Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2022 | May 02, 2022 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-11302 | |
Entity Registrant Name | KeyCorp | |
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 | 932,470,869 | |
Entity Central Index Key | 0000091576 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Common Stock | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Common Shares, $1 par value | |
Trading Symbol | KEY | |
Security Exchange Name | NYSE | |
Series E Preferred Stock | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Perpetual Non-Cumulative Preferred Stock, Series E) | |
Trading Symbol | KEY PrI | |
Security Exchange Name | NYSE | |
Series F Preferred Stock | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Cumulative Preferred Stock, Series F) | |
Trading Symbol | KEY PrJ | |
Security Exchange Name | NYSE | |
Series G Preferred Stock | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Cumulative Preferred Stock, Series G) | |
Trading Symbol | KEY PrK | |
Security Exchange Name | NYSE |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | |
ASSETS | |||
Cash and due from banks | $ 684,000 | $ 913,000 | |
Short-term investments | 3,881,000 | 11,010,000 | |
Trading account assets | 848,000 | 701,000 | |
Securities available for sale | 43,681,000 | 45,364,000 | |
Held-to-maturity securities (fair value: $6,687 and $7,665) | 6,871,000 | 7,539,000 | |
Other investments | 722,000 | 639,000 | |
Loans, net of unearned income of $329 and $373 | 106,600,000 | 101,854,000 | |
Less: Allowance for loan and lease losses | (1,105,000) | (1,061,000) | |
Net loans | 105,495,000 | 100,793,000 | |
Loans held for sale | [1] | 1,170,000 | 2,729,000 |
Premises and equipment | 647,000 | 681,000 | |
Goodwill | 2,694,000 | 2,693,000 | |
Other intangible assets | 118,000 | 130,000 | |
Corporate-owned life insurance | 4,340,000 | 4,327,000 | |
Accrued income and other assets | 9,544,000 | 8,265,000 | |
Discontinued assets | 526,000 | 562,000 | |
Total assets | 181,221,000 | 186,346,000 | |
Deposits in domestic offices: | |||
NOW and money market deposit accounts | 86,829,000 | 89,207,000 | |
Savings deposits | 7,840,000 | 7,503,000 | |
Certificates of deposit ($100,000 or more) | 1,533,000 | 1,705,000 | |
Other time deposits | 2,037,000 | 2,153,000 | |
Total interest-bearing deposits | 98,239,000 | 100,568,000 | |
Noninterest-bearing deposits | 50,424,000 | 52,004,000 | |
Total deposits | 148,663,000 | 152,572,000 | |
Federal funds purchased and securities sold under repurchase agreements | 599,000 | 173,000 | |
Bank notes and other short-term borrowings | 2,222,000 | 588,000 | |
Accrued expense and other liabilities | 3,615,000 | 3,548,000 | |
Long-term debt | 10,814,000 | 12,042,000 | |
Total liabilities | 165,913,000 | 168,923,000 | |
EQUITY | |||
Preferred stock | 1,900,000 | 1,900,000 | |
Common Shares, $1 par value; authorized 2,100,000,000 shares; issued 1,256,702,081 shares | 1,257,000 | 1,257,000 | |
Capital surplus | 6,214,000 | 6,278,000 | |
Retained earnings | 14,793,000 | 14,553,000 | |
Treasury stock, at cost (324,303,897 and 327,852,311 shares) | (5,927,000) | (5,979,000) | |
Accumulated other comprehensive income (loss) | (2,929,000) | (586,000) | |
Key shareholders’ equity | 15,308,000 | 17,423,000 | |
Total liabilities and equity | $ 181,221,000 | $ 186,346,000 | |
[1] | Total loans held for sale include real estate — residential mortgage loans held for sale at fair value of $114 million at March 31, 2022, and $281 million at December 31, 2021. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Fair Value | $ 6,687,000,000 | $ 7,665,000,000 |
Financing receivable, unearned income | 329,000,000 | 373,000,000 |
Aggregate amount of certificates of deposit | $ 100,000 | $ 100,000 |
Common shares, par value (in usd per share) | $ 1 | $ 1 |
Common shares, shares authorized (in shares) | 2,100,000,000 | 2,100,000,000 |
Common shares, shares issued (in shares) | 1,256,702,081 | 1,256,702,081 |
Treasury stock, shares (in shares) | 324,303,897 | 327,852,311 |
Residential Mortgage | ||
Loans held for sale | $ 114,000,000 | $ 281,000,000 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | ||
INTEREST INCOME | |||
Loans | $ 837 | $ 889 | |
Loans held for sale | 12 | 11 | |
Securities available for sale | 173 | 130 | |
Held-to-maturity securities | 46 | 45 | |
Trading account assets | 6 | 5 | |
Short-term investments | 4 | 5 | |
Other investments | 2 | 2 | |
Total interest income | 1,080 | 1,087 | |
INTEREST EXPENSE | |||
Deposits | 14 | 21 | |
Federal funds purchased and securities sold under repurchase agreements | 0 | 0 | |
Bank notes and other short-term borrowings | 3 | 1 | |
Long-term debt | 49 | 60 | |
Total interest expense | 66 | 82 | |
NET INTEREST INCOME | 1,014 | 1,005 | |
Provision for credit losses | 83 | (93) | |
Net interest income after provision for credit losses | 931 | 1,098 | |
NONINTEREST INCOME | |||
Trust and investment services income | 136 | 133 | |
Investment banking and debt placement fees | 163 | 162 | |
Service charges on deposit accounts | 91 | 73 | |
Operating lease income and other leasing gains | 32 | 38 | |
Corporate services income | 90 | 64 | |
Cards and payments income | 80 | 105 | |
Corporate-owned life insurance income | 31 | 31 | |
Consumer mortgage income | 21 | 47 | |
Commercial mortgage servicing fees | 36 | 34 | |
Other income | [1] | (4) | 51 |
Total noninterest income | 676 | 738 | |
NONINTEREST EXPENSE | |||
Personnel | 630 | 624 | |
Net occupancy | 73 | 76 | |
Computer processing | 77 | 73 | |
Business services and professional fees | 53 | 50 | |
Equipment | 23 | 25 | |
Operating lease expense | 28 | 34 | |
Marketing | 28 | 26 | |
Other expense | 158 | 163 | |
Total noninterest expense | 1,070 | 1,071 | |
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 537 | 765 | |
Income taxes | 90 | 147 | |
INCOME (LOSS) FROM CONTINUING OPERATIONS | 447 | 618 | |
Income (loss) from discontinued operations | 1 | 4 | |
NET INCOME (LOSS) | 448 | 622 | |
Less: Net income (loss) attributable to noncontrolling interests | 0 | 0 | |
NET INCOME (LOSS) ATTRIBUTABLE TO KEY | 448 | 622 | |
Income (loss) from continuing operations attributable to Key common shareholders | 420 | 591 | |
Net income (loss) attributable to Key common shareholders | $ 421 | $ 595 | |
Per Common Share: | |||
Income (loss) from continuing operations attributable to Key common shareholders (in usd per share) | $ 0.45 | $ 0.61 | |
Income (loss) from discontinued operations, net of taxes (in usd per share) | 0 | 0 | |
Net income (loss) attributable to Key common shareholders (in usd per share) | [2] | 0.46 | 0.62 |
Per Common Share — assuming dilution: | |||
Income (loss) from continuing operations attributable to Key common shareholders (in usd per share) | 0.45 | 0.61 | |
Income (loss) from discontinued operations, net of taxes (in usd per share) | 0 | 0 | |
Net income (loss) attributable to Key common shareholders (in usd per share) | [2] | 0.45 | 0.61 |
Cash dividends declared per common share (in usd per share) | $ 0.195 | $ 0.185 | |
Weighted-average common shares outstanding (000) (in shares) | 922,941 | 964,878 | |
Effect of common share options and other stock awards (in shares) | 10,692 | 9,419 | |
Weighted-average common shares and potential common shares outstanding (in shares) | [3] | 933,634 | 974,297 |
[1] | For the three months ended March 31, 2022, and March 31, 2021, we had no net securities gains (losses). For the three months ended March 31, 2022, and March 31, 2021, 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 ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Statement [Abstract] | ||
Net securities gains (losses) | $ 0 | $ 0 |
Impairment losses related to securities | $ 0 | $ 0 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
Net income (loss) | $ 448 | $ 622 |
Other comprehensive income (loss), net of tax: | ||
Net unrealized gains (losses) on securities available for sale, net of income taxes of $562 and $(198) | (1,784) | (628) |
Net unrealized gains (losses) on derivative financial instruments, net of income taxes of $177 and $(3) | (561) | (10) |
Net pension and postretirement benefit costs, net of income taxes of $(1) and $1 | 2 | 3 |
Total other comprehensive income (loss), net of tax | (2,343) | (635) |
Comprehensive income (loss) | (1,895) | (13) |
Less: Comprehensive income attributable to noncontrolling interests | 0 | 0 |
Comprehensive income (loss) attributable to Key | $ (1,895) | $ (13) |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
Net unrealized gains (losses) on securities available for sale, tax | $ 562 | $ (198) |
Net unrealized gains (losses) on derivative financial instruments, tax | 177 | (3) |
Net pension and postretirement benefit costs, tax | $ (1) | $ 1 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Millions | Total | Series D Preferred Stock | Series E Preferred Stock | Series F Preferred Stock | Series G Preferred Stock | Preferred Stock | Common Stock | Capital Surplus | Retained Earnings | Retained EarningsSeries D Preferred Stock | Retained EarningsSeries E Preferred Stock | Retained EarningsSeries F Preferred Stock | Retained EarningsSeries G Preferred Stock | Treasury Stock, at Cost | Accumulated Other Comprehensive Income (Loss) |
Beginning Balance, Preferred Shares (in shares) at Dec. 31, 2020 | 1,396,000 | ||||||||||||||
Beginning Balance, Common Shares (in shares) at Dec. 31, 2020 | 975,773,000 | ||||||||||||||
Beginning balance at Dec. 31, 2020 | $ 17,981 | $ 1,900 | $ 1,257 | $ 6,281 | $ 12,751 | $ (4,946) | $ 738 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||
Net income (loss) | 622 | 622 | |||||||||||||
Other comprehensive income (loss) | (635) | (635) | |||||||||||||
Deferred compensation | (3) | (3) | |||||||||||||
Cash dividends declared on common shares | (180) | (180) | |||||||||||||
Cash dividends declared on preferred stock | $ (7) | $ (8) | $ (6) | $ (6) | $ (7) | $ (8) | $ (6) | $ (6) | |||||||
Open market Common Share repurchases (in shares) | (7,701,000) | ||||||||||||||
Open market Common Share repurchases | (135) | (135) | |||||||||||||
Employee equity compensation program Common Share repurchases (in shares) | (1,576,000) | ||||||||||||||
Employee equity compensation program Common Share repurchases | (31) | (31) | |||||||||||||
Common shares reissued (returned) for stock options and other employee benefit plans (in shares) | 6,091,000 | ||||||||||||||
Common shares reissued (returned) for stock options and other employee benefit plans | 42 | (65) | 107 | ||||||||||||
Other | 0 | 0 | |||||||||||||
Ending Balance, Preferred Shares (in shares) at Mar. 31, 2021 | 1,396,000 | ||||||||||||||
Ending Balance, Common Shares (in shares) at Mar. 31, 2021 | 972,587,000 | ||||||||||||||
Ending balance at Mar. 31, 2021 | 17,634 | $ 1,900 | $ 1,257 | 6,213 | 13,166 | (5,005) | 103 | ||||||||
Beginning Balance, Preferred Shares (in shares) at Dec. 31, 2021 | 1,396,000 | ||||||||||||||
Beginning Balance, Common Shares (in shares) at Dec. 31, 2021 | 928,850,000 | ||||||||||||||
Beginning balance at Dec. 31, 2021 | 17,423 | $ 1,900 | $ 1,257 | 6,278 | 14,553 | (5,979) | (586) | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||
Net income (loss) | 448 | 448 | |||||||||||||
Other comprehensive income (loss) | (2,343) | (2,343) | |||||||||||||
Deferred compensation | (7) | (7) | |||||||||||||
Cash dividends declared on common shares | (182) | (182) | |||||||||||||
Cash dividends declared on preferred stock | $ (6) | $ (8) | $ (6) | $ (6) | $ (6) | $ (8) | $ (6) | $ (6) | |||||||
Open market Common Share repurchases (in shares) | 0 | ||||||||||||||
Open market Common Share repurchases | 0 | 0 | |||||||||||||
Employee equity compensation program Common Share repurchases (in shares) | (1,707,000) | ||||||||||||||
Employee equity compensation program Common Share repurchases | (44) | (44) | |||||||||||||
Common shares reissued (returned) for stock options and other employee benefit plans (in shares) | 5,255,000 | ||||||||||||||
Common shares reissued (returned) for stock options and other employee benefit plans | 39 | (57) | 96 | ||||||||||||
Ending Balance, Preferred Shares (in shares) at Mar. 31, 2022 | 21,000 | 500,000 | 425,000 | 450,000 | 1,396,000 | ||||||||||
Ending Balance, Common Shares (in shares) at Mar. 31, 2022 | 932,398,000 | ||||||||||||||
Ending balance at Mar. 31, 2022 | $ 15,308 | $ 1,900 | $ 1,257 | $ 6,214 | $ 14,793 | $ (5,927) | $ (2,929) |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Equity (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash dividends declared on Common Shares (in usd per share) | $ 0.195 | $ 0.185 |
Series D Preferred Stock | ||
Cash dividends declared on Preferred Stock (in usd per share) | 12.50 | 12.50 |
Series E Preferred Stock | ||
Cash dividends declared on Preferred Stock (in usd per share) | 0.382813 | 0.382813 |
Series F Preferred Stock | ||
Cash dividends declared on Preferred Stock (in usd per share) | 0.353125 | 0.353125 |
Series G Preferred Stock | ||
Cash dividends declared on Preferred Stock (in usd per share) | $ 0.351563 | $ 0.351563 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
OPERATING ACTIVITIES | ||
Net income (loss) | $ 448 | $ 622 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Provision for credit losses | 83 | (93) |
Depreciation and amortization expense, net | 40 | 17 |
Accretion of acquired loans | 5 | 6 |
Increase in cash surrender value of corporate-owned life insurance | (27) | (27) |
Stock-based compensation expense | 29 | 26 |
Deferred income taxes (benefit) | 124 | 108 |
Proceeds from sales of loans held for sale | 4,317 | 3,357 |
Originations of loans held for sale, net of repayments | (2,711) | (3,937) |
Net losses (gains) on sales of loans held for sale | (48) | (55) |
Net losses (gains) on leased equipment | (1) | (3) |
Net losses (gains) on sales of fixed assets | (6) | 0 |
Net decrease (increase) in trading account assets | (147) | (76) |
Other operating activities, net | (1,225) | (150) |
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | 881 | (205) |
INVESTING ACTIVITIES | ||
Cash received (used) in acquisitions, net of cash acquired | 0 | (9) |
Net decrease (increase) in short-term investments, excluding acquisitions | 7,129 | 818 |
Purchases of securities available for sale | (2,515) | (9,854) |
Proceeds from sales of securities available for sale | 0 | 0 |
Proceeds from prepayments and maturities of securities available for sale | 1,534 | 2,653 |
Proceeds from prepayments and maturities of held-to-maturity securities | 673 | 743 |
Purchases of held-to-maturity securities | (4) | (3) |
Purchases of other investments | (111) | (9) |
Proceeds from sales of other investments | 5 | 17 |
Proceeds from prepayments and maturities of other investments | 4 | 3 |
Net decrease (increase) in loans, excluding acquisitions, sales and transfers | (4,793) | 204 |
Proceeds from sales of portfolio loans | 49 | |
Proceeds from sales of portfolio loans | (98) | |
Proceeds from corporate-owned life insurance | 14 | 17 |
Purchases of premises, equipment, and software | (18) | (12) |
Proceeds from sales of premises and equipment | 7 | 0 |
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES | 1,974 | (5,530) |
FINANCING ACTIVITIES | ||
Net increase (decrease) in deposits, excluding acquisitions | (3,909) | 6,901 |
Net increase (decrease) in short-term borrowings | 2,060 | 46 |
Net proceeds from issuance of long-term debt | 4,001 | 0 |
Payments on long-term debt | (4,989) | (1,004) |
Open market common share repurchases | 0 | (135) |
Employee equity compensation program Common Share repurchases | (44) | (31) |
Net proceeds from reissuance of Common Shares | 5 | 12 |
Cash dividends paid | (208) | (207) |
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | (3,084) | 5,582 |
NET INCREASE (DECREASE) IN CASH AND DUE FROM BANKS | (229) | (153) |
CASH AND DUE FROM BANKS AT BEGINNING OF PERIOD | 913 | 1,091 |
CASH AND DUE FROM BANKS AT END OF PERIOD | 684 | 938 |
Additional disclosures relative to cash flows: | ||
Interest paid | 58 | 80 |
Income taxes paid (refunded) | 19 | 43 |
Noncash items: | ||
Reduction of secured borrowing and related collateral | 2 | 2 |
Loans transferred to portfolio from held for sale | 0 | 8 |
Loans transferred to held for sale from portfolio | 0 | 91 |
Loans transferred to OREO | 1 | 2 |
CMBS risk retentions | 0 | (1) |
ABS risk retentions | $ 10 | $ 17 |
Basis of Presentation and Accou
Basis of Presentation and Accounting Policies | 3 Months Ended |
Mar. 31, 2022 | |
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 11 (“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. 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 2021 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 2022 Standard Date of Adoption Description Effect on Financial Statements or Reference Rate Reform (Topic 848) March 12, 2020 through December 31, 2022 London Interbank Offered Rate (LIBOR), a reference rate presumed to capture bank funding costs, is being phased out and will no longer be published. This transition to alternate rates will impact, among other things, contracts that reference LIBOR. This ASU provides relief from cumbersome accounting consequences for certain qualifying contract modifications undertaken as a result of reference rate reform. Key has established an enterprise-wide program to identify and address all LIBOR related issues. We have elected to apply certain optional expedients for contract modifications and hedging relationships to derivative instruments impacted by the market-wide discounting transition. These optional expedients remove the requirement to remeasure contract modifications or dedesignate hedging relationships due to reference rate reform. We plan to elect any optional expedients for contract modifications and hedging relationships to any other financial instruments falling under the scope of reference rate reform. ASU 2020-06, Debt—Debt January 1, 2022 The ASU simplifies the accounting for convertible debt instruments by eliminating the legacy accounting models for convertible The guidance should be applied on a modified retrospective or retrospective basis. The adoption of this accounting guidance did not have a material effect on our financial condition or results of operations. |
Earnings Per Common Share
Earnings Per Common Share | 3 Months Ended |
Mar. 31, 2022 | |
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 March 31, Dollars in millions, except per share amounts 2022 2021 EARNINGS Income (loss) from continuing operations $ 447 $ 618 Less: Net income (loss) attributable to noncontrolling interests — — Income (loss) from continuing operations attributable to Key 447 618 Less: Dividends on Preferred Stock 27 27 Income (loss) from continuing operations attributable to Key common shareholders 420 591 Income (loss) from discontinued operations, net of taxes 1 4 Net income (loss) attributable to Key common shareholders $ 421 $ 595 WEIGHTED-AVERAGE COMMON SHARES Weighted-average Common Shares outstanding (000) 922,941 964,878 Effect of Common Share options and other stock awards 10,692 9,419 Weighted-average Common Shares and potential Common Shares outstanding (000) (a) 933,634 974,297 EARNINGS PER COMMON SHARE Income (loss) from continuing operations attributable to Key common shareholders $ .45 $ .61 Income (loss) from discontinued operations, net of taxes — — Net income (loss) attributable to Key common shareholders (b) .46 .62 Income (loss) from continuing operations attributable to Key common shareholders — assuming dilution $ .45 $ .61 Income (loss) from discontinued operations, net of taxes — assuming dilution — — Net income (loss) attributable to Key common shareholders — assuming dilution (b) .45 .61 (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 | 3 Months Ended |
Mar. 31, 2022 | |
Loans Receivables [Abstract] | |
Loan Portfolio | 3. Loan Portfolio Loan Portfolio by Portfolio Segment and Financing Receivable (a) Dollars in millions March 31, 2022 December 31, 2021 Commercial and industrial (b) $ 52,815 $ 50,525 Commercial real estate: Commercial mortgage 15,124 14,244 Construction 2,065 1,996 Total commercial real estate loans 17,189 16,240 Commercial lease financing (c) 3,916 4,071 Total commercial loans 73,920 70,836 Residential — prime loans: Real estate — residential mortgage 17,181 15,756 Home equity loans 8,258 8,467 Total residential — prime loans 25,439 24,223 Consumer direct loans 6,249 5,753 Credit cards 930 972 Consumer indirect loans 62 70 Total consumer loans 32,680 31,018 Total loans (d) $ 106,600 $ 101,854 (a) Accrued interest of $193 million and $198 million at March 31, 2022, and December 31, 2021, respectively, presented in "other assets" on the Consolidated Balance Sheets is excluded from the amortized cost basis disclosed in this table. (b) Loan balances include $147 million and $139 million of commercial credit card balances at March 31, 2022, and December 31, 2021, respectively. (c) Commercial lease financing includes receivables held as collateral for a secured borrowing of $14 million and $16 million at March 31, 2022, and December 31, 2021, 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 20 (“Long-Term Debt”) beginning on page 169 of our 2021 Form 10-K. |
Asset Quality
Asset Quality | 3 Months Ended |
Mar. 31, 2022 | |
Credit Loss [Abstract] | |
Asset Quality | 4. Asset Quality ALLL We estimate 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 109 of our 2021 Form 10-K. The ALLL at March 31, 2022, represents our current estimate of lifetime 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 March 31, 2022: Dollars in millions December 31, 2021 Provision Charge-offs Recoveries March 31, 2022 Commercial and Industrial $ 445 $ 63 $ (30) $ 11 $ 489 Commercial real estate: Real estate — commercial mortgage 182 (7) (4) 1 172 Real estate — construction 29 (4) — — 25 Total commercial real estate loans 211 (11) (4) 1 197 Commercial lease financing 32 1 (2) — 31 Total commercial loans 688 53 (36) 12 717 Real estate — residential mortgage 95 12 1 — 108 Home equity loans 110 (6) (1) 1 104 Consumer direct loans 105 11 (7) 2 111 Credit cards 61 7 (7) 2 63 Consumer indirect loans 2 — (1) 1 2 Total consumer loans 373 24 (15) 6 388 Total ALLL — continuing operations 1,061 77 (a) (51) 18 1,105 Discontinued operations 28 1 (2) — 27 Total ALLL — including discontinued operations $ 1,089 $ 78 $ (53) $ 18 $ 1,132 (a) Excludes a provision for losses on lending-related commitments of $6 million. Three months ended March 31, 2021: Dollars in millions December 31, 2020 Provision Charge-offs Recoveries March 31, 2021 Commercial and Industrial $ 678 $ (17) $ (73) $ 8 $ 596 Commercial real estate: Real estate — commercial mortgage 327 (37) (35) 1 256 Real estate — construction 47 (2) — — 45 Total commercial real estate loans 374 (39) (35) 1 301 Commercial lease financing 47 (4) (4) 1 40 Total commercial loans 1,099 (60) (112) 10 937 Real estate — residential mortgage 102 (3) — 1 100 Home equity loans 171 (13) (2) 1 157 Consumer direct loans 128 4 (8) 2 126 Credit cards 87 (3) (6) 2 80 Consumer indirect loans 39 1 (7) 5 38 Total consumer loans 527 (14) (23) 11 501 Total ALLL — continuing operations 1,626 (74) (a) (135) 21 1,438 Discontinued operations 36 (3) (1) 1 33 Total ALLL — including discontinued operations $ 1,662 $ (77) $ (136) $ 22 $ 1,471 (a) Excludes a credit for losses on lending-related commitments of $19 million. As described in Note 1 ("Summary of Significant Accounting Policies"), under the heading “Allowance for Loan and Lease Losses” beginning on page 109 of our 2021 Form 10-K, we estimate the ALLL using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. In our estimation of expected credit losses, we use a two year reasonable and supportable period across all products. Following this two year period in which supportable forecasts can be generated, for all modeled loan portfolios, we revert expected credit losses to a level that is consistent with our historical information by reverting the macroeconomic variables (model inputs) to their long run average. We revert to historical loss rates for less complex estimation methods for smaller portfolios. A 20 year fixed length look back period is used to calculate the long run average of the macroeconomic variables. A four quarter reversion period is used where the macroeconomic variables linearly revert to their long run average following the two year reasonable and supportable period. We develop our reasonable and supportable forecasts using relevant data including, but not limited to, changes in economic output, unemployment rates, property values, and other factors associated with the credit losses on financial assets. Some macroeconomic variables apply to all portfolio segments, while others are more portfolio specific. The following table discloses key macroeconomic variables for each loan portfolio. Segment Portfolio Key Macroeconomic Variables (a) Commercial Commercial and industrial BBB corporate bond rate (spread), GDP, industrial production, and unemployment rate Commercial real estate BBB corporate bond rate (spread), property and real estate price indices, and unemployment rate Commercial lease financing BBB corporate bond rate (spread), GDP, and unemployment rate Consumer Real estate — residential mortgage GDP, home price index, unemployment rate, and 30 year mortgage rate Home equity Home price index, unemployment rate, and 30 year mortgage rate Consumer direct Unemployment rate and U.S. household income Consumer indirect New vehicle sales, used vehicle prices, and unemployment rate Credit cards Unemployment rate and U.S. household income Discontinued operations Unemployment rate (a) Variables include all transformations and interactions with other risk drivers. Additionally, variables may have varying impacts at different points in the economic cycle. In addition to macroeconomic drivers, portfolio attributes such as remaining term, outstanding balance, risk ratings, utilization, FICO, LTV, and delinquency also drive ALLL changes. Our ALLL models were designed to capture the correlation between economic and portfolio changes. As such, evaluating shifts in individual portfolio attributes and macroeconomic variables in isolation may not be indicative of past or future performance. Economic Outlook As of March 31, 2022, economic growth is expected to be healthy, but the Russian-Ukrainian conflict has provided additional stress on global supply chains, adding uncertainty to the outlook and stress to existing inflationary pressures. Inflation in the United States is at high levels; monetary policy is projected to become more restrictive, which is expected to reduce inflation throughout the remainder of 2022. Employment levels continue to be very strong, with unemployment rates expected to remain at relatively low levels. We utilized the Moody’s February 2022 Consensus forecast as our baseline forecast to estimate our expected credit losses as of March 31, 2022. We determined such forecast to be a reasonable view of the outlook for the economy given all available information at quarter end. The baseline scenario continues to reflect moderate economic growth over the next two years in markets in which we operate. U.S. GDP continues to grow, albeit at a slower pace, at a 0.5% annualized rate in the first quarter of 2022 and at an annual rate of approximately 4% and 3% for 2022 and 2023, respectively. The national unemployment rate forecast is 3.9% in the first quarter of 2022, and is expected to decline to 3.6% by the fourth quarter of 2022 and continue at that level through the fourth quarter of 2023. We recognize the baseline forecast may not fully capture the increased economic uncertainty emerging as of quarter-end, specifically due to the Russia/Ukraine conflict and monetary policy pressures. These considerations were addressed through qualitative adjustments. As a result of the current economic uncertainty, our future loss estimates may vary considerably from our March 31, 2022, assumptions. Commercial Loan Portfolio The ALLL from continuing operations for the commercial segment increased by $29 million, or 4.2%, from December 31, 2021. The overall increase in the allowance is driven by loan growth, and economic uncertainties ( geopolitical and monetary policy), offset by reductions in COVID-related reserves. The primary changes to the outlook are due to Russia/Ukraine crisis, as well as the associated risk around the global supply chain and inflation. Improvements in real estate price indices led to a reduction in reserve for our commercial real estate portfolio. As of March 31, 2022, there was an immaterial ALLL associated with $886 million of outstanding PPP loans. This ALLL relates to a small number of loans denied by the SBA for forgiveness. Consumer Loan Portfolio The ALLL from continuing operations for the consumer segment increased by $15 million, or 4.0%, from December 31, 2021. The overall increase in the allowance is driven by higher uncertainty in the economic outlook , in addition to loan growth. The most meaningful changes in the economic outlook contributing to the increase in reserves are the ongoing conflict in Ukraine and US inflationary/monetary policy pressures. The potential incremental risk associated with these economic factors is largely considered through qualitative reserve adjustments. As it relates to the changes in the ALLL due to portfolio factors, shifts are largely driven by targeted growth in the consumer real estate and Laurel Road student lending portfolios. Credit Risk Profile 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. The internal risk grades assigned to loans follow our definitions of Pass and Criticized, which are consistent with published definitions of regulatory risk classifications. Loans with a pass rating represent those loans not classified on our rating scale for problem credits, as minimal credit risk has been identified. Criticized loans are those loans that either have a potential weakness deserving management's close attention or have a well-defined weakness that may put full collection of contractual cash flows at risk. 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 tables below at the dates indicated. Most extensions of credit are subject to loan grading or scoring. Loan grades are assigned at the time of origination, verified by credit risk management, and periodically re-evaluated thereafter. This risk rating methodology blends our judgment with quantitative modeling. Commercial loans generally are assigned two internal risk ratings. The first rating reflects the probability that the borrower will default on an obligation; the second rating reflects expected recovery rates on the credit facility. Default probability is determined based on, among other factors, the financial strength of the borrower, an assessment of the borrower’s management, the borrower’s competitive position within its industry sector, and our view of industry risk in the context of the general economic outlook. Types of exposure, transaction structure, and collateral, including credit risk mitigants, affect the expected recovery assessment. Commercial Credit Exposure Credit Risk Profile by Creditworthiness Category and Vintage (a) As of March 31, 2022 Term Loans Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Loans Amortized Cost Basis Amortized Cost Basis by Origination Year and Internal Risk Rating Dollars in millions 2022 2021 2020 2019 2018 Prior Total Commercial and Industrial Risk Rating: Pass $ 1,952 $ 11,488 $ 4,372 $ 3,497 $ 2,515 $ 4,511 $ 22,623 $ 117 $ 51,075 Criticized (Accruing) — 34 111 116 173 294 803 23 1,554 Criticized (Nonaccruing) — 1 3 15 9 31 126 1 186 Total commercial and industrial 1,952 11,523 4,486 3,628 2,697 4,836 23,552 141 52,815 Real estate — commercial mortgage Risk Rating: Pass 1,474 4,805 1,153 2,045 994 3,185 850 59 14,565 Criticized (Accruing) — 18 20 87 71 290 33 — 519 Criticized (Nonaccruing) — — 1 1 5 29 3 1 40 Total real estate — commercial mortgage 1,474 4,823 1,174 2,133 1,070 3,504 886 60 15,124 Real estate — construction Risk Rating: Pass 144 472 602 476 209 112 1 3 2,019 Criticized (Accruing) — — 4 7 31 4 — — 46 Criticized (Nonaccruing) — — — — — — — — — Total real estate — construction 144 472 606 483 240 116 1 3 2,065 Commercial lease financing Risk Rating: Pass 159 985 693 619 262 1,131 — — 3,849 Criticized (Accruing) — — 11 23 15 15 — — 64 Criticized (Nonaccruing) — — — 1 1 1 — — 3 Total commercial lease financing 159 985 704 643 278 1,147 — 3,916 Total commercial loans $ 3,729 $ 17,803 $ 6,970 $ 6,887 $ 4,285 $ 9,603 $ 24,439 $ 204 $ 73,920 As of December 31, 2021 Term Loans Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Loans Amortized Cost Basis Amortized Cost Basis by Origination Year and Internal Risk Rating Dollars in millions 2021 2020 2019 2018 2017 Prior Total Commercial and Industrial Risk Rating: Pass $ 11,675 $ 4,941 $ 4,040 $ 2,771 $ 1,777 $ 3,108 $ 20,406 $ 72 $ 48,790 Criticized (Accruing) 64 71 115 175 200 121 784 14 1,544 Criticized (Nonaccruing) 1 1 21 10 19 15 122 2 191 Total commercial and industrial 11,740 5,013 4,176 2,956 1,996 3,244 21,312 88 50,525 Real estate — commercial mortgage Risk Rating: Pass 4,923 1,197 2,137 1,168 612 2,787 803 53 13,680 Criticized (Accruing) 15 22 70 62 109 206 35 1 520 Criticized (Nonaccruing) — 1 1 5 — 31 6 — 44 Total real estate — commercial mortgage 4,938 1,220 2,208 1,235 721 3,024 844 54 14,244 Real estate — construction Risk Rating: Pass 495 565 530 223 92 32 2 — 1,939 Criticized (Accruing) — 4 5 43 4 — 1 — 57 Criticized (Nonaccruing) — — — — — — — — — Total real estate — construction 495 569 535 266 96 32 3 — 1,996 Commercial lease financing Risk Rating: Pass 1,039 748 675 301 309 927 — — 3,999 Criticized (Accruing) — 6 29 13 13 7 — — 68 Criticized (Nonaccruing) — — 1 1 1 1 — — 4 Total commercial lease financing 1,039 754 705 315 323 935 — — 4,071 Total commercial loans $ 18,212 $ 7,556 $ 7,624 $ 4,772 $ 3,136 $ 7,235 $ 22,159 $ 142 $ 70,836 (a) Accrued intere st of $117 million a nd $113 million as of March 31, 2022, and December 31, 2021, respectively, presented in Other Assets on the Consolidated Balance Sheets, was excluded from the amortized cost basis disclosed in these tables. Consumer Credit Exposure Credit Risk Profile by FICO Score and Vintage (a) As of March 31, 2022 Term Loans Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Loans Amortized Cost Basis Amortized Cost Basis by Origination Year and FICO Score Dollars in millions 2022 2021 2020 2019 2018 Prior Total Real estate — residential mortgage FICO Score: 750 and above $ 1,351 $ 8,320 $ 2,802 $ 705 $ 74 $ 1,135 $ — $ — $ 14,387 660 to 749 437 1,235 299 140 32 302 — — 2,445 Less than 660 12 35 16 18 16 149 — — 246 No Score 50 19 — 1 1 31 1 — 103 Total real estate — residential mortgage 1,850 9,609 3,117 864 123 1,617 1 — 17,181 Home equity loans FICO Score: 750 and above 96 1,073 797 233 87 731 2,209 404 5,630 660 to 749 40 356 239 97 39 221 940 135 2,067 Less than 660 3 29 26 20 12 100 320 44 554 No Score — — 2 — — 2 3 — 7 Total home equity loans 139 1,458 1,064 350 138 1,054 3,472 583 8,258 Consumer direct loans FICO Score: 750 and above 741 1,706 1,004 456 57 131 105 — 4,200 660 to 749 220 536 262 151 39 50 203 — 1,461 Less than 660 7 53 32 25 9 13 55 — 194 No Score 22 57 34 26 14 30 211 — 394 Total consumer direct loans 990 2,352 1,332 658 119 224 574 — 6,249 Credit cards FICO Score: 750 and above — — — — — — 467 — 467 660 to 749 — — — — — — 376 — 376 Less than 660 — — — — — — 86 — 86 No Score — — — — — — 1 — 1 Total credit cards — — — — — — 930 — 930 Consumer indirect loans FICO Score: 750 and above — 3 — — — 28 — — 31 660 to 749 — — — — — 21 — — 21 Less than 660 — — — — — 10 — — 10 No Score — — — — — — — — — Total consumer indirect loans — 3 — — — 59 — — 62 Total consumer loans $ 2,979 $ 13,422 $ 5,513 $ 1,872 $ 380 $ 2,954 $ 4,977 $ 583 $ 32,680 As of December 31, 2021 Term Loans Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Loans Amortized Cost Basis Amortized Cost Basis by Origination Year and FICO Score Dollars in millions 2021 2020 2019 2018 2017 Prior Total Real estate — residential mortgage FICO Score: 750 and above $ 7,906 $ 2,909 $ 777 $ 84 $ 126 $ 1,096 $ — $ — $ 12,898 660 to 749 1,686 351 169 39 25 308 — — 2,578 Less than 660 26 14 19 16 9 142 — — 226 No Score 18 — 1 1 3 30 1 — 54 Total real estate — residential mortgage 9,636 3,274 966 140 163 1,576 1 — 15,756 Home equity loans FICO Score: 750 and above 1,051 830 251 96 128 666 2,244 423 5,689 660 to 749 394 263 111 44 40 204 1,004 143 2,203 Less than 660 27 24 20 13 13 92 333 46 568 No Score — 2 — — — 2 3 — 7 Total home equity loans 1,472 1,119 382 153 181 964 3,584 612 8,467 Consumer direct loans FICO Score: 750 and above 1,799 1,129 517 65 17 129 109 — 3,765 660 to 749 612 295 174 46 10 45 212 — 1,394 Less than 660 45 33 27 11 3 12 60 — 191 No Score 68 40 29 17 10 21 218 — 403 Total consumer direct loans 2,524 1,497 747 139 40 207 599 — 5,753 Credit cards FICO Score: 750 and above — — — — — — 500 — 500 660 to 749 — — — — — — 387 — 387 Less than 660 — — — — — — 84 — 84 No Score — — — — — — 1 — 1 Total credit cards — — — — — — 972 — 972 Consumer indirect loans FICO Score: 750 and above 5 — — — — 30 — — 35 660 to 749 — — — — — 26 — — 26 Less than 660 — — — — — 9 — — 9 No Score — — — — — — — — — Total consumer indirect loans 5 — — — — 65 — — 70 Total consumer loans $ 13,637 $ 5,890 $ 2,095 $ 432 $ 384 $ 2,812 $ 5,156 $ 612 $ 31,018 (a) Accrued intere st of $75 million and $85 million as of March 31, 2022 and December 31, 2021, respectively, presented in Other Assets on the Consolidated Balance Sheets, was excluded from the amortized cost basis disclosed in this table. 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 108 of our 2021 Form 10-K. The following aging analysis of past due and current loans as of March 31, 2022, and December 31, 2021, provides further information regarding Key’s credit exposure. Aging Analysis of Loan Portfolio (a) March 31, 2022 Current 30-59 Days Past Due (b) 60-89 Days Past Due (b) 90 and Greater Days Past Due (b) Non-performing Total Past Total Loans (c) Dollars in millions LOAN TYPE Commercial and industrial $ 52,537 $ 23 $ 31 $ 38 $ 186 $ 278 $ 52,815 Commercial real estate: Commercial mortgage 15,072 4 5 3 40 52 15,124 Construction 2,064 1 — — — 1 2,065 Total commercial real estate loans 17,136 5 5 3 40 53 17,189 Commercial lease financing 3,908 4 1 — 3 8 3,916 Total commercial loans $ 73,581 $ 32 $ 37 $ 41 $ 229 $ 339 $ 73,920 Real estate — residential mortgage $ 17,098 $ 7 $ 2 $ 1 $ 73 $ 83 $ 17,181 Home equity loans 8,102 18 6 3 129 156 8,258 Consumer direct loans 6,229 8 4 4 4 20 6,249 Credit cards 914 4 3 6 3 16 930 Consumer indirect loans 60 1 — — 1 2 62 Total consumer loans $ 32,403 $ 38 $ 15 $ 14 $ 210 $ 277 $ 32,680 Total loans $ 105,984 $ 70 $ 52 $ 55 $ 439 $ 616 $ 106,600 (a) Amounts in table represent amortized cost and exclude loans held for sale. (b) Accrued inter est of $193 million p resented in Other Assets on the Consolidated Balance Sheets is excluded from the amortized cost basis disclosed in this table. (c) Net of unearned income, net of deferred fees and costs, and unamortized discounts and premiums. December 31, 2021 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 Total Loans (c) Dollars in millions LOAN TYPE Commercial and industrial $ 50,226 $ 19 $ 49 $ 40 $ 191 $ 299 $ 50,525 Commercial real estate: Commercial mortgage 14,174 10 9 7 44 70 14,244 Construction 1,978 — 17 1 — 18 1,996 Total commercial real estate loans 16,152 10 26 8 44 88 16,240 Commercial lease financing 4,061 6 — — 4 10 4,071 Total commercial loans $ 70,439 $ 35 $ 75 $ 48 $ 239 $ 397 $ 70,836 Real estate — residential mortgage $ 15,669 $ 7 $ 3 $ 5 $ 72 $ 87 $ 15,756 Home equity loans 8,299 21 6 6 135 168 8,467 Consumer direct loans 5,736 8 2 3 4 17 5,753 Credit cards 956 4 3 6 3 16 972 Consumer indirect loans 68 1 — — 1 2 70 Total consumer loans $ 30,728 $ 41 $ 14 $ 20 $ 215 $ 290 $ 31,018 Total loans $ 101,167 $ 76 $ 89 $ 68 $ 454 $ 687 $ 101,854 (a) Amounts in table represent amortized cost and exclude loans held for sale. (b) Accrued interest of $198 million presented in Other Assets on the Consolidated Balance Sheets is excluded from the amortized cost basis disclosed in this table. (c) Net of unearned income, net of deferred fees and costs, and unamortized discounts and premiums. At March 31, 2022, the approximate carrying amount of our commercial nonperforming loans outstanding represented 62% of their original contractual amount owed, total nonperforming loans outstanding represented 73% of their original contractual amount owed, and nonperforming assets in total were carried at 81% of their original contractual amount owed. Nonperforming loans reduced expected interest income by $5 million for the three months ended March 31, 2022, and $7 million for the three months ended March 31, 2021. The amortized cost basis of nonperforming loans on nonaccrual status for which there is no related allowance for credit losses was $301 million at March 31, 2022. Collateral-dependent Financial Assets We classify financial assets as collateral-dependent when our borrower is experiencing financial difficulty, and we expect repayment to be provided substantially through the operation or sale of the collateral. Our commercial loans have collateral that includes cash, accounts receivable, inventory, commercial machinery, commercial properties, commercial real estate construction projects, enterprise value, and stock or ownership interests in the borrowing entity. When appropriate we also consider the enterprise value of the borrower as a repayment source for collateral-dependent loans. Our consumer loans have collateral that includes residential real estate, automobiles, boats, and RVs. There were no significant changes in the extent to which collateral secures our collateral-dependent financial assets during the three months ended March 31, 2022 . 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. Our loan modifications are handled on a case-by-case basis and are negotiated to achieve mutually agreeable terms that maximize loan collectability and meet the borrower’s financial needs. Commitments outstanding to lend additional funds to borrowers whose loan terms have been modified in TDRs w ere $1 million a nd $15 million at March 31, 2022, and December 31, 2021, respectively. The consumer TDR other concession category in the table below primarily includes those borrowers’ debts that are discharged through Chapter 7 bankruptcy and have not been formally re-affirmed. At March 31, 2022, and December 31, 2021, the recorded investment of consumer residential mortgage loans in the process of foreclosure was approximately $126 million and $104 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 March 31, Dollars in millions 2022 2021 Commercial loans: Extension of Maturity Date $ — $ 41 Payment or Covenant Modification/Deferment 1 10 Bankruptcy Plan Modification — — Increase in new commitment or new money — — Total $ 1 $ 51 Consumer loans: Interest rate reduction $ 1 $ 2 Other 9 4 Total $ 10 $ 6 Total TDRs $ 11 $ 57 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 March 31, Dollars in millions 2022 2021 Balance at beginning of the period $ 220 $ 363 Additions 11 59 Payments (12) (21) Charge-offs — (25) Balance at end of period $ 219 $ 376 A further breakdown of TDRs included in nonperforming loans by loan category for the periods indicated are as follows: March 31, 2022 December 31, 2021 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 37 $ 25 $ 14 36 $ 30 $ 14 Commercial real estate: Commercial mortgage 4 50 23 3 50 25 Total commercial real estate loans 4 50 23 3 50 25 Total commercial loans 41 75 37 39 80 39 Real estate — residential mortgage 223 27 25 220 26 24 Home equity loans 514 35 31 531 36 31 Consumer direct loans 208 2 2 207 3 2 Credit cards 332 2 2 360 2 2 Consumer indirect loans 22 2 1 23 1 1 Total consumer loans 1,299 68 61 1,341 68 60 Total nonperforming TDRs 1,340 143 98 1,380 148 99 Prior-year accruing: (a) Commercial and industrial 13 — — 11 — — Commercial real estate Commercial mortgage 1 — — 1 — — Total commercial real estate loans 1 — — 1 — — Total commercial loans 14 — — 12 — — Real estate — residential mortgage 463 41 35 455 39 33 Home equity loans 1,615 97 75 1,628 97 75 Consumer direct loans 226 4 3 236 5 3 Credit cards 599 4 2 579 4 2 Consumer indirect loans 128 14 7 139 15 8 Total consumer loans 3,031 160 122 3,037 160 121 Total prior-year accruing TDRs 3,045 160 121 3,049 160 121 Total TDRs 4,385 $ 303 $ 219 4,429 $ 308 $ 220 (a) All TDRs that were restructured prior to January 1, 2022, and January 1, 2021, 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 March 31, 2022, there were four commercial loan TDRs and 38 consumer loan TDRs with a combined recorded investment of $8 million that experienced payment defaults after modifications resulting in TDR status during 2021. During the three months ended March 31, 2021, there were two commercial loan TDRs and 36 consumer loan TDRs with a combined recorded investment of $1 million that experienced payment defaults after modifications resulting in TDR status during 2020. Liability for Credit Losses on Off Balance Sheet Exposures The liability for credit losses inherent in unfunded lending-related commitments, such as letters of credit and unfunded loan commitments, and certain financial guarantees is included in “accrued expense and other liabilities” on the balance sheet. Changes in the liability for credit losses on off balance sheet exposures are summarized as follows: Three months ended March 31, Dollars in millions 2022 2021 Balance at beginning of period $ 160 $ 197 Provision (credit) for losses on off balance sheet exposures 6 (19) Balance at end of period $ 166 $ 178 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2022 | |
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 2021 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. For more information on the valuation techniques used to measure classes of assets and liabilities reported at fair value on a recurring basis as well as the classification of each in the valuation hierarchy, refer to Note 6 (“Fair Value Measurements” in our 2021 Form 10-K. The following tables present these assets and liabilities at March 31, 2022, and December 31, 2021. March 31, 2022 December 31, 2021 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Dollars in millions ASSETS MEASURED ON A RECURRING BASIS Trading account assets: U.S. Treasury, agencies and corporations $ — $ 627 $ — $ 627 $ — $ 530 $ — $ 530 States and political subdivisions — 76 — 76 — 96 — 96 Other mortgage-backed securities — 127 — 127 — 44 — 44 Other securities — 14 — 14 — 13 — 13 Total trading account securities — 844 — 844 — 683 — 683 Commercial loans — 4 — 4 — 18 — 18 Total trading account assets — 848 — 848 — 701 — 701 Securities available for sale: U.S. Treasury, agencies and corporations — 9,638 — 9,638 — 9,472 — 9,472 States and political subdivisions — — — — — — — — Agency residential collateralized mortgage obligations — 20,639 — 20,639 — 21,119 — 21,119 Agency residential mortgage-backed securities — 4,744 — 4,744 — 5,122 — 5,122 Agency commercial mortgage-backed securities — 8,659 — 8,659 — 9,651 — 9,651 Other securities — 1 — 1 — — — — Total securities available for sale — 43,681 — 43,681 — 45,364 — 45,364 Other investments: Principal investments: Direct — — 1 1 — — 1 1 Indirect (measured at NAV) (a) — — — 44 — — — 45 Total principal investments — — 1 45 — — 1 46 Equity investments: Direct 6 — 7 13 24 — 9 33 Direct (measured at NAV) (a) — — — 28 — — — 21 Indirect (measured at NAV) (a) — — — 4 — — — 5 Total equity investments 6 — 7 45 24 — 9 59 Total other investments 6 — 8 90 24 — 10 105 Loans, net of unearned income (residential) — — 11 11 — — 11 11 Loans held for sale (residential) — 114 — 114 — 281 — 281 Derivative assets: Interest rate — 288 43 331 — 774 33 807 Foreign exchange 92 10 — 102 $ 71 10 — 81 Commodity — 2,613 — 2,613 — 1,330 — 1,330 Credit — — 1 1 — — 1 1 Other — 21 1 22 — 22 5 27 Derivative assets 92 2,932 45 3,069 71 2,136 39 2,246 Netting adjustments (b) — — — (330) — — — (284) Total derivative assets 92 2,932 45 2,739 71 2,136 39 1,962 Total assets on a recurring basis at fair value $ 98 $ 47,575 $ 64 $ 47,483 $ 95 $ 48,482 $ 60 $ 48,424 LIABILITIES MEASURED ON A RECURRING BASIS Bank notes and other short-term borrowings: Short positions $ 69 $ 653 $ — $ 722 $ 75 $ 513 $ — $ 588 Derivative liabilities: Interest rate — 562 — 562 — 253 — 253 Foreign exchange 85 11 — 96 66 10 — 76 Commodity — 2,613 — 2,613 — 1,335 — 1,335 Credit — — 6 6 — 5 7 12 Other — 7 3 10 — 11 — 11 Derivative liabilities 85 3,193 9 3,287 66 1,614 7 1,687 Netting adjustments (b) — — — (2,689) — — — (1,526) Total derivative liabilities 85 3,193 9 598 66 1,614 7 161 Total liabilities on a recurring basis at fair value $ 154 $ 3,846 $ 9 $ 1,320 $ 141 $ 2,127 $ 7 $ 749 (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. The following table presents the fair value of our direct and indirect principal investments and related unfunded commitments at March 31, 2022, as well as financial support provided for the three months ended March 31, 2022, and March 31, 2021. Financial support provided Three months ended March 31, March 31, 2022 2022 2021 Dollars in millions Fair Value Unfunded Commitments Funded Commitments Funded Other Funded Commitments Funded Other INVESTMENT TYPE Direct investments $ 1 $ — $ — $ — $ — $ — Indirect investments (measured at NAV) (a) 44 11 — — 2 — Total $ 45 $ 11 $ — $ — $ 2 $ — (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 March 31, 2022, 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. 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 months ended March 31, 2022, and March 31, 2021. Dollars 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 Three months ended March 31, 2022 Other investments Principal investments Direct (a) $ 1 $ — $ — $ — $ — $ — $ — $ — $ — $ 1 $ — Equity investments Direct (a) 9 — (2) — — — — — — 7 (2) Loans, net of unearned income (residential) 11 — — — — — — — — 11 — Derivative instruments (b) Interest rate 33 — (11) (c) 1 — — — 29 (d) (9) (d) 43 — Credit (6) — 1 (c) — — — — — — (5) — Other (e) 5 — — (c) — — — (7) — — (2) — Dollars 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 Three months ended March 31, 2021 Securities available for sale Other securities $ 13 $ 9 $ — $ — $ — $ — $ — $ — $ — $ 22 $ — Other investments Principal investments Direct (a) 1 — — — — — — — — 1 — Equity investments Direct (a) 13 — (1) — — — — — (3) 9 (1) Loans held for sale (residential) — — — — (1) — 1 — — — — Loans, net of unearned income (residential) 11 — — — (1) — 1 — — 11 — Derivative instruments (b) Interest rate 56 — (22) (c) — (4) — — 7 (d) (7) (d) 30 — Credit (10) — 5 (c) — — — — (5) — Other (e) 32 — (4) (c) — — — 22 — — 6 — (a) Realized and unrealized gains and losses on principal investments and other equity 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 instruments 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. For more information on the valuation techniques used to measure classes of assets and liabilities measured at fair value on a nonrecurring basis, refer to Note 6 (“Fair Value Measurements”) in our 2021 Form 10-K. There were no liabilities measured at fair value on a nonrecurring basis at March 31, 2022, and December 31, 2021. The following table presents our assets measured at fair value on a nonrecurring basis at March 31, 2022, and December 31, 2021: March 31, 2022 December 31, 2021 Dollars in millions Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total ASSETS MEASURED ON A NONRECURRING BASIS Collateral-dependent loans $ — $ — $ 37 $ 37 $ — $ — $ 28 $ 28 Loans held for sale — — 51 51 — — — — Accrued income and other assets — — 12 12 — — 80 80 Total assets on a nonrecurring basis at fair value $ — $ — $ 100 $ 100 $ — $ — $ 108 $ 108 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 March 31, 2022, and December 31, 2021, the carrying amount of equity investments under this method was $184 million and $173 million, respectively. No impairment was recorded for the three months ended March 31, 2022. Quantitative Information about Level 3 Fair Value Measurements The range and weighted-average of the significant unobservable inputs used to fair value our material Level 3 recurring and nonrecurring assets at March 31, 2022, and December 31, 2021, along with the valuation techniques used, are shown in the following table: Level 3 Asset (Liability) Valuation Technique Significant Unobservable Input Range (Weighted-Average) (a), (b) Dollars in millions March 31, 2022 December 31, 2021 March 31, 2022 December 31, 2021 Recurring Loans, net of unearned income (residential) $ 11 $ 11 Market comparable pricing Comparability factor 64.50 - 97.88% (92.33%) 64.50-97.30% (94.24%) Derivative instruments: Interest rate 43 33 Discounted cash flows Probability of default .02 - 100% (11.70%) .02 - 100% (8.88%) Loss given default 0 - 1 (.500) 0 - 1 (.500) Insignificant level 3 assets, net of liabilities (c) 1 9 Nonrecurring Collateral-dependent loans 37 28 Fair value of collateral Discount rate 0 - 65.00% (19.00%) 0 - 10.00% (8.00%) Loans held for sale 51 — Market comparable pricing Comparability factor N/M N/A Accrued income and other assets: OREO and other Level 3 assets (d) 11 13 Appraised value Appraised value N/M N/M (a) The weighted average of significant unobservable inputs is calculated using a weighting relative to fair value. (b) For significant unobservable inputs with no range, a single figure is reported to denote the single quantitative factor used. (c) Represents the aggregate amount of Level 3 assets and liabilities measured at fair value on a recurring basis that are individually and in the aggregate insignificant. The amount includes certain equity investments and certain financial derivative assets and liabilities. (d) Excludes $1 million and $67 million pertaining to servicing assets at March 31, 2022, and December 31, 2021, respectively. Refer to Note 8 (“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 March 31, 2022, and December 31, 2021, are shown in the following tables. Assets and liabilities are further arranged by measurement category. March 31, 2022 Fair Value Dollars 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) $ 848 $ — $ 848 $ — $ — $ — $ 848 Other investments (b) 722 6 — 639 77 — 722 Loans, net of unearned income (residential) (d) 11 — — 11 — — 11 Loans held for sale (residential) (b) 114 — 114 — — — 114 Derivative assets - trading (b) 2,640 92 2,937 44 — (433) (f) 2,640 Fair value - OCI Securities available for sale (b) 43,681 — 43,681 — — — 43,681 Derivative assets - hedging (b)(g) 99 — (4) — — 103 (f) 99 Amortized cost Held-to-maturity securities (c) 6,871 — 6,687 — — — 6,687 Loans, net of unearned income (d) 105,484 — — 104,242 — — 104,242 Loans held for sale (b) 1,056 — — 1,056 — — 1,056 Other Cash and other short-term investments (a) 4,565 4,565 — — — — 4,565 LIABILITIES (by measurement category) Fair value - net income Derivative liabilities - trading (b) $ 609 $ 85 $ 3,242 $ 9 $ — $ (2,727) (f) $ 609 Fair value - OCI Derivative liabilities - hedging (b)(g) (11) — (49) — — 38 (f) (11) Amortized cost Time deposits (e) 3,570 — 3,576 — — — 3,576 Short-term borrowings (a) 2,821 69 2,752 — — — 2,821 Long-term debt (e) 10,814 10,146 685 — — — 10,831 Other Deposits with no stated maturity (a) 145,093 — 145,093 — — — 145,093 December 31, 2021 Fair Value Dollars 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) $ 701 $ — $ 701 $ — $ — $ — $ 701 Other investments (b) 639 24 — 543 72 — 639 Loans, net of unearned income (residential) (d) 11 — — 11 — — 11 Loans held for sale (residential) (b) 281 — 281 — — — 281 Derivative assets - trading (b) 1,887 $ 71 2,096 40 — (320) (f) 1,887 Fair value - OCI Securities available for sale (b) 45,364 — 45,364 — — — 45,364 Derivative assets - hedging (b)(g) 75 — 39 — — 36 (f) 75 Amortized cost Held-to-maturity securities (c) 7,539 — 7,665 — — — 7,665 Loans, net of unearned income (d) 100,782 — — 100,428 — — 100,428 Loans held for sale (b) 2,448 — — 2,448 — — 2,448 Other Short-term investments - U.S. Treasury Bills (b) — — — — — — — Cash and other short-term investments (a) 11,923 11,923 — — — — 11,923 LIABILITIES (by measurement category) Fair value - net income Derivative liabilities - trading (b) $ 157 $ 66 $ 1,610 $ 7 $ — $ (1,526) (f) $ 157 Fair value - OCI Derivative liabilities - hedging (b)(g) 4 — 4 — — — (f) 4 Amortized cost Time deposits (e) 3,858 — 3,866 — — — 3,866 Short-term borrowings (a) 761 75 686 — — — 761 Long-term debt (e) 12,042 11,813 705 — — — 12,518 Other Deposits with no stated maturity (a) 148,714 — 148,714 — — — 148,714 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” within our 2021 Form 10-K Note 6 (“Fair Value Measurements”). 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 classified as Level 2 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 (“Summary of Significant Accounting Policies”) under the heading “Derivatives and Hedging” beginning on page 113 of our 2021 Form 10-K. Discontinued assets — education lending business . Our discontinued assets include government-guaranteed and private education loans originated through our education lending business that was discontinued in September 2009. This portfolio consists of loans recorded at carrying value with appropriate valuation reserves, and loans in portfolio recorded at fair value. All of these loans were excluded from the table above as follows: • Loans at carrying value, net of allowance, of $531 million ($457 million at fair value) at March 31, 2022, and $567 million ($486 million at fair value) at December 31, 2021; • Portfolio loans at fair value of $2 million at March 31, 2022, and $2 million at December 31, 2021. These loans and securities are classified as Level 3 because we rely on unobservable inputs when determining fair value since observable market data is not available. |
Securities
Securities | 3 Months Ended |
Mar. 31, 2022 | |
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. March 31, 2022 December 31, 2021 Dollars in millions Amortized Cost (a) Gross Unrealized Gains Gross Unrealized Losses Fair Value Amortized Cost (b) Gross Unrealized Gains Gross Unrealized Losses Fair Value SECURITIES AVAILABLE FOR SALE U.S. Treasury, agencies, and corporations $ 10,054 $ — $ 416 $ 9,638 $ 9,573 $ — $ 101 $ 9,472 Agency residential collateralized mortgage obligations 22,255 3 1,619 20,639 21,430 99 410 21,119 Agency residential mortgage-backed securities 5,075 9 340 4,744 5,137 37 52 5,122 Agency commercial mortgage-backed securities 9,172 27 540 8,659 9,753 188 290 9,651 Other securities 1 — — 1 — — — — Total securities available for sale $ 46,557 $ 39 $ 2,915 $ 43,681 $ 45,893 $ 324 $ 853 $ 45,364 HELD-TO-MATURITY SECURITIES Agency residential collateralized mortgage obligations $ 1,983 $ — $ 67 $ 1,916 $ 2,196 $ 33 $ — $ 2,229 Agency residential mortgage-backed securities 152 — 3 150 164 6 — 170 Agency commercial mortgage-backed securities 2,549 7 32 2,524 2,678 118 — 2,796 Asset-backed securities (c) 2,172 — 89 2,082 2,485 — 31 2,454 Other securities 15 — — 15 16 — — 16 Total held-to-maturity securities $ 6,871 $ 7 191 $ 6,687 $ 7,539 $ 157 $ 31 $ 7,665 (a) Amortized cost amounts exclude accrued interes t receivable which is recorded within Other Assets on the balance sheet. At March 31, 2022, accrued interest receivable on available for sale securities and held-to-maturity securities totaled $64 million and $14 million, respectively. (b) Amortized cost amounts exclude accrued interes t receivable which is recorded within Other Assets on the balance sheet. At December 31, 2021, accrued interest receivable on available for sale securities and held-to-maturity securities totaled $59 million and $15 million , respectively. (c) Includes $2.2 billion of securities as of March 31, 2022, and $2.5 billion of securities as of December 31, 2021, related to the purchase of senior notes from a securitization collateralized by sold indirect auto loans. The following table summarizes securities in an unrealized loss position for which an allowance for credit losses has not been recorded as of March 31, 2022, and December 31, 2021. Duration of Unrealized Loss Position Less than 12 Months 12 Months or Longer Total Dollars in millions Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses March 31, 2022 Securities available for sale: U.S Treasury, agencies, and corporations $ 8,800 $ 394 $ 589 $ 22 $ 9,389 $ 416 Agency residential collateralized mortgage obligations 16,751 1,138 3,460 480 20,211 1,618 Agency residential mortgage-backed securities 3,196 220 1,107 120 4,303 340 Agency commercial mortgage-backed securities 1,973 58 4,808 482 6,781 540 Held-to-maturity securities: U.S Treasury, Agencies, and Corporations — — — — — — States and political subdivisions — — — — — — Agency residential collateralized mortgage obligations 1,905 67 — — 1,905 67 Agency residential mortgage-backed securities 150 3 (a) — — 150 3 Agency commercial mortgage-backed securities 1,393 32 (a) — — 1,393 32 Asset-backed securities 2,081 89 1 — (a) 2,082 89 Other securities 7 — (a) 3 — (a) 10 — Total securities in an unrealized loss position $ 36,256 $ 2,001 $ 9,968 $ 1,104 $ 46,224 $ 3,105 December 31, 2021 Securities available for sale: U.S. Treasury, agencies, and corporations $ 9,078 $ 98 $ 243 $ 3 $ 9,321 $ 101 Agency residential collateralized mortgage obligations 12,603 315 1,255 95 13,858 410 Agency residential mortgage-backed securities 3,793 49 178 3 3,971 52 Agency commercial mortgage-backed securities 1,645 75 3,834 215 5,479 290 Held-to-maturity securities: Agency residential collateralized mortgage obligations 96 — (b) — — 96 — Asset-backed securities 2,450 31 1 — (b) 2,451 31 Other securities 15 — (b) — — 15 — Total securities in an unrealized loss position $ 29,680 $ 568 $ 5,511 $ 316 $ 35,191 $ 884 (a) At March 31, 2022 , gross unrealized losses totaled less than $1 million fo r other securities held-to-maturity with a loss duration of less than 12 months and asset-backed securities and other securities held-to-maturity with a loss duration of 12 months or longer. (b) At December 31, 2021, gross unrealized losses totaled less than $1 million for other securities held-to-maturity and agency residential collateralized mortgage obligations held-to-maturity with a loss duration of less than 12 months. At December 31, 2021, gross unrealized losses totaled less than $1 million for asset backed securities held-to-maturity with a loss duration greater than 12 months or longer. Based on our evaluation at March 31, 2022, an allowance for credit losses has not been recorded nor have unrealized losses been recognized into income. The issuers of the securities are of high credit quality and have a history of no credit losses, management does not intend to sell and it is likely that management will not be required to sell the securities prior to their anticipated recovery, and the decline in fair value is largely attributed to changes in interest rates and other market conditions. The issuers continue to make timely principal and interest payments. At March 31, 2022, securities available for sale and held-to-maturity securities totaling $14.4 billion we re 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, other mortgage-backed securities, and asset-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. March 31, 2022 Securities Available for Sale Held to Maturity Securities Dollars in millions Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ 275 $ 277 $ 39 $ 40 Due after one through five years 17,642 16,993 4,861 4,717 Due after five through ten years 24,290 22,448 1,971 1,930 Due after ten years 4,350 3,963 — — Total $ 46,557 $ 43,681 $ 6,871 $ 6,687 |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 3 Months Ended |
Mar. 31, 2022 | |
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, forwards, 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 March 31, 2022, after taking into account the effects of bilateral collateral and master netting agreements, we had $99 million of derivative assets and $11 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 $2.6 billion and derivative liabilities of $609 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 113 of our 2021 Form 10-K. Our derivative strategies and related risk management objectives are described in Note 8 (“Derivatives and Hedging Activities”) beginning on page 141 of our 2021 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 March 31, 2022, and December 31, 2021. 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: March 31, 2022 December 31, 2021 Fair Value (a) Fair Value (a) Dollars in millions Notional Amount Derivative Assets Derivative Liabilities Notional Amount Derivative Assets Derivative Liabilities Derivatives designated as hedging instruments: Interest rate $ 35,791 $ (4) $ (49) $ 38,654 $ 39 $ 4 Derivatives not designated as hedging instruments: Interest rate 75,463 335 611 72,088 768 249 Foreign exchange 9,125 102 96 9,073 81 76 Commodity 17,643 2,613 2,613 14,151 1,330 1,335 Credit 204 1 6 465 1 12 Other (a) 2,813 22 10 3,330 27 11 Total 105,248 3,073 3,336 99,107 2,207 1,683 Netting adjustments (b) — (330) (2,689) — (284) (1,526) Net derivatives in the balance sheet 141,039 2,739 598 137,761 1,962 161 Other collateral (c) — — — — (1) — Net derivative amounts $ 141,039 $ 2,739 $ 598 $ 137,761 $ 1,961 $ 161 (a) We take into account bilateral collateral and master netting agreements that allow us to settle all derivative contracts held with a single counterparty on a net basis, and to offset the net derivative position with the related cash collateral when recognizing derivative assets and liabilities. As a result, we could have derivative contracts with negative fair values included in derivative assets and contracts with positive fair values included in derivative liabilities. (b) 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. (c) 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. (d) 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 three months ended March 31, 2022, 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 March 31, 2022, and December 31, 2021, related to cumulative basis adjustments for fair value hedges. March 31, 2022 Dollars 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 $ 7,454 $ (102) Interest rate contracts Securities Available for Sale (c) 2,805 119 December 31, 2021 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 $ 7,553 $ 138 Interest rate contracts Securities Available for Sale (c) 6,280 134 (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 adjustm ent by $7 million and $7 million at March 31, 2022, and December 31, 2021, respectively, (c) These amounts are designed as fair value hedges under the last-of-layer method. The carrying amount represents the amortized costs basis of the prepayable financial assets used to designate hedging relationships in which the hedged item is the l ast layer expected to be remaining at the end of the relationship. At March 31, 2022, and December 31, 2021, the amortized costs of the closed portfolios in these hedging relationships was $3.5 billion and $7.7 billion, respectively. Cash flow hedges. During the three-month period ended March 31, 2022, 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 March 31, 2022, we expect to reclassify an estimated $124 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 $3 million of net losses related to terminated cash flow hedges from AOCI to income during the next 12 months. As of March 31, 2022, the maximum length of time over which we hedge forecasted transactions is 5.42 years. The following tables summarize the effect of fair value and cash flow hedge accounting on the income statement for the three-month periods ended March 31, 2022, and March 31, 2021. Location and amount of net gains (losses) recognized in income on fair value and cash flow hedging relationships Dollars in millions Interest expense – long-term debt Interest income – loans Interest Income - securities Investment banking and debt placement fees Three months ended March 31, 2022 Total amounts presented in the consolidated statement of income $ 49 $ 837 $ 173 $ 163 Net gains (losses) on fair value hedging relationships Interest contracts Recognized on hedged items $ 240 $ — $ (276) $ — Recognized on derivatives designated as hedging instruments (216) — 282 — Net income (expense) recognized on fair value hedges $ 24 $ — $ 6 $ — Net gain (loss) on cash flow hedging relationships Interest contracts Realized gains (losses) (pre-tax) reclassified from AOCI into net income $ (1) $ 64 $ — $ 2 Net income (expense) recognized on cash flow hedges $ (1) $ 64 $ — $ 2 Three months ended March 31, 2021 Total amounts presented in the consolidated statement of income $ 60 $ 889 $ 130 $ 162 Net gains (losses) on fair value hedging relationships Interest contracts Recognized on hedged items $ 204 $ — $ (266) $ — Recognized on derivatives designated as hedging instruments (166) — 267 — Net income (expense) recognized on fair value hedges $ 38 $ — $ 1 $ — Net gain (loss) on cash flow hedging relationships Interest contracts Realized gains (losses) (pre-tax) reclassified from AOCI into net income $ (1) $ 89 $ — $ 1 Net income (expense) recognized on cash flow hedges $ (1) $ 89 $ — $ 1 The following tables summarize the pre-tax net gains (losses) on our cash flow hedges for the three-month periods ended March 31, 2022, and March 31, 2021, 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. Dollars 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 March 31, 2022 Cash Flow Hedges Interest rate $ (670) Interest income — Loans $ 64 Interest rate 3 Interest expense — Long-term debt (1) Interest rate 9 Investment banking and debt placement fees 2 Total $ (658) $ 65 Three months ended March 31, 2021 Cash Flow Hedges Interest rate $ (203) Interest income — Loans $ 89 Interest rate 3 Interest expense — Long-term debt (1) Interest rate 10 Investment banking and debt placement fees 1 Total $ (190) $ 89 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-month periods ended March 31, 2022, and March 31, 2021, and where they are recorded on the income statement. Three months ended March 31, 2022 Three months ended March 31, 2021 Dollars 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 $ 13 $ — $ 9 $ 22 $ 6 $ — $ — $ 6 Foreign exchange 13 — — 13 11 — — 11 Commodity 5 — — 5 4 — — 4 Credit 2 — (10) (8) 5 — (9) (4) Other — (4) 7 3 — 1 (22) (21) Total net gains (losses) $ 33 $ (4) $ 6 $ 35 $ 26 $ 1 $ (31) $ (4) Counterparty Credit Risk We hold collateral in the form of cas h and highly rated securities issued by the U.S. Treasury, government-sponsored enterprises, or GNMA. Cash collateral of $149 million was nette d against derivative assets on the balance sheet at March 31, 2022, compa red to $100 million of cash collateral netted against derivative assets at December 31, 2021. The cash collateral netted against derivative liabilities totaled $2.2 billion at March 31, 2022, and $1.1 billion at December 31, 2021. 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 141 of our 2021 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. Dollars in millions March 31, 2022 December 31, 2021 Interest rate $ 241 $ 696 Foreign exchange 42 31 Commodity 2,285 1,108 Credit — — Other 22 27 Derivative assets before collateral 2,590 1,862 Plus(Less): Related collateral 149 100 Total derivative assets $ 2,739 $ 1,962 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. These types of transactions are primarily high dollar volume. We enter into bilateral collateral and master netting agreements with these counterparties. We clear certain types of derivative transactions with these counterparties, whereby central clearing organizations become the counterparties to our derivative contracts. In addition, we enter into derivative contracts through swa p execution facilities. Swap clearing and swap execution facilities reduce our exposure to counterparty credit risk. At March 31, 2022, we had gross exposure of $209 million to broker-dealers and banks. We had net exposure of $305 million after the application of master netting agreements and cash collateral, where such qualifying agreements exist. We had net exposure of $303 million after considering $2 million of additional collateral held in the form of securities. We enter into transactions using master netting agreements with clients to accommodate their business needs. In most cases, we mitigate our credit exposure by cross-collateralizing these transactions to the underlying loan collateral. For transactions that are not clearable, we mitigate our market risk by buying and selling U.S. Treasuries and Eurodollar futures or entering into offsetting positions. Due to the cross-collateralization to the underlying loan, we typically do not exchange cash or marketable securities collateral in connection with these transactions. To address the risk of default associated with these contracts, we have established a CVA reserve (included in “accrued income and other assets”) in the amount of $19 million at March 31, 2022. The CVA is calculated from potential future exposures, expected recovery rates, and market-implied probabilities of default. At March 31, 2022, we had gross exposure of $2.6 billion 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 $2.4 billion on our derivatives with these counterparties after the application of master netting agreements, collateral, an d 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 $5 million as of March 31, 2022, and $11 million as of December 31, 2021. Our credit derivative portfolio consists of 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 141 of our 2021 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 March 31, 2022, and December 31, 2021. The notional amount represents the amount that the seller could be required to pay. The payment/performance risk shown in the table represents a weighted average of the default probabilities for all reference entities in the respective portfolios. These default probabilities are implied from observed credit indices in the credit default swap market, which are mapped to reference entities based on Key’s internal risk rating. March 31, 2022 December 31, 2021 Dollars in millions Notional Amount Average Term (Years) Payment / Performance Risk Notional Amount Average Term (Years) Payment / Performance Risk Other $ 75 15.08 4.02 % $ 149 13.86 3.15 % Total credit derivatives sold $ 75 — — $ 149 — — 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 lev el, usually investment-grade level (i.e., “Baa3” for Moody’s and “BBB-” for S&P). At March 31, 2022, 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 March 31, 2022, 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 $2.3 billion, which was comprised of $265 million in derivative assets and $2.6 billion in derivative liabilities. We had $2.3 billion in cash and securities collateral posted to cover those positions as of March 31, 2022. There were no derivative contracts with credit risk contingent features held by KeyCorp at March 31, 2022. 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 March 31, 2022, and December 31, 2021. The additional collateral amounts were calculated based on scenarios under which KeyBank’s ratings are downgraded one, two, or three ratings as of March 31, 2022, and December 31, 2021, and take into account all collateral already posted. A similar calculation was performed for Ke yCorp, and no addition al collateral would have been required as of March 31, 2022, and December 31, 2021. 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. March 31, 2022 December 31, 2021 Dollars 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 $ 3 $ 3 Two rating downgrades 2 2 3 3 Three rating downgrades 2 2 3 3 KeyBank’s long-term senior unsecured credit rating was four ratings above noninvestment grade at Moody’s and S&P as of March 31, 2022, and December 31, 2021. If Key Bank’s ratings had been downgraded below investment grade as of March 31, 2022, or December 31, 2021, payments of $4 million and $4 million, respectively, would have been required to either terminate the contracts or post additional collateral for th ose 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 March 31, 2022, or December 31, 2021, 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 | 3 Months Ended |
Mar. 31, 2022 | |
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 from 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 114 of our 2021 Form 10-K. Commercial Changes in the carrying amount of commercial mortgage servicing assets are summarized as follows: Three months ended March 31, Dollars in millions 2022 2021 Balance at beginning of period $ 634 $ 578 Servicing retained from loan sales 30 29 Purchases 11 7 Amortization (31) (29) Temporary (impairments) recoveries — 3 Balance at end of period $ 644 $ 588 Fair value at end of period $ 846 $ 682 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 March 31, 2022, and March 31, 2021, along with the valuation techniques, are shown in the following table: dollars in millions March 31, 2022 March 31, 2021 Valuation Technique Significant Unobservable Input Range Weighted Average Range Weighted Average Discounted cash flow Expected defaults 1.00 % 2.00 % 1.12 % 1.01 % 2.00 % 1.18 % Residual cash flows discount rate 8.34 % 10.32 % 9.52 % 7.42 % 10.59 % 9.20 % Escrow earn rate 2.06 % 2.49 % 2.31 % 0.94 % 1.22 % 1.10 % Loan assumption rate — % 1.64 % 1.29 % — % 1.75 % 1.44 % 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 $67 million for the three-month period ended March 31, 2022, and $61 million for the three-month period ended March 31, 2021. This fee income was offset by $31 million of amortization for the three-month period ended March 31, 2022, and $29 million for the three-month period ended March 31, 2021. Both the contractual fee income and the amortization are recorded, net, in “commercial 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 March 31, Dollars in millions 2022 2021 Balance at beginning of period $ 93 $ 58 Servicing retained from loan sales 11 11 Purchases — — Amortization (4) (5) Temporary (impairments) recoveries 1 8 Balance at end of period $ 101 $ 72 Fair value at end of period $ 116 $ 77 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 March 31, 2022, and March 31, 2021, along with the valuation techniques, are shown in the following table: March 31, 2022 March 31, 2021 Valuation Technique Significant Unobservable Input Range Weighted Average Range Weighted Average Discounted cash flow Prepayment speed 5.84 % 59.51 % 8.82 % 10.55 % 50.81 % 12.82 % Discount rate 7.50 % 8.52 % 7.53 % 7.51 % 8.63 % 7.55 % Servicing cost $ 62.00 $ 8,075 $ 67.46 $ 62.00 $ 4,375 $ 72.48 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 residential 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 residential mortgage 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 would cause a decrease in the fair value of our residential mortgage servicing assets. An increase in the assigned discount rates and servicing cost assumptions would cause a decrease in the fair value of our residential mortgage servicing assets. The amortization of servicing assets for March 31, 2022, 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 $10 million for the three-month period ended March 31, 2022, and $10 million for the three-month period ended March 31, 2021. This fee income was offset by $4 million of amortization for the three-month period ended March 31, 2022, and $5 million for the three-month period ended March 31, 2021. Both the contractual fee income and the amortization are recorded, net, in “consumer mortgage income” on the income statement. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2022 | |
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. For more information on our leasing activity, see Note 10 (“Leases”) beginning on page 149 of our 2021 Form 10-K. 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 income statement. 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: Three months ended March 31, Dollars in millions 2022 2021 Sales-type and direct financing leases Interest income on lease receivable $ 16 $ 23 Interest income related to accretion of unguaranteed residual asset 4 2 Total sales-type and direct financing lease income 20 25 Operating leases Operating lease income related to lease payments 29 32 Other operating leasing gains 4 6 Total operating lease income and other leasing gains 32 38 Total lease income $ 52 $ 63 |
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. For more information on our leasing activity, see Note 10 (“Leases”) beginning on page 149 of our 2021 Form 10-K. 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 income statement. 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: Three months ended March 31, Dollars in millions 2022 2021 Sales-type and direct financing leases Interest income on lease receivable $ 16 $ 23 Interest income related to accretion of unguaranteed residual asset 4 2 Total sales-type and direct financing lease income 20 25 Operating leases Operating lease income related to lease payments 29 32 Other operating leasing gains 4 6 Total operating lease income and other leasing gains 32 38 Total lease income $ 52 $ 63 |
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. For more information on our leasing activity, see Note 10 (“Leases”) beginning on page 149 of our 2021 Form 10-K. 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 income statement. 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: Three months ended March 31, Dollars in millions 2022 2021 Sales-type and direct financing leases Interest income on lease receivable $ 16 $ 23 Interest income related to accretion of unguaranteed residual asset 4 2 Total sales-type and direct financing lease income 20 25 Operating leases Operating lease income related to lease payments 29 32 Other operating leasing gains 4 6 Total operating lease income and other leasing gains 32 38 Total lease income $ 52 $ 63 |
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. For more information on our leasing activity, see Note 10 (“Leases”) beginning on page 149 of our 2021 Form 10-K. 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 income statement. 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: Three months ended March 31, Dollars in millions 2022 2021 Sales-type and direct financing leases Interest income on lease receivable $ 16 $ 23 Interest income related to accretion of unguaranteed residual asset 4 2 Total sales-type and direct financing lease income 20 25 Operating leases Operating lease income related to lease payments 29 32 Other operating leasing gains 4 6 Total operating lease income and other leasing gains 32 38 Total lease income $ 52 $ 63 |
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. For more information on our leasing activity, see Note 10 (“Leases”) beginning on page 149 of our 2021 Form 10-K. 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 income statement. 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: Three months ended March 31, Dollars in millions 2022 2021 Sales-type and direct financing leases Interest income on lease receivable $ 16 $ 23 Interest income related to accretion of unguaranteed residual asset 4 2 Total sales-type and direct financing lease income 20 25 Operating leases Operating lease income related to lease payments 29 32 Other operating leasing gains 4 6 Total operating lease income and other leasing gains 32 38 Total lease income $ 52 $ 63 |
Goodwill
Goodwill | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | 10. Goodwill Our annual goodwill impairment testing is performed as of October 1 each year, or more frequently as events occur or circumstances change that would more-likely-than-not reduce the fair value of a reporting unit below its carrying amount. A quantitative or qualitative testing approach may be used. Additional information pertaining to our accounting policy for goodwill and other intangible assets is summarized in Note 1 (“Summary of Significant Accounting Policies”) under the heading “Goodwill and Other Intangible Assets” beginning on page 114 of our 2021 Form 10-K. The fair values of each reporting unit are estimated using a combination of market and income approaches. In our latest quantitative test as of October 1, 2021, the income approach utilized discounted cash flow projections for each reporting unit. The market approach consisted primarily of public company metrics but also utilized recent transactions in the financial services industry. The carrying amounts of Key’s reporting units represent the combination of regulatory and economic equity for goodwill impairment testing and management reporting purposes. Changes in the carrying amount of goodwill by reporting segment are presented in the following table: Dollars in millions Consumer Bank Commercial Bank Total BALANCE AT MARCH 31, 2021 $ 1,761 $ 912 $ 2,673 XUP acquisition — 20 20 BALANCE AT BALANCE AT DECEMBER 31, 2021 $ 1,761 $ 932 $ 2,693 XUP acquisition measurement period adjustment — 1 1 BALANCE AT MARCH 31, 2022 $ 1,761 $ 933 $ 2,694 |
Variable Interest Entities
Variable Interest Entities | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities | 11. 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 13 (“Variable Interest Entities “) beginning on page 153 of our 2021 Form 10-K. LIHTC investments. We had $1.6 billion and $1.6 billion of investments in LIHTC operating partnerships at March 31, 2022, and December 31, 2021, 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 March 31, 2022, and December 31, 2021, we had liabilities of $675 million and $675 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 March 31, 2022, and December 31, 2021. 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 13 (“Variable Interest Entities”) beginning on page 153 of our 2021 Form 10-K. Unconsolidated VIEs Dollars in millions Total Assets Total Liabilities Maximum Exposure to Loss March 31, 2022 LIHTC investments $ 7,816 $ 3,265 $ 2,005 December 31, 2021 LIHTC investments $ 7,839 $ 3,252 $ 1,985 We amortize our LIHTC investments over the period that we expect to receive the tax benefits. During the first three months of 2022, we recognized $46 million of amortization and $45 million of tax credits associated with these investments within “income taxes” on our income statement. During the first three months of 2021, we recognized $50 million of amortization and $47 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 $44 million and $45 million at March 31, 2022, and December 31, 2021, 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 March 31, 2022, and December 31, 2021. Unconsolidated VIEs Dollars in millions Total Assets Total Liabilities Maximum Exposure to Loss March 31, 2022 Indirect investments $ 8,277 $ 232 $ 55 December 31, 2021 Indirect investments $ 8,437 $ 178 $ 57 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 March 31, 2022, and December 31, 2021, that can be used to settle the entities’ obligations. The entities had no liabilities at March 31, 2022, and December 31, 2021, and other equity investors have no recourse to our general credit. Additional information on our indirect and direct principal investments is provided in Note 6 (“Fair Value Measurements”) beginning on page 130 and in Note 13 (“Variable Interest Entities “) beginning on page 153 of our 2021 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 or hold a variable interest that could potentially be significant. The table below shows our assets and liabilities associated with these unconsolidated VIEs at March 31, 2022, and December 31, 2021. These assets are recorded in “accrued income and other assets,” “other investments,” “securities available for sale,” “held-to-maturity securities,” and “loans, net of unearned income” on our balance sheet. Of the total balance as of March 31, 2022, $2.2 billion related to the purchase of senior notes from a securitization collateralized by sold indirect auto loans. Additional information pertaining to our other unconsolidated VIEs is included in Note 13 (“Variable Interest Entities“) under the heading “Other unconsolidated VIEs” on page 155 of our 2021 Form 10-K. Other unconsolidated VIEs Dollars in millions Total Assets Total Liabilities March 31, 2022 Other unconsolidated VIEs $ 2,523 $ 1 December 31, 2021 Other unconsolidated VIEs $ 2,827 $ 1 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 12. 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 16.7% for the first quarter of 2022 and 19.4% for the first quarter of 2021. 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 Taxes At March 31, 2022, we had a net deferred tax asset of $801 million, compared to a net deferred tax asset of $189 million at December 31, 2021, which are 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 $12 million at March 31, 2022, and $12 million at December 31, 2021. The valuation allowance is associated with federal and state capital loss carryforwards. Unrecognized Tax Benefits At March 31, 2022, Key’s unrecognized tax benefits were $46 million. 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.” 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 and Discontinued O
Acquisitions and Discontinued Operations | 3 Months Ended |
Mar. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions and Discontinued Operations | 13. Acquisition and Discontinued Operations Acquisitions XUP Payments. On November 19, 2021, KeyBank acquired XUP Payments, a B2B focused digital platform. The acquisition was accounted for as a business combination. As a result of the acquisition, we recognized goodwill of $20.6 million and no separately identified intangible assets were recorded. Other acquired assets and liabilities of XUP were immaterial. The valuation was final as of March 31, 2022. Discontinued operations Discontinued operations primarily includes our government-guaranteed and private education lending business. At March 31, 2022, and December 31, 2021, approximately $531 million and $567 million, 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 | 3 Months Ended |
Mar. 31, 2022 | |
Banking and Thrift, Other Disclosures [Abstract] | |
Securities Financing Activities | 14. Securities Financing Activities Additional information regarding our securities financing activities, including risk management activities, is provided in Note 1 (“Summary of Significant Accounting Policies”) beginning on page 107 of our 2021 Form 10-K. The following table summarizes our securities financing agreements at March 31, 2022, and December 31, 2021: March 31, 2022 December 31, 2021 Dollars 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 $ 4 $ (4) $ — — $ 11 $ (6) $ (5) — Securities borrowed 500 — (500) — 500 — (500) — Total $ 504 $ (4) $ (500) — $ 511 $ (6) $ (505) — Offsetting of financial liabilities: Repurchase agreements (c) $ 598 $ (4) $ (594) — $ 173 $ (6) $ (167) — Total $ 598 $ (4) $ (594) — $ 173 $ (6) $ (167) — (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 March 31, 2022, the carrying amount of assets pledged as collateral against repurchase agreements totaled $243 million. Assets pledged as collateral are reported in “securities available for sale” and “held-to-maturity securities” on the Consolidated Balance Sheets. At March 31, 2022, the liabilities associated with collateral pledged were solely comprised of customer sweep financing activity and had a carrying value of $594 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 | 3 Months Ended |
Mar. 31, 2022 | |
Retirement Benefits [Abstract] | |
Employee Benefits | 15. 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 18 (“Employee Benefits”) beginning on page 161 of our 2021 Form 10-K. Three months ended March 31, Dollars in millions 2022 2021 Interest cost on PBO $ 7 $ 6 Expected return on plan assets (7) (7) Amortization of losses 4 5 Settlement loss — — Net pension cost $ 4 $ 4 |
Trust Preferred Securities Issu
Trust Preferred Securities Issued by Unconsolidated Subsidiaries | 3 Months Ended |
Mar. 31, 2022 | |
Banking and Thrift, Other Disclosures [Abstract] | |
Trust Preferred Securities Issued by Unconsolidated Subsidiaries | 16. 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 the Consolidated Balance Sheets. 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 March 31, 2022 KeyCorp Capital I $ 156 $ 6 $ 162 0.954 % 2028 KeyCorp Capital II 126 4 130 6.875 2029 KeyCorp Capital III 97 4 101 7.750 2029 HNC Statutory Trust III 20 1 21 1.880 2035 Willow Grove Statutory Trust I 20 1 21 1.579 2036 HNC Statutory Trust IV 17 1 18 2.136 2037 Westbank Capital Trust II 8 — 8 3.118 2034 Westbank Capital Trust III 8 — 8 3.118 2034 Total $ 452 $ 17 $ 469 4.251 % — December 31, 2021 $ 466 $ 17 $ 483 4.271 % — (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 $38 million at March 31, 2022, and $52 million at December 31, 2021. 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 $38 million at March 31, 2022, and $52 million at December 31, 2021. 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 | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingent Liabilities and Guarantees | 17. 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 litigation 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 March 31, 2022. 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 “Contingencies and Guarantees” beginning on page 115 of our 2021 Form 10-K. March 31, 2022 Maximum Potential Undiscounted Future Payments Liability Recorded Dollars in millions Financial guarantees: Standby letters of credit $ 3,722 $ 85 Recourse agreement with FNMA 6,570 26 Residential mortgage reserve 3,221 15 Written put options (a) 3,836 125 Total $ 17,349 $ 251 (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 March 31, 2022, is low. Information pertaining to the nature of each of the guarantees listed below is included in Note 22 (“Commitments, Contingent Liabilities, and Guarantees”) under the heading “Guarantees” beginning on page 172 of our 2021 Form 10-K. Standby letters of credit. At March 31, 2022, our standby letters of credit had a remaining weighted-average life of 1.8 years, with remaining actual lives ranging from less than 1 year to as many as 12.7 years. Recourse agreement with FNMA. At March 31, 2022, the outstanding commercial mortgage loans in this program had a weighted-average remaining term of 7.7 years, and the unpaid principal balance outstanding of loans sold by us as a participant was $21.5 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 30.6% of the principal balance of loans outstanding at March 31, 2022. FNMA delegates responsibility for originating, underwriting, and servicing mortgages, and we assume a limited portion of the risk of loss during the remaining term on each commercial mortgage loan that we sell to FNMA. We maintain a reserve for such potential losses in an amount that we believe approximates the fair value of our liability in addition to the expected credit loss for the guarantee as described in Note 4 (“Asset Quality“). Residential Mortgage Banking. At March 31, 2022, the unpaid principal balance outstanding of loans sold by us in this program was $10.7 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 30% of the principal balance of loans outstanding at March 31, 2022. Our liability for estimated repurchase obligations on loans sold, which is included in “accrued expenses and other liabilities” on the balance sheet, was $15 million at March 31, 2022. For more information on our residential mortgages, see Note 8 (“Mortgage Servicing Assets“). Written put options. At March 31, 2022, our written put options had an average life of 2.2 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 of other off-balance sheet risk is included in Note 22 (“Commitments, Contingent Liabilities, and Guarantees”) under the heading “Other Off-Balance Sheet Risk” on page 173 of our 2021 Form 10-K. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income | 18. Accumulated Other Comprehensive Income Our changes in AOCI for the three months ended March 31, 2022, and March 31, 2021, are as follows: Dollars in millions Unrealized gains (losses) on securities available for sale Unrealized gains (losses) on derivative financial instruments Net pension and postretirement benefit costs Total Balance at December 31, 2021 $ (403) $ 88 $ (271) $ (586) Other comprehensive income before reclassification, net of income taxes (1,784) (511) (1) (2,296) Amounts reclassified from AOCI, net of income taxes (a) — (50) 3 (47) Net current-period other comprehensive income, net of income taxes (1,784) (561) 2 (2,343) Balance at March 31, 2022 $ (2,187) $ (473) $ (269) $ (2,929) Balance at December 31, 2020 $ 567 $ 476 $ (305) $ 738 Other comprehensive income before reclassification, net of income taxes (628) 58 (1) (571) Amounts reclassified from AOCI, net of income taxes (a) — (68) 4 (64) Net current-period other comprehensive income, net of income taxes (628) (10) 3 (635) Balance at March 31, 2021 $ (61) $ 466 $ (302) $ 103 (a) See table below for details about these reclassifications. Our reclassifications out of AOCI for the three months ended March 31, 2022, and March 31, 2021, are as follows: Three months ended March 31, Affected Line Item in the Consolidated Statement of Income Dollars in millions 2022 2021 Unrealized gains (losses) on derivative financial instruments Interest rate $ 64 $ 89 Interest income — Loans Interest rate (1) (1) Interest expense — Long-term debt Interest rate 2 1 Investment banking and debt placement fees 65 89 Income (loss) from continuing operations before income taxes 15 21 Income taxes $ 50 $ 68 Income (loss) from continuing operations Net pension and postretirement benefit costs Amortization of losses $ (4) $ (5) Other expense (4) (5) Income (loss) from continuing operations before income taxes (1) (1) Income taxes $ (3) $ (4) Income (loss) from continuing operations |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Shareholders' Equity | 19. Shareholders' Equity Comprehensive Capital Plan In July 2021, the Board of Directors authorized the repurchase of up to $1.5 billion of our Common Shares, effective for the third quarter of 2021 through the third quarter of 2022. During the first quarter of 2022, activity under this authorization was limited to repurchases related to employee equity compensation programs. Consistent with our capital plan, the Board declared a quarterly dividend of $.195 per Common Share for the first quarter of 2022. Common Share repurchases and Common Share dividends paid during the first quarter are consistent with the Federal Reserve’s first quarter capital distribution limitations. Preferred Stock The following table summarizes our preferred stock at March 31, 2022. 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 First quarter 2022 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 .351563 |
Business Segment Reporting
Business Segment Reporting | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Business Segment Reporting | 20. Business Segment Reporting The following is description of the segments and their primary businesses at March 31, 2022. Consumer Bank The Consumer Bank serves individuals and small businesses throughout our 15-state branch footprint as well as healthcare professionals nationally through our Laurel Road digital brand by offering a variety of deposit and investment products, personal finance and financial wellness services, lending, student loan refinancing, mortgage and home equity, credit card, treasury services, and business advisory services. In addition, wealth management and investment services are offered to assist 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-month periods ended March 31, 2022, and March 31, 2021. Capital is assigned to each business segment based on a combination of regulatory and economic equity. Three months ended March 31, Consumer Bank Commercial Bank Other Total Key Dollars in millions 2022 2021 2022 2021 2022 2021 2022 2021 SUMMARY OF OPERATIONS Net interest income (TE) $ 543 $ 607 $ 415 $ 411 $ 62 $ (6) $ 1,020 $ 1,012 Noninterest income 256 257 395 447 25 34 676 738 Total revenue (TE) (a) 799 864 810 858 87 28 1,696 1,750 Provision for credit losses 43 (23) 41 (67) (1) (3) 83 (93) Depreciation and amortization expense 21 18 31 34 18 23 70 75 Other noninterest expense 642 583 386 409 (28) 4 1,000 996 Income (loss) from continuing operations before income taxes (TE) 93 286 352 482 98 4 543 772 Allocated income taxes and TE adjustments 23 69 69 99 4 (14) 96 154 Income (loss) from continuing operations 70 217 283 383 94 18 447 618 Income (loss) from discontinued operations, net of taxes — — — — 1 4 1 4 Net income (loss) 70 217 283 383 95 22 448 622 Less: Net income (loss) attributable to noncontrolling interests — — — — — — — — Net income (loss) attributable to Key $ 70 $ 217 $ 283 $ 383 $ 95 $ 22 $ 448 $ 622 AVERAGE BALANCES (b) Loans and leases $ 38,637 $ 39,249 $ 64,701 $ 61,221 $ 424 $ 258 $ 103,762 $ 100,728 Total assets (a) 41,814 42,476 74,860 70,448 65,915 59,309 182,589 172,233 Deposits 91,468 85,033 57,289 51,894 1,406 813 150,163 137,740 OTHER FINANCIAL DATA Net loan charge-offs (b) $ 22 $ 36 $ 11 $ 78 $ — $ — $ 33 $ 114 Return on average allocated equity (b) 7.91 % 25.74 % 13.21 % 17.41 % 8.47 % 1.35 % 10.80 % 14.11 % Return on average allocated equity 7.91 25.74 13.21 17.41 8.56 1.64 10.83 14.20 Average full-time equivalent employees (c) 7,899 8,284 2,402 2,258 6,809 6,544 17,110 17,086 (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 | 3 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | 21. Revenue from Contracts with Customers The following table represents a disaggregation of revenue from contracts with customers, by business segment, for the three-month periods ended March 31, 2022, and March 31, 2021. 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. Three months ended March 31, 2022 Three months ended March 31, 2021 Dollars in millions Consumer Bank Commercial Bank Total Contract Revenue Consumer Bank Commercial Bank Total Contract Revenue NONINTEREST INCOME Trust and investment services income $ 106 $ 18 $ 124 $ 101 $ 18 $ 119 Investment banking and debt placement fees — 109 109 — 79 79 Services charges on deposit accounts 55 36 91 39 34 73 Cards and payments income 42 36 78 43 61 104 Other noninterest income 2 — 2 3 1 4 Total revenue from contracts with customers $ 205 $ 199 $ 404 $ 186 $ 193 $ 379 Other noninterest income (a) $ 247 $ 325 Noninterest income from Other (b) 25 34 Total noninterest income $ 676 $ 738 (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 20 (“Business Segment Reporting”) for more information. We had no material contract assets or contract liabilities as of March 31, 2022, and March 31, 2021. |
Basis of Presentation and Acc_2
Basis of Presentation and Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
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 11 (“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. 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 2021 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 in 2021 | Accounting Guidance Adopted in 2022 Standard Date of Adoption Description Effect on Financial Statements or Reference Rate Reform (Topic 848) March 12, 2020 through December 31, 2022 London Interbank Offered Rate (LIBOR), a reference rate presumed to capture bank funding costs, is being phased out and will no longer be published. This transition to alternate rates will impact, among other things, contracts that reference LIBOR. This ASU provides relief from cumbersome accounting consequences for certain qualifying contract modifications undertaken as a result of reference rate reform. Key has established an enterprise-wide program to identify and address all LIBOR related issues. We have elected to apply certain optional expedients for contract modifications and hedging relationships to derivative instruments impacted by the market-wide discounting transition. These optional expedients remove the requirement to remeasure contract modifications or dedesignate hedging relationships due to reference rate reform. We plan to elect any optional expedients for contract modifications and hedging relationships to any other financial instruments falling under the scope of reference rate reform. ASU 2020-06, Debt—Debt January 1, 2022 The ASU simplifies the accounting for convertible debt instruments by eliminating the legacy accounting models for convertible The guidance should be applied on a modified retrospective or retrospective basis. The adoption of this accounting guidance did not have a material effect on our financial condition or results of operations. |
Basis of Presentation and Acc_3
Basis of Presentation and Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | Standard Date of Adoption Description Effect on Financial Statements or Reference Rate Reform (Topic 848) March 12, 2020 through December 31, 2022 London Interbank Offered Rate (LIBOR), a reference rate presumed to capture bank funding costs, is being phased out and will no longer be published. This transition to alternate rates will impact, among other things, contracts that reference LIBOR. This ASU provides relief from cumbersome accounting consequences for certain qualifying contract modifications undertaken as a result of reference rate reform. Key has established an enterprise-wide program to identify and address all LIBOR related issues. We have elected to apply certain optional expedients for contract modifications and hedging relationships to derivative instruments impacted by the market-wide discounting transition. These optional expedients remove the requirement to remeasure contract modifications or dedesignate hedging relationships due to reference rate reform. We plan to elect any optional expedients for contract modifications and hedging relationships to any other financial instruments falling under the scope of reference rate reform. ASU 2020-06, Debt—Debt January 1, 2022 The ASU simplifies the accounting for convertible debt instruments by eliminating the legacy accounting models for convertible The guidance should be applied on a modified retrospective or retrospective basis. The adoption of this accounting guidance did not have a material effect on our financial condition or results of operations. |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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 March 31, Dollars in millions, except per share amounts 2022 2021 EARNINGS Income (loss) from continuing operations $ 447 $ 618 Less: Net income (loss) attributable to noncontrolling interests — — Income (loss) from continuing operations attributable to Key 447 618 Less: Dividends on Preferred Stock 27 27 Income (loss) from continuing operations attributable to Key common shareholders 420 591 Income (loss) from discontinued operations, net of taxes 1 4 Net income (loss) attributable to Key common shareholders $ 421 $ 595 WEIGHTED-AVERAGE COMMON SHARES Weighted-average Common Shares outstanding (000) 922,941 964,878 Effect of Common Share options and other stock awards 10,692 9,419 Weighted-average Common Shares and potential Common Shares outstanding (000) (a) 933,634 974,297 EARNINGS PER COMMON SHARE Income (loss) from continuing operations attributable to Key common shareholders $ .45 $ .61 Income (loss) from discontinued operations, net of taxes — — Net income (loss) attributable to Key common shareholders (b) .46 .62 Income (loss) from continuing operations attributable to Key common shareholders — assuming dilution $ .45 $ .61 Income (loss) from discontinued operations, net of taxes — assuming dilution — — Net income (loss) attributable to Key common shareholders — assuming dilution (b) .45 .61 (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) | 3 Months Ended |
Mar. 31, 2022 | |
Loans Receivables [Abstract] | |
Loans by Category | Dollars in millions March 31, 2022 December 31, 2021 Commercial and industrial (b) $ 52,815 $ 50,525 Commercial real estate: Commercial mortgage 15,124 14,244 Construction 2,065 1,996 Total commercial real estate loans 17,189 16,240 Commercial lease financing (c) 3,916 4,071 Total commercial loans 73,920 70,836 Residential — prime loans: Real estate — residential mortgage 17,181 15,756 Home equity loans 8,258 8,467 Total residential — prime loans 25,439 24,223 Consumer direct loans 6,249 5,753 Credit cards 930 972 Consumer indirect loans 62 70 Total consumer loans 32,680 31,018 Total loans (d) $ 106,600 $ 101,854 (a) Accrued interest of $193 million and $198 million at March 31, 2022, and December 31, 2021, respectively, presented in "other assets" on the Consolidated Balance Sheets is excluded from the amortized cost basis disclosed in this table. (b) Loan balances include $147 million and $139 million of commercial credit card balances at March 31, 2022, and December 31, 2021, respectively. (c) Commercial lease financing includes receivables held as collateral for a secured borrowing of $14 million and $16 million at March 31, 2022, and December 31, 2021, 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 20 (“Long-Term Debt”) beginning on page 169 of our 2021 Form 10-K. |
Asset Quality (Tables)
Asset Quality (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Credit Loss [Abstract] | |
Financing Receivable, Allowance for Credit Loss | The changes in the ALLL by loan category for the periods indicated are as follows: Three months ended March 31, 2022: Dollars in millions December 31, 2021 Provision Charge-offs Recoveries March 31, 2022 Commercial and Industrial $ 445 $ 63 $ (30) $ 11 $ 489 Commercial real estate: Real estate — commercial mortgage 182 (7) (4) 1 172 Real estate — construction 29 (4) — — 25 Total commercial real estate loans 211 (11) (4) 1 197 Commercial lease financing 32 1 (2) — 31 Total commercial loans 688 53 (36) 12 717 Real estate — residential mortgage 95 12 1 — 108 Home equity loans 110 (6) (1) 1 104 Consumer direct loans 105 11 (7) 2 111 Credit cards 61 7 (7) 2 63 Consumer indirect loans 2 — (1) 1 2 Total consumer loans 373 24 (15) 6 388 Total ALLL — continuing operations 1,061 77 (a) (51) 18 1,105 Discontinued operations 28 1 (2) — 27 Total ALLL — including discontinued operations $ 1,089 $ 78 $ (53) $ 18 $ 1,132 (a) Excludes a provision for losses on lending-related commitments of $6 million. Three months ended March 31, 2021: Dollars in millions December 31, 2020 Provision Charge-offs Recoveries March 31, 2021 Commercial and Industrial $ 678 $ (17) $ (73) $ 8 $ 596 Commercial real estate: Real estate — commercial mortgage 327 (37) (35) 1 256 Real estate — construction 47 (2) — — 45 Total commercial real estate loans 374 (39) (35) 1 301 Commercial lease financing 47 (4) (4) 1 40 Total commercial loans 1,099 (60) (112) 10 937 Real estate — residential mortgage 102 (3) — 1 100 Home equity loans 171 (13) (2) 1 157 Consumer direct loans 128 4 (8) 2 126 Credit cards 87 (3) (6) 2 80 Consumer indirect loans 39 1 (7) 5 38 Total consumer loans 527 (14) (23) 11 501 Total ALLL — continuing operations 1,626 (74) (a) (135) 21 1,438 Discontinued operations 36 (3) (1) 1 33 Total ALLL — including discontinued operations $ 1,662 $ (77) $ (136) $ 22 $ 1,471 (a) Excludes a credit for losses on lending-related commitments of $19 million. |
Significant Macroeconomic Variables of Loan Portfolios | The following table discloses key macroeconomic variables for each loan portfolio. Segment Portfolio Key Macroeconomic Variables (a) Commercial Commercial and industrial BBB corporate bond rate (spread), GDP, industrial production, and unemployment rate Commercial real estate BBB corporate bond rate (spread), property and real estate price indices, and unemployment rate Commercial lease financing BBB corporate bond rate (spread), GDP, and unemployment rate Consumer Real estate — residential mortgage GDP, home price index, unemployment rate, and 30 year mortgage rate Home equity Home price index, unemployment rate, and 30 year mortgage rate Consumer direct Unemployment rate and U.S. household income Consumer indirect New vehicle sales, used vehicle prices, and unemployment rate Credit cards Unemployment rate and U.S. household income Discontinued operations Unemployment rate (a) Variables include all transformations and interactions with other risk drivers. Additionally, variables may have varying impacts at different points in the economic cycle. |
Financing Receivable Credit Quality Indicators | Credit Risk Profile by Creditworthiness Category and Vintage (a) As of March 31, 2022 Term Loans Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Loans Amortized Cost Basis Amortized Cost Basis by Origination Year and Internal Risk Rating Dollars in millions 2022 2021 2020 2019 2018 Prior Total Commercial and Industrial Risk Rating: Pass $ 1,952 $ 11,488 $ 4,372 $ 3,497 $ 2,515 $ 4,511 $ 22,623 $ 117 $ 51,075 Criticized (Accruing) — 34 111 116 173 294 803 23 1,554 Criticized (Nonaccruing) — 1 3 15 9 31 126 1 186 Total commercial and industrial 1,952 11,523 4,486 3,628 2,697 4,836 23,552 141 52,815 Real estate — commercial mortgage Risk Rating: Pass 1,474 4,805 1,153 2,045 994 3,185 850 59 14,565 Criticized (Accruing) — 18 20 87 71 290 33 — 519 Criticized (Nonaccruing) — — 1 1 5 29 3 1 40 Total real estate — commercial mortgage 1,474 4,823 1,174 2,133 1,070 3,504 886 60 15,124 Real estate — construction Risk Rating: Pass 144 472 602 476 209 112 1 3 2,019 Criticized (Accruing) — — 4 7 31 4 — — 46 Criticized (Nonaccruing) — — — — — — — — — Total real estate — construction 144 472 606 483 240 116 1 3 2,065 Commercial lease financing Risk Rating: Pass 159 985 693 619 262 1,131 — — 3,849 Criticized (Accruing) — — 11 23 15 15 — — 64 Criticized (Nonaccruing) — — — 1 1 1 — — 3 Total commercial lease financing 159 985 704 643 278 1,147 — 3,916 Total commercial loans $ 3,729 $ 17,803 $ 6,970 $ 6,887 $ 4,285 $ 9,603 $ 24,439 $ 204 $ 73,920 As of December 31, 2021 Term Loans Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Loans Amortized Cost Basis Amortized Cost Basis by Origination Year and Internal Risk Rating Dollars in millions 2021 2020 2019 2018 2017 Prior Total Commercial and Industrial Risk Rating: Pass $ 11,675 $ 4,941 $ 4,040 $ 2,771 $ 1,777 $ 3,108 $ 20,406 $ 72 $ 48,790 Criticized (Accruing) 64 71 115 175 200 121 784 14 1,544 Criticized (Nonaccruing) 1 1 21 10 19 15 122 2 191 Total commercial and industrial 11,740 5,013 4,176 2,956 1,996 3,244 21,312 88 50,525 Real estate — commercial mortgage Risk Rating: Pass 4,923 1,197 2,137 1,168 612 2,787 803 53 13,680 Criticized (Accruing) 15 22 70 62 109 206 35 1 520 Criticized (Nonaccruing) — 1 1 5 — 31 6 — 44 Total real estate — commercial mortgage 4,938 1,220 2,208 1,235 721 3,024 844 54 14,244 Real estate — construction Risk Rating: Pass 495 565 530 223 92 32 2 — 1,939 Criticized (Accruing) — 4 5 43 4 — 1 — 57 Criticized (Nonaccruing) — — — — — — — — — Total real estate — construction 495 569 535 266 96 32 3 — 1,996 Commercial lease financing Risk Rating: Pass 1,039 748 675 301 309 927 — — 3,999 Criticized (Accruing) — 6 29 13 13 7 — — 68 Criticized (Nonaccruing) — — 1 1 1 1 — — 4 Total commercial lease financing 1,039 754 705 315 323 935 — — 4,071 Total commercial loans $ 18,212 $ 7,556 $ 7,624 $ 4,772 $ 3,136 $ 7,235 $ 22,159 $ 142 $ 70,836 (a) Accrued intere st of $117 million a nd $113 million as of March 31, 2022, and December 31, 2021, respectively, presented in Other Assets on the Consolidated Balance Sheets, was excluded from the amortized cost basis disclosed in these tables. Consumer Credit Exposure Credit Risk Profile by FICO Score and Vintage (a) As of March 31, 2022 Term Loans Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Loans Amortized Cost Basis Amortized Cost Basis by Origination Year and FICO Score Dollars in millions 2022 2021 2020 2019 2018 Prior Total Real estate — residential mortgage FICO Score: 750 and above $ 1,351 $ 8,320 $ 2,802 $ 705 $ 74 $ 1,135 $ — $ — $ 14,387 660 to 749 437 1,235 299 140 32 302 — — 2,445 Less than 660 12 35 16 18 16 149 — — 246 No Score 50 19 — 1 1 31 1 — 103 Total real estate — residential mortgage 1,850 9,609 3,117 864 123 1,617 1 — 17,181 Home equity loans FICO Score: 750 and above 96 1,073 797 233 87 731 2,209 404 5,630 660 to 749 40 356 239 97 39 221 940 135 2,067 Less than 660 3 29 26 20 12 100 320 44 554 No Score — — 2 — — 2 3 — 7 Total home equity loans 139 1,458 1,064 350 138 1,054 3,472 583 8,258 Consumer direct loans FICO Score: 750 and above 741 1,706 1,004 456 57 131 105 — 4,200 660 to 749 220 536 262 151 39 50 203 — 1,461 Less than 660 7 53 32 25 9 13 55 — 194 No Score 22 57 34 26 14 30 211 — 394 Total consumer direct loans 990 2,352 1,332 658 119 224 574 — 6,249 Credit cards FICO Score: 750 and above — — — — — — 467 — 467 660 to 749 — — — — — — 376 — 376 Less than 660 — — — — — — 86 — 86 No Score — — — — — — 1 — 1 Total credit cards — — — — — — 930 — 930 Consumer indirect loans FICO Score: 750 and above — 3 — — — 28 — — 31 660 to 749 — — — — — 21 — — 21 Less than 660 — — — — — 10 — — 10 No Score — — — — — — — — — Total consumer indirect loans — 3 — — — 59 — — 62 Total consumer loans $ 2,979 $ 13,422 $ 5,513 $ 1,872 $ 380 $ 2,954 $ 4,977 $ 583 $ 32,680 As of December 31, 2021 Term Loans Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Loans Amortized Cost Basis Amortized Cost Basis by Origination Year and FICO Score Dollars in millions 2021 2020 2019 2018 2017 Prior Total Real estate — residential mortgage FICO Score: 750 and above $ 7,906 $ 2,909 $ 777 $ 84 $ 126 $ 1,096 $ — $ — $ 12,898 660 to 749 1,686 351 169 39 25 308 — — 2,578 Less than 660 26 14 19 16 9 142 — — 226 No Score 18 — 1 1 3 30 1 — 54 Total real estate — residential mortgage 9,636 3,274 966 140 163 1,576 1 — 15,756 Home equity loans FICO Score: 750 and above 1,051 830 251 96 128 666 2,244 423 5,689 660 to 749 394 263 111 44 40 204 1,004 143 2,203 Less than 660 27 24 20 13 13 92 333 46 568 No Score — 2 — — — 2 3 — 7 Total home equity loans 1,472 1,119 382 153 181 964 3,584 612 8,467 Consumer direct loans FICO Score: 750 and above 1,799 1,129 517 65 17 129 109 — 3,765 660 to 749 612 295 174 46 10 45 212 — 1,394 Less than 660 45 33 27 11 3 12 60 — 191 No Score 68 40 29 17 10 21 218 — 403 Total consumer direct loans 2,524 1,497 747 139 40 207 599 — 5,753 Credit cards FICO Score: 750 and above — — — — — — 500 — 500 660 to 749 — — — — — — 387 — 387 Less than 660 — — — — — — 84 — 84 No Score — — — — — — 1 — 1 Total credit cards — — — — — — 972 — 972 Consumer indirect loans FICO Score: 750 and above 5 — — — — 30 — — 35 660 to 749 — — — — — 26 — — 26 Less than 660 — — — — — 9 — — 9 No Score — — — — — — — — — Total consumer indirect loans 5 — — — — 65 — — 70 Total consumer loans $ 13,637 $ 5,890 $ 2,095 $ 432 $ 384 $ 2,812 $ 5,156 $ 612 $ 31,018 (a) Accrued intere st of $75 million and $85 million as of March 31, 2022 and December 31, 2021, respectively, presented in Other Assets on the Consolidated Balance Sheets, was excluded from the amortized cost basis disclosed in this table. |
Past Due Loans Including Current Loans | The following aging analysis of past due and current loans as of March 31, 2022, and December 31, 2021, provides further information regarding Key’s credit exposure. Aging Analysis of Loan Portfolio (a) March 31, 2022 Current 30-59 Days Past Due (b) 60-89 Days Past Due (b) 90 and Greater Days Past Due (b) Non-performing Total Past Total Loans (c) Dollars in millions LOAN TYPE Commercial and industrial $ 52,537 $ 23 $ 31 $ 38 $ 186 $ 278 $ 52,815 Commercial real estate: Commercial mortgage 15,072 4 5 3 40 52 15,124 Construction 2,064 1 — — — 1 2,065 Total commercial real estate loans 17,136 5 5 3 40 53 17,189 Commercial lease financing 3,908 4 1 — 3 8 3,916 Total commercial loans $ 73,581 $ 32 $ 37 $ 41 $ 229 $ 339 $ 73,920 Real estate — residential mortgage $ 17,098 $ 7 $ 2 $ 1 $ 73 $ 83 $ 17,181 Home equity loans 8,102 18 6 3 129 156 8,258 Consumer direct loans 6,229 8 4 4 4 20 6,249 Credit cards 914 4 3 6 3 16 930 Consumer indirect loans 60 1 — — 1 2 62 Total consumer loans $ 32,403 $ 38 $ 15 $ 14 $ 210 $ 277 $ 32,680 Total loans $ 105,984 $ 70 $ 52 $ 55 $ 439 $ 616 $ 106,600 (a) Amounts in table represent amortized cost and exclude loans held for sale. (b) Accrued inter est of $193 million p resented in Other Assets on the Consolidated Balance Sheets is excluded from the amortized cost basis disclosed in this table. (c) Net of unearned income, net of deferred fees and costs, and unamortized discounts and premiums. December 31, 2021 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 Total Loans (c) Dollars in millions LOAN TYPE Commercial and industrial $ 50,226 $ 19 $ 49 $ 40 $ 191 $ 299 $ 50,525 Commercial real estate: Commercial mortgage 14,174 10 9 7 44 70 14,244 Construction 1,978 — 17 1 — 18 1,996 Total commercial real estate loans 16,152 10 26 8 44 88 16,240 Commercial lease financing 4,061 6 — — 4 10 4,071 Total commercial loans $ 70,439 $ 35 $ 75 $ 48 $ 239 $ 397 $ 70,836 Real estate — residential mortgage $ 15,669 $ 7 $ 3 $ 5 $ 72 $ 87 $ 15,756 Home equity loans 8,299 21 6 6 135 168 8,467 Consumer direct loans 5,736 8 2 3 4 17 5,753 Credit cards 956 4 3 6 3 16 972 Consumer indirect loans 68 1 — — 1 2 70 Total consumer loans $ 30,728 $ 41 $ 14 $ 20 $ 215 $ 290 $ 31,018 Total loans $ 101,167 $ 76 $ 89 $ 68 $ 454 $ 687 $ 101,854 (a) Amounts in table represent amortized cost and exclude loans held for sale. (b) Accrued interest of $198 million presented in Other Assets on the Consolidated Balance Sheets is excluded from the amortized cost basis disclosed in this table. (c) Net of unearned income, net of deferred fees and costs, and unamortized discounts and premiums. |
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 March 31, Dollars in millions 2022 2021 Commercial loans: Extension of Maturity Date $ — $ 41 Payment or Covenant Modification/Deferment 1 10 Bankruptcy Plan Modification — — Increase in new commitment or new money — — Total $ 1 $ 51 Consumer loans: Interest rate reduction $ 1 $ 2 Other 9 4 Total $ 10 $ 6 Total TDRs $ 11 $ 57 |
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 March 31, Dollars in millions 2022 2021 Balance at beginning of the period $ 220 $ 363 Additions 11 59 Payments (12) (21) Charge-offs — (25) Balance at end of period $ 219 $ 376 |
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: March 31, 2022 December 31, 2021 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 37 $ 25 $ 14 36 $ 30 $ 14 Commercial real estate: Commercial mortgage 4 50 23 3 50 25 Total commercial real estate loans 4 50 23 3 50 25 Total commercial loans 41 75 37 39 80 39 Real estate — residential mortgage 223 27 25 220 26 24 Home equity loans 514 35 31 531 36 31 Consumer direct loans 208 2 2 207 3 2 Credit cards 332 2 2 360 2 2 Consumer indirect loans 22 2 1 23 1 1 Total consumer loans 1,299 68 61 1,341 68 60 Total nonperforming TDRs 1,340 143 98 1,380 148 99 Prior-year accruing: (a) Commercial and industrial 13 — — 11 — — Commercial real estate Commercial mortgage 1 — — 1 — — Total commercial real estate loans 1 — — 1 — — Total commercial loans 14 — — 12 — — Real estate — residential mortgage 463 41 35 455 39 33 Home equity loans 1,615 97 75 1,628 97 75 Consumer direct loans 226 4 3 236 5 3 Credit cards 599 4 2 579 4 2 Consumer indirect loans 128 14 7 139 15 8 Total consumer loans 3,031 160 122 3,037 160 121 Total prior-year accruing TDRs 3,045 160 121 3,049 160 121 Total TDRs 4,385 $ 303 $ 219 4,429 $ 308 $ 220 (a) All TDRs that were restructured prior to January 1, 2022, and January 1, 2021, are fully accruing. |
Changes in Liability for Credit Losses on Off-Balance Sheet Exposures | Changes in the liability for credit losses on off balance sheet exposures are summarized as follows: Three months ended March 31, Dollars in millions 2022 2021 Balance at beginning of period $ 160 $ 197 Provision (credit) for losses on off balance sheet exposures 6 (19) Balance at end of period $ 166 $ 178 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Assets and Liabilities Measured on Recurring Basis | The following tables present these assets and liabilities at March 31, 2022, and December 31, 2021. March 31, 2022 December 31, 2021 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Dollars in millions ASSETS MEASURED ON A RECURRING BASIS Trading account assets: U.S. Treasury, agencies and corporations $ — $ 627 $ — $ 627 $ — $ 530 $ — $ 530 States and political subdivisions — 76 — 76 — 96 — 96 Other mortgage-backed securities — 127 — 127 — 44 — 44 Other securities — 14 — 14 — 13 — 13 Total trading account securities — 844 — 844 — 683 — 683 Commercial loans — 4 — 4 — 18 — 18 Total trading account assets — 848 — 848 — 701 — 701 Securities available for sale: U.S. Treasury, agencies and corporations — 9,638 — 9,638 — 9,472 — 9,472 States and political subdivisions — — — — — — — — Agency residential collateralized mortgage obligations — 20,639 — 20,639 — 21,119 — 21,119 Agency residential mortgage-backed securities — 4,744 — 4,744 — 5,122 — 5,122 Agency commercial mortgage-backed securities — 8,659 — 8,659 — 9,651 — 9,651 Other securities — 1 — 1 — — — — Total securities available for sale — 43,681 — 43,681 — 45,364 — 45,364 Other investments: Principal investments: Direct — — 1 1 — — 1 1 Indirect (measured at NAV) (a) — — — 44 — — — 45 Total principal investments — — 1 45 — — 1 46 Equity investments: Direct 6 — 7 13 24 — 9 33 Direct (measured at NAV) (a) — — — 28 — — — 21 Indirect (measured at NAV) (a) — — — 4 — — — 5 Total equity investments 6 — 7 45 24 — 9 59 Total other investments 6 — 8 90 24 — 10 105 Loans, net of unearned income (residential) — — 11 11 — — 11 11 Loans held for sale (residential) — 114 — 114 — 281 — 281 Derivative assets: Interest rate — 288 43 331 — 774 33 807 Foreign exchange 92 10 — 102 $ 71 10 — 81 Commodity — 2,613 — 2,613 — 1,330 — 1,330 Credit — — 1 1 — — 1 1 Other — 21 1 22 — 22 5 27 Derivative assets 92 2,932 45 3,069 71 2,136 39 2,246 Netting adjustments (b) — — — (330) — — — (284) Total derivative assets 92 2,932 45 2,739 71 2,136 39 1,962 Total assets on a recurring basis at fair value $ 98 $ 47,575 $ 64 $ 47,483 $ 95 $ 48,482 $ 60 $ 48,424 LIABILITIES MEASURED ON A RECURRING BASIS Bank notes and other short-term borrowings: Short positions $ 69 $ 653 $ — $ 722 $ 75 $ 513 $ — $ 588 Derivative liabilities: Interest rate — 562 — 562 — 253 — 253 Foreign exchange 85 11 — 96 66 10 — 76 Commodity — 2,613 — 2,613 — 1,335 — 1,335 Credit — — 6 6 — 5 7 12 Other — 7 3 10 — 11 — 11 Derivative liabilities 85 3,193 9 3,287 66 1,614 7 1,687 Netting adjustments (b) — — — (2,689) — — — (1,526) Total derivative liabilities 85 3,193 9 598 66 1,614 7 161 Total liabilities on a recurring basis at fair value $ 154 $ 3,846 $ 9 $ 1,320 $ 141 $ 2,127 $ 7 $ 749 (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 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 March 31, 2022, as well as financial support provided for the three months ended March 31, 2022, and March 31, 2021. Financial support provided Three months ended March 31, March 31, 2022 2022 2021 Dollars in millions Fair Value Unfunded Commitments Funded Commitments Funded Other Funded Commitments Funded Other INVESTMENT TYPE Direct investments $ 1 $ — $ — $ — $ — $ — Indirect investments (measured at NAV) (a) 44 11 — — 2 — Total $ 45 $ 11 $ — $ — $ 2 $ — (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 March 31, 2022, 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 months ended March 31, 2022, and March 31, 2021. Dollars 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 Three months ended March 31, 2022 Other investments Principal investments Direct (a) $ 1 $ — $ — $ — $ — $ — $ — $ — $ — $ 1 $ — Equity investments Direct (a) 9 — (2) — — — — — — 7 (2) Loans, net of unearned income (residential) 11 — — — — — — — — 11 — Derivative instruments (b) Interest rate 33 — (11) (c) 1 — — — 29 (d) (9) (d) 43 — Credit (6) — 1 (c) — — — — — — (5) — Other (e) 5 — — (c) — — — (7) — — (2) — Dollars 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 Three months ended March 31, 2021 Securities available for sale Other securities $ 13 $ 9 $ — $ — $ — $ — $ — $ — $ — $ 22 $ — Other investments Principal investments Direct (a) 1 — — — — — — — — 1 — Equity investments Direct (a) 13 — (1) — — — — — (3) 9 (1) Loans held for sale (residential) — — — — (1) — 1 — — — — Loans, net of unearned income (residential) 11 — — — (1) — 1 — — 11 — Derivative instruments (b) Interest rate 56 — (22) (c) — (4) — — 7 (d) (7) (d) 30 — Credit (10) — 5 (c) — — — — (5) — Other (e) 32 — (4) (c) — — — 22 — — 6 — (a) Realized and unrealized gains and losses on principal investments and other equity 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 instruments 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 March 31, 2022, and December 31, 2021: March 31, 2022 December 31, 2021 Dollars in millions Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total ASSETS MEASURED ON A NONRECURRING BASIS Collateral-dependent loans $ — $ — $ 37 $ 37 $ — $ — $ 28 $ 28 Loans held for sale — — 51 51 — — — — Accrued income and other assets — — 12 12 — — 80 80 Total assets on a nonrecurring basis at fair value $ — $ — $ 100 $ 100 $ — $ — $ 108 $ 108 |
Quantitative Information about Level 3 Fair Value Measurements | The range and weighted-average of the significant unobservable inputs used to fair value our material Level 3 recurring and nonrecurring assets at March 31, 2022, and December 31, 2021, along with the valuation techniques used, are shown in the following table: Level 3 Asset (Liability) Valuation Technique Significant Unobservable Input Range (Weighted-Average) (a), (b) Dollars in millions March 31, 2022 December 31, 2021 March 31, 2022 December 31, 2021 Recurring Loans, net of unearned income (residential) $ 11 $ 11 Market comparable pricing Comparability factor 64.50 - 97.88% (92.33%) 64.50-97.30% (94.24%) Derivative instruments: Interest rate 43 33 Discounted cash flows Probability of default .02 - 100% (11.70%) .02 - 100% (8.88%) Loss given default 0 - 1 (.500) 0 - 1 (.500) Insignificant level 3 assets, net of liabilities (c) 1 9 Nonrecurring Collateral-dependent loans 37 28 Fair value of collateral Discount rate 0 - 65.00% (19.00%) 0 - 10.00% (8.00%) Loans held for sale 51 — Market comparable pricing Comparability factor N/M N/A Accrued income and other assets: OREO and other Level 3 assets (d) 11 13 Appraised value Appraised value N/M N/M (a) The weighted average of significant unobservable inputs is calculated using a weighting relative to fair value. (b) For significant unobservable inputs with no range, a single figure is reported to denote the single quantitative factor used. (c) Represents the aggregate amount of Level 3 assets and liabilities measured at fair value on a recurring basis that are individually and in the aggregate insignificant. The amount includes certain equity investments and certain financial derivative assets and liabilities. (d) Excludes $1 million and $67 million pertaining to servicing assets at March 31, 2022, and December 31, 2021, respectively. Refer to Note 8 (“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 March 31, 2022, and December 31, 2021, are shown in the following tables. Assets and liabilities are further arranged by measurement category. March 31, 2022 Fair Value Dollars 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) $ 848 $ — $ 848 $ — $ — $ — $ 848 Other investments (b) 722 6 — 639 77 — 722 Loans, net of unearned income (residential) (d) 11 — — 11 — — 11 Loans held for sale (residential) (b) 114 — 114 — — — 114 Derivative assets - trading (b) 2,640 92 2,937 44 — (433) (f) 2,640 Fair value - OCI Securities available for sale (b) 43,681 — 43,681 — — — 43,681 Derivative assets - hedging (b)(g) 99 — (4) — — 103 (f) 99 Amortized cost Held-to-maturity securities (c) 6,871 — 6,687 — — — 6,687 Loans, net of unearned income (d) 105,484 — — 104,242 — — 104,242 Loans held for sale (b) 1,056 — — 1,056 — — 1,056 Other Cash and other short-term investments (a) 4,565 4,565 — — — — 4,565 LIABILITIES (by measurement category) Fair value - net income Derivative liabilities - trading (b) $ 609 $ 85 $ 3,242 $ 9 $ — $ (2,727) (f) $ 609 Fair value - OCI Derivative liabilities - hedging (b)(g) (11) — (49) — — 38 (f) (11) Amortized cost Time deposits (e) 3,570 — 3,576 — — — 3,576 Short-term borrowings (a) 2,821 69 2,752 — — — 2,821 Long-term debt (e) 10,814 10,146 685 — — — 10,831 Other Deposits with no stated maturity (a) 145,093 — 145,093 — — — 145,093 December 31, 2021 Fair Value Dollars 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) $ 701 $ — $ 701 $ — $ — $ — $ 701 Other investments (b) 639 24 — 543 72 — 639 Loans, net of unearned income (residential) (d) 11 — — 11 — — 11 Loans held for sale (residential) (b) 281 — 281 — — — 281 Derivative assets - trading (b) 1,887 $ 71 2,096 40 — (320) (f) 1,887 Fair value - OCI Securities available for sale (b) 45,364 — 45,364 — — — 45,364 Derivative assets - hedging (b)(g) 75 — 39 — — 36 (f) 75 Amortized cost Held-to-maturity securities (c) 7,539 — 7,665 — — — 7,665 Loans, net of unearned income (d) 100,782 — — 100,428 — — 100,428 Loans held for sale (b) 2,448 — — 2,448 — — 2,448 Other Short-term investments - U.S. Treasury Bills (b) — — — — — — — Cash and other short-term investments (a) 11,923 11,923 — — — — 11,923 LIABILITIES (by measurement category) Fair value - net income Derivative liabilities - trading (b) $ 157 $ 66 $ 1,610 $ 7 $ — $ (1,526) (f) $ 157 Fair value - OCI Derivative liabilities - hedging (b)(g) 4 — 4 — — — (f) 4 Amortized cost Time deposits (e) 3,858 — 3,866 — — — 3,866 Short-term borrowings (a) 761 75 686 — — — 761 Long-term debt (e) 12,042 11,813 705 — — — 12,518 Other Deposits with no stated maturity (a) 148,714 — 148,714 — — — 148,714 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” within our 2021 Form 10-K Note 6 (“Fair Value Measurements”). 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 classified as Level 2 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 (“Summary of Significant Accounting Policies”) under the heading “Derivatives and Hedging” beginning on page 113 of our 2021 Form 10-K. |
Securities (Tables)
Securities (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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. March 31, 2022 December 31, 2021 Dollars in millions Amortized Cost (a) Gross Unrealized Gains Gross Unrealized Losses Fair Value Amortized Cost (b) Gross Unrealized Gains Gross Unrealized Losses Fair Value SECURITIES AVAILABLE FOR SALE U.S. Treasury, agencies, and corporations $ 10,054 $ — $ 416 $ 9,638 $ 9,573 $ — $ 101 $ 9,472 Agency residential collateralized mortgage obligations 22,255 3 1,619 20,639 21,430 99 410 21,119 Agency residential mortgage-backed securities 5,075 9 340 4,744 5,137 37 52 5,122 Agency commercial mortgage-backed securities 9,172 27 540 8,659 9,753 188 290 9,651 Other securities 1 — — 1 — — — — Total securities available for sale $ 46,557 $ 39 $ 2,915 $ 43,681 $ 45,893 $ 324 $ 853 $ 45,364 HELD-TO-MATURITY SECURITIES Agency residential collateralized mortgage obligations $ 1,983 $ — $ 67 $ 1,916 $ 2,196 $ 33 $ — $ 2,229 Agency residential mortgage-backed securities 152 — 3 150 164 6 — 170 Agency commercial mortgage-backed securities 2,549 7 32 2,524 2,678 118 — 2,796 Asset-backed securities (c) 2,172 — 89 2,082 2,485 — 31 2,454 Other securities 15 — — 15 16 — — 16 Total held-to-maturity securities $ 6,871 $ 7 191 $ 6,687 $ 7,539 $ 157 $ 31 $ 7,665 (a) Amortized cost amounts exclude accrued interes t receivable which is recorded within Other Assets on the balance sheet. At March 31, 2022, accrued interest receivable on available for sale securities and held-to-maturity securities totaled $64 million and $14 million, respectively. (b) Amortized cost amounts exclude accrued interes t receivable which is recorded within Other Assets on the balance sheet. At December 31, 2021, accrued interest receivable on available for sale securities and held-to-maturity securities totaled $59 million and $15 million , respectively. (c) Includes $2.2 billion of securities as of March 31, 2022, and $2.5 billion of securities as of December 31, 2021, related to the purchase of senior notes from a securitization collateralized by sold indirect auto loans. |
Schedule of Unrealized Loss on Investments | The following table summarizes securities in an unrealized loss position for which an allowance for credit losses has not been recorded as of March 31, 2022, and December 31, 2021. Duration of Unrealized Loss Position Less than 12 Months 12 Months or Longer Total Dollars in millions Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses March 31, 2022 Securities available for sale: U.S Treasury, agencies, and corporations $ 8,800 $ 394 $ 589 $ 22 $ 9,389 $ 416 Agency residential collateralized mortgage obligations 16,751 1,138 3,460 480 20,211 1,618 Agency residential mortgage-backed securities 3,196 220 1,107 120 4,303 340 Agency commercial mortgage-backed securities 1,973 58 4,808 482 6,781 540 Held-to-maturity securities: U.S Treasury, Agencies, and Corporations — — — — — — States and political subdivisions — — — — — — Agency residential collateralized mortgage obligations 1,905 67 — — 1,905 67 Agency residential mortgage-backed securities 150 3 (a) — — 150 3 Agency commercial mortgage-backed securities 1,393 32 (a) — — 1,393 32 Asset-backed securities 2,081 89 1 — (a) 2,082 89 Other securities 7 — (a) 3 — (a) 10 — Total securities in an unrealized loss position $ 36,256 $ 2,001 $ 9,968 $ 1,104 $ 46,224 $ 3,105 December 31, 2021 Securities available for sale: U.S. Treasury, agencies, and corporations $ 9,078 $ 98 $ 243 $ 3 $ 9,321 $ 101 Agency residential collateralized mortgage obligations 12,603 315 1,255 95 13,858 410 Agency residential mortgage-backed securities 3,793 49 178 3 3,971 52 Agency commercial mortgage-backed securities 1,645 75 3,834 215 5,479 290 Held-to-maturity securities: Agency residential collateralized mortgage obligations 96 — (b) — — 96 — Asset-backed securities 2,450 31 1 — (b) 2,451 31 Other securities 15 — (b) — — 15 — Total securities in an unrealized loss position $ 29,680 $ 568 $ 5,511 $ 316 $ 35,191 $ 884 (a) At March 31, 2022 , gross unrealized losses totaled less than $1 million fo r other securities held-to-maturity with a loss duration of less than 12 months and asset-backed securities and other securities held-to-maturity with a loss duration of 12 months or longer. (b) At December 31, 2021, gross unrealized losses totaled less than $1 million for other securities held-to-maturity and agency residential collateralized mortgage obligations held-to-maturity with a loss duration of less than 12 months. At December 31, 2021, gross unrealized losses totaled less than $1 million for asset backed securities held-to-maturity with a loss duration greater than 12 months or longer. |
Securities by Maturity | The following table shows our securities by remaining maturity. CMOs, other mortgage-backed securities, and asset-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. March 31, 2022 Securities Available for Sale Held to Maturity Securities Dollars in millions Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ 275 $ 277 $ 39 $ 40 Due after one through five years 17,642 16,993 4,861 4,717 Due after five through ten years 24,290 22,448 1,971 1,930 Due after ten years 4,350 3,963 — — Total $ 46,557 $ 43,681 $ 6,871 $ 6,687 |
Derivatives and Hedging Activ_2
Derivatives and Hedging Activities (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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 March 31, 2022, and December 31, 2021. 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: March 31, 2022 December 31, 2021 Fair Value (a) Fair Value (a) Dollars in millions Notional Amount Derivative Assets Derivative Liabilities Notional Amount Derivative Assets Derivative Liabilities Derivatives designated as hedging instruments: Interest rate $ 35,791 $ (4) $ (49) $ 38,654 $ 39 $ 4 Derivatives not designated as hedging instruments: Interest rate 75,463 335 611 72,088 768 249 Foreign exchange 9,125 102 96 9,073 81 76 Commodity 17,643 2,613 2,613 14,151 1,330 1,335 Credit 204 1 6 465 1 12 Other (a) 2,813 22 10 3,330 27 11 Total 105,248 3,073 3,336 99,107 2,207 1,683 Netting adjustments (b) — (330) (2,689) — (284) (1,526) Net derivatives in the balance sheet 141,039 2,739 598 137,761 1,962 161 Other collateral (c) — — — — (1) — Net derivative amounts $ 141,039 $ 2,739 $ 598 $ 137,761 $ 1,961 $ 161 (a) We take into account bilateral collateral and master netting agreements that allow us to settle all derivative contracts held with a single counterparty on a net basis, and to offset the net derivative position with the related cash collateral when recognizing derivative assets and liabilities. As a result, we could have derivative contracts with negative fair values included in derivative assets and contracts with positive fair values included in derivative liabilities. (b) 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. (c) 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. (d) 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 March 31, 2022, and December 31, 2021, related to cumulative basis adjustments for fair value hedges. March 31, 2022 Dollars 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 $ 7,454 $ (102) Interest rate contracts Securities Available for Sale (c) 2,805 119 December 31, 2021 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 $ 7,553 $ 138 Interest rate contracts Securities Available for Sale (c) 6,280 134 (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 adjustm ent by $7 million and $7 million at March 31, 2022, and December 31, 2021, respectively, (c) These amounts are designed as fair value hedges under the last-of-layer method. The carrying amount represents the amortized costs basis of the prepayable financial assets used to designate hedging relationships in which the hedged item is the l |
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-month periods ended March 31, 2022, and March 31, 2021. Location and amount of net gains (losses) recognized in income on fair value and cash flow hedging relationships Dollars in millions Interest expense – long-term debt Interest income – loans Interest Income - securities Investment banking and debt placement fees Three months ended March 31, 2022 Total amounts presented in the consolidated statement of income $ 49 $ 837 $ 173 $ 163 Net gains (losses) on fair value hedging relationships Interest contracts Recognized on hedged items $ 240 $ — $ (276) $ — Recognized on derivatives designated as hedging instruments (216) — 282 — Net income (expense) recognized on fair value hedges $ 24 $ — $ 6 $ — Net gain (loss) on cash flow hedging relationships Interest contracts Realized gains (losses) (pre-tax) reclassified from AOCI into net income $ (1) $ 64 $ — $ 2 Net income (expense) recognized on cash flow hedges $ (1) $ 64 $ — $ 2 Three months ended March 31, 2021 Total amounts presented in the consolidated statement of income $ 60 $ 889 $ 130 $ 162 Net gains (losses) on fair value hedging relationships Interest contracts Recognized on hedged items $ 204 $ — $ (266) $ — Recognized on derivatives designated as hedging instruments (166) — 267 — Net income (expense) recognized on fair value hedges $ 38 $ — $ 1 $ — Net gain (loss) on cash flow hedging relationships Interest contracts Realized gains (losses) (pre-tax) reclassified from AOCI into net income $ (1) $ 89 $ — $ 1 Net income (expense) recognized on cash flow hedges $ (1) $ 89 $ — $ 1 |
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 hedges for the three-month periods ended March 31, 2022, and March 31, 2021, 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. Dollars 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 March 31, 2022 Cash Flow Hedges Interest rate $ (670) Interest income — Loans $ 64 Interest rate 3 Interest expense — Long-term debt (1) Interest rate 9 Investment banking and debt placement fees 2 Total $ (658) $ 65 Three months ended March 31, 2021 Cash Flow Hedges Interest rate $ (203) Interest income — Loans $ 89 Interest rate 3 Interest expense — Long-term debt (1) Interest rate 10 Investment banking and debt placement fees 1 Total $ (190) $ 89 |
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-month periods ended March 31, 2022, and March 31, 2021, and where they are recorded on the income statement. Three months ended March 31, 2022 Three months ended March 31, 2021 Dollars 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 $ 13 $ — $ 9 $ 22 $ 6 $ — $ — $ 6 Foreign exchange 13 — — 13 11 — — 11 Commodity 5 — — 5 4 — — 4 Credit 2 — (10) (8) 5 — (9) (4) Other — (4) 7 3 — 1 (22) (21) Total net gains (losses) $ 33 $ (4) $ 6 $ 35 $ 26 $ 1 $ (31) $ (4) |
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. Dollars in millions March 31, 2022 December 31, 2021 Interest rate $ 241 $ 696 Foreign exchange 42 31 Commodity 2,285 1,108 Credit — — Other 22 27 Derivative assets before collateral 2,590 1,862 Plus(Less): Related collateral 149 100 Total derivative assets $ 2,739 $ 1,962 |
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 March 31, 2022, and December 31, 2021. The notional amount represents the amount that the seller could be required to pay. The payment/performance risk shown in the table represents a weighted average of the default probabilities for all reference entities in the respective portfolios. These default probabilities are implied from observed credit indices in the credit default swap market, which are mapped to reference entities based on Key’s internal risk rating. March 31, 2022 December 31, 2021 Dollars in millions Notional Amount Average Term (Years) Payment / Performance Risk Notional Amount Average Term (Years) Payment / Performance Risk Other $ 75 15.08 4.02 % $ 149 13.86 3.15 % Total credit derivatives sold $ 75 — — $ 149 — — |
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 March 31, 2022, and December 31, 2021. The additional collateral amounts were calculated based on scenarios under which KeyBank’s ratings are downgraded one, two, or three ratings as of March 31, 2022, and December 31, 2021, and take into account all collateral already posted. A similar calculation was performed for Ke yCorp, and no addition al collateral would have been required as of March 31, 2022, and December 31, 2021. 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. March 31, 2022 December 31, 2021 Dollars 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 $ 3 $ 3 Two rating downgrades 2 2 3 3 Three rating downgrades 2 2 3 3 |
Mortgage Servicing Assets (Tabl
Mortgage Servicing Assets (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Servicing Asset [Abstract] | |
Changes in Carrying Amount of Mortgage Servicing Assets | Changes in the carrying amount of commercial mortgage servicing assets are summarized as follows: Three months ended March 31, Dollars in millions 2022 2021 Balance at beginning of period $ 634 $ 578 Servicing retained from loan sales 30 29 Purchases 11 7 Amortization (31) (29) Temporary (impairments) recoveries — 3 Balance at end of period $ 644 $ 588 Fair value at end of period $ 846 $ 682 Changes in the carrying amount of residential mortgage servicing assets are summarized as follows: Three months ended March 31, Dollars in millions 2022 2021 Balance at beginning of period $ 93 $ 58 Servicing retained from loan sales 11 11 Purchases — — Amortization (4) (5) Temporary (impairments) recoveries 1 8 Balance at end of period $ 101 $ 72 Fair value at end of period $ 116 $ 77 |
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 March 31, 2022, and March 31, 2021, along with the valuation techniques, are shown in the following table: dollars in millions March 31, 2022 March 31, 2021 Valuation Technique Significant Unobservable Input Range Weighted Average Range Weighted Average Discounted cash flow Expected defaults 1.00 % 2.00 % 1.12 % 1.01 % 2.00 % 1.18 % Residual cash flows discount rate 8.34 % 10.32 % 9.52 % 7.42 % 10.59 % 9.20 % Escrow earn rate 2.06 % 2.49 % 2.31 % 0.94 % 1.22 % 1.10 % Loan assumption rate — % 1.64 % 1.29 % — % 1.75 % 1.44 % March 31, 2022 March 31, 2021 Valuation Technique Significant Unobservable Input Range Weighted Average Range Weighted Average Discounted cash flow Prepayment speed 5.84 % 59.51 % 8.82 % 10.55 % 50.81 % 12.82 % Discount rate 7.50 % 8.52 % 7.53 % 7.51 % 8.63 % 7.55 % Servicing cost $ 62.00 $ 8,075 $ 67.46 $ 62.00 $ 4,375 $ 72.48 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Operating Lease, Lease Income | The components of equipment leasing income are summarized in the table below: Three months ended March 31, Dollars in millions 2022 2021 Sales-type and direct financing leases Interest income on lease receivable $ 16 $ 23 Interest income related to accretion of unguaranteed residual asset 4 2 Total sales-type and direct financing lease income 20 25 Operating leases Operating lease income related to lease payments 29 32 Other operating leasing gains 4 6 Total operating lease income and other leasing gains 32 38 Total lease income $ 52 $ 63 |
Sales-type Lease, Lease Income | The components of equipment leasing income are summarized in the table below: Three months ended March 31, Dollars in millions 2022 2021 Sales-type and direct financing leases Interest income on lease receivable $ 16 $ 23 Interest income related to accretion of unguaranteed residual asset 4 2 Total sales-type and direct financing lease income 20 25 Operating leases Operating lease income related to lease payments 29 32 Other operating leasing gains 4 6 Total operating lease income and other leasing gains 32 38 Total lease income $ 52 $ 63 |
Direct Financing Lease, Lease Income | The components of equipment leasing income are summarized in the table below: Three months ended March 31, Dollars in millions 2022 2021 Sales-type and direct financing leases Interest income on lease receivable $ 16 $ 23 Interest income related to accretion of unguaranteed residual asset 4 2 Total sales-type and direct financing lease income 20 25 Operating leases Operating lease income related to lease payments 29 32 Other operating leasing gains 4 6 Total operating lease income and other leasing gains 32 38 Total lease income $ 52 $ 63 |
Goodwill (Tables)
Goodwill (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Changes in the carrying amount of goodwill by reporting segment are presented in the following table: Dollars in millions Consumer Bank Commercial Bank Total BALANCE AT MARCH 31, 2021 $ 1,761 $ 912 $ 2,673 XUP acquisition — 20 20 BALANCE AT BALANCE AT DECEMBER 31, 2021 $ 1,761 $ 932 $ 2,693 XUP acquisition measurement period adjustment — 1 1 BALANCE AT MARCH 31, 2022 $ 1,761 $ 933 $ 2,694 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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 March 31, 2022, and December 31, 2021. 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 13 (“Variable Interest Entities”) beginning on page 153 of our 2021 Form 10-K. Unconsolidated VIEs Dollars in millions Total Assets Total Liabilities Maximum Exposure to Loss March 31, 2022 LIHTC investments $ 7,816 $ 3,265 $ 2,005 December 31, 2021 LIHTC investments $ 7,839 $ 3,252 $ 1,985 Unconsolidated VIEs Dollars in millions Total Assets Total Liabilities Maximum Exposure to Loss March 31, 2022 Indirect investments $ 8,277 $ 232 $ 55 December 31, 2021 Indirect investments $ 8,437 $ 178 $ 57 Other unconsolidated VIEs Dollars in millions Total Assets Total Liabilities March 31, 2022 Other unconsolidated VIEs $ 2,523 $ 1 December 31, 2021 Other unconsolidated VIEs $ 2,827 $ 1 |
Securities Financing Activiti_2
Securities Financing Activities (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Banking and Thrift, Other Disclosures [Abstract] | |
Summarized Securities Financing Agreements | The following table summarizes our securities financing agreements at March 31, 2022, and December 31, 2021: March 31, 2022 December 31, 2021 Dollars 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 $ 4 $ (4) $ — — $ 11 $ (6) $ (5) — Securities borrowed 500 — (500) — 500 — (500) — Total $ 504 $ (4) $ (500) — $ 511 $ (6) $ (505) — Offsetting of financial liabilities: Repurchase agreements (c) $ 598 $ (4) $ (594) — $ 173 $ (6) $ (167) — Total $ 598 $ (4) $ (594) — $ 173 $ (6) $ (167) — (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) | 3 Months Ended |
Mar. 31, 2022 | |
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 18 (“Employee Benefits”) beginning on page 161 of our 2021 Form 10-K. Three months ended March 31, Dollars in millions 2022 2021 Interest cost on PBO $ 7 $ 6 Expected return on plan assets (7) (7) Amortization of losses 4 5 Settlement loss — — Net pension cost $ 4 $ 4 |
Trust Preferred Securities Is_2
Trust Preferred Securities Issued by Unconsolidated Subsidiaries (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Banking and Thrift, Other Disclosures [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 March 31, 2022 KeyCorp Capital I $ 156 $ 6 $ 162 0.954 % 2028 KeyCorp Capital II 126 4 130 6.875 2029 KeyCorp Capital III 97 4 101 7.750 2029 HNC Statutory Trust III 20 1 21 1.880 2035 Willow Grove Statutory Trust I 20 1 21 1.579 2036 HNC Statutory Trust IV 17 1 18 2.136 2037 Westbank Capital Trust II 8 — 8 3.118 2034 Westbank Capital Trust III 8 — 8 3.118 2034 Total $ 452 $ 17 $ 469 4.251 % — December 31, 2021 $ 466 $ 17 $ 483 4.271 % — (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 $38 million at March 31, 2022, and $52 million at December 31, 2021. 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 $38 million at March 31, 2022, and $52 million at December 31, 2021. 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) | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Guarantees | The following table shows the types of guarantees that we had outstanding at March 31, 2022. 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 “Contingencies and Guarantees” beginning on page 115 of our 2021 Form 10-K. March 31, 2022 Maximum Potential Undiscounted Future Payments Liability Recorded Dollars in millions Financial guarantees: Standby letters of credit $ 3,722 $ 85 Recourse agreement with FNMA 6,570 26 Residential mortgage reserve 3,221 15 Written put options (a) 3,836 125 Total $ 17,349 $ 251 (a) The maximum potential undiscounted future payments represent notional amounts of derivatives qualifying as guarantees. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Changes in AOCI | Our changes in AOCI for the three months ended March 31, 2022, and March 31, 2021, are as follows: Dollars in millions Unrealized gains (losses) on securities available for sale Unrealized gains (losses) on derivative financial instruments Net pension and postretirement benefit costs Total Balance at December 31, 2021 $ (403) $ 88 $ (271) $ (586) Other comprehensive income before reclassification, net of income taxes (1,784) (511) (1) (2,296) Amounts reclassified from AOCI, net of income taxes (a) — (50) 3 (47) Net current-period other comprehensive income, net of income taxes (1,784) (561) 2 (2,343) Balance at March 31, 2022 $ (2,187) $ (473) $ (269) $ (2,929) Balance at December 31, 2020 $ 567 $ 476 $ (305) $ 738 Other comprehensive income before reclassification, net of income taxes (628) 58 (1) (571) Amounts reclassified from AOCI, net of income taxes (a) — (68) 4 (64) Net current-period other comprehensive income, net of income taxes (628) (10) 3 (635) Balance at March 31, 2021 $ (61) $ 466 $ (302) $ 103 (a) See table below for details about these reclassifications. |
Reclassifications Out of AOCI | Our reclassifications out of AOCI for the three months ended March 31, 2022, and March 31, 2021, are as follows: Three months ended March 31, Affected Line Item in the Consolidated Statement of Income Dollars in millions 2022 2021 Unrealized gains (losses) on derivative financial instruments Interest rate $ 64 $ 89 Interest income — Loans Interest rate (1) (1) Interest expense — Long-term debt Interest rate 2 1 Investment banking and debt placement fees 65 89 Income (loss) from continuing operations before income taxes 15 21 Income taxes $ 50 $ 68 Income (loss) from continuing operations Net pension and postretirement benefit costs Amortization of losses $ (4) $ (5) Other expense (4) (5) Income (loss) from continuing operations before income taxes (1) (1) Income taxes $ (3) $ (4) Income (loss) from continuing operations |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Schedule of Stockholders Equity | The following table summarizes our preferred stock at March 31, 2022. 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 First quarter 2022 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 .351563 |
Business Segment Reporting (Tab
Business Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Financial Information of Business Groups | The table below shows selected financial data for our business segments for the three-month periods ended March 31, 2022, and March 31, 2021. Capital is assigned to each business segment based on a combination of regulatory and economic equity. Three months ended March 31, Consumer Bank Commercial Bank Other Total Key Dollars in millions 2022 2021 2022 2021 2022 2021 2022 2021 SUMMARY OF OPERATIONS Net interest income (TE) $ 543 $ 607 $ 415 $ 411 $ 62 $ (6) $ 1,020 $ 1,012 Noninterest income 256 257 395 447 25 34 676 738 Total revenue (TE) (a) 799 864 810 858 87 28 1,696 1,750 Provision for credit losses 43 (23) 41 (67) (1) (3) 83 (93) Depreciation and amortization expense 21 18 31 34 18 23 70 75 Other noninterest expense 642 583 386 409 (28) 4 1,000 996 Income (loss) from continuing operations before income taxes (TE) 93 286 352 482 98 4 543 772 Allocated income taxes and TE adjustments 23 69 69 99 4 (14) 96 154 Income (loss) from continuing operations 70 217 283 383 94 18 447 618 Income (loss) from discontinued operations, net of taxes — — — — 1 4 1 4 Net income (loss) 70 217 283 383 95 22 448 622 Less: Net income (loss) attributable to noncontrolling interests — — — — — — — — Net income (loss) attributable to Key $ 70 $ 217 $ 283 $ 383 $ 95 $ 22 $ 448 $ 622 AVERAGE BALANCES (b) Loans and leases $ 38,637 $ 39,249 $ 64,701 $ 61,221 $ 424 $ 258 $ 103,762 $ 100,728 Total assets (a) 41,814 42,476 74,860 70,448 65,915 59,309 182,589 172,233 Deposits 91,468 85,033 57,289 51,894 1,406 813 150,163 137,740 OTHER FINANCIAL DATA Net loan charge-offs (b) $ 22 $ 36 $ 11 $ 78 $ — $ — $ 33 $ 114 Return on average allocated equity (b) 7.91 % 25.74 % 13.21 % 17.41 % 8.47 % 1.35 % 10.80 % 14.11 % Return on average allocated equity 7.91 25.74 13.21 17.41 8.56 1.64 10.83 14.20 Average full-time equivalent employees (c) 7,899 8,284 2,402 2,258 6,809 6,544 17,110 17,086 (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) | 3 Months Ended |
Mar. 31, 2022 | |
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-month periods ended March 31, 2022, and March 31, 2021. 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. Three months ended March 31, 2022 Three months ended March 31, 2021 Dollars in millions Consumer Bank Commercial Bank Total Contract Revenue Consumer Bank Commercial Bank Total Contract Revenue NONINTEREST INCOME Trust and investment services income $ 106 $ 18 $ 124 $ 101 $ 18 $ 119 Investment banking and debt placement fees — 109 109 — 79 79 Services charges on deposit accounts 55 36 91 39 34 73 Cards and payments income 42 36 78 43 61 104 Other noninterest income 2 — 2 3 1 4 Total revenue from contracts with customers $ 205 $ 199 $ 404 $ 186 $ 193 $ 379 Other noninterest income (a) $ 247 $ 325 Noninterest income from Other (b) 25 34 Total noninterest income $ 676 $ 738 (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 20 (“Business Segment Reporting”) for more information. |
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 | ||
Mar. 31, 2022 | Mar. 31, 2021 | ||
EARNINGS | |||
Income (loss) from continuing operations | $ 447 | $ 618 | |
Less: Net income (loss) attributable to noncontrolling interests | 0 | 0 | |
Income (loss) from continuing operations attributable to Key | 447 | 618 | |
Less: Dividends on Preferred Stock | 27 | 27 | |
Income (loss) from continuing operations attributable to Key common shareholders | 420 | 591 | |
Income (loss) from discontinued operations, net of taxes | 1 | 4 | |
Net income (loss) attributable to Key common shareholders | $ 421 | $ 595 | |
WEIGHTED-AVERAGE COMMON SHARES | |||
Weighted-average common shares outstanding (000) (in shares) | 922,941 | 964,878 | |
Effect of common share options and other stock awards (in shares) | 10,692 | 9,419 | |
Weighted-average common shares and potential common shares outstanding (in shares) | [1] | 933,634 | 974,297 |
EARNINGS PER COMMON SHARE | |||
Income (loss) from continuing operations attributable to Key common shareholders (in usd per share) | $ 0.45 | $ 0.61 | |
Income (loss) from discontinued operations, net of taxes (in usd per share) | 0 | 0 | |
Net income (loss) attributable to Key common shareholders (in usd per share) | [2] | 0.46 | 0.62 |
Income (loss) from continuing operations attributable to Key common shareholders - assuming dilution (in usd per share) | 0.45 | 0.61 | |
Income (loss) from discontinued operations, net of taxes - assuming dilution (in usd per share) | 0 | 0 | |
Net income (loss) attributable to Key common shareholders (in usd per share) | [2] | $ 0.45 | $ 0.61 |
[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 | Mar. 31, 2022 | Dec. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 106,600 | $ 101,854 |
Accrued interest | 193 | 198 |
Commercial Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 73,920 | 70,836 |
Accrued interest | 117 | 113 |
Consumer Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 32,680 | 31,018 |
Accrued interest | 75 | 85 |
Commercial and Industrial | Commercial Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 52,815 | 50,525 |
Commercial mortgage | Commercial Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 15,124 | 14,244 |
Construction | Commercial Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 2,065 | 1,996 |
Commercial real estate loans | Commercial Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 17,189 | 16,240 |
Commercial lease financing | Commercial Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 3,916 | 4,071 |
Real estate — residential mortgage | Consumer Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 17,181 | 15,756 |
Home equity loans | Consumer Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 8,258 | 8,467 |
Residential - Prime Loans | Consumer Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 25,439 | 24,223 |
Consumer direct loans | Consumer Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 6,249 | 5,753 |
Credit cards | Consumer Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 930 | 972 |
Consumer indirect loans | Consumer Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 62 | 70 |
Commercial credit card | Commercial Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 147 | 139 |
Commercial credit card | Consumer Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 930 | 972 |
Collateral pledged | Commercial Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 14 | 16 |
Education Lending | Discontinued Operations | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 531 | $ 567 |
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 | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | $ 1,061 | $ 1,626 |
Provision | 77 | (74) |
Charge-offs | (51) | (135) |
Recoveries | 18 | 21 |
Ending balance | 1,105 | 1,438 |
Total ALLL, including discontinued operations, beginning balance | 1,089 | 1,662 |
Total provision, including discontinued operations | 78 | (77) |
Total charge-offs, including discontinued operations | (53) | (136) |
Total recoveries, including discontinued operations | 18 | 22 |
Total ALLL, including discontinued operations, ending balance | 1,132 | 1,471 |
Provision (credit) for losses on lending-related commitments | 6 | (19) |
Commercial Loans | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 688 | 1,099 |
Provision | 53 | (60) |
Charge-offs | (36) | (112) |
Recoveries | 12 | 10 |
Ending balance | 717 | 937 |
Consumer Loans | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 373 | 527 |
Provision | 24 | (14) |
Charge-offs | (15) | (23) |
Recoveries | 6 | 11 |
Ending balance | 388 | 501 |
Commercial and Industrial | Commercial Loans | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 445 | 678 |
Provision | 63 | (17) |
Charge-offs | (30) | (73) |
Recoveries | 11 | 8 |
Ending balance | 489 | 596 |
Commercial mortgage | Commercial Loans | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 182 | 327 |
Provision | (7) | (37) |
Charge-offs | (4) | (35) |
Recoveries | 1 | 1 |
Ending balance | 172 | 256 |
Construction | Commercial Loans | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 29 | 47 |
Provision | (4) | (2) |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Ending balance | 25 | 45 |
Commercial real estate loans | Commercial Loans | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 211 | 374 |
Provision | (11) | (39) |
Charge-offs | (4) | (35) |
Recoveries | 1 | 1 |
Ending balance | 197 | 301 |
Commercial lease financing | Commercial Loans | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 32 | 47 |
Provision | 1 | (4) |
Charge-offs | (2) | (4) |
Recoveries | 0 | 1 |
Ending balance | 31 | 40 |
Real estate — residential mortgage | Consumer Loans | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 95 | 102 |
Provision | 12 | (3) |
Charge-offs | 1 | 0 |
Recoveries | 0 | 1 |
Ending balance | 108 | 100 |
Home equity loans | Consumer Loans | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 110 | 171 |
Provision | (6) | (13) |
Charge-offs | (1) | (2) |
Recoveries | 1 | 1 |
Ending balance | 104 | 157 |
Consumer direct loans | Consumer Loans | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 105 | 128 |
Provision | 11 | 4 |
Charge-offs | (7) | (8) |
Recoveries | 2 | 2 |
Ending balance | 111 | 126 |
Credit cards | Consumer Loans | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 61 | 87 |
Provision | 7 | (3) |
Charge-offs | (7) | (6) |
Recoveries | 2 | 2 |
Ending balance | 63 | 80 |
Consumer indirect loans | Consumer Loans | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 2 | 39 |
Provision | 0 | 1 |
Charge-offs | (1) | (7) |
Recoveries | 1 | 5 |
Ending balance | 2 | 38 |
Discontinued Operations | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 28 | 36 |
Provision | 1 | (3) |
Charge-offs | (2) | (1) |
Recoveries | 0 | 1 |
Ending balance | $ 27 | $ 33 |
Asset Quality - Additional Info
Asset Quality - Additional Information (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2022USD ($)loan | Mar. 31, 2021USD ($)loan | Dec. 31, 2021USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Percentage of carrying amount of our commercial nonperforming loans outstanding | 62.00% | ||
Percentage of nonperforming loans outstanding face value | 73.00% | ||
Percentage of loans held for sale and other nonperforming assets | 81.00% | ||
Net reduction to interest income | $ 5 | $ 7 | |
Commitments outstanding to lend additional funds to borrowers (less than $1 million) | 1 | $ 15 | |
Financial receivable, modifications, subsequent default, recorded investment | $ 8 | $ 1 | |
Commercial Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
TDRs, period for default | 90 days | ||
Number of loans | loan | 4 | 2 | |
Consumer Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
TDRs, period for default | 60 days | ||
Number of loans | loan | 38 | 36 | |
Continuing operations | Commercial Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Decrease in ALLL | $ 29 | ||
Decrease in ALLL (as a percent) | 4.20% | ||
Continuing operations | Consumer Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Decrease in ALLL | $ 15 | ||
Decrease in ALLL (as a percent) | 4.00% | ||
PPP | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans, net of unearned income (residential) | $ 886 | ||
Nonperforming financial instruments | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Nonperforming loans on nonaccrual status with no allowance | 301 | ||
Real estate — residential mortgage | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financial receivable, modifications, subsequent default, recorded investment | $ 126 | $ 104 |
Asset Quality - Commercial Cred
Asset Quality - Commercial Credit Exposure (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | $ 106,600 | $ 101,854 |
Accrued interest | 193 | 198 |
Commercial Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current | 3,729 | 18,212 |
One year prior | 17,803 | 7,556 |
Two years prior | 6,970 | 7,624 |
Three years prior | 6,887 | 4,772 |
Four years prior | 4,285 | 3,136 |
Prior | 9,603 | 7,235 |
Revolving Loans Amortized Cost Basis | 24,439 | 22,159 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 204 | 142 |
Total | 73,920 | 70,836 |
Accrued interest | 117 | 113 |
Commercial Loans | Commercial and Industrial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current | 1,952 | 11,740 |
One year prior | 11,523 | 5,013 |
Two years prior | 4,486 | 4,176 |
Three years prior | 3,628 | 2,956 |
Four years prior | 2,697 | 1,996 |
Prior | 4,836 | 3,244 |
Revolving Loans Amortized Cost Basis | 23,552 | 21,312 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 141 | 88 |
Total | 52,815 | 50,525 |
Commercial Loans | Commercial and Industrial | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current | 1,952 | 11,675 |
One year prior | 11,488 | 4,941 |
Two years prior | 4,372 | 4,040 |
Three years prior | 3,497 | 2,771 |
Four years prior | 2,515 | 1,777 |
Prior | 4,511 | 3,108 |
Revolving Loans Amortized Cost Basis | 22,623 | 20,406 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 117 | 72 |
Total | 51,075 | 48,790 |
Commercial Loans | Commercial and Industrial | Criticized (Accruing) | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current | 0 | 64 |
One year prior | 34 | 71 |
Two years prior | 111 | 115 |
Three years prior | 116 | 175 |
Four years prior | 173 | 200 |
Prior | 294 | 121 |
Revolving Loans Amortized Cost Basis | 803 | 784 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 23 | 14 |
Total | 1,554 | 1,544 |
Commercial Loans | Commercial and Industrial | Criticized (Nonaccruing) | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current | 0 | 1 |
One year prior | 1 | 1 |
Two years prior | 3 | 21 |
Three years prior | 15 | 10 |
Four years prior | 9 | 19 |
Prior | 31 | 15 |
Revolving Loans Amortized Cost Basis | 126 | 122 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 1 | 2 |
Total | 186 | 191 |
Commercial Loans | Commercial mortgage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current | 1,474 | 4,938 |
One year prior | 4,823 | 1,220 |
Two years prior | 1,174 | 2,208 |
Three years prior | 2,133 | 1,235 |
Four years prior | 1,070 | 721 |
Prior | 3,504 | 3,024 |
Revolving Loans Amortized Cost Basis | 886 | 844 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 60 | 54 |
Total | 15,124 | 14,244 |
Commercial Loans | Commercial mortgage | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current | 1,474 | 4,923 |
One year prior | 4,805 | 1,197 |
Two years prior | 1,153 | 2,137 |
Three years prior | 2,045 | 1,168 |
Four years prior | 994 | 612 |
Prior | 3,185 | 2,787 |
Revolving Loans Amortized Cost Basis | 850 | 803 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 59 | 53 |
Total | 14,565 | 13,680 |
Commercial Loans | Commercial mortgage | Criticized (Accruing) | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current | 0 | 15 |
One year prior | 18 | 22 |
Two years prior | 20 | 70 |
Three years prior | 87 | 62 |
Four years prior | 71 | 109 |
Prior | 290 | 206 |
Revolving Loans Amortized Cost Basis | 33 | 35 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 1 |
Total | 519 | 520 |
Commercial Loans | Commercial mortgage | Criticized (Nonaccruing) | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current | 0 | 0 |
One year prior | 0 | 1 |
Two years prior | 1 | 1 |
Three years prior | 1 | 5 |
Four years prior | 5 | 0 |
Prior | 29 | 31 |
Revolving Loans Amortized Cost Basis | 3 | 6 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 1 | 0 |
Total | 40 | 44 |
Commercial Loans | Construction | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current | 144 | 495 |
One year prior | 472 | 569 |
Two years prior | 606 | 535 |
Three years prior | 483 | 266 |
Four years prior | 240 | 96 |
Prior | 116 | 32 |
Revolving Loans Amortized Cost Basis | 1 | 3 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 3 | 0 |
Total | 2,065 | 1,996 |
Commercial Loans | Construction | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current | 144 | 495 |
One year prior | 472 | 565 |
Two years prior | 602 | 530 |
Three years prior | 476 | 223 |
Four years prior | 209 | 92 |
Prior | 112 | 32 |
Revolving Loans Amortized Cost Basis | 1 | 2 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 3 | 0 |
Total | 2,019 | 1,939 |
Commercial Loans | Construction | Criticized (Accruing) | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current | 0 | 0 |
One year prior | 0 | 4 |
Two years prior | 4 | 5 |
Three years prior | 7 | 43 |
Four years prior | 31 | 4 |
Prior | 4 | 0 |
Revolving Loans Amortized Cost Basis | 0 | 1 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | 46 | 57 |
Commercial Loans | Construction | Criticized (Nonaccruing) | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current | 0 | 0 |
One year prior | 0 | 0 |
Two years prior | 0 | 0 |
Three years prior | 0 | 0 |
Four years prior | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | 0 | 0 |
Commercial Loans | Commercial lease financing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current | 159 | 1,039 |
One year prior | 985 | 754 |
Two years prior | 704 | 705 |
Three years prior | 643 | 315 |
Four years prior | 278 | 323 |
Prior | 1,147 | 935 |
Revolving Loans Amortized Cost Basis | 0 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | 3,916 | 4,071 |
Commercial Loans | Commercial lease financing | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current | 159 | 1,039 |
One year prior | 985 | 748 |
Two years prior | 693 | 675 |
Three years prior | 619 | 301 |
Four years prior | 262 | 309 |
Prior | 1,131 | 927 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | 3,849 | 3,999 |
Commercial Loans | Commercial lease financing | Criticized (Accruing) | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current | 0 | 0 |
One year prior | 0 | 6 |
Two years prior | 11 | 29 |
Three years prior | 23 | 13 |
Four years prior | 15 | 13 |
Prior | 15 | 7 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | 64 | 68 |
Commercial Loans | Commercial lease financing | Criticized (Nonaccruing) | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current | 0 | 0 |
One year prior | 0 | 0 |
Two years prior | 0 | 1 |
Three years prior | 1 | 1 |
Four years prior | 1 | 1 |
Prior | 1 | 1 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | $ 3 | $ 4 |
Asset Quality - Consumer Credit
Asset Quality - Consumer Credit Exposure (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | $ 106,600 | $ 101,854 |
Accrued interest | 193 | 198 |
Consumer Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current | 2,979 | 13,637 |
One year prior | 13,422 | 5,890 |
Two years prior | 5,513 | 2,095 |
Three years prior | 1,872 | 432 |
Four years prior | 380 | 384 |
Prior | 2,954 | 2,812 |
Revolving Loans Amortized Cost Basis | 4,977 | 5,156 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 583 | 612 |
Total | 32,680 | 31,018 |
Accrued interest | 75 | 85 |
Consumer Loans | Real estate — residential mortgage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current | 1,850 | 9,636 |
One year prior | 9,609 | 3,274 |
Two years prior | 3,117 | 966 |
Three years prior | 864 | 140 |
Four years prior | 123 | 163 |
Prior | 1,617 | 1,576 |
Revolving Loans Amortized Cost Basis | 1 | 1 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | 17,181 | 15,756 |
Consumer Loans | Real estate — residential mortgage | FICO Score, 750 and above | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current | 1,351 | 7,906 |
One year prior | 8,320 | 2,909 |
Two years prior | 2,802 | 777 |
Three years prior | 705 | 84 |
Four years prior | 74 | 126 |
Prior | 1,135 | 1,096 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | 14,387 | 12,898 |
Consumer Loans | Real estate — residential mortgage | FICO Score, 660 to 749 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current | 437 | 1,686 |
One year prior | 1,235 | 351 |
Two years prior | 299 | 169 |
Three years prior | 140 | 39 |
Four years prior | 32 | 25 |
Prior | 302 | 308 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | 2,445 | 2,578 |
Consumer Loans | Real estate — residential mortgage | FICO Score, Less than 660 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current | 12 | 26 |
One year prior | 35 | 14 |
Two years prior | 16 | 19 |
Three years prior | 18 | 16 |
Four years prior | 16 | 9 |
Prior | 149 | 142 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | 246 | 226 |
Consumer Loans | Real estate — residential mortgage | FICO Score, No Score | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current | 50 | 18 |
One year prior | 19 | 0 |
Two years prior | 0 | 1 |
Three years prior | 1 | 1 |
Four years prior | 1 | 3 |
Prior | 31 | 30 |
Revolving Loans Amortized Cost Basis | 1 | 1 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | 103 | 54 |
Consumer Loans | Home equity loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current | 139 | 1,472 |
One year prior | 1,458 | 1,119 |
Two years prior | 1,064 | 382 |
Three years prior | 350 | 153 |
Four years prior | 138 | 181 |
Prior | 1,054 | 964 |
Revolving Loans Amortized Cost Basis | 3,472 | 3,584 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 583 | 612 |
Total | 8,258 | 8,467 |
Consumer Loans | Home equity loans | FICO Score, 750 and above | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current | 96 | 1,051 |
One year prior | 1,073 | 830 |
Two years prior | 797 | 251 |
Three years prior | 233 | 96 |
Four years prior | 87 | 128 |
Prior | 731 | 666 |
Revolving Loans Amortized Cost Basis | 2,209 | 2,244 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 404 | 423 |
Total | 5,630 | 5,689 |
Consumer Loans | Home equity loans | FICO Score, 660 to 749 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current | 40 | 394 |
One year prior | 356 | 263 |
Two years prior | 239 | 111 |
Three years prior | 97 | 44 |
Four years prior | 39 | 40 |
Prior | 221 | 204 |
Revolving Loans Amortized Cost Basis | 940 | 1,004 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 135 | 143 |
Total | 2,067 | 2,203 |
Consumer Loans | Home equity loans | FICO Score, Less than 660 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current | 3 | 27 |
One year prior | 29 | 24 |
Two years prior | 26 | 20 |
Three years prior | 20 | 13 |
Four years prior | 12 | 13 |
Prior | 100 | 92 |
Revolving Loans Amortized Cost Basis | 320 | 333 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 44 | 46 |
Total | 554 | 568 |
Consumer Loans | Home equity loans | FICO Score, No Score | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current | 0 | 0 |
One year prior | 0 | 2 |
Two years prior | 2 | 0 |
Three years prior | 0 | 0 |
Four years prior | 0 | 0 |
Prior | 2 | 2 |
Revolving Loans Amortized Cost Basis | 3 | 3 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | 7 | 7 |
Consumer Loans | Consumer direct loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current | 990 | 2,524 |
One year prior | 2,352 | 1,497 |
Two years prior | 1,332 | 747 |
Three years prior | 658 | 139 |
Four years prior | 119 | 40 |
Prior | 224 | 207 |
Revolving Loans Amortized Cost Basis | 574 | 599 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | 6,249 | 5,753 |
Consumer Loans | Consumer direct loans | FICO Score, 750 and above | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current | 741 | 1,799 |
One year prior | 1,706 | 1,129 |
Two years prior | 1,004 | 517 |
Three years prior | 456 | 65 |
Four years prior | 57 | 17 |
Prior | 131 | 129 |
Revolving Loans Amortized Cost Basis | 105 | 109 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | 4,200 | 3,765 |
Consumer Loans | Consumer direct loans | FICO Score, 660 to 749 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current | 220 | 612 |
One year prior | 536 | 295 |
Two years prior | 262 | 174 |
Three years prior | 151 | 46 |
Four years prior | 39 | 10 |
Prior | 50 | 45 |
Revolving Loans Amortized Cost Basis | 203 | 212 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | 1,461 | 1,394 |
Consumer Loans | Consumer direct loans | FICO Score, Less than 660 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current | 7 | 45 |
One year prior | 53 | 33 |
Two years prior | 32 | 27 |
Three years prior | 25 | 11 |
Four years prior | 9 | 3 |
Prior | 13 | 12 |
Revolving Loans Amortized Cost Basis | 55 | 60 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | 194 | 191 |
Consumer Loans | Consumer direct loans | FICO Score, No Score | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current | 22 | 68 |
One year prior | 57 | 40 |
Two years prior | 34 | 29 |
Three years prior | 26 | 17 |
Four years prior | 14 | 10 |
Prior | 30 | 21 |
Revolving Loans Amortized Cost Basis | 211 | 218 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | 394 | 403 |
Consumer Loans | Commercial credit card | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current | 0 | 0 |
One year prior | 0 | 0 |
Two years prior | 0 | 0 |
Three years prior | 0 | 0 |
Four years prior | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans Amortized Cost Basis | 930 | 972 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | 930 | 972 |
Consumer Loans | Commercial credit card | FICO Score, 750 and above | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current | 0 | 0 |
One year prior | 0 | 0 |
Two years prior | 0 | 0 |
Three years prior | 0 | 0 |
Four years prior | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans Amortized Cost Basis | 467 | 500 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | 467 | 500 |
Consumer Loans | Commercial credit card | FICO Score, 660 to 749 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current | 0 | 0 |
One year prior | 0 | 0 |
Two years prior | 0 | 0 |
Three years prior | 0 | 0 |
Four years prior | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans Amortized Cost Basis | 376 | 387 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | 376 | 387 |
Consumer Loans | Commercial credit card | FICO Score, Less than 660 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current | 0 | 0 |
One year prior | 0 | 0 |
Two years prior | 0 | 0 |
Three years prior | 0 | 0 |
Four years prior | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans Amortized Cost Basis | 86 | 84 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | 86 | 84 |
Consumer Loans | Commercial credit card | FICO Score, No Score | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current | 0 | 0 |
One year prior | 0 | 0 |
Two years prior | 0 | 0 |
Three years prior | 0 | 0 |
Four years prior | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans Amortized Cost Basis | 1 | 1 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | 1 | 1 |
Consumer Loans | Consumer indirect loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current | 0 | 5 |
One year prior | 3 | 0 |
Two years prior | 0 | 0 |
Three years prior | 0 | 0 |
Four years prior | 0 | 0 |
Prior | 59 | 65 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | 62 | 70 |
Consumer Loans | Consumer indirect loans | FICO Score, 750 and above | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current | 0 | 5 |
One year prior | 3 | 0 |
Two years prior | 0 | 0 |
Three years prior | 0 | 0 |
Four years prior | 0 | 0 |
Prior | 28 | 30 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | 31 | 35 |
Consumer Loans | Consumer indirect loans | FICO Score, 660 to 749 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current | 0 | 0 |
One year prior | 0 | 0 |
Two years prior | 0 | 0 |
Three years prior | 0 | 0 |
Four years prior | 0 | 0 |
Prior | 21 | 26 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | 21 | 26 |
Consumer Loans | Consumer indirect loans | FICO Score, Less than 660 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current | 0 | 0 |
One year prior | 0 | 0 |
Two years prior | 0 | 0 |
Three years prior | 0 | 0 |
Four years prior | 0 | 0 |
Prior | 10 | 9 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | 10 | 9 |
Consumer Loans | Consumer indirect loans | FICO Score, No Score | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current | 0 | 0 |
One year prior | 0 | 0 |
Two years prior | 0 | 0 |
Three years prior | 0 | 0 |
Four years prior | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | $ 0 | $ 0 |
Asset Quality - Aging Analysis
Asset Quality - Aging Analysis of Past Due and Current Loans (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Past Due [Line Items] | ||
Total | $ 106,600 | $ 101,854 |
Accrued interest | 193 | 198 |
Commercial Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 73,920 | 70,836 |
Accrued interest | 117 | 113 |
Consumer Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 32,680 | 31,018 |
Accrued interest | 75 | 85 |
Commercial and Industrial | Commercial Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 52,815 | 50,525 |
Commercial mortgage | Commercial Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 15,124 | 14,244 |
Commercial real estate: Construction | Commercial Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 2,065 | 1,996 |
Commercial real estate loans | Commercial Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 17,189 | 16,240 |
Commercial lease financing | Commercial Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 3,916 | 4,071 |
Real estate — residential mortgage | Consumer Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 17,181 | 15,756 |
Home equity loans | Consumer Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 8,258 | 8,467 |
Consumer direct loans | Consumer Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 6,249 | 5,753 |
Commercial credit card | Commercial Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 147 | 139 |
Commercial credit card | Consumer Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 930 | 972 |
Consumer indirect loans | Consumer Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 62 | 70 |
Financial Asset, Not Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 105,984 | 101,167 |
Financial Asset, Not Past Due | Commercial Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 73,581 | 70,439 |
Financial Asset, Not Past Due | Consumer Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 32,403 | 30,728 |
Financial Asset, Not Past Due | Commercial and Industrial | Commercial Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 52,537 | 50,226 |
Financial Asset, Not Past Due | Commercial mortgage | Commercial Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 15,072 | 14,174 |
Financial Asset, Not Past Due | Commercial real estate: Construction | Commercial Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 2,064 | 1,978 |
Financial Asset, Not Past Due | Commercial real estate loans | Commercial Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 17,136 | 16,152 |
Financial Asset, Not Past Due | Commercial lease financing | Commercial Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 3,908 | 4,061 |
Financial Asset, Not Past Due | Real estate — residential mortgage | Consumer Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 17,098 | 15,669 |
Financial Asset, Not Past Due | Home equity loans | Consumer Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 8,102 | 8,299 |
Financial Asset, Not Past Due | Consumer direct loans | Consumer Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 6,229 | 5,736 |
Financial Asset, Not Past Due | Commercial credit card | Consumer Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 914 | 956 |
Financial Asset, Not Past Due | Consumer indirect loans | Consumer Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 60 | 68 |
30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 70 | 76 |
30-59 Days Past Due | Commercial Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 32 | 35 |
30-59 Days Past Due | Consumer Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 38 | 41 |
30-59 Days Past Due | Commercial and Industrial | Commercial Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 23 | 19 |
30-59 Days Past Due | Commercial mortgage | Commercial Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 4 | 10 |
30-59 Days Past Due | Commercial real estate: Construction | Commercial Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 1 | 0 |
30-59 Days Past Due | Commercial real estate loans | Commercial Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 5 | 10 |
30-59 Days Past Due | Commercial lease financing | Commercial Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 4 | 6 |
30-59 Days Past Due | Real estate — residential mortgage | Consumer Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 7 | 7 |
30-59 Days Past Due | Home equity loans | Consumer Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 18 | 21 |
30-59 Days Past Due | Consumer direct loans | Consumer Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 8 | 8 |
30-59 Days Past Due | Commercial credit card | Consumer Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 4 | 4 |
30-59 Days Past Due | Consumer indirect loans | Consumer Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 1 | 1 |
60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 52 | 89 |
60-89 Days Past Due | Commercial Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 37 | 75 |
60-89 Days Past Due | Consumer Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 15 | 14 |
60-89 Days Past Due | Commercial and Industrial | Commercial Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 31 | 49 |
60-89 Days Past Due | Commercial mortgage | Commercial Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 5 | 9 |
60-89 Days Past Due | Commercial real estate: Construction | Commercial Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 17 |
60-89 Days Past Due | Commercial real estate loans | Commercial Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 5 | 26 |
60-89 Days Past Due | Commercial lease financing | Commercial Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 1 | 0 |
60-89 Days Past Due | Real estate — residential mortgage | Consumer Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 2 | 3 |
60-89 Days Past Due | Home equity loans | Consumer Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 6 | 6 |
60-89 Days Past Due | Consumer direct loans | Consumer Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 4 | 2 |
60-89 Days Past Due | Commercial credit card | Consumer Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 3 | 3 |
60-89 Days Past Due | Consumer indirect loans | Consumer Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
90 and Greater Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 55 | 68 |
90 and Greater Days Past Due | Commercial Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 41 | 48 |
90 and Greater Days Past Due | Consumer Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 14 | 20 |
90 and Greater Days Past Due | Commercial and Industrial | Commercial Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 38 | 40 |
90 and Greater Days Past Due | Commercial mortgage | Commercial Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 3 | 7 |
90 and Greater Days Past Due | Commercial real estate: Construction | Commercial Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 1 |
90 and Greater Days Past Due | Commercial real estate loans | Commercial Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 3 | 8 |
90 and Greater Days Past Due | Commercial lease financing | Commercial Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
90 and Greater Days Past Due | Real estate — residential mortgage | Consumer Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 1 | 5 |
90 and Greater Days Past Due | Home equity loans | Consumer Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 3 | 6 |
90 and Greater Days Past Due | Consumer direct loans | Consumer Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 4 | 3 |
90 and Greater Days Past Due | Commercial credit card | Consumer Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 6 | 6 |
90 and Greater Days Past Due | Consumer indirect loans | Consumer Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
Financial Asset, Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 616 | 687 |
Financial Asset, Past Due | Commercial Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 339 | 397 |
Financial Asset, Past Due | Consumer Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 277 | 290 |
Financial Asset, Past Due | Commercial and Industrial | Commercial Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 278 | 299 |
Financial Asset, Past Due | Commercial mortgage | Commercial Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 52 | 70 |
Financial Asset, Past Due | Commercial real estate: Construction | Commercial Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 1 | 18 |
Financial Asset, Past Due | Commercial real estate loans | Commercial Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 53 | 88 |
Financial Asset, Past Due | Commercial lease financing | Commercial Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 8 | 10 |
Financial Asset, Past Due | Real estate — residential mortgage | Consumer Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 83 | 87 |
Financial Asset, Past Due | Home equity loans | Consumer Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 156 | 168 |
Financial Asset, Past Due | Consumer direct loans | Consumer Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 20 | 17 |
Financial Asset, Past Due | Commercial credit card | Consumer Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 16 | 16 |
Financial Asset, Past Due | Consumer indirect loans | Consumer Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 2 | 2 |
Nonperforming financial instruments | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 439 | 454 |
Nonperforming financial instruments | Commercial Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 229 | 239 |
Nonperforming financial instruments | Consumer Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 210 | 215 |
Nonperforming financial instruments | Commercial and Industrial | Commercial Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 186 | 191 |
Nonperforming financial instruments | Commercial mortgage | Commercial Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 40 | 44 |
Nonperforming financial instruments | Commercial real estate: Construction | Commercial Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
Nonperforming financial instruments | Commercial real estate loans | Commercial Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 40 | 44 |
Nonperforming financial instruments | Commercial lease financing | Commercial Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 3 | 4 |
Nonperforming financial instruments | Real estate — residential mortgage | Consumer Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 73 | 72 |
Nonperforming financial instruments | Home equity loans | Consumer Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 129 | 135 |
Nonperforming financial instruments | Consumer direct loans | Consumer Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 4 | 4 |
Nonperforming financial instruments | Commercial credit card | Consumer Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 3 | 3 |
Nonperforming financial instruments | Consumer indirect loans | Consumer Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total | $ 1 | $ 1 |
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 | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total commercial and consumer TDRs | $ 11 | $ 57 |
Commercial Loans | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Extension of Maturity Date | 0 | 41 |
Payment or Covenant Modification/Deferment | 1 | 10 |
Bankruptcy Plan Modification | 0 | 0 |
Increase in new commitment or new money | 0 | 0 |
Total | 1 | 51 |
Consumer Loans | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Interest rate reduction | 1 | 2 |
Other | 9 | 4 |
Total | $ 10 | $ 6 |
Asset Quality - Summary of Post
Asset Quality - Summary of Post-Modification Outstanding Recorded Investment TDRs (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Financing Receivables, Modifications, Rollforward [Roll Forward] | ||
Balance at beginning of the period | $ 220 | $ 363 |
Additions | 11 | 59 |
Payments | (12) | (21) |
Charge-offs | 0 | (25) |
Balance at end of period | $ 219 | $ 376 |
Asset Quality - Breakdown of No
Asset Quality - Breakdown of Nonperforming TDRs by Loans Category (Details) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022USD ($)loan | Dec. 31, 2021USD ($)loan | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | loan | 4,385 | 4,429 |
Pre-modification Outstanding Recorded Investment | $ 303 | $ 308 |
Post-modification Outstanding Recorded Investment | $ 219 | $ 220 |
Prior-Year accruing | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | loan | 3,045 | 3,049 |
Pre-modification Outstanding Recorded Investment | $ 160 | $ 160 |
Post-modification Outstanding Recorded Investment | $ 121 | $ 121 |
Prior-Year accruing | Commercial Loans | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | loan | 14 | 12 |
Pre-modification Outstanding Recorded Investment | $ 0 | $ 0 |
Post-modification Outstanding Recorded Investment | $ 0 | $ 0 |
Prior-Year accruing | Consumer Loans | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | loan | 3,031 | 3,037 |
Pre-modification Outstanding Recorded Investment | $ 160 | $ 160 |
Post-modification Outstanding Recorded Investment | $ 122 | $ 121 |
Nonperforming financial instruments | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | loan | 1,340 | 1,380 |
Pre-modification Outstanding Recorded Investment | $ 143 | $ 148 |
Post-modification Outstanding Recorded Investment | $ 98 | $ 99 |
Nonperforming financial instruments | Commercial Loans | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | loan | 41 | 39 |
Pre-modification Outstanding Recorded Investment | $ 75 | $ 80 |
Post-modification Outstanding Recorded Investment | $ 37 | $ 39 |
Nonperforming financial instruments | Consumer Loans | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | loan | 1,299 | 1,341 |
Pre-modification Outstanding Recorded Investment | $ 68 | $ 68 |
Post-modification Outstanding Recorded Investment | $ 61 | $ 60 |
Commercial and Industrial | Prior-Year accruing | Commercial Loans | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | loan | 13 | 11 |
Pre-modification Outstanding Recorded Investment | $ 0 | $ 0 |
Post-modification Outstanding Recorded Investment | $ 0 | $ 0 |
Commercial and Industrial | Nonperforming financial instruments | Commercial Loans | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | loan | 37 | 36 |
Pre-modification Outstanding Recorded Investment | $ 25 | $ 30 |
Post-modification Outstanding Recorded Investment | $ 14 | $ 14 |
Commercial mortgage | Prior-Year accruing | Commercial Real Estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | loan | 1 | 1 |
Pre-modification Outstanding Recorded Investment | $ 0 | $ 0 |
Post-modification Outstanding Recorded Investment | $ 0 | $ 0 |
Commercial mortgage | Nonperforming financial instruments | Commercial Real Estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | loan | 4 | 3 |
Pre-modification Outstanding Recorded Investment | $ 50 | $ 50 |
Post-modification Outstanding Recorded Investment | $ 23 | $ 25 |
Commercial real estate loans | Prior-Year accruing | Commercial Real Estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | loan | 1 | 1 |
Pre-modification Outstanding Recorded Investment | $ 0 | $ 0 |
Post-modification Outstanding Recorded Investment | $ 0 | $ 0 |
Commercial real estate loans | Nonperforming financial instruments | Commercial Real Estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | loan | 4 | 3 |
Pre-modification Outstanding Recorded Investment | $ 50 | $ 50 |
Post-modification Outstanding Recorded Investment | $ 23 | $ 25 |
Real estate — residential mortgage | Prior-Year accruing | Consumer Loans | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | loan | 463 | 455 |
Pre-modification Outstanding Recorded Investment | $ 41 | $ 39 |
Post-modification Outstanding Recorded Investment | $ 35 | $ 33 |
Real estate — residential mortgage | Nonperforming financial instruments | Consumer Loans | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | loan | 223 | 220 |
Pre-modification Outstanding Recorded Investment | $ 27 | $ 26 |
Post-modification Outstanding Recorded Investment | $ 25 | $ 24 |
Home equity loans | Prior-Year accruing | Consumer Loans | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | loan | 1,615 | 1,628 |
Pre-modification Outstanding Recorded Investment | $ 97 | $ 97 |
Post-modification Outstanding Recorded Investment | $ 75 | $ 75 |
Home equity loans | Nonperforming financial instruments | Consumer Loans | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | loan | 514 | 531 |
Pre-modification Outstanding Recorded Investment | $ 35 | $ 36 |
Post-modification Outstanding Recorded Investment | $ 31 | $ 31 |
Consumer direct loans | Prior-Year accruing | Consumer Loans | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | loan | 226 | 236 |
Pre-modification Outstanding Recorded Investment | $ 4 | $ 5 |
Post-modification Outstanding Recorded Investment | $ 3 | $ 3 |
Consumer direct loans | Nonperforming financial instruments | Consumer Loans | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | loan | 208 | 207 |
Pre-modification Outstanding Recorded Investment | $ 2 | $ 3 |
Post-modification Outstanding Recorded Investment | $ 2 | $ 2 |
Credit cards | Prior-Year accruing | Consumer Loans | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | loan | 599 | 579 |
Pre-modification Outstanding Recorded Investment | $ 4 | $ 4 |
Post-modification Outstanding Recorded Investment | $ 2 | $ 2 |
Credit cards | Nonperforming financial instruments | Consumer Loans | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | loan | 332 | 360 |
Pre-modification Outstanding Recorded Investment | $ 2 | $ 2 |
Post-modification Outstanding Recorded Investment | $ 2 | $ 2 |
Consumer indirect loans | Prior-Year accruing | Consumer Loans | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | loan | 128 | 139 |
Pre-modification Outstanding Recorded Investment | $ 14 | $ 15 |
Post-modification Outstanding Recorded Investment | $ 7 | $ 8 |
Consumer indirect loans | Nonperforming financial instruments | Consumer Loans | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | loan | 22 | 23 |
Pre-modification Outstanding Recorded Investment | $ 2 | $ 1 |
Post-modification Outstanding Recorded Investment | $ 1 | $ 1 |
Asset Quality - Changes in Liab
Asset Quality - Changes in Liability for Credit Losses on Lending Related Commitments (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | ||||
Balance at beginning of period | $ 166 | $ 178 | $ 160 | $ 197 |
Provision (credit) for losses on off balance sheet exposures | 6 | (19) | ||
Balance at end of period | $ 166 | $ 178 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value of Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
ASSETS MEASURED ON A RECURRING BASIS | ||
Total trading account securities | $ 848 | $ 701 |
Securities available for sale | 43,681 | 45,364 |
Derivative assets, netting adjustments | (330) | (284) |
Total derivative assets | 2,739 | 1,962 |
LIABILITIES MEASURED ON A RECURRING BASIS | ||
Derivative liabilities, netting adjustments | (2,689) | (1,526) |
U.S. Treasury, agencies and corporations | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Securities available for sale | 9,638 | 9,472 |
Other securities | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Securities available for sale | 1 | 0 |
Agency residential mortgage-backed securities | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Securities available for sale | 4,744 | 5,122 |
Mortgage-backed securities | Agency commercial mortgage-backed securities | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Securities available for sale | 8,659 | 9,651 |
Other | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Derivative assets, gross | 1 | |
Recurring | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Total trading account securities | 844 | 683 |
Commercial loans | 4 | 18 |
Total trading account assets | 848 | 701 |
Securities available for sale | 43,681 | 45,364 |
Total other investments | 90 | 105 |
Loans, net of unearned income (residential) | 11 | 11 |
Loans held for sale (residential) | 114 | 281 |
Derivative assets, gross | 3,069 | 2,246 |
Derivative assets, netting adjustments | (330) | (284) |
Total derivative assets | 2,739 | 1,962 |
Total assets at fair value | 47,483 | 48,424 |
LIABILITIES MEASURED ON A RECURRING BASIS | ||
Total liabilities on a recurring basis at fair value | 1,320 | 749 |
Recurring | U.S. Treasury, agencies and corporations | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Total trading account securities | 627 | 530 |
Securities available for sale | 9,638 | 9,472 |
Recurring | States and political subdivisions | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Total trading account securities | 76 | 96 |
Securities available for sale | 0 | 0 |
Recurring | Other securities | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Total trading account securities | 14 | 13 |
Securities available for sale | 1 | 0 |
Recurring | Agency commercial mortgage-backed securities | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Securities available for sale | 8,659 | 9,651 |
Recurring | Principal investments, Direct | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Total other investments | 1 | 1 |
Recurring | Principal Investments | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Total other investments | 45 | 46 |
Recurring | Equity Investments, Direct | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Total other investments | 13 | 33 |
Recurring | Equity Investments | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Total other investments | 45 | 59 |
Recurring | Mortgage-backed securities | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Total trading account securities | 127 | 44 |
Recurring | Mortgage-backed securities | Agency residential mortgage-backed securities | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Securities available for sale | 4,744 | 5,122 |
Recurring | Short positions | ||
LIABILITIES MEASURED ON A RECURRING BASIS | ||
Short positions | 722 | 588 |
Recurring | Long positions | ||
LIABILITIES MEASURED ON A RECURRING BASIS | ||
Derivative liabilities, gross | 3,287 | 1,687 |
Derivative liabilities, netting adjustments | (2,689) | (1,526) |
Total derivative liabilities | 598 | 161 |
Recurring | Interest rate | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Derivative assets, gross | 331 | 807 |
Recurring | Interest rate | Long positions | ||
LIABILITIES MEASURED ON A RECURRING BASIS | ||
Derivative liabilities, gross | 562 | 253 |
Recurring | Foreign exchange | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Derivative assets, gross | 102 | 81 |
Recurring | Foreign exchange | Long positions | ||
LIABILITIES MEASURED ON A RECURRING BASIS | ||
Derivative liabilities, gross | 96 | 76 |
Recurring | Commodity | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Derivative assets, gross | 2,613 | 1,330 |
Recurring | Commodity | Long positions | ||
LIABILITIES MEASURED ON A RECURRING BASIS | ||
Derivative liabilities, gross | 2,613 | 1,335 |
Recurring | Credit | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Derivative assets, gross | 1 | 1 |
Recurring | Credit | Long positions | ||
LIABILITIES MEASURED ON A RECURRING BASIS | ||
Derivative liabilities, gross | 6 | 12 |
Recurring | Other | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Derivative assets, gross | 22 | 27 |
Recurring | Other | Long positions | ||
LIABILITIES MEASURED ON A RECURRING BASIS | ||
Derivative liabilities, gross | 10 | 11 |
Level 1 | Recurring | ||
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 | 6 | 24 |
Loans, net of unearned income (residential) | 0 | 0 |
Loans held for sale (residential) | 0 | 0 |
Derivative assets, gross | 92 | 71 |
Derivative assets, netting adjustments | 0 | 0 |
Total derivative assets | 92 | 71 |
Total assets at fair value | 98 | 95 |
LIABILITIES MEASURED ON A RECURRING BASIS | ||
Total liabilities on a recurring basis at fair value | 154 | 141 |
Level 1 | Recurring | U.S. Treasury, agencies and corporations | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Total trading account securities | 0 | 0 |
Securities available for sale | 0 | 0 |
Level 1 | Recurring | States and political subdivisions | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Total trading account securities | 0 | 0 |
Securities available for sale | 0 | 0 |
Level 1 | Recurring | Other securities | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Total trading account securities | 0 | 0 |
Securities available for sale | 0 | 0 |
Level 1 | Recurring | Agency commercial mortgage-backed securities | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Securities available for sale | 0 | 0 |
Level 1 | Recurring | Principal investments, Direct | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Total other investments | 0 | 0 |
Level 1 | Recurring | Principal Investments | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Total other investments | 0 | 0 |
Level 1 | Recurring | Equity Investments, Direct | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Total other investments | 6 | 24 |
Level 1 | Recurring | Equity Investments | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Total other investments | 6 | 24 |
Level 1 | Recurring | Mortgage-backed securities | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Total trading account securities | 0 | 0 |
Level 1 | Recurring | Mortgage-backed securities | Agency residential mortgage-backed securities | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Securities available for sale | 0 | 0 |
Level 1 | Recurring | Short positions | ||
LIABILITIES MEASURED ON A RECURRING BASIS | ||
Short positions | 69 | 75 |
Level 1 | Recurring | Long positions | ||
LIABILITIES MEASURED ON A RECURRING BASIS | ||
Derivative liabilities, gross | 85 | 66 |
Derivative liabilities, netting adjustments | 0 | 0 |
Total derivative liabilities | 85 | 66 |
Level 1 | Recurring | Interest rate | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Derivative assets, gross | 0 | 0 |
Level 1 | Recurring | Interest rate | Long positions | ||
LIABILITIES MEASURED ON A RECURRING BASIS | ||
Derivative liabilities, gross | 0 | 0 |
Level 1 | Recurring | Foreign exchange | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Derivative assets, gross | 92 | 71 |
Level 1 | Recurring | Foreign exchange | Long positions | ||
LIABILITIES MEASURED ON A RECURRING BASIS | ||
Derivative liabilities, gross | 85 | 66 |
Level 1 | Recurring | Commodity | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Derivative assets, gross | 0 | 0 |
Level 1 | Recurring | Commodity | Long positions | ||
LIABILITIES MEASURED ON A RECURRING BASIS | ||
Derivative liabilities, gross | 0 | 0 |
Level 1 | Recurring | Credit | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Derivative assets, gross | 0 | 0 |
Level 1 | Recurring | Credit | Long positions | ||
LIABILITIES MEASURED ON A RECURRING BASIS | ||
Derivative liabilities, gross | 0 | 0 |
Level 1 | Recurring | Other | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Derivative assets, gross | 0 | 0 |
Level 1 | Recurring | Other | Long positions | ||
LIABILITIES MEASURED ON A RECURRING BASIS | ||
Derivative liabilities, gross | 0 | 0 |
Level 2 | Recurring | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Total trading account securities | 844 | 683 |
Commercial loans | 4 | 18 |
Total trading account assets | 848 | 701 |
Securities available for sale | 43,681 | 45,364 |
Total other investments | 0 | 0 |
Loans, net of unearned income (residential) | 0 | 0 |
Loans held for sale (residential) | 114 | 281 |
Derivative assets, gross | 2,932 | 2,136 |
Derivative assets, netting adjustments | 0 | 0 |
Total derivative assets | 2,932 | 2,136 |
Total assets at fair value | 47,575 | 48,482 |
LIABILITIES MEASURED ON A RECURRING BASIS | ||
Total liabilities on a recurring basis at fair value | 3,846 | 2,127 |
Level 2 | Recurring | U.S. Treasury, agencies and corporations | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Total trading account securities | 627 | 530 |
Securities available for sale | 9,638 | 9,472 |
Level 2 | Recurring | States and political subdivisions | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Total trading account securities | 76 | 96 |
Securities available for sale | 0 | 0 |
Level 2 | Recurring | Other securities | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Total trading account securities | 14 | 13 |
Securities available for sale | 1 | 0 |
Level 2 | Recurring | Agency commercial mortgage-backed securities | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Securities available for sale | 8,659 | 9,651 |
Level 2 | Recurring | Principal investments, Direct | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Total other investments | 0 | 0 |
Level 2 | Recurring | Principal Investments | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Total other investments | 0 | 0 |
Level 2 | Recurring | Equity Investments, Direct | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Total other investments | 0 | 0 |
Level 2 | Recurring | Equity Investments | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Total other investments | 0 | 0 |
Level 2 | Recurring | Mortgage-backed securities | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Total trading account securities | 127 | 44 |
Level 2 | Recurring | Mortgage-backed securities | Agency residential mortgage-backed securities | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Securities available for sale | 4,744 | 5,122 |
Level 2 | Recurring | Short positions | ||
LIABILITIES MEASURED ON A RECURRING BASIS | ||
Short positions | 653 | 513 |
Level 2 | Recurring | Long positions | ||
LIABILITIES MEASURED ON A RECURRING BASIS | ||
Derivative liabilities, gross | 3,193 | 1,614 |
Derivative liabilities, netting adjustments | 0 | 0 |
Total derivative liabilities | 3,193 | 1,614 |
Level 2 | Recurring | Interest rate | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Derivative assets, gross | 288 | 774 |
Level 2 | Recurring | Interest rate | Long positions | ||
LIABILITIES MEASURED ON A RECURRING BASIS | ||
Derivative liabilities, gross | 562 | 253 |
Level 2 | Recurring | Foreign exchange | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Derivative assets, gross | 10 | 10 |
Level 2 | Recurring | Foreign exchange | Long positions | ||
LIABILITIES MEASURED ON A RECURRING BASIS | ||
Derivative liabilities, gross | 11 | 10 |
Level 2 | Recurring | Commodity | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Derivative assets, gross | 2,613 | 1,330 |
Level 2 | Recurring | Commodity | Long positions | ||
LIABILITIES MEASURED ON A RECURRING BASIS | ||
Derivative liabilities, gross | 2,613 | 1,335 |
Level 2 | Recurring | Credit | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Derivative assets, gross | 0 | 0 |
Level 2 | Recurring | Credit | Long positions | ||
LIABILITIES MEASURED ON A RECURRING BASIS | ||
Derivative liabilities, gross | 0 | 5 |
Level 2 | Recurring | Other | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Derivative assets, gross | 21 | 22 |
Level 2 | Recurring | Other | Long positions | ||
LIABILITIES MEASURED ON A RECURRING BASIS | ||
Derivative liabilities, gross | 7 | 11 |
Level 3 | Recurring | ||
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 | 8 | 10 |
Loans, net of unearned income (residential) | 11 | 11 |
Loans held for sale (residential) | 0 | 0 |
Derivative assets, gross | 45 | 39 |
Derivative assets, netting adjustments | 0 | 0 |
Total derivative assets | 45 | 39 |
Total assets at fair value | 64 | 60 |
LIABILITIES MEASURED ON A RECURRING BASIS | ||
Total liabilities on a recurring basis at fair value | 9 | 7 |
Level 3 | Recurring | U.S. Treasury, agencies and corporations | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Total trading account securities | 0 | 0 |
Securities available for sale | 0 | 0 |
Level 3 | Recurring | States and political subdivisions | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Total trading account securities | 0 | 0 |
Securities available for sale | 0 | 0 |
Level 3 | Recurring | Other securities | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Total trading account securities | 0 | 0 |
Securities available for sale | 0 | 0 |
Level 3 | Recurring | Agency commercial mortgage-backed securities | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Securities available for sale | 0 | 0 |
Level 3 | Recurring | Principal investments, Direct | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Total other investments | 1 | 1 |
Level 3 | Recurring | Principal Investments | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Total other investments | 1 | 1 |
Level 3 | Recurring | Equity Investments, Direct | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Total other investments | 7 | 9 |
Level 3 | Recurring | Equity Investments | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Total other investments | 7 | 9 |
Level 3 | Recurring | Mortgage-backed securities | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Total trading account securities | 0 | 0 |
Level 3 | Recurring | Mortgage-backed securities | Agency residential mortgage-backed securities | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Securities available for sale | 0 | 0 |
Level 3 | Recurring | Short positions | ||
LIABILITIES MEASURED ON A RECURRING BASIS | ||
Short positions | 0 | 0 |
Level 3 | Recurring | Long positions | ||
LIABILITIES MEASURED ON A RECURRING BASIS | ||
Derivative liabilities, gross | 9 | 7 |
Derivative liabilities, netting adjustments | 0 | 0 |
Total derivative liabilities | 9 | 7 |
Level 3 | Recurring | Interest rate | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Derivative assets, gross | 43 | 33 |
Level 3 | Recurring | Interest rate | Long positions | ||
LIABILITIES MEASURED ON A RECURRING BASIS | ||
Derivative liabilities, gross | 0 | 0 |
Level 3 | Recurring | Foreign exchange | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Derivative assets, gross | 0 | 0 |
Level 3 | Recurring | Foreign exchange | Long positions | ||
LIABILITIES MEASURED ON A RECURRING BASIS | ||
Derivative liabilities, gross | 0 | 0 |
Level 3 | Recurring | Commodity | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Derivative assets, gross | 0 | 0 |
Level 3 | Recurring | Commodity | Long positions | ||
LIABILITIES MEASURED ON A RECURRING BASIS | ||
Derivative liabilities, gross | 0 | 0 |
Level 3 | Recurring | Credit | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Derivative assets, gross | 1 | 1 |
Level 3 | Recurring | Credit | Long positions | ||
LIABILITIES MEASURED ON A RECURRING BASIS | ||
Derivative liabilities, gross | 6 | 7 |
Level 3 | Recurring | Other | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Derivative assets, gross | 5 | |
Level 3 | Recurring | Other | Long positions | ||
LIABILITIES MEASURED ON A RECURRING BASIS | ||
Derivative liabilities, gross | 3 | 0 |
Measured at NAV | Recurring | Equity Investments Direct, NAV | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Total other investments | 28 | 21 |
Measured at NAV | Recurring | Equity Investments Indirect, NAV | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Total other investments | 4 | 5 |
Agency residential collateralized mortgage obligations | Recurring | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Securities available for sale | 20,639 | 21,119 |
Agency residential collateralized mortgage obligations | Level 1 | Recurring | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Securities available for sale | 0 | 0 |
Agency residential collateralized mortgage obligations | Level 2 | Recurring | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Securities available for sale | 20,639 | 21,119 |
Agency residential collateralized mortgage obligations | Level 3 | Recurring | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Securities available for sale | 0 | 0 |
Variable Interest Entity, Not Primary Beneficiary | Measured at NAV | Recurring | Principal Investments, Indirect | ||
ASSETS MEASURED ON A RECURRING BASIS | ||
Total other investments | $ 44 | $ 45 |
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 - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value | $ 45 | |
Unfunded Commitments | 11 | |
Funded Commitments | 0 | $ 2 |
Funded Other | 0 | 0 |
Direct investments | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value | 1 | |
Unfunded Commitments | 0 | |
Funded Commitments | 0 | 0 |
Funded Other | 0 | 0 |
Indirect investments (measured at NAV) | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value | 44 | |
Unfunded Commitments | 11 | |
Funded Commitments | 0 | 2 |
Funded Other | $ 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 | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Other investments | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Beginning of Period Balance | $ 9 | $ 13 |
Gains (Losses) Included in Other Comprehensive Income | 0 | 0 |
Gains (Losses) Included in Earnings | (2) | (1) |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Settlements | 0 | 0 |
Transfers Other | 0 | 0 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | (3) |
End of Period Balance | 7 | 9 |
Unrealized Gains (Losses) Included in Earnings | (2) | (1) |
Other investments | Principal investments, Direct | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Beginning of Period Balance | 1 | 1 |
Gains (Losses) Included in Other Comprehensive Income | 0 | 0 |
Gains (Losses) Included in Earnings | 0 | 0 |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Settlements | 0 | 0 |
Transfers Other | 0 | 0 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
End of Period Balance | 1 | 1 |
Unrealized Gains (Losses) Included in Earnings | 0 | 0 |
Securities available for sale | Other securities | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Beginning of Period Balance | 13 | |
Gains (Losses) Included in Other Comprehensive Income | 9 | |
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 | 22 | |
Unrealized Gains (Losses) Included in Earnings | 0 | |
Interest rate | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Beginning of Period Balance | 33 | 56 |
Gains (Losses) Included in Other Comprehensive Income | 0 | 0 |
Gains (Losses) Included in Earnings | (11) | (22) |
Purchases | 1 | 0 |
Sales | 0 | (4) |
Settlements | 0 | 0 |
Transfers Other | 0 | 0 |
Transfers into Level 3 | 29 | 7 |
Transfers out of Level 3 | (9) | (7) |
End of Period Balance | 43 | 30 |
Unrealized Gains (Losses) Included in Earnings | 0 | 0 |
Credit | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Beginning of Period Balance | (6) | (10) |
Gains (Losses) Included in Other Comprehensive Income | 0 | 0 |
Gains (Losses) Included in Earnings | 1 | 5 |
Purchases | 0 | 0 |
Sales | 0 | |
Settlements | 0 | 0 |
Transfers Other | 0 | 0 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | |
End of Period Balance | (5) | (5) |
Unrealized Gains (Losses) Included in Earnings | 0 | 0 |
Other | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Beginning of Period Balance | 5 | 32 |
Gains (Losses) Included in Other Comprehensive Income | 0 | 0 |
Gains (Losses) Included in Earnings | 0 | (4) |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Settlements | 0 | 0 |
Transfers Other | (7) | 22 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
End of Period Balance | (2) | 6 |
Unrealized Gains (Losses) Included in Earnings | 0 | 0 |
Loans held for sale (residential) | ||
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 | (1) | |
Settlements | 0 | |
Transfers Other | 1 | |
Transfers into Level 3 | 0 | |
Transfers out of Level 3 | 0 | |
End of Period Balance | 0 | |
Unrealized Gains (Losses) Included in Earnings | 0 | |
Loans, net of unearned income (residential) | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Beginning of Period Balance | 11 | 11 |
Gains (Losses) Included in Other Comprehensive Income | 0 | 0 |
Gains (Losses) Included in Earnings | 0 | 0 |
Purchases | 0 | 0 |
Sales | 0 | (1) |
Settlements | 0 | 0 |
Transfers Other | 0 | 1 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
End of Period Balance | 11 | 11 |
Unrealized Gains (Losses) Included in Earnings | $ 0 | $ 0 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other equity investments | $ 184,000,000 | $ 173,000,000 |
Impairment loss | 0 | |
Loans, net of allowance | 105,495,000,000 | 100,793,000,000 |
Discontinued Operations | Education Lending | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans at fair value | 2,000,000 | 2,000,000 |
Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans at fair value | 11,000,000 | 11,000,000 |
Carrying Amount | Discontinued Operations | Education Lending | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans, net of allowance | 531,000,000 | 567,000,000 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans at fair value | 11,000,000 | 11,000,000 |
Fair Value | Nonrecurring | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Liabilities measured at fair value on non recurring basis | 0 | 0 |
Fair Value | Discontinued Operations | Education Lending | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans, net of allowance | 457,000,000 | 486,000,000 |
Level 3 | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans at fair value | $ 11,000,000 | $ 11,000,000 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Nonrecurring Basis (Details) - Nonrecurring - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
ASSETS MEASURED ON A NONRECURRING BASIS | ||
Collateral-dependent loans | $ 37 | $ 28 |
Loans held for sale | 51 | 0 |
Accrued income and other assets | 12 | 80 |
Total assets at fair value | 100 | 108 |
Level 1 | ||
ASSETS MEASURED ON A NONRECURRING BASIS | ||
Collateral-dependent loans | 0 | 0 |
Loans held for sale | 0 | 0 |
Accrued income and other assets | 0 | 0 |
Total assets at fair value | 0 | 0 |
Level 2 | ||
ASSETS MEASURED ON A NONRECURRING BASIS | ||
Collateral-dependent loans | 0 | 0 |
Loans held for sale | 0 | 0 |
Accrued income and other assets | 0 | 0 |
Total assets at fair value | 0 | 0 |
Level 3 | ||
ASSETS MEASURED ON A NONRECURRING BASIS | ||
Collateral-dependent loans | 37 | 28 |
Loans held for sale | 51 | 0 |
Accrued income and other assets | 12 | 80 |
Total assets at fair value | $ 100 | $ 108 |
Fair Value Measurements - Quant
Fair Value Measurements - Quantitative Information about Level 3 Fair Value Measurements (Details) $ in Millions | Mar. 31, 2022USD ($) | Dec. 31, 2021USD ($) |
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Derivative assets | $ 2,739 | $ 1,962 |
Insignificant level 3 assets, net of liabilities | 1 | 9 |
Mortgage servicing assets excluded from OREO | 1 | 67 |
Recurring | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Derivative assets | 2,739 | 1,962 |
Loans held for sale | 114 | 281 |
Nonrecurring | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Impaired loans | 37 | 28 |
Loans held for sale | 51 | 0 |
Level 3 | Recurring | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Derivative assets | 45 | 39 |
Loans held for sale | 0 | 0 |
Level 3 | Nonrecurring | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Impaired loans | 37 | 28 |
Loans held for sale | 51 | 0 |
Valuation, Market Comparable Pricing | Level 3 | Recurring | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Loans, net of unearned income (residential) | 11 | 11 |
Valuation, Market Comparable Pricing | Level 3 | Nonrecurring | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Loans held for sale | $ 51 | $ 0 |
Valuation, Market Comparable Pricing | Measurement Input, Comparability Adjustment | Level 3 | Recurring | Minimum | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Loans, net of unearned income (residential), measurement input | 0.6450 | 0.6450 |
Valuation, Market Comparable Pricing | Measurement Input, Comparability Adjustment | Level 3 | Recurring | Maximum | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Loans, net of unearned income (residential), measurement input | 0.9788 | 0.9730 |
Valuation, Market Comparable Pricing | Measurement Input, Comparability Adjustment | Level 3 | Recurring | Weighted Average | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Loans, net of unearned income (residential), measurement input | 0.9233 | 0.9424 |
Valuation, Fair Value Of Underlying Collateral | Level 3 | Nonrecurring | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Impaired loans | $ 37 | $ 28 |
Valuation, Fair Value Of Underlying Collateral | Measurement Input, Discount Rate | Level 3 | Nonrecurring | Minimum | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Impaired loans, measurement input | 0 | 0 |
Valuation, Fair Value Of Underlying Collateral | Measurement Input, Discount Rate | Level 3 | Nonrecurring | Maximum | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Impaired loans, measurement input | 0.6500 | 0.1000 |
Valuation, Fair Value Of Underlying Collateral | Measurement Input, Discount Rate | Level 3 | Nonrecurring | Weighted Average | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Impaired loans, measurement input | 0.1900 | 0.0800 |
Valuation, Appraised Value | Level 3 | Nonrecurring | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
OREO and other Level 3 assets | $ 11 | $ 13 |
Interest rate | Valuation Technique, Discounted Cash Flow | Level 3 | Recurring | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Derivative assets | $ 43 | $ 33 |
Interest rate | Valuation Technique, Discounted Cash Flow | Measurement Input, Default Rate | Level 3 | Recurring | Minimum | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Derivative assets, measurement input | 0.0002 | 0.0002 |
Interest rate | Valuation Technique, Discounted Cash Flow | Measurement Input, Default Rate | Level 3 | Recurring | Maximum | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Derivative assets, measurement input | 1 | 1 |
Interest rate | Valuation Technique, Discounted Cash Flow | Measurement Input, Default Rate | Level 3 | Recurring | Weighted Average | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Derivative assets, measurement input | 0.1170 | 0.0888 |
Interest rate | Valuation Technique, Discounted Cash Flow | Measurement Input, Loss Given Default | Level 3 | Recurring | Minimum | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Derivative assets, measurement input | 0 | 0 |
Interest rate | Valuation Technique, Discounted Cash Flow | Measurement Input, Loss Given Default | Level 3 | Recurring | Maximum | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Derivative assets, measurement input | 1 | 1 |
Interest rate | Valuation Technique, Discounted Cash Flow | Measurement Input, Loss Given Default | Level 3 | Recurring | Weighted Average | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Derivative assets, measurement input | 0.500 | 0.500 |
Fair Value Measurements - Fai_3
Fair Value Measurements - Fair Value Disclosures of Financial Instruments (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 | |
ASSETS | |||
Trading account assets | $ 848 | $ 701 | |
Derivative assets | 2,739 | 1,962 | |
Securities available for sale | 43,681 | 45,364 | |
Held to maturity securities | 6,871 | 7,539 | |
Loans, net of unearned income | 106,600 | 101,854 | |
Loans held for sale | [1] | 1,170 | 2,729 |
LIABILITIES | |||
Long-term debt | 10,814 | 12,042 | |
Carrying Amount | |||
ASSETS | |||
Trading account assets | 848 | 701 | |
Other investments | 722 | 639 | |
Loans, net of unearned income (residential) | 11 | 11 | |
Loans held for sale | 114 | 281 | |
Securities available for sale | 43,681 | 45,364 | |
Held to maturity securities | 6,871 | 7,539 | |
Loans, net of unearned income | 105,484 | 100,782 | |
Loans held for sale | 1,056 | 2,448 | |
Short-term investments | 0 | ||
Cash and short-term investments | 4,565 | 11,923 | |
LIABILITIES | |||
Time deposits | 3,570 | 3,858 | |
Short-term borrowings | 2,821 | 761 | |
Long-term debt | 10,814 | 12,042 | |
Deposits with no stated maturity | 145,093 | 148,714 | |
Fair Value | |||
ASSETS | |||
Trading account assets | 848 | 701 | |
Other investments | 722 | 639 | |
Loans, net of unearned income (residential) | 11 | 11 | |
Loans held for sale | 114 | 281 | |
Securities available for sale | 43,681 | 45,364 | |
Held to maturity securities | 6,687 | 7,665 | |
Loans, net of unearned income | 104,242 | 100,428 | |
Loans held for sale | 1,056 | 2,448 | |
Short-term investments | 0 | ||
Cash and short-term investments | 4,565 | 11,923 | |
LIABILITIES | |||
Time deposits | 3,576 | 3,866 | |
Short-term borrowings | 2,821 | 761 | |
Long-term debt | 10,831 | 12,518 | |
Deposits with no stated maturity | 145,093 | 148,714 | |
Level 1 | Fair Value | |||
ASSETS | |||
Trading account assets | 0 | 0 | |
Other investments | 6 | 24 | |
Loans, net of unearned income (residential) | 0 | 0 | |
Loans held for sale | 0 | 0 | |
Securities available for sale | 0 | 0 | |
Held to maturity securities | 0 | 0 | |
Loans, net of unearned income | 0 | 0 | |
Loans held for sale | 0 | 0 | |
Short-term investments | 0 | ||
Cash and short-term investments | 4,565 | 11,923 | |
LIABILITIES | |||
Time deposits | 0 | 0 | |
Short-term borrowings | 69 | 75 | |
Long-term debt | 10,146 | 11,813 | |
Deposits with no stated maturity | 0 | 0 | |
Level 2 | Fair Value | |||
ASSETS | |||
Trading account assets | 848 | 701 | |
Other investments | 0 | 0 | |
Loans, net of unearned income (residential) | 0 | 0 | |
Loans held for sale | 114 | 281 | |
Securities available for sale | 43,681 | 45,364 | |
Held to maturity securities | 6,687 | 7,665 | |
Loans, net of unearned income | 0 | 0 | |
Loans held for sale | 0 | 0 | |
Short-term investments | 0 | ||
Cash and short-term investments | 0 | 0 | |
LIABILITIES | |||
Time deposits | 3,576 | 3,866 | |
Short-term borrowings | 2,752 | 686 | |
Long-term debt | 685 | 705 | |
Deposits with no stated maturity | 145,093 | 148,714 | |
Level 3 | Fair Value | |||
ASSETS | |||
Trading account assets | 0 | 0 | |
Other investments | 639 | 543 | |
Loans, net of unearned income (residential) | 11 | 11 | |
Loans held for sale | 0 | 0 | |
Securities available for sale | 0 | 0 | |
Held to maturity securities | 0 | 0 | |
Loans, net of unearned income | 104,242 | 100,428 | |
Loans held for sale | 1,056 | 2,448 | |
Short-term investments | 0 | ||
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 | |
Measured at NAV | Fair Value | |||
ASSETS | |||
Other investments | 77 | 72 | |
Derivatives Not Designated as Hedging Instruments | Carrying Amount | |||
ASSETS | |||
Derivative assets | 2,640 | 1,887 | |
LIABILITIES | |||
Derivative liabilities | 609 | 157 | |
Derivatives Not Designated as Hedging Instruments | Fair Value | |||
ASSETS | |||
Derivative assets | 2,640 | 1,887 | |
Derivative assets, Netting Adjustment | (433) | (320) | |
LIABILITIES | |||
Derivative liabilities | 609 | 157 | |
Derivative liabilities, Netting Adjustment | (2,727) | (1,526) | |
Derivatives Not Designated as Hedging Instruments | Level 1 | Fair Value | |||
ASSETS | |||
Derivative assets | 92 | 71 | |
LIABILITIES | |||
Derivative liabilities | 85 | 66 | |
Derivatives Not Designated as Hedging Instruments | Level 2 | Fair Value | |||
ASSETS | |||
Derivative assets | 2,937 | 2,096 | |
LIABILITIES | |||
Derivative liabilities | 3,242 | 1,610 | |
Derivatives Not Designated as Hedging Instruments | Level 3 | Fair Value | |||
ASSETS | |||
Derivative assets | 44 | 40 | |
LIABILITIES | |||
Derivative liabilities | 9 | 7 | |
Derivatives Designated as Hedging Instruments | Carrying Amount | |||
ASSETS | |||
Derivative assets | 99 | 75 | |
LIABILITIES | |||
Derivative liabilities | (11) | 4 | |
Derivatives Designated as Hedging Instruments | Fair Value | |||
ASSETS | |||
Derivative assets | 99 | 75 | |
Derivative assets, Netting Adjustment | 103 | 36 | |
LIABILITIES | |||
Derivative liabilities | (11) | 4 | |
Derivative liabilities, Netting Adjustment | 38 | 0 | |
Derivatives Designated as Hedging Instruments | Level 1 | Fair Value | |||
ASSETS | |||
Derivative assets | 0 | 0 | |
LIABILITIES | |||
Derivative liabilities | 0 | 0 | |
Derivatives Designated as Hedging Instruments | Level 2 | Fair Value | |||
ASSETS | |||
Derivative assets | (4) | 39 | |
LIABILITIES | |||
Derivative liabilities | (49) | 4 | |
Derivatives Designated as Hedging Instruments | Level 3 | Fair Value | |||
ASSETS | |||
Derivative assets | 0 | 0 | |
LIABILITIES | |||
Derivative liabilities | $ 0 | $ 0 | |
[1] | Total loans held for sale include real estate — residential mortgage loans held for sale at fair value of $114 million at March 31, 2022, and $281 million at December 31, 2021. |
Securities - Details of Securit
Securities - Details of Securities (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
SECURITIES AVAILABLE FOR SALE | ||
Amortized Cost | $ 46,557 | $ 45,893 |
Gross Unrealized Gains | 39 | 324 |
Gross Unrealized Losses | 2,915 | 853 |
Fair Value | 43,681 | 45,364 |
HELD-TO-MATURITY SECURITIES | ||
Amortized Cost | 6,871 | 7,539 |
Gross Unrealized Gains | 7 | 157 |
Gross Unrealized Losses | 191 | 31 |
Fair Value | 6,687 | 7,665 |
Accrued interest | 193 | 198 |
U.S. Treasury, agencies and corporations | ||
SECURITIES AVAILABLE FOR SALE | ||
Amortized Cost | 10,054 | 9,573 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 416 | 101 |
Fair Value | 9,638 | 9,472 |
Agency residential collateralized mortgage obligations | ||
SECURITIES AVAILABLE FOR SALE | ||
Amortized Cost | 22,255 | 21,430 |
Gross Unrealized Gains | 3 | 99 |
Gross Unrealized Losses | 1,619 | 410 |
Fair Value | 20,639 | 21,119 |
HELD-TO-MATURITY SECURITIES | ||
Amortized Cost | 1,983 | 2,196 |
Gross Unrealized Gains | 0 | 33 |
Gross Unrealized Losses | 67 | 0 |
Fair Value | 1,916 | 2,229 |
Agency residential mortgage-backed securities | ||
SECURITIES AVAILABLE FOR SALE | ||
Amortized Cost | 5,075 | 5,137 |
Gross Unrealized Gains | 9 | 37 |
Gross Unrealized Losses | 340 | 52 |
Fair Value | 4,744 | 5,122 |
HELD-TO-MATURITY SECURITIES | ||
Amortized Cost | 152 | 164 |
Gross Unrealized Gains | 0 | 6 |
Gross Unrealized Losses | 3 | 0 |
Fair Value | 150 | 170 |
Asset-backed securities (c) | ||
HELD-TO-MATURITY SECURITIES | ||
Amortized Cost | 2,172 | 2,485 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 89 | 31 |
Fair Value | 2,082 | 2,454 |
Debt securities, held-to-maturity, purchase of senior notes | 2,200 | 2,500 |
Other securities | ||
SECURITIES AVAILABLE FOR SALE | ||
Amortized Cost | 1 | 0 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 1 | 0 |
HELD-TO-MATURITY SECURITIES | ||
Amortized Cost | 15 | 16 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 15 | 16 |
Mortgage-backed securities | Agency commercial mortgage-backed securities | ||
SECURITIES AVAILABLE FOR SALE | ||
Amortized Cost | 9,172 | 9,753 |
Gross Unrealized Gains | 27 | 188 |
Gross Unrealized Losses | 540 | 290 |
Fair Value | 8,659 | 9,651 |
HELD-TO-MATURITY SECURITIES | ||
Amortized Cost | 2,549 | 2,678 |
Gross Unrealized Gains | 7 | 118 |
Gross Unrealized Losses | 32 | 0 |
Fair Value | 2,524 | 2,796 |
Securities available for sale | ||
HELD-TO-MATURITY SECURITIES | ||
Accrued interest | 64 | 59 |
Securities held-to-maturity | ||
HELD-TO-MATURITY SECURITIES | ||
Accrued interest | $ 14 | $ 15 |
Securities - Available for Sale
Securities - Available for Sale Securities (Unrealized Loss Position) (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Held-to-maturity securities: | ||
Temporarily impaired securities, fair value, less than 12 months | $ 36,256 | $ 29,680 |
Temporarily impaired securities, gross unrealized losses, less than 12 months | 2,001 | 568 |
Temporarily impaired securities, fair value, 12 months or longer | 9,968 | 5,511 |
Temporarily impaired securities, gross unrealized losses, 12 months or longer | 1,104 | 316 |
Temporarily impaired securities, fair value | 46,224 | 35,191 |
Temporarily impaired securities, gross unrealized losses | 3,105 | 884 |
U.S. Treasury, agencies and corporations | ||
Securities available for sale: | ||
Fair value, less than 12 months | 8,800 | 9,078 |
Gross unrealized losses, less than 12 months | 394 | 98 |
Fair value, 12 months or longer | 589 | 243 |
Gross unrealized losses, 12 months or longer | 22 | 3 |
Fair value | 9,389 | 9,321 |
Gross unrealized losses | 416 | 101 |
Held-to-maturity securities: | ||
Fair value, less than 12 months | 0 | |
Gross unrealized losses, less than 12 months | 0 | |
Fair value, 12 months or longer | 0 | |
Gross unrealized losses, 12 months or longer | 0 | |
Fair value | 0 | |
Gross unrealized losses | 0 | |
State And Political Subdivisions | ||
Held-to-maturity securities: | ||
Fair value, less than 12 months | 0 | |
Gross unrealized losses, less than 12 months | 0 | |
Fair value, 12 months or longer | 0 | |
Gross unrealized losses, 12 months or longer | 0 | |
Fair value | 0 | |
Gross unrealized losses | 0 | |
Agency residential collateralized mortgage obligations | ||
Securities available for sale: | ||
Fair value, less than 12 months | 16,751 | 12,603 |
Gross unrealized losses, less than 12 months | 1,138 | 315 |
Fair value, 12 months or longer | 3,460 | 1,255 |
Gross unrealized losses, 12 months or longer | 480 | 95 |
Fair value | 20,211 | 13,858 |
Gross unrealized losses | 1,618 | 410 |
Held-to-maturity securities: | ||
Fair value, less than 12 months | 1,905 | 96 |
Gross unrealized losses, less than 12 months | 67 | 0 |
Fair value, 12 months or longer | 0 | 0 |
Gross unrealized losses, 12 months or longer | 0 | 0 |
Fair value | 1,905 | 96 |
Gross unrealized losses | 67 | 0 |
Agency residential mortgage-backed securities | ||
Held-to-maturity securities: | ||
Fair value, less than 12 months | 150 | |
Gross unrealized losses, less than 12 months | 3 | |
Fair value, 12 months or longer | 0 | |
Gross unrealized losses, 12 months or longer | 0 | |
Fair value | 150 | |
Gross unrealized losses | 3 | |
Agency residential mortgage-backed securities | Maximum | ||
Held-to-maturity securities: | ||
Gross unrealized losses | 1 | |
Agency commercial mortgage-backed securities | ||
Securities available for sale: | ||
Fair value, less than 12 months | 1,973 | 1,645 |
Gross unrealized losses, less than 12 months | 58 | 75 |
Fair value, 12 months or longer | 4,808 | 3,834 |
Gross unrealized losses, 12 months or longer | 482 | 215 |
Fair value | 6,781 | 5,479 |
Gross unrealized losses | 540 | 290 |
Held-to-maturity securities: | ||
Fair value, less than 12 months | 1,393 | |
Gross unrealized losses, less than 12 months | 32 | |
Fair value, 12 months or longer | 0 | |
Gross unrealized losses, 12 months or longer | 0 | |
Fair value | 1,393 | |
Gross unrealized losses | 32 | |
Asset-backed securities (c) | ||
Held-to-maturity securities: | ||
Fair value, less than 12 months | 2,081 | 2,450 |
Gross unrealized losses, less than 12 months | 89 | 31 |
Fair value, 12 months or longer | 1 | 1 |
Gross unrealized losses, 12 months or longer | 0 | 0 |
Fair value | 2,082 | 2,451 |
Gross unrealized losses | 89 | 31 |
Asset-backed securities (c) | Maximum | ||
Held-to-maturity securities: | ||
Gross unrealized losses | 1 | |
Other securities | ||
Held-to-maturity securities: | ||
Fair value, less than 12 months | 7 | 15 |
Gross unrealized losses, less than 12 months | 0 | 0 |
Fair value, 12 months or longer | 3 | 0 |
Gross unrealized losses, 12 months or longer | 0 | 0 |
Fair value | 10 | 15 |
Gross unrealized losses | 0 | 0 |
Mortgage-backed securities | Agency residential mortgage-backed securities | ||
Securities available for sale: | ||
Fair value, less than 12 months | 3,196 | 3,793 |
Gross unrealized losses, less than 12 months | 220 | 49 |
Fair value, 12 months or longer | 1,107 | 178 |
Gross unrealized losses, 12 months or longer | 120 | 3 |
Fair value | 4,303 | 3,971 |
Gross unrealized losses | $ 340 | $ 52 |
Securities - Additional Informa
Securities - Additional Information (Details) $ in Billions | Mar. 31, 2022USD ($) |
Investments, Debt and Equity Securities [Abstract] | |
Securities pledged to secure securities sold under repurchase agreements | $ 14.4 |
Securities - Securities by Matu
Securities - Securities by Maturity (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Investments, Debt and Equity Securities [Abstract] | ||
Amortized Cost of Securities Available for sale, Due in one year or less | $ 275 | |
Amortized Cost of Securities Available for sale, Due after one through five years | 17,642 | |
Amortized Cost of Securities Available for sale, Due after five through ten years | 24,290 | |
Amortized Cost of Securities Available for sale, Due after ten years | 4,350 | |
Amortized Cost | 46,557 | |
Fair Value of Securities Available for sale, Due in one year or less | 277 | |
Fair Value of Securities Available for sale, Due after one through five years | 16,993 | |
Fair Value of Securities Available for sale, Due after five through ten years | 22,448 | |
Fair Value of Securities Available for sale, Due after ten years | 3,963 | |
Fair Value | 43,681 | $ 45,364 |
Amortized Cost of Held-to-Maturity Securities, Due in one year or less | 39 | |
Amortized Cost of Held-to-Maturity Securities, Due after one through five years | 4,861 | |
Amortized Cost of Held-to-Maturity Securities, Due after five through ten years | 1,971 | |
Amortized Cost of Held-to-Maturity Securities, Due after ten years | 0 | |
Amortized Cost | 6,871 | 7,539 |
Fair Value of Held-to-Maturity Securities, Due in one year or less | 40 | |
Fair Value of Held-to-Maturity Securities, Due after one through five years | 4,717 | |
Fair Value of Held-to-Maturity Securities, Due after five through ten years | 1,930 | |
Fair Value of Held-to-Maturity Securities, Due after ten years | 0 | |
Total Fair Value of Held-to-Maturity Securities | $ 6,687 | $ 7,665 |
Derivatives and Hedging Activ_3
Derivatives and Hedging Activities - Additional Information (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2022USD ($)ratingderivative | Dec. 31, 2021USD ($)rating | |
Credit Derivatives [Line Items] | ||
Derivative assets after effects of bilateral collateral and master netting agreements | $ 99 | |
Derivative liabilities after effects of bilateral collateral and master netting agreements | (11) | |
Derivative assets not designated as hedging instruments after effects of bilateral collateral and master netting agreements, and a reserve for potential future losses | 2,600 | |
Derivative liabilities not designated as hedging instruments after effects of bilateral collateral and master netting agreements, and a reserve for potential future losses | 609 | |
Reclassify of after-tax net gains on derivative instruments from AOCI | $ (124) | |
Length of time hedge in cash flow hedge | 12 months | |
Reclassification of net losses related to terminated cash flow hedges from AOCI to income | $ (3) | |
Maximum length of time over which forecasted transactions are hedged, years | 5 years 5 months 1 day | |
Cash collateral netted against derivative assets | $ 149 | $ 100 |
Collateral netted against derivative liabilities | 2,200 | 1,100 |
Gross exposure on derivatives, after taking into account the effects of bilateral collateral and master netting agreements | 209 | |
Net exposure on derivatives, after taking into account, the effects of bilateral collateral and master netting agreements | 305 | |
Over-collateralization on derivatives to broker-dealers and banks, after the application of master netting agreements and collateral | 303 | |
Additional collateral held in the form of securities | 2 | |
Default reserve associated with uncollateralized contracts | 19 | |
Gross exposure on derivatives after taking into account effects of master netting agreements | 2,600 | |
Net exposure on derivatives with clients after application of master netting agreements collateral and related reserve | 2,400 | |
Net liability position totaled | 5 | $ 11 |
Banking Subsidiary | ||
Credit Derivatives [Line Items] | ||
Net liability position totaled | 2,300 | |
Derivative assets included in net liability position | 265 | |
Derivative liabilities included in net liability position | 2,600 | |
Cash and securities collateral posted | $ 2,300 | |
Number of credit risk derivatives held | derivative | 0 | |
Banking Subsidiary | Unsecured Debt | ||
Credit Derivatives [Line Items] | ||
Number of ratings above noninvestment | rating | 4 | 4 |
Banking Subsidiary | Maximum | Unsecured Debt | ||
Credit Derivatives [Line Items] | ||
Payments to terminate contracts (less than for the $1 million) | $ 4 | $ 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 | Mar. 31, 2022 | Dec. 31, 2021 |
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 141,039 | $ 137,761 |
Derivative assets, netting adjustments | (330) | (284) |
Derivative Assets, net | 2,739 | 1,961 |
Derivative liabilities, netting adjustments | (2,689) | (1,526) |
Derivative Liabilities, net | 598 | 161 |
Derivatives Not Designated as Hedging Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 105,248 | 99,107 |
Derivative Assets | 3,073 | 2,207 |
Derivative Liabilities | 3,336 | 1,683 |
Interest rate | Derivatives Designated as Hedging Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 35,791 | 38,654 |
Derivative Assets | (4) | 39 |
Derivative Liabilities | (49) | 4 |
Interest rate | Derivatives Not Designated as Hedging Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 75,463 | 72,088 |
Derivative Assets | 335 | 768 |
Derivative Liabilities | 611 | 249 |
Foreign exchange | Derivatives Not Designated as Hedging Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 9,125 | 9,073 |
Derivative Assets | 102 | 81 |
Derivative Liabilities | 96 | 76 |
Commodity | Derivatives Not Designated as Hedging Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 17,643 | 14,151 |
Derivative Assets | 2,613 | 1,330 |
Derivative Liabilities | 2,613 | 1,335 |
Credit | Derivatives Not Designated as Hedging Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 204 | 465 |
Derivative Assets | 1 | 1 |
Derivative Liabilities | 6 | 12 |
Other | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 1 | |
Other | Derivatives Not Designated as Hedging Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 2,813 | 3,330 |
Derivative Assets | 22 | 27 |
Derivative Liabilities | 10 | 11 |
Net derivatives | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 141,039 | 137,761 |
Derivative Assets, net | 2,739 | 1,962 |
Derivative Liabilities, net | 598 | 161 |
Other collateral | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 0 | 0 |
Derivative Assets, net | 0 | (1) |
Derivative Liabilities, net | $ 0 | $ 0 |
Derivatives and Hedging Activ_5
Derivatives and Hedging Activities - Cumulative Basis Adjustments on Fair Value Hedges (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Derivatives, Fair Value [Line Items] | ||
Fair Value | $ 43,681 | $ 45,364 |
Long-term debt | Interest rate | ||
Derivatives, Fair Value [Line Items] | ||
Carrying amount of hedged item | 7,454 | 7,553 |
Hedge accounting basis adjustment | (102) | 138 |
Securities available for sale | Interest rate | ||
Derivatives, Fair Value [Line Items] | ||
Carrying amount of hedged item | 2,805 | 6,280 |
Hedge accounting basis adjustment | 119 | 134 |
Fair Value | 3,500 | 7,700 |
Derivatives Not Designated as Hedging Instruments | Long-term debt | Interest rate | ||
Derivatives, Fair Value [Line Items] | ||
Hedge accounting basis adjustment | $ (7) | $ (7) |
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 | ||
Mar. 31, 2022 | Mar. 31, 2021 | ||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Interest expense — Long-term debt | $ 49 | $ 60 | |
Interest income — Loans | 837 | 889 | |
Interest Income - securities | 173 | 130 | |
Investment banking and debt placement fees | 163 | 162 | |
Deposits | 14 | 21 | |
Other income | [1] | (4) | 51 |
Net gain (loss) on cash flow hedging relationships | |||
Net Gains (Losses) Reclassified From OCI Into Income | 65 | 89 | |
Interest rate | Interest expense – long-term debt | Fair Value Hedging | |||
Net gains (losses) on fair value hedging relationships | |||
Recognized on hedged items | 240 | 204 | |
Recognized on derivatives designated as hedging instruments | (216) | (166) | |
Net income (expense) recognized on fair value hedges | 24 | 38 | |
Interest rate | Interest expense – long-term debt | Cash Flow Hedging | |||
Net gain (loss) on cash flow hedging relationships | |||
Realized gains (losses) (pre-tax) reclassified from AOCI into net income | (1) | (1) | |
Net income (expense) recognized on cash flow hedges | (1) | (1) | |
Interest rate | Interest income – loans | Fair Value Hedging | |||
Net gains (losses) on fair value hedging relationships | |||
Recognized on hedged items | 0 | 0 | |
Recognized on derivatives designated as hedging instruments | 0 | 0 | |
Net income (expense) recognized on fair value hedges | 0 | 0 | |
Interest rate | Interest income – loans | Cash Flow Hedging | |||
Net gain (loss) on cash flow hedging relationships | |||
Realized gains (losses) (pre-tax) reclassified from AOCI into net income | 64 | 89 | |
Net Gains (Losses) Reclassified From OCI Into Income | 64 | 89 | |
Net income (expense) recognized on cash flow hedges | 64 | 89 | |
Interest rate | Interest Income - securities | Fair Value Hedging | |||
Net gains (losses) on fair value hedging relationships | |||
Recognized on hedged items | (276) | (266) | |
Recognized on derivatives designated as hedging instruments | 282 | 267 | |
Net income (expense) recognized on fair value hedges | 6 | 1 | |
Interest rate | Interest Income - securities | Cash Flow Hedging | |||
Net gain (loss) on cash flow hedging relationships | |||
Realized gains (losses) (pre-tax) reclassified from AOCI into net income | 0 | 0 | |
Net income (expense) recognized on cash flow hedges | 0 | 0 | |
Interest rate | Investment banking and debt placement fees | Fair Value Hedging | |||
Net gains (losses) on fair value hedging relationships | |||
Recognized on hedged items | 0 | 0 | |
Recognized on derivatives designated as hedging instruments | 0 | 0 | |
Net income (expense) recognized on fair value hedges | 0 | 0 | |
Interest rate | Investment banking and debt placement fees | Cash Flow Hedging | |||
Net gain (loss) on cash flow hedging relationships | |||
Net income (expense) recognized on cash flow hedges | 2 | 1 | |
Interest rate | Investment banking and debt placement fees | Cash Flow Hedging | |||
Net gain (loss) on cash flow hedging relationships | |||
Net Gains (Losses) Reclassified From OCI Into Income | $ 2 | $ 1 | |
[1] | For the three months ended March 31, 2022, and March 31, 2021, we had no net securities gains (losses). For the three months ended March 31, 2022, and March 31, 2021, 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 | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Derivatives, Fair Value [Line Items] | ||
Net Gains (Losses) Recognized in OCI | $ (658) | $ (190) |
Net Gains (Losses) Reclassified From OCI Into Income | 65 | 89 |
Interest income – loans | Interest rate | Cash Flow Hedges | ||
Derivatives, Fair Value [Line Items] | ||
Net Gains (Losses) Recognized in OCI | (670) | (203) |
Net Gains (Losses) Reclassified From OCI Into Income | 64 | 89 |
Interest expense — Long-term debt | Interest rate | Cash Flow Hedges | ||
Derivatives, Fair Value [Line Items] | ||
Net Gains (Losses) Recognized in OCI | 3 | 3 |
Net Gains (Losses) Reclassified From OCI Into Income | (1) | (1) |
Investment banking and debt placement fees | Interest rate | Cash Flow Hedges | ||
Derivatives, Fair Value [Line Items] | ||
Net Gains (Losses) Recognized in OCI | 9 | 10 |
Net Gains (Losses) Reclassified From OCI Into Income | $ 2 | $ 1 |
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 | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total net gains (losses) | $ 35 | $ (4) |
Interest rate | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total net gains (losses) | 22 | 6 |
Foreign exchange | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total net gains (losses) | 13 | 11 |
Commodity | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total net gains (losses) | 5 | 4 |
Credit | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total net gains (losses) | (8) | (4) |
Other | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total net gains (losses) | 3 | (21) |
Corporate services income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total net gains (losses) | 33 | 26 |
Corporate services income | Interest rate | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total net gains (losses) | 13 | 6 |
Corporate services income | Foreign exchange | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total net gains (losses) | 13 | 11 |
Corporate services income | Commodity | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total net gains (losses) | 5 | 4 |
Corporate services income | Credit | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total net gains (losses) | 2 | 5 |
Corporate services income | Other | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total net gains (losses) | 0 | 0 |
Consumer mortgage income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total net gains (losses) | (4) | 1 |
Consumer mortgage income | Interest rate | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total net gains (losses) | 0 | 0 |
Consumer mortgage income | Foreign exchange | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total net gains (losses) | 0 | 0 |
Consumer mortgage income | Commodity | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total net gains (losses) | 0 | 0 |
Consumer mortgage income | Credit | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total net gains (losses) | 0 | 0 |
Consumer mortgage income | Other | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total net gains (losses) | (4) | 1 |
Other income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total net gains (losses) | 6 | (31) |
Other income | Interest rate | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total net gains (losses) | 9 | 0 |
Other income | Foreign exchange | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total net gains (losses) | 0 | 0 |
Other income | Commodity | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total net gains (losses) | 0 | 0 |
Other income | Credit | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total net gains (losses) | (10) | (9) |
Other income | Other | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total net gains (losses) | $ 7 | $ (22) |
Derivatives and Hedging Activ_9
Derivatives and Hedging Activities - Fair Value of Derivative Assets by Type (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Credit Derivatives [Line Items] | ||
Derivative assets before collateral | $ 2,590 | $ 1,862 |
Plus(Less): Related collateral | 149 | 100 |
Total derivative assets | 2,739 | 1,962 |
Interest rate | ||
Credit Derivatives [Line Items] | ||
Derivative assets before collateral | 241 | 696 |
Foreign exchange | ||
Credit Derivatives [Line Items] | ||
Derivative assets before collateral | 42 | 31 |
Commodity | ||
Credit Derivatives [Line Items] | ||
Derivative assets before collateral | 2,285 | 1,108 |
Credit | ||
Credit Derivatives [Line Items] | ||
Derivative assets before collateral | 0 | 0 |
Other | ||
Credit Derivatives [Line Items] | ||
Derivative assets before collateral | $ 22 | $ 27 |
Derivatives and Hedging Acti_10
Derivatives and Hedging Activities - Credit Derivatives Sold and Held (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Credit Derivatives [Line Items] | ||
Notional Amount | $ 75 | $ 149 |
Payment / Performance Risk | 0.00% | 0.00% |
Other | ||
Credit Derivatives [Line Items] | ||
Notional Amount | $ 75 | $ 149 |
Average Term (Years) | 15 years 29 days | 13 years 10 months 9 days |
Payment / Performance Risk | 4.02% | 3.15% |
Derivatives and Hedging Acti_11
Derivatives and Hedging Activities - Credit Risk Contingent Feature (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Credit Derivatives [Line Items] | ||
Additional collateral aggregate fair value | $ 2 | |
Standard & Poor's, A- Rating | One rating downgrade | ||
Credit Derivatives [Line Items] | ||
Additional collateral aggregate fair value | 2 | $ 3 |
Standard & Poor's, A- Rating | Two rating downgrades | ||
Credit Derivatives [Line Items] | ||
Additional collateral aggregate fair value | 2 | 3 |
Standard & Poor's, A- Rating | Three rating downgrades | ||
Credit Derivatives [Line Items] | ||
Additional collateral aggregate fair value | 2 | 3 |
Moody's, A3 Rating | One rating downgrade | ||
Credit Derivatives [Line Items] | ||
Additional collateral aggregate fair value | 2 | 3 |
Moody's, A3 Rating | Two rating downgrades | ||
Credit Derivatives [Line Items] | ||
Additional collateral aggregate fair value | 2 | 3 |
Moody's, A3 Rating | Three rating downgrades | ||
Credit Derivatives [Line Items] | ||
Additional collateral aggregate fair value | $ 2 | $ 3 |
Mortgage Servicing Assets - Cha
Mortgage Servicing Assets - Changes in Carrying Amount of Mortgage Servicing Assets (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Commercial Mortgage Backed Securities | ||
Servicing Asset at Amortized Cost, Balance [Roll Forward] | ||
Balance at beginning of period | $ 634 | $ 578 |
Servicing retained from loan sales | 30 | 29 |
Purchases | 11 | 7 |
Amortization | (31) | (29) |
Temporary (impairments) recoveries | 0 | 3 |
Balance at end of period | 644 | 588 |
Fair value at end of period | 846 | 682 |
Agency residential mortgage-backed securities | ||
Servicing Asset at Amortized Cost, Balance [Roll Forward] | ||
Balance at beginning of period | 93 | 58 |
Servicing retained from loan sales | 11 | 11 |
Purchases | 0 | 0 |
Amortization | (4) | (5) |
Temporary (impairments) recoveries | 1 | 8 |
Balance at end of period | 101 | 72 |
Fair value at end of period | $ 116 | $ 77 |
Mortgage Servicing Assets - Sch
Mortgage Servicing Assets - Schedule of Range and Weighted-Average of Significant Unobservable Inputs (Details) - Discounted cash flow - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Commercial Mortgage Backed Securities | Minimum | ||
Servicing Assets at Fair Value [Line Items] | ||
Expected defaults | 1.00% | 1.01% |
Discount rate | 8.34% | 7.42% |
Escrow earn rate | 2.06% | 0.94% |
Loan assumption rate | 0.00% | 0.00% |
Commercial Mortgage Backed Securities | Maximum | ||
Servicing Assets at Fair Value [Line Items] | ||
Expected defaults | 2.00% | 2.00% |
Discount rate | 10.32% | 10.59% |
Escrow earn rate | 2.49% | 1.22% |
Loan assumption rate | 1.64% | 1.75% |
Commercial Mortgage Backed Securities | Weighted Average | ||
Servicing Assets at Fair Value [Line Items] | ||
Expected defaults | 1.12% | 1.18% |
Discount rate | 9.52% | 9.20% |
Escrow earn rate | 2.31% | 1.10% |
Loan assumption rate | 1.29% | 1.44% |
Agency residential mortgage-backed securities | Minimum | ||
Servicing Assets at Fair Value [Line Items] | ||
Discount rate | 7.50% | 7.51% |
Servicing cost | $ 62 | $ 62 |
Prepayment speed | 5.84% | 10.55% |
Agency residential mortgage-backed securities | Maximum | ||
Servicing Assets at Fair Value [Line Items] | ||
Discount rate | 8.52% | 8.63% |
Servicing cost | $ 8,075 | $ 4,375 |
Prepayment speed | 59.51% | 50.81% |
Agency residential mortgage-backed securities | Weighted Average | ||
Servicing Assets at Fair Value [Line Items] | ||
Discount rate | 7.53% | 7.55% |
Servicing cost | $ 67.46 | $ 72.48 |
Prepayment speed | 8.82% | 12.82% |
Mortgage Servicing Assets - Add
Mortgage Servicing Assets - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Commercial Mortgage Backed Securities | ||
Servicing Assets at Fair Value [Line Items] | ||
Contractual fee income from servicing commercial mortgage loans | $ 67 | $ 61 |
Amortization of servicing commercial mortgage loans | 31 | 29 |
Residential mortgage-backed securities | ||
Servicing Assets at Fair Value [Line Items] | ||
Contractual fee income from servicing commercial mortgage loans | 10 | 10 |
Amortization of servicing commercial mortgage loans | $ 4 | $ 5 |
Leases - Components of Equipmen
Leases - Components of Equipment Leasing Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Sales-type and direct financing leases | ||
Interest income on lease receivable | $ 16 | $ 23 |
Interest income related to accretion of unguaranteed residual asset | 4 | 2 |
Total sales-type and direct financing lease income | 20 | 25 |
Operating leases | ||
Operating lease income related to lease payments | 29 | 32 |
Other operating leasing gains | 4 | 6 |
Total operating lease income and other leasing gains | 32 | 38 |
Total lease income | $ 52 | $ 63 |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 2,693 | $ 2,673 |
Goodwill acquired | 20 | |
XUP acquisition measurement period adjustment | 1 | |
Ending balance | 2,694 | 2,693 |
Consumer Bank | ||
Goodwill [Roll Forward] | ||
Beginning balance | 1,761 | 1,761 |
Goodwill acquired | 0 | |
XUP acquisition measurement period adjustment | 0 | |
Ending balance | 1,761 | 1,761 |
Commercial Bank | ||
Goodwill [Roll Forward] | ||
Beginning balance | 932 | 912 |
Goodwill acquired | 20 | |
XUP acquisition measurement period adjustment | 1 | |
Ending balance | $ 933 | $ 932 |
Variable Interest Entities - Ad
Variable Interest Entities - Additional Information (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Variable Interest Entity [Line Items] | |||
VIE, assets that can only be used to settle obligations | $ 181,221,000,000 | $ 186,346,000,000 | |
VIE, liabilities | 165,913,000,000 | 168,923,000,000 | |
Recurring | |||
Variable Interest Entity [Line Items] | |||
Other investments | 90,000,000 | 105,000,000 | |
Variable Interest Entity, Not Primary Beneficiary | |||
Variable Interest Entity [Line Items] | |||
VIE, assets that can only be used to settle obligations | 2,523,000,000 | 2,827,000,000 | |
VIE, liabilities | 1,000,000 | 1,000,000 | |
Tax credit of investment | $ 47,000,000 | ||
Variable Interest Entity, Not Primary Beneficiary | Qualified affordable housing projects investment | |||
Variable Interest Entity [Line Items] | |||
VIE, liabilities | 675,000,000 | 675,000,000 | |
Variable Interest Entity, Not Primary Beneficiary | Other Unconsolidated Variable Interest Entities | |||
Variable Interest Entity [Line Items] | |||
Other investments | 2,200,000,000 | ||
Variable Interest Entity, Not Primary Beneficiary | Accrued Income And Other Assets | |||
Variable Interest Entity [Line Items] | |||
VIE, assets that can only be used to settle obligations | 1,600,000,000 | 1,600,000,000 | |
Variable Interest Entity, Not Primary Beneficiary | Investments | |||
Variable Interest Entity [Line Items] | |||
Amortization of investment | 46,000,000 | $ 50,000,000 | |
Tax credit of investment | 45,000,000 | ||
Variable Interest Entity, Primary Beneficiary | Investments | |||
Variable Interest Entity [Line Items] | |||
VIE, assets that can only be used to settle obligations | 0 | 0 | |
VIE, liabilities | 0 | 0 | |
Measured at NAV | Variable Interest Entity, Not Primary Beneficiary | Recurring | Principal Investments, Indirect | |||
Variable Interest Entity [Line Items] | |||
Other investments | $ 44,000,000 | $ 45,000,000 |
Variable Interest Entities - Su
Variable Interest Entities - Summary of Variable Interest Entities Information (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Variable Interest Entity [Line Items] | ||
Total Assets | $ 181,221 | $ 186,346 |
Total Liabilities | 165,913 | 168,923 |
Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Total Assets | 2,523 | 2,827 |
Total Liabilities | 1 | 1 |
Variable Interest Entity, Not Primary Beneficiary | LIHTC investments | ||
Variable Interest Entity [Line Items] | ||
Total Assets | 7,816 | 7,839 |
Total Liabilities | 3,265 | 3,252 |
Maximum Exposure to Loss | 2,005 | 1,985 |
Variable Interest Entity, Not Primary Beneficiary | Principal Investments, Indirect | ||
Variable Interest Entity [Line Items] | ||
Total Assets | 8,277 | 8,437 |
Total Liabilities | 232 | 178 |
Maximum Exposure to Loss | $ 55 | $ 57 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Income Tax Contingency [Line Items] | |||
Effective tax rate (as a percent) | 16.70% | 19.40% | |
Combined federal and state statutory tax rate (as a percent) | 23.70% | ||
Valuation allowance | $ 12 | ||
Accrued Income And Other Assets | |||
Income Tax Contingency [Line Items] | |||
Net deferred tax assets | 801 | $ 189 | |
Key Corp | |||
Income Tax Contingency [Line Items] | |||
Unrecognized tax benefits | 46 | ||
First Niagara Bank, N.A. | |||
Income Tax Contingency [Line Items] | |||
Allocated bad debt deductions | $ 92 |
Acquisitions and Discontinued_2
Acquisitions and Discontinued Operations (Details) - USD ($) $ in Millions | Nov. 19, 2021 | Dec. 31, 2021 | Mar. 31, 2022 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Goodwill acquired | $ 20 | ||
Discontinued Operations | Government Guaranteed Loans | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Loans included in divestiture | $ 567 | $ 531 | |
XUP | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Goodwill acquired | $ 20.6 |
Securities Financing Activiti_3
Securities Financing Activities (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Securities Financing Transaction [Line Items] | ||
Reverse repurchase agreements | $ 0 | $ 0 |
Securities borrowed | 0 | 0 |
Total | 0 | 0 |
Repurchase agreements | 0 | 0 |
Total | 0 | 0 |
Collateral | ||
Securities Financing Transaction [Line Items] | ||
Reverse repurchase agreements | 0 | (5) |
Securities borrowed | (500) | (500) |
Total | (500) | (505) |
Repurchase agreements | (594) | (167) |
Total | (594) | (167) |
Federal Agency CMOs | ||
Securities Financing Transaction [Line Items] | ||
Assets pledged as collateral | 243 | |
Liabilities pledged as collateral | 594 | |
Gross Amount Presented in Balance Sheet | ||
Securities Financing Transaction [Line Items] | ||
Reverse repurchase agreements | 4 | 11 |
Securities borrowed | 500 | 500 |
Total | 504 | 511 |
Repurchase agreements | 598 | 173 |
Total | 598 | 173 |
Netting Adjustments | ||
Securities Financing Transaction [Line Items] | ||
Reverse repurchase agreements | (4) | (6) |
Securities borrowed | 0 | 0 |
Total | (4) | (6) |
Repurchase agreements | (4) | (6) |
Total | $ (4) | $ (6) |
Employee Benefits - Net Pension
Employee Benefits - Net Pension Cost (Benefit) for All Funded and Unfunded Plans (Details) - Pension Plans - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Interest cost on PBO | $ 7 | $ 6 |
Expected return on plan assets | (7) | (7) |
Amortization of losses | 4 | 5 |
Settlement loss | 0 | 0 |
Net pension cost | $ 4 | $ 4 |
Trust Preferred Securities Is_3
Trust Preferred Securities Issued by Unconsolidated Subsidiaries (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Common Stock | $ 1,257 | $ 1,257 |
Debentures adjustments related to financial instrument hedging | 38 | 52 |
KeyCorp Capital I | ||
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 (as a percent) | 0.954% | |
KeyCorp Capital II | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Trust Preferred Securities, Net of Discount | $ 126 | |
Common Stock | 4 | |
Principal Amount of of Debentures, Net of Discount | $ 130 | |
Interest Rate of Trust Preferred Securities and Debentures (as a percent) | 6.875% | |
KeyCorp Capital III | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Trust Preferred Securities, Net of Discount | $ 97 | |
Common Stock | 4 | |
Principal Amount of of Debentures, Net of Discount | $ 101 | |
Interest Rate of Trust Preferred Securities and Debentures (as a percent) | 7.75% | |
HNC Statutory Trust III | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Trust Preferred Securities, Net of Discount | $ 20 | |
Common Stock | 1 | |
Principal Amount of of Debentures, Net of Discount | $ 21 | |
Interest Rate of Trust Preferred Securities and Debentures (as a percent) | 1.88% | |
Willow Grove Statutory Trust I | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Trust Preferred Securities, Net of Discount | $ 20 | |
Common Stock | 1 | |
Principal Amount of of Debentures, Net of Discount | $ 21 | |
Interest Rate of Trust Preferred Securities and Debentures (as a percent) | 1.579% | |
HNC Statutory Trust IV | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Trust Preferred Securities, Net of Discount | $ 17 | |
Common Stock | 1 | |
Principal Amount of of Debentures, Net of Discount | $ 18 | |
Interest Rate of Trust Preferred Securities and Debentures (as a percent) | 2.136% | |
Westbank Capital Trust II | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Trust Preferred Securities, Net of Discount | $ 8 | |
Common Stock | 0 | |
Principal Amount of of Debentures, Net of Discount | $ 8 | |
Interest Rate of Trust Preferred Securities and Debentures (as a percent) | 3.118% | |
Westbank Capital Trust III | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Trust Preferred Securities, Net of Discount | $ 8 | |
Common Stock | 0 | |
Principal Amount of of Debentures, Net of Discount | $ 8 | |
Interest Rate of Trust Preferred Securities and Debentures (as a percent) | 3.118% | |
Business Trusts | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Trust Preferred Securities, Net of Discount | $ 452 | 466 |
Common Stock | 17 | 17 |
Principal Amount of of Debentures, Net of Discount | $ 469 | $ 483 |
Interest Rate of Trust Preferred Securities and Debentures (as a percent) | 4.251% | 4.271% |
Treasury Rate | KeyCorp Capital II | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Basis spread on variable rate | 0.20% | |
Treasury Rate | KeyCorp Capital III | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Basis spread on variable rate | 0.25% | |
London Interbank Offered Rate (LIBOR) | KeyCorp Capital I | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Basis spread on variable rate | 0.74% | |
London Interbank Offered Rate (LIBOR) | HNC Statutory Trust III | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Basis spread on variable rate | 1.40% | |
London Interbank Offered Rate (LIBOR) | Willow Grove Statutory Trust I | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Basis spread on variable rate | 1.31% | |
London Interbank Offered Rate (LIBOR) | HNC Statutory Trust IV | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Basis spread on variable rate | 1.28% | |
London Interbank Offered Rate (LIBOR) | Westbank Capital Trust II and III | ||
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 | Treasury Rate | Keycorp Capital II and III | ||
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 | Mar. 31, 2022USD ($) |
Guarantor Obligations [Line Items] | |
Maximum Potential Undiscounted Future Payments | $ 17,349 |
Liability Recorded | 251 |
Written put options | |
Guarantor Obligations [Line Items] | |
Maximum Potential Undiscounted Future Payments | 3,836 |
Liability Recorded | 125 |
Standby letters of credit | |
Guarantor Obligations [Line Items] | |
Maximum Potential Undiscounted Future Payments | 3,722 |
Liability Recorded | 85 |
Recourse agreement with FNMA | |
Guarantor Obligations [Line Items] | |
Maximum Potential Undiscounted Future Payments | 6,570 |
Liability Recorded | 26 |
Residential mortgage reserve | |
Guarantor Obligations [Line Items] | |
Maximum Potential Undiscounted Future Payments | 3,221 |
Liability Recorded | $ 15 |
Contingent Liabilities and Gu_4
Contingent Liabilities and Guarantees - Additional Information (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Written put options | |
Commitments Contingencies And Guarantees [Line Items] | |
Weighted average life of written put options | 2 years 2 months 12 days |
Standby letters of credit | |
Commitments Contingencies And Guarantees [Line Items] | |
Remaining weighted-average life of standby letters of credit in years | 1 year 9 months 18 days |
Recourse agreement with FNMA | |
Commitments Contingencies And Guarantees [Line Items] | |
Weighted-average remaining term for outstanding commercial mortgage loans in years | 7 years 8 months 12 days |
Unpaid principal balance outstanding of loans sold | $ 21,500 |
Maximum potential amount of undiscounted future payments possibly required as percentage of principal balance of loans outstanding | 30.60% |
Residential mortgage reserve | |
Commitments Contingencies And Guarantees [Line Items] | |
Unpaid principal balance outstanding of loans sold | $ 10,700 |
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 | $ 15 |
Minimum | Standby letters of credit | |
Commitments Contingencies And Guarantees [Line Items] | |
Remaining actual life of standby letters of credit | 1 year |
Minimum | Low | |
Commitments Contingencies And Guarantees [Line Items] | |
Guarantee obligations, percentage | 0.00% |
Minimum | Moderate | |
Commitments Contingencies And Guarantees [Line Items] | |
Guarantee obligations, percentage | 30.00% |
Minimum | High | |
Commitments Contingencies And Guarantees [Line Items] | |
Guarantee obligations, percentage | 70.00% |
Maximum | Standby letters of credit | |
Commitments Contingencies And Guarantees [Line Items] | |
Remaining actual life of standby letters of credit | 12 years 8 months 12 days |
Maximum | Low | |
Commitments Contingencies And Guarantees [Line Items] | |
Guarantee obligations, percentage | 30.00% |
Maximum | Moderate | |
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 | |
Mar. 31, 2022 | Mar. 31, 2021 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | $ 17,423 | $ 17,981 |
Other comprehensive income before reclassification, net of income taxes | (2,296) | (571) |
Amounts reclassified from AOCI, net of income taxes | (47) | (64) |
Total other comprehensive income (loss), net of tax | (2,343) | (635) |
Ending balance | 15,308 | 17,634 |
Unrealized gains (losses) on securities available for sale | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (403) | 567 |
Other comprehensive income before reclassification, net of income taxes | (1,784) | (628) |
Amounts reclassified from AOCI, net of income taxes | 0 | 0 |
Total other comprehensive income (loss), net of tax | (1,784) | (628) |
Ending balance | (2,187) | (61) |
Unrealized gains (losses) on derivative financial instruments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | 88 | 476 |
Other comprehensive income before reclassification, net of income taxes | (511) | 58 |
Amounts reclassified from AOCI, net of income taxes | (50) | (68) |
Total other comprehensive income (loss), net of tax | (561) | (10) |
Ending balance | (473) | 466 |
Net pension and postretirement benefit costs | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (271) | (305) |
Other comprehensive income before reclassification, net of income taxes | (1) | (1) |
Amounts reclassified from AOCI, net of income taxes | 3 | 4 |
Total other comprehensive income (loss), net of tax | 2 | 3 |
Ending balance | (269) | (302) |
Accumulated Other Comprehensive Income (Loss) | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (586) | 738 |
Total other comprehensive income (loss), net of tax | (2,343) | (635) |
Ending balance | $ (2,929) | $ 103 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income - Reclassifications Out of AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Interest income — Loans | $ 837 | $ 889 |
Interest expense — Long-term debt | (49) | (60) |
Investment banking and debt placement fees | 163 | 162 |
Income taxes | 90 | 147 |
Other expense | 630 | 624 |
INCOME (LOSS) FROM CONTINUING OPERATIONS | 447 | 618 |
Reclassification out of Accumulated Other Comprehensive Income | Unrealized gains (losses) on derivative financial instruments | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Investment banking and debt placement fees | 2 | 1 |
Income (loss) from continuing operations before income taxes | 65 | 89 |
Income taxes | 15 | 21 |
INCOME (LOSS) FROM CONTINUING OPERATIONS | 50 | 68 |
Reclassification out of Accumulated Other Comprehensive Income | Amortization of losses | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Other expense | (4) | (5) |
Reclassification out of Accumulated Other Comprehensive Income | Net pension and postretirement benefit costs | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Income (loss) from continuing operations before income taxes | (4) | (5) |
Income taxes | (1) | (1) |
INCOME (LOSS) FROM CONTINUING OPERATIONS | (3) | (4) |
Interest income – loans | Reclassification out of Accumulated Other Comprehensive Income | Unrealized gains (losses) on derivative financial instruments | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Interest income — Loans | 64 | 89 |
Interest expense — Long-term debt | Reclassification out of Accumulated Other Comprehensive Income | Unrealized gains (losses) on derivative financial instruments | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Interest expense — Long-term debt | $ (1) | $ (1) |
Shareholders' Equity - Comprehe
Shareholders' Equity - Comprehensive Capital Plan (Details) - USD ($) $ / shares in Units, $ in Billions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Jul. 31, 2021 | |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Cash dividends declared on Common Shares (in usd per share) | $ 0.195 | $ 0.185 | |
Employee Equity Compensation Programs | |||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Stock repurchase program, amount authorized | $ 1.5 | ||
2021 Capital Plan | |||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Cash dividends declared on Common Shares (in usd per share) | $ 0.195 |
Shareholders' Equity - Schedule
Shareholders' Equity - Schedule of Preferred Stock (Details) | Mar. 31, 2022USD ($)$ / sharesshares |
Series D Preferred Stock | |
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 | |
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 | |
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 | |
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 | |
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 | |
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 | |
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 | |
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) | $ 0.351563 |
Business Segment Reporting - Ad
Business Segment Reporting - Additional Information (Details) | Mar. 31, 2022branchsector |
Consumer Bank | |
Segment Reporting Information [Line Items] | |
Number of state branch networks | branch | 15 |
Commercial Bank | |
Segment Reporting Information [Line Items] | |
Number of industry sectors | sector | 7 |
Business Segment Reporting - Sc
Business Segment Reporting - Schedule of Segment Reporting Information (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2022USD ($)employee | Mar. 31, 2021USD ($)employee | |
SUMMARY OF OPERATIONS | ||
Net interest income (TE) | $ 1,020 | $ 1,012 |
Noninterest income | 676 | 738 |
Total revenue (TE) | 1,696 | 1,750 |
Provision for credit losses | 83 | (93) |
Depreciation and amortization expense | 70 | 75 |
Other noninterest expense | 1,000 | 996 |
Income (loss) from continuing operations before income taxes (TE) | 543 | 772 |
Allocated income taxes and TE adjustments | 96 | 154 |
INCOME (LOSS) FROM CONTINUING OPERATIONS | 447 | 618 |
Income (loss) from discontinued operations, net of taxes | 1 | 4 |
NET INCOME (LOSS) | 448 | 622 |
Less: Net income (loss) attributable to noncontrolling interests | 0 | 0 |
NET INCOME (LOSS) ATTRIBUTABLE TO KEY | 448 | 622 |
AVERAGE BALANCES | ||
Loans and leases | 103,762 | 100,728 |
Total assets | 182,589 | 172,233 |
Deposits | 150,163 | 137,740 |
OTHER FINANCIAL DATA | ||
Net loan charge-offs | $ 33 | $ 114 |
Return on average allocated equity, continuing operations (as a percent) | 10.80% | 14.11% |
Return on average allocated equity (as a percent) | 10.83% | 14.20% |
Average full-time equivalent employees | employee | 17,110 | 17,086 |
Operating Segments | Consumer Bank | ||
SUMMARY OF OPERATIONS | ||
Net interest income (TE) | $ 543 | $ 607 |
Noninterest income | 256 | 257 |
Total revenue (TE) | 799 | 864 |
Provision for credit losses | 43 | (23) |
Depreciation and amortization expense | 21 | 18 |
Other noninterest expense | 642 | 583 |
Income (loss) from continuing operations before income taxes (TE) | 93 | 286 |
Allocated income taxes and TE adjustments | 23 | 69 |
INCOME (LOSS) FROM CONTINUING OPERATIONS | 70 | 217 |
Income (loss) from discontinued operations, net of taxes | 0 | 0 |
NET INCOME (LOSS) | 70 | 217 |
Less: Net income (loss) attributable to noncontrolling interests | 0 | 0 |
NET INCOME (LOSS) ATTRIBUTABLE TO KEY | 70 | 217 |
AVERAGE BALANCES | ||
Loans and leases | 38,637 | 39,249 |
Total assets | 41,814 | 42,476 |
Deposits | 91,468 | 85,033 |
OTHER FINANCIAL DATA | ||
Net loan charge-offs | $ 22 | $ 36 |
Return on average allocated equity, continuing operations (as a percent) | 7.91% | 25.74% |
Return on average allocated equity (as a percent) | 7.91% | 25.74% |
Average full-time equivalent employees | employee | 7,899 | 8,284 |
Operating Segments | Commercial Bank | ||
SUMMARY OF OPERATIONS | ||
Net interest income (TE) | $ 415 | $ 411 |
Noninterest income | 395 | 447 |
Total revenue (TE) | 810 | 858 |
Provision for credit losses | 41 | (67) |
Depreciation and amortization expense | 31 | 34 |
Other noninterest expense | 386 | 409 |
Income (loss) from continuing operations before income taxes (TE) | 352 | 482 |
Allocated income taxes and TE adjustments | 69 | 99 |
INCOME (LOSS) FROM CONTINUING OPERATIONS | 283 | 383 |
Income (loss) from discontinued operations, net of taxes | 0 | 0 |
NET INCOME (LOSS) | 283 | 383 |
Less: Net income (loss) attributable to noncontrolling interests | 0 | 0 |
NET INCOME (LOSS) ATTRIBUTABLE TO KEY | 283 | 383 |
AVERAGE BALANCES | ||
Loans and leases | 64,701 | 61,221 |
Total assets | 74,860 | 70,448 |
Deposits | 57,289 | 51,894 |
OTHER FINANCIAL DATA | ||
Net loan charge-offs | $ 11 | $ 78 |
Return on average allocated equity, continuing operations (as a percent) | 13.21% | 17.41% |
Return on average allocated equity (as a percent) | 13.21% | 17.41% |
Average full-time equivalent employees | employee | 2,402 | 2,258 |
Other | ||
SUMMARY OF OPERATIONS | ||
Net interest income (TE) | $ 62 | $ (6) |
Noninterest income | 25 | 34 |
Total revenue (TE) | 87 | 28 |
Provision for credit losses | (1) | (3) |
Depreciation and amortization expense | 18 | 23 |
Other noninterest expense | (28) | 4 |
Income (loss) from continuing operations before income taxes (TE) | 98 | 4 |
Allocated income taxes and TE adjustments | 4 | (14) |
INCOME (LOSS) FROM CONTINUING OPERATIONS | 94 | 18 |
Income (loss) from discontinued operations, net of taxes | 1 | 4 |
NET INCOME (LOSS) | 95 | 22 |
Less: Net income (loss) attributable to noncontrolling interests | 0 | 0 |
NET INCOME (LOSS) ATTRIBUTABLE TO KEY | 95 | 22 |
AVERAGE BALANCES | ||
Loans and leases | 424 | 258 |
Total assets | 65,915 | 59,309 |
Deposits | 1,406 | 813 |
OTHER FINANCIAL DATA | ||
Net loan charge-offs | $ 0 | $ 0 |
Return on average allocated equity, continuing operations (as a percent) | 8.47% | 1.35% |
Return on average allocated equity (as a percent) | 8.56% | 1.64% |
Average full-time equivalent employees | employee | 6,809 | 6,544 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | $ 404 | $ 379 |
Noninterest income | 676 | 738 |
Contract assets | 0 | 0 |
Contract liabilities | 0 | 0 |
Trust and investment services income | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 124 | 119 |
Investment banking and debt placement fees | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 109 | 79 |
Services charges on deposit accounts | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 91 | 73 |
Cards and payments income | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 78 | 104 |
Other noninterest income | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 2 | 4 |
Noninterest income | 247 | 325 |
Operating Segments | Consumer Bank | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 205 | 186 |
Operating Segments | Consumer Bank | Trust and investment services income | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 106 | 101 |
Operating Segments | Consumer Bank | Investment banking and debt placement fees | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 0 | 0 |
Operating Segments | Consumer Bank | Services charges on deposit accounts | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 55 | 39 |
Operating Segments | Consumer Bank | Cards and payments income | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 42 | 43 |
Operating Segments | Consumer Bank | Other noninterest income | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 2 | 3 |
Operating Segments | Commercial Bank | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 199 | 193 |
Operating Segments | Commercial Bank | Trust and investment services income | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 18 | 18 |
Operating Segments | Commercial Bank | Investment banking and debt placement fees | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 109 | 79 |
Operating Segments | Commercial Bank | Services charges on deposit accounts | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 36 | 34 |
Operating Segments | Commercial Bank | Cards and payments income | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 36 | 61 |
Operating Segments | Commercial Bank | Other noninterest income | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 0 | 1 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Noninterest income | $ 25 | $ 34 |