,534 5,910 17,379 18,458 (a) Substantially all revenue generated by our major business segments is derived from clients that reside in the United States. Substantially all long-lived assets, including premises and equipment, capitalized software, and goodwill held by our major business segments, are located in the United States. (b) From continuing operations. (c) The number of average full-time equivalent employees was not adjusted for discontinued operations. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 6 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | 20. Revenue from Contracts with Customers The following table represents a disaggregation of revenue from contracts with customers, by business segment, for the three- and six- month periods ended June 30, 2019 , and June 30, 2018 . Refer to Note 19 (“ Business Segment Reporting ”) for a description of the company-wide organizational change which occurred in the first quarter of 2019 resulting in the realignment of Key’s businesses into two reportable business segments, Consumer Bank and Commercial Bank. Prior period information was restated to conform to the new business segment structure. Three months ended June 30, 2019 Three months ended June 30, 2018 dollars in millions Consumer Bank Commercial Bank Total Contract Revenue Consumer Bank Commercial Bank Total Contract Revenue NONINTEREST INCOME Trust and investment services income $ 91 $ 17 $ 108 $ 91 $ 19 $ 110 Investment banking and debt placement fees — 65 65 — 68 68 Services charges on deposit accounts 56 27 83 62 28 90 Cards and payments income 44 28 72 40 29 69 Other noninterest income 4 — 4 5 — 5 Total revenue from contracts with customers $ 195 $ 137 $ 332 $ 198 $ 144 $ 342 Other noninterest income (a) $ 253 $ 197 Noninterest income from Other (b) 37 121 Total noninterest income $ 622 $ 660 (a) Noninterest income considered earned outside the scope of contracts with customers. (b) Other includes other segments that consists of corporate treasury, our principal investing unit, and various exit portfolios as well as reconciling items which primarily represents the unallocated portion of nonearning assets of corporate support functions. Charges related to the funding of these assets are part of net interest income and are allocated to the business segments through noninterest expense. Reconciling items also includes intercompany eliminations and certain items that are not allocated to the business segments because they do not reflect their normal operations. Refer to Note 19 (“ Business Segment Reporting ”) for more information. Six months ended June 30, 2019 Six months ended June 30, 2018 dollars in millions Consumer Bank Commercial Bank Total Contract Revenue Consumer Bank Commercial Bank Total Contract Revenue NONINTEREST INCOME Trust and investment services income $ 176 $ 32 $ 208 $ 176 $ 36 $ 212 Investment banking and debt placement fees — 110 110 — 115 115 Services charges on deposit accounts 110 55 165 123 56 179 Cards and payments income 81 55 136 75 55 130 Other noninterest income 6 — 6 10 — 10 Total revenue from contracts with customers $ 373 $ 252 $ 625 $ 384 $ 262 $ 646 Other noninterest income (a) $ 475 $ 447 Noninterest income from Other (b) 58 168 Total noninterest income $ 1,158 $ 1,261 (a) Noninterest income considered earned outside the scope of contracts with customers. (b) Other includes other segments that consists of corporate treasury, our principal investing unit, and various exit portfolios as well as reconciling items which primarily represents the unallocated portion of nonearning assets of corporate support functions. Charges related to the funding of these assets are part of net interest income and are allocated to the business segments through noninterest expense. Reconciling items also includes intercompany eliminations and certain items that are not allocated to the business segments because they do not reflect their normal operations. Refer to Note 19 (“ Business Segment Reporting ”) for more information. We had no material contract assets or contract liabilities as of June 30, 2019 , and June 30, 2018 . |
Subsequent Event
Subsequent Event | 6 Months Ended |
Jun. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Event | 21. Subsequent Event As previously reported, on or about July 9, 2019, we discovered fraudulent activity associated with transactions conducted in the third quarter of 2019 by a business customer of KeyBank. We continue to investigate this matter to determine the potential exposure to us, which we currently estimate could be up to $90 million , net of tax. The ultimate financial impact could be lower and will depend, in part, on our success in our efforts to recover the funds. We plan to pursue all available sources of recovery and other means of mitigating the potential loss. We are working with the appropriate law enforcement authorities in connection with this matter. We may be limited in what information we can disclose due to the ongoing investigation. Based on our review of the circumstances of the fraudulent activity, we believe this incident is an isolated occurrence involving a single business relationship. |
Basis of Presentation and Acc_2
Basis of Presentation and Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Consolidation | The consolidated financial statements include the accounts of KeyCorp and its subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. Some previously reported amounts have been reclassified to conform to current reporting practices. The consolidated financial statements include any voting rights entities in which we have a controlling financial interest. In accordance with the applicable accounting guidance for consolidations, we consolidate a VIE if we have: (i) a variable interest in the entity; (ii) the power to direct activities of the VIE that most significantly affect the entity’s economic performance; and (iii) the obligation to absorb losses of the entity or the right to receive benefits from the entity that could potentially be significant to the VIE (i.e., we are considered to be the primary beneficiary). Variable interests can include equity interests, subordinated debt, derivative contracts, leases, service agreements, guarantees, standby letters of credit, loan commitments, and other contracts, agreements, and financial instruments. See Note 10 (“ Variable Interest Entities ”) for information on our involvement with VIEs. We use the equity method to account for unconsolidated investments in voting rights entities or VIEs if we have significant influence over the entity’s operating and financing decisions (usually defined as a voting or economic interest of 20% to 50% , but not controlling). Unconsolidated investments in voting rights entities or VIEs in which we have a voting or economic interest of less than 20% are carried at the cost measurement alternative or at fair value. Investments held by our registered broker-dealer and investment company subsidiaries (principal investing entities and Real Estate Capital line of business) are carried at fair value. We believe that the unaudited consolidated interim financial statements reflect all adjustments of a normal recurring nature and disclosures that are necessary for a fair presentation of the results for the interim periods presented. The results of operations for the interim period are not necessarily indicative of the results of operations to be expected for the full year. The interim financial statements should be read in conjunction with the audited consolidated financial statements and related notes included in our 2018 Form 10-K. |
Subsequent Events | In preparing these financial statements, subsequent events were evaluated through the time the financial statements were issued. Financial statements are considered issued when they are widely distributed to all shareholders and other financial statement users or filed with the SEC. |
Accounting Guidance Adopted and Pending Adoption | Standard Date of Adoption Description Effect on Financial Statements or Other Significant Matters ASU 2016-02, Leases (Topic 842) ASU 2018-01, Leases (Topic 842): Land Easement Practical Expedient ASU 2018-10, Codification Improvements to Topic 842 ASU 2018-11, Leases (Topic 842): Targeted Improvements ASU 2018-20, Leases (Topic 842): Narrow Scope Improvements for Lessors ASU 2019-01, Codification Improvements to Topic 842 January 1, 2019 The ASUs create and amend ASC Topic 842, Leases , and supersede Topic 840, Leases. The new guidance requires that a lessee recognize assets and liabilities for leases with lease terms of more than 12 months. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. Leveraged leases that commenced before the effective date of the new guidance are grandfathered. The recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification as a finance or operating lease. However, both types of leases are required to be recognized on the balance sheet. ASC 842 requires enhanced disclosures to better understand the amount, timing, and uncertainty of cash flows arising from leases. Qualitative and quantitative disclosures are required to provide additional information about the amounts recorded in the financial statements. Although substantially unchanged, certain amendments provide clarifications related to lessor accounting. The guidance should be implemented using a modified retrospective approach. However, entities may choose to measure and present the changes at the beginning of the earliest period presented or to reflect the changes as of the adoption date. Key adopted this guidance on January 1, 2019, using the package of practical expedients, which allowed Key to maintain historic lease identification and classification, and permitted Key not to reassess initial direct costs under the new guidance. Key also elected the practical expedient on not separating lease components from nonlease components for all of its leases. Adoption resulted in an increase in right-of-use assets and associated lease liabilities arising from operating leases in which Key is the lessee of approximately $710 million on our Consolidated Balance Sheets at January 1, 2019. Right of use assets, lease liabilities, and other changes as a result of adoption are not reflected in comparable periods presented prior to that date. The adoption of this guidance did not have a material impact on the recognition of operating lease expense in our Consolidated Statements of Income. The amount of the right-of-use assets and associated lease liabilities recorded at adoption was based on the present value of unpaid future minimum lease payments. These payments were discounted using Key’s incremental borrowing rate, consistent with what Key would pay to borrow on a collateralized basis over a term similar to each lease. For more information, please see Note 9 (“Leases”). ASU 2017-08, Premium Amortization on Purchased Callable Debt Securities January 1, 2019 The ASU amends ASC Topic 310-20, Receivables — Nonrefundable Fees and Other Costs , and shortens the amortization period to the earliest call date for certain callable debt securities held at a premium. Securities held at a discount will continue to be amortized to maturity. The guidance should be implemented on a modified retrospective basis using a cumulative-effect adjustment. The adoption of this guidance did not have a material effect on our financial condition or results of operations. ASU 2018-07, Stock Compensation - Improvements to Nonemployee Share-Based Payment Accounting January 1, 2019 The ASU amends ASC Topic 718, Stock Compensation , and simplifies the accounting for share based payments granted to nonemployees for goods and services. The guidance should be implemented on a modified retrospective basis using a cumulative-effect adjustment. The adoption of this guidance did not affect our financial condition or results of operations. ASU 2018-13, Fair Value Measurement: Disclosure Framework September 30, 2018 (removed disclosures only); January 1, 2019, remaining requirements An entity is permitted to early adopt any removed or modified disclosures upon issuance of this ASU and delay adoption of the additional disclosures until their effective date. The ASU amends disclosure requirements related to fair value measurements. Specifically, entities are no longer required to disclose transfers between Level 1 and Level 2 of the fair value hierarchy, or qualitatively disclose the valuation process for Level 3 fair value measurements. The updated guidance requires disclosure of the changes in unrealized gains and losses for the period included in Other Comprehensive Income for recurring Level 3 fair value measurements. Entities also will be required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. Key removed the disclosures no longer required by the guidance as of September 30, 2018, and early adopted the additional provisions of the standard in the first quarter of 2019. The adoption of this standard did not result in significant changes to Key’s disclosures, and there was no effect to our financial condition or results of operations. Standard Date of Adoption Description Effect on Financial Statements or Other Significant Matters ASU 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract January 1, 2019 Early adoption. The ASU amends ASC Topic 350-40 to align the accounting for costs incurred in a cloud computing arrangement with the guidance on developing internal use software. Specifically, if a cloud computing arrangement is deemed to be a service contract, certain implementation costs are eligible for capitalization. The new guidance prescribes the balance sheet and income statement presentation and cash flow classification for the capitalized costs and related amortization expense. It also requires additional quantitative and qualitative disclosures. The guidance may be adopted prospectively or retrospectively. Key early adopted this guidance effective January 1, 2019, on a prospective basis. The adoption of this guidance did not have a material effect on our financial condition or results of operations. ASU 2019-04, Codification Improvements to Topic 815, Derivatives and Hedging (ASU Topic #3), and Topic 825, Financial Instruments (ASU Topic #4) May 1, 2019 Early adoption upon issuance The ASU provides technical corrections to previously adopted ASUs 2016-01 and 2017-12 and clarifies issues related to partial-term fair value hedges, fair value hedge basis adjustments, and how to measure changes in fair value of a hedged item. It also clarifies certain issues related to equity securities and the measurement alternative. Amendments related to ASU 2016-01 should be adopted using a modified retrospective approach, except for those related to equity securities without readily determinable fair values for which the measurement alternative is elected, that should be applied prospectively. Amendments related to ASU 2017-12 can be applied on either a prospective or retrospective basis, with certain exceptions. Key early adopted this guidance effective May 1, 2019. The adoption of this accounting guidance did not effect our financial condition or results of operations. |
Basis of Presentation and Acc_3
Basis of Presentation and Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | Accounting Guidance Adopted in 2019 Standard Date of Adoption Description Effect on Financial Statements or Other Significant Matters ASU 2016-02, Leases (Topic 842) ASU 2018-01, Leases (Topic 842): Land Easement Practical Expedient ASU 2018-10, Codification Improvements to Topic 842 ASU 2018-11, Leases (Topic 842): Targeted Improvements ASU 2018-20, Leases (Topic 842): Narrow Scope Improvements for Lessors ASU 2019-01, Codification Improvements to Topic 842 January 1, 2019 The ASUs create and amend ASC Topic 842, Leases , and supersede Topic 840, Leases. The new guidance requires that a lessee recognize assets and liabilities for leases with lease terms of more than 12 months. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. Leveraged leases that commenced before the effective date of the new guidance are grandfathered. The recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification as a finance or operating lease. However, both types of leases are required to be recognized on the balance sheet. ASC 842 requires enhanced disclosures to better understand the amount, timing, and uncertainty of cash flows arising from leases. Qualitative and quantitative disclosures are required to provide additional information about the amounts recorded in the financial statements. Although substantially unchanged, certain amendments provide clarifications related to lessor accounting. The guidance should be implemented using a modified retrospective approach. However, entities may choose to measure and present the changes at the beginning of the earliest period presented or to reflect the changes as of the adoption date. Key adopted this guidance on January 1, 2019, using the package of practical expedients, which allowed Key to maintain historic lease identification and classification, and permitted Key not to reassess initial direct costs under the new guidance. Key also elected the practical expedient on not separating lease components from nonlease components for all of its leases. Adoption resulted in an increase in right-of-use assets and associated lease liabilities arising from operating leases in which Key is the lessee of approximately $710 million on our Consolidated Balance Sheets at January 1, 2019. Right of use assets, lease liabilities, and other changes as a result of adoption are not reflected in comparable periods presented prior to that date. The adoption of this guidance did not have a material impact on the recognition of operating lease expense in our Consolidated Statements of Income. The amount of the right-of-use assets and associated lease liabilities recorded at adoption was based on the present value of unpaid future minimum lease payments. These payments were discounted using Key’s incremental borrowing rate, consistent with what Key would pay to borrow on a collateralized basis over a term similar to each lease. For more information, please see Note 9 (“Leases”). ASU 2017-08, Premium Amortization on Purchased Callable Debt Securities January 1, 2019 The ASU amends ASC Topic 310-20, Receivables — Nonrefundable Fees and Other Costs , and shortens the amortization period to the earliest call date for certain callable debt securities held at a premium. Securities held at a discount will continue to be amortized to maturity. The guidance should be implemented on a modified retrospective basis using a cumulative-effect adjustment. The adoption of this guidance did not have a material effect on our financial condition or results of operations. ASU 2018-07, Stock Compensation - Improvements to Nonemployee Share-Based Payment Accounting January 1, 2019 The ASU amends ASC Topic 718, Stock Compensation , and simplifies the accounting for share based payments granted to nonemployees for goods and services. The guidance should be implemented on a modified retrospective basis using a cumulative-effect adjustment. The adoption of this guidance did not affect our financial condition or results of operations. ASU 2018-13, Fair Value Measurement: Disclosure Framework September 30, 2018 (removed disclosures only); January 1, 2019, remaining requirements An entity is permitted to early adopt any removed or modified disclosures upon issuance of this ASU and delay adoption of the additional disclosures until their effective date. The ASU amends disclosure requirements related to fair value measurements. Specifically, entities are no longer required to disclose transfers between Level 1 and Level 2 of the fair value hierarchy, or qualitatively disclose the valuation process for Level 3 fair value measurements. The updated guidance requires disclosure of the changes in unrealized gains and losses for the period included in Other Comprehensive Income for recurring Level 3 fair value measurements. Entities also will be required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. Key removed the disclosures no longer required by the guidance as of September 30, 2018, and early adopted the additional provisions of the standard in the first quarter of 2019. The adoption of this standard did not result in significant changes to Key’s disclosures, and there was no effect to our financial condition or results of operations. Standard Date of Adoption Description Effect on Financial Statements or Other Significant Matters ASU 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract January 1, 2019 Early adoption. The ASU amends ASC Topic 350-40 to align the accounting for costs incurred in a cloud computing arrangement with the guidance on developing internal use software. Specifically, if a cloud computing arrangement is deemed to be a service contract, certain implementation costs are eligible for capitalization. The new guidance prescribes the balance sheet and income statement presentation and cash flow classification for the capitalized costs and related amortization expense. It also requires additional quantitative and qualitative disclosures. The guidance may be adopted prospectively or retrospectively. Key early adopted this guidance effective January 1, 2019, on a prospective basis. The adoption of this guidance did not have a material effect on our financial condition or results of operations. ASU 2019-04, Codification Improvements to Topic 815, Derivatives and Hedging (ASU Topic #3), and Topic 825, Financial Instruments (ASU Topic #4) May 1, 2019 Early adoption upon issuance The ASU provides technical corrections to previously adopted ASUs 2016-01 and 2017-12 and clarifies issues related to partial-term fair value hedges, fair value hedge basis adjustments, and how to measure changes in fair value of a hedged item. It also clarifies certain issues related to equity securities and the measurement alternative. Amendments related to ASU 2016-01 should be adopted using a modified retrospective approach, except for those related to equity securities without readily determinable fair values for which the measurement alternative is elected, that should be applied prospectively. Amendments related to ASU 2017-12 can be applied on either a prospective or retrospective basis, with certain exceptions. Key early adopted this guidance effective May 1, 2019. The adoption of this accounting guidance did not effect our financial condition or results of operations. |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Earnings Per Common Share | Our basic and diluted earnings per Common Share are calculated as follows: Three months ended June 30, Six months ended June 30, dollars in millions, except per share amounts 2019 2018 2019 2018 EARNINGS Income (loss) from continuing operations $ 423 $ 479 $ 829 $ 895 Less: Net income (loss) attributable to noncontrolling interests — — — — Income (loss) from continuing operations attributable to Key 423 479 829 895 Less: Dividends on Preferred Stock 20 15 40 29 Income (loss) from continuing operations attributable to Key common shareholders 403 464 789 866 Income (loss) from discontinued operations, net of taxes 2 3 3 5 Net income (loss) attributable to Key common shareholders $ 405 $ 467 $ 792 $ 871 WEIGHTED-AVERAGE COMMON SHARES Weighted-average Common Shares outstanding (000) 999,163 1,052,652 1,003,047 1,054,378 Effect of Common Share options and other stock awards 8,801 13,141 9,318 14,561 Weighted-average Common Shares and potential Common Shares outstanding (000) (a) 1,007,964 1,065,793 1,012,365 1,068,939 EARNINGS PER COMMON SHARE Income (loss) from continuing operations attributable to Key common shareholders $ .40 $ .44 $ .79 $ .82 Income (loss) from discontinued operations, net of taxes — — — — Net income (loss) attributable to Key common shareholders (b) .40 .44 .79 .82 Income (loss) from continuing operations attributable to Key common shareholders — assuming dilution $ .40 $ .44 $ .78 $ .81 Income (loss) from discontinued operations, net of taxes — assuming dilution — — — — Net income (loss) attributable to Key common shareholders — assuming dilution (b) .40 .44 .78 .81 (a) Assumes conversion of Common Share options and other stock awards and/or convertible preferred stock, as applicable. (b) EPS may not foot due to rounding. |
Loan Portfolio (Tables)
Loan Portfolio (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Loans Receivables [Abstract] | |
Loans by Category | in millions June 30, 2019 December 31, 2018 Commercial and industrial (a) $ 48,544 $ 45,753 Commercial real estate: Commercial mortgage 13,299 14,285 Construction 1,439 1,666 Total commercial real estate loans 14,738 15,951 Commercial lease financing (b) 4,578 4,606 Total commercial loans 67,860 66,310 Residential — prime loans: Real estate — residential mortgage 6,053 5,513 Home equity loans 10,575 11,142 Total residential — prime loans 16,628 16,655 Consumer direct loans 2,350 1,809 Credit cards 1,096 1,144 Consumer indirect loans 4,003 3,634 Total consumer loans 24,077 23,242 Total loans (c) $ 91,937 $ 89,552 (a) Loan balances include $143 million and $132 million of commercial credit card balances at June 30, 2019 , and December 31, 2018 , respectively. (b) Commercial lease financing includes receivables held as collateral for a secured borrowing of $11 million and $10 million at June 30, 2019 , and December 31, 2018 , respectively. Principal reductions are based on the cash payments received from these related receivables. Additional information pertaining to this secured borrowing is included in Note 19 (“ Long-Term Debt ”) beginning on page 160 of our 2018 Form 10-K. (c) Total loans exclude loans of $964 million at June 30, 2019 , and $1.1 billion at December 31, 2018 , related to the discontinued operations of the education lending business. |
Asset Quality (Tables)
Asset Quality (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Financing Receivable Credit Quality Indicators | Commercial Credit Exposure — Excluding PCI Credit Risk Profile by Creditworthiness Category (a), (b) Commercial and industrial RE — Commercial RE — Construction Commercial lease Total in millions June 30, December 31, June 30, December 31, June 30, December 31, June 30, December 31, June 30, December 31, RATING 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 Pass $ 46,773 $ 44,138 $ 12,756 $ 13,672 $ 1,379 $ 1,537 $ 4,535 $ 4,557 $ 65,443 $ 63,904 Criticized (Accruing) 1,529 1,402 303 354 57 125 36 41 1,925 1,922 Criticized (Nonaccruing) 189 152 85 81 2 2 7 8 283 243 Total $ 48,491 $ 45,692 $ 13,144 $ 14,107 $ 1,438 $ 1,664 $ 4,578 $ 4,606 $ 67,651 $ 66,069 (a) Credit quality indicators are updated on an ongoing basis and reflect credit quality information as of the dates indicated. (b) The term criticized refers to those loans that are internally classified by Key as special mention or worse, which are asset quality categories defined by regulatory authorities. These assets have an elevated level of risk and may have a high probability of default or total loss. Pass rated refers to all loans not classified as criticized. Consumer Credit Exposure — Excluding PCI Non-PCI Loans by Refreshed FICO Score (a) Residential — Prime Consumer direct loans Credit cards Consumer indirect loans Total in millions June 30, December 31, June 30, December 31, June 30, December 31, June 30, December 31, June 30, December 31, FICO SCORE 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 750 and above $ 10,040 $ 9,794 $ 827 $ 549 $ 499 $ 521 $ 1,849 $ 1,647 $ 13,215 $ 12,511 660 to 749 4,681 4,906 822 700 481 507 1,440 1,320 7,424 7,433 Less than 660 1,341 1,411 219 224 116 116 573 565 2,249 2,316 No Score 260 213 479 333 — — 141 102 880 648 Total $ 16,322 $ 16,324 $ 2,347 $ 1,806 $ 1,096 $ 1,144 $ 4,003 $ 3,634 $ 23,768 $ 22,908 (a) Borrower FICO scores provide information about the credit quality of our consumer loan portfolio as they provide an indication as to the likelihood that a debtor will repay its debts. The scores are obtained from a nationally recognized consumer rating agency and are presented in the above table at the dates indicated. Commercial Credit Exposure — PCI Credit Risk Profile by Creditworthiness Category (a), (b) Commercial and Industrial RE — Commercial RE — Construction Commercial Lease Total in millions June 30, December 31, June 30, December 31, June 30, December 31, June 30, December 31, June 30, December 31, RATING 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 Pass $ 32 $ 37 $ 111 $ 125 $ 1 $ 2 — — $ 144 $ 164 Criticized 21 24 44 53 — — — — 65 77 Total $ 53 $ 61 $ 155 $ 178 $ 1 $ 2 — — $ 209 $ 241 (a) Credit quality indicators are updated on an ongoing basis and reflect credit quality information as of the dates indicated. (b) The term “criticized” refers to those loans that are internally classified by Key as special mention or worse, which are asset quality categories defined by regulatory authorities. These assets have an elevated level of risk and may have a high probability of default or total loss. Pass rated refers to all loans not classified as criticized. Consumer Credit Exposure — PCI PCI Loans by Refreshed FICO Score (a) Residential — Prime Consumer direct loans Credit cards Consumer indirect loans Total in millions June 30, December 31, June 30, December 31, June 30, December 31, June 30, December 31, June 30, December 31, FICO SCORE 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 750 and above $ 119 $ 137 1 — — — — — $ 120 $ 137 660 to 749 103 95 $ 1 $ 1 — — — — 104 96 Less than 660 78 97 1 2 — — — — 79 99 No Score 6 2 — — — — — — 6 2 Total $ 306 $ 331 $ 3 $ 3 — — — — $ 309 $ 334 (a) Borrower FICO scores provide information about the credit quality of our consumer loan portfolio as they provide an indication as to the likelihood that a debtor will repay its debts. The scores are obtained from a nationally recognized consumer rating agency and are presented in the above table at the dates indicated. |
Past Due Loans Including Current Loans | The following aging analysis of past due and current loans as of June 30, 2019 , and December 31, 2018 , provides further information regarding Key’s credit exposure. Aging Analysis of Loan Portfolio (a) June 30, 2019 Current 30-59 Days Past Due (b) 60-89 Days Past Due (b) 90 and Greater Days Past Due (b) Non-performing Loans Total Past Due and Non-performing Loans Purchased Credit Impaired Total Loans (c), (d) in millions LOAN TYPE Commercial and industrial $ 48,136 $ 116 $ 20 $ 30 $ 189 $ 355 $ 53 $ 48,544 Commercial real estate: Commercial mortgage 13,029 17 3 10 85 115 155 13,299 Construction 1,416 20 — — 2 22 1 1,439 Total commercial real estate loans 14,445 37 3 10 87 137 156 14,738 Commercial lease financing 4,547 13 3 8 7 31 — 4,578 Total commercial loans $ 67,128 $ 166 $ 26 $ 48 $ 283 $ 523 $ 209 $ 67,860 Real estate — residential mortgage $ 5,686 $ 11 $ 2 $ 1 $ 62 $ 76 $ 291 $ 6,053 Home equity loans 10,329 27 8 5 191 231 15 10,575 Consumer direct loans 2,322 10 5 7 3 25 3 2,350 Credit cards 1,073 6 4 11 2 23 — 1,096 Consumer indirect loans 3,947 28 6 2 20 56 — 4,003 Total consumer loans $ 23,357 $ 82 $ 25 $ 26 $ 278 $ 411 $ 309 $ 24,077 Total loans $ 90,485 $ 248 $ 51 $ 74 $ 561 $ 934 $ 518 $ 91,937 (a) Amounts in table represent recorded investment and exclude loans held for sale. Recorded investment represents the face amount of the loan increased or decreased by applicable accrued interest, net deferred loan fees and costs, and unamortized premium or discount, and reflects direct charge-offs. (b) Past due loan amounts exclude PCI, even if contractually past due (or if we do not expect to collect principal or interest in full based on the original contractual terms), as we are currently accreting income over the remaining term of the loans. (c) Net of unearned income, net deferred loan fees and costs, and unamortized discounts and premiums. (d) Future accretable yield related to PCI loans is not included in the analysis of the loan portfolio. December 31, 2018 Current 30-59 Days Past Due (b) 60-89 Days Past Due (b) 90 and Greater Days Past Due (b) Non-performing Loans Total Past Due and Non-performing Loans Purchased Credit Impaired Total Loans (c), (d) in millions LOAN TYPE Commercial and industrial $ 45,375 $ 89 $ 31 $ 45 $ 152 $ 317 61 $ 45,753 Commercial real estate: Commercial mortgage 13,957 27 17 25 81 150 178 14,285 Construction 1,646 — 13 3 2 18 2 1,666 Total commercial real estate loans 15,603 27 30 28 83 168 180 15,951 Commercial lease financing 4,580 12 1 4 9 26 — 4,606 Total commercial loans $ 65,558 $ 128 $ 62 $ 77 $ 244 $ 511 241 $ 66,310 Real estate — residential mortgage $ 5,119 $ 11 $ 3 $ 4 $ 62 $ 80 $ 314 $ 5,513 Home equity loans 10,862 31 12 10 210 263 17 11,142 Consumer direct loans 1,780 11 5 6 4 26 3 1,809 Credit cards 1,119 6 5 12 2 25 — 1,144 Consumer indirect loans 3,573 31 7 3 20 61 — 3,634 Total consumer loans $ 22,453 $ 90 $ 32 $ 35 $ 298 $ 455 $ 334 $ 23,242 Total loans $ 88,011 $ 218 $ 94 $ 112 $ 542 $ 966 $ 575 $ 89,552 (a) Amounts in table represent recorded investment and exclude loans held for sale. Recorded investment represents the face amount of the loan increased or decreased by applicable accrued interest, net deferred loan fees and costs, and unamortized premium or discount, and reflects direct charge-offs. (b) Past due loan amounts exclude PCI, even if contractually past due (or if we do not expect to collect principal or interest in full based on the original contractual terms), as we are currently accreting income over the remaining term of the loans. (c) Net of unearned income, net deferred loan fees and costs, and unamortized discounts and premiums. (d) Future accretable yield related to purchased credit impaired loans is not included in the analysis of the loan portfolio. |
Breakdown of Individually Impaired Loans | The following tables set forth a further breakdown of individually impaired loans as of June 30, 2019 , and December 31, 2018 : June 30, 2019 December 31, 2018 Recorded Investment (a) Unpaid Principal Balance (b) Specific Allowance Recorded Investment (a) Unpaid Principal Balance (b) Specific Allowance in millions With no related allowance recorded: Commercial and industrial $ 118 $ 151 — $ 118 $ 175 — Commercial real estate: Commercial mortgage 61 73 — 64 70 — Total commercial real estate loans 61 73 — 64 70 — Total commercial loans 179 224 — 182 245 — Real estate — residential mortgage 4 6 — 4 5 — Home equity loans 47 53 — 49 56 — Consumer direct loans — 1 — 1 1 — Consumer indirect loans 2 4 — 2 4 — Total consumer loans 53 64 — 56 66 — Total loans with no related allowance recorded 232 288 — 238 311 — With an allowance recorded: Commercial and industrial 65 83 $ 10 44 47 $ 5 Commercial real estate: Commercial mortgage 3 3 1 2 3 1 Total commercial real estate loans 3 3 1 2 3 1 Total commercial loans 68 86 11 46 50 6 Real estate — residential mortgage 44 68 3 45 70 3 Home equity loans 81 87 9 78 85 8 Consumer direct loans 4 4 — 3 3 — Credit cards 3 3 — 3 3 — Consumer indirect loans 33 34 3 34 34 2 Total consumer loans 165 196 15 163 195 13 Total loans with an allowance recorded 233 282 26 209 245 19 Total $ 465 $ 570 $ 26 $ 447 $ 556 $ 19 (a) The Recorded Investment represents the face amount of the loan increased or decreased by applicable accrued interest, net deferred loan fees and costs, and unamortized premium or discount, and reflects direct charge-offs. This amount is a component of total loans on our Consolidated Balance Sheet. (b) The Unpaid Principal Balance represents the customer’s legal obligation to us. The following table sets forth a further breakdown of the average individually impaired loans reported by Key: Average Recorded Investment (a) Three Months Ended June 30, Six Months Ended June 30, in millions 2019 2018 2019 2018 Commercial and industrial $ 176 $ 178 $ 172 $ 161 Commercial real estate: Commercial mortgage 63 16 65 16 Total commercial real estate loans 63 16 65 16 Total commercial loans 239 194 237 177 Real estate — residential mortgage 48 49 49 49 Home equity loans 128 124 127 121 Consumer direct loans 4 4 4 4 Credit cards 2 3 3 3 Consumer indirect loans 36 35 36 34 Total consumer loans 218 215 219 211 Total $ 457 $ 409 $ 456 $ 388 (a) The Recorded Investment represents the face amount of the loan increased or decreased by applicable accrued interest, net deferred loan fees and costs, and unamortized premium or discount, and reflects direct charge-offs. This amount is a component of total loans on our Consolidated Balance Sheet. |
Post-Modification Outstanding Recorded Investment by Concession Type for Our Commercial Accruing and Nonaccruing TDRs | The following table shows the post-modification outstanding recorded investment by concession type for our commercial and consumer accruing and nonaccruing TDRs that occurred during the periods indicated: Three Months Ended June 30, Six Months Ended June 30, in millions 2019 2018 2019 2018 Commercial loans: Forgiveness of principal $ — 5 $ — 5 Extension of Maturity Date 6 $ 14 $ 6 $ 15 Payment or Covenant Modification/Deferment 18 20 18 20 Bankruptcy Plan Modification 11 7 11 7 Total 35 $ 46 $ 35 $ 47 Consumer loans: Interest rate reduction $ 4 $ 8 $ 8 $ 18 Other 9 10 16 21 Total $ 13 $ 18 $ 24 $ 39 Total commercial and consumer TDRs $ 48 $ 64 $ 59 $ 86 |
Summary Of Post-Modification Outstanding Recorded Investment, Accruing And Nonaccruing TDRs | The following table summarizes the change in the post-modification outstanding recorded investment of our accruing and nonaccruing TDRs during the periods indicated: Three Months Ended June 30, Six Months Ended June 30, in millions 2019 2018 2019 2018 Balance at beginning of the period $ 365 $ 317 $ 399 $ 317 Additions 54 54 68 75 Payments (19 ) (22 ) (58 ) (41 ) Charge-offs (5 ) (2 ) (14 ) (4 ) Balance at end of period $ 395 $ 347 $ 395 $ 347 |
Breakdown of Nonperforming TDRs by Loans Category | A further breakdown of TDRs included in nonperforming loans by loan category for the periods indicated are as follows: June 30, 2019 December 31, 2018 Number of Loans Pre-modification Outstanding Recorded Investment Post-modification Outstanding Recorded Investment Number of Loans Pre-modification Outstanding Recorded Investment Post-modification Outstanding Recorded Investment dollars in millions LOAN TYPE Nonperforming: Commercial and industrial 57 $ 111 $ 88 35 $ 121 $ 85 Commercial real estate: Commercial mortgage 8 67 61 6 66 62 Total commercial real estate loans 8 67 61 6 66 62 Total commercial loans 65 178 149 41 187 147 Real estate — residential mortgage 297 21 19 281 21 20 Home equity loans 801 49 45 1,142 66 63 Consumer direct loans 129 1 1 171 2 1 Credit cards 251 1 1 330 2 2 Consumer indirect loans 968 16 13 1,098 18 14 Total consumer loans 2,446 88 79 3,022 109 100 Total nonperforming TDRs 2,511 266 228 3,063 296 247 Prior-year accruing: (a) Commercial and industrial 10 34 28 11 37 32 Commercial real estate Commercial mortgage 1 — — 2 — — Total commercial real estate loans 1 — — 2 — — Total commercial loans 11 34 28 13 37 32 Real estate — residential mortgage 467 35 29 491 36 30 Home equity loans 1,716 100 83 1,403 82 64 Consumer direct loans 138 5 3 79 4 3 Credit cards 600 3 2 479 3 1 Consumer indirect loans 766 36 22 556 33 22 Total consumer loans 3,687 179 139 3,008 158 120 Total prior-year accruing TDRs 3,698 213 167 3,021 195 152 Total TDRs 6,209 $ 479 $ 395 6,084 $ 491 $ 399 (a) All TDRs that were restructured prior to January 1, 2019 , and January 1, 2018 , and are fully accruing. |
Changes in Allowance for Loan and Lease Losses by Loan Category | The changes in the ALLL by loan category for the periods indicated are as follows: Three months ended June 30, 2019 : in millions March 31, 2019 Provision Charge-offs Recoveries June 30, 2019 Commercial and Industrial $ 530 $ 43 $ (30 ) $ 6 $ 549 Commercial real estate: Real estate — commercial mortgage 144 (5 ) (1 ) 1 139 Real estate — construction 28 (4 ) — — 24 Total commercial real estate loans 172 (9 ) (1 ) 1 163 Commercial lease financing 35 14 (16 ) 2 35 Total commercial loans 737 48 (47 ) 9 747 Real estate — residential mortgage 8 — (1 ) — 7 Home equity loans 36 4 (6 ) 2 36 Consumer direct loans 33 7 (10 ) 2 32 Credit cards 47 7 (12 ) 2 44 Consumer indirect loans 22 6 (8 ) 4 24 Total consumer loans 146 24 (37 ) 10 143 Total ALLL — continuing operations 883 72 (a) (84 ) 19 890 Discontinued operations 13 2 (4 ) 1 12 Total ALLL — including discontinued operations $ 896 $ 74 $ (88 ) $ 20 $ 902 (a) Excludes a provision for losses on lending-related commitments of $2 million . Three months ended June 30, 2018 : in millions March 31, 2018 Provision Charge-offs Recoveries June 30, 2018 Commercial and Industrial $ 533 $ 41 $ (39 ) $ 7 $ 542 Commercial real estate: Real estate — commercial mortgage 136 4 (2 ) 1 139 Real estate — construction 33 (5 ) — — 28 Total commercial real estate loans 169 (1 ) (2 ) 1 167 Commercial lease financing 40 4 (4 ) — 40 Total commercial loans 742 44 (45 ) 8 749 Real estate — residential mortgage 9 1 — — 10 Home equity loans 38 2 (6 ) 3 37 Consumer direct loans 27 6 (9 ) 2 26 Credit cards 45 11 (12 ) 2 46 Consumer indirect loans 20 2 (7 ) 4 19 Total consumer loans 139 22 (34 ) 11 138 Total ALLL — continuing operations 881 66 (a) (79 ) 19 887 Discontinued operations 16 — (3 ) 1 14 Total ALLL — including discontinued operations $ 897 $ 66 $ (82 ) $ 20 $ 901 (a) Excludes a credit for losses on lending-related commitments of $2 million . Six months ended June 30, 2019 : in millions December 31, 2018 Provision Charge-offs Recoveries June 30, 2019 Commercial and Industrial 532 $ 67 $ (66 ) $ 16 $ 549 Commercial real estate: Real estate — commercial mortgage 142 1 (6 ) 2 139 Real estate — construction 33 (5 ) (4 ) — 24 Total commercial real estate loans 175 (4 ) (10 ) 2 163 Commercial lease financing 36 20 (24 ) 3 35 Total commercial loans 743 83 (100 ) 21 747 Real estate — residential mortgage 7 1 (2 ) 1 7 Home equity loans 35 7 (10 ) 4 36 Consumer direct loans 30 19 (20 ) 3 32 Credit cards 48 15 (23 ) 4 44 Consumer indirect loans 20 11 (16 ) 9 24 Total consumer loans 140 53 (71 ) 21 143 Total ALLL — continuing operations 883 136 (a) (171 ) 42 890 Discontinued operations 14 4 (8 ) 2 12 Total ALLL — including discontinued operations $ 897 $ 140 $ (179 ) $ 44 $ 902 Six months ended June 30, 2018 : in millions December 31, 2017 Provision Charge-offs Recoveries June 30, 2018 Commercial and Industrial $ 529 $ 76 $ (76 ) $ 13 $ 542 Commercial real estate: Real estate — commercial mortgage 133 8 (3 ) 1 139 Real estate — construction 30 (3 ) — 1 28 Total commercial real estate loans 163 5 (3 ) 2 167 Commercial lease financing 43 1 (5 ) 1 40 Total commercial loans 735 82 (84 ) 16 749 Real estate — residential mortgage 7 4 (1 ) — 10 Home equity loans 43 (2 ) (10 ) 6 37 Consumer direct loans 28 11 (17 ) 4 26 Credit cards 44 23 (24 ) 3 46 Consumer indirect loans 20 6 (15 ) 8 19 Total consumer loans 142 42 (67 ) 21 138 Total ALLL — continuing operations 877 124 (a) (151 ) 37 887 Discontinued operations 16 2 (7 ) 3 14 Total ALLL — including discontinued operations $ 893 $ 126 $ (158 ) $ 40 $ 901 (a) Excludes a provision for losses on lending-related commitments of $1 million . |
Allowance for Loan and Lease Losses and Corresponding Loan Balances | A breakdown of the individual and collective ALLL and the corresponding loan balances as of June 30, 2019 , follows: Allowance Outstanding June 30, 2019 Individually Evaluated for Impairment Collectively Evaluated for Impairment Purchased Credit Impaired Loans Individually Evaluated for Impairment Collectively Evaluated for Impairment Purchased Credit Impaired in millions Commercial and industrial $ 10 $ 538 $ 1 $ 48,544 $ 183 $ 48,308 $ 53 Commercial real estate: Commercial mortgage 1 137 1 13,299 64 13,080 155 Construction — 24 — 1,439 — 1,438 1 Total commercial real estate loans 1 161 1 14,738 64 14,518 156 Commercial lease financing — 35 — 4,578 — 4,578 — Total commercial loans 11 734 2 67,860 247 67,404 209 Real estate — residential mortgage 3 3 1 6,053 48 5,714 291 Home equity loans 9 26 1 10,575 128 10,432 15 Consumer direct loans — 32 — 2,350 4 2,343 3 Credit cards — 44 — 1,096 3 1,093 — Consumer indirect loans 3 21 — 4,003 35 3,968 — Total consumer loans 15 126 2 24,077 218 23,550 309 Total ALLL — continuing operations 26 860 4 91,937 465 90,954 518 Discontinued operations 2 10 — 964 (a) 23 941 (a) — Total ALLL — including discontinued operations $ 28 $ 870 $ 4 $ 92,901 $ 488 $ 91,895 $ 518 (a) Amount includes $2 million of loans carried at fair value that are excluded from ALLL consideration. A breakdown of the individual and collective ALLL and the corresponding loan balances as of December 31, 2018 , follows: Allowance Outstanding December 31, 2018 Individually Evaluated for Impairment Collectively Evaluated for Impairment Purchased Credit Impaired Loans Individually Evaluated for Impairment Collectively Evaluated for Impairment Purchased Credit Impaired in millions Commercial and Industrial $ 5 $ 526 $ 1 $ 45,753 $ 162 $ 45,530 $ 61 Commercial real estate: Commercial mortgage — 139 3 14,285 66 14,041 178 Construction — 33 — 1,666 — 1,664 2 Total commercial real estate loans — 172 3 15,951 66 15,705 180 Commercial lease financing — 36 — 4,606 — 4,606 — Total commercial loans 5 734 4 66,310 228 65,841 241 Real estate — residential mortgage 3 4 — 5,513 49 5,150 314 Home equity loans 8 26 1 11,142 127 10,998 17 Consumer direct loans — 30 — 1,809 4 1,802 3 Credit cards — 48 — 1,144 3 1,141 — Consumer indirect loans 3 17 — 3,634 36 3,598 — Total consumer loans 14 125 1 23,242 219 22,689 334 Total ALLL — continuing operations 19 859 5 89,552 447 88,530 575 Discontinued operations 2 12 — 1,073 (a) 23 1,050 (a) — Total ALLL — including discontinued operations $ 21 $ 871 $ 5 $ 90,625 $ 470 $ 89,580 $ 575 (a) Amount includes $2 million of loans carried at fair value that are excluded from ALLL consideration. Changes in the liability for credit losses on unfunded lending-related commitments are summarized as follows: Three months ended June 30, Six months ended June 30, in millions 2019 2018 2019 2018 Balance at beginning of period $ 62 $ 60 $ 64 $ 57 Provision (credit) for losses on lending-related commitments 2 (2 ) — 1 Balance at end of period $ 64 $ 58 $ 64 $ 58 |
Schedule of Changes in Outstanding Unpaid Principal Balance, Carrying Amount, and Accretable Yield for PCI Loans | The following tables present the roll-forward of the accretable yield and the beginning and ending outstanding unpaid principal balance and carrying amount of all PCI loans for the six months ended June 30, 2019 , and the twelve months ended December 31, 2018 . Three Months Ended June 30, Six Months Ended June 30, 2019 2019 in millions Accretable Yield Carrying Amount Outstanding Unpaid Principal Balance Accretable Yield Carrying Amount Outstanding Unpaid Principal Balance Balance at beginning of period $ 118 $ 547 $ 578 $ 117 $ 571 $ 607 Accretion (9 ) (19 ) Net reclassifications from nonaccretable to accretable (5 ) 8 Payments received, net (3 ) (5 ) Balance at end of period $ 101 $ 513 $ 541 $ 101 $ 513 $ 541 Twelve Months Ended December 31, 2018 in millions Accretable Yield Carrying Amount Outstanding Unpaid Principal Balance Balance at beginning of period $ 131 $ 738 $ 803 Accretion (42 ) Net reclassifications from nonaccretable to accretable 50 Payments received, net (21 ) Loans charged off (1 ) Balance at end of period $ 117 $ 571 $ 607 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Assets and Liabilities Measured on Recurring Basis | The following tables present these assets and liabilities at June 30, 2019 , and December 31, 2018 . June 30, 2019 December 31, 2018 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total in millions ASSETS MEASURED ON A RECURRING BASIS Trading account assets: U.S. Treasury, agencies and corporations — $ 853 — $ 853 — $ 578 — $ 578 States and political subdivisions — 32 — 32 — 60 — 60 Other mortgage-backed securities — 36 — 36 — 164 — 164 Other securities — 62 — 62 — 22 — 22 Total trading account securities — 983 — 983 — 824 — 824 Commercial loans — 22 — 22 — 25 — 25 Total trading account assets — 1,005 — 1,005 — 849 — 849 Securities available for sale: U.S. Treasury, agencies and corporations — 272 — 272 — 147 — 147 States and political subdivisions — 5 — 5 — 7 — 7 Agency residential collateralized mortgage obligations — 13,612 — 13,612 — 13,962 — 13,962 Agency residential mortgage-backed securities — 2,061 — 2,061 — 2,105 — 2,105 Agency commercial mortgage-backed securities — 5,543 — 5,543 — 3,187 — 3,187 Other securities — 24 $ 11 35 — — $ 20 20 Total securities available for sale — 21,517 11 21,528 — 19,408 20 19,428 Other investments: Principal investments: Direct — — 1 1 — — 1 1 Indirect (measured at NAV) (a) — — — 76 — — — 96 Total principal investments — — 1 77 — — 1 97 Equity investments: Direct — — 7 7 — 1 7 8 Direct (measured at NAV) (a) — — — 1 — — — 1 Indirect (measured at NAV) (a) — — — 8 — — — 9 Total equity investments — — 7 16 — 1 7 18 Total other investments — — 8 93 — 1 8 115 Loans, net of unearned income (residential) — — 3 3 — — 3 3 Loans held for sale (residential) — 164 — 164 — 54 — 54 Derivative assets: Interest rate — 885 4 889 — 410 5 415 Foreign exchange $ 41 29 — 70 $ 70 36 — 106 Commodity — 246 — 246 — 333 — 333 Credit — 1 — 1 — 1 — 1 Other — 10 6 16 — 6 3 9 Derivative assets 41 1,171 10 1,222 70 786 8 864 Netting adjustments (b) — — — (413 ) — — — (333 ) Total derivative assets 41 1,171 10 809 70 786 8 531 Accrued income and other assets — — — — — — — — Total assets on a recurring basis at fair value $ 41 $ 23,857 $ 32 $ 23,602 $ 70 $ 21,098 $ 39 $ 20,980 LIABILITIES MEASURED ON A RECURRING BASIS Bank notes and other short-term borrowings: Short positions $ 7 $ 713 — $ 720 $ 14 $ 530 — $ 544 Derivative liabilities: Interest rate — 220 — 220 — 297 — 297 Foreign exchange 35 29 — 64 58 37 — 95 Commodity — 236 — 236 — 323 — 323 Credit — 2 $ 1 3 — 1 — 1 Other — 13 — 13 — 7 — 7 Derivative liabilities 35 500 1 536 58 665 — 723 Netting adjustments (b) — — — (319 ) — — — (337 ) Total derivative liabilities 35 500 1 217 58 665 — 386 Accrued expense and other liabilities — — — — — — — — Total liabilities on a recurring basis at fair value $ 42 $ 1,213 $ 1 $ 937 $ 72 $ 1,195 — $ 930 (a) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheet. (b) Netting adjustments represent the amounts recorded to convert our derivative assets and liabilities from a gross basis to a net basis in accordance with the applicable accounting guidance. The net basis takes into account the impact of bilateral collateral and master netting agreements that allow us to settle all derivative contracts with a single counterparty on a net basis and to offset the net derivative position with the related cash collateral. Total derivative assets and liabilities include these netting adjustments. |
Fair Value Measurement Inputs and Valuation Techniques | The following table describes the valuation techniques and significant inputs used to measure the significant classes of assets and liabilities reported at fair value on a nonrecurring basis, as well as the classification of each within the valuation hierarchy. Asset/liability class Valuation technique Valuation hierarchy classification(s) Impaired loans and leases Loans are evaluated for impairment on a quarterly basis; impairment typically occurs when there is evidence of a probable loss and the expected value of the loan is less than the contractual value of the loan. The amount of the impairment may be determined based on the estimated present value of future cash flows, the fair value of the underlying collateral (Level 3), or the loan’s observable market price based on recent sales of similar loans and collateral (Level 2). Cash flow analysis considers internally developed inputs including: • Discount rates • Default rates • Changes in collateral values and costs of foreclosure Level 2 and 3 Commercial loans held for sale and student loans held for sale Through a quarterly analysis of our loan portfolios held for sale, which include both performing and nonperforming commercial and student loans, we determine any adjustments necessary to record the portfolios at the lower of cost or fair value in accordance with GAAP. Valuation inputs include: • Non-binding bids for the respective loans or similar loans • Recent sales transactions • Internal models that emulate recent securitizations Level 2 and 3 Direct financing leases and operating lease assets held for sale Valuations of direct financing leases and operating lease assets held for sale are performed using an internal model that relies on market data, including: • Swap rates and bond ratings • Our own assumptions about the exit market for the leases • Details about the individual leases in the portfolio Leases for which we receive a current nonbinding bid, and for which the sale is considered probable, may be classified as Level 2. Valuations of lease and operating lease assets held for sale that employ our own assumptions are classified as Level 3 assets. The inputs based on our own assumptions include changes in the value of leased items and internal credit ratings. Level 2 and 3 OREO, other repossessed personal property, and right-of-use assets OREO, other repossessed properties, and right-of-use assets are valued based on: • Appraisals and third-party price opinions, less estimated selling costs Generally, we classify these assets as Level 3, but OREO and other repossessed properties for which we receive binding purchase agreements are classified as Level 2. Returned lease inventory is valued based on market data for similar assets and is classified as Level 2. Level 2 and 3 Asset/liability class Valuation technique Valuation hierarchy classification(s) LIHTC, HTC, and NMTC investments Valuation of LIHTC, HTC and NMTC involves measuring the present value of future tax benefits and comparing that value against the current carrying value of the investment. Expected future tax benefits are discounted to their present value using discounted cash flow modeling that incorporates an appropriate risk premium. LIHTC and HTC investments are impaired when it is more likely than not that the carrying amount of the investment will not be realized. Level 3 Other equity investments We have other investments in equity securities that do not have readily determinable fair values and do not qualify for the practical expedient to measure the investment using a net asset value per share. We have elected to measure these securities at cost less impairment plus or minus adjustments due to observable orderly transactions. Impairment is recorded when there is evidence that the expected fair value of the investment has declined to below the recorded cost. At each reporting period, we assess if these investments continue to qualify for this measurement alternative. At June 30, 2019, and December 31, 2018, the carrying amount of equity investments under this method was $139 million and $107 million, respectively. No impairment was recorded for the three months ended June 30, 2019. Level 3 Mortgage Servicing Rights Refer to Note 8. Mortgage Servicing Assets Level 3 The following table describes the valuation techniques and significant inputs used to measure the classes of assets and liabilities reported at fair value on a recurring basis, as well as the classification of each within the valuation hierarchy. Asset/liability class Valuation technique Valuation hierarchy classification(s) Securities (trading account assets and available for sale) Fair value of level 1 securities is determined by: • Quoted market prices available in an active market for identical securities. This includes exchange-traded equity securities. Fair value of level 2 securities is determined by: • Pricing models (either by a third party pricing service or internally). Inputs include: yields, benchmark securities, bids, offers, actual trade data (i.e., spreads, credit ratings, and interest rates) for comparable assets, spread tables, matrices, high-grade scales, and option-adjusted spreads. • Observable market prices of similar securities. Fair value of level 3 securities is determined by: • Internal models, principally discounted cash flow models (income approach). • Revenue multiples of comparable public companies (market approach). For level 3 securities, increases (decreases) in the discount rate and marketability discount used in the discounted cash flow models would have resulted in lower (higher) fair value measurements. Higher volatility factors would have further magnified changes in fair value. The valuations provided by the third-party pricing service are based on observable market inputs, which include benchmark yields, reported trades, issuer spreads, benchmark securities, bids, offers, and reference data obtained from market research publications. Inputs used by the third-party pricing service in valuing CMOs and other mortgage-backed securities also include new issue data, monthly payment information, whole loan collateral performance, and “To Be Announced” prices. In valuations of securities issued by state and political subdivisions, inputs used by the third-party pricing service also include material event notices. Level 1, 2, and 3 (primarily Level 2) Commercial loans (trading account assets) Fair value is based on: • Observable market price spreads for similar loans. Valuations reflect prices within the bid-ask spread that are most representative of fair value. Level 2 Principal investments (direct) Direct principal investments consist of equity and debt instruments of private companies made by our principal investing entities. Fair value is determined using: • Operating performance and market multiples of comparable businesses • Other unique facts and circumstances related to each individual investment Direct principal investments are accounted for as investment companies in accordance with the applicable accounting guidance, whereby each investment is adjusted to fair value with any net realized or unrealized gain/loss recorded in the current period’s earnings. We are in the process of winding down our direct principal investment portfolio. As of June 30, 2019, the balance is less than $1 million. Level 3 Principal investments (indirect) Indirect principal investments include primary and secondary investments in private equity funds engaged mainly in venture- and growth-oriented investing. These investments do not have readily determinable fair values and qualify for the practical expedient to estimate fair value based upon net asset value per share (or its equivalent, such as member units or an ownership interest in partners’ capital to which a proportionate share of net assets is attributed). Indirect principal investments are also accounted for as investment companies, whereby each investment is adjusted to fair value with any net realized or unrealized gain/loss recorded in the current period’s earnings. Under the provisions of the Volcker Rule, we are required to dispose or conform our indirect investments to the requirements of the statute by no later than July 21, 2022. As of June 30, 2019, we have not committed to a plan to sell these investments. Therefore, these investments continue to be valued using the net asset value per share methodology. NAV Asset/liability class Valuation technique Valuation hierarchy classification(s) Other direct equity investments Fair value is determined using: • Discounted cash flows • Operating performance and market/exit multiples of comparable businesses • Other unique facts and circumstances related to each individual investment For level 3 securities, increases (decreases) in the discount rate and marketability discount used in the discounted cash flow models would have resulted in lower (higher) fair value measurements. Higher volatility factors would have further magnified changes in fair value. Level 2 investments reflect the price of recent investments, which is deemed representative of fair value. Level 2 and 3 Other direct and indirect equity investments (NAV) Certain direct investments do not have readily determinable fair values and qualify for the practical expedient in the accounting guidance that allows us to estimate fair value based upon net asset value per share. NAV Loans held for sale and held for investment (residential) Residential mortgage loans held for sale are accounted for at fair value. The election of the fair value option aligns the accounting for these assets with the related forward loan sale commitments. Fair values are based on: • Quoted market prices, where available • Prices for other traded mortgage loans with similar characteristics • Purchase commitments and bid information received from market participants Prices are adjusted as necessary to include: • The embedded servicing value in the loans • The specific characteristics of certain loans that are priced based on the pricing of similar loans. (These adjustments represent unobservable inputs to the valuation but are not considered significant given the relative insensitivity of the value to changes in these inputs to the fair value of the loans.) Residential loans held for investment: Certain residential loans held for sale contain salability exceptions that make them unable to be sold into the performing loan sales market. Loans in this category are transferred to the held to maturity loan portfolio and are included in “Loans, net of unearned income” on the balance sheet. This type of loan is classified as level 3 in the valuation hierarchy as transaction details regarding sales of this type of loan are often unavailable. Fair value is based upon: • Unobservable bid information from brokers and investors Higher (lower) unobservable bid information would have resulted in higher (lower) fair value measurements. Level 1, 2 and 3 (primarily level 2) Derivatives Exchange-traded derivatives are valued using quoted prices in active markets and, therefore, are classified as Level 1 instruments. The majority of our derivative positions are level 2 and are valued using internally developed models based on market convention and observable market inputs. These derivative contracts include interest rate swaps, certain options, floors, cross currency swaps, credit default swaps, and forward mortgage loan sale commitments. Significant inputs used in the valuation models include: • Interest rate curves • Yield curves • LIBOR and Overnight Index Swap (OIS) discount rates • LIBOR and OIS curves, index pricing curves, foreign currency curves • Volatility surfaces (a three-dimensional graph of implied volatility against strike price and maturity) Level 1, 2, and 3 (primarily level 2) Asset/liability class Valuation technique Valuation hierarchy classification(s) Derivatives (continued) We have several customized derivative instruments and risk participations that are classified as Level 3 instruments. These derivative positions are valued using internally developed models, with inputs consisting of available market data, such as: • Bond spreads and asset values The unobservable internally derived assumptions include: • Loss probabilities • Internal risk ratings of customers The fair value represents an estimate of the amount that the risk participation counterparty would need to pay/receive as of the measurement date based on the probability of customer default on the swap transaction and the fair value of the underlying customer swap. Therefore, higher (lower) loss probabilities and internal risk ratings would have resulted in a lower (higher) fair value measurement of the risk participations. A directionally similar change would have also applied to other customized derivative instruments classified as Level 3. We use interest rate lock commitments for our residential mortgage business, which are classified as Level 3 instruments. The significant components of the valuation model include: • Interest rates observable in the market • Investor supplied prices for similar securities • The probability of the loan closing (i.e. the "pull-through" amount, a significant unobservable input). Increases (decreases) in the probability of the loan closing would have resulted in higher (lower) fair value measurements. Valuation of residential mortgage forward sale commitments utilizes observable market prices of comparable commitments and mortgage securities (Level 2). Level 1, 2, and 3 (primarily level 2) Liability for short positions This includes fixed income securities held by our broker dealer in its trading inventory. Fair value of level 1 securities is determined by: • Quoted market prices available in an active market for identical securities Fair value of level 2 securities is determined by: • Observable market prices of similar securities • Market activity, spreads, credit ratings and interest rates for each security type Level 1 and 2 |
Fair Value of Direct and Indirect Investments, Related Unfunded Commitments and Financial Support Provided | The following table presents the fair value of our direct and indirect principal investments and related unfunded commitments at June 30, 2019 , as well as financial support provided for the three and six months ended June 30, 2019 , and June 30, 2018 . Financial support provided Three months ended June 30, Six months ended June 30, June 30, 2019 2019 2018 2019 2018 in millions Fair Value Unfunded Commitments Funded Commitments Funded Other Funded Commitments Funded Other Funded Commitments Funded Other Funded Commitments Funded Other INVESTMENT TYPE Direct investments $ 1 — — $ — — — — — — — Indirect investments (measured at NAV) (a) 76 $ 24 $ — — — — $ 2 — $ 1 — Total $ 77 $ 24 — $ — — — $ 2 — $ 1 — (a) Our indirect investments consist of buyout funds, venture capital funds, and fund of funds. These investments are generally not redeemable. Instead, distributions are received through the liquidation of the underlying investments of the fund. An investment in any one of these funds typically can be sold only with the approval of the fund’s general partners. At June 30, 2019 , no significant liquidation of the underlying investments has been communicated to Key. The purpose of funding our capital commitments to these investments is to allow the funds to make additional follow-on investments and pay fund expenses until the fund dissolves. We, and all other investors in the fund, are obligated to fund the full amount of our respective capital commitments to the fund based on our and their respective ownership percentages, as noted in the applicable Limited Partnership Agreement. |
Change in Fair Values of Level 3 Financial Instruments | The following table shows the components of the change in the fair values of our Level 3 financial instruments measured at fair value on a recurring basis for the three and six months ended June 30, 2019 , and June 30, 2018 . in millions Beginning of Period Balance Gains (Losses) Included in Other Comprehensive Income Gains (Losses) Included in Earnings Purchases Sales Settlements Transfers Other Transfers into Level 3 Transfers out of Level 3 End of Period Balance Unrealized Gains (Losses) Included in Earnings Six months ended June 30, 2019 Securities available for sale Other securities $ 20 $ 15 — — — — — — (24 ) $ 11 — Other investments Principal investments Direct 1 — — $ — $ — — — — — 1 — Equity investments Direct 7 — (1 ) — — — — $ 1 — 7 — Loans held for sale (residential) — — — — (1 ) — $ 1 — — — — Loans, net of unearned income (residential) 3 — — — — — — — — 3 — Derivative instruments (b) Interest rate 5 — $ 3 (c) — — — — 2 (d) $ (6 ) (d) 4 — Credit — — — (1 ) — — — — — (1 ) — Other (e) 3 — — — — — 3 — — 6 — Three months ended June 30, 2019 Securities available for sale Other securities $ 25 $ 10 — — — — — — $ (24 ) $ 11 — Other investments Principal investments Direct 1 — $ — (1 ) 1 — — — — 1 — Other indirect — — — — — — — — — — — Equity investments Direct 8 — (1 ) — — — — — — 7 — Loans held for sale (residential) 1 — — — (1 ) — — — — — — Loans, net of unearned income (residential) 3 — — — — — — — — 3 — Derivative instruments (b) Interest rate 3 — 2 (c) — — — — — (d) (1 ) (d) 4 — Credit (1 ) — — — — $ — — — — (1 ) — Other (e) 4 — — — — — 2 — — 6 — in millions Beginning of Period Balance Gains (Losses) Included in Other Comprehensive Income Gains (Losses) Included in Earnings Purchases Sales Settlements Transfers Other Transfers into Level 3 Transfers out of Level 3 End of Period Balance Unrealized Gains (Losses) Included in Earnings Six months ended June 30, 2018 Securities available for sale Other securities $ 20 — — — — — — — — $ 20 — Other investments Principal investments Direct 13 — — $ 1 $ (1 ) — — — — 13 $ 1 (a) Equity investments Direct 3 — — — — — — $ 4 — 7 — Loans held for sale (residential) 1 — — — (1 ) — — — — — — Loans, net of unearned income (residential) 2 — — — — — $ 1 — — 3 — Derivative instruments (b) Interest rate 9 — $ (2 ) (c) 1 (2 ) — — 4 (d) $ (5 ) (d) 5 — Credit 1 — (20 ) (c) — — $ 10 — — — (9 ) — Other (e) 3 — — — — — $ — — — 3 — Three months ended June 30, 2018 Securities available for sale Other securities $ 20 — — — — — — — — $ 20 — Other investments Principal investments Direct 12 — $ 1 (a) $ 1 $ (1 ) — — — — 13 $ 2 (a) Equity investments Direct 7 — — — — — — — — 7 — Loans held for sale (residential) 1 — — — (1 ) — — — — — — Loans, net of unearned income (residential) 2 — — — — — $ 1 — — 3 — Derivative instruments (b) Interest rate 4 — (1 ) (c) — (2 ) — — $ 4 (d) — 5 — Credit — — (15 ) (c) — — $ 6 — — — (9 ) — Other (e) 3 — — — — — — — — 3 — (a) Realized and unrealized gains and losses on principal investments are reported in “other income” on the income statement. (b) Amounts represent Level 3 derivative assets less Level 3 derivative liabilities. (c) Realized and unrealized gains and losses on derivative instruments are reported in “corporate services income” and “other income” on the income statement. (d) Certain derivatives previously classified as Level 2 were transferred to Level 3 because Level 3 unobservable inputs became significant. Certain derivatives previously classified as Level 3 were transferred to Level 2 because Level 3 unobservable inputs became less significant. (e) Amounts represent Level 3 interest rate lock commitments. |
Assets and Liabilities Measured at Fair Value on Nonrecurring Basis | The following table presents our assets measured at fair value on a nonrecurring basis at June 30, 2019 , and December 31, 2018 : June 30, 2019 December 31, 2018 in millions Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total ASSETS MEASURED ON A NONRECURRING BASIS Impaired loans and leases — $ — $ 57 $ 57 — — $ 42 $ 42 Accrued income and other assets — — 21 21 — — 16 16 Total assets on a nonrecurring basis at fair value — $ — $ 78 $ 78 — — $ 58 $ 58 |
Quantitative Information about Level 3 Fair Value Measurements | The following table describes the significant unobservable inputs of our level 3 recurring and nonrecurring assets and liabilities: June 30, 2019 Level 3 Asset (Liability) Valuation Technique Significant Unobservable Input Range (Weighted-Average) (b), (c) dollars in millions Recurring Securities available-for-sale: Other securities $ 11 Discounted cash flows Discount rate N/A (15.95%) Marketability discount N/A (30.00%) Volatility factor N/A (38.00%) Other investments: (a) Equity investments Direct 7 Discounted cash flows Discount rate 14.81 - 16.78% (15.06%) Marketability discount N/A (30.00%) Volatility factor N/A (49.00%) Loans, net of unearned income (residential) 3 Market comparable pricing Comparability factor 78.57 - 95.75% (90.40%) Derivative instruments: Interest rate 4 Discounted cash flows Probability of default .02 - 100% (2.10%) Internal risk rating 1 - 19 (9.021) Loss given default 0 - 1 (.492) Credit (1 ) Discounted cash flows Probability of default .02 - 100% (2.36%) Internal risk rating 1 - 19 (9.134) Loss given default 0 - 1 (.50) Other (d) 6 Discounted cash flows Loan closing rates 36.70 - 99.15% (74.62%) Nonrecurring Impaired loans $ 57 Fair value of underlying collateral Discount rate 0 - 80.00% (17.00%) Accrued income and other assets: OREO and other Level 3 assets (e) $ 18 Appraised value Appraised value N/M December 31, 2018 Level 3 Asset (Liability) Valuation Technique Significant Unobservable Input Range (Weighted-Average (b)(c) ) dollars in millions Nonrecurring Impaired loans $ 42 Fair value of underlying collateral Discount rate 20.00 - 40.00% (21.00%) (a) Principal investments, direct is excluded from this table as the balance at June 30, 2019 , is insignificant (less than $1 million ). (b) The weighted average of significant unobservable inputs is calculated using a weighting relative to fair value. (c) For significant unobservable inputs with no range, a single figure is reported to denote the single quantitative factor used. (d) Amounts represent interest rate lock commitments. (e) Excludes balances pertaining to mortgage servicing assets. Refer to Note 9. Mortgage Servicing Assets for significant unobservable inputs pertaining to these assets. |
Fair Value Disclosures of Financial Instruments | The levels in the fair value hierarchy ascribed to our financial instruments and the related carrying amounts at June 30, 2019 , and December 31, 2018 , are shown in the following tables. Assets and liabilities are further arranged by measurement category. June 30, 2019 Fair Value in millions Carrying Amount Level 1 Level 2 Level 3 Measured at NAV Netting Adjustment Total ASSETS (by measurement category) Fair value - net income Trading account assets (b) $ 1,005 $ — $ 1,005 — — — $ 1,005 Other investments (b) 632 — — $ 547 $ 85 — 632 Loans, net of unearned income (residential) (d) 3 — — 3 — — 3 Loans held for sale (residential) (b) 164 — 164 — — — 164 Derivative assets - trading (b) 715 41 1,065 11 — $ (402 ) (f) 715 Fair value - OCI Securities available for sale (b) 21,528 — 21,517 $ 11 — — 21,528 Derivative assets - hedging (b)(g) 94 — 105 — — (11 ) (f) 94 Amortized cost Held-to-maturity securities (c) 10,878 — 10,899 — — — 10,899 Loans, net of unearned income (d) 91,044 — — 89,803 — — 89,803 Loans held for sale (b) 1,626 — — 1,626 — — 1,626 Other Cash and short-term investments (a) 3,050 3,050 — — — — 3,050 LIABILITIES (by measurement category) Fair value - net income Derivative liabilities - trading (b) $ 216 $ 33 $ 490 1 — $ (308 ) (f) $ 216 Fair value - OCI Derivative liabilities - hedging (b)(g) 1 2 10 — — (11 ) (f) 1 Amortized cost Time deposits (e) 13,608 — 13,716 — — — 13,716 Short-term borrowings (a) 881 7 874 — — — 881 Long-term debt (e) 14,312 13,557 1,229 — — — 14,786 Other Deposits with no stated maturity (a) 96,338 — 96,338 — — — 96,338 December 31, 2018 Fair Value in millions Carrying Amount Level 1 Level 2 Level 3 Measured at NAV Netting Adjustment Total ASSETS (by measurement category) Fair value - net income Trading account assets (b) $ 849 — $ 849 — — — $ 849 Other investments (b) 666 — 1 $ 559 $ 106 — 666 Loans, net of unearned income (residential) (d) 3 — — 3 — — 3 Loans held for sale (residential) (b) 54 — 54 — — — 54 Derivative assets - trading (b) 462 $ 68 736 8 — $ (350 ) (f) 462 Fair value - OCI Securities available for sale (b) 19,428 — 19,408 20 — — 19,428 Derivative assets - hedging (b)(g) 69 2 50 — — 17 (f) 69 Amortized cost Held-to-maturity securities (c) 11,519 — 11,122 — — — 11,122 Loans, net of unearned income (d) 88,666 — — 86,224 — — 86,224 Loans held for sale (b) 1,173 — — 1,173 — — 1,173 Other Cash and short-term investments (a) 3,240 3,240 — — — — 3,240 LIABILITIES (by measurement category) Fair value - net income Derivative liabilities - trading (b) $ 395 $ 58 $ 675 — — $ (338 ) (f) $ 395 Fair value - OCI Derivative liabilities - hedging (b)(g) (9 ) — (10 ) — — 1 (f) (9 ) Amortized cost Time deposits (e) 13,245 — 13,331 — — — 13,331 Short-term borrowings (a) 863 14 849 — — — 863 Long-term debt (e) 13,732 12,576 1,211 — — — 13,787 Other Deposits with no stated maturity (a) 94,064 — 94,064 — — — 94,064 Valuation Methods and Assumptions (a) Fair value equals or approximates carrying amount. The fair value of deposits with no stated maturity does not take into consideration the value ascribed to core deposit intangibles. (b) Information pertaining to our methodology for measuring the fair values of these assets and liabilities is included in the sections entitled “Qualitative Disclosures of Valuation Techniques” and “Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis” in this Note. Investments accounted for under the cost method (or cost less impairment adjusted for observable price changes for certain equity investments) are classified as Level 3 assets. These investments are not actively traded in an open market as sales for these types of investments are rare. The carrying amount of the investments carried at cost are adjusted for declines in value if they are considered to be other-than-temporary (or due to observable orderly transactions of the same issuer for equity investments eligible for the cost less impairment measurement alternative). These adjustments are included in “other income” on the income statement. (c) Fair values of held-to-maturity securities are determined by using models that are based on security-specific details, as well as relevant industry and economic factors. The most significant of these inputs are quoted market prices, interest rate spreads on relevant benchmark securities, and certain prepayment assumptions. We review the valuations derived from the models to ensure that they are reasonable and consistent with the values placed on similar securities traded in the secondary markets. (d) The fair value of loans is based on the present value of the expected cash flows. The projected cash flows are based on the contractual terms of the loans, adjusted for prepayments and use of a discount rate based on the relative risk of the cash flows, taking into account the loan type, maturity of the loan, liquidity risk, servicing costs, and a required return on debt and capital. In addition, an incremental liquidity discount is applied to certain loans, using historical sales of loans during periods of similar economic conditions as a benchmark. The fair value of loans includes lease financing receivables at their aggregate carrying amount, which is equivalent to their fair value. (e) Fair values of time deposits and long-term debt are based on discounted cash flows utilizing relevant market inputs. (f) Netting adjustments represent the amounts recorded to convert our derivative assets and liabilities from a gross basis to a net basis in accordance with the applicable accounting guidance. The net basis takes into account the impact of bilateral collateral and master netting agreements that allow us to settle all derivative contracts with a single counterparty on a net basis and to offset the net derivative position with the related cash collateral. Total derivative assets and liabilities include these netting adjustments. (g) Derivative assets-hedging and derivative liabilities-hedging includes both cash flow and fair value hedges. Additional information regarding our accounting policies for cash flow and fair value hedges is provided in Note 1 (“ 1. Summary of Significant Accounting Policies ”) under the heading “Derivatives and Hedging” beginning on page 103 of our 2018 Form 10-K. |
Securities (Tables)
Securities (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Details of Securities | The amortized cost, unrealized gains and losses, and approximate fair value of our securities available for sale and held-to-maturity securities are presented in the following tables. Gross unrealized gains and losses represent the difference between the amortized cost and the fair value of securities on the balance sheet as of the dates indicated. Accordingly, the amount of these gains and losses may change in the future as market conditions change. June 30, 2019 December 31, 2018 in millions Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value SECURITIES AVAILABLE FOR SALE U.S. Treasury, agencies, and corporations $ 272 — — $ 272 $ 150 — $ 3 $ 147 States and political subdivisions 5 — — 5 7 — — 7 Agency residential collateralized mortgage obligations 13,593 $ 111 $ 92 13,612 14,315 $ 20 373 13,962 Agency residential mortgage-backed securities 2,035 36 10 2,061 2,128 13 36 2,105 Agency commercial mortgage-backed securities 5,472 128 57 5,543 3,300 19 132 3,187 Other securities 17 18 — 35 17 3 — 20 Total securities available for sale $ 21,394 $ 293 $ 159 $ 21,528 $ 19,917 $ 55 $ 544 $ 19,428 HELD-TO-MATURITY SECURITIES Agency residential collateralized mortgage obligations $ 6,435 $ 28 $ 59 $ 6,404 $ 7,021 $ 2 $ 254 $ 6,769 Agency residential mortgage-backed securities 456 2 1 457 490 — 14 476 Agency commercial mortgage-backed securities 3,972 64 13 4,023 3,996 2 133 3,865 Other securities 15 — — 15 12 — — 12 Total held-to-maturity securities $ 10,878 $ 94 $ 73 $ 10,899 $ 11,519 $ 4 $ 401 $ 11,122 |
Schedule of Unrealized Loss on Investments | The following table summarizes our securities that were in an unrealized loss position as of June 30, 2019 , and December 31, 2018 . Duration of Unrealized Loss Position Less than 12 Months 12 Months or Longer Total in millions Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses June 30, 2019 Securities available for sale: U.S Treasury, agencies, and corporations $ 10 — $ 45 — $ 55 — Agency residential collateralized mortgage obligations 183 $ 1 6,941 $ 91 7,124 $ 92 Agency residential mortgage-backed securities 1 — (a) 996 10 997 10 Agency commercial mortgage-backed securities — — 1,779 57 1,779 57 Held-to-maturity securities: Agency residential collateralized mortgage obligations — — 3,941 59 3,941 59 Agency residential mortgage-backed securities 58 — (a) 81 1 139 1 Agency commercial mortgage-backed securities — — 514 13 514 13 Other securities 7 — (a) — — 7 — Total temporarily impaired securities $ 259 $ 1 $ 14,298 $ 231 $ 14,557 $ 232 December 31, 2018 Securities available for sale: U.S. Treasury, agencies, and corporations — — $ 147 $ 3 $ 147 $ 3 Agency residential collateralized mortgage obligations $ 570 $ 2 10,945 371 11,515 373 Agency residential mortgage-backed securities 4 — (b) 1,087 36 1,091 36 Agency commercial mortgage-backed securities — — 1,729 132 1,729 132 Held-to-maturity securities: Agency residential collateralized mortgage obligations — — 6,416 254 6,416 254 Agency residential mortgage-backed securities — — 475 14 475 14 Agency commercial mortgage-backed securities 73 — (b) 3,359 133 3,432 133 Total temporarily impaired securities $ 647 $ 2 $ 24,158 $ 943 $ 24,805 $ 945 (a) At June 30, 2019 , gross unrealized losses totaled less than $1 million for agency residential mortgage-backed securities available for sale and less than $1 million for agency residential mortgage-back securities and other securities held-to-maturity securities with a loss duration of less than 12 months. (b) At December 31, 2018 , gross unrealized losses totaled less than $1 million for agency residential mortgage-backed securities available for sale with a loss duration of less than 12 months and less than $1 million for agency commercial mortgage-backed securities held-to-maturity with a loss duration of less than 12 months. |
Securities by Maturity | The following table shows our securities by remaining maturity. CMOs and other mortgage-backed securities in the available for sale portfolio and held-to-maturity portfolio are presented based on their expected average lives. The remaining securities, in both the available-for-sale and held-to-maturity portfolios, are presented based on their remaining contractual maturity. Actual maturities may differ from expected or contractual maturities since borrowers have the right to prepay obligations with or without prepayment penalties. June 30, 2019 Securities Available for Sale Held to Maturity Securities in millions Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ 360 $ 378 $ 41 $ 41 Due after one through five years 16,532 16,535 7,605 7,590 Due after five through ten years 4,493 4,606 3,232 3,268 Due after ten years 9 9 — — Total $ 21,394 $ 21,528 $ 10,878 $ 10,899 |
Derivatives and Hedging Activ_2
Derivatives and Hedging Activities (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Values, Volume of Activity and Gain (Loss) Information Related to Derivative Instruments | The following table summarizes the fair values of our derivative instruments on a gross and net basis as of June 30, 2019 , and December 31, 2018 . The derivative asset and liability balances are presented on a gross basis, prior to the application of bilateral collateral and master netting agreements, but after the variation margin payments with central clearing organizations have been applied as settlement, as applicable. Total derivative assets and liabilities are adjusted to take into account the impact of legally enforceable master netting agreements that allow us to settle all derivative contracts with a single counterparty on a net basis and to offset the net derivative position with the related cash collateral. Securities collateral related to legally enforceable master netting agreements is not offset on the balance sheet. Our derivative instruments are included in “accrued income and other assets” or “accrued expenses and other liabilities” on the balance sheet, as follows: June 30, 2019 December 31, 2018 Fair Value Fair Value in millions Notional Amount Derivative Assets Derivative Liabilities Notional Amount Derivative Assets Derivative Liabilities Derivatives designated as hedging instruments: Interest rate $ 37,147 $ 105 $ 10 $ 28,546 $ 50 $ (10 ) Foreign exchange 122 — 2 122 2 — Total 37,269 105 12 28,668 52 (10 ) Derivatives not designated as hedging instruments: Interest rate 68,202 784 210 63,454 365 307 Foreign exchange 5,702 70 62 6,829 104 95 Commodity 6,662 246 236 2,002 333 323 Credit 453 1 3 226 1 1 Other (a) 4,483 16 13 1,466 9 7 Total 85,502 1,117 524 73,977 812 733 Netting adjustments (b) — (413 ) (319 ) — (333 ) (337 ) Net derivatives in the balance sheet 122,771 809 217 102,645 531 386 Other collateral (c) — (3 ) (46 ) — (2 ) (33 ) Net derivative amounts $ 122,771 $ 806 $ 171 $ 102,645 $ 529 $ 353 (a) Other derivatives include interest rate lock commitments and forward sale commitments related to our residential mortgage banking activities, forward purchase and sales contracts consisting of contractual commitments associated with “to be announced” securities and when-issued securities, and other customized derivative contracts. (b) Netting adjustments represent the amounts recorded to convert our derivative assets and liabilities from a gross basis to a net basis in accordance with the applicable accounting guidance. (c) Other collateral represents the amount that cannot be used to offset our derivative assets and liabilities from a gross basis to a net basis in accordance with the applicable accounting guidance. The other collateral consists of securities and is exchanged under bilateral collateral and master netting agreements that allow us to offset the net derivative position with the related collateral. The application of the other collateral cannot reduce the net derivative position below zero. Therefore, excess other collateral, if any, is not reflected above. |
Pre-Tax Net Gains (Losses) on Fair Value Hedges | The following tables summarize the amounts that were recorded on the balance sheet as of June 30, 2019 , and December 31, 2018 , related to cumulative basis adjustments for fair value hedges. June 30, 2019 in millions Balance sheet line item in which the hedge item is included Carrying amount of hedged item (a) Hedge accounting basis adjustment (b) Interest rate contracts Long-term debt $ 9,559 $ 237 Interest rate contracts Certificate of deposit ($100,000 or more) 194 — Interest rate contracts Other time deposits 175 — December 31, 2018 Balance sheet line item in which the hedge item is included Carrying amount of hedged item (a) Hedge accounting basis adjustment (b) Interest rate contracts Long-term debt $ 9,363 $ (6 ) Interest rate contracts Certificate of deposit ($100,000 or more) 343 (1 ) Interest rate contracts Other time deposits 178 — (a) The carrying amount represents the portion of the liability designated as the hedged item. (b) Basis adjustments related to de-designated hedged items that no longer qualify as fair value hedges reduced the hedge accounting basis adjustment by $10 million and $10 million at June 30, 2019 , and December 31, 2018 , respectively, |
Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location | The following tables summarize the effect of fair value and cash flow hedge accounting on the income statement for the three- and six- month periods ended June 30, 2019 , and June 30, 2018 . Location and amount of net gains (losses) recognized in income on fair value and cash flow hedging relationships in millions Interest expense – long-term debt Interest income – loans Interest expense - deposits Other income Three months ended June 30, 2019 Total amounts presented in the consolidated statement of income $ (120 ) $ 1,082 $ (223 ) $ 17 Net gains (losses) on fair value hedging relationships Interest contracts Recognized on hedged items (152 ) — (1 ) — Recognized on derivatives designated as hedging instruments 142 — — — Net income (expense) recognized on fair value hedges $ (10 ) — (1 ) — Net gain (loss) on cash flow hedging relationships Interest contracts Realized gains (losses) (pre-tax) reclassified from AOCI into net income $ — $ (19 ) — — Net income (expense) recognized on cash flow hedges $ — $ (19 ) — — Three months ended June 30, 2018 Total amounts presented in the consolidated statement of income $ (102 ) $ 1,000 $ (112 ) $ 99 Net gains (losses) on fair value hedging relationships Interest contracts Recognized on hedged items $ 22 — $ 1 — Recognized on derivatives designated as hedging instruments (25 ) — — — Net income (expense) recognized on fair value hedges $ (3 ) — $ 1 — Net gain (loss) on cash flow hedging relationships Interest contracts Realized gains (losses) (pre-tax) reclassified from AOCI into net income $ 1 $ (25 ) — — Net income (expense) recognized on cash flow hedges $ 1 $ (25 ) — — Location and amount of net gains (losses) recognized in income on fair value and cash flow hedging relationships in millions Interest expense – long-term debt Interest income – loans Interest expense - deposits Other income Six months ended June 30, 2019 Total amounts presented in the consolidated statement of income $ (240 ) $ 2,148 $ (425 ) $ 27 Net gains (losses) on fair value hedging relationships Interest contracts Recognized on hedged items (245 ) — (1 ) — Recognized on derivatives designated as hedging instruments 224 — — — Net income (expense) recognized on fair value hedges $ (21 ) — (1 ) — Net gain (loss) on cash flow hedging relationships Interest contracts Realized gains (losses) (pre-tax) reclassified from AOCI into net income $ (1 ) $ (43 ) — — Net income (expense) recognized on cash flow hedges $ (1 ) $ (43 ) — — Six months ended June 30, 2018 Total amounts presented in the consolidated statement of income $ (194 ) $ 1,940 $ (203 ) $ 120 Net gains (losses) on fair value hedging relationships Interest contracts Recognized on hedged items $ 93 — $ 1 — Recognized on derivatives designated as hedging instruments (94 ) — — — Net income (expense) recognized on fair value hedges $ (1 ) — $ 1 — Net gain (loss) on cash flow hedging relationships Interest contracts Realized gains (losses) (pre-tax) reclassified from AOCI into net income — $ (27 ) — — Net income (expense) recognized on cash flow hedges — $ (27 ) — — |
Derivative Instrument Cash Flow Hedge Earning Recognized by Income Statement Location | The following tables summarize the pre-tax net gains (losses) on our cash flow and net investment hedges for the three- and six- month periods ended June 30, 2019 , and June 30, 2018 , and where they are recorded on the income statement. The table includes net gains (losses) recognized in OCI during the period and net gains (losses) reclassified from OCI into income during the current period. in millions Net Gains (Losses) Recognized in OCI Income Statement Location of Net Gains (Losses) Reclassified From OCI Into Income Net Gains (Losses) Reclassified From OCI Into Income Three months ended June 30, 2019 Cash Flow Hedges Interest rate $ 270 Interest income — Loans $ (19 ) Interest rate (2 ) Interest expense — Long-term debt — Interest rate (1 ) Investment banking and debt placement fees — Net Investment Hedges Foreign exchange contracts (1 ) Other Income — Total $ 266 $ (19 ) Three months ended June 30, 2018 Cash Flow Hedges Interest rate $ (58 ) Interest income — Loans $ (25 ) Interest rate 2 Interest expense — Long-term debt 1 Interest rate 1 Investment banking and debt placement fees — Net Investment Hedges Foreign exchange contracts 10 Other Income — Total $ (45 ) $ (24 ) in millions Net Gains (Losses) Recognized in OCI Income Statement Location of Net Gains (Losses) Reclassified From OCI Into Income Net Gains (Losses) Reclassified From OCI Into Income (a) Six months ended June 30, 2019 Cash Flow Hedges Interest rate $ 385 Interest income — Loans $ (43 ) Interest rate (3 ) Interest expense — Long-term debt (1 ) Interest rate (6 ) Investment banking and debt placement fees — Net Investment Hedges Foreign exchange contracts (4 ) Other Income — Total $ 372 $ (44 ) Six months ended June 30, 2018 Cash Flow Hedges Interest rate $ (146 ) Interest income — Loans $ (27 ) Interest rate 4 Interest expense — Long-term debt — Interest rate 1 Investment banking and debt placement fees — Net Investment Hedges Foreign exchange contracts 10 Other Income — Total $ (131 ) $ (27 ) |
Pre-Tax Net Gains (Losses) on Derivatives Not Designated as Hedging Instruments | The following table summarizes the pre-tax net gains (losses) on our derivatives that are not designated as hedging instruments for the three- and six- month periods ended June 30, 2019 , and June 30, 2018 , and where they are recorded on the income statement. Three months ended June 30, 2019 Three months ended June 30, 2018 in millions Corporate services income Consumer mortgage income Other income Total Corporate services income Consumer mortgage income Other income Total NET GAINS (LOSSES) Interest rate $ 7 — $ — $ 7 $ 11 — — $ 11 Foreign exchange 11 — — 11 11 — — 11 Commodity 2 — — 2 3 — — 3 Credit — — (8 ) (8 ) — — $ (14 ) (14 ) Other — — 2 2 — — 16 16 Total net gains (losses) $ 20 — $ (6 ) $ 14 $ 25 — $ 2 $ 27 Six months ended June 30, 2019 Six months ended June 30, 2018 in millions Corporate services income Consumer mortgage income Other income Total Corporate services income Consumer mortgage income Other income Total NET GAINS (LOSSES) Interest rate $ 15 $ — $ (2 ) $ 13 $ 20 — $ 2 $ 22 Foreign exchange 21 — — 21 22 — — 22 Commodity 3 — — 3 6 — — 6 Credit 1 — (15 ) (14 ) 2 — (19 ) (17 ) Other — — 3 3 — $ — 12 12 Total net gains (losses) $ 40 $ — $ (14 ) $ 26 $ 50 $ — $ (5 ) $ 45 |
Fair Value of Derivative Assets by Type | The following table summarizes the fair value of our derivative assets by type at the dates indicated. These assets represent our gross exposure to potential loss after taking into account the effects of bilateral collateral and master netting agreements and other means used to mitigate risk. in millions June 30, 2019 December 31, 2018 Interest rate $ 793 $ 308 Foreign exchange 36 60 Commodity 124 187 Credit — — Other 16 9 Derivative assets before collateral 969 564 Less: Related collateral 160 33 Total derivative assets $ 809 $ 531 |
Credit Derivatives Sold and Held | The following table provides information on the types of credit derivatives sold by us and held on the balance sheet at June 30, 2019 , and December 31, 2018 . The sold credit derivatives represented in the following table include only Risk Participation Agreements; there were no traded indexes sold. The notional amount represents the maximum amount that the seller could be required to pay. The payment/performance risk assessment at June 30, 2019 , is based on the internal probability of default of the reference entity consistent with our Fair Value Methodology. The payment/performance risk shown in the table represents a weighted-average of the default probabilities for all reference entities. These default probabilities are directly correlated to the probability that we will have to make a payment under the credit derivative contracts. June 30, 2019 December 31, 2018 dollars in millions Notional Amount Average Term (Years) Payment / Performance Risk Notional Amount Average Term (Years) Payment / Performance Risk Other $ 126 13.84 2.50 % $ 22 13.43 17.18 % Total credit derivatives sold $ 126 — — $ 22 — — |
Credit Risk Contingent Feature | The following table summarizes the additional cash and securities collateral that KeyBank would have been required to deliver under the ISDA Master Agreements had the credit risk contingent features been triggered for the derivative contracts in a net liability position as of June 30, 2019 , and December 31, 2018 . The additional collateral amounts were calculated based on scenarios under which KeyBank’s ratings are downgraded one, two, or three ratings as of June 30, 2019 , and December 31, 2018 , and take into account all collateral already posted. A similar calculation was performed for KeyCorp, and no additional collateral would have been required as of June 30, 2019 , and December 31, 2018 . For more information about the credit ratings for KeyBank and KeyCorp, see the discussion under the heading “Factors affecting liquidity” in the section entitled “Liquidity risk management” in Item 2 of this report. June 30, 2019 December 31, 2018 in millions Moody’s S&P Moody’s S&P KeyBank’s long-term senior unsecured credit ratings A3 A- A3 A- One rating downgrade $ — $ — $ 2 $ 2 Two rating downgrades — — 2 2 Three rating downgrades — — 2 2 |
Mortgage Servicing Assets (Tabl
Mortgage Servicing Assets (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Servicing Asset [Abstract] | |
Changes in Carrying Amount of Mortgage Servicing Assets | Changes in the carrying amount of residential mortgage servicing assets are summarized as follows: Three months ended June 30, Six months ended June 30, in millions 2019 2018 2019 2018 Balance at beginning of period $ 38 $ 32 $ 37 $ 31 Servicing retained from loan sales 2 3 4 5 Purchases — — — — Amortization (1 ) (1 ) (2 ) (2 ) Balance at end of period $ 39 $ 34 $ 39 $ 34 Fair value at end of period $ 45 $ 43 $ 45 $ 43 Changes in the carrying amount of commercial mortgage servicing assets are summarized as follows: Three months ended June 30, Six months ended June 30, in millions 2019 2018 2019 2018 Balance at beginning of period $ 497 $ 435 $ 502 $ 412 Servicing retained from loan sales 23 29 41 56 Purchases 17 12 23 33 Amortization (28 ) (25 ) (57 ) (50 ) Balance at end of period $ 509 $ 451 $ 509 $ 451 Fair value at end of period $ 723 $ 646 $ 723 $ 646 |
Schedule of Range and Weighted-Average of Significant Unobservable Inputs | The range and weighted average of the significant unobservable inputs used to determine the fair value of our commercial mortgage servicing assets at June 30, 2019 , and June 30, 2018 , along with the valuation techniques, are shown in the following table: dollars in millions June 30, 2019 June 30, 2018 Valuation Technique Significant Unobservable Input Range (Weighted Average) Discounted cash flow Expected defaults 1.00 - 2.00% (1.13%) 1.00 - 3.00% (1.17%) Residual cash flows discount rate 7.00 - 11.54% (9.26%) 7.00 - 15.00% (9.06%) Escrow earn rate 1.92 - 3.13% (2.63%) 2.40 - 3.82% (3.10%) Loan assumption rate 0.00 - 3.02% (1.40%) 0.00 - 3.00% (1.19%) June 30, 2019 , and June 30, 2018 , along with the valuation techniques, are shown in the following table: dollars in millions June 30, 2019 June 30, 2018 Valuation Technique Significant Unobservable Input Range (Weighted Average) Discounted cash flow Prepayment speed 10.95 - 62.06% (12.52%) 8.39 - 49.39% (9.17%) Discount rate 7.50 - 10.00% (7.53%) 8.50 - 11.00% (8.54%) Servicing cost $62 - $4,375 ($67.55) $76 - $4,385 ($82.38) |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Components of Lease Expense | Information pertaining to the lease term and weighted-average discount rate is summarized as follows: June 30, 2019 Weighted-average remaining lease term: Operating leases 7.8 Finance leases 6.44 Weighted-average discount rate: Operating leases 3.28 % Finance leases 3.90 % in millions Three months ended June 30, 2019 Six months ended June 30, 2019 Operating lease cost $ 34 $ 68 Finance lease cost: Amortization of right-of-use assets 1 1 Variable lease cost 6 11 Total lease cost (a), (b) $ 41 $ 80 (a) Interest on lease liabilities for finance leases was less than $1 million for the three and six months ended June 30, 2019 . (b) Short-term lease cost was less than less than $1 million for the three and six months ended June 30, 2019 . |
Summary of Cash Flows Related to Leases | Cash flows related to leases are summarized as follows: in millions Three months ended June 30, 2019 Six months ended June 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: (a) Operating cash flows from operating leases $ 37 $ 73 Financing cash flows from finance leases 1 1 Right-of-use assets obtained in exchange for lease obligations: (b) Operating leases $ 16 $ 44 (a) Operating cash flows from finance leases were less than $1 million for the three and six months ended June 30, 2019 . (b) There were no right-of-use assets obtained in exchange for finance lease obligations for the three and six months ended June 30, 2019 . |
Summary of Additional Balance Sheet Information Related to Leases | Additional balance sheet information related to leases is summarized as follows: in millions Balance sheet classification June 30, 2019 Operating lease assets Accrued income and other assets $ 695 Operating lease liabilities Accrued expense and other liabilities 775 Finance leases: Property and equipment, gross Premises and equipment 28 Accumulated depreciation Premises and equipment (16 ) Property and equipment, net 12 Finance lease liabilities Long-term debt 15 |
Finance Lease, Maturities of Lease Liabilities | Maturities of lease liabilities are summarized as follows: in millions Operating Leases Finance Leases Total 2019 $ 72 $ 2 $ 74 2020 141 3 144 2021 127 3 130 2022 111 3 114 2023 95 2 97 Thereafter 339 5 344 Total lease payments 885 18 903 Less imputed interest 110 3 113 Total $ 775 $ 15 $ 790 |
Lessee, Operating Lease, Maturities of Lease Liabilities | Maturities of lease liabilities are summarized as follows: in millions Operating Leases Finance Leases Total 2019 $ 72 $ 2 $ 74 2020 141 3 144 2021 127 3 130 2022 111 3 114 2023 95 2 97 Thereafter 339 5 344 Total lease payments 885 18 903 Less imputed interest 110 3 113 Total $ 775 $ 15 $ 790 |
Operating Lease, Lease Income | The components of equipment leasing income are summarized in the table below: in millions Three months ended June 30, 2019 Six months ended June 30, 2019 Sales-type and direct financing leases Interest income on lease receivable $ 31 $ 61 Interest income related to accretion of unguaranteed residual asset 3 6 Interest income on deferred fees and costs — — Total sales-type and direct financing lease income 34 67 Operating leases Operating lease income related to lease payments 33 66 Other operating leasing gains 11 15 Total operating lease income and other leasing gains 44 81 Total lease income $ 78 $ 148 |
Sales-type Lease, Lease Income | The components of equipment leasing income are summarized in the table below: in millions Three months ended June 30, 2019 Six months ended June 30, 2019 Sales-type and direct financing leases Interest income on lease receivable $ 31 $ 61 Interest income related to accretion of unguaranteed residual asset 3 6 Interest income on deferred fees and costs — — Total sales-type and direct financing lease income 34 67 Operating leases Operating lease income related to lease payments 33 66 Other operating leasing gains 11 15 Total operating lease income and other leasing gains 44 81 Total lease income $ 78 $ 148 |
Direct Financing Lease, Lease Income | The components of equipment leasing income are summarized in the table below: in millions Three months ended June 30, 2019 Six months ended June 30, 2019 Sales-type and direct financing leases Interest income on lease receivable $ 31 $ 61 Interest income related to accretion of unguaranteed residual asset 3 6 Interest income on deferred fees and costs — — Total sales-type and direct financing lease income 34 67 Operating leases Operating lease income related to lease payments 33 66 Other operating leasing gains 11 15 Total operating lease income and other leasing gains 44 81 Total lease income $ 78 $ 148 |
Composition of Net Investment in Sales-Type and Direct Financing Leases | The composition of the net investment in sales-type and direct financing leases is as follows: in millions June 30, 2019 Lease receivables $ 3,689 Unearned income (345 ) Unguaranteed residual value 430 Deferred fees and costs 17 Net investment in sales-type and direct financing leases $ 3,791 |
Minimum Future Lease Payments to be Received for Sales-Type and Direct Financing Leases | At June 30, 2019 , minimum future lease payments to be received for sales-type and direct financing leases are as follows: in millions Sales-type and direct financing lease payments 2019 $ 640 2020 1,008 2021 731 2022 493 2023 318 Thereafter 499 Total lease payments $ 3,689 |
Minimum Future Lease Payments to be Received for Operating Leases | At June 30, 2019 , minimum future lease payments to be received for operating leases are as follows: in millions Operating lease payments 2019 $ 64 2020 123 2021 106 2022 90 2023 75 Thereafter 220 Total lease payments $ 678 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities Information | The assets and liabilities presented in the table below convey the size of KCDC’s direct and indirect investments at June 30, 2019 , and December 31, 2018 . As these investments represent unconsolidated VIEs, the assets and liabilities of the investments themselves are not recorded on our balance sheet. Additional information pertaining to our LIHTC investments is included in Note 12 (“ Variable Interest Entities “) beginning on page 142 of our 2018 Form 10-K. Unconsolidated VIEs in millions Total Assets Total Liabilities Maximum Exposure to Loss June 30, 2019 LIHTC investments $ 6,276 $ 2,588 $ 1,739 December 31, 2018 LIHTC investments $ 5,932 $ 2,569 $ 1,740 June 30, 2019 , and December 31, 2018 . Unconsolidated VIEs in millions Total Assets Total Liabilities Maximum Exposure to Loss June 30, 2019 Indirect investments $ 15,018 $ 286 $ 100 December 31, 2018 Indirect investments $ 19,659 $ 376 $ 122 |
Securities Financing Activiti_2
Securities Financing Activities (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Banking and Thrift [Abstract] | |
Summarized Securities Financing Agreements | The following table summarizes our securities financing agreements at June 30, 2019 , and December 31, 2018 : June 30, 2019 December 31, 2018 in millions Gross Amount Presented in Balance Sheet Netting Adjustments (a) Collateral (b) Net Amounts Gross Amount Presented in Balance Sheet Netting Adjustments (a) Collateral (b) Net Amounts Offsetting of financial assets: Reverse repurchase agreements $ 210 $ (6 ) $ (204 ) — $ 14 $ (14 ) — — Total $ 210 $ (6 ) $ (204 ) — $ 14 $ (14 ) — — Offsetting of financial liabilities: Repurchase agreements (c) $ 161 $ (6 ) $ (155 ) — $ 319 $ (14 ) $ (305 ) — Total $ 161 $ (6 ) $ (155 ) — $ 319 $ (14 ) $ (305 ) — (a) Netting adjustments take into account the impact of master netting agreements that allow us to settle with a single counterparty on a net basis. (b) These adjustments take into account the impact of bilateral collateral agreements that allow us to offset the net positions with the related collateral. The application of collateral cannot reduce the net position below zero. Therefore, excess collateral, if any, is not reflected above. (c) Repurchase agreements are collateralized by mortgaged-backed agency securities and are contracted on an overnight or continuous basis. |
Employee Benefits (Tables)
Employee Benefits (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Retirement Benefits [Abstract] | |
Net Pension Cost (Benefit) for All Funded and Unfunded Plans | The components of net pension cost (benefit) for all funded and unfunded plans are recorded in “other expense” and are summarized in the following table. For more information on our Pension Plans and Other Postretirement Benefit Plans, see Note 17 (“ Employee Benefits ”) beginning on page 151 of our 2018 Form 10-K. Three months ended June 30, Six months ended June 30, in millions 2019 2018 2019 2018 Interest cost on PBO $ 12 $ 10 $ 23 $ 20 Expected return on plan assets (12 ) (13 ) (24 ) (26 ) Amortization of losses 3 4 7 8 Net pension cost $ 3 $ 1 $ 6 $ 2 |
Trust Preferred Securities Is_2
Trust Preferred Securities Issued by Unconsolidated Subsidiaries (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Banking and Thrift [Abstract] | |
Summary of Trust Preferred Securities, Common Stock and Related Debentures | The trust preferred securities, common stock, and related debentures are summarized as follows: dollars in millions Trust Preferred Securities, Net of Discount (a) Common Stock Principal Amount of Debentures, Net of Discount (b) Interest Rate of Trust Preferred Securities and Debentures (c) Maturity of Trust Preferred Securities and Debentures June 30, 2019 KeyCorp Capital I $ 156 $ 6 $ 162 3.332 % 2028 KeyCorp Capital II 106 4 110 6.875 2029 KeyCorp Capital III 138 4 142 7.750 2029 HNC Statutory Trust III 19 1 20 3.924 2035 Willow Grove Statutory Trust I 18 1 19 3.720 2036 HNC Statutory Trust IV 16 1 17 3.863 2037 Westbank Capital Trust II 7 — 7 4.577 2034 Westbank Capital Trust III 7 — 7 4.577 2034 Total $ 467 $ 17 $ 484 5.536 % — December 31, 2018 $ 454 $ 17 $ 471 5.447 % — (a) The trust preferred securities must be redeemed when the related debentures mature, or earlier if provided in the governing indenture. Each issue of trust preferred securities carries an interest rate identical to that of the related debenture. Certain trust preferred securities include basis adjustments related to fair value hedges totaling $58 million at June 30, 2019 , and $46 million at December 31, 2018 . See Note 7 (“ Derivatives and Hedging Activities ”) for an explanation of fair value hedges. (b) We have the right to redeem these debentures. If the debentures purchased by KeyCorp Capital I, HNC Statutory Trust III, Willow Grove Statutory Trust I, HNC Statutory Trust IV, Westbank Capital Trust II, or Westbank Capital Trust III are redeemed before they mature, the redemption price will be the principal amount, plus any accrued but unpaid interest. If the debentures purchased by KeyCorp Capital II or KeyCorp Capital III are redeemed before they mature, the redemption price will be the greater of: (i) the principal amount, plus any accrued but unpaid interest, or (ii) the sum of the present values of principal and interest payments discounted at the Treasury Rate (as defined in the applicable indenture), plus 20 basis points for KeyCorp Capital II or 25 basis points for KeyCorp Capital III, or 50 basis points in the case of redemption upon either a tax or a capital treatment event for either KeyCorp Capital II or KeyCorp Capital III, plus any accrued but unpaid interest. The principal amount of certain debentures includes basis adjustments related to fair value hedges totaling $58 million at June 30, 2019 , and $46 million at December 31, 2018 . See Note 7 (“ Derivatives and Hedging Activities ”) for an explanation of fair value hedges. The principal amount of debentures, net of discounts, is included in “long-term debt” on the balance sheet. (c) The interest rates for the trust preferred securities issued by KeyCorp Capital II and KeyCorp Capital III are fixed. The trust preferred securities issued by KeyCorp Capital I have a floating interest rate, equal to three-month LIBOR plus 74 basis points, that reprices quarterly. The trust preferred securities issued by HNC Statutory Trust III have a floating interest rate, equal to three-month LIBOR plus 140 basis points, that reprices quarterly. The trust preferred securities issued by Willow Grove Statutory Trust I have a floating interest rate, equal to three-month LIBOR plus 131 basis points, that reprices quarterly. The trust preferred securities issued by HNC Statutory Trust IV have a floating interest rate, equal to three-month LIBOR plus 128 basis points, that reprices quarterly. The trust preferred securities issued by Westbank Capital Trust II and Westbank Capital Trust III each have a floating interest rate, equal to three-month LIBOR plus 219 basis points, that reprices quarterly. The total interest rates are weighted-average rates. |
Contingent Liabilities and Gu_2
Contingent Liabilities and Guarantees (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Guarantees | The following table shows the types of guarantees that we had outstanding at June 30, 2019 . Information pertaining to the basis for determining the liabilities recorded in connection with these guarantees is included in Note 1 (“ Summary of Significant Accounting Policies ”) under the heading “Guarantees” beginning on page 106 of our 2018 Form 10-K. June 30, 2019 Maximum Potential Undiscounted Future Payments Liability Recorded in millions Financial guarantees: Standby letters of credit $ 3,086 $ 73 Recourse agreement with FNMA 4,392 6 Residential mortgage reserve 1,617 6 Written put options (a) 2,854 49 Total $ 11,949 $ 134 (a) The maximum potential undiscounted future payments represent notional amounts of derivatives qualifying as guarantees. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Changes in AOCI | Our changes in AOCI for the three and six months ended June 30, 2019 , and June 30, 2018 , are as follows: in millions Unrealized gains (losses) on securities available for sale Unrealized gains (losses) on derivative financial instruments Foreign currency translation adjustment Net pension and postretirement benefit costs Total Balance at December 31, 2018 $ (373 ) $ (50 ) $ (14 ) $ (381 ) $ (818 ) Other comprehensive income before reclassification, net of income taxes 475 284 4 14 777 Amounts reclassified from AOCI, net of income taxes (a) — 34 — 5 39 Net current-period other comprehensive income, net of income taxes 475 318 4 19 816 Balance at June 30, 2019 $ 102 $ 268 $ (10 ) $ (362 ) $ (2 ) Balance at March 31, 2019 $ (189 ) $ 49 $ (11 ) $ (379 ) $ (530 ) Other comprehensive income before reclassification, net of income taxes 291 204 1 15 511 Amounts reclassified from AOCI, net of income taxes (a) — 15 — 2 17 Net current-period other comprehensive income, net of income taxes 291 219 1 17 528 Balance at June 30, 2019 $ 102 $ 268 $ (10 ) $ (362 ) $ (2 ) Balance at December 31, 2017 $ (311 ) $ (86 ) $ 9 $ (391 ) $ (779 ) Other comprehensive income before reclassification, net of income taxes (216 ) (100 ) (11 ) — (327 ) Amounts reclassified from AOCI, net of income taxes (a) — 20 — 6 26 Other amounts reclassified from AOCI, net of income taxes — — (5 ) — (5 ) Net current-period other comprehensive income, net of income taxes (216 ) (80 ) (16 ) 6 (306 ) Balance at June 30, 2018 $ (527 ) $ (166 ) $ (7 ) $ (385 ) $ (1,085 ) Balance at March 31, 2018 (461 ) $ (149 ) $ 7 $ (388 ) $ (991 ) Other comprehensive income before reclassification, net of income taxes (66 ) (35 ) (9 ) — (110 ) Amounts reclassified from AOCI, net of income taxes (a) — 18 — 3 21 Other amounts reclassified from AOCI, net of income taxes — — (5 ) — (5 ) Net current-period other comprehensive income, net of income taxes (66 ) (17 ) (14 ) 3 (94 ) Balance at June 30, 2018 $ (527 ) $ (166 ) $ (7 ) $ (385 ) $ (1,085 ) (a) See table below for details about these reclassifications. |
Reclassifications Out of AOCI | Our reclassifications out of AOCI for the three and six months ended June 30, 2019 , and June 30, 2018 , are as follows: Six months ended June 30, Affected Line Item in the Statement Where Net Income is Presented in millions 2019 2018 Unrealized gains (losses) on derivative financial instruments Interest rate $ (43 ) $ (27 ) Interest income — Loans Interest rate (1 ) — Interest expense — Long-term debt (44 ) (27 ) Income (loss) from continuing operations before income taxes (10 ) (7 ) Income taxes $ (34 ) $ (20 ) Income (loss) from continuing operations Net pension and postretirement benefit costs Amortization of losses $ (7 ) $ (8 ) Personnel expense (7 ) (8 ) Income (loss) from continuing operations before income taxes (2 ) (2 ) Income taxes $ (5 ) $ (6 ) Income (loss) from continuing operations Three months ended June 30, Affected Line Item in the Statement Where Net Income is Presented in millions 2019 2018 Unrealized gains (losses) on derivative financial instruments Interest rate $ (19 ) $ (25 ) Interest income — Loans Interest rate — 1 Interest expense — Long-term debt (19 ) (24 ) Income (loss) from continuing operations before income taxes (4 ) (6 ) Income taxes $ (15 ) (18 ) Income (loss) from continuing operations Net pension and postretirement benefit costs Amortization of losses $ (3 ) (4 ) Personnel expense (3 ) (4 ) Income (loss) from continuing operations before income taxes (1 ) (1 ) Income taxes $ (2 ) $ (3 ) Income (loss) from continuing operations |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Schedule of Stockholders Equity | 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 Second quarter 2019 dividends paid per depositary share Fixed-to-Floating Rate Perpetual Noncumulative Series D $ 525 21,000 $ 1 $ 25,000 1/25th $ 1,000 $ 12.50 Fixed-to-Floating Rate Perpetual Noncumulative Series E 500 500,000 1 1,000 1/40th 25 .382813 Fixed Rate Perpetual Noncumulative Series F 425 425,000 1 1,000 1/40th 25 .353125 Fixed Rate Perpetual Non-Cumulative Series G 450 450,000 1 1,000 1/40th 25 — |
Business Segment Reporting (Tab
Business Segment Reporting (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Financial Information of Business Groups | The table below shows selected financial data for our business segments for the three- and six- month periods ended June 30, 2019 , and June 30, 2018 . Three months ended June 30, Consumer Bank Commercial Bank Other Total Key dollars in millions 2019 2018 2019 2018 2019 2018 2019 2018 SUMMARY OF OPERATIONS Net interest income (TE) $ 594 $ 574 $ 405 $ 418 $ (10 ) $ (5 ) $ 989 $ 987 Noninterest income 231 236 354 303 37 121 622 660 Total revenue (TE) (a) 825 810 759 721 27 116 1,611 1,647 Provision for credit losses 40 39 33 25 1 — 74 64 Depreciation and amortization expense 25 26 35 34 37 39 97 99 Other noninterest expense 535 543 346 357 41 (6 ) 922 894 Income (loss) from continuing operations before income taxes (TE) 225 202 345 305 (52 ) 83 518 590 Allocated income taxes and TE adjustments 53 47 62 49 (20 ) 15 95 111 Income (loss) from continuing operations 172 155 283 256 (32 ) 68 423 479 Income (loss) from discontinued operations, net of taxes — — — — 2 3 2 3 Net income (loss) 172 155 283 256 (30 ) 71 425 482 Less: Net income (loss) attributable to noncontrolling interests — — — — — — — — Net income (loss) attributable to Key $ 172 $ 155 $ 283 $ 256 $ (30 ) $ 71 $ 425 $ 482 AVERAGE BALANCES (b) Loans and leases $ 31,881 $ 31,276 $ 57,924 $ 56,175 $ 980 $ 1,193 $ 90,785 $ 88,644 Total assets (a) 35,469 34,495 65,907 63,948 41,259 37,935 142,635 136,378 Deposits 72,303 68,279 35,961 33,169 1,337 2,555 109,601 104,003 OTHER FINANCIAL DATA Net loan charge-offs (b) $ 40 $ 39 $ 23 $ 22 2 (1 ) $ 65 $ 60 Return on average allocated equity (b) 21.12 % 18.88 % 24.57 % 22.99 % (1.48 )% 3.75 % 10.26 % 12.78 % Return on average allocated equity 21.12 18.88 24.57 22.99 (1.39 ) 3.92 10.31 12.86 Average full-time equivalent employees (c) 9,440 10,067 2,260 2,467 5,506 5,842 17,206 18,376 (a) Substantially all revenue generated by our major business segments is derived from clients that reside in the United States. Substantially all long-lived assets, including premises and equipment, capitalized software, and goodwill held by our major business segments, are located in the United States. (b) From continuing operations. (c) The number of average full-time equivalent employees was not adjusted for discontinued operations. Six months ended June 30, Consumer Bank Commercial Bank Other Total Key dollars in millions 2019 2018 2019 2018 2019 2018 2019 2018 SUMMARY OF OPERATIONS Net interest income (TE) $ 1,185 $ 1,126 $ 806 $ 824 $ (17 ) $ (11 ) $ 1,974 $ 1,939 Noninterest income 445 457 655 636 58 168 1,158 1,261 Total revenue (TE) (a) 1,630 1,583 1,461 1,460 41 157 3,132 3,200 Provision for credit losses 85 73 49 54 2 (2 ) 136 125 Depreciation and amortization expense 48 53 65 69 72 81 185 203 Other noninterest expense 1,061 1,093 680 700 56 3 1,797 1,796 Income (loss) from continuing operations before income taxes (TE) 436 364 667 637 (89 ) 75 1,014 1,076 Allocated income taxes and TE adjustments 103 86 127 96 (45 ) (1 ) 185 181 Income (loss) from continuing operations 333 278 540 541 (44 ) 76 829 895 Income (loss) from discontinued operations, net of taxes — — — — 3 5 3 5 Net income (loss) 333 278 540 541 (41 ) 81 832 900 Less: Net income (loss) attributable to noncontrolling interests — — — — — — — — Net income (loss) attributable to Key $ 333 $ 278 $ 540 $ 541 $ (41 ) $ 81 $ 832 $ 900 AVERAGE BALANCES (b) Loans and leases $ 31,603 $ 31,409 $ 57,610 $ 55,210 $ 1,007 $ 1,171 $ 90,220 $ 87,790 Total assets (a) 35,103 34,638 65,405 62,865 40,877 38,148 141,385 135,651 Deposits 71,798 67,852 35,194 32,983 1,602 2,448 108,594 103,283 OTHER FINANCIAL DATA Net loan charge-offs (b) $ 74 $ 73 $ 53 $ 41 2 — $ 129 $ 114 Return on average allocated equity (b) 20.76 % 16.98 % 23.93 % 24.74 % (1.06 )% 2.11 % 10.37 % 12.06 % Return on average allocated equity 20.76 16.98 23.93 24.74 (.99 ) 2.25 10.41 12.13 Average full-time equivalent employees (c) 9,531 10,082 2,314 2,466 5,534 5,910 17,379 18,458 (a) Substantially all revenue generated by our major business segments is derived from clients that reside in the United States. Substantially all long-lived assets, including premises and equipment, capitalized software, and goodwill held by our major business segments, are located in the United States. (b) From continuing operations. (c) The number of average full-time equivalent employees was not adjusted for discontinued operations. |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table represents a disaggregation of revenue from contracts with customers, by business segment, for the three- and six- month periods ended June 30, 2019 , and June 30, 2018 . Refer to Note 19 (“ Business Segment Reporting ”) for a description of the company-wide organizational change which occurred in the first quarter of 2019 resulting in the realignment of Key’s businesses into two reportable business segments, Consumer Bank and Commercial Bank. Prior period information was restated to conform to the new business segment structure. Three months ended June 30, 2019 Three months ended June 30, 2018 dollars in millions Consumer Bank Commercial Bank Total Contract Revenue Consumer Bank Commercial Bank Total Contract Revenue NONINTEREST INCOME Trust and investment services income $ 91 $ 17 $ 108 $ 91 $ 19 $ 110 Investment banking and debt placement fees — 65 65 — 68 68 Services charges on deposit accounts 56 27 83 62 28 90 Cards and payments income 44 28 72 40 29 69 Other noninterest income 4 — 4 5 — 5 Total revenue from contracts with customers $ 195 $ 137 $ 332 $ 198 $ 144 $ 342 Other noninterest income (a) $ 253 $ 197 Noninterest income from Other (b) 37 121 Total noninterest income $ 622 $ 660 (a) Noninterest income considered earned outside the scope of contracts with customers. (b) Other includes other segments that consists of corporate treasury, our principal investing unit, and various exit portfolios as well as reconciling items which primarily represents the unallocated portion of nonearning assets of corporate support functions. Charges related to the funding of these assets are part of net interest income and are allocated to the business segments through noninterest expense. Reconciling items also includes intercompany eliminations and certain items that are not allocated to the business segments because they do not reflect their normal operations. Refer to Note 19 (“ Business Segment Reporting ”) for more information. Six months ended June 30, 2019 Six months ended June 30, 2018 dollars in millions Consumer Bank Commercial Bank Total Contract Revenue Consumer Bank Commercial Bank Total Contract Revenue NONINTEREST INCOME Trust and investment services income $ 176 $ 32 $ 208 $ 176 $ 36 $ 212 Investment banking and debt placement fees — 110 110 — 115 115 Services charges on deposit accounts 110 55 165 123 56 179 Cards and payments income 81 55 136 75 55 130 Other noninterest income 6 — 6 10 — 10 Total revenue from contracts with customers $ 373 $ 252 $ 625 $ 384 $ 262 $ 646 Other noninterest income (a) $ 475 $ 447 Noninterest income from Other (b) 58 168 Total noninterest income $ 1,158 $ 1,261 (a) Noninterest income considered earned outside the scope of contracts with customers. (b) Other includes other segments that consists of corporate treasury, our principal investing unit, and various exit portfolios as well as reconciling items which primarily represents the unallocated portion of nonearning assets of corporate support functions. Charges related to the funding of these assets are part of net interest income and are allocated to the business segments through noninterest expense. Reconciling items also includes intercompany eliminations and certain items that are not allocated to the business segments because they do not reflect their normal operations. Refer to Note 19 (“ Business Segment Reporting ”) for more information. |
Basis of Presentation and Acc_4
Basis of Presentation and Accounting Policies - Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Jan. 01, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease assets | $ 695 | |
Operating lease liabilities | $ 775 | |
Accounting Standards Update 2016-02 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease assets | $ 710 | |
Operating lease liabilities | $ 710 |
Earnings Per Common Share - Bas
Earnings Per Common Share - Basic and Diluted Earnings Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||
EARNINGS | |||||
Income (loss) from continuing operations | $ 423 | $ 479 | $ 829 | $ 895 | |
Less: Net income (loss) attributable to noncontrolling interests | 0 | 0 | 0 | 0 | |
Income (loss) from continuing operations attributable to Key | 423 | 479 | 829 | 895 | |
Less: Dividends on Preferred Stock | 20 | 15 | 40 | 29 | |
Income (loss) from continuing operations attributable to Key common shareholders | 403 | 464 | 789 | 866 | |
Income (loss) from discontinued operations, net of taxes | 2 | 3 | 3 | 5 | |
Net income (loss) attributable to Key common shareholders | $ 405 | $ 467 | $ 792 | $ 871 | |
WEIGHTED-AVERAGE COMMON SHARES | |||||
Weighted-average common shares outstanding (000) (in shares) | 999,163 | 1,052,652 | 1,003,047 | 1,054,378 | |
Effect of common share options and other stock awards (in shares) | 8,801 | 13,141 | 9,318 | 14,561 | |
Weighted-average common shares and potential common shares outstanding (in shares) | [1] | 1,007,964 | 1,065,793 | 1,012,365 | 1,068,939 |
EARNINGS PER COMMON SHARE | |||||
Income (loss) from continuing operations attributable to Key common shareholders (in usd per share) | $ 0.40 | $ 0.44 | $ 0.79 | $ 0.82 | |
Income (loss) from discontinued operations, net of taxes (in usd per share) | 0 | 0 | 0 | 0 | |
Net income (loss) attributable to Key common shareholders (in usd per share) | [2] | 0.40 | 0.44 | 0.79 | 0.82 |
Income (loss) from continuing operations attributable to Key common shareholders - assuming dilution (in usd per share) | 0.40 | 0.44 | 0.78 | 0.81 | |
Income (loss) from discontinued operations, net of taxes - assuming dilution (in usd per share) | 0 | 0 | 0 | 0 | |
Net income (loss) attributable to Key common shareholders (in usd per share) | [2] | $ 0.40 | $ 0.44 | $ 0.78 | $ 0.81 |
[1] | Assumes conversion of Common Share options and other stock awards and/or convertible preferred stock, as applicable. | ||||
[2] | EPS may not foot due to rounding. |
Loan Portfolio - Loans by Categ
Loan Portfolio - Loans by Category (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 91,937 | $ 89,552 |
Loans, net of allowance | 91,047 | 88,669 |
Commercial Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 67,860 | 66,310 |
Consumer Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 24,077 | 23,242 |
Commercial and Industrial [Member] | Commercial Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 48,544 | 45,753 |
Commercial Mortgage [Member] | Commercial Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 13,299 | 14,285 |
Construction [Member] | Commercial Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 1,439 | 1,666 |
Commercial Credit Card [Member] | Commercial Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 143 | 132 |
Commercial Real Estate [Member] | Commercial Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 14,738 | 15,951 |
Commercial Lease Financing [Member] | Commercial Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 4,578 | 4,606 |
Commercial lease financing includes receivables held as collateral for secured borrowing | 11 | 10 |
Real Estate - Residential Mortgage [Member] | Consumer Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 6,053 | 5,513 |
Home Equity Loans [Member] | Consumer Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 10,575 | 11,142 |
Residential - Prime Loans [Member] | Consumer Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 16,628 | 16,655 |
Consumer Direct Loans [Member] | Consumer Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 2,350 | 1,809 |
Consumer Credit Card [Member] | Consumer Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 1,096 | 1,144 |
Consumer Indirect Loans [Member] | Consumer Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 4,003 | 3,634 |
Education Lending [Member] | Discontinued Operations [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans, net of allowance | $ 964 | $ 1,100 |
Asset Quality - Financing Recei
Asset Quality - Financing Receivable Credit Quality Indicators (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | $ 91,937 | $ 89,552 |
Consumer Portfolio Segment, PCI [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 309 | 334 |
Consumer Portfolio Segment, PCI [Member] | Residential - Prime Loans [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 306 | 331 |
Consumer Portfolio Segment, PCI [Member] | Consumer Direct Loans [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 3 | 3 |
Consumer Portfolio Segment, PCI [Member] | Consumer Credit Card [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 0 | 0 |
Consumer Portfolio Segment, PCI [Member] | Consumer Indirect Loans [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 0 | 0 |
Consumer Portfolio Segment Excluding PCI [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 23,768 | 22,908 |
Consumer Portfolio Segment Excluding PCI [Member] | Residential - Prime Loans [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 16,322 | 16,324 |
Consumer Portfolio Segment Excluding PCI [Member] | Consumer Direct Loans [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 2,347 | 1,806 |
Consumer Portfolio Segment Excluding PCI [Member] | Consumer Credit Card [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 1,096 | 1,144 |
Consumer Portfolio Segment Excluding PCI [Member] | Consumer Indirect Loans [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 4,003 | 3,634 |
Commercial Portfolio Segment Excluding PCI Loans [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 67,651 | 66,069 |
Commercial Portfolio Segment Excluding PCI Loans [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 65,443 | 63,904 |
Commercial Portfolio Segment Excluding PCI Loans [Member] | Criticized (Accruing) [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 1,925 | 1,922 |
Commercial Portfolio Segment Excluding PCI Loans [Member] | Criticized (Nonaccruing) [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 283 | 243 |
Commercial Portfolio Segment Excluding PCI Loans [Member] | Commercial and Industrial [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 48,491 | 45,692 |
Commercial Portfolio Segment Excluding PCI Loans [Member] | Commercial and Industrial [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 46,773 | 44,138 |
Commercial Portfolio Segment Excluding PCI Loans [Member] | Commercial and Industrial [Member] | Criticized (Accruing) [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 1,529 | 1,402 |
Commercial Portfolio Segment Excluding PCI Loans [Member] | Commercial and Industrial [Member] | Criticized (Nonaccruing) [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 189 | 152 |
Commercial Portfolio Segment Excluding PCI Loans [Member] | RE Commercial [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 13,144 | 14,107 |
Commercial Portfolio Segment Excluding PCI Loans [Member] | RE Commercial [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 12,756 | 13,672 |
Commercial Portfolio Segment Excluding PCI Loans [Member] | RE Commercial [Member] | Criticized (Accruing) [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 303 | 354 |
Commercial Portfolio Segment Excluding PCI Loans [Member] | RE Commercial [Member] | Criticized (Nonaccruing) [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 85 | 81 |
Commercial Portfolio Segment Excluding PCI Loans [Member] | Construction [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 1,438 | 1,664 |
Commercial Portfolio Segment Excluding PCI Loans [Member] | Construction [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 1,379 | 1,537 |
Commercial Portfolio Segment Excluding PCI Loans [Member] | Construction [Member] | Criticized (Accruing) [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 57 | 125 |
Commercial Portfolio Segment Excluding PCI Loans [Member] | Construction [Member] | Criticized (Nonaccruing) [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 2 | 2 |
Commercial Portfolio Segment Excluding PCI Loans [Member] | Commercial Leases [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 4,578 | 4,606 |
Commercial Portfolio Segment Excluding PCI Loans [Member] | Commercial Leases [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 4,535 | 4,557 |
Commercial Portfolio Segment Excluding PCI Loans [Member] | Commercial Leases [Member] | Criticized (Accruing) [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 36 | 41 |
Commercial Portfolio Segment Excluding PCI Loans [Member] | Commercial Leases [Member] | Criticized (Nonaccruing) [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 7 | 8 |
Commercial Portfolio Segment, PCI [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 209 | 241 |
Commercial Portfolio Segment, PCI [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 144 | 164 |
Commercial Portfolio Segment, PCI [Member] | Criticized (Accruing) [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 65 | 77 |
Commercial Portfolio Segment, PCI [Member] | Commercial and Industrial [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 53 | 61 |
Commercial Portfolio Segment, PCI [Member] | Commercial and Industrial [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 32 | 37 |
Commercial Portfolio Segment, PCI [Member] | Commercial and Industrial [Member] | Criticized (Accruing) [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 21 | 24 |
Commercial Portfolio Segment, PCI [Member] | RE Commercial [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 155 | 178 |
Commercial Portfolio Segment, PCI [Member] | RE Commercial [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 111 | 125 |
Commercial Portfolio Segment, PCI [Member] | RE Commercial [Member] | Criticized (Accruing) [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 44 | 53 |
Commercial Portfolio Segment, PCI [Member] | Construction [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 1 | 2 |
Commercial Portfolio Segment, PCI [Member] | Construction [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 1 | 2 |
Commercial Portfolio Segment, PCI [Member] | Construction [Member] | Criticized (Accruing) [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 0 | 0 |
Commercial Portfolio Segment, PCI [Member] | Commercial Leases [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 0 | 0 |
Commercial Portfolio Segment, PCI [Member] | Commercial Leases [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 0 | 0 |
Commercial Portfolio Segment, PCI [Member] | Commercial Leases [Member] | Criticized (Accruing) [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 0 | 0 |
FICO Score, 750 and Above [Member] | Consumer Portfolio Segment, PCI [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 120 | 137 |
FICO Score, 750 and Above [Member] | Consumer Portfolio Segment, PCI [Member] | Residential - Prime Loans [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 119 | 137 |
FICO Score, 750 and Above [Member] | Consumer Portfolio Segment, PCI [Member] | Consumer Direct Loans [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 1 | 0 |
FICO Score, 750 and Above [Member] | Consumer Portfolio Segment, PCI [Member] | Consumer Credit Card [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 0 | 0 |
FICO Score, 750 and Above [Member] | Consumer Portfolio Segment, PCI [Member] | Consumer Indirect Loans [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 0 | 0 |
FICO Score, 750 and Above [Member] | Consumer Portfolio Segment Excluding PCI [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 13,215 | 12,511 |
FICO Score, 750 and Above [Member] | Consumer Portfolio Segment Excluding PCI [Member] | Residential - Prime Loans [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 10,040 | 9,794 |
FICO Score, 750 and Above [Member] | Consumer Portfolio Segment Excluding PCI [Member] | Consumer Direct Loans [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 827 | 549 |
FICO Score, 750 and Above [Member] | Consumer Portfolio Segment Excluding PCI [Member] | Consumer Credit Card [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 499 | 521 |
FICO Score, 750 and Above [Member] | Consumer Portfolio Segment Excluding PCI [Member] | Consumer Indirect Loans [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 1,849 | 1,647 |
FICO Score, 660 to 749 [Member] | Consumer Portfolio Segment, PCI [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 104 | 96 |
FICO Score, 660 to 749 [Member] | Consumer Portfolio Segment, PCI [Member] | Residential - Prime Loans [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 103 | 95 |
FICO Score, 660 to 749 [Member] | Consumer Portfolio Segment, PCI [Member] | Consumer Direct Loans [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 1 | 1 |
FICO Score, 660 to 749 [Member] | Consumer Portfolio Segment, PCI [Member] | Consumer Credit Card [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 0 | 0 |
FICO Score, 660 to 749 [Member] | Consumer Portfolio Segment, PCI [Member] | Consumer Indirect Loans [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 0 | 0 |
FICO Score, 660 to 749 [Member] | Consumer Portfolio Segment Excluding PCI [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 7,424 | 7,433 |
FICO Score, 660 to 749 [Member] | Consumer Portfolio Segment Excluding PCI [Member] | Residential - Prime Loans [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 4,681 | 4,906 |
FICO Score, 660 to 749 [Member] | Consumer Portfolio Segment Excluding PCI [Member] | Consumer Direct Loans [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 822 | 700 |
FICO Score, 660 to 749 [Member] | Consumer Portfolio Segment Excluding PCI [Member] | Consumer Credit Card [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 481 | 507 |
FICO Score, 660 to 749 [Member] | Consumer Portfolio Segment Excluding PCI [Member] | Consumer Indirect Loans [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 1,440 | 1,320 |
FICO Score, Less than 660 [Member] | Consumer Portfolio Segment, PCI [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 79 | 99 |
FICO Score, Less than 660 [Member] | Consumer Portfolio Segment, PCI [Member] | Residential - Prime Loans [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 78 | 97 |
FICO Score, Less than 660 [Member] | Consumer Portfolio Segment, PCI [Member] | Consumer Direct Loans [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 1 | 2 |
FICO Score, Less than 660 [Member] | Consumer Portfolio Segment, PCI [Member] | Consumer Credit Card [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 0 | 0 |
FICO Score, Less than 660 [Member] | Consumer Portfolio Segment, PCI [Member] | Consumer Indirect Loans [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 0 | 0 |
FICO Score, Less than 660 [Member] | Consumer Portfolio Segment Excluding PCI [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 2,249 | 2,316 |
FICO Score, Less than 660 [Member] | Consumer Portfolio Segment Excluding PCI [Member] | Residential - Prime Loans [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 1,341 | 1,411 |
FICO Score, Less than 660 [Member] | Consumer Portfolio Segment Excluding PCI [Member] | Consumer Direct Loans [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 219 | 224 |
FICO Score, Less than 660 [Member] | Consumer Portfolio Segment Excluding PCI [Member] | Consumer Credit Card [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 116 | 116 |
FICO Score, Less than 660 [Member] | Consumer Portfolio Segment Excluding PCI [Member] | Consumer Indirect Loans [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 573 | 565 |
FICO Score, No Score [Member] | Consumer Portfolio Segment, PCI [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 6 | 2 |
FICO Score, No Score [Member] | Consumer Portfolio Segment, PCI [Member] | Residential - Prime Loans [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 6 | 2 |
FICO Score, No Score [Member] | Consumer Portfolio Segment, PCI [Member] | Consumer Direct Loans [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 0 | 0 |
FICO Score, No Score [Member] | Consumer Portfolio Segment, PCI [Member] | Consumer Credit Card [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 0 | 0 |
FICO Score, No Score [Member] | Consumer Portfolio Segment, PCI [Member] | Consumer Indirect Loans [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 0 | 0 |
FICO Score, No Score [Member] | Consumer Portfolio Segment Excluding PCI [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 880 | 648 |
FICO Score, No Score [Member] | Consumer Portfolio Segment Excluding PCI [Member] | Residential - Prime Loans [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 260 | 213 |
FICO Score, No Score [Member] | Consumer Portfolio Segment Excluding PCI [Member] | Consumer Direct Loans [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 479 | 333 |
FICO Score, No Score [Member] | Consumer Portfolio Segment Excluding PCI [Member] | Consumer Credit Card [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 0 | 0 |
FICO Score, No Score [Member] | Consumer Portfolio Segment Excluding PCI [Member] | Consumer Indirect Loans [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | $ 141 | $ 102 |
Asset Quality - Aging Analysis
Asset Quality - Aging Analysis of Past Due and Current Loans (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Past Due [Line Items] | ||
Current | $ 90,485 | $ 88,011 |
Days Past Due | 934 | 966 |
Non-performing Loans | 561 | 542 |
Purchased Credit Impaired | 518 | 575 |
Total loans | 91,937 | 89,552 |
Commercial Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 67,128 | 65,558 |
Days Past Due | 523 | 511 |
Non-performing Loans | 283 | 244 |
Purchased Credit Impaired | 209 | 241 |
Total loans | 67,860 | 66,310 |
Consumer Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 23,357 | 22,453 |
Days Past Due | 411 | 455 |
Non-performing Loans | 278 | 298 |
Purchased Credit Impaired | 309 | 334 |
Total loans | 24,077 | 23,242 |
Commercial and Industrial [Member] | Commercial Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 48,136 | 45,375 |
Days Past Due | 355 | 317 |
Non-performing Loans | 189 | 152 |
Purchased Credit Impaired | 53 | 61 |
Total loans | 48,544 | 45,753 |
Commercial Mortgage [Member] | Commercial Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 13,029 | 13,957 |
Days Past Due | 115 | 150 |
Non-performing Loans | 85 | 81 |
Purchased Credit Impaired | 155 | 178 |
Total loans | 13,299 | 14,285 |
Commercial Real Estate: Construction [Member] | Commercial Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 1,416 | 1,646 |
Days Past Due | 22 | 18 |
Non-performing Loans | 2 | 2 |
Purchased Credit Impaired | 1 | 2 |
Total loans | 1,439 | 1,666 |
Commercial Real Estate Loans [Member] | Commercial Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 14,445 | 15,603 |
Days Past Due | 137 | 168 |
Non-performing Loans | 87 | 83 |
Purchased Credit Impaired | 156 | 180 |
Total loans | 14,738 | 15,951 |
Commercial Lease Financing [Member] | Commercial Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 4,547 | 4,580 |
Days Past Due | 31 | 26 |
Non-performing Loans | 7 | 9 |
Purchased Credit Impaired | 0 | 0 |
Total loans | 4,578 | 4,606 |
Real Estate - Residential Mortgage [Member] | Consumer Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 5,686 | 5,119 |
Days Past Due | 76 | 80 |
Non-performing Loans | 62 | 62 |
Purchased Credit Impaired | 291 | 314 |
Total loans | 6,053 | 5,513 |
Home Equity Loans [Member] | Consumer Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 10,329 | 10,862 |
Days Past Due | 231 | 263 |
Non-performing Loans | 191 | 210 |
Purchased Credit Impaired | 15 | 17 |
Total loans | 10,575 | 11,142 |
Consumer Direct Loans [Member] | Consumer Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 2,322 | 1,780 |
Days Past Due | 25 | 26 |
Non-performing Loans | 3 | 4 |
Purchased Credit Impaired | 3 | 3 |
Total loans | 2,350 | 1,809 |
Consumer Credit Card Financing Receivable [Member] | Consumer Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 1,073 | 1,119 |
Days Past Due | 23 | 25 |
Non-performing Loans | 2 | 2 |
Purchased Credit Impaired | 0 | 0 |
Total loans | 1,096 | 1,144 |
Consumer Indirect Loans [Member] | Consumer Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 3,947 | 3,573 |
Days Past Due | 56 | 61 |
Non-performing Loans | 20 | 20 |
Purchased Credit Impaired | 0 | 0 |
Total loans | 4,003 | 3,634 |
30-59 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days Past Due | 248 | 218 |
30-59 Days Past Due [Member] | Commercial Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days Past Due | 166 | 128 |
30-59 Days Past Due [Member] | Consumer Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days Past Due | 82 | 90 |
30-59 Days Past Due [Member] | Commercial and Industrial [Member] | Commercial Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days Past Due | 116 | 89 |
30-59 Days Past Due [Member] | Commercial Mortgage [Member] | Commercial Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days Past Due | 17 | 27 |
30-59 Days Past Due [Member] | Commercial Real Estate: Construction [Member] | Commercial Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days Past Due | 20 | 0 |
30-59 Days Past Due [Member] | Commercial Real Estate Loans [Member] | Commercial Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days Past Due | 37 | 27 |
30-59 Days Past Due [Member] | Commercial Lease Financing [Member] | Commercial Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days Past Due | 13 | 12 |
30-59 Days Past Due [Member] | Real Estate - Residential Mortgage [Member] | Consumer Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days Past Due | 11 | 11 |
30-59 Days Past Due [Member] | Home Equity Loans [Member] | Consumer Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days Past Due | 27 | 31 |
30-59 Days Past Due [Member] | Consumer Direct Loans [Member] | Consumer Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days Past Due | 10 | 11 |
30-59 Days Past Due [Member] | Consumer Credit Card Financing Receivable [Member] | Consumer Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days Past Due | 6 | 6 |
30-59 Days Past Due [Member] | Consumer Indirect Loans [Member] | Consumer Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days Past Due | 28 | 31 |
60-89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days Past Due | 51 | 94 |
60-89 Days Past Due [Member] | Commercial Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days Past Due | 26 | 62 |
60-89 Days Past Due [Member] | Consumer Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days Past Due | 25 | 32 |
60-89 Days Past Due [Member] | Commercial and Industrial [Member] | Commercial Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days Past Due | 20 | 31 |
60-89 Days Past Due [Member] | Commercial Mortgage [Member] | Commercial Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days Past Due | 3 | 17 |
60-89 Days Past Due [Member] | Commercial Real Estate: Construction [Member] | Commercial Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days Past Due | 0 | 13 |
60-89 Days Past Due [Member] | Commercial Real Estate Loans [Member] | Commercial Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days Past Due | 3 | 30 |
60-89 Days Past Due [Member] | Commercial Lease Financing [Member] | Commercial Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days Past Due | 3 | 1 |
60-89 Days Past Due [Member] | Real Estate - Residential Mortgage [Member] | Consumer Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days Past Due | 2 | 3 |
60-89 Days Past Due [Member] | Home Equity Loans [Member] | Consumer Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days Past Due | 8 | 12 |
60-89 Days Past Due [Member] | Consumer Direct Loans [Member] | Consumer Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days Past Due | 5 | 5 |
60-89 Days Past Due [Member] | Consumer Credit Card Financing Receivable [Member] | Consumer Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days Past Due | 4 | 5 |
60-89 Days Past Due [Member] | Consumer Indirect Loans [Member] | Consumer Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days Past Due | 6 | 7 |
90 and Greater Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days Past Due | 74 | 112 |
90 and Greater Days Past Due [Member] | Commercial Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days Past Due | 48 | 77 |
90 and Greater Days Past Due [Member] | Consumer Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days Past Due | 26 | 35 |
90 and Greater Days Past Due [Member] | Commercial and Industrial [Member] | Commercial Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days Past Due | 30 | 45 |
90 and Greater Days Past Due [Member] | Commercial Mortgage [Member] | Commercial Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days Past Due | 10 | 25 |
90 and Greater Days Past Due [Member] | Commercial Real Estate: Construction [Member] | Commercial Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days Past Due | 0 | 3 |
90 and Greater Days Past Due [Member] | Commercial Real Estate Loans [Member] | Commercial Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days Past Due | 10 | 28 |
90 and Greater Days Past Due [Member] | Commercial Lease Financing [Member] | Commercial Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days Past Due | 8 | 4 |
90 and Greater Days Past Due [Member] | Real Estate - Residential Mortgage [Member] | Consumer Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days Past Due | 1 | 4 |
90 and Greater Days Past Due [Member] | Home Equity Loans [Member] | Consumer Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days Past Due | 5 | 10 |
90 and Greater Days Past Due [Member] | Consumer Direct Loans [Member] | Consumer Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days Past Due | 7 | 6 |
90 and Greater Days Past Due [Member] | Consumer Credit Card Financing Receivable [Member] | Consumer Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days Past Due | 11 | 12 |
90 and Greater Days Past Due [Member] | Consumer Indirect Loans [Member] | Consumer Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days Past Due | $ 2 | $ 3 |
Asset Quality - Additional Info
Asset Quality - Additional Information (Details) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019USD ($)SecurityLoan | Jun. 30, 2018USD ($)SecurityLoan | Jun. 30, 2019USD ($)SecurityLoan | Jun. 30, 2018USD ($)SecurityLoan | Dec. 31, 2018USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Provision (credit) for losses on lending-related commitments | $ 2 | $ (2) | $ 0 | $ 1 | |
Percentage of carrying amount of our commercial nonperforming loans outstanding | 79.00% | 79.00% | |||
Percentage of nonperforming loans outstanding face value | 82.00% | 82.00% | |||
Percentage of loans held for sale and other nonperforming assets | 87.00% | 87.00% | |||
Net reduction to interest income | $ 9 | 7 | $ 17 | 14 | |
Interest income recognized on outstanding balances | 3 | 3 | 6 | 5 | |
Commitments outstanding to lend additional funds to borrowers | 5 | 5 | $ 5 | ||
Financial receivable, modifications, subsequent default, recorded investment | 2 | $ 1 | 4 | $ 2 | |
Other real estate owned nonperforming loan | $ 38 | $ 38 | 35 | ||
Commercial Portfolio Segment [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Number of loans | SecurityLoan | 0 | 0 | 0 | 0 | |
Consumer Loans [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Number of loans | SecurityLoan | 102 | 55 | 174 | 96 | |
Real Estate - Residential Mortgage [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Financial receivable, modifications, subsequent default, recorded investment | $ 96 | 113 | |||
Foreclosed Residential Real Estate [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Other real estate owned nonperforming loan | $ 38 | $ 38 | $ 35 |
Asset Quality - Breakdown of In
Asset Quality - Breakdown of Individually Impaired Loans (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Financing Receivable, Impaired [Line Items] | |||||
With no related allowance recorded, Recorded Investment | $ 232 | $ 232 | $ 238 | ||
With related allowance recorded, Recorded Investment | 233 | 233 | 209 | ||
Recorded Investment | 465 | 465 | 447 | ||
With no related allowance recorded, Unpaid Principal Balance | 288 | 288 | 311 | ||
With related allowance recorded, Unpaid Principal Balance | 282 | 282 | 245 | ||
Unpaid Principal Balance | 570 | 570 | 556 | ||
Specific Allowance | 26 | 26 | 19 | ||
Average Recorded Investment | 457 | $ 409 | 456 | $ 388 | |
Commercial Loans [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
With no related allowance recorded, Recorded Investment | 179 | 179 | 182 | ||
With related allowance recorded, Recorded Investment | 68 | 68 | 46 | ||
With no related allowance recorded, Unpaid Principal Balance | 224 | 224 | 245 | ||
With related allowance recorded, Unpaid Principal Balance | 86 | 86 | 50 | ||
Specific Allowance | 11 | 11 | 6 | ||
Average Recorded Investment | 239 | 194 | 237 | 177 | |
Consumer Loans [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
With no related allowance recorded, Recorded Investment | 53 | 53 | 56 | ||
With related allowance recorded, Recorded Investment | 165 | 165 | 163 | ||
With no related allowance recorded, Unpaid Principal Balance | 64 | 64 | 66 | ||
With related allowance recorded, Unpaid Principal Balance | 196 | 196 | 195 | ||
Specific Allowance | 15 | 15 | 13 | ||
Average Recorded Investment | 218 | 215 | 219 | 211 | |
Commercial and Industrial [Member] | Commercial Loans [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
With no related allowance recorded, Recorded Investment | 118 | 118 | 118 | ||
With related allowance recorded, Recorded Investment | 65 | 65 | 44 | ||
With no related allowance recorded, Unpaid Principal Balance | 151 | 151 | 175 | ||
With related allowance recorded, Unpaid Principal Balance | 83 | 83 | 47 | ||
Specific Allowance | 10 | 10 | 5 | ||
Average Recorded Investment | 176 | 178 | 172 | 161 | |
Commercial Mortgage [Member] | Commercial Loans [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
With no related allowance recorded, Recorded Investment | 61 | 61 | 64 | ||
With related allowance recorded, Recorded Investment | 3 | 3 | 2 | ||
With no related allowance recorded, Unpaid Principal Balance | 73 | 73 | 70 | ||
With related allowance recorded, Unpaid Principal Balance | 3 | 3 | 3 | ||
Specific Allowance | 1 | 1 | 1 | ||
Average Recorded Investment | 63 | 16 | 65 | 16 | |
Commercial Real Estate Loans [Member] | Commercial Loans [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
With no related allowance recorded, Recorded Investment | 61 | 61 | 64 | ||
With related allowance recorded, Recorded Investment | 3 | 3 | 2 | ||
With no related allowance recorded, Unpaid Principal Balance | 73 | 73 | 70 | ||
With related allowance recorded, Unpaid Principal Balance | 3 | 3 | 3 | ||
Specific Allowance | 1 | 1 | 1 | ||
Average Recorded Investment | 63 | 16 | 65 | 16 | |
Real Estate - Residential Mortgage [Member] | Consumer Loans [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
With no related allowance recorded, Recorded Investment | 4 | 4 | 4 | ||
With related allowance recorded, Recorded Investment | 44 | 44 | 45 | ||
With no related allowance recorded, Unpaid Principal Balance | 6 | 6 | 5 | ||
With related allowance recorded, Unpaid Principal Balance | 68 | 68 | 70 | ||
Specific Allowance | 3 | 3 | 3 | ||
Average Recorded Investment | 48 | 49 | 49 | 49 | |
Home Equity Loans [Member] | Consumer Loans [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
With no related allowance recorded, Recorded Investment | 47 | 47 | 49 | ||
With related allowance recorded, Recorded Investment | 81 | 81 | 78 | ||
With no related allowance recorded, Unpaid Principal Balance | 53 | 53 | 56 | ||
With related allowance recorded, Unpaid Principal Balance | 87 | 87 | 85 | ||
Specific Allowance | 9 | 9 | 8 | ||
Average Recorded Investment | 128 | 124 | 127 | 121 | |
Consumer Direct Loans [Member] | Consumer Loans [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
With no related allowance recorded, Recorded Investment | 0 | 0 | 1 | ||
With related allowance recorded, Recorded Investment | 4 | 4 | 3 | ||
With no related allowance recorded, Unpaid Principal Balance | 1 | 1 | 1 | ||
With related allowance recorded, Unpaid Principal Balance | 4 | 4 | 3 | ||
Specific Allowance | 0 | 0 | 0 | ||
Average Recorded Investment | 4 | 4 | 4 | 4 | |
Consumer Indirect Loans [Member] | Consumer Loans [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
With no related allowance recorded, Recorded Investment | 2 | 2 | 2 | ||
With related allowance recorded, Recorded Investment | 33 | 33 | 34 | ||
With no related allowance recorded, Unpaid Principal Balance | 4 | 4 | 4 | ||
With related allowance recorded, Unpaid Principal Balance | 34 | 34 | 34 | ||
Specific Allowance | 3 | 3 | 2 | ||
Average Recorded Investment | 36 | 35 | 36 | 34 | |
Credit Cards [Member] | Consumer Loans [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
With related allowance recorded, Recorded Investment | 3 | 3 | 3 | ||
With related allowance recorded, Unpaid Principal Balance | 3 | 3 | 3 | ||
Specific Allowance | 0 | 0 | $ 0 | ||
Average Recorded Investment | $ 2 | $ 3 | $ 3 | $ 3 |
Asset Quality - Post-Modificati
Asset Quality - Post-Modification Outstanding Recorded Investment by Concession Type for Our Commercial Accruing and Nonaccruing TDRs (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Total commercial and consumer TDRs | $ 48 | $ 64 | $ 59 | $ 86 |
Commercial Loans [Member] | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Forgiveness of principal | 0 | 5 | 0 | 5 |
Extension of Maturity Date | 6 | 14 | 6 | 15 |
Payment or Covenant Modification/Deferment | 18 | 20 | 18 | 20 |
Bankruptcy Plan Modification | 11 | 7 | 11 | 7 |
Total | 35 | 46 | 35 | 47 |
Consumer Loans [Member] | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Interest rate reduction | 4 | 8 | 8 | 18 |
Other | 9 | 10 | 16 | 21 |
Total | $ 13 | $ 18 | $ 24 | $ 39 |
Asset Quality - Summary of Post
Asset Quality - Summary of Post-Modification Outstanding Recorded Investment TDRs (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Financing Receivables, Modifications, Rollforward [Roll Forward] | ||||
Balance at beginning of the period | $ 365 | $ 317 | $ 399 | $ 317 |
Additions | 54 | 54 | 68 | 75 |
Payments | (19) | (22) | (58) | (41) |
Charge-offs | (5) | (2) | (14) | (4) |
Balance at end of period | $ 395 | $ 347 | $ 395 | $ 347 |
Asset Quality - Breakdown of No
Asset Quality - Breakdown of Nonperforming TDRs by Loans Category (Details) $ in Millions | 6 Months Ended | |
Jun. 30, 2019USD ($)SecurityLoan | Jun. 30, 2018USD ($)SecurityLoan | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | SecurityLoan | 6,209 | 6,084 |
Pre-modification Outstanding Recorded Investment | $ 479 | $ 491 |
Post-modification Outstanding Recorded Investment | $ 395 | $ 399 |
Prior-Year Accruing [Member] | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | SecurityLoan | 3,698 | 3,021 |
Pre-modification Outstanding Recorded Investment | $ 213 | $ 195 |
Post-modification Outstanding Recorded Investment | $ 167 | $ 152 |
Prior-Year Accruing [Member] | Commercial Loans [Member] | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | SecurityLoan | 11 | 13 |
Pre-modification Outstanding Recorded Investment | $ 34 | $ 37 |
Post-modification Outstanding Recorded Investment | $ 28 | $ 32 |
Prior-Year Accruing [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | SecurityLoan | 1 | 2 |
Pre-modification Outstanding Recorded Investment | $ 0 | $ 0 |
Post-modification Outstanding Recorded Investment | $ 0 | $ 0 |
Prior-Year Accruing [Member] | Consumer Loans [Member] | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | SecurityLoan | 3,687 | 3,008 |
Pre-modification Outstanding Recorded Investment | $ 179 | $ 158 |
Post-modification Outstanding Recorded Investment | $ 139 | $ 120 |
Nonperforming [Member] | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | SecurityLoan | 2,511 | 3,063 |
Pre-modification Outstanding Recorded Investment | $ 266 | $ 296 |
Post-modification Outstanding Recorded Investment | $ 228 | $ 247 |
Nonperforming [Member] | Commercial Loans [Member] | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | SecurityLoan | 65 | 41 |
Pre-modification Outstanding Recorded Investment | $ 178 | $ 187 |
Post-modification Outstanding Recorded Investment | $ 149 | $ 147 |
Nonperforming [Member] | Consumer Loans [Member] | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | SecurityLoan | 2,446 | 3,022 |
Pre-modification Outstanding Recorded Investment | $ 88 | $ 109 |
Post-modification Outstanding Recorded Investment | $ 79 | $ 100 |
Commercial and Industrial [Member] | Prior-Year Accruing [Member] | Commercial Loans [Member] | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | SecurityLoan | 10 | 11 |
Pre-modification Outstanding Recorded Investment | $ 34 | $ 37 |
Post-modification Outstanding Recorded Investment | $ 28 | $ 32 |
Commercial and Industrial [Member] | Prior-Year Accruing [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | SecurityLoan | 1 | 2 |
Pre-modification Outstanding Recorded Investment | $ 0 | $ 0 |
Post-modification Outstanding Recorded Investment | $ 0 | $ 0 |
Commercial and Industrial [Member] | Nonperforming [Member] | Commercial Loans [Member] | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | SecurityLoan | 57 | 35 |
Pre-modification Outstanding Recorded Investment | $ 111 | $ 121 |
Post-modification Outstanding Recorded Investment | $ 88 | $ 85 |
Commercial Mortgage [Member] | Nonperforming [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | SecurityLoan | 8 | 6 |
Pre-modification Outstanding Recorded Investment | $ 67 | $ 66 |
Post-modification Outstanding Recorded Investment | $ 61 | $ 62 |
Commercial Real Estate Loans [Member] | Nonperforming [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | SecurityLoan | 8 | 6 |
Pre-modification Outstanding Recorded Investment | $ 67 | $ 66 |
Post-modification Outstanding Recorded Investment | $ 61 | $ 62 |
Real Estate - Residential Mortgage [Member] | Prior-Year Accruing [Member] | Consumer Loans [Member] | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | SecurityLoan | 467 | 491 |
Pre-modification Outstanding Recorded Investment | $ 35 | $ 36 |
Post-modification Outstanding Recorded Investment | $ 29 | $ 30 |
Real Estate - Residential Mortgage [Member] | Nonperforming [Member] | Consumer Loans [Member] | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | SecurityLoan | 297 | 281 |
Pre-modification Outstanding Recorded Investment | $ 21 | $ 21 |
Post-modification Outstanding Recorded Investment | $ 19 | $ 20 |
Home Equity Loans [Member] | Prior-Year Accruing [Member] | Consumer Loans [Member] | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | SecurityLoan | 1,716 | 1,403 |
Pre-modification Outstanding Recorded Investment | $ 100 | $ 82 |
Post-modification Outstanding Recorded Investment | $ 83 | $ 64 |
Home Equity Loans [Member] | Nonperforming [Member] | Consumer Loans [Member] | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | SecurityLoan | 801 | 1,142 |
Pre-modification Outstanding Recorded Investment | $ 49 | $ 66 |
Post-modification Outstanding Recorded Investment | $ 45 | $ 63 |
Consumer Direct Loans [Member] | Prior-Year Accruing [Member] | Consumer Loans [Member] | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | SecurityLoan | 138 | 79 |
Pre-modification Outstanding Recorded Investment | $ 5 | $ 4 |
Post-modification Outstanding Recorded Investment | $ 3 | $ 3 |
Consumer Direct Loans [Member] | Nonperforming [Member] | Consumer Loans [Member] | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | SecurityLoan | 129 | 171 |
Pre-modification Outstanding Recorded Investment | $ 1 | $ 2 |
Post-modification Outstanding Recorded Investment | $ 1 | $ 1 |
Consumer Credit Card [Member] | Prior-Year Accruing [Member] | Consumer Loans [Member] | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | SecurityLoan | 600 | 479 |
Pre-modification Outstanding Recorded Investment | $ 3 | $ 3 |
Post-modification Outstanding Recorded Investment | $ 2 | $ 1 |
Consumer Credit Card [Member] | Nonperforming [Member] | Consumer Loans [Member] | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | SecurityLoan | 251 | 330 |
Pre-modification Outstanding Recorded Investment | $ 1 | $ 2 |
Post-modification Outstanding Recorded Investment | $ 1 | $ 2 |
Consumer Indirect Loans [Member] | Prior-Year Accruing [Member] | Consumer Loans [Member] | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | SecurityLoan | 766 | 556 |
Pre-modification Outstanding Recorded Investment | $ 36 | $ 33 |
Post-modification Outstanding Recorded Investment | $ 22 | $ 22 |
Consumer Indirect Loans [Member] | Nonperforming [Member] | Consumer Loans [Member] | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | SecurityLoan | 968 | 1,098 |
Pre-modification Outstanding Recorded Investment | $ 16 | $ 18 |
Post-modification Outstanding Recorded Investment | $ 13 | $ 14 |
Asset Quality - Changes in Allo
Asset Quality - Changes in Allowance for Loan and Lease Losses by Loan Category (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | $ 896 | $ 897 | $ 897 | $ 893 |
Provision | 74 | 66 | 140 | 126 |
Charge-offs | (88) | (82) | (179) | (158) |
Recoveries | 20 | 20 | 44 | 40 |
Ending balance | 902 | 901 | 902 | 901 |
Provision (credit) for losses on lending-related commitments | 2 | (2) | 0 | 1 |
Continuing Operations [Member] | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 883 | 881 | 883 | 877 |
Provision | 72 | 66 | 136 | 124 |
Charge-offs | (84) | (79) | (171) | (151) |
Recoveries | 19 | 19 | 42 | 37 |
Ending balance | 890 | 887 | 890 | 887 |
Continuing Operations [Member] | Commercial Loans [Member] | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 737 | 742 | 743 | 735 |
Provision | 48 | 44 | 83 | 82 |
Charge-offs | (47) | (45) | (100) | (84) |
Recoveries | 9 | 8 | 21 | 16 |
Ending balance | 747 | 749 | 747 | 749 |
Continuing Operations [Member] | Consumer Loans [Member] | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 146 | 139 | 140 | 142 |
Provision | 24 | 22 | 53 | 42 |
Charge-offs | (37) | (34) | (71) | (67) |
Recoveries | 10 | 11 | 21 | 21 |
Ending balance | 143 | 138 | 143 | 138 |
Continuing Operations [Member] | Commercial and Industrial [Member] | Commercial Loans [Member] | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 530 | 533 | 532 | 529 |
Provision | 43 | 41 | 67 | 76 |
Charge-offs | (30) | (39) | (66) | (76) |
Recoveries | 6 | 7 | 16 | 13 |
Ending balance | 549 | 542 | 549 | 542 |
Continuing Operations [Member] | Commercial Mortgage [Member] | Commercial Loans [Member] | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 144 | 136 | 142 | 133 |
Provision | (5) | 4 | 1 | 8 |
Charge-offs | (1) | (2) | (6) | (3) |
Recoveries | 1 | 1 | 2 | 1 |
Ending balance | 139 | 139 | 139 | 139 |
Continuing Operations [Member] | Construction [Member] | Commercial Loans [Member] | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 28 | 33 | 33 | 30 |
Provision | (4) | (5) | (5) | (3) |
Charge-offs | 0 | 0 | (4) | 0 |
Recoveries | 0 | 0 | 0 | 1 |
Ending balance | 24 | 28 | 24 | 28 |
Continuing Operations [Member] | Commercial Real Estate [Member] | Commercial Loans [Member] | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 172 | 169 | 175 | 163 |
Provision | (9) | (1) | (4) | 5 |
Charge-offs | (1) | (2) | (10) | (3) |
Recoveries | 1 | 1 | 2 | 2 |
Ending balance | 163 | 167 | 163 | 167 |
Continuing Operations [Member] | Commercial Lease Financing [Member] | Commercial Loans [Member] | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 35 | 40 | 36 | 43 |
Provision | 14 | 4 | 20 | 1 |
Charge-offs | (16) | (4) | (24) | (5) |
Recoveries | 2 | 0 | 3 | 1 |
Ending balance | 35 | 40 | 35 | 40 |
Continuing Operations [Member] | Real Estate - Residential Mortgage [Member] | Consumer Loans [Member] | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 8 | 9 | 7 | 7 |
Provision | 0 | 1 | 1 | 4 |
Charge-offs | (1) | 0 | (2) | (1) |
Recoveries | 0 | 0 | 1 | 0 |
Ending balance | 7 | 10 | 7 | 10 |
Continuing Operations [Member] | Home Equity Loans [Member] | Consumer Loans [Member] | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 36 | 38 | 35 | 43 |
Provision | 4 | 2 | 7 | (2) |
Charge-offs | (6) | (6) | (10) | (10) |
Recoveries | 2 | 3 | 4 | 6 |
Ending balance | 36 | 37 | 36 | 37 |
Continuing Operations [Member] | Consumer Direct Loans [Member] | Consumer Loans [Member] | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 33 | 27 | 30 | 28 |
Provision | 7 | 6 | 19 | 11 |
Charge-offs | (10) | (9) | (20) | (17) |
Recoveries | 2 | 2 | 3 | 4 |
Ending balance | 32 | 26 | 32 | 26 |
Continuing Operations [Member] | Credit Cards [Member] | Consumer Loans [Member] | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 47 | 45 | 48 | 44 |
Provision | 7 | 11 | 15 | 23 |
Charge-offs | (12) | (12) | (23) | (24) |
Recoveries | 2 | 2 | 4 | 3 |
Ending balance | 44 | 46 | 44 | 46 |
Continuing Operations [Member] | Consumer Indirect Loans [Member] | Consumer Loans [Member] | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 22 | 20 | 20 | 20 |
Provision | 6 | 2 | 11 | 6 |
Charge-offs | (8) | (7) | (16) | (15) |
Recoveries | 4 | 4 | 9 | 8 |
Ending balance | 24 | 19 | 24 | 19 |
Discontinued Operations [Member] | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 13 | 16 | 14 | 16 |
Provision | 2 | 0 | 4 | 2 |
Charge-offs | (4) | (3) | (8) | (7) |
Recoveries | 1 | 1 | 2 | 3 |
Ending balance | $ 12 | $ 14 | $ 12 | $ 14 |
Asset Quality - Breakdown of Al
Asset Quality - Breakdown of Allowance for Loan and Lease Losses and Corresponding Loan Balances (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Individually Evaluated for Impairment, Allowance, Total ALLL - Including Discontinued Operations | $ 28 | $ 21 |
Collectively Evaluated for Impairment, Allowance, Total ALLL - Including Discontinued Operations | 870 | 871 |
Purchased Credit Impaired, Allowance, Total ALLL - Including Discontinued Operations | 4 | 5 |
Loans, Outstanding, Total ALLL - Including Discontinued Operations | 92,901 | 90,625 |
Individually Evaluated for Impairment, Outstanding, Total ALLL - Including Discontinued Operations | 488 | 470 |
Collectively Evaluated for Impairment, Outstanding, Total ALLL - Including Discontinued Operations | 91,895 | 89,580 |
Purchased Credit Impaired, Outstanding, Total ALLL - Including Discontinued Operations | 518 | 575 |
Continuing Operations [Member] | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Individually Evaluated for Impairment, Allowance | 26 | 19 |
Collectively Evaluated for Impairment, Allowance | 860 | 859 |
Purchase Credit Impairment, Allowance | 4 | 5 |
Total loans | 91,937 | 89,552 |
Individually Evaluated for Impairment, Outstanding | 465 | 447 |
Collectively Evaluated for Impairment, Outstanding | 90,954 | 88,530 |
Purchase Credit Impairment, Outstanding | 518 | 575 |
Continuing Operations [Member] | Commercial Loans [Member] | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Individually Evaluated for Impairment, Allowance | 11 | 5 |
Collectively Evaluated for Impairment, Allowance | 734 | 734 |
Purchase Credit Impairment, Allowance | 2 | 4 |
Total loans | 67,860 | 66,310 |
Individually Evaluated for Impairment, Outstanding | 247 | 228 |
Collectively Evaluated for Impairment, Outstanding | 67,404 | 65,841 |
Purchase Credit Impairment, Outstanding | 209 | 241 |
Continuing Operations [Member] | Consumer Loans [Member] | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Individually Evaluated for Impairment, Allowance | 15 | 14 |
Collectively Evaluated for Impairment, Allowance | 126 | 125 |
Purchase Credit Impairment, Allowance | 2 | 1 |
Total loans | 24,077 | 23,242 |
Individually Evaluated for Impairment, Outstanding | 218 | 219 |
Collectively Evaluated for Impairment, Outstanding | 23,550 | 22,689 |
Purchase Credit Impairment, Outstanding | 309 | 334 |
Discontinued Operations [Member] | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Individually Evaluated for Impairment, Allowance | 2 | 2 |
Collectively Evaluated for Impairment, Allowance | 10 | 12 |
Purchase Credit Impairment, Allowance | 0 | 0 |
Total loans | 964 | 1,073 |
Individually Evaluated for Impairment, Outstanding | 23 | 23 |
Collectively Evaluated for Impairment, Outstanding | 941 | 1,050 |
Purchase Credit Impairment, Outstanding | 0 | 0 |
Commercial and Industrial [Member] | Continuing Operations [Member] | Commercial Loans [Member] | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Individually Evaluated for Impairment, Allowance | 10 | 5 |
Collectively Evaluated for Impairment, Allowance | 538 | 526 |
Purchase Credit Impairment, Allowance | 1 | 1 |
Total loans | 48,544 | 45,753 |
Individually Evaluated for Impairment, Outstanding | 183 | 162 |
Collectively Evaluated for Impairment, Outstanding | 48,308 | 45,530 |
Purchase Credit Impairment, Outstanding | 53 | 61 |
Commercial Mortgage [Member] | Continuing Operations [Member] | Commercial Loans [Member] | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Individually Evaluated for Impairment, Allowance | 1 | 0 |
Collectively Evaluated for Impairment, Allowance | 137 | 139 |
Purchase Credit Impairment, Allowance | 1 | 3 |
Total loans | 13,299 | 14,285 |
Individually Evaluated for Impairment, Outstanding | 64 | 66 |
Collectively Evaluated for Impairment, Outstanding | 13,080 | 14,041 |
Purchase Credit Impairment, Outstanding | 155 | 178 |
Commercial Real Estate: Construction [Member] | Continuing Operations [Member] | Commercial Loans [Member] | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Individually Evaluated for Impairment, Allowance | 0 | 0 |
Collectively Evaluated for Impairment, Allowance | 24 | 33 |
Purchase Credit Impairment, Allowance | 0 | 0 |
Total loans | 1,439 | 1,666 |
Individually Evaluated for Impairment, Outstanding | 0 | 0 |
Collectively Evaluated for Impairment, Outstanding | 1,438 | 1,664 |
Purchase Credit Impairment, Outstanding | 1 | 2 |
Commercial Real Estate Loans [Member] | Continuing Operations [Member] | Commercial Loans [Member] | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Individually Evaluated for Impairment, Allowance | 1 | 0 |
Collectively Evaluated for Impairment, Allowance | 161 | 172 |
Purchase Credit Impairment, Allowance | 1 | 3 |
Total loans | 14,738 | 15,951 |
Individually Evaluated for Impairment, Outstanding | 64 | 66 |
Collectively Evaluated for Impairment, Outstanding | 14,518 | 15,705 |
Purchase Credit Impairment, Outstanding | 156 | 180 |
Commercial Lease Financing [Member] | Continuing Operations [Member] | Commercial Loans [Member] | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Individually Evaluated for Impairment, Allowance | 0 | 0 |
Collectively Evaluated for Impairment, Allowance | 35 | 36 |
Purchase Credit Impairment, Allowance | 0 | 0 |
Total loans | 4,578 | 4,606 |
Individually Evaluated for Impairment, Outstanding | 0 | 0 |
Collectively Evaluated for Impairment, Outstanding | 4,578 | 4,606 |
Purchase Credit Impairment, Outstanding | 0 | 0 |
Real Estate - Residential Mortgage [Member] | Continuing Operations [Member] | Consumer Loans [Member] | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Individually Evaluated for Impairment, Allowance | 3 | 3 |
Collectively Evaluated for Impairment, Allowance | 3 | 4 |
Purchase Credit Impairment, Allowance | 1 | 0 |
Total loans | 6,053 | 5,513 |
Individually Evaluated for Impairment, Outstanding | 48 | 49 |
Collectively Evaluated for Impairment, Outstanding | 5,714 | 5,150 |
Purchase Credit Impairment, Outstanding | 291 | 314 |
Home Equity Loans [Member] | Continuing Operations [Member] | Consumer Loans [Member] | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Individually Evaluated for Impairment, Allowance | 9 | 8 |
Collectively Evaluated for Impairment, Allowance | 26 | 26 |
Purchase Credit Impairment, Allowance | 1 | 1 |
Total loans | 10,575 | 11,142 |
Individually Evaluated for Impairment, Outstanding | 128 | 127 |
Collectively Evaluated for Impairment, Outstanding | 10,432 | 10,998 |
Purchase Credit Impairment, Outstanding | 15 | 17 |
Consumer Direct Loans [Member] | Continuing Operations [Member] | Consumer Loans [Member] | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Individually Evaluated for Impairment, Allowance | 0 | 0 |
Collectively Evaluated for Impairment, Allowance | 32 | 30 |
Purchase Credit Impairment, Allowance | 0 | 0 |
Total loans | 2,350 | 1,809 |
Individually Evaluated for Impairment, Outstanding | 4 | 4 |
Collectively Evaluated for Impairment, Outstanding | 2,343 | 1,802 |
Purchase Credit Impairment, Outstanding | 3 | 3 |
Consumer Credit Card Financing Receivable [Member] | Continuing Operations [Member] | Consumer Loans [Member] | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Individually Evaluated for Impairment, Allowance | 0 | 0 |
Collectively Evaluated for Impairment, Allowance | 44 | 48 |
Purchase Credit Impairment, Allowance | 0 | 0 |
Total loans | 1,096 | 1,144 |
Individually Evaluated for Impairment, Outstanding | 3 | 3 |
Collectively Evaluated for Impairment, Outstanding | 1,093 | 1,141 |
Purchase Credit Impairment, Outstanding | 0 | 0 |
Consumer Indirect Loans [Member] | Continuing Operations [Member] | Consumer Loans [Member] | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Individually Evaluated for Impairment, Allowance | 3 | 3 |
Collectively Evaluated for Impairment, Allowance | 21 | 17 |
Purchase Credit Impairment, Allowance | 0 | 0 |
Total loans | 4,003 | 3,634 |
Individually Evaluated for Impairment, Outstanding | 35 | 36 |
Collectively Evaluated for Impairment, Outstanding | 3,968 | 3,598 |
Purchase Credit Impairment, Outstanding | 0 | 0 |
Education Lending [Member] | Discontinued Operations [Member] | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans at fair value | $ 2 | $ 2 |
Asset Quality - Changes in Liab
Asset Quality - Changes in Liability for Credit Losses on Lending Related Commitments (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance at beginning of period | $ 62 | $ 60 | $ 64 | $ 57 |
Provision (credit) for losses on lending-related commitments | 2 | (2) | 0 | 1 |
Balance at end of period | $ 64 | $ 58 | $ 64 | $ 58 |
Asset Quality - Changes in Outs
Asset Quality - Changes in Outstanding Unpaid Principal Balance, Carrying Amount, and Accretable Yield for PCI Loans (Details) - PCI Loans [Member] - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Mar. 31, 2019 | Dec. 31, 2017 | |
Accretable Yield | |||||
Balance at beginning of period | $ 118 | $ 117 | $ 131 | ||
Accretion | (9) | (19) | (42) | ||
Net reclassifications from nonaccretable to accretable | (5) | 8 | 50 | ||
Payments received, net | (3) | (5) | (21) | ||
Loans charged off | (1) | ||||
Balance at end of period | 101 | 101 | 117 | ||
Carrying Amount | 513 | 513 | 571 | $ 547 | $ 738 |
Outstanding Unpaid Principal Balance | $ 541 | $ 541 | $ 607 | $ 578 | $ 803 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value of Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
ASSETS MEASURED ON A RECURRING BASIS | ||
Total trading account securities | $ 1,005,000,000 | $ 849,000,000 |
Securities available for sale | 21,528,000,000 | 19,428,000,000 |
Loans, net of unearned income (residential) | 91,937,000,000 | 89,552,000,000 |
Loans held for sale (residential) | 0 | |
Derivative assets, netting adjustments | (413,000,000) | (333,000,000) |
Total derivative assets | 809,000,000 | 531,000,000 |
LIABILITIES MEASURED ON A RECURRING BASIS | ||
Derivative liabilities, netting adjustments | (319,000,000) | (337,000,000) |
US Treasury and Government [Member] | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Securities available for sale | 272,000,000 | 147,000,000 |
US States and Political Subdivisions Debt Securities [Member] | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Securities available for sale | 5,000,000 | 7,000,000 |
Other Securities [Member] | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Securities available for sale | 35,000,000 | 20,000,000 |
Residential Mortgage Backed Securities [Member] | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Securities available for sale | 2,061,000,000 | 2,105,000,000 |
Other Mortgage-Backed Securities [Member] | Commercial Mortgage Backed Securities [Member] | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Securities available for sale | 5,543,000,000 | 3,187,000,000 |
Recurring [Member] | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Total trading account securities | 983,000,000 | 824,000,000 |
Commercial loans | 22,000,000 | 25,000,000 |
Total trading account assets | 1,005,000,000 | 849,000,000 |
Securities available for sale | 21,528,000,000 | 19,428,000,000 |
Total other investments | 93,000,000 | 115,000,000 |
Loans, net of unearned income (residential) | 3,000,000 | 3,000,000 |
Loans held for sale (residential) | 164,000,000 | 54,000,000 |
Derivative assets, gross | 1,222,000,000 | 864,000,000 |
Derivative assets, netting adjustments | (413,000,000) | (333,000,000) |
Total derivative assets | 809,000,000 | 531,000,000 |
Accrued income and other assets | 0 | 0 |
Total assets at fair value | 23,602,000,000 | 20,980,000,000 |
LIABILITIES MEASURED ON A RECURRING BASIS | ||
Accrued expense and other liabilities | 0 | 0 |
Total liabilities on a recurring basis at fair value | 937,000,000 | 930,000,000 |
Recurring [Member] | US Treasury and Government [Member] | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Total trading account securities | 853,000,000 | 578,000,000 |
Securities available for sale | 272,000,000 | 147,000,000 |
Recurring [Member] | US States and Political Subdivisions Debt Securities [Member] | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Total trading account securities | 32,000,000 | 60,000,000 |
Securities available for sale | 5,000,000 | 7,000,000 |
Recurring [Member] | Other Securities [Member] | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Total trading account securities | 62,000,000 | 22,000,000 |
Securities available for sale | 35,000,000 | 20,000,000 |
Recurring [Member] | Commercial Mortgage Backed Securities [Member] | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Securities available for sale | 5,543,000,000 | 3,187,000,000 |
Recurring [Member] | Principal Investments Direct [Member] | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Total other investments | 1,000,000 | 1,000,000 |
Recurring [Member] | Principal Investments [Member] | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Total other investments | 77,000,000 | 97,000,000 |
Recurring [Member] | Equity Investments Direct [Member] | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Total other investments | 7,000,000 | 8,000,000 |
Recurring [Member] | Equity Investments [Member] | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Total other investments | 16,000,000 | 18,000,000 |
Recurring [Member] | Other Mortgage-Backed Securities [Member] | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Total trading account securities | 36,000,000 | 164,000,000 |
Recurring [Member] | Other Mortgage-Backed Securities [Member] | Residential Mortgage Backed Securities [Member] | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Securities available for sale | 2,061,000,000 | 2,105,000,000 |
Recurring [Member] | Short [Member] | ||
LIABILITIES MEASURED ON A RECURRING BASIS | ||
Short positions | 720,000,000 | 544,000,000 |
Recurring [Member] | Long [Member] | ||
LIABILITIES MEASURED ON A RECURRING BASIS | ||
Derivative liabilities, gross | 536,000,000 | 723,000,000 |
Derivative liabilities, netting adjustments | (319,000,000) | (337,000,000) |
Total derivative liabilities | 217,000,000 | 386,000,000 |
Recurring [Member] | Interest Rate [Member] | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Derivative assets, gross | 889,000,000 | 415,000,000 |
Recurring [Member] | Interest Rate [Member] | Long [Member] | ||
LIABILITIES MEASURED ON A RECURRING BASIS | ||
Derivative liabilities, gross | 220,000,000 | 297,000,000 |
Recurring [Member] | Foreign Exchange [Member] | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Derivative assets, gross | 70,000,000 | 106,000,000 |
Recurring [Member] | Foreign Exchange [Member] | Long [Member] | ||
LIABILITIES MEASURED ON A RECURRING BASIS | ||
Derivative liabilities, gross | 64,000,000 | 95,000,000 |
Recurring [Member] | Commodity [Member] | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Derivative assets, gross | 246,000,000 | 333,000,000 |
Recurring [Member] | Commodity [Member] | Long [Member] | ||
LIABILITIES MEASURED ON A RECURRING BASIS | ||
Derivative liabilities, gross | 236,000,000 | 323,000,000 |
Recurring [Member] | Credit [Member] | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Derivative assets, gross | 1,000,000 | 1,000,000 |
Recurring [Member] | Credit [Member] | Long [Member] | ||
LIABILITIES MEASURED ON A RECURRING BASIS | ||
Derivative liabilities, gross | 3,000,000 | 1,000,000 |
Recurring [Member] | Other [Member] | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Derivative assets, gross | 16,000,000 | 9,000,000 |
Recurring [Member] | Other [Member] | Long [Member] | ||
LIABILITIES MEASURED ON A RECURRING BASIS | ||
Derivative liabilities, gross | 13,000,000 | 7,000,000 |
Level 1 [Member] | Recurring [Member] | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Total trading account securities | 0 | 0 |
Commercial loans | 0 | 0 |
Total trading account assets | 0 | 0 |
Securities available for sale | 0 | 0 |
Total other investments | 0 | 0 |
Loans, net of unearned income (residential) | 0 | 0 |
Loans held for sale (residential) | 0 | 0 |
Derivative assets, gross | 41,000,000 | 70,000,000 |
Derivative assets, netting adjustments | 0 | 0 |
Total derivative assets | 41,000,000 | 70,000,000 |
Accrued income and other assets | 0 | 0 |
Total assets at fair value | 41,000,000 | 70,000,000 |
LIABILITIES MEASURED ON A RECURRING BASIS | ||
Accrued expense and other liabilities | 0 | 0 |
Total liabilities on a recurring basis at fair value | 42,000,000 | 72,000,000 |
Level 1 [Member] | Recurring [Member] | US Treasury and Government [Member] | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Total trading account securities | 0 | 0 |
Securities available for sale | 0 | 0 |
Level 1 [Member] | Recurring [Member] | US States and Political Subdivisions Debt Securities [Member] | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Total trading account securities | 0 | 0 |
Securities available for sale | 0 | 0 |
Level 1 [Member] | Recurring [Member] | Other Securities [Member] | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Total trading account securities | 0 | 0 |
Securities available for sale | 0 | 0 |
Level 1 [Member] | Recurring [Member] | Commercial Mortgage Backed Securities [Member] | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Securities available for sale | 0 | 0 |
Level 1 [Member] | Recurring [Member] | Principal Investments Direct [Member] | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Total other investments | 0 | 0 |
Level 1 [Member] | Recurring [Member] | Principal Investments [Member] | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Total other investments | 0 | 0 |
Level 1 [Member] | Recurring [Member] | Equity Investments Direct [Member] | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Total other investments | 0 | |
Level 1 [Member] | Recurring [Member] | Equity Investments Direct, NAV [Member] | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Total other investments | 0 | |
Level 1 [Member] | Recurring [Member] | Equity Investments [Member] | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Total other investments | 0 | 0 |
Level 1 [Member] | Recurring [Member] | Other Mortgage-Backed Securities [Member] | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Total trading account securities | 0 | 0 |
Level 1 [Member] | Recurring [Member] | Other Mortgage-Backed Securities [Member] | Residential Mortgage Backed Securities [Member] | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Securities available for sale | 0 | 0 |
Level 1 [Member] | Recurring [Member] | Short [Member] | ||
LIABILITIES MEASURED ON A RECURRING BASIS | ||
Short positions | 7,000,000 | 14,000,000 |
Level 1 [Member] | Recurring [Member] | Long [Member] | ||
LIABILITIES MEASURED ON A RECURRING BASIS | ||
Derivative liabilities, gross | 35,000,000 | 58,000,000 |
Derivative liabilities, netting adjustments | 0 | 0 |
Total derivative liabilities | 35,000,000 | 58,000,000 |
Level 1 [Member] | Recurring [Member] | Interest Rate [Member] | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Derivative assets, gross | 0 | 0 |
Level 1 [Member] | Recurring [Member] | Interest Rate [Member] | Long [Member] | ||
LIABILITIES MEASURED ON A RECURRING BASIS | ||
Derivative liabilities, gross | 0 | 0 |
Level 1 [Member] | Recurring [Member] | Foreign Exchange [Member] | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Derivative assets, gross | 41,000,000 | 70,000,000 |
Level 1 [Member] | Recurring [Member] | Foreign Exchange [Member] | Long [Member] | ||
LIABILITIES MEASURED ON A RECURRING BASIS | ||
Derivative liabilities, gross | 35,000,000 | 58,000,000 |
Level 1 [Member] | Recurring [Member] | Commodity [Member] | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Derivative assets, gross | 0 | 0 |
Level 1 [Member] | Recurring [Member] | Commodity [Member] | Long [Member] | ||
LIABILITIES MEASURED ON A RECURRING BASIS | ||
Derivative liabilities, gross | 0 | 0 |
Level 1 [Member] | Recurring [Member] | Credit [Member] | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Derivative assets, gross | 0 | 0 |
Level 1 [Member] | Recurring [Member] | Credit [Member] | Long [Member] | ||
LIABILITIES MEASURED ON A RECURRING BASIS | ||
Derivative liabilities, gross | 0 | 0 |
Level 1 [Member] | Recurring [Member] | Other [Member] | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Derivative assets, gross | 0 | 0 |
Level 1 [Member] | Recurring [Member] | Other [Member] | Long [Member] | ||
LIABILITIES MEASURED ON A RECURRING BASIS | ||
Derivative liabilities, gross | 0 | 0 |
Level 2 [Member] | Recurring [Member] | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Total trading account securities | 983,000,000 | 824,000,000 |
Commercial loans | 22,000,000 | 25,000,000 |
Total trading account assets | 1,005,000,000 | 849,000,000 |
Securities available for sale | 21,517,000,000 | 19,408,000,000 |
Total other investments | 0 | 1,000,000 |
Loans, net of unearned income (residential) | 0 | 0 |
Loans held for sale (residential) | 164,000,000 | 54,000,000 |
Derivative assets, gross | 1,171,000,000 | 786,000,000 |
Derivative assets, netting adjustments | 0 | 0 |
Total derivative assets | 1,171,000,000 | 786,000,000 |
Accrued income and other assets | 0 | 0 |
Total assets at fair value | 23,857,000,000 | 21,098,000,000 |
LIABILITIES MEASURED ON A RECURRING BASIS | ||
Accrued expense and other liabilities | 0 | 0 |
Total liabilities on a recurring basis at fair value | 1,213,000,000 | 1,195,000,000 |
Level 2 [Member] | Recurring [Member] | US Treasury and Government [Member] | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Total trading account securities | 853,000,000 | 578,000,000 |
Securities available for sale | 272,000,000 | 147,000,000 |
Level 2 [Member] | Recurring [Member] | US States and Political Subdivisions Debt Securities [Member] | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Total trading account securities | 32,000,000 | 60,000,000 |
Securities available for sale | 5,000,000 | 7,000,000 |
Level 2 [Member] | Recurring [Member] | Other Securities [Member] | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Total trading account securities | 62,000,000 | 22,000,000 |
Securities available for sale | 24,000,000 | 0 |
Level 2 [Member] | Recurring [Member] | Commercial Mortgage Backed Securities [Member] | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Securities available for sale | 5,543,000,000 | 3,187,000,000 |
Level 2 [Member] | Recurring [Member] | Principal Investments Direct [Member] | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Total other investments | 0 | 0 |
Level 2 [Member] | Recurring [Member] | Principal Investments [Member] | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Total other investments | 0 | 0 |
Level 2 [Member] | Recurring [Member] | Equity Investments Direct [Member] | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Total other investments | 0 | 1,000,000 |
Level 2 [Member] | Recurring [Member] | Equity Investments [Member] | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Total other investments | 0 | 1,000,000 |
Level 2 [Member] | Recurring [Member] | Other Mortgage-Backed Securities [Member] | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Total trading account securities | 36,000,000 | 164,000,000 |
Level 2 [Member] | Recurring [Member] | Other Mortgage-Backed Securities [Member] | Residential Mortgage Backed Securities [Member] | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Securities available for sale | 2,061,000,000 | 2,105,000,000 |
Level 2 [Member] | Recurring [Member] | Short [Member] | ||
LIABILITIES MEASURED ON A RECURRING BASIS | ||
Short positions | 713,000,000 | 530,000,000 |
Level 2 [Member] | Recurring [Member] | Long [Member] | ||
LIABILITIES MEASURED ON A RECURRING BASIS | ||
Derivative liabilities, gross | 500,000,000 | 665,000,000 |
Derivative liabilities, netting adjustments | 0 | 0 |
Total derivative liabilities | 500,000,000 | 665,000,000 |
Level 2 [Member] | Recurring [Member] | Interest Rate [Member] | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Derivative assets, gross | 885,000,000 | 410,000,000 |
Level 2 [Member] | Recurring [Member] | Interest Rate [Member] | Long [Member] | ||
LIABILITIES MEASURED ON A RECURRING BASIS | ||
Derivative liabilities, gross | 220,000,000 | 297,000,000 |
Level 2 [Member] | Recurring [Member] | Foreign Exchange [Member] | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Derivative assets, gross | 29,000,000 | 36,000,000 |
Level 2 [Member] | Recurring [Member] | Foreign Exchange [Member] | Long [Member] | ||
LIABILITIES MEASURED ON A RECURRING BASIS | ||
Derivative liabilities, gross | 29,000,000 | 37,000,000 |
Level 2 [Member] | Recurring [Member] | Commodity [Member] | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Derivative assets, gross | 246,000,000 | 333,000,000 |
Level 2 [Member] | Recurring [Member] | Commodity [Member] | Long [Member] | ||
LIABILITIES MEASURED ON A RECURRING BASIS | ||
Derivative liabilities, gross | 236,000,000 | 323,000,000 |
Level 2 [Member] | Recurring [Member] | Credit [Member] | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Derivative assets, gross | 1,000,000 | 1,000,000 |
Level 2 [Member] | Recurring [Member] | Credit [Member] | Long [Member] | ||
LIABILITIES MEASURED ON A RECURRING BASIS | ||
Derivative liabilities, gross | 2,000,000 | 1,000,000 |
Level 2 [Member] | Recurring [Member] | Other [Member] | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Derivative assets, gross | 10,000,000 | 6,000,000 |
Level 2 [Member] | Recurring [Member] | Other [Member] | Long [Member] | ||
LIABILITIES MEASURED ON A RECURRING BASIS | ||
Derivative liabilities, gross | 13,000,000 | 7,000,000 |
Level 3 [Member] | Recurring [Member] | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Total trading account securities | 0 | 0 |
Commercial loans | 0 | 0 |
Total trading account assets | 0 | 0 |
Securities available for sale | 11,000,000 | 20,000,000 |
Total other investments | 8,000,000 | 8,000,000 |
Loans, net of unearned income (residential) | 3,000,000 | 3,000,000 |
Loans held for sale (residential) | 0 | 0 |
Derivative assets, gross | 10,000,000 | 8,000,000 |
Derivative assets, netting adjustments | 0 | 0 |
Total derivative assets | 10,000,000 | 8,000,000 |
Accrued income and other assets | 0 | 0 |
Total assets at fair value | 32,000,000 | 39,000,000 |
LIABILITIES MEASURED ON A RECURRING BASIS | ||
Accrued expense and other liabilities | 0 | 0 |
Total liabilities on a recurring basis at fair value | 1,000,000 | 0 |
Level 3 [Member] | Recurring [Member] | US Treasury and Government [Member] | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Total trading account securities | 0 | 0 |
Securities available for sale | 0 | 0 |
Level 3 [Member] | Recurring [Member] | US States and Political Subdivisions Debt Securities [Member] | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Total trading account securities | 0 | 0 |
Securities available for sale | 0 | 0 |
Level 3 [Member] | Recurring [Member] | Other Securities [Member] | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Total trading account securities | 0 | 0 |
Securities available for sale | 11,000,000 | 20,000,000 |
Level 3 [Member] | Recurring [Member] | Commercial Mortgage Backed Securities [Member] | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Securities available for sale | 0 | 0 |
Level 3 [Member] | Recurring [Member] | Principal Investments Direct [Member] | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Total other investments | 1,000,000 | 1,000,000 |
Level 3 [Member] | Recurring [Member] | Principal Investments [Member] | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Total other investments | 1,000,000 | 1,000,000 |
Level 3 [Member] | Recurring [Member] | Equity Investments Direct [Member] | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Total other investments | 7,000,000 | 7,000,000 |
Level 3 [Member] | Recurring [Member] | Equity Investments [Member] | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Total other investments | 7,000,000 | 7,000,000 |
Level 3 [Member] | Recurring [Member] | Other Mortgage-Backed Securities [Member] | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Total trading account securities | 0 | 0 |
Level 3 [Member] | Recurring [Member] | Other Mortgage-Backed Securities [Member] | Residential Mortgage Backed Securities [Member] | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Securities available for sale | 0 | 0 |
Level 3 [Member] | Recurring [Member] | Short [Member] | ||
LIABILITIES MEASURED ON A RECURRING BASIS | ||
Short positions | 0 | 0 |
Level 3 [Member] | Recurring [Member] | Long [Member] | ||
LIABILITIES MEASURED ON A RECURRING BASIS | ||
Derivative liabilities, gross | 1,000,000 | 0 |
Derivative liabilities, netting adjustments | 0 | 0 |
Total derivative liabilities | 1,000,000 | 0 |
Level 3 [Member] | Recurring [Member] | Interest Rate [Member] | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Derivative assets, gross | 4,000,000 | 5,000,000 |
Level 3 [Member] | Recurring [Member] | Interest Rate [Member] | Long [Member] | ||
LIABILITIES MEASURED ON A RECURRING BASIS | ||
Derivative liabilities, gross | 0 | 0 |
Level 3 [Member] | Recurring [Member] | Foreign Exchange [Member] | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Derivative assets, gross | 0 | 0 |
Level 3 [Member] | Recurring [Member] | Foreign Exchange [Member] | Long [Member] | ||
LIABILITIES MEASURED ON A RECURRING BASIS | ||
Derivative liabilities, gross | 0 | 0 |
Level 3 [Member] | Recurring [Member] | Commodity [Member] | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Derivative assets, gross | 0 | 0 |
Level 3 [Member] | Recurring [Member] | Commodity [Member] | Long [Member] | ||
LIABILITIES MEASURED ON A RECURRING BASIS | ||
Derivative liabilities, gross | 0 | 0 |
Level 3 [Member] | Recurring [Member] | Credit [Member] | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Derivative assets, gross | 0 | 0 |
Level 3 [Member] | Recurring [Member] | Credit [Member] | Long [Member] | ||
LIABILITIES MEASURED ON A RECURRING BASIS | ||
Derivative liabilities, gross | 1,000,000 | 0 |
Level 3 [Member] | Recurring [Member] | Other [Member] | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Derivative assets, gross | 6,000,000 | 3,000,000 |
Level 3 [Member] | Recurring [Member] | Other [Member] | Long [Member] | ||
LIABILITIES MEASURED ON A RECURRING BASIS | ||
Derivative liabilities, gross | 0 | 0 |
Measured at NAV [Member] | Recurring [Member] | Principal Investments Indirect [Member] | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Total other investments | 76,000,000 | 96,000,000 |
Measured at NAV [Member] | Recurring [Member] | Equity Investments Direct, NAV [Member] | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Total other investments | 1,000,000 | 1,000,000 |
Measured at NAV [Member] | Recurring [Member] | Equity Investments Indirect, NAV [Member] | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Total other investments | 8,000,000 | 9,000,000 |
Collateralized Mortgage Obligations [Member] | Recurring [Member] | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Securities available for sale | 13,612,000,000 | 13,962,000,000 |
Collateralized Mortgage Obligations [Member] | Level 1 [Member] | Recurring [Member] | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Securities available for sale | 0 | 0 |
Collateralized Mortgage Obligations [Member] | Level 2 [Member] | Recurring [Member] | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Securities available for sale | 13,612,000,000 | 13,962,000,000 |
Collateralized Mortgage Obligations [Member] | Level 3 [Member] | Recurring [Member] | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Securities available for sale | $ 0 | $ 0 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) | 3 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other equity investments | $ 139,000,000 | $ 107,000,000 |
Impairment loss | 0 | |
Loans, net of allowance | 91,047,000,000 | 88,669,000,000 |
Discontinued Operations [Member] | Education Lending [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans, net of allowance | 964,000,000 | 1,100,000,000 |
Loans at fair value | 2,000,000 | 2,000,000 |
Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other investments | 632,000,000 | 666,000,000 |
Loans, net of allowance | 89,803,000,000 | 86,224,000,000 |
Loans at fair value | 3,000,000 | 3,000,000 |
Fair Value [Member] | Discontinued Operations [Member] | Education Lending [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans, net of allowance | 809,000,000 | 890,000,000 |
Carrying Amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other investments | 632,000,000 | 666,000,000 |
Loans, net of allowance | 91,044,000,000 | 88,666,000,000 |
Loans at fair value | 3,000,000 | 3,000,000 |
Carrying Amount [Member] | Discontinued Operations [Member] | Education Lending [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans, net of allowance | 1,000,000,000 | 1,100,000,000 |
Level 3 [Member] | Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other investments | 547,000,000 | 559,000,000 |
Loans, net of allowance | 89,803,000,000 | 86,224,000,000 |
Loans at fair value | 3,000,000 | 3,000,000 |
Recurring [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other investments | 93,000,000 | 115,000,000 |
Liabilities measured at fair value on non recurring basis | 937,000,000 | 930,000,000 |
Recurring [Member] | Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other investments | 8,000,000 | 8,000,000 |
Liabilities measured at fair value on non recurring basis | 1,000,000 | 0 |
Nonrecurring [Member] | Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Liabilities measured at fair value on non recurring basis | 0 | 0 |
Principal Investments Direct [Member] | Recurring [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other investments | 1,000,000 | 1,000,000 |
Principal Investments Direct [Member] | Recurring [Member] | Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other investments | $ 1,000,000 | $ 1,000,000 |
Fair Value Measurements - Fai_2
Fair Value Measurements - Fair Value of Direct and Indirect Investments, Related Unfunded Commitments and Financial Support Provided (Details) - Principal Investments [Member] - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Fair Value | $ 77 | $ 77 | ||
Unfunded Commitments | 24 | 24 | ||
Funded Commitments | 0 | $ 0 | 2 | $ 1 |
Funded Other | 0 | 0 | 0 | 0 |
Direct Investments [Member] | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Fair Value | 1 | 1 | ||
Unfunded Commitments | 0 | 0 | ||
Funded Commitments | 0 | 0 | 0 | 0 |
Funded Other | 0 | 0 | 0 | 0 |
Indirect Investments [Member] | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Fair Value | 76 | 76 | ||
Unfunded Commitments | 24 | 24 | ||
Funded Commitments | 0 | 0 | 2 | 1 |
Funded Other | $ 0 | $ 0 | $ 0 | $ 0 |
Fair Value Measurements - Chang
Fair Value Measurements - Change in Fair Values of Level 3 Financial Instruments (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Securities Available for Sale [Member] | Other Securities [Member] | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Beginning of Period Balance | $ 25 | $ 20 | $ 20 | $ 20 |
Gains (Losses) Included in Other Comprehensive Income | 10 | 0 | 15 | 0 |
Gains (Losses) Included in Earnings | 0 | 0 | 0 | 0 |
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Transfers Other | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | (24) | 0 | (24) | 0 |
End of Period Balance | 11 | 20 | 11 | 20 |
Unrealized Gains (Losses) Included in Earnings | 0 | 0 | 0 | 0 |
Other Investments [Member] | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Beginning of Period Balance | 8 | 7 | 7 | 3 |
Gains (Losses) Included in Other Comprehensive Income | 0 | 0 | 0 | 0 |
Gains (Losses) Included in Earnings | (1) | 0 | (1) | 0 |
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Transfers Other | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 0 | 1 | 4 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
End of Period Balance | 7 | 7 | 7 | 7 |
Unrealized Gains (Losses) Included in Earnings | 0 | 0 | 0 | 0 |
Other Investments [Member] | Principal Investments Direct [Member] | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Beginning of Period Balance | 1 | 12 | 1 | 13 |
Gains (Losses) Included in Other Comprehensive Income | 0 | 0 | 0 | 0 |
Gains (Losses) Included in Earnings | 0 | 1 | 0 | 0 |
Purchases | (1) | 1 | 0 | 1 |
Sales | 1 | (1) | 0 | (1) |
Settlements | 0 | 0 | 0 | 0 |
Transfers Other | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
End of Period Balance | 1 | 13 | 1 | 13 |
Unrealized Gains (Losses) Included in Earnings | 0 | 2 | 0 | 1 |
Other Investments [Member] | Principal Other Indirect Investments [Member] | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Beginning of Period Balance | 0 | |||
Gains (Losses) Included in Other Comprehensive Income | 0 | |||
Gains (Losses) Included in Earnings | 0 | |||
Purchases | 0 | |||
Sales | 0 | |||
Settlements | 0 | |||
Transfers Other | 0 | |||
Transfers into Level 3 | 0 | |||
Transfers out of Level 3 | 0 | |||
End of Period Balance | 0 | 0 | ||
Unrealized Gains (Losses) Included in Earnings | 0 | |||
Interest Rate [Member] | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Beginning of Period Balance | 3 | 4 | 5 | 9 |
Gains (Losses) Included in Other Comprehensive Income | 0 | 0 | 0 | 0 |
Gains (Losses) Included in Earnings | 2 | (1) | 3 | (2) |
Purchases | 0 | 0 | 0 | 1 |
Sales | 0 | (2) | 0 | (2) |
Settlements | 0 | 0 | 0 | 0 |
Transfers Other | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 4 | 2 | 4 |
Transfers out of Level 3 | (1) | 0 | (6) | (5) |
End of Period Balance | 4 | 5 | 4 | 5 |
Unrealized Gains (Losses) Included in Earnings | 0 | 0 | 0 | 0 |
Credit [Member] | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Beginning of Period Balance | (1) | 0 | 0 | 1 |
Gains (Losses) Included in Other Comprehensive Income | 0 | 0 | 0 | 0 |
Gains (Losses) Included in Earnings | 0 | (15) | 0 | (20) |
Purchases | 0 | 0 | (1) | 0 |
Sales | 0 | 0 | 0 | 0 |
Settlements | 0 | 6 | 0 | 10 |
Transfers Other | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
End of Period Balance | (1) | (9) | (1) | (9) |
Unrealized Gains (Losses) Included in Earnings | 0 | 0 | 0 | 0 |
Other [Member] | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Beginning of Period Balance | 4 | 3 | 3 | 3 |
Gains (Losses) Included in Other Comprehensive Income | 0 | 0 | 0 | 0 |
Gains (Losses) Included in Earnings | 0 | 0 | 0 | 0 |
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Transfers Other | 2 | 0 | 3 | 0 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
End of Period Balance | 6 | 3 | 6 | 3 |
Unrealized Gains (Losses) Included in Earnings | 0 | 0 | 0 | 0 |
Loans Held For Sale (Residential) [Member] | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Beginning of Period Balance | 1 | 1 | 0 | 1 |
Gains (Losses) Included in Other Comprehensive Income | 0 | 0 | 0 | 0 |
Gains (Losses) Included in Earnings | 0 | 0 | 0 | 0 |
Purchases | 0 | 0 | 0 | 0 |
Sales | (1) | (1) | (1) | (1) |
Settlements | 0 | 0 | 0 | 0 |
Transfers Other | 0 | 0 | 1 | 0 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
End of Period Balance | 0 | 0 | 0 | 0 |
Unrealized Gains (Losses) Included in Earnings | 0 | 0 | 0 | 0 |
Loans, Net of Unearned Income (Residential) [Member] | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Beginning of Period Balance | 3 | 2 | 3 | 2 |
Gains (Losses) Included in Other Comprehensive Income | 0 | 0 | 0 | 0 |
Gains (Losses) Included in Earnings | 0 | 0 | 0 | 0 |
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Transfers Other | 0 | 1 | 0 | 1 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
End of Period Balance | 3 | 3 | 3 | 3 |
Unrealized Gains (Losses) Included in Earnings | $ 0 | $ 0 | $ 0 | $ 0 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Nonrecurring Basis (Details) - Nonrecurring [Member] - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
ASSETS MEASURED ON A NONRECURRING BASIS | ||
Impaired loans and leases | $ 57 | $ 42 |
Accrued income and other assets | 21 | 16 |
Total assets at fair value | 78 | 58 |
Level 1 [Member] | ||
ASSETS MEASURED ON A NONRECURRING BASIS | ||
Impaired loans and leases | 0 | 0 |
Accrued income and other assets | 0 | 0 |
Total assets at fair value | 0 | 0 |
Level 2 [Member] | ||
ASSETS MEASURED ON A NONRECURRING BASIS | ||
Impaired loans and leases | 0 | 0 |
Accrued income and other assets | 0 | 0 |
Total assets at fair value | 0 | 0 |
Level 3 [Member] | ||
ASSETS MEASURED ON A NONRECURRING BASIS | ||
Impaired loans and leases | 57 | 42 |
Accrued income and other assets | 21 | 16 |
Total assets at fair value | $ 78 | $ 58 |
Fair Value Measurements - Quant
Fair Value Measurements - Quantitative Information about Level 3 Fair Value Measurements (Details) $ in Millions | Jun. 30, 2019USD ($) | Dec. 31, 2018USD ($) |
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Securities available for sale | $ 21,528 | $ 19,428 |
Derivative assets | 809 | 531 |
Recurring [Member] | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Securities available for sale | 21,528 | 19,428 |
Other investments | 93 | 115 |
Derivative assets | 809 | 531 |
Nonrecurring [Member] | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Impaired loans | 57 | 42 |
Level 3 [Member] | Recurring [Member] | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Securities available for sale | 11 | 20 |
Other investments | 8 | 8 |
Derivative assets | 10 | 8 |
Level 3 [Member] | Nonrecurring [Member] | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Impaired loans | 57 | 42 |
Valuation Technique, Discounted Cash Flow [Member] | Level 3 [Member] | Recurring [Member] | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Other investments | $ 7 | |
Valuation Technique, Discounted Cash Flow [Member] | Measurement Input, Discount Rate [Member] | Level 3 [Member] | Recurring [Member] | Minimum [Member] | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Other investments, measurement input | 0.1481 | |
Valuation Technique, Discounted Cash Flow [Member] | Measurement Input, Discount Rate [Member] | Level 3 [Member] | Recurring [Member] | Maximum [Member] | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Other investments, measurement input | 0.1678 | |
Valuation Technique, Discounted Cash Flow [Member] | Measurement Input, Discount Rate [Member] | Level 3 [Member] | Recurring [Member] | Weighted Average [Member] | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Other investments, measurement input | 0.1506 | |
Valuation Technique, Discounted Cash Flow [Member] | Measurement Input, Discount Marketability [Member] | Level 3 [Member] | Recurring [Member] | Weighted Average [Member] | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Other investments, measurement input | 0.3000 | |
Valuation Technique, Discounted Cash Flow [Member] | Measurement Input, Price Volatility [Member] | Level 3 [Member] | Recurring [Member] | Weighted Average [Member] | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Other investments, measurement input | 0.4900 | |
Valuation, Market Comparable Pricing [Member] | Level 3 [Member] | Recurring [Member] | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Loans held for investment | $ 3 | |
Valuation, Market Comparable Pricing [Member] | Measurement Input, Comparability Adjustment [Member] | Level 3 [Member] | Recurring [Member] | Minimum [Member] | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Loans held for investment, measurement input | 0.7857 | |
Valuation, Market Comparable Pricing [Member] | Measurement Input, Comparability Adjustment [Member] | Level 3 [Member] | Recurring [Member] | Maximum [Member] | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Loans held for investment, measurement input | 0.9575 | |
Valuation, Market Comparable Pricing [Member] | Measurement Input, Comparability Adjustment [Member] | Level 3 [Member] | Recurring [Member] | Weighted Average [Member] | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Loans held for investment, measurement input | 0.9040 | |
Valuation, Fair Value Of Underlying Collateral [Member] | Level 3 [Member] | Nonrecurring [Member] | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Impaired loans | $ 57 | $ 42 |
Valuation, Fair Value Of Underlying Collateral [Member] | Measurement Input, Discount Rate [Member] | Level 3 [Member] | Nonrecurring [Member] | Minimum [Member] | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Impaired loans, measurement input | 0 | 0.2000 |
Valuation, Fair Value Of Underlying Collateral [Member] | Measurement Input, Discount Rate [Member] | Level 3 [Member] | Nonrecurring [Member] | Maximum [Member] | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Impaired loans, measurement input | 0.8000 | 0.4000 |
Valuation, Fair Value Of Underlying Collateral [Member] | Measurement Input, Discount Rate [Member] | Level 3 [Member] | Nonrecurring [Member] | Weighted Average [Member] | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Impaired loans, measurement input | 0.1700 | 0.2100 |
Valuation, Appraised Value [Member] | Level 3 [Member] | Nonrecurring [Member] | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
OREO and other Level 3 assets | $ 18 | |
Interest Rate [Member] | Valuation Technique, Discounted Cash Flow [Member] | Level 3 [Member] | Recurring [Member] | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Derivative assets | $ 4 | |
Interest Rate [Member] | Valuation Technique, Discounted Cash Flow [Member] | Measurement Input, Default Rate [Member] | Level 3 [Member] | Recurring [Member] | Minimum [Member] | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Derivative assets, measurement input | 0.0002 | |
Interest Rate [Member] | Valuation Technique, Discounted Cash Flow [Member] | Measurement Input, Default Rate [Member] | Level 3 [Member] | Recurring [Member] | Maximum [Member] | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Derivative assets, measurement input | 1 | |
Interest Rate [Member] | Valuation Technique, Discounted Cash Flow [Member] | Measurement Input, Default Rate [Member] | Level 3 [Member] | Recurring [Member] | Weighted Average [Member] | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Derivative assets, measurement input | 0.0210 | |
Interest Rate [Member] | Valuation Technique, Discounted Cash Flow [Member] | Measurement Input, Internal Risk Rating [Member] | Level 3 [Member] | Recurring [Member] | Minimum [Member] | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Derivative assets, measurement input | 1 | |
Interest Rate [Member] | Valuation Technique, Discounted Cash Flow [Member] | Measurement Input, Internal Risk Rating [Member] | Level 3 [Member] | Recurring [Member] | Maximum [Member] | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Derivative assets, measurement input | 19 | |
Interest Rate [Member] | Valuation Technique, Discounted Cash Flow [Member] | Measurement Input, Internal Risk Rating [Member] | Level 3 [Member] | Recurring [Member] | Weighted Average [Member] | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Derivative assets, measurement input | 9.021 | |
Interest Rate [Member] | Valuation Technique, Discounted Cash Flow [Member] | Measurement Input, Loss Given Default [Member] | Level 3 [Member] | Recurring [Member] | Minimum [Member] | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Derivative assets, measurement input | 0 | |
Interest Rate [Member] | Valuation Technique, Discounted Cash Flow [Member] | Measurement Input, Loss Given Default [Member] | Level 3 [Member] | Recurring [Member] | Maximum [Member] | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Derivative assets, measurement input | 1 | |
Interest Rate [Member] | Valuation Technique, Discounted Cash Flow [Member] | Measurement Input, Loss Given Default [Member] | Level 3 [Member] | Recurring [Member] | Weighted Average [Member] | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Derivative assets, measurement input | 0.492 | |
Credit [Member] | Valuation Technique, Discounted Cash Flow [Member] | Level 3 [Member] | Recurring [Member] | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Derivative liabilities | $ (1) | |
Credit [Member] | Valuation Technique, Discounted Cash Flow [Member] | Measurement Input, Default Rate [Member] | Level 3 [Member] | Recurring [Member] | Minimum [Member] | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Derivative liabilities, measurement input | 0.0002 | |
Credit [Member] | Valuation Technique, Discounted Cash Flow [Member] | Measurement Input, Default Rate [Member] | Level 3 [Member] | Recurring [Member] | Maximum [Member] | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Derivative liabilities, measurement input | 1 | |
Credit [Member] | Valuation Technique, Discounted Cash Flow [Member] | Measurement Input, Default Rate [Member] | Level 3 [Member] | Recurring [Member] | Weighted Average [Member] | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Derivative liabilities, measurement input | 0.0236 | |
Credit [Member] | Valuation Technique, Discounted Cash Flow [Member] | Measurement Input, Internal Risk Rating [Member] | Level 3 [Member] | Recurring [Member] | Minimum [Member] | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Derivative liabilities, measurement input | 1 | |
Credit [Member] | Valuation Technique, Discounted Cash Flow [Member] | Measurement Input, Internal Risk Rating [Member] | Level 3 [Member] | Recurring [Member] | Maximum [Member] | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Derivative liabilities, measurement input | 19 | |
Credit [Member] | Valuation Technique, Discounted Cash Flow [Member] | Measurement Input, Internal Risk Rating [Member] | Level 3 [Member] | Recurring [Member] | Weighted Average [Member] | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Derivative liabilities, measurement input | 9.134 | |
Credit [Member] | Valuation Technique, Discounted Cash Flow [Member] | Measurement Input, Loss Given Default [Member] | Level 3 [Member] | Recurring [Member] | Minimum [Member] | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Derivative liabilities, measurement input | 0 | |
Credit [Member] | Valuation Technique, Discounted Cash Flow [Member] | Measurement Input, Loss Given Default [Member] | Level 3 [Member] | Recurring [Member] | Maximum [Member] | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Derivative liabilities, measurement input | 1 | |
Credit [Member] | Valuation Technique, Discounted Cash Flow [Member] | Measurement Input, Loss Given Default [Member] | Level 3 [Member] | Recurring [Member] | Weighted Average [Member] | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Derivative liabilities, measurement input | 0.50 | |
Other [Member] | Valuation Technique, Discounted Cash Flow [Member] | Level 3 [Member] | Recurring [Member] | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Derivative assets | $ 6 | |
Other [Member] | Valuation Technique, Discounted Cash Flow [Member] | Measurement Input, Loan Closing Rates [Member] | Level 3 [Member] | Recurring [Member] | Minimum [Member] | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Derivative assets, measurement input | 0.3670 | |
Other [Member] | Valuation Technique, Discounted Cash Flow [Member] | Measurement Input, Loan Closing Rates [Member] | Level 3 [Member] | Recurring [Member] | Maximum [Member] | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Derivative assets, measurement input | 0.9915 | |
Other [Member] | Valuation Technique, Discounted Cash Flow [Member] | Measurement Input, Loan Closing Rates [Member] | Level 3 [Member] | Recurring [Member] | Weighted Average [Member] | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Derivative assets, measurement input | 0.7462 | |
Other Securities [Member] | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Securities available for sale | $ 35 | $ 20 |
Other Securities [Member] | Recurring [Member] | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Securities available for sale | 35 | 20 |
Other Securities [Member] | Level 3 [Member] | Recurring [Member] | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Securities available for sale | 11 | 20 |
Other Securities [Member] | Valuation Technique, Discounted Cash Flow [Member] | Level 3 [Member] | Recurring [Member] | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Securities available for sale | $ 11 | |
Other Securities [Member] | Valuation Technique, Discounted Cash Flow [Member] | Measurement Input, Discount Rate [Member] | Level 3 [Member] | Recurring [Member] | Weighted Average [Member] | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Securities available for sale, measurement input | 0.1595 | |
Other Securities [Member] | Valuation Technique, Discounted Cash Flow [Member] | Measurement Input, Discount Marketability [Member] | Level 3 [Member] | Recurring [Member] | Weighted Average [Member] | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Securities available for sale, measurement input | 0.3000 | |
Other Securities [Member] | Valuation Technique, Discounted Cash Flow [Member] | Measurement Input, Price Volatility [Member] | Level 3 [Member] | Recurring [Member] | Weighted Average [Member] | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Securities available for sale, measurement input | 0.3800 | |
Principal Investments Direct [Member] | Recurring [Member] | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Other investments | $ 1 | 1 |
Principal Investments Direct [Member] | Level 3 [Member] | Recurring [Member] | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Other investments | $ 1 | $ 1 |
Fair Value Measurements - Fai_3
Fair Value Measurements - Fair Value Disclosures of Financial Instruments (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 | |
ASSETS | |||
Trading account assets | $ 1,005,000,000 | $ 849,000,000 | |
Loans held for sale | 0 | ||
Derivative assets | 809,000,000 | 531,000,000 | |
Securities available for sale | 21,528,000,000 | 19,428,000,000 | |
Amortized Cost | 10,878,000,000 | 11,519,000,000 | |
Held-to-maturity securities | 10,899,000,000 | 11,122,000,000 | |
Loans, net of allowance | 91,047,000,000 | 88,669,000,000 | |
Loans held for sale | [1] | 1,790,000,000 | 1,227,000,000 |
LIABILITIES | |||
Long-term debt | 14,312,000,000 | 13,732,000,000 | |
Carrying Amount [Member] | |||
ASSETS | |||
Trading account assets | 1,005,000,000 | 849,000,000 | |
Other investments | 632,000,000 | 666,000,000 | |
Loans, net of allowance | 3,000,000 | 3,000,000 | |
Loans held for sale | 164,000,000 | 54,000,000 | |
Securities available for sale | 21,528,000,000 | 19,428,000,000 | |
Amortized Cost | 10,878,000,000 | 11,519,000,000 | |
Loans, net of allowance | 91,044,000,000 | 88,666,000,000 | |
Loans held for sale | 1,626,000,000 | 1,173,000,000 | |
Cash and short-term investments | 3,050,000,000 | 3,240,000,000 | |
LIABILITIES | |||
Time deposits | 13,608,000,000 | 13,245,000,000 | |
Short-term borrowings | 881,000,000 | 863,000,000 | |
Long-term debt | 14,312,000,000 | 13,732,000,000 | |
Deposits with no stated maturity | 96,338,000,000 | 94,064,000,000 | |
Fair Value [Member] | |||
ASSETS | |||
Trading account assets | 1,005,000,000 | 849,000,000 | |
Other investments | 632,000,000 | 666,000,000 | |
Loans, net of allowance | 3,000,000 | 3,000,000 | |
Loans held for sale | 164,000,000 | 54,000,000 | |
Securities available for sale | 21,528,000,000 | 19,428,000,000 | |
Held-to-maturity securities | 10,899,000,000 | 11,122,000,000 | |
Loans, net of allowance | 89,803,000,000 | 86,224,000,000 | |
Loans held for sale | 1,626,000,000 | 1,173,000,000 | |
Cash and short-term investments | 3,050,000,000 | 3,240,000,000 | |
LIABILITIES | |||
Time deposits | 13,716,000,000 | 13,331,000,000 | |
Short-term borrowings | 881,000,000 | 863,000,000 | |
Long-term debt | 14,786,000,000 | 13,787,000,000 | |
Deposits with no stated maturity | 96,338,000,000 | 94,064,000,000 | |
Fair Value [Member] | Level 1 [Member] | |||
ASSETS | |||
Trading account assets | 0 | 0 | |
Other investments | 0 | 0 | |
Loans, net of allowance | 0 | 0 | |
Loans held for sale | 0 | 0 | |
Securities available for sale | 0 | 0 | |
Held-to-maturity securities | 0 | 0 | |
Loans, net of allowance | 0 | 0 | |
Loans held for sale | 0 | 0 | |
Cash and short-term investments | 3,050,000,000 | 3,240,000,000 | |
LIABILITIES | |||
Time deposits | 0 | 0 | |
Short-term borrowings | 7,000,000 | 14,000,000 | |
Long-term debt | 13,557,000,000 | 12,576,000,000 | |
Deposits with no stated maturity | 0 | 0 | |
Fair Value [Member] | Level 2 [Member] | |||
ASSETS | |||
Trading account assets | 1,005,000,000 | 849,000,000 | |
Other investments | 0 | 1,000,000 | |
Loans, net of allowance | 0 | 0 | |
Loans held for sale | 164,000,000 | 54,000,000 | |
Securities available for sale | 21,517,000,000 | 19,408,000,000 | |
Held-to-maturity securities | 10,899,000,000 | 11,122,000,000 | |
Loans, net of allowance | 0 | 0 | |
Loans held for sale | 0 | 0 | |
Cash and short-term investments | 0 | 0 | |
LIABILITIES | |||
Time deposits | 13,716,000,000 | 13,331,000,000 | |
Short-term borrowings | 874,000,000 | 849,000,000 | |
Long-term debt | 1,229,000,000 | 1,211,000,000 | |
Deposits with no stated maturity | 96,338,000,000 | 94,064,000,000 | |
Fair Value [Member] | Level 3 [Member] | |||
ASSETS | |||
Trading account assets | 0 | 0 | |
Other investments | 547,000,000 | 559,000,000 | |
Loans, net of allowance | 3,000,000 | 3,000,000 | |
Loans held for sale | 0 | 0 | |
Securities available for sale | 11,000,000 | 20,000,000 | |
Held-to-maturity securities | 0 | 0 | |
Loans, net of allowance | 89,803,000,000 | 86,224,000,000 | |
Loans held for sale | 1,626,000,000 | 1,173,000,000 | |
Cash and short-term investments | 0 | 0 | |
LIABILITIES | |||
Time deposits | 0 | 0 | |
Short-term borrowings | 0 | 0 | |
Long-term debt | 0 | 0 | |
Deposits with no stated maturity | 0 | 0 | |
Fair Value [Member] | Measured at NAV [Member] | |||
ASSETS | |||
Other investments | 85,000,000 | 106,000,000 | |
Derivatives Designated as Hedging Instruments [Member] | Carrying Amount [Member] | |||
ASSETS | |||
Derivative assets | 94,000,000 | 69,000,000 | |
LIABILITIES | |||
Derivative liabilities | 1,000,000 | (9,000,000) | |
Derivatives Designated as Hedging Instruments [Member] | Fair Value [Member] | |||
ASSETS | |||
Derivative assets | 94,000,000 | 69,000,000 | |
Derivative assets, Netting Adjustment | (11,000,000) | 17,000,000 | |
LIABILITIES | |||
Derivative liabilities | 1,000,000 | (9,000,000) | |
Derivative liabilities, Netting Adjustment | (11,000,000) | 1,000,000 | |
Derivatives Designated as Hedging Instruments [Member] | Fair Value [Member] | Level 1 [Member] | |||
ASSETS | |||
Derivative assets | 0 | 2,000,000 | |
LIABILITIES | |||
Derivative liabilities | 2,000,000 | 0 | |
Derivatives Designated as Hedging Instruments [Member] | Fair Value [Member] | Level 2 [Member] | |||
ASSETS | |||
Derivative assets | 105,000,000 | 50,000,000 | |
LIABILITIES | |||
Derivative liabilities | 10,000,000 | (10,000,000) | |
Derivatives Designated as Hedging Instruments [Member] | Fair Value [Member] | Level 3 [Member] | |||
ASSETS | |||
Derivative assets | 0 | 0 | |
LIABILITIES | |||
Derivative liabilities | 0 | 0 | |
Derivatives Not Designated as Hedging Instruments [Member] | Carrying Amount [Member] | |||
ASSETS | |||
Derivative assets | 715,000,000 | 462,000,000 | |
LIABILITIES | |||
Derivative liabilities | 216,000,000 | 395,000,000 | |
Derivatives Not Designated as Hedging Instruments [Member] | Fair Value [Member] | |||
ASSETS | |||
Derivative assets | 715,000,000 | 462,000,000 | |
Derivative assets, Netting Adjustment | (402,000,000) | (350,000,000) | |
LIABILITIES | |||
Derivative liabilities | 216,000,000 | 395,000,000 | |
Derivative liabilities, Netting Adjustment | (308,000,000) | (338,000,000) | |
Derivatives Not Designated as Hedging Instruments [Member] | Fair Value [Member] | Level 1 [Member] | |||
ASSETS | |||
Derivative assets | 41,000,000 | 68,000,000 | |
LIABILITIES | |||
Derivative liabilities | 33,000,000 | 58,000,000 | |
Derivatives Not Designated as Hedging Instruments [Member] | Fair Value [Member] | Level 2 [Member] | |||
ASSETS | |||
Derivative assets | 1,065,000,000 | 736,000,000 | |
LIABILITIES | |||
Derivative liabilities | 490,000,000 | 675,000,000 | |
Derivatives Not Designated as Hedging Instruments [Member] | Fair Value [Member] | Level 3 [Member] | |||
ASSETS | |||
Derivative assets | 11,000,000 | 8,000,000 | |
LIABILITIES | |||
Derivative liabilities | $ 1,000,000 | $ 0 | |
[1] | Total loans held for sale include real estate — residential mortgage loans held for sale at fair value of $164 million at June 30, 2019 , and $54 million at December 31, 2018 . |
Securities - Details of Securit
Securities - Details of Securities (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
SECURITIES AVAILABLE FOR SALE | ||
Amortized Cost | $ 21,394 | $ 19,917 |
Gross Unrealized Gains | 293 | 55 |
Gross Unrealized Losses | 159 | 544 |
Fair Value | 21,528 | 19,428 |
HELD-TO-MATURITY SECURITIES | ||
Amortized Cost | 10,878 | 11,519 |
Gross Unrealized Gains | 94 | 4 |
Gross Unrealized Losses | 73 | 401 |
Fair Value | 10,899 | 11,122 |
US Treasury and Government [Member] | ||
SECURITIES AVAILABLE FOR SALE | ||
Amortized Cost | 272 | 150 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 3 |
Fair Value | 272 | 147 |
US States and Political Subdivisions Debt Securities [Member] | ||
SECURITIES AVAILABLE FOR SALE | ||
Amortized Cost | 5 | 7 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 5 | 7 |
Collateralized Mortgage Obligations [Member] | ||
SECURITIES AVAILABLE FOR SALE | ||
Amortized Cost | 13,593 | 14,315 |
Gross Unrealized Gains | 111 | 20 |
Gross Unrealized Losses | 92 | 373 |
Fair Value | 13,612 | 13,962 |
HELD-TO-MATURITY SECURITIES | ||
Amortized Cost | 6,435 | 7,021 |
Gross Unrealized Gains | 28 | 2 |
Gross Unrealized Losses | 59 | 254 |
Fair Value | 6,404 | 6,769 |
Residential Mortgage Backed Securities [Member] | ||
SECURITIES AVAILABLE FOR SALE | ||
Amortized Cost | 2,035 | 2,128 |
Gross Unrealized Gains | 36 | 13 |
Gross Unrealized Losses | 10 | 36 |
Fair Value | 2,061 | 2,105 |
HELD-TO-MATURITY SECURITIES | ||
Amortized Cost | 456 | 490 |
Gross Unrealized Gains | 2 | 0 |
Gross Unrealized Losses | 1 | 14 |
Fair Value | 457 | 476 |
Other Securities [Member] | ||
SECURITIES AVAILABLE FOR SALE | ||
Amortized Cost | 17 | 17 |
Gross Unrealized Gains | 18 | 3 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 35 | 20 |
HELD-TO-MATURITY SECURITIES | ||
Amortized Cost | 15 | 12 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 15 | 12 |
Other Mortgage-Backed Securities [Member] | Commercial Mortgage Backed Securities [Member] | ||
SECURITIES AVAILABLE FOR SALE | ||
Amortized Cost | 5,472 | 3,300 |
Gross Unrealized Gains | 128 | 19 |
Gross Unrealized Losses | 57 | 132 |
Fair Value | 5,543 | 3,187 |
HELD-TO-MATURITY SECURITIES | ||
Amortized Cost | 3,972 | 3,996 |
Gross Unrealized Gains | 64 | 2 |
Gross Unrealized Losses | 13 | 133 |
Fair Value | $ 4,023 | $ 3,865 |
Securities - Available for Sale
Securities - Available for Sale Securities (Unrealized Loss Position) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Held-to-maturity securities: | ||
Temporarily impaired securities, fair value, less than 12 months | $ 259 | $ 647 |
Temporarily impaired securities, gross unrealized losses, less than 12 months | 1 | 2 |
Temporarily impaired securities, fair value, 12 months or longer | 14,298 | 24,158 |
Temporarily impaired securities, gross unrealized losses, 12 months or longer | 231 | 943 |
Temporarily impaired securities, fair value | 14,557 | 24,805 |
Temporarily impaired securities, gross unrealized losses | 232 | 945 |
US Treasury and Government [Member] | ||
Securities available for sale: | ||
Fair value, less than 12 months | 10 | 0 |
Gross unrealized losses, less than 12 months | 0 | 0 |
Fair value, 12 months or longer | 45 | 147 |
Gross unrealized losses, 12 months or longer | 0 | 3 |
Fair value | 55 | 147 |
Gross unrealized losses | 0 | 3 |
Collateralized Mortgage Obligations [Member] | ||
Securities available for sale: | ||
Fair value, less than 12 months | 183 | 570 |
Gross unrealized losses, less than 12 months | 1 | 2 |
Fair value, 12 months or longer | 6,941 | 10,945 |
Gross unrealized losses, 12 months or longer | 91 | 371 |
Fair value | 7,124 | 11,515 |
Gross unrealized losses | 92 | 373 |
Held-to-maturity securities: | ||
Fair value, less than 12 months | 0 | 0 |
Gross unrealized losses, less than 12 months | 0 | 0 |
Fair value, 12 months or longer | 3,941 | 6,416 |
Gross unrealized losses, 12 months or longer | 59 | 254 |
Fair value | 3,941 | 6,416 |
Gross unrealized losses | 59 | 254 |
Commercial Mortgage Backed Securities [Member] | ||
Securities available for sale: | ||
Fair value, less than 12 months | 0 | 0 |
Gross unrealized losses, less than 12 months | 0 | 0 |
Fair value, 12 months or longer | 1,779 | 1,729 |
Gross unrealized losses, 12 months or longer | 57 | 132 |
Fair value | 1,779 | 1,729 |
Gross unrealized losses | 132 | |
Held-to-maturity securities: | ||
Fair value, less than 12 months | 0 | 73 |
Gross unrealized losses, less than 12 months | 0 | 1 |
Fair value, 12 months or longer | 514 | 3,359 |
Gross unrealized losses, 12 months or longer | 13 | 133 |
Fair value | 514 | 3,432 |
Gross unrealized losses | 13 | 133 |
Other Securities [Member] | ||
Held-to-maturity securities: | ||
Fair value, less than 12 months | 7 | |
Gross unrealized losses, less than 12 months | 1 | |
Fair value, 12 months or longer | 0 | |
Gross unrealized losses, 12 months or longer | 0 | |
Fair value | 7 | |
Gross unrealized losses | 0 | |
Other Mortgage-Backed Securities [Member] | Residential Mortgage Backed Securities [Member] | ||
Securities available for sale: | ||
Fair value, less than 12 months | 1 | 4 |
Gross unrealized losses, less than 12 months | 1 | 1 |
Fair value, 12 months or longer | 996 | 1,087 |
Gross unrealized losses, 12 months or longer | 10 | 36 |
Fair value | 997 | 1,091 |
Gross unrealized losses | 10 | 36 |
Held-to-maturity securities: | ||
Fair value, less than 12 months | 58 | 0 |
Gross unrealized losses, less than 12 months | 1 | 0 |
Fair value, 12 months or longer | 81 | 475 |
Gross unrealized losses, 12 months or longer | 1 | 14 |
Fair value | 139 | 475 |
Gross unrealized losses | 1 | $ 14 |
Other Mortgage-Backed Securities [Member] | Commercial Mortgage Backed Securities [Member] | ||
Securities available for sale: | ||
Gross unrealized losses | $ 57 |
Securities - Additional Informa
Securities - Additional Information (Details) | 6 Months Ended | |
Jun. 30, 2019USD ($)loanposition | Dec. 31, 2018USD ($) | |
Debt Securities, Available-for-sale [Line Items] | ||
Impairment recognized in earnings | $ 0 | |
Loans pledged as collateral | $ 8,500,000,000 | |
Collateralized Mortgage Obligations [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Number of fixed rate collateralized mortgage obligations | loan | 278 | |
Weighted average maturity collateralized mortgage life | 3 years 8 months 19 days | |
Residential Mortgage Backed Securities [Member] | Agency residential mortgage-backed securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross unrealized losses | $ 10,000,000 | $ 36,000,000 |
Securities in unrealized loss positions, number of positions | position | 213 | |
Weighted average maturity mortgage backed securities | 3 years 9 months | |
Commercial Mortgage Backed Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross unrealized losses | $ 132,000,000 | |
Commercial Mortgage Backed Securities [Member] | Agency residential mortgage-backed securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross unrealized losses | $ 57,000,000 | |
Securities in unrealized loss positions, number of positions | position | 14 | |
Weighted average maturity mortgage backed securities | 4 years 1 month 13 days |
Securities - Securities by Matu
Securities - Securities by Maturity (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Investments, Debt and Equity Securities [Abstract] | ||
Amortized Cost of Securities Available for sale, Due in one year or less | $ 360 | |
Amortized Cost of Securities Available for sale, Due after one through five years | 16,532 | |
Amortized Cost of Securities Available for sale, Due after five through ten years | 4,493 | |
Amortized Cost of Securities Available for sale, Due after ten years | 9 | |
Amortized Cost | 21,394 | $ 19,917 |
Fair Value of Securities Available for sale, Due in one year or less | 378 | |
Fair Value of Securities Available for sale, Due after one through five years | 16,535 | |
Fair Value of Securities Available for sale, Due after five through ten years | 4,606 | |
Fair Value of Securities Available for sale, Due after ten years | 9 | |
Total Fair Value of Securities Available For Sale | 21,528 | 19,428 |
Amortized Cost of Held-to-Maturity Securities, Due in one year or less | 41 | |
Amortized Cost of Held-to-Maturity Securities, Due after one through five years | 7,605 | |
Amortized Cost of Held-to-Maturity Securities, Due after five through ten years | 3,232 | |
Amortized Cost of Held-to-Maturity Securities, Due after ten years | 0 | |
Amortized Cost | 10,878 | 11,519 |
Fair Value of Held-to-Maturity Securities, Due in one year or less | 41 | |
Fair Value of Held-to-Maturity Securities, Due after one through five years | 7,590 | |
Fair Value of Held-to-Maturity Securities, Due after five through ten years | 3,268 | |
Fair Value of Held-to-Maturity Securities, Due after ten years | 0 | |
Total Fair Value of Held-to-Maturity Securities | $ 10,899 | $ 11,122 |
Derivatives and Hedging Activ_3
Derivatives and Hedging Activities - Additional Information (Details) $ in Millions | 6 Months Ended | |
Jun. 30, 2019USD ($)derivativerating | Dec. 31, 2018USD ($)rating | |
Credit Derivatives [Line Items] | ||
Derivative assets after effects of bilateral collateral and master netting agreements | $ 94 | |
Derivative liabilities after effects of bilateral collateral and master netting agreements | 1 | |
Derivative assets not designated as hedging instruments after effects of bilateral collateral and master netting agreements, and a reserve for potential future losses | 715 | |
Derivative liabilities not designated as hedging instruments after effects of bilateral collateral and master netting agreements, and a reserve for potential future losses | 216 | |
Reclassify of after-tax net losses on derivative instruments from AOCI | $ 63 | |
Length of time hedge in cash flow hedge | 12 months | |
Reclassification of net losses related to terminated cash flow hedges from AOCI to income | $ 10 | |
Maximum length of time over which forecasted transactions are hedged, years | 10 years | |
Other Comprehensive income unrealized gain on derivatives arising during period net of tax | $ 24 | |
Cash collateral netted against derivative assets | 160 | $ 33 |
Collateral netted against derivative liabilities | 66 | 37 |
Gross exposure on derivatives, after taking into account the effects of bilateral collateral and master netting agreements | 384 | |
Net exposure on derivatives, after taking into account, the effects of bilateral collateral and master netting agreements | 117 | |
Over-collateralization on derivatives to broker-dealers and banks, after the application of master netting agreements and collateral | 113 | |
Additional collateral held in the form of securities | 4 | |
Default reserve associated with uncollateralized contracts | 6 | |
Gross exposure on derivatives after taking into account effects of master netting agreements | 731 | |
Net exposure on derivatives with clients after application of master netting agreements collateral and related reserve | 692 | |
Net liability position totaled | 2 | $ 1 |
Banking Subsidiary [Member] | ||
Credit Derivatives [Line Items] | ||
Net liability position totaled | 8 | |
Derivative assets included in net liability position | 6 | |
Derivative liabilities included in net liability position | (14) | |
Cash and securities collateral posted | $ 9 | |
Number of credit risk derivatives held | derivative | 0 | |
Banking Subsidiary [Member] | Unsecured Debt [Member] | ||
Credit Derivatives [Line Items] | ||
Number of ratings above noninvestment | rating | 4 | 4 |
Banking Subsidiary [Member] | Maximum [Member] | Unsecured Debt [Member] | ||
Credit Derivatives [Line Items] | ||
Payments to terminate contracts (less than for the $1 million) | $ 1 | $ 4 |
Derivatives and Hedging Activ_4
Derivatives and Hedging Activities - Fair Values, Volume of Activity and Gain (Loss) Information Related to Derivative Instruments (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 122,771 | $ 102,645 |
Derivative assets, netting adjustments | (413) | (333) |
Derivative Assets, net | 806 | 529 |
Derivative liabilities, netting adjustments | (319) | (337) |
Derivative Liabilities, net | 171 | 353 |
Derivatives Designated as Hedging Instruments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 37,269 | 28,668 |
Derivative Assets | 105 | 52 |
Derivative Liabilities | 12 | (10) |
Derivatives Not Designated as Hedging Instruments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 85,502 | 73,977 |
Derivative Assets | 1,117 | 812 |
Derivative Liabilities | 524 | 733 |
Interest Rate [Member] | Derivatives Designated as Hedging Instruments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 37,147 | 28,546 |
Derivative Assets | 105 | 50 |
Derivative Liabilities | 10 | (10) |
Interest Rate [Member] | Derivatives Not Designated as Hedging Instruments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 68,202 | 63,454 |
Derivative Assets | 784 | 365 |
Derivative Liabilities | 210 | 307 |
Foreign Exchange [Member] | Derivatives Designated as Hedging Instruments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 122 | 122 |
Derivative Assets | 0 | 2 |
Derivative Liabilities | 2 | 0 |
Foreign Exchange [Member] | Derivatives Not Designated as Hedging Instruments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 5,702 | 6,829 |
Derivative Assets | 70 | 104 |
Derivative Liabilities | 62 | 95 |
Commodity [Member] | Derivatives Not Designated as Hedging Instruments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 6,662 | 2,002 |
Derivative Assets | 246 | 333 |
Derivative Liabilities | 236 | 323 |
Credit [Member] | Derivatives Not Designated as Hedging Instruments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 453 | 226 |
Derivative Assets | 1 | 1 |
Derivative Liabilities | 3 | 1 |
Other [Member] | Derivatives Not Designated as Hedging Instruments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 4,483 | 1,466 |
Derivative Assets | 16 | 9 |
Derivative Liabilities | 13 | 7 |
Net Derivatives [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 122,771 | 102,645 |
Derivative Assets, net | 809 | 531 |
Derivative Liabilities, net | 217 | 386 |
Counterparty And Cash Collateral Netting [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 0 | 0 |
Derivative Assets, net | (3) | (2) |
Derivative Liabilities, net | $ (46) | $ (33) |
Derivatives and Hedging Activ_5
Derivatives and Hedging Activities - Cumulative Basis Adjustments on Fair Value Hedges (Details) - Interest Rate [Member] - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Long-term Debt [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Carrying amount of hedged item | $ 9,559 | $ 9,363 |
Hedge accounting basis adjustment | 237 | (6) |
Certificates of Deposit [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Carrying amount of hedged item | 194 | 343 |
Hedge accounting basis adjustment | 0 | (1) |
Bank Time Deposits [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Carrying amount of hedged item | 175 | 178 |
Hedge accounting basis adjustment | 0 | 0 |
Derivatives Not Designated as Hedging Instruments [Member] | Long-term Debt [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Hedge accounting basis adjustment | $ (10) | $ (10) |
Derivatives and Hedging Activ_6
Derivatives and Hedging Activities - Effect of Fair Value and Cash Flow Hedges on Income (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Interest expense — Long-term debt | $ (120) | $ (102) | $ (240) | $ (194) | |
Interest income — Loans | 1,082 | 1,000 | 2,148 | 1,940 | |
Deposits | (223) | (112) | (425) | (203) | |
Other income | [1] | 17 | 99 | 27 | 120 |
Interest Rate [Member] | Interest Expense, Long-Term Debt [Member] | Fair Value Hedging [Member] | |||||
Gain (Loss) on Fair Value Hedges Recognized in Earnings [Abstract] | |||||
Recognized on hedged items | (152) | 22 | (245) | 93 | |
Recognized on derivatives designated as hedging instruments | 142 | (25) | 224 | (94) | |
Net income (expense) recognized on fair value hedges | (10) | (3) | (21) | (1) | |
Interest Rate [Member] | Interest Expense, Long-Term Debt [Member] | Cash Flow Hedging [Member] | |||||
Cash Flow Hedges Derivative Instruments at Fair Value, Net [Abstract] | |||||
Realized gains (losses) (pre-tax) reclassified from AOCI into net income | 0 | 1 | (1) | 0 | |
Net income (expense) recognized on cash flow hedges | 0 | 1 | (1) | 0 | |
Interest Rate [Member] | Interest Income [Member] | Fair Value Hedging [Member] | |||||
Gain (Loss) on Fair Value Hedges Recognized in Earnings [Abstract] | |||||
Recognized on hedged items | 0 | 0 | 0 | 0 | |
Recognized on derivatives designated as hedging instruments | 0 | 0 | 0 | 0 | |
Net income (expense) recognized on fair value hedges | 0 | 0 | 0 | 0 | |
Interest Rate [Member] | Interest Income [Member] | Cash Flow Hedging [Member] | |||||
Cash Flow Hedges Derivative Instruments at Fair Value, Net [Abstract] | |||||
Realized gains (losses) (pre-tax) reclassified from AOCI into net income | (19) | (25) | (43) | (27) | |
Net income (expense) recognized on cash flow hedges | (19) | (25) | (43) | (27) | |
Interest Rate [Member] | Interest Expense, Deposits [Member] | Fair Value Hedging [Member] | |||||
Gain (Loss) on Fair Value Hedges Recognized in Earnings [Abstract] | |||||
Recognized on hedged items | (1) | 1 | (1) | 1 | |
Recognized on derivatives designated as hedging instruments | 0 | 0 | 0 | 0 | |
Net income (expense) recognized on fair value hedges | (1) | 1 | (1) | 1 | |
Interest Rate [Member] | Interest Expense, Deposits [Member] | Cash Flow Hedging [Member] | |||||
Cash Flow Hedges Derivative Instruments at Fair Value, Net [Abstract] | |||||
Realized gains (losses) (pre-tax) reclassified from AOCI into net income | 0 | 0 | 0 | 0 | |
Net income (expense) recognized on cash flow hedges | 0 | 0 | 0 | 0 | |
Interest Rate [Member] | Other Income [Member] | Fair Value Hedging [Member] | |||||
Gain (Loss) on Fair Value Hedges Recognized in Earnings [Abstract] | |||||
Recognized on hedged items | 0 | 0 | 0 | 0 | |
Recognized on derivatives designated as hedging instruments | 0 | 0 | 0 | 0 | |
Net income (expense) recognized on fair value hedges | 0 | 0 | 0 | 0 | |
Interest Rate [Member] | Other Income [Member] | Cash Flow Hedging [Member] | |||||
Cash Flow Hedges Derivative Instruments at Fair Value, Net [Abstract] | |||||
Realized gains (losses) (pre-tax) reclassified from AOCI into net income | 0 | 0 | 0 | 0 | |
Net income (expense) recognized on cash flow hedges | $ 0 | $ 0 | $ 0 | $ 0 | |
[1] | For the three and six months ended June 30, 2019 , and June 30, 2018 , net securities gains totaled less than $1 million. For the three and six months ended June 30, 2019 , and June 30, 2018 , we did not have any impairment losses related to securities. |
Derivatives and Hedging Activ_7
Derivatives and Hedging Activities - Derivative Instrument Cash Flow Hedge Earning Recognized by Income Statement Location (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Derivatives, Fair Value [Line Items] | ||||
Net Gains (Losses) Recognized in OCI | $ 266 | $ (45) | $ 372 | $ (131) |
Net Gains (Losses) Reclassified From OCI Into Income | (19) | (24) | (44) | (27) |
Interest Income [Member] | Interest Rate [Member] | Cash Flow Hedges [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Net Gains (Losses) Recognized in OCI | 270 | (58) | 385 | (146) |
Net Gains (Losses) Reclassified From OCI Into Income | (19) | (25) | (43) | (27) |
Interest Expense [Member] | Interest Rate [Member] | Cash Flow Hedges [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Net Gains (Losses) Recognized in OCI | (2) | 2 | (3) | 4 |
Net Gains (Losses) Reclassified From OCI Into Income | 0 | 1 | (1) | 0 |
Underwriting Discounts Fees And Commissions [Member] | Interest Rate [Member] | Cash Flow Hedges [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Net Gains (Losses) Recognized in OCI | (1) | 1 | (6) | 1 |
Net Gains (Losses) Reclassified From OCI Into Income | 0 | 0 | 0 | 0 |
Other Income [Member] | Foreign Exchange [Member] | Net Investment Hedges [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Net Gains (Losses) Recognized in OCI | (1) | 10 | (4) | 10 |
Net Gains (Losses) Reclassified From OCI Into Income | $ 0 | $ 0 | $ 0 | $ 0 |
Derivatives and Hedging Activ_8
Derivatives and Hedging Activities - Pre-Tax Net Gains (Losses) on Derivatives Not Designated as Hedging Instruments (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total net gains (losses) | $ 14 | $ 27 | $ 26 | $ 45 |
Interest Rate [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total net gains (losses) | 7 | 11 | 13 | 22 |
Foreign Exchange [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total net gains (losses) | 11 | 11 | 21 | 22 |
Commodity [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total net gains (losses) | 2 | 3 | 3 | 6 |
Credit [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total net gains (losses) | (8) | (14) | (14) | (17) |
Other Credit Derivatives [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total net gains (losses) | 2 | 16 | 3 | 12 |
Corporate Services Income [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total net gains (losses) | 20 | 25 | 40 | 50 |
Corporate Services Income [Member] | Interest Rate [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total net gains (losses) | 7 | 11 | 15 | 20 |
Corporate Services Income [Member] | Foreign Exchange [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total net gains (losses) | 11 | 11 | 21 | 22 |
Corporate Services Income [Member] | Commodity [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total net gains (losses) | 2 | 3 | 3 | 6 |
Corporate Services Income [Member] | Credit [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total net gains (losses) | 0 | 0 | 1 | 2 |
Corporate Services Income [Member] | Other Credit Derivatives [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total net gains (losses) | 0 | 0 | 0 | 0 |
Consumer Mortgage Income [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total net gains (losses) | 0 | 0 | 0 | 0 |
Consumer Mortgage Income [Member] | Interest Rate [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total net gains (losses) | 0 | 0 | 0 | 0 |
Consumer Mortgage Income [Member] | Foreign Exchange [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total net gains (losses) | 0 | 0 | 0 | 0 |
Consumer Mortgage Income [Member] | Commodity [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total net gains (losses) | 0 | 0 | 0 | 0 |
Consumer Mortgage Income [Member] | Credit [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total net gains (losses) | 0 | 0 | 0 | 0 |
Consumer Mortgage Income [Member] | Other Credit Derivatives [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total net gains (losses) | 0 | 0 | 0 | 0 |
Other Income [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total net gains (losses) | (6) | 2 | (14) | (5) |
Other Income [Member] | Interest Rate [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total net gains (losses) | 0 | 0 | (2) | 2 |
Other Income [Member] | Foreign Exchange [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total net gains (losses) | 0 | 0 | 0 | 0 |
Other Income [Member] | Commodity [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total net gains (losses) | 0 | 0 | 0 | 0 |
Other Income [Member] | Credit [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total net gains (losses) | (8) | (14) | (15) | (19) |
Other Income [Member] | Other Credit Derivatives [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total net gains (losses) | $ 2 | $ 16 | $ 3 | $ 12 |
Derivatives and Hedging Activ_9
Derivatives and Hedging Activities - Fair Value of Derivative Assets by Type (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Credit Derivatives [Line Items] | ||
Derivative assets before collateral | $ 969 | $ 564 |
Less: Related collateral | 160 | 33 |
Total derivative assets | 809 | 531 |
Interest Rate [Member] | ||
Credit Derivatives [Line Items] | ||
Derivative assets before collateral | 793 | 308 |
Foreign Exchange [Member] | ||
Credit Derivatives [Line Items] | ||
Derivative assets before collateral | 36 | 60 |
Commodity [Member] | ||
Credit Derivatives [Line Items] | ||
Derivative assets before collateral | 124 | 187 |
Credit [Member] | ||
Credit Derivatives [Line Items] | ||
Derivative assets before collateral | 0 | 0 |
Other [Member] | ||
Credit Derivatives [Line Items] | ||
Derivative assets before collateral | $ 16 | $ 9 |
Derivatives and Hedging Acti_10
Derivatives and Hedging Activities - Credit Derivatives Sold and Held (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Credit Derivatives [Line Items] | ||
Notional Amount | $ 126 | $ 22 |
Average Term (Years) | 0 years | 0 years |
Payment / Performance Risk | 0.00% | 0.00% |
Other [Member] | ||
Credit Derivatives [Line Items] | ||
Notional Amount | $ 126 | $ 22 |
Average Term (Years) | 13 years 10 months 2 days | 13 years 5 months 4 days |
Payment / Performance Risk | 2.50% | 17.18% |
Derivatives and Hedging Acti_11
Derivatives and Hedging Activities - Credit Risk Contingent Feature (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Credit Derivatives [Line Items] | ||
Additional collateral aggregate fair value | $ 4 | |
Standard & Poor's, A- Rating [Member] | One Rating Downgrade [Member] | ||
Credit Derivatives [Line Items] | ||
Additional collateral aggregate fair value | 0 | $ 2 |
Standard & Poor's, A- Rating [Member] | Two Rating Downgrade [Member] | ||
Credit Derivatives [Line Items] | ||
Additional collateral aggregate fair value | 0 | 2 |
Standard & Poor's, A- Rating [Member] | Three Rating Downgrade [Member] | ||
Credit Derivatives [Line Items] | ||
Additional collateral aggregate fair value | 0 | 2 |
Moody's, A3 Rating [Member] | One Rating Downgrade [Member] | ||
Credit Derivatives [Line Items] | ||
Additional collateral aggregate fair value | 0 | 2 |
Moody's, A3 Rating [Member] | Two Rating Downgrade [Member] | ||
Credit Derivatives [Line Items] | ||
Additional collateral aggregate fair value | 0 | 2 |
Moody's, A3 Rating [Member] | Three Rating Downgrade [Member] | ||
Credit Derivatives [Line Items] | ||
Additional collateral aggregate fair value | $ 0 | $ 2 |
Mortgage Servicing Assets - Cha
Mortgage Servicing Assets - Changes in Carrying Amount of Mortgage Servicing Assets (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Commercial Mortgage Backed Securities [Member] | ||||
Servicing Asset at Amortized Cost, Balance [Roll Forward] | ||||
Balance at beginning of period | $ 497 | $ 435 | $ 502 | $ 412 |
Servicing retained from loan sales | 23 | 29 | 41 | 56 |
Purchases | 17 | 12 | 23 | 33 |
Amortization | (28) | (25) | (57) | (50) |
Balance at end of period | 509 | 451 | 509 | 451 |
Fair value at end of period | 723 | 646 | 723 | 646 |
Residential Mortgage Backed Securities [Member] | ||||
Servicing Asset at Amortized Cost, Balance [Roll Forward] | ||||
Balance at beginning of period | 38 | 32 | 37 | 31 |
Servicing retained from loan sales | 2 | 3 | 4 | 5 |
Purchases | 0 | 0 | 0 | 0 |
Amortization | (1) | (1) | (2) | (2) |
Balance at end of period | 39 | 34 | 39 | 34 |
Fair value at end of period | $ 45 | $ 43 | $ 45 | $ 43 |
Mortgage Servicing Assets - Sch
Mortgage Servicing Assets - Schedule of Range and Weighted-Average of Significant Unobservable Inputs (Details) - Discounted Cash Flow [Member] - USD ($) | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Commercial Mortgage Backed Securities [Member] | Minimum [Member] | ||
Servicing Assets at Fair Value [Line Items] | ||
Expected defaults | 1.00% | 1.00% |
Residual cash flows discount rate | 7.00% | 7.00% |
Escrow earn rate | 1.92% | 2.40% |
Loan assumption rate | 0.00% | 0.00% |
Commercial Mortgage Backed Securities [Member] | Maximum [Member] | ||
Servicing Assets at Fair Value [Line Items] | ||
Expected defaults | 2.00% | 3.00% |
Residual cash flows discount rate | 11.54% | 15.00% |
Escrow earn rate | 3.13% | 3.82% |
Loan assumption rate | 3.02% | 3.00% |
Commercial Mortgage Backed Securities [Member] | Weighted Average [Member] | ||
Servicing Assets at Fair Value [Line Items] | ||
Expected defaults | 1.13% | 1.17% |
Residual cash flows discount rate | 9.26% | 9.06% |
Escrow earn rate | 2.63% | 3.10% |
Loan assumption rate | 1.40% | 1.19% |
Residential Mortgage Backed Securities [Member] | Minimum [Member] | ||
Servicing Assets at Fair Value [Line Items] | ||
Expected defaults | 7.50% | 8.50% |
Prepayment speed | 10.95% | 8.39% |
Servicing cost | $ 62,000,000 | $ 76,000,000 |
Residential Mortgage Backed Securities [Member] | Maximum [Member] | ||
Servicing Assets at Fair Value [Line Items] | ||
Expected defaults | 10.00% | 11.00% |
Prepayment speed | 62.06% | 49.39% |
Servicing cost | $ 4,375,000,000 | $ 4,385,000,000 |
Residential Mortgage Backed Securities [Member] | Weighted Average [Member] | ||
Servicing Assets at Fair Value [Line Items] | ||
Expected defaults | 7.53% | 8.54% |
Prepayment speed | 12.52% | 9.17% |
Servicing cost | $ 67,550,000 | $ 82,380,000 |
Mortgage Servicing Assets - Add
Mortgage Servicing Assets - Additional Information (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Commercial Mortgage Backed Securities [Member] | ||
Servicing Assets at Fair Value [Line Items] | ||
Contractual fee income from servicing commercial mortgage loans | $ 95 | $ 85 |
Amortization of servicing commercial mortgage loans | 57 | 50 |
Residential Mortgage Backed Securities [Member] | ||
Servicing Assets at Fair Value [Line Items] | ||
Contractual fee income from servicing commercial mortgage loans | 9 | 7 |
Amortization of servicing commercial mortgage loans | $ 2 | $ 2 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | |
Amount of extension of lease term | 5 years |
Carrying amount of residual assets covered by residual value guarantees | $ 289 |
Carrying amount of operating lease assets | $ 948 |
Leases, Excluding Ground Leases [Member] | Minimum [Member] | |
Lessee, Lease, Description [Line Items] | |
Lessee, lease term of operating or financing leases | 1 year |
Leases, Excluding Ground Leases [Member] | Maximum [Member] | |
Lessee, Lease, Description [Line Items] | |
Lessee, lease term of operating or financing leases | 20 years |
Ground Leases [Member] | |
Lessee, Lease, Description [Line Items] | |
Lessee, lease term of operating or financing leases | 30 years |
Leases - Components of Lease Ex
Leases - Components of Lease Expense and Income (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Leases [Abstract] | ||
Operating lease cost | $ 34 | $ 68 |
Finance lease cost: | ||
Amortization of right-of-use assets | 1 | 1 |
Variable lease cost | 6 | 11 |
Total lease cost | 41 | 80 |
Interest on lease liabilities (less than $1 million) | 1 | 1 |
Short-term lease cost (less than $1 million) | $ 1 | $ 1 |
Leases - Summary of Cash Flows
Leases - Summary of Cash Flows Related to Leases (Details) - USD ($) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Cash paid for amounts included in the measurement of lease liabilities: (a) | ||
Operating cash flows from operating leases | $ 37,000,000 | $ 73,000,000 |
Financing cash flows from finance leases | 1,000,000 | 1,000,000 |
Operating cash flows from finance leases (less than $1 million) | 1,000,000 | 1,000,000 |
Right-of-use assets obtained in exchange for lease obligations: (b) | ||
Operating leases | $ 16,000,000 | 44,000,000 |
Finance leases | $ 0 |
Leases - Summary of Additional
Leases - Summary of Additional Balance Sheet Information (Details) $ in Millions | Jun. 30, 2019USD ($) |
Leases [Abstract] | |
Operating lease assets | $ 695 |
Operating lease liabilities | 775 |
Finance leases: | |
Property and equipment, gross | 28 |
Accumulated depreciation | (16) |
Property and equipment, net | 12 |
Finance lease liabilities | $ 15 |
Leases - Summary of Information
Leases - Summary of Information Pertaining to Lease Term and Weighted-Average Discount Rate (Details) | Jun. 30, 2019 |
Weighted-average remaining lease term: | |
Operating leases | 7 years 9 months 18 days |
Finance leases | 6 years 5 months 8 days |
Weighted-average discount rate: | |
Operating leases | 3.28% |
Finance leases | 3.90% |
Leases - Summary of Maturities
Leases - Summary of Maturities of Lease Liabilities (Details) $ in Millions | Jun. 30, 2019USD ($) |
Operating Leases | |
2019 | $ 72 |
2020 | 141 |
2021 | 127 |
2022 | 111 |
2023 | 95 |
Thereafter | 339 |
Total lease payments | 885 |
Less imputed interest | 110 |
Total | 775 |
Finance Leases | |
2019 | 2 |
2020 | 3 |
2021 | 3 |
2022 | 3 |
2023 | 2 |
Thereafter | 5 |
Total lease payments | 18 |
Less imputed interest | 3 |
Total | 15 |
2019 | 74 |
2020 | 144 |
2021 | 130 |
2022 | 114 |
2023 | 97 |
Thereafter | 344 |
Total lease payments | 903 |
Less imputed interest | 113 |
Total | $ 790 |
Leases - Components of Equipmen
Leases - Components of Equipment Leasing Income (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Sales-type and direct financing leases | ||
Interest income on lease receivable | $ 31 | $ 61 |
Interest income related to accretion of unguaranteed residual asset | 3 | 6 |
Interest income on deferred fees and costs | 0 | 0 |
Total sales-type and direct financing lease income | 34 | 67 |
Operating leases | ||
Operating lease income related to lease payments | 33 | 66 |
Other operating leasing gains | 11 | 15 |
Total operating lease income and other leasing gains | 44 | 81 |
Total lease income | $ 78 | $ 148 |
Leases - Composition of Net Inv
Leases - Composition of Net Investment in Sales-Type and Direct Financing Leases (Details) $ in Millions | Jun. 30, 2019USD ($) |
Leases [Abstract] | |
Lease receivables | $ 3,689 |
Unearned income | (345) |
Unguaranteed residual value | 430 |
Deferred fees and costs | 17 |
Net investment in sales-type and direct financing leases | $ 3,791 |
Leases - Minimum Future Lease P
Leases - Minimum Future Lease Payments to be Received for Sales-Type and Direct Financing Leases (Details) $ in Millions | Jun. 30, 2019USD ($) |
Sales-type and direct financing lease payments | |
2019 | $ 640 |
2020 | 1,008 |
2021 | 731 |
2022 | 493 |
2023 | 318 |
Thereafter | 499 |
Total lease payments | $ 3,689 |
Leases - Minimum Future Lease_2
Leases - Minimum Future Lease Payments to be Received for Operating Leases (Details) $ in Millions | Jun. 30, 2019USD ($) |
Leases [Abstract] | |
2019 | $ 64 |
2020 | 123 |
2021 | 106 |
2022 | 90 |
2023 | 75 |
Thereafter | 220 |
Total lease payments | $ 678 |
Variable Interest Entities - Ad
Variable Interest Entities - Additional Information (Details) - USD ($) | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Variable Interest Entity [Line Items] | |||
Investments in operating partnerships | $ 287,000,000 | $ 248,000,000 | |
Liabilities related to investments in qualified affordable housing projects | 2,000,000 | 2,000,000 | |
Recurring [Member] | |||
Variable Interest Entity [Line Items] | |||
Other investments | 93,000,000 | 115,000,000 | |
LIHTC Investments [Member] | |||
Variable Interest Entity [Line Items] | |||
Investments in operating partnerships | 6,276,000,000 | 5,932,000,000 | |
Liabilities related to investments in qualified affordable housing projects | 2,588,000,000 | 2,569,000,000 | |
Tax credit of investment | 81,000,000 | ||
LIHTC Investments [Member] | Qualified affordable housing projects investment [Member] | |||
Variable Interest Entity [Line Items] | |||
Liabilities related to investments in qualified affordable housing projects | 489,000,000 | 532,000,000 | |
LIHTC Investments [Member] | Accrued Income And Other Assets [Member] | |||
Variable Interest Entity [Line Items] | |||
Investments in operating partnerships | 1,400,000,000 | 1,400,000,000 | |
LIHTC Investments [Member] | Investments [Member] | |||
Variable Interest Entity [Line Items] | |||
Amortization of investment | 89,000,000 | $ 83,000,000 | |
Tax credit of investment | 92,000,000 | ||
Guaranteed Funds [Member] | Investments [Member] | |||
Variable Interest Entity [Line Items] | |||
VIE, assets that can only be used to settle obligations | 0 | 0 | |
VIE, liabilities | 0 | 0 | |
Measured at NAV [Member] | Recurring [Member] | Principal Investments Indirect [Member] | |||
Variable Interest Entity [Line Items] | |||
Other investments | $ 76,000,000 | $ 96,000,000 |
Variable Interest Entities - Su
Variable Interest Entities - Summary of Variable Interest Entities Information (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Variable Interest Entity [Line Items] | ||
Total Assets | $ 287 | $ 248 |
Total Liabilities | 2 | 2 |
LIHTC Investments [Member] | ||
Variable Interest Entity [Line Items] | ||
Total Assets | 6,276 | 5,932 |
Total Liabilities | 2,588 | 2,569 |
Maximum Exposure to Loss | 1,739 | 1,740 |
KCC Indirect Investments [Member] | ||
Variable Interest Entity [Line Items] | ||
Total Assets | 15,018 | 19,659 |
Total Liabilities | 286 | 376 |
Maximum Exposure to Loss | $ 100 | $ 122 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Dec. 31, 2018 | |
Income Tax Contingency [Line Items] | ||||
Total income tax expense (benefit), rate | 16.80% | 17.60% | ||
Combined federal and state statutory tax rate | 23.70% | |||
Federal deferred tax asset | $ 101 | $ 101 | $ 222 | |
Valuation allowance | 11 | 11 | $ 11 | |
Key Corp [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Unrecognized tax benefits | 37 | 37 | ||
First Niagara Bank, N.A. [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Allocated bad debt deductions | $ 92 | $ 92 |
Acquisitions, Divestiture, an_2
Acquisitions, Divestiture, and Discontinued Operations - Additional Information (Details) $ in Millions | May 04, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Apr. 03, 2019Branch | Dec. 31, 2018USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Goodwill | $ 2,664 | $ 2,516 | ||||
Gain on sale | 0 | $ 78 | ||||
Disposal Group, Not Discontinued Operations [Member] | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Gain on sale | $ 73 | $ 5 | ||||
Discontinued Operations [Member] | Government Guaranteed Loans [Member] | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Loans included in divestiture | 964 | $ 1,100 | ||||
Laurel Road Bank [Member] | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Number of bank branches excluded from transaction | Branch | 3 | |||||
Intangible assets acquired | 37 | |||||
Goodwill | $ 148 |
Securities Financing Activiti_3
Securities Financing Activities - Summarized Securities Financing Agreements (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Securities Financing Transaction [Line Items] | ||
Reverse repurchase agreements | $ 0 | $ 0 |
Total | 0 | 0 |
Repurchase agreements | 0 | 0 |
Total | 0 | 0 |
Counterparty And Cash Collateral Netting [Member] | ||
Securities Financing Transaction [Line Items] | ||
Reverse repurchase agreements | (204) | 0 |
Total | (204) | 0 |
Repurchase agreements | (155) | (305) |
Total | (155) | (305) |
Federal Agency CMOs [Member] | ||
Securities Financing Transaction [Line Items] | ||
Assets pledged as collateral | 211 | |
Liabilities pledged as collateral | 155 | |
Gross Amounts Presented In Balance Sheets [Member] | ||
Securities Financing Transaction [Line Items] | ||
Reverse repurchase agreements | 210 | 14 |
Total | 210 | 14 |
Repurchase agreements | 161 | 319 |
Total | 161 | 319 |
Netting Adjustments [Member] | ||
Securities Financing Transaction [Line Items] | ||
Reverse repurchase agreements | (6) | (14) |
Total | (6) | (14) |
Repurchase agreements | (6) | (14) |
Total | $ (6) | $ (14) |
Employee Benefits - Net Pension
Employee Benefits - Net Pension Cost (Benefit) for All Funded and Unfunded Plans (Details) - Pension Plans [Member] - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Interest cost on PBO | $ 12 | $ 10 | $ 23 | $ 20 |
Expected return on plan assets | (12) | (13) | (24) | (26) |
Amortization of losses | 3 | 4 | 7 | 8 |
Net pension/postretirement benefit cost | $ 3 | $ 1 | $ 6 | $ 2 |
Trust Preferred Securities Is_3
Trust Preferred Securities Issued by Unconsolidated Subsidiaries - Summary of Trust Preferred Securities, Common Stock and Related Debentures (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Common Stock | $ 1,257 | $ 1,257 |
Debentures adjustments related to financial instrument hedging | 58 | 46 |
KeyCorp Capital I [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Trust Preferred Securities, Net of Discount | 156 | |
Common Stock | 6 | |
Principal Amount of of Debentures, Net of Discount | $ 162 | |
Interest Rate of Trust Preferred Securities and Debentures | 3.332% | |
KeyCorp Capital II [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Trust Preferred Securities, Net of Discount | $ 106 | |
Common Stock | 4 | |
Principal Amount of of Debentures, Net of Discount | $ 110 | |
Interest Rate of Trust Preferred Securities and Debentures | 6.875% | |
KeyCorp Capital III [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Trust Preferred Securities, Net of Discount | $ 138 | |
Common Stock | 4 | |
Principal Amount of of Debentures, Net of Discount | $ 142 | |
Interest Rate of Trust Preferred Securities and Debentures | 7.75% | |
HNC Statutory Trust III [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Trust Preferred Securities, Net of Discount | $ 19 | |
Common Stock | 1 | |
Principal Amount of of Debentures, Net of Discount | $ 20 | |
Interest Rate of Trust Preferred Securities and Debentures | 3.924% | |
Willow Grove Statutory Trust I [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Trust Preferred Securities, Net of Discount | $ 18 | |
Common Stock | 1 | |
Principal Amount of of Debentures, Net of Discount | $ 19 | |
Interest Rate of Trust Preferred Securities and Debentures | 3.72% | |
HNC Statutory Trust IV [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Trust Preferred Securities, Net of Discount | $ 16 | |
Common Stock | 1 | |
Principal Amount of of Debentures, Net of Discount | $ 17 | |
Interest Rate of Trust Preferred Securities and Debentures | 3.863% | |
Westbank Capital Trust II [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Trust Preferred Securities, Net of Discount | $ 7 | |
Common Stock | 0 | |
Principal Amount of of Debentures, Net of Discount | $ 7 | |
Interest Rate of Trust Preferred Securities and Debentures | 4.577% | |
Westbank Capital Trust III [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Trust Preferred Securities, Net of Discount | $ 7 | |
Common Stock | 0 | |
Principal Amount of of Debentures, Net of Discount | $ 7 | |
Interest Rate of Trust Preferred Securities and Debentures | 4.577% | |
Business Trusts [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Trust Preferred Securities, Net of Discount | $ 467 | 454 |
Common Stock | 17 | 17 |
Principal Amount of of Debentures, Net of Discount | $ 484 | $ 471 |
Interest Rate of Trust Preferred Securities and Debentures | 5.536% | 5.447% |
Treasury Rate [Member] | KeyCorp Capital II [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Basis spread on variable rate | 0.20% | |
Treasury Rate [Member] | KeyCorp Capital III [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Basis spread on variable rate | 0.25% | |
London Interbank Offered Rate (LIBOR) [Member] | KeyCorp Capital I [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Basis spread on variable rate | 0.74% | |
London Interbank Offered Rate (LIBOR) [Member] | HNC Statutory Trust III [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Basis spread on variable rate | 1.40% | |
London Interbank Offered Rate (LIBOR) [Member] | Willow Grove Statutory Trust I [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Basis spread on variable rate | 1.31% | |
London Interbank Offered Rate (LIBOR) [Member] | HNC Statutory Trust IV [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Basis spread on variable rate | 1.28% | |
London Interbank Offered Rate (LIBOR) [Member] | Westbank Capital Trust II and III [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Basis spread on variable rate | 2.19% | |
Redemption upon either tax or a capital treatment event [Member] | Treasury Rate [Member] | Keycorp Capital II and III [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Basis spread on variable rate | 0.50% |
Contingent Liabilities and Gu_3
Contingent Liabilities and Guarantees - Guarantees (Details) $ in Millions | Jun. 30, 2019USD ($) |
Guarantor Obligations [Line Items] | |
Maximum Potential Undiscounted Future Payments | $ 11,949 |
Liability Recorded | 134 |
Written Put Options [Member] | |
Guarantor Obligations [Line Items] | |
Maximum Potential Undiscounted Future Payments | 2,854 |
Liability Recorded | 49 |
Standby Letters of Credit [Member] | |
Guarantor Obligations [Line Items] | |
Maximum Potential Undiscounted Future Payments | 3,086 |
Liability Recorded | 73 |
Recourse Agreement with FNMA [Member] | |
Guarantor Obligations [Line Items] | |
Maximum Potential Undiscounted Future Payments | 4,392 |
Liability Recorded | 6 |
Residential Mortgage Reserve [Member] | |
Guarantor Obligations [Line Items] | |
Maximum Potential Undiscounted Future Payments | 1,617 |
Liability Recorded | $ 6 |
Contingent Liabilities and Gu_4
Contingent Liabilities and Guarantees - Additional Information (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Written Put Options [Member] | |
Commitments Contingencies And Guarantees [Line Items] | |
Weighted average life of written put options | 3 years |
Standby Letters of Credit [Member] | |
Commitments Contingencies And Guarantees [Line Items] | |
Remaining weighted-average life of standby letters of credit in years | 2 years |
Recourse Agreement with FNMA [Member] | |
Commitments Contingencies And Guarantees [Line Items] | |
Weighted-average remaining term for outstanding commercial mortgage loans in years | 7 years 9 months 18 days |
Unpaid principal balance outstanding of loans sold | $ 15,100 |
Maximum potential amount of undiscounted future payments possibly required as percentage of principal balance of loans outstanding | 29.00% |
Residential Mortgage Reserve [Member] | |
Commitments Contingencies And Guarantees [Line Items] | |
Unpaid principal balance outstanding of loans sold | $ 5,400 |
Maximum potential amount of undiscounted future payments possibly required as percentage of principal balance of loans outstanding | 30.00% |
Liability for estimated repurchase obligations on loans sold | $ 6 |
Minimum [Member] | Standby Letters of Credit [Member] | |
Commitments Contingencies And Guarantees [Line Items] | |
Remaining actual life of standby letters of credit | 1 year |
Minimum [Member] | Low [Member] | |
Commitments Contingencies And Guarantees [Line Items] | |
Guarantee obligations, percentage | 0.00% |
Minimum [Member] | Moderate [Member] | |
Commitments Contingencies And Guarantees [Line Items] | |
Guarantee obligations, percentage | 30.00% |
Minimum [Member] | High [Member] | |
Commitments Contingencies And Guarantees [Line Items] | |
Guarantee obligations, percentage | 70.00% |
Maximum [Member] | Standby Letters of Credit [Member] | |
Commitments Contingencies And Guarantees [Line Items] | |
Remaining actual life of standby letters of credit | 16 years |
Maximum [Member] | Low [Member] | |
Commitments Contingencies And Guarantees [Line Items] | |
Guarantee obligations, percentage | 30.00% |
Maximum [Member] | Moderate [Member] | |
Commitments Contingencies And Guarantees [Line Items] | |
Guarantee obligations, percentage | 70.00% |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income - Changes in AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | $ 15,596 | |||
Other comprehensive income before reclassification, net of income taxes | $ 511 | $ (110) | 777 | $ (327) |
Amounts reclassified from AOCI, net of income taxes | 17 | 21 | 39 | 26 |
Other amounts reclassified from AOCI, net of income taxes | (5) | (5) | ||
Total other comprehensive income (loss), net of tax | 528 | (94) | 816 | (306) |
Ending Balance | 16,971 | 16,971 | ||
Unrealized Gains (Losses) on Securities Available for Sale [Member] | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | (189) | (461) | (373) | (311) |
Other comprehensive income before reclassification, net of income taxes | 291 | (66) | 475 | (216) |
Amounts reclassified from AOCI, net of income taxes | 0 | 0 | 0 | 0 |
Other amounts reclassified from AOCI, net of income taxes | 0 | 0 | ||
Total other comprehensive income (loss), net of tax | 291 | (66) | 475 | (216) |
Ending Balance | 102 | (527) | 102 | (527) |
Unrealized Gains (Losses) on Derivative Financial Instruments [Member] | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | 49 | (149) | (50) | (86) |
Other comprehensive income before reclassification, net of income taxes | 204 | (35) | 284 | (100) |
Amounts reclassified from AOCI, net of income taxes | 15 | 18 | 34 | 20 |
Other amounts reclassified from AOCI, net of income taxes | 0 | 0 | ||
Total other comprehensive income (loss), net of tax | 219 | (17) | 318 | (80) |
Ending Balance | 268 | (166) | 268 | (166) |
Foreign Currency Translation Adjustment [Member] | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | (11) | 7 | (14) | 9 |
Other comprehensive income before reclassification, net of income taxes | 1 | (9) | 4 | (11) |
Amounts reclassified from AOCI, net of income taxes | 0 | 0 | 0 | 0 |
Other amounts reclassified from AOCI, net of income taxes | (5) | (5) | ||
Total other comprehensive income (loss), net of tax | 1 | (14) | 4 | (16) |
Ending Balance | (10) | (7) | (10) | (7) |
Net Pension and Postretirement Benefit Costs [Member] | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | (379) | (388) | (381) | (391) |
Other comprehensive income before reclassification, net of income taxes | 15 | 0 | 14 | 0 |
Amounts reclassified from AOCI, net of income taxes | 2 | 3 | 5 | 6 |
Other amounts reclassified from AOCI, net of income taxes | 0 | 0 | ||
Total other comprehensive income (loss), net of tax | 17 | 3 | 19 | 6 |
Ending Balance | (362) | (385) | (362) | (385) |
AOCI Attributable to Parent [Member] | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | (530) | (991) | (818) | (779) |
Total other comprehensive income (loss), net of tax | 528 | (94) | 816 | (306) |
Ending Balance | $ (2) | $ (1,085) | $ (2) | $ (1,085) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income - Reclassifications Out of AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Interest income — Loans | $ 1,082 | $ 1,000 | $ 2,148 | $ 1,940 |
Interest expense — Long-term debt | (120) | (102) | (240) | (194) |
Income (loss) from continuing operations before income taxes | 518 | 590 | 1,014 | 1,076 |
Income taxes | 87 | 103 | 169 | 165 |
Personnel expense | 589 | 586 | 1,152 | 1,180 |
INCOME (LOSS) FROM CONTINUING OPERATIONS | 423 | 479 | 829 | 895 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Unrealized Gains (Losses) on Derivative Financial Instruments [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Income (loss) from continuing operations before income taxes | (19) | (24) | (44) | (27) |
Income taxes | (4) | (6) | (10) | (7) |
INCOME (LOSS) FROM CONTINUING OPERATIONS | (15) | (18) | (34) | (20) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Net Pension and Postretirement Benefit Costs [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Income (loss) from continuing operations before income taxes | (3) | (4) | (7) | (8) |
Income taxes | (1) | (1) | (2) | (2) |
INCOME (LOSS) FROM CONTINUING OPERATIONS | (2) | (3) | (5) | (6) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Net Pension and Postretirement Benefit Costs [Member] | Amortization of Losses [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Personnel expense | (3) | (4) | (7) | (8) |
Interest Income [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Unrealized Gains (Losses) on Derivative Financial Instruments [Member] | Interest Rate [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Interest income — Loans | (19) | (25) | (43) | (27) |
Interest Expense [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Unrealized Gains (Losses) on Derivative Financial Instruments [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Interest expense — Long-term debt | $ 0 | $ 1 | $ (1) | $ 0 |
Shareholders' Equity - Comprehe
Shareholders' Equity - Comprehensive Capital Plan (Details) - USD ($) | Jul. 17, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Apr. 18, 2019 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||||
Repurchase of common shares | $ 346,000,000 | $ 279,000,000 | ||||
Cash dividends declared on common shares (in usd per share) | $ 0.17 | $ 0.120 | $ 0.340 | $ 0.225 | ||
2018 Capital Plan [Member] | ||||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||||
Authorized amount of share repurchases | $ 1,225,000,000 | $ 1,225,000,000 | ||||
Common shares repurchased, value | 180,000,000 | |||||
Repurchase of common shares | 179,000,000 | |||||
Employee equity compensation program Common Share repurchases | $ 1,000,000 | |||||
Cash dividends declared on common shares (in usd per share) | $ 0.17 | |||||
2019 Capital Plan [Member] | ||||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||||
Authorized amount of share repurchases | $ 1,000,000,000 | |||||
Subsequent Event [Member] | 2019 Capital Plan [Member] | ||||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||||
Cash dividends declared on common shares (in usd per share) | $ 0.185 | |||||
Percent increase to dividend | 9.00% |
Shareholders' Equity - Preferre
Shareholders' Equity - Preferred Stock (Details) | Jun. 30, 2019USD ($) | Apr. 29, 2019USD ($) | Dec. 31, 2018USD ($) |
Class of Stock [Line Items] | |||
Preferred stock issued | $ 1,900,000,000 | $ 1,450,000,000 | |
Series G Preferred Stock [Member] | |||
Class of Stock [Line Items] | |||
Preferred stock issued | $ 450,000,000 | ||
Depository Shares, Series G [Member] | |||
Class of Stock [Line Items] | |||
Depository receipt ratio | 0.025 | 0.025 |
Shareholders' Equity - Schedule
Shareholders' Equity - Schedule of Preferred Stock (Details) | Jun. 30, 2019USD ($)$ / sharesshares | Apr. 29, 2019 |
Series D Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Preferred stock, amount outstanding | $ | $ 525,000,000 | |
Preferred stock, shares authorized (in shares) | shares | 21,000 | |
Preferred stock, shares outstanding (in shares) | shares | 21,000 | |
Preferred stock, par value (in usd per share) | $ 1 | |
Preferred stock, liquidation preference, value | $ | $ 25,000 | |
Depository Shares, Series D [Member] | ||
Class of Stock [Line Items] | ||
Depository receipt ratio | 0.04 | |
Preferred stock, liquidation preference (in usd per share) | $ 1,000 | |
Dividend payable per share (in usd per share) | $ 12.50 | |
Series E Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Preferred stock, amount outstanding | $ | $ 500,000,000 | |
Preferred stock, shares authorized (in shares) | shares | 500,000 | |
Preferred stock, shares outstanding (in shares) | shares | 500,000 | |
Preferred stock, par value (in usd per share) | $ 1 | |
Preferred stock, liquidation preference, value | $ | $ 1,000 | |
Depository Shares, Series E [Member] | ||
Class of Stock [Line Items] | ||
Depository receipt ratio | 0.025 | |
Preferred stock, liquidation preference (in usd per share) | $ 25 | |
Dividend payable per share (in usd per share) | $ 0.382813 | |
Series F Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Preferred stock, amount outstanding | $ | $ 425,000,000 | |
Preferred stock, shares authorized (in shares) | shares | 425,000 | |
Preferred stock, shares outstanding (in shares) | shares | 425,000 | |
Preferred stock, par value (in usd per share) | $ 1 | |
Preferred stock, liquidation preference, value | $ | $ 1,000 | |
Depository Shares, Series F [Member] | ||
Class of Stock [Line Items] | ||
Depository receipt ratio | 0.025 | |
Preferred stock, liquidation preference (in usd per share) | $ 25 | |
Dividend payable per share (in usd per share) | $ 0.353125 | |
Series G Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Preferred stock, amount outstanding | $ | $ 450,000,000 | |
Preferred stock, shares authorized (in shares) | shares | 450,000 | |
Preferred stock, shares outstanding (in shares) | shares | 450,000 | |
Preferred stock, par value (in usd per share) | $ 1 | |
Preferred stock, liquidation preference, value | $ | $ 1,000 | |
Depository Shares, Series G [Member] | ||
Class of Stock [Line Items] | ||
Depository receipt ratio | 0.025 | 0.025 |
Preferred stock, liquidation preference (in usd per share) | $ 25 | |
Dividend payable per share (in usd per share) | $ 0 |
Business Segment Reporting - Ad
Business Segment Reporting - Additional Information (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019USD ($)Segment | Dec. 31, 2018USD ($)Segment | Jun. 30, 2019USD ($)industry_sectorBranch | |
Segment Reporting Information [Line Items] | |||
Number of operating segments | Segment | 2 | 2 | |
Goodwill | $ 2,516 | $ 2,664 | |
Consumer Bank [Member] | |||
Segment Reporting Information [Line Items] | |||
Goodwill | $ 1,600 | ||
Number Of State Branch Network | Branch | 15 | ||
Commercial Bank [Member] | |||
Segment Reporting Information [Line Items] | |||
Goodwill | $ 912 | ||
Number Of Industrial Sectors | industry_sector | 7 |
Business Segment Reporting - Sc
Business Segment Reporting - Schedule of Segment Reporting Information (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019USD ($)employee | Jun. 30, 2018USD ($)employee | Jun. 30, 2019USD ($)employee | Jun. 30, 2018USD ($)employee | |
SUMMARY OF OPERATIONS | ||||
Net interest income (TE) | $ 989 | $ 987 | $ 1,974 | $ 1,939 |
Noninterest income | 622 | 660 | 1,158 | 1,261 |
Total revenue (TE) | 1,611 | 1,647 | 3,132 | 3,200 |
Provision for credit losses | 74 | 64 | 136 | 125 |
Depreciation and amortization expense | 97 | 99 | 185 | 203 |
Other noninterest expense | 922 | 894 | 1,797 | 1,796 |
Income (loss) from continuing operations before income taxes (TE) | 518 | 590 | 1,014 | 1,076 |
Allocated income taxes and TE adjustments | 95 | 111 | 185 | 181 |
INCOME (LOSS) FROM CONTINUING OPERATIONS | 423 | 479 | 829 | 895 |
Income (loss) from discontinued operations, net of taxes | 2 | 3 | 3 | 5 |
NET INCOME (LOSS) | 425 | 482 | 832 | 900 |
Less: Net income (loss) attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
NET INCOME (LOSS) ATTRIBUTABLE TO KEY | 425 | 482 | 832 | 900 |
AVERAGE BALANCES | ||||
Loans and leases | 90,785 | 88,644 | 90,220 | 87,790 |
Total assets | 142,635 | 136,378 | 141,385 | 135,651 |
Deposits | 109,601 | 104,003 | 108,594 | 103,283 |
OTHER FINANCIAL DATA | ||||
Net loan charge-offs | $ 65 | $ 60 | $ 129 | $ 114 |
Return on average allocated equity, continuing operations | 10.26% | 12.78% | 10.37% | 12.06% |
Return on average allocated equity | 10.31% | 12.86% | 10.41% | 12.13% |
Average full-time equivalent employees | employee | 17,206 | 18,376 | 17,379 | 18,458 |
Operating Segments [Member] | Consumer Bank [Member] | ||||
SUMMARY OF OPERATIONS | ||||
Net interest income (TE) | $ 594 | $ 574 | $ 1,185 | $ 1,126 |
Noninterest income | 231 | 236 | 445 | 457 |
Total revenue (TE) | 825 | 810 | 1,630 | 1,583 |
Provision for credit losses | 40 | 39 | 85 | 73 |
Depreciation and amortization expense | 25 | 26 | 48 | 53 |
Other noninterest expense | 535 | 543 | 1,061 | 1,093 |
Income (loss) from continuing operations before income taxes (TE) | 225 | 202 | 436 | 364 |
Allocated income taxes and TE adjustments | 53 | 47 | 103 | 86 |
INCOME (LOSS) FROM CONTINUING OPERATIONS | 172 | 155 | 333 | 278 |
Income (loss) from discontinued operations, net of taxes | 0 | 0 | 0 | 0 |
NET INCOME (LOSS) | 172 | 155 | 333 | 278 |
Less: Net income (loss) attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
NET INCOME (LOSS) ATTRIBUTABLE TO KEY | 172 | 155 | 333 | 278 |
AVERAGE BALANCES | ||||
Loans and leases | 31,881 | 31,276 | 31,603 | 31,409 |
Total assets | 35,469 | 34,495 | 35,103 | 34,638 |
Deposits | 72,303 | 68,279 | 71,798 | 67,852 |
OTHER FINANCIAL DATA | ||||
Net loan charge-offs | $ 40 | $ 39 | $ 74 | $ 73 |
Return on average allocated equity, continuing operations | 21.12% | 18.88% | 20.76% | 16.98% |
Return on average allocated equity | 21.12% | 18.88% | 20.76% | 16.98% |
Average full-time equivalent employees | employee | 9,440 | 10,067 | 9,531 | 10,082 |
Operating Segments [Member] | Commercial Bank [Member] | ||||
SUMMARY OF OPERATIONS | ||||
Net interest income (TE) | $ 405 | $ 418 | $ 806 | $ 824 |
Noninterest income | 354 | 303 | 655 | 636 |
Total revenue (TE) | 759 | 721 | 1,461 | 1,460 |
Provision for credit losses | 33 | 25 | 49 | 54 |
Depreciation and amortization expense | 35 | 34 | 65 | 69 |
Other noninterest expense | 346 | 357 | 680 | 700 |
Income (loss) from continuing operations before income taxes (TE) | 345 | 305 | 667 | 637 |
Allocated income taxes and TE adjustments | 62 | 49 | 127 | 96 |
INCOME (LOSS) FROM CONTINUING OPERATIONS | 283 | 256 | 540 | 541 |
Income (loss) from discontinued operations, net of taxes | 0 | 0 | 0 | 0 |
NET INCOME (LOSS) | 283 | 256 | 540 | 541 |
Less: Net income (loss) attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
NET INCOME (LOSS) ATTRIBUTABLE TO KEY | 283 | 256 | 540 | 541 |
AVERAGE BALANCES | ||||
Loans and leases | 57,924 | 56,175 | 57,610 | 55,210 |
Total assets | 65,907 | 63,948 | 65,405 | 62,865 |
Deposits | 35,961 | 33,169 | 35,194 | 32,983 |
OTHER FINANCIAL DATA | ||||
Net loan charge-offs | $ 23 | $ 22 | $ 53 | $ 41 |
Return on average allocated equity, continuing operations | 24.57% | 22.99% | 23.93% | 24.74% |
Return on average allocated equity | 24.57% | 22.99% | 23.93% | 24.74% |
Average full-time equivalent employees | employee | 2,260 | 2,467 | 2,314 | 2,466 |
Other [Member] | ||||
SUMMARY OF OPERATIONS | ||||
Net interest income (TE) | $ (10) | $ (5) | $ (17) | $ (11) |
Noninterest income | 37 | 121 | 58 | 168 |
Total revenue (TE) | 27 | 116 | 41 | 157 |
Provision for credit losses | 1 | 0 | 2 | (2) |
Depreciation and amortization expense | 37 | 39 | 72 | 81 |
Other noninterest expense | 41 | (6) | 56 | 3 |
Income (loss) from continuing operations before income taxes (TE) | (52) | 83 | (89) | 75 |
Allocated income taxes and TE adjustments | (20) | 15 | (45) | (1) |
INCOME (LOSS) FROM CONTINUING OPERATIONS | (32) | 68 | (44) | 76 |
Income (loss) from discontinued operations, net of taxes | 2 | 3 | 3 | 5 |
NET INCOME (LOSS) | (30) | 71 | (41) | 81 |
Less: Net income (loss) attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
NET INCOME (LOSS) ATTRIBUTABLE TO KEY | (30) | 71 | (41) | 81 |
AVERAGE BALANCES | ||||
Loans and leases | 980 | 1,193 | 1,007 | 1,171 |
Total assets | 41,259 | 37,935 | 40,877 | 38,148 |
Deposits | 1,337 | 2,555 | 1,602 | 2,448 |
OTHER FINANCIAL DATA | ||||
Net loan charge-offs | $ 2 | $ (1) | $ 2 | $ 0 |
Return on average allocated equity, continuing operations | (1.48%) | 3.75% | (1.06%) | 2.11% |
Return on average allocated equity | (1.39%) | 3.92% | (0.99%) | 2.25% |
Average full-time equivalent employees | employee | 5,506 | 5,842 | 5,534 | 5,910 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers (Details) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2019USD ($) | Mar. 31, 2019Segment | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Dec. 31, 2018Segment | |
Disaggregation of Revenue [Line Items] | ||||||
Number of operating segments | Segment | 2 | 2 | ||||
Total revenue from contracts with customers | $ 332 | $ 342 | $ 625 | $ 646 | ||
Noninterest income | 622 | 660 | 1,158 | 1,261 | ||
Contract assets | 0 | 0 | 0 | 0 | ||
Contract liabilities | 0 | 0 | 0 | 0 | ||
Trust And Investment Services Income [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total revenue from contracts with customers | 108 | 110 | 208 | 212 | ||
Investment Banking And Debt Placement Fees [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total revenue from contracts with customers | 65 | 68 | 110 | 115 | ||
Service Charges On Deposit Accounts [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total revenue from contracts with customers | 83 | 90 | 165 | 179 | ||
Cards And Payments Income [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total revenue from contracts with customers | 72 | 69 | 136 | 130 | ||
Other Noninterest Income [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total revenue from contracts with customers | 4 | 5 | 6 | 10 | ||
Noninterest income | 253 | 197 | 475 | 447 | ||
Operating Segments [Member] | Consumer Bank [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total revenue from contracts with customers | 195 | 198 | 373 | 384 | ||
Operating Segments [Member] | Consumer Bank [Member] | Trust And Investment Services Income [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total revenue from contracts with customers | 91 | 91 | 176 | 176 | ||
Operating Segments [Member] | Consumer Bank [Member] | Investment Banking And Debt Placement Fees [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total revenue from contracts with customers | 0 | 0 | 0 | 0 | ||
Operating Segments [Member] | Consumer Bank [Member] | Service Charges On Deposit Accounts [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total revenue from contracts with customers | 56 | 62 | 110 | 123 | ||
Operating Segments [Member] | Consumer Bank [Member] | Cards And Payments Income [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total revenue from contracts with customers | 44 | 40 | 81 | 75 | ||
Operating Segments [Member] | Consumer Bank [Member] | Other Noninterest Income [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total revenue from contracts with customers | 4 | 5 | 6 | 10 | ||
Operating Segments [Member] | Commercial Bank [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total revenue from contracts with customers | 137 | 144 | 252 | 262 | ||
Operating Segments [Member] | Commercial Bank [Member] | Trust And Investment Services Income [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total revenue from contracts with customers | 17 | 19 | 32 | 36 | ||
Operating Segments [Member] | Commercial Bank [Member] | Investment Banking And Debt Placement Fees [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total revenue from contracts with customers | 65 | 68 | 110 | 115 | ||
Operating Segments [Member] | Commercial Bank [Member] | Service Charges On Deposit Accounts [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total revenue from contracts with customers | 27 | 28 | 55 | 56 | ||
Operating Segments [Member] | Commercial Bank [Member] | Cards And Payments Income [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total revenue from contracts with customers | 28 | 29 | 55 | 55 | ||
Operating Segments [Member] | Commercial Bank [Member] | Other Noninterest Income [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total revenue from contracts with customers | 0 | 0 | 0 | 0 | ||
Other [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Noninterest income | $ 37 | $ 121 | $ 58 | $ 168 |
Subsequent Event (Details)
Subsequent Event (Details) $ in Millions | Jul. 09, 2019USD ($) |
Subsequent Event [Member] | |
Subsequent Event [Line Items] | |
Estimate of exposure | $ 90 |
Uncategorized Items - key-06301
Label | Element | Value | |
Retained Earnings [Member] | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (2,000,000) | [1] |
[1] | Includes the impact of implementing ASU 2014-09, ASU 2016-01, and ASU 2017-12. |