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Asset Quality (Tables)
 12 Months Ended
Dec. 31, 2019
Receivables [Abstract]  
Financing Receivable Credit Quality Indicators
Commercial Credit Exposure — Excluding PCI
Credit Risk Profile by Creditworthiness Category (a), (b) 
December 31,
  
  
  
  
  
  
  
  
  
  
in millions
Commercial and industrial
RE — Commercial
RE — Construction
Commercial Lease
Total
RATING
2019
2018
2019
2018
2019
2018
2019
2018
2019
2018
Pass
$
46,544

$
44,138

$
12,914

$
13,672

$
1,524

$
1,537

$
4,642

$
4,557

$
65,624

$
63,904

Criticized (Accruing)
1,439

1,402

370

354

31

125

40

41

1,880

1,922

Criticized (Nonaccruing)
264

152

83

81

2

2

6

8

355

243

Total
$
48,247

$
45,692

$
13,367

$
14,107

$
1,557

$
1,664

$
4,688

$
4,606

$
67,859

$
66,069

 
 
 
 
 
 
 
 
 
 
 
(a)
Credit quality indicators are updated on an ongoing basis and reflect credit quality information as of the dates indicated.
(b)
The term criticized refers to those loans that are internally classified by Key as special mention or worse, which are asset quality categories defined by regulatory authorities. These assets have an elevated level of risk and may have a high probability of default or total loss. Pass rated refers to all loans not classified as criticized.
Consumer Credit Exposure — Excluding PCI
Non-PCI Loans by Refreshed FICO Score (a) 
December 31,
 
 
 
 
 
 
 
 
 
 
in millions
Residential — Prime
Consumer direct loans
Credit cards
Consumer indirect loans
Total
FICO SCORE
2019
2018
2019
2018
2019
2018
2019
2018
2019
2018
750 and above
$
10,583

$
9,794

$
1,874

$
549

$
523

$
521

$
2,232

$
1,647

$
15,212

$
12,511

660 to 749
4,823

4,906

1,069

700

484

507

1,652

1,320

8,028

7,433

Less than 660
1,360

1,411

223

224

123

116

641

565

2,347

2,316

No Score
261

213

344

333

—

—

149

102

754

648

Total
$
17,027

$
16,324

$
3,510

$
1,806

$
1,130

$
1,144

$
4,674

$
3,634

$
26,341

$
22,908

 
 
 
 
 
 
 
 
 
 
 
(a)
Borrower FICO scores provide information about the credit quality of our consumer loan portfolio as they provide an indication as to the likelihood that a debtor will repay their debts. The scores are obtained from a nationally recognized consumer rating agency and are presented in the above table at the dates indicated.
Commercial Credit Exposure — PCI
Credit Risk Profile by Creditworthiness Category (a), (b) 
December 31,
  
  
  
  
  
  
  
  
  
  
in millions
Commercial and industrial
RE — Commercial
RE — Construction
Commercial Lease
Total
RATING
2019
2018
2019
2018
2019
2018
2019
2018
2019
2018
Pass
$
28

$
37

$
87

$
125

$
1

$
2

—

—

$
116

$
164

Criticized
20

24

37

53

—

—

—

—

57

77

Total
$
48

$
61

$
124

$
178

$
1

$
2

—

—

$
173

$
241

 
 
 
 
 
 
 
 
 
 
 
(a)
Credit quality indicators are updated on an ongoing basis and reflect credit quality information as of the dates indicated.
(b)
The term criticized refers to those loans that are internally classified by Key as special mention or worse, which are asset quality categories defined by regulatory authorities. These assets have an elevated level of risk and may have a high probability of default or total loss. Pass rated refers to all loans not classified as criticized.

Consumer Credit Exposure — PCI
PCI Loans by Refreshed FICO Score (a) 
December 31,
 
 
 
 
 
 
 
 
 
 
in millions
Residential — Prime
Consumer direct loans
Credit cards
Consumer indirect loans
Total
FICO SCORE
2019
2018
2019
2018
2019
2018
2019
2018
2019
2018
750 and above
$
103

$
137

1

—

—

—

—

—

$
104

$
137

660 to 749
91

95

$
1

$
1

—

—

—

—

92

96

Less than 660
70

97

1

2

—

—

—

—

71

99

No Score
6

2

—

—

—

—

—

—

6

2

Total
$
270

$
331

$
3

$
3

—

—

—

—

$
273

$
334

 
 
 
 
 
 
 
 
 
 
 
(a)
Borrower FICO scores provide information about the credit quality of our consumer loan portfolio as they provide an indication as to the likelihood that a debtor will repay their debts. The scores are obtained from a nationally recognized consumer rating agency and are presented in the above table at the dates indicated.
Past Due Loans Including Current Loans
The following aging analysis of current and past due loans as of December 31, 2019, and December 31, 2018, provides further information regarding Key’s credit exposure.

Aging Analysis of Loan Portfolio (a) 
December 31, 2019
Current
30-59
Days Past
Due (b)
60-89
Days Past
Due (b)
90 and 
Greater
Days Past
Due (b)
Non-performing
Loans
Total Past Due and
Non-performing
Loans
Purchased
Credit
Impaired
Total
Loans (c), (d)
in millions
LOAN TYPE
 
 
 
 
 
 
 
 
Commercial and industrial
$
47,768

$
110

$
52

$
53

$
264

$
479

$
48

$
48,295

Commercial real estate:
 
 
 
 
 
 
 
 
Commercial mortgage
13,258

8

5

13

83

109

124

13,491

Construction
1,551

3

—

1

2

6

1

1,558

Total commercial real estate loans
14,809

11

5

14

85

115

125

15,049

Commercial lease financing
4,647

22

11

2

6

41

—

4,688

Total commercial loans
$
67,224

$
143

$
68

$
69

$
355

$
635

$
173

$
68,032

Real estate — residential mortgage
$
6,705

$
7

$
5

$
1

$
48

$
61

$
257

$
7,023

Home equity loans
10,071

30

10

5

145

190

13

10,274

Consumer direct loans
3,484

10

5

7

4

26

3

3,513

Credit cards
1,104

6

5

12

3

26

—

1,130

Consumer indirect loans
4,609

32

8

3

22

65

—

4,674

Total consumer loans
$
25,973

$
85

$
33

$
28

$
222

$
368

$
273

$
26,614

Total loans
$
93,197

$
228

$
101

$
97

$
577

$
1,003

$
446

$
94,646

 
 
 
 
 
 
 
 
 
(a)
Amounts in table represent recorded investment and exclude loans held for sale. Recorded investment represents the face amount of the loan increased or decreased by applicable accrued interest, net deferred loan fees and costs, and unamortized premium or discount, and reflects direct charge-offs.
(b)
Past due loan amounts exclude purchased impaired loans, even if contractually past due (or if we do not expect to collect principal or interest in full based on the original contractual terms), as we are currently accreting income over the remaining term of the loans.
(c)
Net of unearned income, net deferred loan fees and costs, and unamortized discounts and premiums.
(d)
Future accretable yield related to PCI loans is not included in the analysis of the loan portfolio.
December 31, 2018
Current
30-59
Days Past
Due (b)
60-89
Days Past
Due (b)
90 and 
Greater
Days Past
Due (b)
Non-performing
Loans
Total Past Due and
Non-performing
Loans
Purchased
Credit
Impaired
Total
Loans (c), (d)
in millions
LOAN TYPE
 
 
 
 
 
 
 
 
Commercial and industrial
$
45,375

$
89

$
31

$
45

$
152

$
317

$
61

$
45,753

Commercial real estate:
 
 
 
 
 
 
 
 
Commercial mortgage
13,957

27

17

25

81

150

178

14,285

Construction
1,646

—

13

3

2

18

2

1,666

Total commercial real estate loans
15,603

27

30

28

83

168

180

15,951

Commercial lease financing
4,580

12

1

4

9

26

—

4,606

Total commercial loans
$
65,558

$
128

$
62

$
77

$
244

$
511

$
241

$
66,310

Real estate — residential mortgage
$
5,119

$
11

$
3

$
4

$
62

$
80

$
314

$
5,513

Home equity loans
10,862

31

12

10

210

263

17

11,142

Consumer direct loans
1,780

11

5

6

4

26

3

1,809

Credit cards
1,119

6

5

12

2

25

—

1,144

Consumer indirect loans
3,573

31

7

3

20

61

—

3,634

Total consumer loans
$
22,453

$
90

$
32

$
35

$
298

$
455

$
334

$
23,242

Total loans
$
88,011

$
218

$
94

$
112

$
542

$
966

$
575

$
89,552

 
 
 
 
 
 
 
 
 
(a)
Amounts in table represent recorded investment and exclude loans held for sale. Recorded investment represents the face amount of the loan increased or decreased by applicable accrued interest, net deferred loan fees and costs, and unamortized premium or discount, and reflects direct charge-offs.
(b)
Past due loan amounts exclude purchased impaired loans, even if contractually past due (or if we do not expect to collect principal or interest in full based on the original contractual terms), as we are currently accreting income over the remaining term of the loans.
(c)
Net of unearned income, net deferred loan fees and costs, and unamortized discounts and premiums.
(d)
Future accretable yield related to PCI loans is not included in the analysis of the loan portfolio.
Breakdown of Individually Impaired Loans
The following tables set forth a further breakdown of individually impaired loans:
 
December 31, 2019
 
December 31, 2018
 
Recorded  
Investment (a)
Unpaid Principal Balance (b)
Specific  
Allowance (c)  
 
Recorded  
Investment (a)
Unpaid Principal Balance (b)
Specific  
Allowance (c)  
in millions
With no related allowance recorded:
 
 
 
 
 
 
 
Commercial and industrial
$
156

$
224

—

 
$
118

$
175

—

Commercial real estate:
 
 
 
 
 
 
 
Commercial mortgage
65

77

—

 
64

70

—

Total commercial real estate loans
65

77

—

 
64

70

—

Total commercial loans
221

301

—

 
182

245

—

Real estate — residential mortgage
3

4

—

 
4

5

—

Home equity loans
45

51

—

 
49

56

—

Consumer direct loans
—

1

—

 
1

1

—

Consumer indirect loans
2

4

—

 
2

4

—

Total consumer loans
50

60

—

 
56

66

—

Total loans with no related allowance recorded
271

361

—

 
238

311

—

With an allowance recorded:
 
 
 
 
 
 
 
Commercial and industrial
97

97

$
17

 
44

47

$
5

Commercial real estate:
 
 
 
 
 
 
 
Commercial mortgage
—

—

—

 
2

3

1

Total commercial real estate loans
—

—

—

 
2

3

1

Total commercial loans
97

97

17

 
46

50

6

Real estate — residential mortgage
40

59

4

 
45

70

3

Home equity loans
81

88

9

 
78

85

8

Consumer direct loans
4

4

—

 
3

3

—

Credit cards
3

3

—

 
3

3

—

Consumer indirect loans
33

33

3

 
34

34

2

Total consumer loans
161

187

16

 
163

195

13

Total loans with an allowance recorded
258

284

33

 
209

245

19

Total
$
529

$
645

$
33

 
$
447

$
556

$
19

 
 
 
 
 
 
 
 
(a)
The Recorded Investment represents the face amount of the loan increased or decreased by applicable accrued interest, net deferred loan fees and costs, and unamortized premium or discount, and reflects direct charge-offs. This amount is a component of total loans on our consolidated balance sheet.
(b)
The Unpaid Principal Balance represents the customer’s legal obligation to us.
(c)
See Note 1 (“Summary of Significant Accounting Policies”) under the heading “Impaired Loans” for a description of the specific allowance methodology.

The following table sets forth a further breakdown of average individually impaired loans reported by Key:
Average Recorded Investment (a)
Twelve Months Ended December 31,
in millions
2019
2018
2017
Commercial and industrial
$
208

$
149

$
210

Commercial real estate:
 
 
 
Commercial mortgage
65

39

9

Construction
—

—

—

Total commercial real estate loans
65

39

9

Total commercial loans
273

188

219

Real estate — residential mortgage
46

49

50

Home equity loans
127

122

121

Consumer direct loans
4

4

3

Credit cards
3

3

3

Consumer indirect loans
35

35

32

Total consumer loans
215

213

209

Total
$
488

$
401

$
428

 
 
 
 
(a)
The Recorded Investment represents the face amount of the loan increased or decreased by applicable accrued interest, net deferred loan fees and costs, and unamortized premium or discount, and reflects direct charge-offs. This amount is a component of total loans on our consolidated balance sheet.
Post-Modification Outstanding Recorded Investment by Concession Type for Our Commercial Accruing and Nonaccruing TDRs
The following table shows the period-end post-modification outstanding recorded investment by concession type for our commercial and consumer accruing and nonaccruing TDRs added during the periods indicated:
 
Twelve Months Ended December 31,
in millions
2019
2018
Commercial loans:
 
 
Extension of maturity date
$
11

15

Payment or covenant modification/deferment
11

$
99

Bankruptcy plan modification
—

6

Increase in new commitment or new money
8

—

Total
$
30

$
120

Consumer loans:
 
 
Interest rate reduction
$
14

$
28

Forgiveness of principal
—

—

Other
29

38

Total
$
43

$
66

Total commercial and consumer TDRs
$
73

$
186
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:
Year ended December 31,
 
 
in millions
2019
2018
Balance at beginning of the period
$
399

$
317

Additions
112

228

Payments
(145
)
(110
)
Charge-offs
(19
)
(36
)
Balance at end of period (a)
$
347

$
399

 
 
 
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:
 
December 31, 2019
 
December 31, 2018
 
Number  
of Loans  
Pre-modification  
Outstanding  
Recorded  
Investment  
Post-modification  
Outstanding  
Recorded  
Investment  
 
Number  
of Loans  
Pre-modification  
Outstanding  
Recorded  
Investment  
Post-modification  
Outstanding  
Recorded  
Investment  
dollars in millions
LOAN TYPE
 
 
 
 
 
 
 
Nonperforming:
 
 
 
 
 
 
 
Commercial and industrial
51

$
72

$
53

 
35

$
121

$
85

Commercial real estate:
 
 
 
 
 
 
 
Real estate — commercial mortgage
6

64

58

 
6

66

62

Total commercial real estate loans
6

64

58

 
6

66

62

Total commercial loans
57

136

111

 
41

187

147

Real estate — residential mortgage
181

13

11

 
281

21

20

Home equity loans
713

42

41

 
1,142

66

63

Consumer direct loans
172

2

2

 
171

2

1

Credit cards
368

2

2

 
330

2

2

Consumer indirect loans
1,131

19

16

 
1,098

18

14

Total consumer loans
2,565

78

72

 
3,022

109

100

Total nonperforming TDRs
2,622

214

183

 
3,063

296

247

Prior-year accruing: (a)
 
 
 
 
 
 
 
Commercial and industrial
6

30

25

 
11

37

32

Commercial real estate:
 
 
 
 
 
 
 
Real estate — commercial mortgage
1

—

—

 
2

—

—

Total commercial loans
7

30

25

 
13

37

32

Real estate — residential mortgage
493

37

31

 
491

36

30

Home equity loans
1,751

104

84

 
1,403

82

64

Consumer direct loans
139

4

3

 
79

4

3

Credit cards
486

3

1

 
479

3

1

Consumer indirect loans
714

33

20

 
556

33

22

Total consumer loans
3,583

181

139

 
3,008

158

120

Total prior-year accruing TDRs
3,590

211

164

 
3,021

195

152

Total TDRs
6,212

$
425

$
347

 
6,084

$
491

$
399

 
 
 
 
 
 
 
 
(a)
All TDRs that were restructured prior to January 1, 2019, and January 1, 2018, are fully accruing.
Changes in Allowance for Loan and Lease Losses by Loan Category
The changes in the ALLL by loan category for the periods indicated are as follows:
in millions
December 31, 2018
Provision 
 
Charge-offs 
Recoveries   
December 31, 2019
Commercial and industrial
$
532

$
311

  
$
(319
)
$
27

$
551

Real estate — commercial mortgage
142

7

 
(8
)
2

143

Real estate — construction
33

(6
)
 
(5
)
—

22

Commercial lease financing
36

20

 
(26
)
5

35

Total commercial loans
743

332

 
(358
)
34

751

Real estate — residential mortgage
7

1

 
(3
)
2

7

Home equity loans
35

7

 
(19
)
8

31

Consumer direct loans
30

38

 
(41
)
7

34

Credit cards
48

36

 
(44
)
7

47

Consumer indirect loans
20

27

 
(34
)
17

30

Total consumer loans
140

109

  
(141
)
41

149

Total ALLL — continuing operations
883

441

(a), (b)  
(499
)
75

900

Discontinued operations
14

3

  
(12
)
5

10

Total ALLL — including discontinued operations
$
897

$
444

  
$
(511
)
$
80

$
910

 
 
 
 
 
 
 
(a)
Excludes a provision for losses on lending-related commitments of $4 million.
(b)
Includes the realization of $139 million loss related to a previously disclosed fraud incident.
in millions
December 31, 2017
Provision 
 
Charge-offs 
Recoveries   
December 31, 2018
Commercial and industrial
$
529

$
125

  
$
(159
)
$
37

$
532

Real estate — commercial mortgage
133

27

 
(21
)
3

142

Real estate — construction
30

1

 
—

2

33

Commercial lease financing
43

(2
)
 
(10
)
5

36

Total commercial loans
735

151

 
(190
)
47

743

Real estate — residential mortgage
7

1

 
(3
)
2

7

Home equity loans
43

2

 
(21
)
11

35

Consumer direct loans
28

31

 
(36
)
7

30

Credit cards
44

41

 
(44
)
7

48

Consumer indirect loans
20

14

 
(30
)
16

20

Total consumer loans
142

89

 
(134
)
43

140

Total ALLL — continuing operations
877

240

(a)  
(324
)
90

883

Discontinued operations
16

8

  
(15
)
5

14

Total ALLL — including discontinued operations
$
893

$
248

  
$
(339
)
$
95

$
897

 
 
 
 
 
 
 
(a)
Excludes a provision for losses on lending-related commitments of $6 million.
in millions
December 31, 2016
Provision
 
Charge-offs
Recoveries  
December 31, 2017
Commercial and industrial
$
508

$
114

  
$
(133
)
$
40

$
529

Real estate — commercial mortgage
144

(2
)
 
(11
)
2

133

Real estate — construction
22

9

 
(2
)
1

30

Commercial lease financing
42

9

 
(14
)
6

43

Total commercial loans
716

130

 
(160
)
49

735

Real estate — residential mortgage
17

(11
)
 
(3
)
4

7

Home equity loans
54

4

 
(30
)
15

43

Consumer direct loans
24

32

  
(34
)
6

28

Credit cards
38

45

  
(44
)
5

44

Consumer indirect loans
9

27

 
(31
)
15

20

Total consumer loans
142

97

  
(142
)
45

142

Total ALLL — continuing operations
858

227

(a) 
(302
)
94

877

Discontinued operations
24

10

  
(26
)
8

16

Total ALLL — including discontinued operations
$
882

$
237

  
$
(328
)
$
102

$
893

 
 
 
 
 
 
 
(a)
Excludes a provision for losses on lending-related commitments of $2 million.
Allowance for Loan and Lease Losses and Corresponding Loan Balances
A breakdown of the individual and collective ALLL and the corresponding loan balances for the periods indicated are as follows:
 
Allowance
Outstanding
December 31, 2019
Individually
Evaluated for
Impairment
Collectively
Evaluated for
Impairment
Purchased
Credit
Impaired
Loans
 
Individually
Evaluated for
Impairment
Collectively
Evaluated for
Impairment
 
Purchased
Credit
Impaired
in millions
 
 
Commercial and industrial
$
17

$
533

$
1

$
48,295

  
$
253

$
47,994

  
$
48

Commercial real estate:
 
 
 
 
 
 
 
 
 
Commercial mortgage
—

141

2

13,491

  
65

13,302

  
124

Construction
—

22

—

1,558

  
—

1,557

  
1

Total commercial real estate loans
—

163

2

15,049

  
65

14,859

  
125

Commercial lease financing
—

35

—

4,688

  
—

4,688

  
—

Total commercial loans
17

731

3

68,032

  
318

67,541

  
173

Real estate — residential mortgage
4

1

2

7,023

  
43

6,723

  
257

Home equity loans
9

21

1

10,274

 
126

10,135

 
13

Consumer direct loans
—

34

—

3,513

  
4

3,506

  
3

Credit cards
—

47

—

1,130

  
3

1,127

  
—

Consumer indirect loans
3

27

—

4,674

 
35

4,639

 
—

Total consumer loans
16

130

3

26,614

  
211

26,130

  
273

Total ALLL — continuing operations
33

861

6

94,646

  
529

93,671

  
446

Discontinued operations
2

8

—

865

(a)  
23

842

(a)  
—

Total ALLL — including discontinued operations
$
35

$
869

$
6

$
95,511

  
$
552

$
94,513

  
$
446

 
 
 
 
 
 
 
 
 
 
(a)
Amount includes $2 million of loans carried at fair value that are excluded from ALLL consideration.
 
Allowance
Outstanding
December 31, 2018
Individually
Evaluated for
Impairment
Collectively
Evaluated for
Impairment
Purchased
Credit
Impaired
Loans
 
Individually
Evaluated for
Impairment
Collectively
Evaluated for
Impairment
 
Purchased
Credit
Impaired
in millions
 
 
Commercial and industrial
$
5

$
526

$
1

$
45,753

  
$
162

$
45,530

  
$
61

Commercial real estate:
 
 
 
 
 
 
 
 
 
Commercial mortgage
—

139

3

14,285

  
66

14,041

  
178

Construction
—

33

—

1,666

  
—

1,664

  
2

Total commercial real estate loans
—

172

3

15,951

  
66

15,705

  
180

Commercial lease financing
—

36

—

4,606

  
—

4,606

  
—

Total commercial loans
5

734

4

66,310

  
228

65,841

  
241

Real estate — residential mortgage
3

4

—

5,513

  
49

5,150

  
314

Home equity loans
8

26

1

11,142

 
127

10,998

 
17

Consumer direct loans
—

30

—

1,809

  
4

1,802

  
3

Credit cards
—

48

—

1,144

  
3

1,141

  
—

Consumer indirect loans
3

17

—

3,634

 
36

3,598

 
—

Total consumer loans
14

125

1

23,242

 
219

22,689

 
334

Total ALLL — continuing operations
19

859

5

89,552

 
447

88,530

 
575

Discontinued operations
2

12

—

1,073

(a) 
23

1,050

(a) 
—

Total ALLL — including discontinued operations
$
21

$
871

$
5

$
90,625

 
$
470

$
89,580

 
$
575

 
 
 
 
 
 
 
 
 
 
(a)
Amount includes $2 million of loans carried at fair value that are excluded from ALLL consideration.
Changes in the liability for credit losses on unfunded lending-related commitments are summarized as follows:
Year ended December 31,
in millions
2019
2018
2017
Balance at beginning of period
$
64

$
57

$
55

Provision (credit) for losses on lending-related commitments
4

6

2

Balance at end of period
$
68

$
63

$
57

 
 
 
 
Schedule of Changes in Outstanding Unpaid Principal Balance, Carrying Amount, and Accretable Yield
We have PCI loans from two separate acquisitions, one in 2012 and one in 2016. The following tables present the rollforward of the accretable yield and the beginning and ending outstanding unpaid principal balance and carrying amount of all PCI loans for the for the periods indicated:
 
Twelve Months Ended December 31,
 
2019
 
2018
in millions
Accretable Yield
Carrying Amount
Outstanding Unpaid Principal Balance
 
Accretable Yield
Carrying Amount
Outstanding Unpaid Principal Balance
Balance at beginning of period
$
117

$
571

$
607

 
$
131

$
738

$
803

Additions
—

 
 
 
—

 
 
Accretion
(34
)
 
 
 
(42
)
 
 
Net reclassifications from non-accretable to accretable
25

 
 
 
50

 
 
Payments received, net
(14
)
 
 
 
(21
)
 
 
Disposals
—

 
 
 
—

 
 
Loans charged off
—

 
 
 
(1
)
 
 
Balance at end of period
$
94

$
439

$
462

 
$
117

$
571

$
607