10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington D.C. 20549 

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2021

or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number 001-11302

KeyCorp

Exact name of registrant as specified in its charter:

Ohio	34-6542451
State or other jurisdiction of incorporation or organization:	I.R.S. Employer Identification Number:

127 Public Square,	Cleveland,	Ohio	44114-1306
Address of principal executive offices:			Zip Code:

(216) 689-3000

Registrant’s telephone number, including area code:

SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Shares, $1 par value	KEY	New York Stock Exchange
Depositary Shares (each representing a 1/40th interest in a share of Fixed-to-Floating Rate	KEY PrI	New York Stock Exchange
Perpetual Non-Cumulative Preferred Stock, Series E)
Depositary Shares (each representing a 1/40th interest in a share of Fixed Rate Perpetual Non-	KEY PrJ	New York Stock Exchange
Cumulative Preferred Stock, Series F)
Depositary Shares (each representing a 1/40th interest in a share of Fixed Rate Perpetual Non-	KEY PrK	New York Stock Exchange
Cumulative Preferred Stock, Series G)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒  No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒	Accelerated filer	☐	Non-accelerated filer	☐
Smaller reporting company	☐	Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Common Shares with a par value of $1 each	931,058,285 shares
Title of class	Outstanding at October 29, 2021

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KEYCORP

TABLE OF CONTENTS

PART I. FINANCIAL INFORMATION

		Page Number
Item 1.	Financial Statements	53
	Consolidated Balance Sheets	53
	Consolidated Statements of Income	53
	Consolidated Statements of Comprehensive Income	54
	Consolidated Statements of Changes in Equity	55
	Consolidated Statements of Cash Flows	56
	Notes to Consolidated Financial Statements (Unaudited)	57
	Note 1.    Basis of Presentation and Accounting Policies	57
	Note 2.    Earnings Per Common Share	59
	Note 3.    Loan Portfolio	59
	Note 4.    Asset Quality	60
	Note 5.    Fair Value Measurements	70
	Note 6.    Securities	76
	Note 7.    Derivatives and Hedging Activities	78
	Note 8.    Mortgage Servicing Assets	83
	Note 9.    Leases	85
	Note 10. Goodwill	87
	Note 11.  Variable Interest Entities	86
	Note 12.  Income Taxes	88
	Note 13.  Acquisitions and Discontinued Operations	88
	Note 14.  Securities Financing Activities	89
	Note 15.  Employee Benefits	89
	Note 16.  Trust Preferred Securities Issued by Unconsolidated Subsidiaries	90
	Note 17.  Contingent Liabilities and Guarantees	90
	Note 18.  Accumulated Other Comprehensive Income	92
	Note 19.  Shareholders’ Equity	93
	Note 20.  Business Segment Reporting	94
	Note 21. Revenue from Contracts with Customers	96
	Report of Independent Registered Public Accounting Firm	97

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Item 2.	Management’s Discussion & Analysis of Financial Condition & Results of Operations	4
	Introduction	4
	Terminology	4
	Forward-looking statements	5
	Long-term financial targets	7
	Selected financial data	8
	Strategic developments	9
	Demographics	9
	Supervision and regulation	9
	Results of Operations	14
	Earnings overview	14
	Net interest income	14
	Provision for credit losses	18
	Noninterest income	18
	Noninterest expense	20
	Income taxes	22
	Business Segment Results	22
	Consumer Bank	22
	Commercial Bank	23
	Financial Condition	24
	Loans and loans held for sale	25
	Securities	31
	Deposits and other sources of funds	33
	Capital	34
	Risk Management	37
	Overview	37
	Market risk management	37
	Liquidity risk management	41
	Credit risk management	43
	Operational and compliance risk management	47
	GAAP to Non-GAAP Reconciliations	49
	Critical Accounting Policies and Estimates	50
	Accounting and Reporting Developments	51
	European Sovereign and Nonsovereign Debt Exposures	52
Item 3.	Quantitative and Qualitative Disclosure about Market Risk	98
Item 4.	Controls and Procedures	98

	PART II. OTHER INFORMATION
Item 1.	Legal Proceedings	98
Item 1A.	Risk Factors	98
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	99
Item 6.	Exhibits	100
	Signature	101

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PART I. FINANCIAL INFORMATION

Item 2. Management’s Discussion & Analysis of Financial Condition & Results of Operations

Introduction

This section reviews the financial condition and results of operations of KeyCorp and its subsidiaries for the quarterly periods ended September 30, 2021, and September 30, 2020. Some tables may include additional periods to comply with disclosure requirements or to illustrate trends in greater depth. When you read this discussion, you should also refer to the consolidated financial statements and related notes in this report. The page locations of specific sections and notes that we refer to are presented in the Table of Contents.

References to our “2020 Form 10-K” refer to our Form 10-K for the year ended December 31, 2020, which has been filed with the SEC and is available on its website (www.sec.gov) and on our website (www.key.com/ir).

Terminology

Throughout this discussion, references to “Key,” “we,” “our,” “us,” and similar terms refer to the consolidated entity consisting of KeyCorp and its subsidiaries. “KeyCorp” refers solely to the parent holding company, and “KeyBank” refers to KeyCorp’s subsidiary bank, KeyBank National Association.

We want to explain some industry-specific terms at the outset so you can better understand the discussion that follows.

•We use the phrase continuing operations in this document to mean all of our businesses other than our government-guaranteed and private education lending business, which has been accounted for as discontinued operations since 2009.

•We engage in capital markets activities primarily through business conducted by our Commercial Bank segment. These activities encompass a variety of products and services. Among other things, we trade securities as a dealer, enter into derivative contracts (both to accommodate clients’ financing needs and to mitigate certain risks), and conduct transactions in foreign currencies (both to accommodate clients’ needs and to benefit from fluctuations in exchange rates).

•For regulatory purposes, capital is divided into two classes. Federal regulations currently prescribe that at least one-half of a bank or BHC’s total risk-based capital must qualify as Tier 1 capital. Both total and Tier 1 capital serve as bases for several measures of capital adequacy, which is an important indicator of financial stability and condition. Banking regulators evaluate a component of Tier 1 capital, known as Common Equity Tier 1, under the Regulatory Capital Rules. The “Capital” section of this report under the heading “Capital adequacy” provides more information on total capital, Tier 1 capital, and the Regulatory Capital Rules, including Common Equity Tier 1, and describes how these measures are calculated.

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The acronyms and abbreviations identified below are used in the Management’s Discussion & Analysis of Financial Condition & Results of Operations as well as in the Notes to Consolidated Financial Statements (Unaudited). You may find it helpful to refer back to this page as you read this report.

ABO: Accumulated benefit obligation. ALCO: Asset/Liability Management Committee. ALLL: Allowance for loan and lease losses. A/LM: Asset/liability management. AML: Anti-money laundering. AOCI: Accumulated other comprehensive income (loss). APBO: Accumulated postretirement benefit obligation. AQN: Arbitria Quum Notitia, LLC (AQN Strategies) ARRC: Alternative Reference Rates Committee. ASC: Accounting Standards Codification. ASR: Accelerated share repurchase. ASU: Accounting Standards Update. ATMs: Automated teller machines. Austin: Austin Capital Management, Ltd. BSA: Bank Secrecy Act. BHCA: Bank Holding Company Act of 1956, as amended. BHCs: Bank holding companies. Board: KeyCorp Board of Directors. CAPM: Capital Asset Pricing Model. CARES Act: Coronavirus Aid, Relief, and Economic Security Act CCAR: Comprehensive Capital Analysis and Review. Cain Brothers: Cain Brothers & Company, LLC. CECL: Current Expected Credit Losses. CFPB: Consumer Financial Protection Bureau, also known as the Bureau of Consumer Financial Protection. CFTC: Commodities Futures Trading Commission. CMBS: Commercial mortgage-backed securities. CMO: Collateralized mortgage obligation. Common Shares: KeyCorp common shares, $1 par value. CVA: Credit Valuation Adjustment. DCF: Discounted cash flow. DIF: Deposit Insurance Fund of the FDIC. Dodd-Frank Act: Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. EAD: Exposure at default. EBITDA: Earnings before interest, taxes, depreciation, and amortization. EPS: Earnings per share. ERISA: Employee Retirement Income Security Act of 1974. ERM: Enterprise risk management. EVE: Economic value of equity. FASB: Financial Accounting Standards Board. FDIA: Federal Deposit Insurance Act, as amended. FDIC: Federal Deposit Insurance Corporation. Federal Reserve: Board of Governors of the Federal Reserve System. FHLB: Federal Home Loan Bank of Cincinnati. FHLMC: Federal Home Loan Mortgage Corporation. FICO: Fair Isaac Corporation. FINRA: Financial Industry Regulatory Authority. First Niagara: First Niagara Financial Group, Inc. FNMA: Federal National Mortgage Association.


FSOC: Financial Stability Oversight Council. FVA: Fair value of employee benefit plan assets. GAAP: U.S. generally accepted accounting principles. GNMA: Government National Mortgage Association. HTC: Historic tax credit. IRS: Internal Revenue Service. ISDA: International Swaps and Derivatives Association. KBCM: KeyBanc Capital Markets, Inc. KCC: Key Capital Corporation. KCDC: Key Community Development Corporation. KCIC: Key Community Investment Capital LLC. KEF: Key Equipment Finance. LCR: Liquidity coverage ratio. LGD: Loss given default. LIBOR: London Interbank Offered Rate. LIHTC: Low-income housing tax credit. LTV: Loan-to-value. Moody’s: Moody’s Investor Services, Inc. MRM: Market Risk Management group. MRC: Market Risk Committee. N/A: Not applicable. Nasdaq: The Nasdaq Stock Market LLC. NAV: Net asset value. NFA: National Futures Association. N/M: Not meaningful. NMTC: New market tax credit. NOW: Negotiable Order of Withdrawal. NPR: Notice of proposed rulemaking. NYSE: New York Stock Exchange. OCC: Office of the Comptroller of the Currency. OCI: Other comprehensive income (loss). OREO: Other real estate owned. PBO: Projected benefit obligation. PCCR: Purchased credit card relationship. PCD: Purchased credit deteriorated. PD: Probability of default. PPP: Paycheck Protection Program. S&P: Standard and Poor’s Ratings Services, a Division of The McGraw-Hill Companies, Inc. SEC: U.S. Securities & Exchange Commission. SIFIs: Systemically important financial institutions, including large, interconnected BHCs and nonbank financial companies designated by FSOC for supervision by the Federal Reserve. SOFR: Secured Overnight Financing Rate. TCJ Act: Tax Cuts and Jobs Act. TDR: Troubled debt restructuring. TE: Taxable-equivalent. U.S. Treasury: United States Department of the Treasury. VaR: Value at risk. VEBA: Voluntary Employee Beneficiary Association. VIE: Variable interest entity.

Forward-looking statements

From time to time, we have made or will make forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements do not relate strictly to historical or current facts. Forward-looking statements usually can be identified by the use of words such as “goal,” “objective,” “plan,” “expect,” “assume,” “anticipate,” “intend,” “project,” “believe,” “estimate,” or other words of similar meaning. Forward-looking statements provide our current expectations or forecasts of future events, circumstances, results or aspirations. Our disclosures in this report contain forward-looking statements. We may also make forward-looking statements in other documents filed with or furnished to the SEC. In addition, we may make forward-looking statements orally to analysts, investors, representatives of the media, and others.

Forward-looking statements, by their nature, are subject to assumptions, risks, and uncertainties, many of which are outside of our control. Our actual results may differ materially from those set forth in our forward-looking statements.

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There is no assurance that any list of risks and uncertainties or risk factors is complete. Factors that could cause our actual results to differ from those described in forward-looking statements include, but are not limited to:

•our concentrated credit exposure in commercial and industrial loans;

•deterioration of commercial real estate market fundamentals;

•defaults by our loan counterparties or clients;

•adverse changes in credit quality trends;

•declining asset prices;

•deterioration of asset quality and an increase in credit losses due to the COVID-19 global pandemic and any of the related variants;

•the decline in oil prices;

•the extensive regulation of the U.S. financial services industry;

•changes in accounting policies, standards, and interpretations;

•operational or risk management failures by us or critical third parties;

•breaches of security or failure or unavailability of our technology systems due to technological or other factors and cybersecurity threats;

•negative outcomes from claims or litigation;

•failure or circumvention of our controls and procedures;

•the occurrence of natural or man-made disasters, global pandemics, conflicts, or terrorist attacks, or other adverse external events;

•increased operational risks resulting from the COVID-19 global pandemic and any of the related variants;

•our participation in the Paycheck Protection Program;

•evolving capital and liquidity standards under applicable regulatory rules;

•disruption of the U.S. financial system;

•our ability to receive dividends from our subsidiaries, including KeyBank;

•unanticipated changes in our liquidity position, including but not limited to, changes in our access to or the cost of funding and our ability to secure alternative funding sources;

•downgrades in our credit ratings or those of KeyBank;

•uncertainty in markets due to the COVID-19 global pandemic and any of the related variants;

•a worsening of the U.S. economy due to financial, political or other shocks;

•our ability to anticipate interest rate changes and manage interest rate risk;

•uncertainty surrounding the transition from LIBOR to an alternate reference rate;

•deterioration of economic conditions in the geographic regions where we operate;

•the soundness of other financial institutions;

•economic disruption related to interest rate risk and market risk due to the COVID-19 global pandemic and any of the related variants;

•our ability to attract and retain talented executives and employees and to manage our reputational risks;

•our ability to timely and effectively implement our strategic initiatives;

•increased competitive pressure;

•our ability to adapt our products and services to industry standards and consumer preferences;

•unanticipated adverse effects of strategic partnerships or acquisitions and dispositions of assets or businesses;

•our ability to develop and effectively use the quantitative models we rely upon in our business planning; and

•labor shortages and supply chain constraints.

Any forward-looking statements made by us or on our behalf speak only as of the date they are made, and we do not undertake any obligation to update any forward-looking statement to reflect the impact of subsequent events or circumstances. Before making an investment decision, you should carefully consider all risks and uncertainties disclosed in our 2020 Form 10-K and any subsequent reports filed with the SEC by Key, as well as our registration statements under the Securities Act of 1933, as amended, all of which are or will upon filing be accessible on the SEC’s website at www.sec.gov and on our website at www.key.com/ir.

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Long-term financial targets

(a)See the section entitled “GAAP to Non-GAAP Reconciliations,” which presents the computations of certain financial measures related to “cash efficiency.” The section includes tables that reconcile the GAAP performance measures to the corresponding non-GAAP measures, which provides a basis for period-to-period comparisons.

(a)See the section entitled “GAAP to Non-GAAP Reconciliations,” which presents the computations of certain financial measures related to “tangible common equity.” The section includes tables that reconcile the GAAP performance measures to the corresponding non-GAAP measures, which provides a basis for period-to-period comparisons.

Positive Operating Leverage

Generate positive operating leverage and a cash efficiency ratio in the range of 54.0% to 56.0%.

We again achieved positive operating leverage for the third quarter. Revenue for the quarter was up from the prior year driven by record investment banking fees. Our consumer mortgage and Laurel Road business continues to drive record consumer loan originations continuing the momentum seen in the previous quarter.

Moderate Risk Profile

Maintain a moderate risk profile by targeting a net loan charge-offs to average loans ratio in the range of .40% to .60% through a credit cycle.

We believe our strong risk management practices and disciplined underwriting continue to strengthen our credit quality. Our net charge-offs to average loans remains low reflecting the strong credit quality of our portfolio.

Financial Return

A return on average tangible common equity in the range of 16.0% to 19.0%.

We have continued to maintain a strong level of capital. We ended the third quarter of 2021 with a Common Equity Tier 1 ratio of 9.6%. We believe that this provides us with sufficient capacity to continue to support our customers and their borrowing needs and return capital to our shareholders, as evidenced by the repurchase of $593 million in common shares during the quarter.

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Selected financial data          

Our financial performance for each of the last five quarters is summarized in Figure 1.

Figure 1. Selected Financial Data

	2021									2020						Nine Months Ended September 30,
Dollars in millions, except per share amounts	Third			Second			First			Fourth			Third			2021			2020
FOR THE PERIOD
Interest income	$	1,087		$	1,090		$	1,087		$	1,125		$	1,119		$	3,264		$	3,560
Interest expense	71			73			82			90			119			226			561
Net interest income	1,016			1,017			1,005			1,035			1,000			3,038			2,999
Provision for credit losses	(107)			(222)			(93)			20			160			(422)			1,001
Noninterest income	797			750			738			802			681			2,285			1,850
Noninterest expense	1,112			1,076			1,071			1,128			1,037			3,259			2,981
Income (loss) from continuing operations before income taxes	808			913			765			689			484			2,486			867
Income (loss) from continuing operations attributable to Key	643			724			618			575			424			1,985			754
Income (loss) from discontinued operations, net of taxes	2			5			4			7			4			11			7
Net income (loss) attributable to Key	645			729			622			582			428			1,996			761
Income (loss) from continuing operations attributable to Key common shareholders	616			698			591			549			397			1,905			674
Income (loss) from discontinued operations, net of taxes	2			5			4			7			4			11			7
Net income (loss) attributable to Key common shareholders	618			703			595			556			401			1,916			681
PER COMMON SHARE
Income (loss) from continuing operations attributable to Key common shareholders	$	.65		$	.73		$	.61		$	.57		$	.41		$	1.99		$	.70
Income (loss) from discontinued operations, net of taxes	—			—			—			—			—			.01			.01
Net income (loss) attributable to Key common shareholders (a)	.66			.73			.62			.57			.41			2.00			.70
Income (loss) from continuing operations attributable to Key common shareholders — assuming dilution	.65			.72			.61			.56			.41			1.98			.69
Income (loss) from discontinued operations, net of taxes — assuming dilution	—			—			—			—			—			.01			.01
Net income (loss) attributable to Key common shareholders — assuming dilution (a)	.65			.73			.61			.57			.41			1.99			.70
Cash dividends paid	.185			.185			.185			.185			.185			.555			.555
Book value at period end	16.82			16.75			16.22			16.53			16.25			16.82			16.25
Tangible book value at period end	13.80			13.81			13.30			13.61			13.32			13.80			13.32
Weighted-average common shares outstanding (000)	942,446			957,423			964,878			967,987			967,804			955,069			967,632
Weighted-average common shares and potential common shares outstanding (000) (b)	952,523			967,163			974,297			976,460			973,988			964,781			974,280
AT PERIOD END
Loans	$	98,609		$	100,730		$	100,926		$	101,185		$	103,081		$	98,609		$	103,081
Earning assets	170,548			165,026			160,810			155,469			155,585			170,548			155,585
Total assets	187,035			181,115			176,203			170,336			170,540			187,035			170,540
Deposits	151,931			146,072			142,183			135,282			136,746			151,931			136,746
Long-term debt	13,165			13,211			12,499			13,709			12,685			13,165			12,685
Key common shareholders’ equity	15,610			16,041			15,734			16,081			15,822			15,610			15,822
Key shareholders’ equity	17,510			17,941			17,634			17,981			17,722			17,510			17,722
PERFORMANCE RATIOS — FROM CONTINUING OPERATIONS
Return on average total assets	1.41		%	1.63		%	1.44		%	1.35		%	1.00		%	1.50		%	.63		%
Return on average common equity	15.28			17.54			14.98			13.65			9.98			15.98			5.75
Return on average tangible common equity (c)	18.55			21.34			18.25			16.61			12.19			19.43			7.06
Net interest margin (TE)	2.47			2.52			2.61			2.70			2.62			2.53			2.78
Cash efficiency ratio (c)	60.2			59.9			60.3			60.3			60.6			60.1			60.2
PERFORMANCE RATIOS — FROM CONSOLIDATED OPERATIONS
Return on average total assets	1.41		%	1.64		%	1.45		%	1.36		%	1.00		%	1.50		%	.63		%
Return on average common equity	15.33			17.67			15.08			13.82			10.08			16.07			5.81
Return on average tangible common equity (c)	18.61			21.49			18.37			16.82			12.31			19.54			7.13
Net interest margin (TE)	2.46			2.55			2.60			2.69			2.62			2.52			2.78
Loan-to-deposit (d)	66.5			70.4			73.1			76.5			77.2			66.5			77.2
CAPITAL RATIOS AT PERIOD END
Key shareholders’ equity to assets	9.4		%	9.9		%	10.0		%	10.6		%	10.4		%	9.4		%	10.4		%
Key common shareholders’ equity to assets	8.4			8.9			9.0			9.5			9.3			8.4			9.3
Tangible common equity to tangible assets (c)	7.0			7.4			7.5			7.9			7.8			7.0			7.8
Common Equity Tier 1	9.6			9.9			9.9			9.7			9.5			9.6			9.5
Tier 1 risk-based capital	10.9			11.3			11.3			11.1			10.9			10.9			10.9
Total risk-based capital	12.7			13.2			13.4			13.4			13.3			12.7			13.3
Leverage	8.4			8.7			8.9			8.9			8.7			8.4			8.7
TRUST ASSETS
Assets under management	$	52,867		$	51,013		$	48,288		$	47,086		$	43,949		$	52,867		$	43,949
OTHER DATA
Average full-time-equivalent employees	17,009			17,003			17,086			17,029			17,097			17,034			16,758
Branches	1,000			1,014			1,068			1,073			1,077			1,000			1,077

(a)EPS may not foot due to rounding.

(b)Assumes conversion of Common Share options and other stock awards and/or convertible preferred stock, as applicable.

(c)See the section entitled “GAAP to Non-GAAP Reconciliations,” which presents the computations of certain financial measures related to “tangible common equity” and “cash efficiency.” The section includes tables that reconcile the GAAP performance measures to the corresponding non-GAAP measures, which provides a basis for period-to-period comparisons.

(d)Represents period-end consolidated total loans and loans held for sale divided by period-end consolidated total deposits.

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Strategic developments

Our actions and results during the third quarter of 2021 support our corporate strategy described in the “Introduction” section under the “Corporate strategy” heading on page 45 of our 2020 Form 10-K.

•We continued the momentum generated in the previous quarter to grow profitably and again achieved positive operating leverage for the third quarter. Revenue was up year over year driven by record third quarter investment banking fees. Both consumer mortgage and our Laurel Road business continue to drive consumer loan origination highs with $4.2 billion in originations for the third quarter.

•Expanding targeted client relationships continues to remain a focus as we continue to grow and deepen healthcare relationships across the franchise.

•During the third quarter, we effectively managed risk as net loan charge-offs were .11% of average loans, below our targeted range.

•We executed on the sale of our $3.3 billion indirect auto loan portfolio coupled with the purchase of senior notes from a securitization collateralized by the sold loans. The transaction removes potential credit risk and reduces reinvestment risk by way of Key holding the senior notes in the securitization.

•Our strong capital position allows us to continue to execute against each of our capital priorities of organic growth, dividends, and share repurchases. During the third quarter, the Board of Directors approved a common share dividend of $.185 per Common Share. Key also completed $593 million in share repurchases under the current $1.5 billion share repurchase authorization. Of the total share repurchases, $468 million were repurchased under an ASR program.

Demographics

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.

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.

Supervision and regulation

The following discussion provides a summary of recent regulatory developments and should be read in conjunction with the disclosure included in our 2020 Form 10-K under the heading “Supervision and Regulation” in Item 1. Business and under the heading “II. Compliance Risk” in Item 1A. Risk Factors.

Regulatory capital requirements

The final rule to implement the Basel III international capital framework (“Basel III”) was effective January 1, 2015, with a multi-year transition period (“Regulatory Capital Rules”). As of April 1, 2020, the Regulatory Capital Rules were fully phased-in for Key. The Basel III capital framework and the U.S. implementation of the Basel III capital framework are discussed in more detail in Item 1. Business of our 2020 Form 10-K under the heading “Supervision and Regulation — Regulatory capital requirements.”

Under the Regulatory Capital Rules, standardized approach banking organizations, such as KeyCorp and KeyBank, are required to meet the minimum capital and leverage ratios set forth in Figure 2 below. At September 30, 2021, KeyCorp’s ratios under the fully phased-in Regulatory Capital Rules are set forth in Figure 2.

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Figure 2. Minimum Capital Ratios and KeyCorp Ratios Under the Regulatory Capital Rules

Ratios (including stress capital buffer)	Regulatory Minimum Requirement		Stress Capital Buffer (b)		Regulatory Minimum With Stress Capital Buffer		KeyCorp September 30, 2021 (c)
Common Equity Tier 1	4.5	%	2.5	%	7.0	%	9.6	%
Tier 1 Capital	6.0		2.5		8.5		10.9
Total Capital	8.0		2.5		10.5		12.7
Leverage (a)	4.0		N/A		4.0		8.4

(a)As a standardized approach banking organization, KeyCorp is not subject to the 3% supplemental leverage ratio requirement, which became effective January 1, 2018.

(b)Stress capital buffer must consist of Common Equity Tier 1 capital. As a standardized approach banking organization, KeyCorp is not subject to the countercyclical capital buffer of up to 2.5% imposed upon an advanced approaches banking organization under the Regulatory Capital Rules.

(c)Ratios reflect the five-year transition of CECL impacts on regulatory ratios.

Revised prompt corrective action framework

The federal prompt corrective action (“PCA”) framework under the FDIA groups FDIC-insured depository institutions into one of five prompt corrective action capital categories: “well capitalized,” “adequately capitalized,” “undercapitalized,” “significantly undercapitalized,” and “critically undercapitalized.” In addition to implementing the Basel III capital framework in the United States, the Regulatory Capital Rules also revised the PCA capital category threshold ratios applicable to FDIC-insured depository institutions such as KeyBank, with an effective date of January 1, 2015. The revised PCA framework table in Figure 3 identifies the capital category thresholds for a “well capitalized” and an “adequately capitalized” institution under the PCA Framework.

Figure 3. "Well Capitalized" and "Adequately Capitalized" Capital Category Ratios under Revised PCA Framework

Prompt Corrective Action	Capital Category
Ratio	Well Capitalized (a)		Adequately Capitalized
Common Equity Tier 1 Risk-Based	6.5	%	4.5	%
Tier 1 Risk-Based	8.0		6.0
Total Risk-Based	10.0		8.0
Tier 1 Leverage (b)	5.0		4.0

(a)A “well capitalized” institution also must not be subject to any written agreement, order, or directive to meet and maintain a specific capital level for any capital measure.

(b)As a “standardized approach” banking organization, KeyBank is not subject to the 3% supplemental leverage ratio requirement, which became effective January 1, 2018.

As of September 30, 2021, KeyBank (consolidated) satisfied the risk-based and leverage capital requirements necessary to be considered “well capitalized” for purposes of the PCA framework. However, investors should not regard this determination as a representation of the overall financial condition or prospects of KeyBank because the PCA framework is intended to serve a limited supervisory function. Moreover, it is important to note that the PCA framework does not apply to BHCs, like KeyCorp.

Recent regulatory capital-related developments

See Item 1. Business of our 2020 Form 10-K under the heading “Supervision and Regulation - Regulatory capital requirements - Recent regulatory capital-related developments” for a discussion of recent regulatory capital-related developments.

Capital planning and stress testing

On January 19, 2021, the Federal Reserve issued a final rule to make conforming changes to the capital planning, regulatory reporting, and stress capital buffer requirements for firms subject to Category IV standards (including KeyCorp) to make these requirements consistent with the tailored regulatory framework for large banking organizations that the Federal Reserve adopted in an October 2019 rulemaking. The final rule revises the elements of the capital plan that Category IV firms are required to submit to the Federal Reserve and makes related changes to regulatory reporting requirements. Also, the final rule updates the frequency for calculating the stress capital buffer for these firms. In addition, the final rule makes certain clarifying changes to the stress testing rules applicable to all large banking organizations.

Due to the economic uncertainty caused by the COVID-19 pandemic, the Federal Reserve placed temporary restrictions on capital distributions by BHCs having more than $100 billion in total consolidated assets (including KeyCorp), that are in addition to limitations on capital distributions that apply under the Regulatory Capital Rules. On June 25, 2020, the Federal Reserve stated that for the third quarter of 2020, BHCs with more than $100 billion in total assets are prohibited from (i) making share repurchases (other than share repurchase relating to issuances of

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common stock for employee stock ownership plans); and (ii) paying common stock dividends that exceed the amount paid in the second quarter of 2020 or exceed an amount equal to the average of the firm’s net income for the four preceding calendar quarters unless otherwise specified by the Federal Reserve. The Federal Reserve continued these restrictions on dividends and share repurchases by large BHCs for the fourth quarter of 2020 in an announcement made on September 17, 2020.

On December 18, 2020, the Federal Reserve stated that because of the ongoing economic uncertainty, it was extending its limits on capital distributions by BHCs with more than $100 billion in total assets into the first quarter of 2021, with certain modifications. The Federal Reserve noted that these firms (i) are prohibited from increasing their common stock dividends to an amount greater than the amount paid in the second quarter of 2020; and (ii) are prohibited from paying common stock dividends and making share repurchases that, in the aggregate, exceed an amount equal to the average of the firm’s net income for the four preceding calendar quarters. The Federal Reserve further indicated that it was extending the time period for the Federal Reserve to notify firms whether their stress capital buffer requirements will be recalculated until March 31, 2021.

On March 25, 2021, the Federal Reserve said that it was continuing into the second quarter of 2021 the restrictions on dividends and share repurchases for BHCs with more than $100 billion in total assets that it announced on December 18, 2020, and indicated that it was extending the time period for the Federal Reserve to notify firms whether their stress capital buffer requirements will be recalculated until June 30, 2021. The Federal Reserve also announced that these temporary restrictions on BHC dividends and share repurchases would end for most firms after June 30, 2021. Firms subject to the Federal Reserve’s supervisory stress test in 2021 with capital levels above those required by the stress test will no longer be subject to the temporary additional restrictions after that date while firms with capital levels below those required by the stress test will remain subject to the restrictions. On June 24, 2021, the Federal Reserve announced that all 23 firms that participated in the Federal Reserve’s 2021 supervisory stress test had capital levels above the required minimum and are no longer subject to the temporary additional restrictions on dividends and share repurchases.

For BHCs that are on a two-year stress test cycle and were not subject to the Federal Reserve’s supervisory stress test in 2021 (including KeyCorp), the temporary additional restrictions on dividends and share repurchases ended after June 30, 2021. Beginning on July 1, 2021, these firms are allowed to make capital distributions that are consistent with the Regulatory Capital Rules, inclusive of the stress capital buffer requirement based on the firm’s June 2020 stress test. In August 2020, the Federal Reserve confirmed that KeyCorp’s required stress capital buffer, based on its June 2020 stress test, is 2.5%, which is the minimum buffer requirement for firms the size of KeyCorp. In August 2021, the Federal Reserve re-confirmed that KeyCorp’s required stress capital buffer is 2.5%.

See Item 1. Business of our 2020 Form 10-K under the heading “Supervision and Regulation - Regulatory capital requirements - Capital planning and stress testing” for an overview of capital planning and stress testing requirements.

Liquidity requirements

See Item. 1 Business of our 2020 Form 10-K under the heading “Supervision and Regulation - Regulatory capital requirements - Liquidity requirements” for a discussion of liquidity requirements, including the Liquidity Coverage Rules.

Resolution plans

The FDIC’s resolution plan rule requires insured depository institutions (“IDIs”) with $50 billion or more in total assets to submit periodically to the FDIC a resolution plan that will facilitate the FDIC’s resolution of the institution under the Federal Deposit Insurance Act in the event of the institution’s failure. On April 16, 2019, the FDIC issued an advance notice of proposed rulemaking requesting public comment on potential changes to its resolution plan rule and extended the due date for the next resolution plan for all institutions until after the completion of the rulemaking. On January 19, 2021, the FDIC issued a statement announcing that it will resume requiring IDIs with $100 billion or more in total assets to submit resolution plans.

On June 25, 2021, the FDIC issued a statement describing the modified approach that it plans to take in implementing certain aspects of its resolution plan rule with respect to IDIs with $100 billion or more in total assets (including KeyBank). In this statement, the FDIC (i) indicated that these institutions will be required to submit

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resolution plans on a three-year cycle; (ii) described the content requirements for these resolution plan submissions; and (iii) specified that there will be greater emphasis in the future on periodic engagement and capabilities testing by the FDIC with individual institutions. A key goal of the FDIC’s modified approach is to provide the FDIC with the information that it will need to meet the operational challenges of resolving an institution in a way that best preserves value and minimizes disruptions. The FDIC stated that resolution plans will be submitted in two groups, with the first group consisting of IDIs whose parent company is not a U.S. global systemically important bank or a Category II banking organization and the second group consisting of all other IDIs with $100 billion or more in total assets. KeyBank is in the first group.

See Item 1. Business of our 2020 Form 10-K under the heading “Supervision and Regulation - FDIA, Resolution Authority and Financial Stability” for a discussion of other recent developments concerning resolution plans.

Volcker Rule

The Volcker Rule is discussed in detail in Item 1. Business of our 2020 Form 10-K under the heading “Supervision and Regulation - Other Regulatory Developments - Volcker Rule.”

Community Reinvestment Act

The Community Reinvestment Act (“CRA”) was enacted in 1977 to encourage depository institutions to help meet the credit needs of the communities that they serve, including low- and moderate-income (“LMI”) neighborhoods, consistent with the institutions’ safe and sound operations. The CRA requires the federal banking agencies to assess the record of each institution that they supervise in meeting the credit needs of its entire community, including LMI neighborhoods.

On May 18, 2021, the OCC announced that it will reconsider a final rule that it adopted in 2020 to modernize the regulatory framework for implementing the CRA (the “2020 Final Rule”). The OCC said that it intends to evaluate issues and questions that have been raised concerning the 2020 Final Rule, consider additional stakeholder input, reassess relevant data, and take additional regulatory action, as appropriate. The OCC indicated that while its reconsideration is ongoing, banks subject to the 2020 Final Rule (including KeyBank) may suspend efforts to implement the provisions of the rule that have a compliance date of January 1, 2023, or January 1, 2024. In addition, the OCC stated that it does not plan to finalize a rule that it proposed in December 2020 to provide an approach for determining the benchmarks, thresholds, and minimums that would be used to assess a bank’s performance under the 2020 Final Rule. The OCC further said that it was discontinuing the CRA information collection published in December 2020 that relates to this subject.

On July 20, 2021, the OCC announced that it had completed its review of the 2020 Final Rule and that it plans to (i) propose rescinding the 2020 Final Rule; and (ii) work with the Federal Reserve and the FDIC to develop a joint rulemaking to strengthen and modernize regulations implementing the CRA. Also, on July 20, 2021, the OCC, the Federal Reserve, and the FDIC issued an interagency statement indicating that they are committed to working together to issue a joint rulemaking with respect to CRA modernization.

On September 8, 2021, the OCC requested public comment on a proposal to rescind the 2020 Final Rule and replace it with rules based largely on the CRA rules adopted jointly by the federal banking agencies in 1995. The OCC indicated that the adoption of this proposal would create consistency for all insured depository institutions and would facilitate the ongoing interagency work to modernize the CRA regulatory framework. Comments on the proposal were due by October 29, 2021.

See Item 1. Business of our 2020 Form 10-K under the heading “Supervision and Regulation - Other Regulatory Developments - Community Reinvestment Act” for a discussion of other recent developments concerning the CRA.

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Supervision and governance

On February 26, 2021, the Federal Reserve issued supervisory guidance describing the key attributes of effective boards of directors of large financial institutions, including BHCs with $100 billion or more in total consolidated assets. This supervisory guidance adopts a principles-based approach to describe attributes of effective boards of directors and provides illustrative examples of effective practices. The Federal Reserve indicated that it intends to use the board effectiveness guidance in informing its assessment of governance and controls at all firms subject to the large financial institution rating system (“LFI Rating System”) (including KeyCorp).

See Item 1. Business of our 2020 Form 10-K under the heading “Supervision and Regulation - Other Regulatory Developments - Supervision and governance” for a discussion of other recent supervision and governance-related developments, including a discussion of the LFI Rating System.

Regulatory developments concerning COVID-19

On March 30, 2021, President Biden signed into law the PPP Extension Act, which extended the deadline for submitting loan applications under this program from March 31, 2021, to May 31, 2021. KeyBank participates as a lender in the PPP, which provides SBA-guaranteed loans to small businesses.

On March 31, 2021, the CFPB announced that it is rescinding seven policy statements issued in 2020, which provided financial institutions with temporary regulatory flexibility in complying with various consumer protection laws when they are working with customers affected by the COVID-19 pandemic. The CFPB indicated that, with these rescissions, it intends to exercise the full scope of its supervision and enforcement authority provided by the Dodd-Frank Act.

The CFPB issued a compliance bulletin on April 1, 2021, urging mortgage servicers to take proactive measures to prevent avoidable foreclosures. The CFPB indicated that it will be closely monitoring how servicers engage with borrowers and will consider a servicer’s effectiveness in helping borrowers when it evaluates a servicer’s compliance with mortgage servicing rules.

On June 28, 2021, the CFPB issued a final rule that amends the CFPB’s mortgage servicing rules to help ensure that borrowers affected by the COVID-19 pandemic have a meaningful opportunity to be evaluated for loss mitigation before the initiation of foreclosure proceedings. Among other things, the final rule (i) establishes a temporary COVID-19 emergency pre-foreclosure review period that, with certain exceptions, prohibits servicers from commencing a foreclosure action involving a borrower’s principal residence until after December 31, 2021; (ii) permits servicers to offer borrowers experiencing a COVID-19 related hardship certain streamlined loan modification options based on the evaluation of an incomplete application; and (iii) revises the early intervention and reasonable diligence obligations of servicers to ensure that they communicate timely and accurate information to borrowers about their loss mitigation options. The final rule became effective on August 31, 2021. Certain requirements apply only until October 1, 2022.

See Item 1. Business of our 2020 Form 10-K under the heading “Supervision and Regulation - Other Regulatory Developments - Regulatory developments concerning COVID-19” for a discussion of other recent regulatory developments relating to the COVID-19 pandemic.

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Results of Operations

Earnings overview

The following chart provides a reconciliation of net income from continuing operations attributable to Key common shareholders for the three months ended September 30, 2020, to the three months ended September 30, 2021 (dollars in millions):

Net interest income

One of our principal sources of revenue is net interest income. Net interest income is the difference between interest income received on earning assets (such as loans and securities) and loan-related fee income, and interest expense paid on deposits and borrowings. There are several factors that affect net interest income, including:

•the volume, pricing, mix, and maturity of earning assets and interest-bearing liabilities;

•the volume and value of net free funds, such as noninterest-bearing deposits and equity capital;

•the use of derivative instruments to manage interest rate risk;

•interest rate fluctuations and competitive conditions within the marketplace;

•asset quality; and

•fair value accounting of acquired earning assets and interest-bearing liabilities.

To make it easier to compare both the results across several periods and the yields on various types of earning assets (some taxable, some not), we present net interest income in this discussion on a “TE basis” (i.e., as if all income were taxable and at the same rate). For example, $100 of tax-exempt income would be presented as $126, an amount that, if taxed at the statutory federal income tax rate of 21%, would yield $100.

Figure 4 shows the various components of our balance sheet that affect interest income and expense and their respective yields or rates over the past five quarters. This figure also presents a reconciliation of TE net interest income to net interest income reported in accordance with GAAP for each of those quarters. The net interest margin, which is an indicator of the profitability of the earning assets portfolio less cost of funding, is calculated by dividing annualized TE net interest income by average earning assets.

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TE net interest income was $1.0 billion for the third quarter of 2021, an increase of $19 million compared to the third quarter of 2020. The increase in TE net interest income reflects higher earning asset balances and lower interest-bearing deposit costs, partially offset by a lower net interest margin. The net interest margin was impacted by lower interest rates and a change in balance sheet mix, including elevated levels of liquidity, partly offset by higher loan fees from PPP loan forgiveness.

For the nine months ended September 30, 2021, TE net interest income increased $40 million from the same period last year and net interest margin decreased by 15 basis points. TE net interest income benefited from higher earning asset balances, lower interest bearing deposit costs, and higher loan fees from PPP loan forgiveness, partially offset by a lower net interest margin. The lower net interest margin was impacted by a change in balance sheet mix, including elevated levels of liquidity, and lower earning asset yields, partially offset by higher loan fees. Net interest income was also impacted by one less day in 2021.

Average loans were $100.1 billion for the third quarter of 2021, a decrease of $4.8 billion compared to the third quarter of 2020. Commercial loans decreased $7.5 billion, reflecting decreased utilization versus the year-ago period and a decline in PPP balances. Consumer loans increased $2.7 billion, reflecting strength from Key's consumer mortgage business and Laurel Road, partly offset by the sale of the indirect auto loan portfolio.

Average deposits totaled $146.9 billion for the third quarter of 2021, an increase of $12.0 billion compared to the year-ago quarter, reflecting growth from consumer and commercial relationships, including higher commercial escrow deposits, partially offset by a decline in time deposits.

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Figure 4. Consolidated Average Balance Sheets, Net Interest Income, and Yields/Rates and Components of Net Interest Income Changes from Continuing Operations

	Three months ended September 30, 2021						Three months ended September 30, 2020						Change in Net interest income due to
Dollars in millions	Average Balance		Interest (a)		Yield/ Rate (a)		Average Balance		Interest (a)		Yield/ Rate (a)		Volume		Yield/Rate		Total
ASSETS
Loans (b), (c)
Commercial and industrial (d)	$	49,868	$	445	3.54	%	$	57,067	$	474	3.31	%	$	(63)	$	34	$	(29)
Real estate — commercial mortgage	13,306		120		3.56		13,202		117		3.54		1		2		3
Real estate — construction	2,134		19		3.53		1,987		18		3.57		1		—		1
Commercial lease financing	3,922		27		2.80		4,488		35		3.10		(4)		(4)		(8)
Total commercial loans	69,230		611		3.50		76,744		644		3.34		(65)		32		(33)
Real estate — residential mortgage	13,168		92		2.78		8,398		73		3.46		35		(16)		19
Home equity loans	8,894		84		3.75		9,580		91		3.82		(6)		(1)		(7)
Consumer direct loans	5,175		59		4.55		4,403		56		5.07		9		(6)		3
Credit cards	917		23		10.07		967		25		10.24		(1)		(1)		(2)
Consumer indirect loans	2,754		22		3.15		4,827		44		3.66		(17)		(5)		(22)
Total consumer loans	30,908		280		3.60		28,175		289		4.10		20		(29)		(9)
Total loans	100,138		891		3.53		104,919		933		3.55		(45)		3		(42)
Loans held for sale	1,447		13		3.66		1,924		18		3.61		(4)		(1)		(5)
Securities available for sale (b), (e)	36,923		135		1.48		24,941		115		1.90		47		(27)		20
Held-to-maturity securities (b)	6,507		43		2.66		8,677		53		2.44		(14)		4		(10)
Trading account assets	743		4		2.19		686		3		2.08		—		1		1
Short-term investments	19,274		9		.18		12,525		1		.04		1		7		8
Other investments (e)	614		1		.99		640		2		1.49		—		(1)		(1)
Total earning assets	165,646		1,096		2.64		154,312		1,125		2.93		(15)		(14)		(29)
Allowance for loan and lease losses	(1,222)						(1,696)
Accrued income and other assets	16,947						16,195
Discontinued assets	618						752
Total assets	$	181,989					$	169,563
LIABILITIES
NOW and money market deposit accounts	$	85,333	10		.05		$	80,175	26		.13		2		(18)		(16)
Savings deposits	7,117		—		.01		5,478		1		.04		—		(1)		(1)
Certificates of deposit ($100,000 or more)	1,975		3		.59		3,862		16		1.60		(6)		(7)		(13)
Other time deposits	2,404		2		.26		3,735		11		1.17		(3)		(6)		(9)
Total interest-bearing deposits	96,829		15		.06		93,250		54		.23		(7)		(32)		(39)
Federal funds purchased and securities sold under repurchase agreements	231		—		.02		225		—		.05		—		—		—
Bank notes and other short-term borrowings	671		2		1.11		761		1		.68		—		1		1
Long-term debt (f), (g)	12,601		54		1.73		12,801		64		2.12		(1)		(9)		(10)
Total interest-bearing liabilities	110,332		71		.26		107,037		119		.45		(8)		(40)		(48)
Noninterest-bearing deposits	50,087						41,694
Accrued expense and other liabilities	3,053						2,350
Discontinued liabilities (g)	618						752
Total liabilities	164,090						151,833
EQUITY
Key shareholders’ equity	17,899						17,730
Noncontrolling interests	—						—
Total equity	17,899						17,730
Total liabilities and equity	$	181,989					$	169,563
Interest rate spread (TE)					2.38	%					2.48	%
Net interest income (TE) and net interest margin (TE)			1,025		2.47	%			1,006		2.62	%	$	(7)	$	26	19
TE adjustment (b)			9						6
Net interest income, GAAP basis			$	1,016					$	1,000

(a)Results are from continuing operations. Interest excludes the interest associated with the liabilities referred to in (g), calculated using a matched funds transfer pricing methodology.

(b)Interest income on tax-exempt securities and loans has been adjusted to a taxable-equivalent basis using the statutory federal income tax rate of 21% for the three months ended September 30, 2021, and September 30, 2020.

(c)For purposes of these computations, nonaccrual loans are included in average loan balances.

(d)Commercial and industrial average balances include $137 million and $129 million of assets from commercial credit cards for the three months ended September 30, 2021, and September 30, 2020, respectively.

(e)Yield is calculated on the basis of amortized cost.

(f)Rate calculation excludes basis adjustments related to fair value hedges.

(g)A portion of long-term debt and the related interest expense is allocated to discontinued liabilities as a result of applying our matched funds transfer pricing methodology to discontinued operations.

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Figure 4. Consolidated Average Balance Sheets, Net Interest Income, and Yields/Rates and Components of Net Interest Income Changes from Continuing Operations

	Nine months ended September 30, 2021						Nine months ended September 30, 2020						Change in Net interest income due to
Dollars in millions	Average Balance		Interest (a)		Yield/ Rate (a)		Average Balance		Interest (a)		Yield/ Rate (a)		Volume		Yield/Rate		Total
ASSETS
Loans (b), (c)
Commercial and industrial (d)	$	51,410	$	1,347	3.50	%	$	55,676	$	1,500	3.60	%	$	(113)	$	(40)	$	(153)
Real estate — commercial mortgage	12,932		351		3.63		13,419		400		3.98		(14)		(35)		(49)
Real estate — construction	2,111		58		3.65		1,804		55		4.06		9		(6)		3
Commercial lease financing	4,041		89		2.93		4,546		107		3.15		(11)		(7)		(18)
Total commercial loans	70,494		1,845		3.50		75,445		2,062		3.65		(129)		(88)		(217)
Real estate — residential mortgage	11,320		246		2.89		7,801		210		3.59		82		(46)		36
Home equity loans	9,089		257		3.78		9,894		301		4.07		(24)		(20)		(44)
Consumer direct loans	4,969		173		4.65		4,089		165		5.38		33		(25)		8
Credit cards	919		69		10.10		1,010		81		10.68		(7)		(5)		(12)
Consumer indirect loans	3,771		91		3.22		4,779		135		3.78		(26)		(18)		(44)
Total consumer loans	30,068		836		3.71		27,573		892		4.32		58		(114)		(56)
Total loans	100,562		2,681		3.56		103,018		2,954		3.83		(71)		(202)		(273)
Loans held for sale	1,531		35		3.03		2,090		58		3.68		(14)		(9)		(23)
Securities available for sale (b), (e)	33,553		398		1.60		22,297		365		2.25		151		(118)		33
Held-to-maturity securities (b)	6,713		133		2.64		9,274		171		2.46		(50)		12		(38)
Trading account assets	809		14		2.30		837		16		2.55		(1)		(1)		(2)
Short-term investments	18,211		20		.15		7,412		14		.24		14		(8)		6
Other investments (e)	616		5		1.14		642		3		.72		—		2		2
Total earning assets	161,995		3,286		2.71		145,570		3,581		3.30		29		(324)		(295)
Allowance for loan and lease losses	(1,427)						(1,403)
Accrued income and other assets	16,626						15,579
Discontinued assets	651						794
Total assets	$	177,845					$	160,540
LIABILITIES
NOW and money market deposit accounts	$	83,599	30		.05		$	74,087	194		.35		22		(186)		(164)
Savings deposits	6,730		1		.02		5,089		2		.04		1		(2)		(1)
Certificates of deposit ($100,000 or more)	2,250		13		.77		5,036		74		1.96		(29)		(32)		(61)
Other time deposits	2,644		8		.41		4,321		49		1.53		(14)		(27)		(41)
Total interest-bearing deposits	95,223		52		.07		88,533		319		.48		(20)		(247)		(267)
Federal funds purchased and securities sold under repurchase agreements	242		—		.03		821		6		.95		(2)		(4)		(6)
Bank notes and other short-term borrowings	764		6		.96		1,674		11		.87		(7)		2		(5)
Long-term debt (f), (g)	12,469		168		1.80		12,733		225		2.45		(5)		(52)		(57)
Total interest-bearing liabilities	108,698		226		.28		103,761		561		.73		(35)		(300)		(335)
Noninterest-bearing deposits	47,800						35,922
Accrued expense and other liabilities	2,853						2,518
Discontinued liabilities (g)	651						794
Total liabilities	160,002						142,995
EQUITY
Key shareholders’ equity	17,843						17,545
Noncontrolling interests	—						—
Total equity	17,843						17,545
Total liabilities and equity	$	177,845					$	160,540
Interest rate spread (TE)					2.44	%					2.57	%
Net interest income (TE) and net interest margin (TE)			3,060		2.53	%			3,020		2.78	%	$	64	$	(24)	$	40
TE adjustment (b)			22						21
Net interest income, GAAP basis			$	3,038					$	2,999

(a)Results are from continuing operations. Interest excludes the interest associated with the liabilities referred to in (g) below, calculated using a matched funds transfer pricing methodology.

(b)Interest income on tax-exempt securities and loans has been adjusted to a taxable-equivalent basis using the statutory federal income tax rate of 21% for the nine months ended September 30, 2021, and September 30, 2020, respectively.

(c)For purposes of these computations, nonaccrual loans are included in average loan balances.

(d)Commercial and industrial average balances include $131 million and $137 million of assets from commercial credit cards for the nine months ended September 30, 2021, and September 30, 2020, respectively.

(e)Yield is calculated on the basis of amortized cost.

(f)Rate calculation excludes basis adjustments related to fair value hedges.

(g)A portion of long-term debt and the related interest expense is allocated to discontinued liabilities as a result of applying Key’s matched funds transfer pricing methodology to discontinued operations.

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Provision for credit losses

Key’s provision for credit losses was a net benefit of $107 million, including a $136 million reserve release for the three months ended September 30, 2021, compared to an expense of $160 million for the three months ended September 30, 2020. The reserve release was largely driven by improvements in the economic outlook.

Noninterest income

As shown in Figure 5, noninterest income was $797 million, and represented 44% of total revenue for the third quarter of 2021, compared to $681 million, representing 40% of total revenue, for the year-ago quarter.

The following discussion explains the composition of certain elements of our noninterest income and the factors that caused those elements to change.

Figure 5. Noninterest Income

(a)Other noninterest income includes operating lease income and other leasing gains, corporate services income, corporate-owned life insurance income, consumer mortgage income, commercial mortgage servicing fees, and other income. See the "Consolidated Statements of Income" in Item 1. Financial Statements of this report.

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Trust and investment services income 

Trust and investment services income consists of brokerage commissions, trust and asset management fees, and insurance income. The assets under management that primarily generate these revenues are shown in Figure 6. For the three months ended September 30, 2021, trust and investment services income was up $1 million, or 0.8%, compared to the same period one year ago. For the nine months ended September 30, 2021, trust and investment services income was up $11 million, or 2.9%, from the nine months ended September 30, 2020. This was primarily due to an increase in trust and asset management fees partially related to higher levels of assets under management and market activity offset by decreased institutional brokerage income.

A significant portion of our trust and investment services income depends on the value and mix of assets under management. At September 30, 2021, our bank, trust, and registered investment advisory subsidiaries had assets under management of $52.9 billion, compared to $43.9 billion at September 30, 2020. Assets under management were up, as shown in Figure 6, due to increased portfolio yields.

Figure 6. Assets Under Management 

Dollars in millions	September 30, 2021		June 30, 2021		March 31, 2021		December 31, 2020		September 30, 2020
Discretionary assets under management by investment type:
Equity	$	31,361	$	30,952	$	29,071	$	27,384	$	24,851
Securities lending	13		135		155		131		130
Fixed income	13,673		13,384		11,865		12,130		11,767
Money market	4,425		3,266		4,127		4,495		4,564
Total Discretionary assets under management	49,472		47,737		45,218		44,140		41,312
Non-discretionary assets under management	3,395		3,276		3,070		2,946		2,637
Total assets under management	$	52,867	$	51,013	$	48,288	$	47,086	$	43,949

Investment banking and debt placement fees

Investment banking and debt placement fees consists of syndication fees, debt and equity securities underwriting fees, merger and acquistion and financial advisory fees, gains on sales of commercial mortgages, and agency origination fees. Investment banking and debt placement fees for the three months ended September 30, 2021,

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increased $89 million, or 61.0%, from the year-ago quarter. For the nine months ended September 30, 2021, investment banking and debt placement fees increased $196 million, or 46.9%, from the nine months ended September 30, 2020. These increases were driven by the low rate environment and strong stock and merger and acquisiton markets.

Service charges on deposit accounts

Service charges on deposit accounts increased $14 million, or 18.2%, for the three months ended September 30, 2021, compared to the same period one year ago. For the nine months ended September 30, 2021, service charges on deposits increased $18 million, or 7.9% from the same period a year ago. These increases were primarily driven by higher account analysis fees as well as client balances and spending habits.

Cards and payments income

Cards and payments income, which consists of debit card, prepaid card, consumer and commercial credit card, and merchant services income, decreased $3 million, or 2.6%, for the three months ended September 30, 2021, compared to the same period one year ago as a result of decreased spend in prepaid card, partially offset by growth in credit and debit card volume and merchant services activity. For the nine months ended September 30, 2021, cards and payment income was up $58 million, or 21.4%, from the same period a year ago. This increase was the result of higher transaction volumes and increased spend related to debit and credit card products and increased activity from merchant services.

Other noninterest income

Other noninterest income includes operating lease income and other leasing gains, corporate services income,

corporate-owned life insurance income, consumer mortgage income, commercial mortgage servicing fees, and other income. Other noninterest income for the three months ended September 30, 2021, increased $15 million, or 6.9%, from the year-ago quarter. For the nine months ended September 30, 2021, other noninterest income increased $152 million, or 27.7%, from the nine months ended September 30, 2020. These increases stemmed from higher commercial mortgage servicing income and corporate services income.

Noninterest expense

As shown in Figure 7, noninterest expense was $1.1 billion for the third quarter of 2021, compared to $1.0 billion for the third quarter of 2020. Noninterest expense was $3.3 billion for the nine months ended September 30, 2021, compared to $3.0 billion for the nine months ended September 30, 2020.

The following discussion explains the composition of certain elements of our noninterest expense and the factors that caused those elements to change.

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Figure 7. Noninterest Expense 

(a)Other noninterest expense includes equipment, operating lease expense, marketing, FDIC assessment, intangible asset amortization, OREO expense, net, and other expense. See the "Consolidated Statements of Income" in Item 1. Financial Statements of this report.

Personnel

Personnel expense, the largest category of our noninterest expense, increased by $52 million, or 8.8%, for the three months ended September 30, 2021, compared to the same period one year ago. For the nine months ended September 30, 2021, personnel expense was up $212 million, or 12.7%, from the nine months ended September 30, 2020. These increases reflect higher incentive and stock-based compensation, attributed to an increase in revenue and stock performance and an increase in employee benefits compared to the year ago quarter and the nine months ended September 30, 2020.

Other noninterest expense

Other noninterest expense includes equipment, operating lease expense, marketing, intangible asset amortization, and other miscellaneous expense categories. Other noninterest expense for the three months ended September 30, 2021, increased $10 million, or 3.8%, from the year-ago quarter, primarily due to an increase in marketing expense related to Laurel Road. For the nine months ended September 30, 2021, other noninterest expense increased $8 million, or 1.0%, from the nine months ended September 30, 2020 also primarily resulting from increased marketing expense.

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Income taxes

We recorded tax expense of $165 million for the third quarter of 2021 and $60 million for the third quarter of 2020.

Our federal tax expense and effective tax rate differs from the amount that would be calculated using the federal statutory tax rate; primarily from investments in tax-advantaged assets, such as corporate-owned life insurance, tax credits associated with energy related projects and low-income housing investments, and periodic adjustments to our tax reserves.

Additional information pertaining to how our tax expense (benefit) and the resulting effective tax rates were derived is included in Note 14 (“Income Taxes”) beginning on page 158 of our 2020 Form 10-K.

Business Segment Results

This section summarizes the financial performance of our two major business segments (operating segments): Consumer Bank and Commercial Bank. Note 20 (“Business Segment Reporting”) describes the products and services offered by each of these business segments and provides more detailed financial information pertaining to the segments. For more information on the segment imperatives and market and business overview, see “Business Segment Results” beginning on page 54 of our 2020 Form 10-K. Dollars in the charts are presented in millions.

Consumer Bank

Summary of operations

•Net income attributable to Key of $241 million for the third quarter of 2021, compared to $229 million for the year-ago quarter

•Taxable-equivalent net interest income decreased by $16 million, or 2.7%, compared to the third quarter of 2020, driven by the lower interest rate environment, partially offset by strong consumer mortgage balance sheet growth and fees related to PPP loans

•Average loans and leases increased $1.4 billion, or 3.8%, driven by growth in consumer mortgage, partially offset by the sale of the indirect auto loan portfolio totaling $3.3 billion

•Average deposits increased $6.3 billion, or 7.6%, from the third quarter of 2020, driven by retention of consumer stimulus payments and relationship growth

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•Provision for credit losses decreased $35 million compared to the third quarter of 2020. The provision for credit losses was a net benefit and was driven by improvements in expected economic conditions and continued strength in client credit quality

•Noninterest income increased $22 million, or 8.3%, from the year ago quarter, driven by higher service charges on deposit accounts and cards and payments income, partially offset by lower consumer mortgage income, due to lower gain on sale margins

•Noninterest expense increased $24 million, or 4.2%, from the year ago quarter, driven by higher production-related incentives and support expenses related to higher loan volumes

Commercial Bank

Summary of operations

•Net income attributable to Key of $384 million for the third quarter of 2021, compared to $173 million for the year-ago quarter

•Taxable-equivalent net interest income decreased by $13 million, compared to the third quarter of 2020, as lower average loan balances offset fees related to PPP loans

•Average loan and lease balances decreased $6.5 billion, compared to the third quarter of 2020, driven by lower commercial and industrial line draws and PPP loan forgiveness

•Average deposit balances increased $5.0 billion, or 9.6%, compared to the third quarter of 2020, driven by growth in targeted relationships and the impact of government programs

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•Provision for credit losses decreased $219 million compared to the third quarter of 2020. The provision for credit losses was a net benefit and was driven by expected improvements in economic conditions

•Noninterest income increased $93 million, from the year-ago quarter, driven by elevated investment banking client activity and commercial mortgage servicing fees, partially offset by lower cards and payments income as individuals roll off unemployment benefits

•Noninterest expense increased by $23 million, or 5.1%, from the third quarter of 2020, driven by higher production-related incentives related to strong revenue production

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Financial Condition

Loans and loans held for sale

Figure 8. Breakdown of Loans at September 30, 2021

(a)Other consumer loans include Consumer direct loans, Credit cards, and Consumer indirect loans. See Note 3 (“Loan Portfolio”) in Item 1. Financial Statements of this report.

At September 30, 2021, total loans outstanding from continuing operations were $98.6 billion, compared to $101.2 billion at December 31, 2020. For more information on balance sheet carrying value, see Note 1 (“Summary of Significant Accounting Policies”) under the headings “Loans” and “Loans Held for Sale” starting on page 100 of our 2020 Form 10-K.

COVID-19 Hardship Relief Programs

In response to the COVID-19 pandemic, beginning in March 2020, we began providing relief and flexibility to our customers through a variety of solutions, including fee waivers, short-term loan modifications, and payment deferrals as well as the suspension of vehicle repossessions and home foreclosures. While the solutions for our commercial borrowers are individually negotiated and tailored to each borrower’s specific facts and circumstances, the most commonly offered relief measures included temporary covenant waivers and/or deferrals of principal and/or interest payments for up to 90 days. We have also granted short-term loan modifications for our consumer loan customers through extensions, deferrals, and forbearance.

The following table provides a summary of portfolio loans and leases as of September 30, 2021, and December 31, 2020, that have received a payment deferral or forbearance as part of our COVID-19 hardship relief programs:

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Figure 9. Loans and Leases COVID-19 Hardship Relief

	Outstanding Balance of Loans and Leases
September 30, 2021
Dollars in millions	Completed Relief		In Active Relief		Total that have Received Payment Relief
Commercial Loans	$	2,092	$	58	$	2,150
Consumer Loans	883		115		998
Total Portfolio Loans and Leases	$	2,975	$	173	$	3,148
December 31, 2020
Dollars in millions	Completed Relief		In Active Relief		Total that have Received Payment Relief
Commercial Loans	$	2,899	$	181	$	3,079
Consumer Loans	1,179		394		1,572
Total Portfolio Loans and Leases	$	4,077	$	575	$	4,652

The total outstanding balance of commercial loans in active relief as of September 30, 2021, represented 0.1% of the commercial loan portfolio and the total outstanding balance of consumer loans in active relief as of September 30, 2021, represented 0.4% of the consumer loan portfolio.

Under the CARES Act as well as banking regulator interagency guidance, certain loan modifications to borrowers experiencing financial distress as a result of the economic impacts created by COVID-19 may not be required to be treated as TDRs under U.S. GAAP.  For COVID-19 related loan modifications which occurred from March 1, 2020, through September 30, 2021, and met the loan modification criteria under either the CARES Act or the criteria specified by the regulatory agencies or were otherwise considered to be short term in nature, we have elected to suspend TDR accounting for such loan modifications.  Additionally, loans qualifying for these modifications are not required to be reported as delinquent, nonaccrual, impaired, or criticized solely as a result of a COVID-19 loan modification. Refer to Note 4 (“Asset Quality”) under the headings “TDRs” and “Nonperforming and Past Due Loans.”

For loans that receive a payment deferral or forbearance under these hardship relief programs, we continue to accrue interest and recognize interest income during the period of the deferral. Depending on the terms of each program, all or a portion of this accrued interest may be paid directly by the borrower (either during the relief period, at the end of the relief period, or at maturity of the loan) or added to the customer’s outstanding balance. For certain programs, the maturity date of the loan may also be extended by the number of payments deferred. Interest income will continue to be accrued at the original contractual interest rate unless that rate is concurrently modified upon entering the relief program (in which case, the modified rate would be used to recognize interest).

Commercial loan portfolio

Commercial loans outstanding were $69.3 billion at September 30, 2021, a decrease of $2.7 billion, or 3.7%, compared to December 31, 2020, driven by a decline in PPP balances. Excluding the impact of PPP loans, commercial loans increased $0.9 billion, or 1.3%, reflecting core portfolio growth in commercial and industrial loans and commercial real estate loans.

As a result of the current economic environment, our commercial loan portfolio is going through active portfolio surveillance. We are conducting ongoing portfolio reviews on our commercial loans with any risk rating migrations being closely monitored. We have centralized internal reporting on enterprise-wide relief initiatives, as well as following any potential relief initiatives that may come in the future. We established a pandemic watchlist and are performing ongoing reviews of commercial clients that are likely to be impacted by COVID-19. These clients represent a small portion of the overall portfolio and are diversified by type and geography. Figure 10 summarizes our commercial portfolios that are at risk of being impacted by the COVID-19 pandemic as of September 30, 2021, and December 31, 2020.

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Figure 10. Select Commercial Portfolio Focus Areas

Dollars in millions	Outstanding as of September 30, 2021		Percentage of total loans as of September 30, 2021		Outstanding as of December 31, 2020		Percentage of total loans as of December 31, 2020
Consumer behavior (a)	$	5,149	5.2	%	$	5,083	5.0	%
Education	1,615		1.6		1,541		1.5
Sports	560		.6		690		.7
Restaurants	400		.4		400		.4
Retail commercial real estate (b)	349		.4		525		.5
Nondurable retail (c)	620		.6		638		.6
Travel/Tourism (d)	2,269		2.3		2,523		2.5
Hotels	698		.7		784		.8
Leveraged lending (e)	1,846		1.9		1,700		1.7
Oil and gas	1,862		1.9		1,992		2.0
Upstream (reserve based)	1,234		1.3		1,263		1.2
Midstream	371		.4		468		.5
Downstream	64		.1		98		.1

(a)Consumer behavior includes restaurants, sports, entertainment and leisure, services, education, etc.

(b)Retail commercial real estate is mainly composed of regional malls, strip centers (unanchored) and lifestyle centers.

(c)Nondurable retail includes direct lending to retailers including apparel, hobby shops, nursery garden centers, cosmetics, and gas stations with convenience stores.

(d)Travel/Tourism includes hotels, tours, and air/water/rail leasing.

(e)Leveraged lending exposures have total debt to EBITDA greater than four times or senior debt to EBITDA greater than three times and meet the purpose test (the new debt finances a buyout, acquisition, or capital distribution).

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Figure 11 provides our commercial loan portfolios by industry classification at September 30, 2021, and December 31, 2020.

Figure 11. Commercial Loans by Industry

September 30, 2021	Commercial and industrial		Commercial real estate		Commercial lease financing		Total commercial loans		Percent of total
Dollars in millions
Industry classification:
Agriculture	$	898	$	150	$	87	$	1,135	1.7	%
Automotive	1,093		592		18		1,703		2.5
Business products	1,580		133		42		1,755		2.5
Business services	3,355		229		189		3,773		5.4
Chemicals	764		35		22		821		1.2
Commercial real estate	6,325		11,085		9		17,419		25.1
Construction materials and contractors	2,354		323		238		2,915		4.2
Consumer goods	3,674		499		244		4,417		6.4
Consumer services	5,095		923		444		6,462		9.3
Equipment	1,431		82		115		1,628		2.3
Finance	6,328		87		369		6,784		9.8
Healthcare	3,040		1,365		254		4,659		6.7
Metals and mining	1,093		75		57		1,225		1.8
Oil and gas	1,825		22		40		1,887		2.7
Public exposure	2,947		16		674		3,637		5.2
Technology	679		10		183		872		1.3
Transportation	1,280		113		574		1,967		2.8
Utilities	5,055		—		407		5,462		7.9
Other	737		55		16		808		1.2
Total	$	49,553	$	15,794	$	3,982	$	69,329	100.0	%
December 31, 2020	Commercial and industrial		Commercial real estate		Commercial lease financing		Total commercial loans		Percent of total
Dollars in millions
Industry classification:
Agriculture	$	1,002	$	148	$	97	$	1,247	1.7	%
Automotive	1,863		510		19		2,392		3.3
Business products	1,523		117		45		1,685		2.3
Business services	4,098		221		202		4,521		6.3
Chemicals	700		30		34		764		1.1
Commercial real estate	5,966		10,187		11		16,164		22.5
Construction materials and contractors	2,571		271		233		3,075		4.3
Consumer goods	3,832		404		371		4,607		6.4
Consumer services	6,123		900		525		7,548		10.5
Equipment	1,447		84		120		1,651		2.3
Finance	6,190		92		396		6,678		9.3
Healthcare	4,348		1,396		306		6,050		8.4
Metals and mining	1,074		56		29		1,159		1.6
Oil and gas	1,928		43		62		2,033		2.8
Public exposure	2,332		25		709		3,066		4.3
Technology	741		20		191		952		1.2
Transportation	1,434		144		631		2,209		3.1
Utilities	5,239		1		397		5,637		7.8
Other	496		25		21		542		.8
Total	$	52,907	$	14,674	$	4,399	$	71,980	100.0	%

Commercial and industrial. Commercial and industrial loans are the largest component of our loan portfolio, representing 50% of our total loan portfolio at September 30, 2021, and 52% at December 31, 2020. This portfolio is approximately 78% variable rate and consists of loans originated primarily to large corporate, middle market, and small business clients.

Commercial and industrial loans totaled $49.6 billion at September 30, 2021, a decrease of $3.4 billion, or 6.3%, compared to December 31, 2020. The decline was broad-based and spread across most industry categories, reflecting an increase in the forgiveness of PPP loans in 2021. Excluding the the impact of PPP loans, commercial and industrial loans increased $0.2 billion, or 0.4%, and reflects a slight increase in commercial utilization rates.

Commercial real estate loans. Our commercial real estate portfolio includes both mortgage and construction loans and is conducted through two primary sources: our 15-state banking franchise, and KeyBank Real Estate Capital, a national line of business within the Commercial Bank that cultivates relationships with owners of commercial real estate located both within and beyond the branch system. Nonowner-occupied properties, generally properties for which at least 50% of the debt service is provided by rental income from nonaffiliated third parties, represented 79% of total commercial real estate loans outstanding at September 30, 2021. Construction loans, which provide a

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stream of funding for properties not fully leased at origination to support debt service payments over the term of the contract or project, represented 13% of commercial real estate loans at period end.

At September 30, 2021, commercial real estate loans totaled $15.8 billion, which includes $13.7 billion of mortgage loans and $2.1 billion of construction loans. Compared to December 31, 2020, this portfolio increased $1.1 billion, or 7.6%, driven by growth in multi-family lending. We continue to focus primarily on owners of completed and stabilized commercial real estate in accordance with our relationship strategy.

As shown in Figure 12, our commercial real estate loan portfolio includes various property types and geographic

locations of the underlying collateral. These loans include commercial mortgage and construction loans in both

Consumer Bank and Commercial Bank.

Figure 12. Commercial Real Estate Loans

	Geographic Region														Total		Percent of Total		Construction		Commercial Mortgage
Dollars in millions	West		Southwest		Central		Midwest		Southeast		Northeast		National
September 30, 2021
Nonowner-occupied:
Retail properties	$	121	$	15	$	129	$	152	$	55	$	338	$	225	$	1,035	6.5	%	$	67	$	966
Multifamily properties	742		505		1,133		1,051		1,500		1,434		242		6,607		41.8		1,492		5,114
Health facilities	118		51		112		90		168		490		317		1,346		8.5		137		1,209
Office buildings	279		1		239		136		144		556		73		1,428		9.1		29		1,400
Warehouses	81		56		69		39		139		234		146		764		4.9		69		697
Manufacturing facilities	7		—		21		30		32		36		48		174		1.1		—		175
Hotels/Motels	75		—		21		4		16		108		97		321		2.0		19		302
Residential properties	—		—		—		3		—		47		—		50		.3		2		48
Land and development	13		4		4		2		5		25		—		53		.3		32		21
Other	130		21		9		81		57		203		264		765		4.9		59		705
Total nonowner-occupied	1,566		653		1,737		1,588		2,116		3,471		1,412		12,543		79.4		1,906		10,637
Owner-occupied	1,012		—		305		517		126		1,291		—		3,251		20.6		214		3,037
Total	$	2,578	$	653	$	2,042	$	2,105	$	2,242	$	4,762	$	1,412	$	15,794	100.0	%	$	2,120	$	13,674
Nonperforming loans	$	—	—		—		$	3	$	—	$	18	$	28	$	49	N/M		$	—	$	49
Accruing loans past due 90 days or more	—		—		—		1		—		5		—		6		N/M		1		5
Accruing loans past due 30 through 89 days	2		—		—		9		—		4		—		15		N/M		1		14
December 31, 2020
Nonowner-occupied:
Retail properties	$	119	$	15	$	129	$	122	$	72	$	448	$	122	$	1,027	6.8	%	$	54	$	973
Multifamily properties	685		228		875		800		1,284		1,493		229		5,594		38.1		1,442		4,152
Health facilities	83		53		85		87		170		487		338		1,303		8.7		91		1,212
Office buildings	276		—		253		142		193		628		147		1,639		11.2		48		1,591
Warehouses	54		31		66		40		52		259		161		663		4.6		74		589
Manufacturing facilities	42		—		28		15		40		34		43		202		1.3		10		192
Hotels/Motels	76		—		19		—		12		107		91		305		2.1		18		287
Residential properties	—		—		—		3		—		53		—		56		.4		—		56
Land and development	15		5		—		2		5		28		—		55		.4		33		22
Other	108		22		6		93		69		245		279		822		6.4		65		757
Total nonowner-occupied	1,458		354		1,461		1,304		1,897		3,782		1,410		11,666		80.0		1,835		9,831
Owner-occupied	870		4		275		499		63		1,297		—		3,008		20.0		152		2,856
Total	$	2,328	$	358	$	1,736	$	1,803	$	1,960	$	5,079	$	1,410	$	14,674	100.0	%	$	1,987	$	12,687
Nonperforming loans	$	1	—		—		$	7	$	6	$	44	$	44	$	102	N/M		$	—	$	102
Accruing loans past due 90 days or more	—		—		—		1		—		22		—		23		N/M		1		22
Accruing loans past due 30 through 89 days	3		—		—		2		3		7		—		15		N/M		—		15

West –	Alaska, California, Hawaii, Idaho, Montana, Oregon, Washington, and Wyoming
Southwest –	Arizona, Nevada, and New Mexico
Central –	Arkansas, Colorado, Oklahoma, Texas, and Utah
Midwest –	Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, and Wisconsin
Southeast –	Alabama, Delaware, Florida, Georgia, Kentucky, Louisiana, Maryland, Mississippi, North Carolina, South Carolina, Tennessee, Virginia, Washington D.C., and West Virginia
Northeast –	Connecticut, Maine, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, and Vermont
National –	Accounts in three or more regions

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Consumer loan portfolio

Consumer loans outstanding as of September 30, 2021 totaled $29.3 billion, an increase of $75.0 million, or .3%, from December 31, 2020. Consumer loans continue to reflect strength from the consumer mortgage business and Laurel Road, offset by the sale of the indirect auto loan portfolio, which reduced consumer loans by $3.3 billion.

The home equity portfolio is comprised of loans originated by our Consumer Bank within our 15-state footprint and is the largest segment of our consumer loan portfolio, representing 30% of consumer loans outstanding at September 30, 2021. 

We held the first lien position for approximately 70% of the home equity portfolio at September 30, 2021, and 66% at December 31, 2020. For loans with real estate collateral, we track borrower performance monthly. Regardless of the lien position, credit metrics are refreshed quarterly, including recent FICO scores as well as updated loan-to-value ratios. This information is used in establishing the ALLL. Our methodology is described in Note 1 (“Basis of Presentation and Accounting Policies”) under the heading “Allowance for Loan and Lease Losses” of this report.

Figure 13. Consumer Loans by State

Dollars in millions	Real estate — residential mortgage		Home equity loans		Consumer direct loans		Credit cards		Consumer indirect loans		Total
September 30, 2021
New York	$	1,272	$	2,526	$	617	$	329	$	3	$	4,747
Ohio	1,042		1,339		464		196		9		3,050
Washington	3,772		1,128		228		79		3		5,210
Pennsylvania	343		645		291		51		4		1,334
California	1,521		14		383		3		12		1,933
Texas	160		5		313		4		5		487
Colorado	1,169		285		150		28		—		1,632
Connecticut	843		325		93		24		2		1,287
Oregon	964		702		109		39		1		1,815
Florida	523		53		326		12		10		924
Other	2,595		1,725		2,350		163		28		6,861
Total	$	14,204	$	8,747	$	5,324	$	928	$	77	$	29,280
December 31, 2020
New York	$	1,164	$	2,553	$	593	$	353	$	731	$	5,394
Ohio	698		1,375		479		217		957		3,726
Washington	1,835		1,300		236		86		20		3,477
Pennsylvania	286		648		255		52		539		1,780
California	516		14		303		4		19		856
Texas	74		7		241		3		10		335
Colorado	828		345		140		30		6		1,349
Connecticut	914		352		87		25		141		1,519
Oregon	720		782		97		41		4		1,644
Massachusetts	239		48		103		5		460		855
Other	2,024		1,936		2,180		173		1,957		8,270
Total	$	9,298	$	9,360	$	4,714	$	989	$	4,844	$	29,205

Figure 14 summarizes our loan sales for the first nine months of 2021 and all of 2020.

Figure 14. Loans Sold (Including Loans Held for Sale)  

Dollars in millions	Commercial		Commercial Real Estate		Commercial Lease Financing		Residential Real Estate		Consumer Direct		Consumer indirect		Total
2021
Third quarter	$	215	$	1,996	$	68	$	901	—		$	3,305	$	6,485
Second quarter	1,085		1,907		75		1,192		—		—		4,259
First quarter	124		1,930		156		1,129		—		—		3,339
Total	$	1,424	$	5,833	$	299	$	3,222	—		$	3,305	$	14,083
2020
Fourth quarter	$	197	$	2,412	$	135	$	1,256	—		—		$	4,000
Third quarter	163		1,999		67		1,235		$	208	—		3,672
Second quarter	82		2,661		47		925		—		—		3,715
First quarter	55		2,022		81		546		—		—		2,704
Total	$	497	$	9,094	$	330	$	3,962	$	208	—		$	14,091

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Figure 15 shows loans that are either administered or serviced by us, but not recorded on the balance sheet; this includes loans that were sold.

Figure 15. Loans Administered or Serviced  

Dollars in millions	September 30, 2021		June 30, 2021		March 31, 2021		December 31, 2020		September 30, 2020
Commercial real estate loans	$	422,091	$	400,215	$	386,908	$	371,016	$	380,110
Residential mortgage	9,844		9,466		8,838		8,311		7,670
Education loans	442		465		489		516		540
Commercial lease financing	1,318		1,284		1,371		1,359		1,273
Commercial loans	743		716		695		684		652
Consumer direct	798		943		1,109		1,711		1,966
Consumer indirect	3,109		—		—		—		—
Total	$	438,345	$	413,089	$	399,410	$	383,597	$	392,211

In the event of default by a borrower, we are subject to recourse with respect to approximately $6.3 billion of the $438.3 billion of loans administered or serviced at September 30, 2021. Additional information about this recourse arrangement is included in Note 17 (“Contingent Liabilities and Guarantees”) under the heading “Recourse agreement with FNMA.”

We derive income from several sources when retaining the right to administer or service loans that are sold. We earn noninterest income (recorded as “Consumer mortgage income” and “Commercial mortgage servicing fees”) from fees for servicing or administering loans. This fee income is reduced by the amortization of related servicing assets. In addition, we earn interest income from investing funds generated by escrow deposits collected in connection with the servicing loans. Additional information about our mortgage servicing assets is included in Note 8 (“Mortgage Servicing Assets”).

Securities

Our securities portfolio totaled $49.0 billion at September 30, 2021, compared to $35.2 billion at December 31, 2020. Available-for-sale securities were $40.6 billion at September 30, 2021, compared to $27.6 billion at December 31, 2020. Held-to-maturity securities were $8.4 billion at September 30, 2021, and $7.6 billion at December 31, 2020.

As shown in Figure 16, all of our mortgage-backed securities, which include both securities available-for-sale and held-to-maturity securities, are issued by government-sponsored enterprises or GNMA, and are traded in liquid secondary markets. These securities are recorded on the balance sheet at fair value for the available-for-sale portfolio and at amortized cost for the held-to-maturity portfolio. For more information about these securities, see Note 1 (“Basis of Presentation and Accounting Policies”), Note 5 (“Fair Value Measurements”) under the heading “Qualitative Disclosures of Valuation Techniques,” and Note 6 (“Securities”).

Figure 16. Mortgage-Backed Securities by Issuer 

Dollars in millions	September 30, 2021		December 31, 2020
FHLMC	$	9,213	$	8,782
FNMA	17,317		13,213
GNMA	10,673		12,109
Total (a)	$	37,203	$	34,104

(a) Includes securities held in the available-for-sale and held-to-maturity portfolios

Securities available for sale

The majority of our securities available-for-sale portfolio consists of Federal Agency CMOs and mortgage-backed securities. CMOs are debt securities secured by a pool of mortgages or mortgage-backed securities. These mortgage securities generate interest income, serve as collateral to support certain pledging agreements, and provide liquidity value to help meet regulatory requirements.

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Figure 17 shows the composition, yields, and remaining maturities of our securities available for sale. For more information about these securities, including gross unrealized gains and losses by type of security and securities pledged, see Note 6 (“Securities”).

Figure 17. Securities Available for Sale

Dollars in millions	U.S. Treasury, Agencies, and Corporations			Agency Residential Collateralized Mortgage Obligations (a)			Agency Residential Mortgage-backed Securities (a)			Agency Commercial Mortgage-backed Securities (a)			Other Securities			Total			Weighted-Average Yield (b)
September 30, 2021
Remaining maturity:
One year or less	—			$	222		$	3		—			$	22		$	247		2.07	%
After one through five years	$	8,938		5,954			2,450			$	2,734		—			20,076			1.32
After five through ten years	—			8,943			2,740			5,444			1			17,128			1.50
After ten years	—			985			215			1,943			—			3,143			1.50
Fair value	$	8,938		$	16,104		$	5,408		$	10,121		$	23		$	40,594		—
Amortized cost	$	8,960		$	16,143		$	5,409		$	10,141		$	8		$	40,661		1.42	%
Weighted-average yield (b)	.36		%	1.56		%	1.60		%	2.02		%	.04		%	1.42		%	—
Weighted-average maturity	2.7 years			6.1 years			5.2 years			7.9 years			.6 years			5.7 years			—
December 31, 2020
Fair value	$	1,000		$	14,273		$	2,164		$	10,106		$	13		$	27,556		—
Amortized cost	1,000			14,001			2,094			9,707			8			26,810			2.09	%

(a)Maturity is based upon expected average lives rather than contractual terms.

(b)Weighted-average yields are calculated based on amortized cost. Such yields have been adjusted to a TE basis using the statutory federal income tax rate of 21%.

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Held-to-maturity securities

The majority of our held-to-maturity portfolio consists of Federal agency CMOs and mortgage-backed securities. This portfolio is also comprised of asset-backed securities that were acquired as the result of balance sheet optimization strategies, including the indirect auto portfolio transaction in the third quarter of 2021. The remaining balance is comprised of foreign bonds. Figure 18 shows the composition, yields, and remaining maturities of these securities.

Figure 18. Held-to-Maturity Securities

Dollars in millions	Agency Residential Collateralized Mortgage Obligations (a)			Agency Residential Mortgage-backed Securities (a)			Agency Commercial Mortgage-backed Securities (a)			Asset-backed securities			Other Securities			Total			Weighted-Average Yield (b)
September 30, 2021
Remaining maturity:
One year or less	$	89		—			—			—			$	4		$	93		2.15	%
After one through five years	1,668			$	158		$	1,655		$	2,837		12			6,330			2.27
After five through ten years	728			26			1,246			—			—			2,000			2.63
After ten years	—			—			—			—			—			—			—
Amortized cost	$	2,485		$	184		$	2,901		$	2,837		$	16		$	8,423		2.36	%
Fair value	$	2,554		$	191		$	3,066		$	2,837		$	16		$	8,664		—
Weighted-average yield (b)	2.10		%	2.50		%	2.82		%	2.10		%	2.63		%	2.36		%	—
Weighted-average maturity	3.8 years			4.4 years			4.9 years			2.8 years			2.3 years			3.9 years			—
December 31, 2020
Amortized cost	$	3,775		$	271		$	3,515		19			$	15		$	7,595		2.46	%
Fair value	3,899			285			3,805			19			15			8,023			—

(a)Maturity is based upon expected average lives rather than contractual terms.

(b)Weighted-average yields are calculated based on amortized cost. Such yields have been adjusted to a TE basis using the statutory federal income tax rate of 21%.

Deposits and other sources of funds

Figure 19. Breakdown of Deposits at September 30, 2021

Deposits are our primary source of funding. At September 30, 2021, our deposits totaled $151.9 billion, an increase of $16.6 billion compared to December 31, 2020. The increase was driven by growth from consumer and commercial relationships, including higher commercial escrow deposits, as well as growth from the retention of consumer stimulus payments and lower consumer spending.

Wholesale funds, consisting of short-term borrowings and long-term debt, totaled $14.2 billion at September 30, 2021, compared to $14.7 billion at December 31, 2020. Strong deposit growth and elevated levels of liquidity resulted in less reliance on wholesale funds to support the growth in the balance sheet.

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Capital

The objective of capital management is to maintain capital levels consistent with our risk appetite and of a sufficient amount to operate under a wide range of economic conditions. We have identified three primary uses of capital:

1. Investing in our businesses, supporting our clients, and loan growth;

2. Maintaining or increasing our Common Share dividend; and

3. Returning capital in the form of Common Share repurchases to our shareholders.

The following sections discuss certain ways we have deployed our capital. For further information, see the Consolidated Statements of Changes in Equity and Note 19 (“Shareholders' Equity”).

(a)Common Share repurchases which were suspended during the first quarter of 2020 in response to the COVID-19 pandemic resumed in the first quarter of 2021.

(b)The dividend payout ratio for the first and second quarters of 2020 was impacted by lower EPS which was impacted by the economic fallout from the COVID-19 pandemic.

Dividends

Consistent with our 2020 capital plan, we paid a quarterly dividend of $.185 per Common Share for the third quarter of 2021. Further information regarding the capital planning process and CCAR is included under the heading “Capital planning and stress testing” in the “Supervision and Regulation” section beginning on page 15 of our 2020 Form 10-K.

Common shares outstanding

Our Common Shares are traded on the NYSE under the symbol KEY with 31,037 holders of record at September 30, 2021. Our book value per Common Share was $16.82 based on 930.5 million shares outstanding at September 30, 2021, compared to $16.53 per Common Share based on 975.8 million shares outstanding at December 31, 2020. At September 30, 2021, our tangible book value per Common Share was $13.80, compared to $13.61 per Common Share at December 31, 2020.

Figure 20 shows activities that caused the change in outstanding Common Shares over the past five quarters.

Figure 20. Changes in Common Shares Outstanding 

	2021			2020
In thousands	Third	Second	First	Fourth	Third
Shares outstanding at beginning of period	960,276	972,587	975,773	976,205	975,947
Open market repurchases, repurchases under an ASR program, and return of shares under employee compensation plans	(29,923)	(13,304)	(9,277)	(1,092)	(1)
Shares issued under employee compensation plans (net of cancellations)	191	993	6,091	660	259
Shares outstanding at end of period	930,544	960,276	972,587	975,773	976,205

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As shown above, Common Shares outstanding decreased by 29.7 million shares during the third quarter of 2021 primarily driven by the execution of an ASR program.

At September 30, 2021, we had 326.2 million treasury shares, compared to 280.9 million treasury shares at December 31, 2020. Going forward we expect to reissue treasury shares as needed in connection with stock-based compensation awards and for other corporate purposes.

Information on repurchases of Common Shares by KeyCorp is included in Part II, Item 2. “Unregistered Sales of Equity Securities and Use of Proceeds” of this report.

Capital adequacy

Capital adequacy is an important indicator of financial stability and performance. All of our capital ratios remained in excess of regulatory requirements at September 30, 2021. Our capital and liquidity levels are intended to position us to weather an adverse operating environment while continuing to serve our clients’ needs, as well as to meet the Regulatory Capital Rules described in Item 1. Business of our 2020 Form 10-K under the heading “Supervision and Regulation.” Our shareholders’ equity to assets ratio was 9.36% at September 30, 2021, compared to 10.56% at December 31, 2020. Our tangible common equity to tangible assets ratio was 6.97% at September 30, 2021, compared to 7.93% at December 31, 2020. See the section entitled “GAAP to Non-GAAP Reconciliations,” which presents the computations of certain financial measures related to “tangible common equity.” The minimum capital and leverage ratios under the Regulatory Capital Rules together with the ratios of KeyCorp at September 30, 2021, are set forth in the “Supervision and regulation — Regulatory capital requirements” section in Item 2 of this report.

Figure 21 represents the details of our regulatory capital positions at September 30, 2021, and December 31, 2020, under the Regulatory Capital Rules. Information regarding the regulatory capital ratios of KeyCorp’s banking subsidiaries is presented annually, with the most recent information included in Note 24 (“Shareholders' Equity”) beginning on page 177 of our 2020 Form 10-K.

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Figure 21. Capital Components and Risk-Weighted Assets 

	Dollars in millions	September 30, 2021			December 31, 2020
COMMON EQUITY TIER 1
Key shareholders’ equity (GAAP)		$	17,510		$	17,981
Less:	Preferred Stock (a)	1,856			1,856
Add:	CECL phase-in (b)	234			375
	Common Equity Tier 1 capital before adjustments and deductions	15,888			16,500
Less:	Goodwill, net of deferred taxes	2,555			2,560
	Intangible assets, net of deferred taxes	141			151
	Deferred tax assets	1			1
	Net unrealized gains (losses) on available-for-sale securities, net of deferred taxes	77			583
	Accumulated gains (losses) on cash flow hedges, net of deferred taxes	169			460
	Amounts in AOCI attributed to pension and postretirement benefit costs, net of deferred taxes	(291)			(306)
	Total Common Equity Tier 1 capital	$	13,236		$	13,051
TIER 1 CAPITAL
Common Equity Tier 1		$	13,236		$	13,051
Additional Tier 1 capital instruments and related surplus		1,856			1,856
Less:	Deductions	—			—
	Total Tier 1 capital	15,092			14,907
TIER 2 CAPITAL
Tier 2 capital instruments and related surplus		1,539			1,657
Allowance for losses on loans and liability for losses on lending-related commitments (c)		958			1,412
Less:	Deductions	—			—
	Total Tier 2 capital	2,497			3,069
	Total risk-based capital	$	17,589		$	17,976
RISK-WEIGHTED ASSETS
Risk-weighted assets on balance sheet		$	103,111		$	103,604
Risk-weighted off-balance sheet exposure		33,991			29,240
Market risk-equivalent assets		1,305			1,354
Gross risk-weighted assets		138,407			134,198
Less:	Excess allowance for loan and lease losses	—			—
	Net risk-weighted assets	$	138,407		$	134,198
AVERAGE QUARTERLY TOTAL ASSETS		$	179,491		$	166,771
CAPITAL RATIOS
Tier 1 risk-based capital		10.90		%	11.11		%
Total risk-based capital		12.71		%	13.40		%
Leverage (d)		8.41		%	8.94		%
Common Equity Tier 1		9.56		%	9.73		%

(a)Net of capital surplus.

(b)Amount reflects our decision to adopt the CECL transitional provision.

(c)The ALLL included in Tier 2 capital is limited by regulation to 1.25% of the institution’s standardized total risk-weighted assets (excluding its standardized market risk-weighted assets). The ALLL includes $29 million and $36 million of allowance classified as “discontinued assets” on the balance sheet at September 30, 2021, and December 31, 2020, respectively.

(d)This ratio is Tier 1 capital divided by average quarterly total assets as defined by the Federal Reserve less: (i) goodwill, (ii) the disallowed intangible and deferred tax assets, and (iii) other deductions from assets for leverage capital purposes.

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Risk Management

Overview

Like all financial services companies, we engage in business activities and assume the related risks. The most significant risks we face are credit, compliance, operational, liquidity, market, reputation, strategic, and model risks. Our risk management activities are focused on ensuring that we properly identify, measure, and manage such risks across the entire enterprise to maintain safety and soundness, and to maximize profitability. There have been no significant changes in our Risk Management practices as described under the heading “Risk Management” beginning on page 72 of our 2020 Form 10-K.

Market risk management

Market risk is the risk that movements in market risk factors, including interest rates, foreign exchange rates, equity prices, commodity prices, credit spreads, and volatilities will reduce Key’s income and the value of its portfolios. These factors influence prospective yields, values, or prices associated with the instrument. We are exposed to market risk both in our trading and nontrading activities, which include asset and liability management activities. Information regarding our fair value policies, procedures, and methodologies is provided in Note 1 (“Summary of Significant Accounting Policies”) under the heading “Fair Value Measurements” on page 112 of our 2020 Form 10-K and Note 5 (“Fair Value Measurements”) in this report.

Trading market risk

Key incurs market risk as a result of trading activities that are used in support of client facilitation and hedging activities, principally within our investment banking and capital markets businesses. Key has exposures to a wide range of risk factors including interest rates, equity prices, foreign exchange rates, credit spreads, and commodity prices, as well as the associated implied volatilities and spreads.  Our primary market risk exposures are a result of trading and hedging activities in the derivative and fixed income markets, including securitization positions exposures. At September 30, 2021, we did not have any re-securitization positions.  We maintain modest trading inventories to facilitate customer flow, make markets in securities, and hedge certain risks including but not limited to credit risk and interest rate risk. The risks associated with these activities are mitigated in accordance with the Market Risk hedging policy.  The majority of our positions are traded in active markets.

Market risk management is an integral part of Key’s risk culture. The Risk Committee of our Board provides oversight of trading market risks. The ERM Committee and the Market Risk Committee regularly review and discuss market risk reports prepared by our MRM that contain our market risk exposures and results of monitoring activities. Market risk policies and procedures have been defined and approved by the Market Risk Committee, a Tier 2 Risk Governance Committee, and take into account our tolerance for risk and consideration for the business environment. For more information regarding monitoring of trading positions and the activities related to the Market Risk Rule compliance, see ”Market Risk Management” beginning on page 73 of our 2020 Form 10-K.

VaR and stressed VaR.  VaR is the estimate of the maximum amount of loss on an instrument or portfolio due to adverse market conditions during a given time interval within a stated confidence level.  Stressed VaR is used to assess extreme conditions on market risk within our trading portfolios. The MRM calculates VaR and stressed VaR on a daily basis, and the results are distributed to appropriate management. VaR and stressed VaR results are also provided to our regulators and utilized in regulatory capital calculations.

We use a historical simulation VaR model to measure the potential adverse effect of changes in interest rates, foreign exchange rates, equity prices, and credit spreads on the fair value of our covered positions and other non-covered positions. We analyze market risk by portfolios and do not separately measure and monitor our portfolios by risk type. Historical scenarios are customized for specific positions, and numerous risk factors are incorporated in the calculation. Additional consideration is given to the risk factors to estimate the exposures that contain optionality features, such as options and cancelable provisions. VaR is calculated using daily observations over a one-year time horizon and approximates a 95% confidence level.  Statistically, this means that we would expect to incur losses greater than VaR, on average, five out of 100 trading days, or three to four times each quarter.  We also calculate VaR and stressed VaR at a 99% confidence level. For more information regarding our VaR model, its governance and assumptions, see ”Market Risk Management” on page 73 of our 2020 Form 10-K.

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Actual losses for the total covered portfolios did not exceed aggregate daily VaR at any day during the quarter ended September 30, 2021. Actual losses for the total covered portfolios did not exceed the aggregate daily VaR at a 99% confidence level during the quarter ended September 30, 2020. The MRM backtests our VaR model on a daily basis to evaluate its predictive power. The test compares VaR model results at the 99% confidence level to daily held profit and loss. Results of backtesting are provided to the Market Risk Committee. Backtesting exceptions occur when trading losses exceed VaR. We do not engage in correlation trading or utilize the internal model approach for measuring default and credit migration risk. Our net VaR approach incorporates diversification, but our VaR calculation does not include the impact of counterparty risk and our own credit spreads on derivatives.

The aggregate VaR at the 99% confidence level with a one day holding period for all covered positions was $1.1 million at September 30, 2021, and $3.1 million at September 30, 2020. Figure 22 summarizes our VaR at the 99% confidence level with a one day holding period for significant portfolios of covered positions for the three months ended September 30, 2021, and September 30, 2020.

Figure 22. VaR for Significant Portfolios of Covered Positions 

	2021								2020
	Three months ended September 30,								Three months ended September 30,
Dollars in millions	High		Low		Mean		September 30,		High		Low		Mean		September 30,
Trading account assets:
Fixed income	$	1.4	$	.6	$	.9	$	1.0	$	3.0	$	1.1	$	2.0	$	2.5
Derivatives:
Interest rate	$	.2	$	.1	$	.1	$	.1	$	.9	$	.3	$	.5	$	.3

Stressed VaR is calculated by running the portfolios through a predetermined stress period which is approved by the Market Risk Committee and is calculated at the 99% confidence level using the same model and assumptions used for general VaR. The aggregate stressed VaR for all covered positions was $6.6 million at September 30, 2021, and $3.1 million at September 30, 2020.The change in stressed VaR is primarily due to a change in the predetermined stress period from the 2008-2009 financial crisis to the COVID-19 period of 2019-2020. Figure 23 summarizes our stressed VaR at the 99% confidence level with a one day holding period for significant portfolios of covered positions for the three months ended September 30, 2021, and September 30, 2020.

Figure 23. Stressed VaR for Significant Portfolios of Covered Positions 

	2021								2020
	Three months ended September 30,								Three months ended September 30,
Dollars in millions	High		Low		Mean		September 30,		High		Low		Mean		September 30,
Trading account assets:
Fixed income	$	6.4	$	1.8	$	4.1	$	5.8	$	3.0	$	.8	$	1.7	$	2.5
Derivatives:
Interest rate	$	.6	$	.3	$	.4	$	.5	$	.7	$	.1	$	.2	$	.4

Internal capital adequacy assessment. Market risk is a component of our internal capital adequacy assessment. Our risk-weighted assets include a market risk-equivalent asset amount, which consists of a VaR component, stressed VaR component, a de minimis exposure amount, and a specific risk add-on including the securitization positions. The aggregate market value of the securitization positions as defined by the Market Risk Rule was $10 million at September 30, 2021, all of which were mortgage-backed security positions. Specific risk is the price risk of individual financial instruments, which is not accounted for by changes in broad market risk factors and is measured through a standardized approach. Market risk weighted assets, including the specific risk calculations, are run quarterly by the MRM in accordance with the Market Risk Rule, and approved by the Chief Market Risk Officer.

Nontrading market risk

Most of our nontrading market risk is derived from interest rate fluctuations and its impacts on our traditional loan and deposit products, as well as investments, hedging relationships, long-term debt, and certain short-term borrowings. Interest rate risk, which is inherent in the banking industry, is measured by the potential for fluctuations in net interest income and the EVE. Such fluctuations may result from changes in interest rates and differences in the repricing and maturity characteristics of interest-earning assets and interest-bearing liabilities. We manage the exposure to changes in net interest income and the EVE in accordance with our risk appetite and in accordance with the Board approved ERM policy.

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Interest rate risk positions are influenced by a number of factors, including the balance sheet positioning that arises out of customer preferences for loan and deposit products, economic conditions, the competitive environment within our markets, changes in market interest rates that affect client activity, and our hedging, investing, funding, and capital positions. The primary components of interest rate risk exposure consist of reprice risk, basis risk, yield curve risk, and option risk.

•“Reprice risk” is the exposure to changes in the level of interest rates and occurs when the volume of interest-bearing liabilities and the volume of interest-earning assets they fund (e.g., deposits used to fund loans) do not mature or reprice at the same time.

•“Basis risk” is the exposure to asymmetrical changes in interest rate indexes and occurs when floating-rate assets and floating-rate liabilities reprice at the same time, but in response to different market factors or indexes.

•“Yield curve risk” is the exposure to nonparallel changes in the slope of the yield curve (where the yield curve depicts the relationship between the yield on a particular type of security and its term to maturity) and occurs when interest-bearing liabilities and the interest-earning assets that they fund do not price or reprice to the same term point on the yield curve.

•“Option risk” is the exposure to a customer or counterparty’s ability to take advantage of the interest rate environment and terminate or reprice one of our assets, liabilities, or off-balance sheet instruments prior to contractual maturity without a penalty. Option risk occurs when exposures to customer and counterparty early withdrawals or prepayments are not mitigated with an offsetting position or appropriate compensation.

The management of nontrading market risk is centralized within Corporate Treasury. The Risk Committee of our Board provides oversight of nontrading market risk. The ERM Committee and the ALCO review reports on the interest rate risk exposures described above. In addition, the ALCO reviews reports on stress tests and sensitivity analyses related to interest rate risk. These committees have various responsibilities related to managing nontrading market risk, including recommending, approving, and monitoring strategies that maintain risk positions within approved tolerance ranges. The A/LM policy provides the framework for the oversight and management of interest rate risk and is administered by the ALCO. The MRM, as the second line of defense, provides additional oversight.

LIBOR Transition

As disclosed in Item 1A. Risk Factors of our 2020 Form 10-K, LIBOR in its current form will generally not be available after 2021 for new contracts and the LIBOR Administrator will cease publishing all U.S. LIBOR tenors entirely after June 30, 2023. For most products, the most likely replacement benchmark is expected to be SOFR, which has been recommended by the ARRC, although uncertainty remains as to whether new benchmarks may evolve and a different credit sensitive benchmark could instead become the market-accepted benchmark. The Federal Reserve and the OCC have encouraged financial institutions not to wait for the end of 2021 to make the transition away from LIBOR. We have established an enterprise wide program to identify and address all LIBOR transition issues. We are collaborating closely with regulators and industry groups on the transition and closely monitoring developments in industry practices related to LIBOR alternatives. The goals of our LIBOR transition program are to:

•Identify and analyze LIBOR-based exposure and develop and execute transition strategies;

•Review and update near-term strategies and actions for our LIBOR-based business currently being written;

•Assess financial impact and risk while planning and executing mitigation actions;

•Understand and strategically address the current market approach to LIBOR and SOFR;

•Determine and execute system and process work to be operationally ready for SOFR or additional credit sensitive benchmarks; and

•Originate new loans using SOFR.

As part of the LIBOR transition program, we completed an initial risk assessment to help us identify the impact and risks associated with various products, systems, processes, and models. This risk assessment has assisted us in making necessary updates to our infrastructure and operational systems and processes to implement a replacement rate, and we are progressing on schedule to be operationally ready for various SOFR-based benchmarks, including but not limited to, Daily Simple SOFR in Arrears, SOFR Compounded in Arrears, SOFR Averages in Advance, and Term SOFR. We have begun to quote alternative indexes other than LIBOR, such as SOFR and Term SOFR, and have begun to originate new loans in those indexes. We have also begun to originate a small number of new loans using credit sensitive rates.

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We have compiled an inventory of existing legal contracts that are impacted by the LIBOR transition. We are assessing the LIBOR fallback language in those contracts and are devising a strategy to address the LIBOR transition for those contracts. We have also focused on refining LIBOR fallback language in new legal contracts including requiring the use of robust fallback language. Our progress is well-paced, especially as many of the legacy contracts will be provided additional time to remediate due to announcements by the ICE Benchmark Administration, the FCA-regulated and authorized administrator of LIBOR, that certain LIBOR tenors may continue until June 2023 for legacy contract purposes. In addition, we are on schedule with our work to address contracts with LIBOR tenors that must transition by the end of 2021. We expect to leverage recommendations made by the ARRC and ISDA that are tailored to our specific client segments.

Net interest income simulation analysis. The primary tool we use to measure our interest rate risk is simulation analysis. For purposes of this analysis, we estimate our net interest income based on the current and projected composition of our on- and off-balance sheet positions, accounting for recent and anticipated trends in customer activity. The analysis also incorporates assumptions for the current and projected interest rate environments and balance sheet growth projections based on a most likely macroeconomic view. The modeling incorporates investment portfolio and swap portfolio balances consistent with management's desired interest rate risk positioning. The simulation model estimates the amount of net interest income at risk by simulating the change in net interest income that would occur if rates were to gradually increase or decrease from current levels over the next 12 months (subject to a floor on market interest rates at zero).

Figure 24 presents the results of the simulation analysis at September 30, 2021, and September 30, 2020. At September 30, 2021, our simulated impact to changes in interest rates was moderate. The exposure to declining rates has increased from September 30, 2020 as a result of higher starting rate levels and a larger balance sheet compared to the September 30, 2020 analysis. Exposure to declining rates remains moderate given the relative low level of actual market rates, and the hedging and investing strategies employed. Tolerance levels for risk management require the development of remediation plans to maintain residual risk within tolerance if simulation modeling demonstrates that a gradual, parallel 200 basis point increase or 200 basis point decrease in interest rates over the next 12 months would adversely affect net interest income over the same period by more than 5.5%. Current modeled exposure is within Board approved tolerances.

Figure 24. Simulated Change in Net Interest Income

	September 30, 2021				September 30, 2020
Basis point change assumption	-200		+200		-200		+200
Assumed floor in market rates (in basis points)	—	%	N/A		—	%	N/A
Tolerance level	-5.50	%	-5.50	%	-5.50	%	-5.50	%
Interest rate risk assessment	-4.06	%	5.50	%	-1.92	%	4.49	%

Simulation analysis produces a sophisticated estimate of interest rate exposure based on assumptions input into the model. We tailor certain assumptions to the specific interest rate environment and yield curve shape being modeled and validate those assumptions on a regular basis. However, actual results may differ from those derived in simulation analysis due to unanticipated changes to the balance sheet composition, customer behavior, product pricing, market interest rates, changes in management’s desired interest rate risk positioning, investment, funding and hedging activities, and repercussions from unanticipated or unknown events.

We also perform regular stress tests and sensitivity analyses on the model inputs that could materially change the resulting risk assessments. Assessments are performed using different shapes of the yield curve, including steepening or flattening of the yield curve, immediate changes in market interest rates, and changes in the relationship of money market interest rates. Assessments are also performed on changes to the following assumptions: loan and deposit balances, the pricing of deposits without contractual maturities, changes in lending spreads, prepayments on loans and securities, investment, funding and hedging activities, and liquidity and capital management strategies.

The results of additional assessments indicate that net interest income could increase or decrease from the base simulation results presented in Figure 24. Net interest income is highly dependent on the timing, magnitude, frequency, and path of interest rate changes and the associated assumptions for deposit repricing relationships, lending spreads, and the balance behavior of transaction accounts. If fixed rate assets increase by $1 billion, or fixed rate liabilities decrease by $1 billion, then the benefit to rising rates would decrease by approximately 25 basis

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points. If the interest-bearing liquid deposit beta assumption increases or decreases by 5% (e.g., 40% to 45%), then the benefit to rising rates would decrease or increase by approximately 130 basis points.

Our current interest rate risk position could fluctuate to higher or lower levels of risk depending on the competitive environment and client behavior that may affect the actual volume, mix, maturity, and repricing characteristics of loan and deposit flows. Corporate Treasury discretionary activities related to funding, investing, and hedging may also change as a result of changes in customer business flows or changes in management’s desired interest rate risk positioning. As changes occur to both the configuration of the balance sheet and the outlook for the economy, management proactively evaluates hedging opportunities that may change our interest rate risk profile.

We also conduct simulations that measure the effect of changes in market interest rates in the second and third years of a three-year horizon. These simulations are conducted in a manner similar to those based on a 12-month horizon. To capture longer-term exposures, we calculate exposures to changes of the EVE as discussed in the following section.

Economic value of equity modeling. EVE complements net interest income simulation analysis as it estimates risk exposure beyond 12-, 24-, and 36-month horizons. EVE modeling measures the extent to which the economic values of assets, liabilities, and off-balance sheet instruments may change in response to fluctuations in interest rates. EVE is calculated by subjecting the balance sheet to an immediate increase or decrease in interest rates, measuring the resulting change in the values of assets, liabilities, and off-balance sheet instruments, and comparing those amounts with the base case of the current interest rate environment. The interest rate shock scenarios are equal to the current Fed Target Rate capped at 200 basis points. In the current low rate environment, the declining shock scenario is reduced with a 100 basis point minimum. This analysis is highly dependent upon assumptions applied to assets and liabilities with non-contractual maturities. Those assumptions are based on historical behaviors, as well as our expectations. We develop remediation plans that would maintain residual risk within tolerance if this analysis indicates that our EVE will decrease by more than 15% in response to an immediate increase or decrease in interest rates. We are operating within these guidelines as of September 30, 2021.

Management of interest rate exposure. We use the results of our various interest rate risk analyses to formulate A/LM strategies to achieve the desired risk profile while managing to our objectives for capital adequacy and liquidity risk exposures. Specifically, we manage interest rate risk positions by purchasing securities, issuing term debt with floating or fixed interest rates, and using derivatives. We predominantly use interest rate swaps and options, which modify the interest rate characteristics of certain assets and liabilities.

Figure 25 shows all swap positions that we hold for A/LM purposes. These positions are used to convert the contractual interest rate index of agreed-upon amounts of assets and liabilities (i.e., notional amounts) to another interest rate index. For example, fixed-rate debt is converted to a floating rate through a “receive fixed/pay variable” interest rate swap. The volume, maturity, and mix of portfolio swaps change frequently as we adjust our broader A/LM objectives and the balance sheet positions to be hedged. For more information about how we use interest rate swaps to manage our risk profile, see Note 7 (“Derivatives and Hedging Activities”).

Figure 25. Portfolio Swaps by Interest Rate Risk Management Strategy 

	September 30, 2021
						Weighted-Average					December 31, 2020
Dollars in millions	Notional Amount		Fair Value			Maturity (Years)	Receive Rate		Pay Rate		Notional Amount		Fair Value
Receive fixed/pay variable — conventional A/LM (a)	$	22,050	$	238		2.6	1.3	%	.1	%	$	21,035	$	632
Receive fixed/pay variable — conventional debt	7,892		204			3.4	1.6		.1		7,787		415
Receive fixed/pay variable — forward A/LM	—		—			—	—		—		—		—
Pay fixed/receive variable — conventional debt	50		(7)			6.8	.1		3.6		50		(11)
Pay fixed/receive variable — forward securities	6,280		168			9.1	.8		1.1		2,080		21
Total portfolio swaps	$	36,272	$	603	(c)	3.9	1.3	%	.3	%	$	30,952	$	1,057	(c)
Floors — conventional A/LM — purchased (b)	—		—			—	—		—		$	5,000	$	17
Floors — conventional A/LM — sold (b)	—		—			—	—		—		—		—
Total floors	—		—			—	—		—		$	5,000	$	17

(a)Portfolio swaps designated as A/LM are used to manage interest rate risk tied to both assets and liabilities.

(b)Conventional A/LM and forward A/LM floors do not have a stated receive rate or pay rate and are given a strike price on the option.

(c)Excludes accrued interest of $98 million and $145 million at September 30, 2021, and December 31, 2020, respectively.

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Liquidity risk management

Liquidity risk, which is inherent in the banking industry, is measured by our ability to accommodate liability maturities and deposit withdrawals, meet contractual obligations, and fund new business opportunities at a reasonable cost, in a timely manner, and without adverse consequences. Liquidity management involves maintaining sufficient and diverse sources of funding to accommodate planned, as well as unanticipated, changes in assets and liabilities under both normal and adverse conditions.

Factors affecting liquidity

Our liquidity could be adversely affected by both direct and indirect events. An example of a direct event would be a downgrade in our public credit ratings by a rating agency. Examples of indirect events (events unrelated to us) that could impair our access to liquidity would be an act of terrorism or war, natural disasters, global pandemics (including COVID-19), political events, or the default or bankruptcy of a major corporation, mutual fund, or hedge fund. Similarly, market speculation, or rumors about us or the banking industry in general, may adversely affect the cost and availability of normal funding sources. See Part I, Item 1A. Risk Factors section “IV. Liquidity Risk” in our 2020 Form 10-K for a discussion of how the COVID-19 global pandemic has impacted our liquidity and may continue to impact it in the future.

Our credit ratings at September 30, 2021, are shown in Figure 26. We believe these credit ratings, under normal conditions in the capital markets, would enable KeyCorp or KeyBank to issue fixed income securities to investors.

Figure 26. Credit Ratings 

September 30, 2021	Short-Term Borrowings	Long-Term Deposits (a)	Senior Long-Term Debt	Subordinated Long-Term Debt	Capital Securities	Preferred Stock
KEYCORP
Standard & Poor’s	A-2	N/A	BBB+	BBB	BB+	BB+
Moody’s	P-2	N/A	Baa1	Baa1	Baa2	Baa3
Fitch Ratings, Inc.	F1	N/A	A-	BBB+	BB+	BB+
DBRS, Inc.	R-1 (low)	N/A	A	A (low)	A (low)	BBB
KEYBANK
Standard & Poor’s	A-2	N/A	A-	BBB+	N/A	N/A
Moody’s	P-2	P-1/A1	A3	Baa1	N/A	N/A
Fitch Ratings, Inc.	F1	F1/A	A-	BBB+	N/A	N/A
DBRS, Inc.	R-1 (middle)	A (high)	A (high)	A	N/A	N/A

(a)P-1 rating assigned by Moody’s is specific to KeyBank’s short-term bank deposit ratings. F1 assigned by Fitch Ratings, Inc. is specific to KeyBank’s short-term deposit ratings.

Sources of liquidity

Our primary sources of funding for KeyBank include customer deposits, wholesale funding, and liquid assets. As of September 30, 2021, our consolidated loan-to-deposit ratio was 66%. In addition, we also have access to various sources of wholesale funding, maintain a portfolio of liquid assets, and have borrowing capacity at the FHLB and Federal Reserve Bank of Cleveland. Our liquid asset portfolio at September 30, 2021, totaled $49.9 billion, consisting of $31.0 billion of unpledged securities, $27.6 million of securities available for secured funding at the FHLB, and $18.9 billion of net balances of federal funds sold and balances in our Federal Reserve account. Additionally, as of September 30, 2021, our unused borrowing capacity secured by loan collateral was $23.1 billion at the Federal Reserve Bank of Cleveland and $11.8 billion at the FHLB. During the third quarter of 2021, our secured term borrowings increased $0.9 million as additional advances were taken. If the cash flows needed to support operating and investing activities are not satisfied by deposit balances, we rely on wholesale funding or on-balance sheet liquid reserves. Conversely, excess cash generated by operating, investing, and deposit-gathering activities may be used to repay outstanding debt or invest in liquid assets.

Liquidity for KeyCorp 

The primary source of liquidity for KeyCorp is from subsidiary dividends, primarily from KeyBank. KeyCorp has sufficient liquidity when it can service its debt; support customary corporate operations and activities (including acquisitions); support occasional guarantees of subsidiaries’ obligations in transactions with third parties at a reasonable cost, in a timely manner, and without adverse consequences; and fund capital distributions in the form of dividends and share buybacks.

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At September 30, 2021, KeyCorp held $2.6 billion in cash, which we projected to be sufficient to meet our projected obligations, including the repayment of our maturing debt obligations for the periods prescribed by our risk tolerance.

Typically, KeyCorp meets its liquidity requirements through regular dividends from KeyBank, supplemented with term debt. During the third quarter of 2021, KeyBank paid $800 million in cash dividends to KeyCorp. As of September 30, 2021, KeyBank had regulatory capacity to pay $1.0 billion in dividends to KeyCorp without prior regulatory approval.

Our liquidity position and recent activity

Over the past quarter, our liquid asset portfolio, which includes overnight and short-term investments, as well as unencumbered, high quality liquid securities held as protection against a range of potential liquidity stress scenarios, has increased as a result of an increase in unpledged securities in the investment portfolio. The liquid asset portfolio continues to exceed the amount that we estimate would be necessary to manage through an adverse liquidity event by providing sufficient time to develop and execute a longer-term solution.

From time to time, KeyCorp or KeyBank may seek to retire, repurchase, or exchange outstanding debt, capital securities, preferred shares, or Common Shares through cash purchase, privately negotiated transactions or other means. Additional information on repurchases of Common Shares by KeyCorp is included in Part II, Item 5. Market for the Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities beginning on page 39 of our 2020 Form 10-K and Part II, Item 2 of this Form 10-Q. Such transactions depend on prevailing market conditions, our liquidity and capital requirements, contractual restrictions, regulatory requirements, and other factors. The amounts involved may be material, individually or collectively.

The Consolidated Statements of Cash Flows summarize our sources and uses of cash by type of activity for the nine-month periods ended September 30, 2021, and September 30, 2020.

For more information regarding liquidity governance structure, factors affecting liquidity, management of liquidity risk at KeyBank and KeyCorp, long-term liquidity strategies, and other liquidity programs, see “Liquidity Risk Management” beginning on page 79 of our 2020 Form 10-K.

Credit risk management

Credit risk is the risk of loss arising from an obligor’s inability or failure to meet contractual payment or performance terms. Like other financial services institutions, we make loans, extend credit, purchase securities, provide financial and payments products, and enter into financial derivative contracts, all of which have related credit risk.

Credit policy, approval, and evaluation

We manage credit risk exposure through a multifaceted program. The Credit Risk Committee approves management credit policies and recommends significant credit policies to the Enterprise Risk Management Committee, the KeyBank Board, and the Risk Committee of the Board for approval. These policies are communicated throughout the organization to foster a consistent approach to granting credit. As a result of the current economic environment, our commercial loan portfolio is going through active portfolio surveillance which is described in more detail in the section entitled “Loans and loans held for sale — Commercial loan portfolio.”

Our credit risk management team and certain individuals within our lines of business, to whom credit risk management has delegated limited credit authority, are responsible for credit approval. Individuals with assigned credit authority are authorized to grant exceptions to credit policies. It is not unusual to make exceptions to established policies when mitigating circumstances dictate, however, a corporate level tolerance has been established to keep exceptions at an acceptable level based upon portfolio and economic considerations.

Our credit risk management team uses risk models to evaluate consumer loans. These models, known as scorecards, forecast the probability of serious delinquency and default for an applicant. The scorecards are embedded in the application processing system, which allows for real-time scoring and automated decisions for many of our products. We periodically validate the loan scoring processes.

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We maintain an active concentration management program to mitigate concentration risk in our credit portfolios. For individual obligors, we employ a sliding scale of exposure, known as hold limits, which is dictated by the type of loan and strength of the borrower.

Allowance for loan and lease losses

We estimate the appropriate level of the ALLL on at least a quarterly basis. The methodology used is described in Note 1 (“Summary of Significant Accounting Policies”) under the heading “Allowance for Loan and Lease Losses” beginning on page 110 of our 2020 Form 10-K. Briefly, the ALLL estimate uses various models and estimation techniques based on our historical loss experience, current borrower characteristics, current conditions, reasonable and supportable forecasts and other relevant factors. As described in Note 1 (“Summary of Significant Accounting Policies”) of our 2020 Form 10-K, on January 1, 2020, we adopted ASC 326, Financial Instruments — Credit Losses, and as such, an expected credit loss methodology, specifically current expected credit losses for the remaining life of our loans and leases, is used to estimate the appropriate level of the ALLL. The ALLL at September 30, 2021, represents our best estimate of the lifetime expected credit losses inherent in the loan portfolio at that date.

As shown in Figure 27, our ALLL from continuing operations decreased by $542 million, or 33.3%, from December 31, 2020. The commercial ALLL decreased by $394 million, or 35.9%, from December 31, 2020, through September 30, 2021, driven by updated economic forecasts that reflect improved economic outlooks, as well as favorable commercial portfolio asset quality migration. Our consumer ALLL decreased by $148 million, or 28.1%, from December 31, 2020, through September 30, 2021, driven by updated economic forecasts that reflect improved economic outlooks.

Figure 27. Allocation of the Allowance for Loan and Lease Losses

	September 30, 2021						December 31, 2020
Dollars in millions	Amount		Percent of Allowance to Total Allowance		Percent of Loan Type to Total Loans		Amount		Percent of Allowance to Total Allowance		Percent of Loan Type to Total Loans
Commercial and industrial	$	462	42.6	%	50.3	%	$	678	41.7	%	52.3	%
Commercial real estate:
Commercial mortgage	184		17.0		13.9		327		20.1		12.5
Construction	27		2.4		2.1		47		2.9		2.0
Total commercial real estate loans	211		19.4		16.0		374		23.0		14.5
Commercial lease financing	32		3.0		4.0		47		2.9		4.3
Total commercial loans	705		65.0		70.3		1,099		67.6		71.1
Real estate — residential mortgage	88		8.1		14.4		102		6.3		9.2
Home equity loans	124		11.5		8.9		171		10.5		9.2
Consumer direct loans	105		9.7		5.4		128		5.3		4.7
Credit cards	59		5.4		1.0		87		7.9		1.0
Consumer indirect loans	3		0.3		—		39		2.4		4.8
Total consumer loans	379		35.0		29.7		527		32.4		28.9
Total ALLL — continuing operations (a)	$	1,084	100.0	%	100.0	%	$	1,626	100.0	%	100.0	%

(a)Excludes allocations of the ALLL related to the discontinued operations of the education lending business in the amount of $29 million at September 30, 2021, and $36 million at December 31, 2020.

Net loan charge-offs 

Figure 28 shows the trend in our net loan charge-offs by loan type, while the composition of loan charge-offs and recoveries by type of loan is presented in Figure 29.

Net loan charge-offs for the three months ended September 30, 2021, decreased $99 million compared to the year-ago quarter and include the impact of the sale of the indirect auto loan portfolio of approximately $22 million. For the remainder of 2021, we expect net loan charge-offs to average loans to be less than 20 basis points.

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Figure 28. Net Loan Charge-offs from Continuing Operations (a) 

	2021									2020
Dollars in millions	Third			Second			First			Fourth			Third
Commercial and industrial	$	7		$	9		$	65		$	104		$	92
Real estate — Commercial mortgage	(1)			(2)			34			1			11
Real estate — Construction	—			—			—			—			—
Commercial lease financing	(5)			—			3			19			10
Total commercial loans	1			7			102			124			113
Real estate — Residential mortgage	(3)			1			(1)			—			(1)
Home equity loans	(1)			3			1			—			1
Consumer direct loans	5			5			6			6			6
Credit cards	5			6			4			5			7
Consumer indirect loans	22			—			2			—			2
Total consumer loans	28			15			12			11			15
Total net loan charge-offs	$	29		$	22		$	114		$	135		$	128
Net loan charge-offs to average loans	.11		%	.09		%	.46		%	.53		%	.49		%
Net loan charge-offs from discontinued operations — education lending business	$	—		1			$	—		1			—

(a)Credit amounts indicate that recoveries exceeded charge-offs.

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Figure 29. Summary of Loan and Lease Loss Experience from Continuing Operations

	Three months ended September 30,						Nine months ended September 30,
Dollars in millions	2021			2020			2021			2020
Average loans outstanding	$	100,138		$	104,919		$	100,562		$	103,018
Allowance for loan and lease losses at the end of the prior period	$	1,220		$	1,708		$	1,626		$	900
Cumulative effect from change in accounting principle (a)	—			—			—			204
Allowance for loan and lease losses at beginning of period	1,220			1,708			1,626			1,104
Loans charged off:
Commercial and industrial	27			101			141			232
Real estate — commercial mortgage	—			13			39			18
Real estate — construction	—			—			—			—
Commercial lease financing	1			10			5			16
Total commercial loans	28			124			185			266
Real estate — residential mortgage	(2)			—			(1)			2
Home equity loans	1			4			7			10
Consumer direct loans	7			8			22			30
Credit cards	6			9			21			32
Consumer indirect loans	26			6			38			22
Total consumer loans	38			27			87			96
Total loans charged off	66			151			272			362
Recoveries:
Commercial and industrial	20			9			60			19
Real estate — commercial mortgage	1			2			8			3
Real estate — construction	—			—			—			—
Commercial lease financing	6			—			7			1
Total commercial loans	27			11			75			23
Real estate — residential mortgage	1			1			2			1
Home equity loans	2			3			4			6
Consumer direct loans	2			2			6			6
Credit cards	1			2			6			6
Consumer indirect loans	4			4			14			12
Total consumer loans	10			12			32			31
Total recoveries	37			23			107			54
Net loan charge-offs	(29)			(128)			(165)			(308)
Provision (credit) for loan and lease losses	(107)			150			(377)			934
Allowance for loan and lease losses at end of period	$	1,084		$	1,730		$	1,084		$	1,730
Liability for credit losses on lending-related commitments at the end of the prior period	$	152		$	198		$	197		$	68
Liability for credit losses on contingent guarantees at the end of the prior period	—			—			—			7
Cumulative effect from change in accounting principle (a), (b)	—			—			—			66
Liability for credit losses on off-balance sheet exposures at beginning of period	152			198			197			141
Provision (credit) for losses on off-balance sheet exposures	—			10			(45)			67
Liability for credit losses on off-balance sheet exposures at end of period (c)	$	152		$	208		$	152		$	208
Total allowance for credit losses at end of period	$	1,236		$	1,938		$	1,236		$	1,938
Net loan charge-offs to average total loans	.11		%	.49		%	.22		%	.40		%
Allowance for loan and lease losses to period-end loans	1.10			1.68			1.10			1.68
Allowance for credit losses to period-end loans	1.25			1.88			1.25			1.88
Allowance for loan and lease losses to nonperforming loans	195.7			207.4			195.7			207.4
Allowance for credit losses to nonperforming loans	223.1			232.4			223.1			232.4
Discontinued operations — education lending business:
Loans charged off	$	1		$	—		$	3		$	4
Recoveries	1			—			2			3
Net loan charge-offs	$	—		—			$	(1)		$	(1)

(a)The cumulative effect from change in accounting principle relates to the January 1, 2020, adoption of ASU 2016-13.

(b)For the nine month period ended September 30, 2020, excludes $4 million related to the provision for other financial assets.

(c)Included in "Accrued expense and other liabilities" on the balance sheet.

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Nonperforming assets

Figure 30 shows the composition of our nonperforming assets. As shown in Figure 30, nonperforming assets at September 30, 2021, decreased $338 million from December 31, 2020. This decrease was primarily driven by the completion of the sale of a large commercial OREO asset at a small gain during the first quarter of 2021 as well as continual declines in our nonperforming loan balance.

Under the CARES Act as well as banking regulator interagency guidance, certain loan modifications to borrowers experiencing financial distress as a result of the economic impacts created by the COVID-19 pandemic may not be reported as past due. Refer to Note 4 (“Asset Quality”) under the heading “Nonperforming and Past Due Loans.”

See Note 1 (“Summary of Significant Accounting Policies”) of our 2020 Form 10-K under the headings “Nonperforming Loans,” “Impaired Loans,” and “Allowance for Loan and Lease Losses” for a summary of our nonaccrual and charge-off policies.

Figure 30. Summary of Nonperforming Assets and Past Due Loans from Continuing Operations 

Dollars in millions	September 30, 2021			June 30, 2021			March 31, 2021			December 31, 2020			September 30, 2020
Commercial and industrial	$	253		$	355		$	387		$	385		$	459
Real estate — commercial mortgage	49			66			66			104			104
Real estate — construction	—			—			—			—			1
Total commercial real estate loans (a)	49			66			66			104			105
Commercial lease financing	5			7			8			8			6
Total commercial loans (b)	307			428			461			497			570
Real estate — residential mortgage	93			99			95			110			96
Home equity loans	146			146			148			154			146
Consumer direct loans	4			4			5			5			3
Credit cards	3			3			3			2			2
Consumer indirect loans	1			14			16			17			17
Total consumer loans	247			266			267			288			264
Total nonperforming loans	554			694			728			785			834
OREO	8			9			12			100			105
Nonperforming loans held for sale	35			32			47			49			61
Other nonperforming assets	2			3			3			3			3
Total nonperforming assets	$	599		$	738		$	790		$	937		$	1,003
Accruing loans past due 90 days or more	$	82		$	74		$	92		$	86		$	73
Accruing loans past due 30 through 89 days	164			190			191			241			336
Restructured loans — accruing and nonaccruing (c)	270			334			376			363			306
Restructured loans included in nonperforming loans (c)	146			177			192			229			168
Nonperforming assets from discontinued operations — education lending business	4			5			5			5			6
Nonperforming loans to period-end portfolio loans	.56		%	.69		%	.72		%	.78		%	.81		%
Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets	.61			.73			.78			.92			.97

(a)See Figure 12 and the accompanying discussion in the “Loans and loans held for sale” section for more information related to our commercial real estate loan portfolio.

(b)See Figure 11 and the accompanying discussion in the “Loans and loans held for sale” section for more information related to our commercial loan portfolio.

(c)Restructured loans (i.e., TDRs) are those for which Key, for reasons related to a borrower’s financial difficulties, grants a concession to the borrower that it would not otherwise consider. These concessions are made to improve the collectability of the loan and generally take the form of a reduction of the interest rate, extension of the maturity date or reduction in the principal balance.

Figure 31 shows the types of activity that caused the change in our nonperforming loan balance during each of the last five quarters.

Figure 31. Summary of Changes in Nonperforming Loans from Continuing Operations

	2021						2020
Dollars in millions	Third		Second		First		Fourth		Third
Balance at beginning of period	$	694	$	728	$	785	$	834	$	760
Loans placed on nonaccrual status	116		186		196		300		387
Charge-offs	(66)		(74)		(135)		(160)		(150)
Loans sold	(17)		(10)		(13)		(9)		(6)
Payments	(136)		(92)		(37)		(83)		(83)
Transfers to OREO	(1)		—		(3)		(3)		—
Loans returned to accrual status	(36)		(44)		(65)		(94)		(74)
Balance at end of period	$	554	$	694	$	728	$	785	$	834

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Operational and compliance risk management

Like all businesses, we are subject to operational risk, which is the risk of loss resulting from human error or malfeasance, inadequate or failed internal processes and systems, and external events. These events include, among other things, threats to our cybersecurity, as we are reliant upon information systems and the internet to conduct our business activities. Operational risk intersects with compliance risk, which is the risk of loss from violations of, or noncompliance with, laws, rules and regulations, prescribed practices, and ethical standards. This includes our compliance with lending programs established by the CARES Act, including the PPP and Main Street Lending Program. Under the Dodd-Frank Act, large financial companies like Key are subject to heightened prudential standards and regulation. This heightened level of regulation has increased our operational risk. While operational and compliance risk are separate risk disciplines in Key’s ERM framework, losses and/or additional regulatory compliance costs are included in operational loss reporting and could take the form of explicit charges, increased operational costs, harm to our reputation, or foregone opportunities.

We seek to mitigate operational risk through identification and measurement of risk, alignment of business strategies with risk appetite and tolerance, and a system of internal controls and reporting. We continuously strive to strengthen our system of internal controls to improve the oversight of our operational risk and to ensure compliance with laws, rules, and regulations. For example, an operational event database tracks the amounts and sources of operational risk and losses. This tracking mechanism helps to identify weaknesses and to highlight the need to take corrective action. We also rely upon software programs designed to assist in assessing operational risk and monitoring our control processes. This technology has enhanced the reporting of the effectiveness of our controls to senior management and the Board.

The Operational Risk Management Program provides the framework for the structure, governance, roles, and responsibilities, as well as the content, to manage operational risk for Key. The Compliance Risk Management Program serves the same function in managing compliance risk for Key. The Operational Risk Committee and the Compliance Risk Committee support the ERM Committee by identifying early warning events and trends, escalating emerging risks, and discussing forward-looking assessments. Both the Operational Risk Committee and the Compliance Risk Committee include attendees from each of the Three Lines of Defense. Primary responsibility for managing and monitoring internal control mechanisms lies with the managers of our various lines of business. The Operational Risk Committee and Compliance Risk Committee are senior management committees that oversee our level of operational and compliance risk and direct and support our operational and compliance infrastructure and related activities. These committees and the Operational Risk Management and Compliance Risk Management functions are an integral part of our ERM Program. Our Risk Review function regularly assesses the overall effectiveness of our Operational Risk Management and Compliance Risk Management Programs and our system of internal controls. Risk Review reports the results of reviews on internal controls and systems to senior

management and the Risk and Audit Committees and independently supports the Risk Committee’s oversight of these controls.

Cybersecurity

We maintain comprehensive Cyber Incident Response Plans, and we devote significant time and resources to maintaining and regularly updating our technology systems and processes to protect the security of our computer systems, software, networks, and other technology assets against attempts to obtain unauthorized access to confidential information, destroy data, disrupt or degrade service, sabotage systems, shut down access to systems for ransom, or cause other damage. As the threat landscape continues to evolve, critical infrastructure, including financial services, remains a top target for cyberattacks. COVID-19 has created a unique situation globally with many more employees and third-party service providers working from home, which inherently introduces additional risk. Cyberattacks may include, but are not limited to, attacks that are intended to disrupt or disable banking services and prevent banking transactions, attempts to breach the security of systems and data, and social engineering attempts aimed at tricking employees and clients into providing sensitive information or executing financial transactions.

Cyberattack risks may also occur with our third-party technology service providers and may result in financial loss or liability that could adversely affect our financial condition or results of operations. Cyberattacks could also interfere with third-party providers’ ability to fulfill their contractual obligations to us. Recent high-profile cyberattacks have targeted retailers, credit bureaus, and other businesses for the purpose of acquiring the confidential information (including personal, financial, and credit card information) of their customers. Recently, there have also been numerous highly publicized cases where hackers requested ransom payments in exchange for not disclosing

48

customer information or to restore company access to locked systems. We may incur expenses related to the investigation of such attacks or related to the protection of our customers from identity theft as a result of such attacks. We may also incur expenses to enhance our systems or processes to protect against cyber or other security incidents. Risks and exposures related to cyberattacks are expected to remain high for the foreseeable future due to the rapidly evolving nature and sophistication of these threats, as well as due to the expanding use of Internet banking, mobile banking, and other technology-based products and services by us and our clients. To date, Key has not experienced material disruption of our operations, or material harm to our customers, as a result of the heightened threat landscape or cyberattacks.

As described in more detail starting on page 72 of our 2020 Form 10-K under the heading “Risk Management — Overview,” the Board serves in an oversight capacity ensuring that Key’s risks are managed in a manner that is effective and balanced and adds value for the shareholders. The Board’s Risk Committee has primary oversight for enterprise-wide risk at KeyCorp, including operational risk (which includes cybersecurity). The Risk Committee reviews and provides oversight of management’s activities related to the enterprise-wide risk management framework, including cyber-related risk. The ERM Committee, chaired by the Chief Executive Officer and comprising other senior level executives, is responsible for managing risk (including cyber-related risk) and ensuring that the corporate risk profile is managed in a manner consistent with our risk appetite. The ERM Committee reports to the Board’s Risk Committee.

GAAP to Non-GAAP Reconciliations

Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied, and are not

audited. Although these non-GAAP financial measures are frequently used by investors to evaluate a company,

they have limitations as analytical tools, and should not be considered in isolation, nor as a substitute for analyses

of results as reported under GAAP.

The tangible common equity ratio and the return on tangible common equity ratio have been a focus for some investors, and management believes that these ratios may assist investors in analyzing Key’s capital position without regard to the effects of intangible assets and preferred stock. Since analysts and banking regulators may assess our capital adequacy using tangible common equity, we believe it is useful to enable investors to assess our capital adequacy on these same bases.

		Three months ended															Nine months ended
Dollars in millions		9/30/2021			6/30/2021			3/31/2021			12/31/2020			9/30/2020			9/30/2021			9/30/2020
Tangible common equity to tangible assets at period-end
Key shareholders’ equity (GAAP)		$	17,510		$	17,941		$	17,634		$	17,981		$	17,722
Less:	Intangible assets (a)	2,814			2,828			2,842			2,848			2,862
	Preferred Stock (b)	1,856			1,856			1,856			1,856			1,856
	Tangible common equity (non-GAAP)	$	12,840		$	13,257		$	12,936		$	13,277		$	13,004
Total assets (GAAP)		$	187,035		$	181,115		$	176,203		$	170,336		$	170,540
Less:	Intangible assets (a)	2,814			2,828			2,842			2,848			2,862
	Tangible assets (non-GAAP)	$	184,221		$	178,287		$	173,361		$	167,488		$	167,678
	Tangible common equity to tangible assets ratio (non-GAAP)	6.97		%	7.44		%	7.46		%	7.93		%	7.76		%
Average tangible common equity
Average Key shareholders’ equity (GAAP)		$	17,899		$	17,859		$	17,769		$	17,905		$	17,730		$	17,843		$	17,545
Less:	Intangible assets (average) (c)	2,823			2,840			2,844			2,855			2,870			2,834			2,886
	Preferred Stock (average)	1,900			1,900			1,900			1,900			1,900			1,900			1,900
	Average tangible common equity (non-GAAP)	$	13,176		$	13,119		$	13,025		$	13,150		$	12,960		$	13,109		$	12,759
Return on average tangible common equity from continuing operations
Net income (loss) from continuing operations attributable to Key common shareholders (GAAP)		$	616		$	698		$	591		$	549		$	397		$	1,905		$	674
Average tangible common equity (non-GAAP)		13,176			13,119			13,025			13,150			12,960			13,109			12,759
Return on average tangible common equity from continuing operations (non-GAAP)		18.55		%	21.34		%	18.25		%	16.61		%	12.19		%	19.43		%	7.06		%
Return on average tangible common equity consolidated
Net income (loss) attributable to Key common shareholders (GAAP)		$	618		$	703		$	595		$	556		$	401		$	1,916		$	681
Average tangible common equity (non-GAAP)		13,176			13,119			13,025			13,150			12,960			13,109			12,759
Return on average tangible common equity consolidated (non-GAAP)		18.61		%	21.49		%	18.37		%	16.82		%	12.31		%	19.54		%	7.13		%

(a)For the three months ended September 30, 2021, June 30, 2021, March 31, 2021, December 31, 2020, and September 30, 2020, intangible assets exclude $3 million, $4 million, $4 million, $4 million, and $5 million, respectively, of period-end purchased credit card receivables.

(b)Net of capital surplus.

(c)For the three months ended September 30, 2021, June 30, 2021, March 31, 2021, December 31, 2020, and September 30, 2020, average intangible assets exclude $3 million, $4 million, $4 million, $5 million, and $5 million, respectively, of average purchased credit card receivables. For the nine months ended September 30, 2021 and September 30, 2020, average intangible assets exclude $4 million and $6 million, respectively, of average purchased credit card receivables.

The cash efficiency ratio is a ratio of two non-GAAP performance measures, adjusted noninterest expense and total taxable-equivalent revenue. Accordingly, there is no directly comparable GAAP performance measure. The cash efficiency ratio excludes the impact of our intangible asset amortization from the calculation. We believe this ratio

49

provides greater consistency and comparability between our results and those of our peer banks. Additionally, this ratio is used by analysts and investors to evaluate how effectively management is controlling noninterest expenses in generating revenue, as they develop earnings forecasts and peer bank analysis.

		Three months ended															Nine months ended
Dollars in millions		9/30/2021			6/30/2021			3/31/2021			12/31/2020			9/30/2020			9/30/2021			9/30/2020
Cash efficiency ratio
Noninterest expense (GAAP)		$	1,112		$	1,076		$	1,071		$	1,128		$	1,037		$	3,259		$	2,981
Less:	Intangible asset amortization	15			14			15			15			15			44			50
Adjusted noninterest expense (non-GAAP)		$	1,097		$	1,062		$	1,056		$	1,113		$	1,022		$	3,215		$	2,931
Net interest income (GAAP)		$	1,016		$	1,017		$	1,005		$	1,035		$	1,000		$	3,038		$	2,999
Plus:	Taxable-equivalent adjustment	9			6			7			8			6			22			21
	Noninterest income (GAAP)	797			750			738			802			681			2,285			1,850
Total taxable-equivalent revenue (non-GAAP)		$	1,822		$	1,773		$	1,750		$	1,845		$	1,687		$	5,345		$	4,870
Cash efficiency ratio (non-GAAP)		60.2		%	59.9		%	60.3		%	60.3		%	60.6		%	60.1		%	60.2		%

Critical Accounting Policies and Estimates

Our business is dynamic and complex. Consequently, we must exercise judgment in choosing and applying accounting policies and methodologies. These choices are critical – not only are they necessary to comply with GAAP, they also reflect our view of the appropriate way to record and report our overall financial performance. All accounting policies are important, and all policies described in Note 1 (“Summary of Significant Accounting Policies”) beginning on page 108 of our 2020 Form 10-K should be reviewed for a greater understanding of how we record and report our financial performance. Note 1 (“Basis of Presentation and Accounting Policies”) of this report should also be reviewed for more information on accounting standards that have been adopted during the period.

In our opinion, some accounting policies are more likely than others to have a critical effect on our financial results and to expose those results to potentially greater volatility. These policies apply to areas of relatively greater business importance or require us to exercise judgment and to make assumptions and estimates that affect amounts reported in the financial statements. Because these assumptions and estimates are based on current circumstances, they may prove to be inaccurate, or we may find it necessary to change them.

We rely heavily on the use of judgment, assumptions, and estimates to make a number of core decisions, including accounting for the ALLL; contingent liabilities, guarantees and income taxes; derivatives and related hedging activities; and assets and liabilities that involve valuation methodologies. In addition, we may employ outside valuation experts to assist us in determining fair values of certain assets and liabilities. A brief discussion of each of these areas appears on pages 91 through 96 of our 2020 Form 10-K. During the first nine months of 2021, we did not significantly alter the manner in which we applied our critical accounting policies or developed related assumptions and estimates.

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Accounting and Reporting Developments

Accounting Guidance Pending Adoption at September 30, 2021

Standard	Required Adoption	Description	Effect on Financial Statements or Other Significant Matters
ASU 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging— Contracts in Entity’s Own Equity (Subtopic 815-40)	January 1, 2022 Early adoption is permitted.	The ASU simplifies the accounting for convertible debt instruments by eliminating the legacy accounting models for convertible instruments with beneficial conversion features or cash conversion features. The guidance also amends the guidance used to determine if a freestanding financial instrument or an embedded feature qualifies for a scope exception from derivative accounting. For freestanding financial instruments and embedded features that have all the characteristics of a derivative instrument and are potentially settled in an entity’s own stock, the guidance simplifies the settlement assessment that entities are required to perform. Also, the Update now requires the use of the if-converted method for all convertible instruments and includes the effect of potential share settlement in diluted EPS if the effect is more dilutive. The new guidance also makes clarifications to the EPS calculation. Further, the ASU expands disclosure requirements. The guidance should be applied on a modified retrospective or retrospective basis.	The adoption of this accounting guidance is not expected to have a material effect on our financial condition or results of operations.
Reference Rate Reform (Topic 848)	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 and will assess the impacts in conjunction with the reference rate transition as it occurs.

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European Sovereign and Nonsovereign Debt Exposures

Our total European sovereign and Nonsovereign debt exposure is presented in Figure 32.

Figure 32. European Sovereign and Nonsovereign Debt Exposures

September 30, 2021	Short- and Long- Term Commercial Total (a)		Foreign Exchange and Derivatives with Collateral (b)		Net Exposure
Dollars in millions
France:
Sovereigns	—		—		—
Nonsovereign financial institutions	—		$	1	$	1
Nonsovereign non-financial institutions	—		—		—
Total	—		1		1
Germany:
Sovereigns	—		—		—
Nonsovereign financial institutions	—		—		—
Nonsovereign non-financial institutions	$	35	—		35
Total	35		—		35
Italy:
Sovereigns	—		—		—
Nonsovereign financial institutions	—		—		—
Nonsovereign non-financial institutions	17		—		17
Total	17		—		17
United Kingdom:
Sovereigns	—		—		—
Nonsovereign financial institutions	—		336		336
Nonsovereign non-financial institutions	—		—		—
Total	—		336		336
Total Europe:
Sovereigns	—		—		—
Nonsovereign financial institutions	—		337		337
Nonsovereign non-financial institutions	52		—		52
Total	$	52	$	337	$	389

(a)Represents our outstanding leases.

(b)Represents contracts to hedge our balance sheet asset and liability needs and to accommodate our clients’ trading and/or hedging needs. Our derivative mark-to-market exposures are calculated and reported on a daily basis. These exposures are largely covered by cash or highly marketable securities collateral with daily collateral calls.

Our credit risk exposure is largely concentrated in developed countries with emerging market exposure essentially limited to commercial facilities; these exposures are actively monitored by management. We do not have at-risk exposures in the rest of the world.

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Item 1. Financial Statements

Consolidated Balance Sheets

Dollars in millions, except per share data	September 30, 2021		December 31, 2020
	(Unaudited)
ASSETS
Cash and due from banks	$	763	$	1,091
Short-term investments	19,608		16,194
Trading account assets	902		735
Securities available for sale	40,594		27,556
Held-to-maturity securities (fair value: $8,664 and $8,023)	8,423		7,595
Other investments	607		621
Loans, net of unearned income of $361 and $449	98,609		101,185
Less: Allowance for loan and lease losses	(1,084)		(1,626)
Net loans	97,525		99,559
Loans held for sale (a)	1,805		1,583
Premises and equipment	678		753
Goodwill	2,673		2,664
Other intangible assets	144		188
Corporate-owned life insurance	4,312		4,286
Accrued income and other assets	8,404		6,812
Discontinued assets	597		699
Total assets	$	187,035	$	170,336
LIABILITIES
Deposits in domestic offices:
NOW and money market deposit accounts	$	87,242	$	80,427
Savings deposits	7,259		5,913
Certificates of deposit ($100,000 or more)	1,890		2,733
Other time deposits	2,315		3,010
Total interest-bearing deposits	98,706		92,083
Noninterest-bearing deposits	53,225		43,199
Total deposits	151,931		135,282
Federal funds purchased and securities sold under repurchase agreements	228		220
Bank notes and other short-term borrowings	767		759
Accrued expense and other liabilities	3,434		2,385
Long-term debt	13,165		13,709
Total liabilities	169,525		152,355
EQUITY
Preferred stock	1,900		1,900
Common Shares, $1 par value; authorized 2,100,000,000 and 2,100,000,000 shares; issued 1,256,702,081 and 1,256,702,081 shares	1,257		1,257
Capital surplus	6,141		6,281
Retained earnings	14,133		12,751
Treasury stock, at cost (326,158,458 and 280,928,782 shares)	(5,876)		(4,946)
Accumulated other comprehensive income (loss)	(45)		738
Total equity	17,510		17,981
Total liabilities and equity	$	187,035	$	170,336

(a)Total loans held for sale include real estate — residential mortgage loans held for sale at fair value of $237 million at September 30, 2021, and $264 million at December 31, 2020.

See Notes to Consolidated Financial Statements (Unaudited).

Consolidated Statements of Income

Dollars in millions, except per share amounts	Three months ended September 30,				Nine months ended September 30,
(Unaudited)	2021		2020		2021		2020
INTEREST INCOME
Loans	$	882	$	927	$	2,659	$	2,933
Loans held for sale	13		18		35		58
Securities available for sale	135		115		398		365
Held-to-maturity securities	43		53		133		171
Trading account assets	4		3		14		16
Short-term investments	9		1		20		14
Other investments	1		2		5		3
Total interest income	1,087		1,119		3,264		3,560
INTEREST EXPENSE
Deposits	15		54		52		319
Federal funds purchased and securities sold under repurchase agreements	—		—		—		6
Bank notes and other short-term borrowings	2		1		6		11
Long-term debt	54		64		168		225
Total interest expense	71		119		226		561
NET INTEREST INCOME	1,016		1,000		3,038		2,999
Provision for credit losses	(107)		160		(422)		1,001
Net interest income after provision for credit losses	1,123		840		3,460		1,998
NONINTEREST INCOME
Trust and investment services income	129		128		395		384
Investment banking and debt placement fees	235		146		614		418
Service charges on deposit accounts	91		77		247		229
Operating lease income and other leasing gains	37		38		111		128
Corporate services income	69		51		188		165
Cards and payments income	111		114		329		271
Corporate-owned life insurance income	33		30		94		101
Consumer mortgage income	33		51		106		133
Commercial mortgage servicing fees	34		18		112		48
Other income (a)	25		28		89		(27)
Total noninterest income	797		681		2,285		1,850
NONINTEREST EXPENSE
Personnel	640		588		1,887		1,675
Net occupancy	74		76		225		223
Computer processing	67		59		211		170
Business services and professional fees	56		49		157		142
Equipment	25		25		75		74
Operating lease expense	30		33		95		103
Marketing	32		22		89		67
Intangible asset amortization	15		15		44		50
Other expense	173		170		476		477
Total noninterest expense	1,112		1,037		3,259		2,981
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	808		484		2,486		867
Income taxes	165		60		501		113
INCOME (LOSS) FROM CONTINUING OPERATIONS	643		424		1,985		754
Income (loss) from discontinued operations	2		4		11		7
NET INCOME (LOSS)	645		428		1,996		761
Less: Net income (loss) attributable to noncontrolling interests	—		—		—		—
NET INCOME (LOSS) ATTRIBUTABLE TO KEY	$	645	$	428	$	1,996	$	761
Income (loss) from continuing operations attributable to Key common shareholders	$	616	$	397	$	1,905	$	674
Net income (loss) attributable to Key common shareholders	618		401		1,916		681
Per Common Share:
Income (loss) from continuing operations attributable to Key common shareholders	$	.65	$	.41	$	1.99	$	.70
Income (loss) from discontinued operations, net of taxes	—		—		.01		.01
Net income (loss) attributable to Key common shareholders (b)	.66		.41		2.00		.70
Per Common Share — assuming dilution:
Income (loss) from continuing operations attributable to Key common shareholders	$	.65	$	.41	$	1.98	$	.69
Income (loss) from discontinued operations, net of taxes	—		—		.01		.01
Net income (loss) attributable to Key common shareholders (b)	.65		.41		1.99		.70
Cash dividends declared per Common Share	$	.185	$	.185	$	.555	$	.555
Weighted-average Common Shares outstanding (000)	942,446		967,804		955,069		967,632
Effect of Common Share options and other stock awards	10,077		6,184		9,712		6,648
Weighted-average Common Shares and potential Common Shares outstanding (000) (c)	952,523		973,988		964,781		974,280

(a)For the three and nine months ended September 30, 2021, net securities gains (losses) totaled less than $1 million. For the three months ended September 30, 2021 and September 30, 2020, we did not have any impairment losses related to securities. For the three months ended September 30, 2020, we had no net securities gains (losses). For the nine months ended September 30, 2020, net securities gains (losses) totaled $4 million.

(b)EPS may not foot due to rounding.

(c)Assumes conversion of Common Share options and other stock awards and/or convertible preferred stock, as applicable.

See Notes to Consolidated Financial Statements (Unaudited).

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Consolidated Statements of Comprehensive Income

Dollars in millions	Three months ended September 30,				Nine months ended September 30,
(Unaudited)	2021		2020		2021		2020
Net income (loss)	$	645	$	428	$	1,996	$	761
Other comprehensive income (loss), net of tax:
Net unrealized gains (losses) on securities available for sale, net of income taxes of $56, $(3), $195, and $163	(174)		(8)		(617)		527
Net unrealized gains (losses) on derivative financial instruments, net of income taxes of $9, $(19), $57, and $93	(29)		(64)		(180)		299
Net pension and postretirement benefit costs, net of income taxes of $(3), $1, $(5), and $5	8		3		14		15
Total other comprehensive income (loss), net of tax	(195)		(69)		(783)		841
Comprehensive income (loss)	450		359		1,213		1,602
Less: Comprehensive income attributable to noncontrolling interests	—		—		—		—
Comprehensive income (loss) attributable to Key	$	450	$	359	$	1,213	$	1,602

See Notes to Consolidated Financial Statements (Unaudited).

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Consolidated Statements of Changes in Equity

	Key Shareholders’ Equity
Dollars in millions, except per share amounts (Unaudited)	Preferred Shares Outstanding (000)	Common Shares Outstanding (000)	Preferred Stock		Common Shares		Capital Surplus		Retained Earnings		Treasury Stock, at Cost		Accumulated Other Comprehensive Income (Loss)		Total Shareholder’s Equity
BALANCE AT DECEMBER 31, 2020	1,396	975,773	$	1,900	$	1,257	$	6,281	$	12,751	$	(4,946)	$	738	$	17,981
Net income (loss)									1,996						1,996
Other comprehensive income (loss)													(783)		(783)
Deferred compensation							5								5
Cash dividends declared
Common Shares ($.555 per share)									(534)						(534)
Series D Preferred Stock ($37.50 per depositary share)									(20)						(20)
Series E Preferred Stock ($1.148439 per depositary share)									(23)						(23)
Series F Preferred Stock ($1.059375 per depositary share)									(18)						(18)
Series G Preferred Stock ($1.054689 per depositary share)									(19)						(19)
Open market Common Share repurchases		(27,346)									(559)				(559)
Employee equity compensation program Common Share repurchases		(1,604)					—				(32)				(32)
Common shares reissued (returned) for stock options and other employee benefit plans		7,274					(28)				129				101
Common share purchases under ASR program		(23,553)					(117)				(468)				(585)
BALANCE AT SEPTEMBER 30, 2021	1,396	930,544	$	1,900	$	1,257	$	6,141	$	14,133	$	(5,876)	$	(45)	$	17,510
BALANCE AT JUNE 30, 2021	1,396	960,276	$	1,900	$	1,257	$	6,232	$	13,689	$	(5,287)	$	150	$	17,941
Net income (loss)									645						645
Other comprehensive income (loss)													(195)		(195)
Deferred compensation							5								5
Cash dividends declared
Common Shares ($.185 per share)									(176)						(176)
Series D Preferred Stock ($12.50 per depositary share)									(6)						(6)
Series E Preferred Stock ($.382813 per depositary share)									(7)						(7)
Series F Preferred Stock ($.353125 per depositary share)									(7)						(7)
Series G Preferred Stock ($.351563 per depositary share)									(5)						(5)
Open market Common Share repurchases		(6,367)									(125)				(125)
Employee equity compensation program Common Share repurchases		(3)					—				—				—
Common shares reissued (returned) for stock options and other employee benefit plans		191					21				4				25
Common share purchases under ASR program		(23,553)					(117)				(468)				(585)
BALANCE AT SEPTEMBER 30, 2021	1,396	930,544	$	1,900	$	1,257	$	6,141	$	14,133	$	(5,876)	$	(45)	$	17,510

See Notes to Consolidated Financial Statements (Unaudited).

	Key Shareholders’ Equity
Dollars in millions, except per share amounts (Unaudited)	Preferred Shares Outstanding (000)	Common Shares Outstanding (000)	Preferred Stock		Common Shares		Capital Surplus		Retained Earnings		Treasury Stock, at Cost		Accumulated Other Comprehensive Income (Loss)		Total Shareholder’s Equity
BALANCE AT DECEMBER 31, 2019	1,396	977,189	$	1,900	$	1,257	$	6,295	$	12,469	$	(4,909)	$	26	$	17,038
Cumulative effect from changes in accounting principle (a)									(230)						(230)
Net income (loss)									761						761
Other comprehensive income (loss)													841		841
Deferred compensation							2								2
Cash dividends declared
Common Shares ($.555 per share)									(542)						(542)
Series D Preferred Stock ($37.50 per depositary share)									(20)						(20)
Series E Preferred Stock ($1.148439 per depositary share)									(23)						(23)
Series F Preferred Stock ($1.059375 per depositary share)									(18)						(18)
Series G Preferred Stock ($1.054689 per depositary share)									(19)						(19)
Open market Common Share repurchases		(6,067)									(117)				(117)
Employee equity compensation program Common Share repurchases		(1,815)					(34)				(36)				(70)
Common shares reissued (returned) for stock options and other employee benefit plans		6,898									122				122
Other									(3)						(3)
BALANCE AT SEPTEMBER 30, 2020	1,396	976,205	$	1,900	$	1,257	$	6,263	$	12,375	$	(4,940)	$	867	$	17,722
BALANCE AT JUNE 30, 2020	1,396	975,947	$	1,900	$	1,257	$	6,240	$	12,154	$	(4,945)	$	936	$	17,542
Net income (loss)									428						428
Other comprehensive income (loss)													(69)		(69)
Deferred compensation							2								2
Cash dividends declared
Common Shares ($.185 per share)									(180)						(180)
Series D Preferred Stock ($12.50 per depositary share)									(7)						(7)
Series E Preferred Stock ($.382813 per depositary share)									(8)						(8)
Series F Preferred Stock ($.353125 per depositary share)									(6)						(6)
Series G Preferred Stock ($.53125 per depositary share)									(6)						(6)
Open market Common Share repurchases		—									—				—
Employee equity compensation program Common Share repurchases		(1)					21				—				21
Common shares reissued (returned) for stock options and other employee benefit plans		259					—				5				5
BALANCE AT SEPTEMBER 30, 2020	1,396	976,205	$	1,900	$	1,257	$	6,263	$	12,375	$	(4,940)	$	867	$	17,722

(a)Includes the impact of implementing ASU 2016-13, Financial Instruments - Credit Losses (ASC 326): Measurement of Credit Losses on Financial Instruments. See Note 1 (“Summary of Significant Accounting Policies) in our 2020 Form 10-K for more information on our adoption of this guidance and the impact to our results of operations.

See Notes to Consolidated Financial Statements (Unaudited).

55

Consolidated Statements of Cash Flows

Dollars in millions	Nine months ended September 30,
(Unaudited)	2021		2020
OPERATING ACTIVITIES
Net income (loss)	$	1,996	$	761
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Provision for credit losses	(422)		1,001
Depreciation and amortization expense, net	80		112
Accretion of acquired loans	19		23
Increase in cash surrender value of corporate-owned life insurance	(82)		(86)
Stock-based compensation expense	78		75
Deferred income taxes (benefit)	126		(217)
Proceeds from sales of loans held for sale	11,282		10,079
Originations of loans held for sale, net of repayments	(10,818)		(10,040)
Net losses (gains) on sales of loans held for sale	(192)		(169)
Net losses (gains) on leased equipment	(9)		(17)
Net securities losses (gains)	—		(4)
Net losses (gains) on sales of fixed assets	13		3
Net decrease (increase) in trading account assets	(167)		307
Net transfers of loans held for sale	26		—
Other operating activities, net	(767)		(1,101)
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES	1,163		727
INVESTING ACTIVITIES
Cash received (used) in acquisitions, net of cash acquired	(9)		—
Net decrease (increase) in short-term investments, excluding acquisitions	(3,414)		(12,876)
Purchases of securities available for sale	(19,726)		(9,582)
Proceeds from sales of securities available for sale	—		583
Proceeds from prepayments and maturities of securities available for sale	5,824		4,642
Proceeds from prepayments and maturities of held-to-maturity securities	2,004		1,702
Purchases of held-to-maturity securities	(3)		(17)
Purchases of other investments	(26)		(110)
Proceeds from sales of other investments	36		79
Proceeds from prepayments and maturities of other investments	8		13
Net decrease (increase) in loans, excluding acquisitions, sales and transfers	(545)		(9,118)
Proceeds from sales of portfolio loans	(243)		140
Proceeds from corporate-owned life insurance	56		46
Purchases of premises, equipment, and software	(31)		(45)
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES	(16,069)		(24,543)
FINANCING ACTIVITIES
Net increase (decrease) in deposits, excluding acquisitions	16,649		24,876
Net increase (decrease) in short-term borrowings	16		(61)
Net proceeds from issuance of long-term debt	1,203		2,502
Payments on long-term debt	(1,521)		(2,509)
Open market common share repurchases	(559)		(117)
Employee equity compensation program Common Share repurchases	(32)		(36)
Common share purchases under ASR program	(585)		—
Net proceeds from reissuance of Common Shares	21		7
Cash dividends paid	(614)		(622)
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES	14,578		24,040
NET INCREASE (DECREASE) IN CASH AND DUE FROM BANKS	(328)		224
CASH AND DUE FROM BANKS AT BEGINNING OF PERIOD	1,091		732
CASH AND DUE FROM BANKS AT END OF PERIOD	$	763	$	956
Additional disclosures relative to cash flows:
Interest paid	$	254	$	601
Income taxes paid (refunded)	212		175
Noncash items:
Reduction of secured borrowing and related collateral	$	7	$	5
Loans transferred to portfolio from held for sale	86		32
Loans transferred to held for sale from portfolio	3,403		292
Loans transferred to OREO	3		94
CMBS risk retentions	—		41
ABS risk retentions	13		22
Securities received as consideration	2,825		—

See Notes to Consolidated Financial Statements (Unaudited).

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Notes to Consolidated Financial Statements (Unaudited)

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 2020 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.

Goodwill and Other Intangible Assets

Effective January 1, 2021, Key changed its approach for allocating equity to its reporting units. The carrying amounts of Key’s reporting units now represent the combination of regulatory and economic equity for goodwill impairment testing and management reporting purposes. The fair values of each reporting unit are estimated using a combination of market and income approaches. For more information, refer to Note 10 (“Goodwill”).

57

Accounting Guidance Adopted in 2021

Standard	Required Adoption	Description	Effect on Financial Statements or Other Significant Matters
ASU 2019-12, Simplifying the Accounting for Income Taxes	January 1, 2021	This ASU simplifies the accounting for income taxes by removing certain exceptions to the existing guidance, such as exceptions related to the incremental approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period when a year-to-date loss exceeds the anticipated loss, and the recognition of deferred tax liabilities when a foreign subsidiary becomes an equity method investment and when a foreign equity method investment becomes a subsidiary. Along with general improvements, it adds simplifications related to franchise taxes, the tax basis of goodwill, and the method for recognizing an enacted change in tax laws. The guidance also specifies that an entity is not required to allocate the consolidated amount of certain tax expense to a legal entity not subject to tax in its own separate financial statements. The guidance should be applied on either a retrospective, modified retrospective, or prospective basis depending on the amendment.	The adoption of this accounting guidance did not have a material effect on our financial condition or results of operations.
ASU 2020-01, Clarifying the Interactions between Topic 321,Investments —Equity Securities; Topic 323, Investments— Equity Method and Joint Ventures; and Topic 815, Derivatives and Hedging	January 1, 2021	This guidance clarifies that when applying the measurement alternative in Topic 321, companies should consider certain observable transactions that require the application or discontinuance of the equity method under Topic 323. It also clarifies that companies should not consider whether the underlying securities in certain forward contracts and purchased options would be accounted for under the equity method or fair value option when determining the method of accounting for those contracts. This guidance should be applied on prospective basis.	The adoption of this accounting guidance did not have a material effect on our financial condition or results of operations.
ASU 2020-08, Codification Improvements to Subtopic 310-20, Receivables—Nonrefundable Fees and Other Costs	January 1, 2021	This ASU clarifies that at each reporting period an entity should reevaluate whether a callable debt security is within the scope of ASC 310, which says that to the extent the amortized cost basis of an individual callable debt security exceeds the amount repayable by the issuer at the earliest call date, the premium shall be amortized to the earliest call date, unless prepayment guidance is applied. This guidance should be applied on a prospective basis.	The adoption of this accounting guidance did not have a material effect on our financial condition or results of operations.
ASU 2021-01, Reference Rate Reform (Topic 848)	January 1, 2021	The ASU clarifies that certain optional expedients and exceptions related to contracts modified as a result of reference rate reform and hedge accounting apply to derivatives affected by the discounting transition, such as those that use an interest rate for margining, discounting, or contract price alignment. The guidance may be applied on a full retrospective basis as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020. Alternatively, it may be applied on a prospective basis to new modifications from any date within an interim period that includes or is subsequent to the date of the issuance of a final Update, until the financial statements are available to be issued.	Key adopted this guidance on January 1, 2021, on a prospective basis and will assess the impact in conjunction with the reference rate transition.

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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 September 30,				Nine months ended September 30,
Dollars in millions, except per share amounts	2021		2020		2021		2020
EARNINGS
Income (loss) from continuing operations	$	643	$	424	$	1,985	$	754
Less: Net income (loss) attributable to noncontrolling interests	—		—		—		—
Income (loss) from continuing operations attributable to Key	643		424		1,985		754
Less: Dividends on Preferred Stock	27		27		80		80
Income (loss) from continuing operations attributable to Key common shareholders	616		397		1,905		674
Income (loss) from discontinued operations, net of taxes	2		4		11		7
Net income (loss) attributable to Key common shareholders	$	618	$	401	$	1,916	$	681
WEIGHTED-AVERAGE COMMON SHARES
Weighted-average Common Shares outstanding (000)	942,446		967,804		955,069		967,632
Effect of Common Share options and other stock awards	10,077		6,184		9,712		6,648
Weighted-average Common Shares and potential Common Shares outstanding (000) (a)	952,523		973,988		964,781		974,280
EARNINGS PER COMMON SHARE
Income (loss) from continuing operations attributable to Key common shareholders	$	.65	$	.41	$	1.99	$	.70
Income (loss) from discontinued operations, net of taxes	—		—		.01		.01
Net income (loss) attributable to Key common shareholders (b)	.66		.41		2.00		.70
Income (loss) from continuing operations attributable to Key common shareholders — assuming dilution	$	.65	$	.41	$	1.98	$	.69
Income (loss) from discontinued operations, net of taxes — assuming dilution	—		—		.01		.01
Net income (loss) attributable to Key common shareholders — assuming dilution (b)	.65		.41		1.99		.70

(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.

3. Loan Portfolio

Loan Portfolio by Portfolio Segment and Financing Receivable (a)

Dollars in millions	September 30, 2021		December 31, 2020
Commercial and industrial (b)	$	49,553	$	52,907
Commercial real estate:
Commercial mortgage	13,674		12,687
Construction	2,120		1,987
Total commercial real estate loans	15,794		14,674
Commercial lease financing (c)	3,982		4,399
Total commercial loans	69,329		71,980
Residential — prime loans:
Real estate — residential mortgage	14,204		9,298
Home equity loans	8,747		9,360
Total residential — prime loans	22,951		18,658
Consumer direct loans	5,324		4,714
Credit cards	928		989
Consumer indirect loans	77		4,844
Total consumer loans	29,280		29,205
Total loans (d)	$	98,609	$	101,185

(a)Accrued interest of $211 million and $241 million at September 30, 2021, and December 31, 2020, 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 $139 million and $127 million of commercial credit card balances at September 30, 2021, and December 31, 2020, respectively.

(c)Commercial lease financing includes receivables held as collateral for a secured borrowing of $16 million and $23 million at September 30, 2021, and December 31, 2020, 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 171 of our 2020 Form 10-K.

(d)Total loans exclude loans of $602 million at September 30, 2021, and $710 million at December 31, 2020, related to the discontinued operations of the education lending business.

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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 110 of our 2020 Form 10-K.

The ALLL at September 30, 2021, 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 September 30, 2021:

Dollars in millions	June 30, 2021		Provision		Charge-offs		Recoveries		September 30, 2021
Commercial and Industrial	$	499	$	(30)	$	(27)	$	20	$	462
Commercial real estate:
Real estate — commercial mortgage	227		(44)		—		1		184
Real estate — construction	35		(8)		—		—		27
Total commercial real estate loans	262		(52)		—		1		211
Commercial lease financing	34		(7)		(1)		6		32
Total commercial loans	795		(89)		(28)		27		705
Real estate — residential mortgage	86		(1)		2		1		88
Home equity loans	136		(13)		(1)		2		124
Consumer direct loans	115		(5)		(7)		2		105
Credit cards	68		(4)		(6)		1		59
Consumer indirect loans	20		5		(26)		4		3
Total consumer loans	425		(18)		(38)		10		379
Total ALLL — continuing operations	1,220		(107)		(66)		37		1,084
Discontinued operations	30		(1)		(1)		1		29
Total ALLL — including discontinued operations	$	1,250	$	(108)	$	(67)	$	38	$	1,113

Three months ended September 30, 2020:

Dollars in millions	June 30, 2020		Provision			Charge-offs		Recoveries		September 30, 2020
Commercial and Industrial	$	725	$	177		$	(101)	$	9	$	810
Commercial real estate:
Real estate — commercial mortgage	292		(2)			(13)		2		279
Real estate — construction	41		(7)			—		—		34
Total commercial real estate loans	333		(9)			(13)		2		313
Commercial lease financing	55		13			(10)		—		58
Total commercial loans	1,113		181			(124)		11		1,181
Real estate — residential mortgage	101		2			—		1		104
Home equity loans	197		(13)			(4)		3		183
Consumer direct loans	130		1			(8)		2		125
Credit cards	107		(5)			(9)		2		95
Consumer indirect loans	60		(16)			(6)		4		42
Total consumer loans	595		(31)			(27)		12		549
Total ALLL — continuing operations	1,708		150		(a)	(151)		23		1,730
Discontinued operations	43		(1)			—		—		42
Total ALLL — including discontinued operations	$	1,751	$	149		$	(151)	$	23	$	1,772

(a)Excludes a provision for losses on lending-related commitments of $10 million.

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Nine months ended September 30, 2021

Dollars in millions	December 31, 2020		Provision			Charge-offs		Recoveries		September 30, 2021
Commercial and Industrial	$	678	$	(135)		$	(141)	$	60	$	462
Commercial real estate:
Real estate — commercial mortgage	327		(112)			(39)		8		184
Real estate — construction	47		(20)			—		—		27
Total commercial real estate loans	374		(132)			—		—		211
Commercial lease financing	47		(17)			(5)		7		32
Total commercial loans	1,099		(284)			(185)		75		705
Real estate — residential mortgage	102		(17)			1		2		88
Home equity loans	171		(44)			(7)		4		124
Consumer direct loans	128		(7)			(22)		6		105
Credit cards	87		(13)			(21)		6		59
Consumer indirect loans	39		(12)			(38)		14		3
Total consumer loans	527		(93)			(87)		32		379
Total ALLL — continuing operations	1,626		(377)		(a)	(272)		107		1,084
Discontinued operations	36		(6)			(3)		2		29
Total ALLL — including discontinued operations	$	1,662	$	(383)		$	(275)	$	109	$	1,113

(a)Excludes a credit for losses on lending-related commitments of $45 million

Nine months ended September 30, 2020

Dollars in millions	December 31, 2019		Impact of ASC 326 Adoption		January 1, 2020		Provision			Charge-offs		Recoveries		September 30, 2020
Commercial and Industrial	$	551	$	(141)	$	410	$	613		$	(232)	$	19	$	810
Commercial real estate:
Real estate — commercial mortgage	143		16		159		135			(18)		3		279
Real estate — construction	22		(7)		15		19			—		—		34
Total commercial real estate loans	165		9		174		154			(18)		3		313
Commercial lease financing	35		8		43		30			(16)		1		58
Total commercial loans	751		(124)		627		797			(266)		23		1,181
Real estate — residential mortgage	7		77		84		21			(2)		1		104
Home equity loans	31		147		178		9			(10)		6		183
Consumer direct loans	34		63		97		52			(30)		6		125
Credit cards	47		35		82		39			(32)		6		95
Consumer indirect loans	30		6		36		16			(22)		12		42
Total consumer loans	149		328		477		137			(96)		31		549
Total ALLL — continuing operations	900		204		1,104		934		(a)	(362)		54		1,730
Discontinued operations	10		31		41		2			(4)		3		42
Total ALLL — including discontinued operations	$	910	$	235	$	1,145	$	936		$	(366)	$	57	$	1,772

(a)Excludes a provision for losses on lending-related commitments of $67 million.

As described in Note 1 ("Summary of Significant Accounting Policies"), under the heading “Allowance for Loan and Lease Losses” beginning on page 110 of our 2020 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.

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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, 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 September 30, 2021, the economic outlook continues to be strong, but the emergence of the Delta variant of the COVID-19 virus negatively impacted supply chains and consumer confidence. We utilized the Moody’s August 2021 Consensus forecast as our baseline forecast to estimate our expected credit losses as of September 30, 2021. 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 increase at an 8.2% annualized rate in the third quarter of 2021 and at an annual rate of approximately 6% and 5% for 2021 and 2022, respectively. The national unemployment rate forecast is 5.3% in the third quarter of 2021, and is expected to decline to 4.7% by the fourth quarter of 2021 and 4.0% by the fourth quarter of 2022.

To the extent we identified credit risk considerations that were not captured by the third-party economic forecast, we addressed the risk through management’s qualitative adjustments to the ALLL.

As a result of the unprecedented economic uncertainty caused by the COVID-19 pandemic, our future loss estimates may vary considerably from our September 30, 2021 assumptions.

Commercial Loan Portfolio

The ALLL from continuing operations for the commercial segment decreased by $90 million, or 11.3%, from June 30, 2021. The overall decrease in the allowance is driven by improvements in economic forecasts and asset quality, partially offset by loan growth.

The changes to the economic forecast primarily reflect improvements in economic drivers used in our models. The favorable unemployment and GDP outlook contributes to the overall commercial segment reserve decrease. Expected improvements in real estate price indices lead to a reduction in reserve for our commercial real estate book. Positive risk rating migrations are driving a modest decrease in ALLL levels for the commercial and industrial portfolio. The ALLL results also reflect incremental credit risk considerations as a result of the future economic uncertainties which are addressed through qualitative adjustments.

As of September 30, 2021, we concluded that no ALLL is necessary for $3.1 billion in outstanding PPP loans as they are 100% guaranteed by the SBA.

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Consumer Loan Portfolio

The ALLL from continuing operations for the consumer segment decreased by $46 million, or 10.8%, from June 30, 2021. The overall decrease in the allowance is driven by updated economic forecasts that capture an improving outlook for several drivers and strong portfolio performance, partially offset by growth in consumer real estate.

The most meaningful changes to the economic forecast contributing to the reduction in reserves include improvement in the unemployment rate outlook, which impacts all consumer portfolios. In addition, the housing market and home price index outlook continue to display strength, which impacts the residential mortgage and home equity segments. As it relates to the decline in the ALLL due to portfolio factors, shifts are largely driven by attrition activity, targeted portfolio growth and overall strong credit drivers. The ALLL results also reflect incremental credit risk considerations as a result of the economic uncertainty and related borrower assistance programs, which are addressed through qualitative adjustments.

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.

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Commercial Credit Exposure

Credit Risk Profile by Creditworthiness Category and Vintage (a)

As of September 30, 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	$	9,315	$	5,420	$	4,491	$	3,186	$	2,016	$	3,884	$	18,950	$	102	$	47,364
Criticized (Accruing)	40		115		193		192		236		208		925		27		1,936
Criticized (Nonaccruing)	—		9		18		41		6		16		160		3		253
Total commercial and industrial	9,355		5,544		4,702		3,419		2,258		4,108		20,035		132		49,553
Real estate — commercial mortgage
Risk Rating:
Pass	3,219		1,357		2,589		1,338		687		3,073		690		64		13,017
Criticized (Accruing)	15		20		87		85		123		228		48		2		608
Criticized (Nonaccruing)	—		1		1		5		1		37		4		—		49
Total real estate — commercial mortgage	3,234		1,378		2,677		1,428		811		3,338		742		66		13,674
Real estate — construction
Risk Rating:
Pass	318		619		610		292		104		49		29		6		2,027
Criticized (Accruing)	—		4		13		52		22		1		1		—		93
Criticized (Nonaccruing)	—		—		—		—		—		—		—		—		—
Total real estate — construction	318		623		623		344		126		50		30		6		2,120
Commercial lease financing
Risk Rating:
Pass	655		815		744		348		347		997		—		—		3,906
Criticized (Accruing)	—		4		35		14		13		5		—		—		71
Criticized (Nonaccruing)	—		—		1		1		1		2		—		—		5
Total commercial lease financing	655		819		780		363		361		1,004				—		3,982
Total commercial loans	$	13,562	$	8,364	$	8,782	$	5,554	$	3,556	$	8,500	$	20,807	$	204	$	69,329

As of December 31, 2020	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	2020		2019		2018		2017		2016		Prior						Total
Commercial and Industrial
Risk Rating:
Pass	$	13,100	$	5,487	$	4,040	$	2,617	$	1,967	$	2,709	$	19,832	$	118	$	49,870
Criticized (Accruing)	66		198		174		236		150		279		1,527		22		2,652
Criticized (Nonaccruing)	8		27		71		28		17		7		226		1		385
Total commercial and industrial	13,174		5,712		4,285		2,881		2,134		2,995		21,585		141		52,907
Real estate — commercial mortgage
Risk Rating:
Pass	1,591		2,937		1,737		867		765		3,027		885		43		11,852
Criticized (Accruing)	12		142		81		145		72		255		22		2		731
Criticized (Nonaccruing)	—		1		4		4		2		88		5		—		104
Total real estate — commercial mortgage	1,603		3,080		1,822		1,016		839		3,370		912		45		12,687
Real estate — construction
Risk Rating:
Pass	367		764		510		188		27		22		31		5		1,914
Criticized (Accruing)	—		14		38		18		—		2		1		—		73
Criticized (Nonaccruing)	—		—		—		—		—		—		—		—		—
Total real estate — construction	367		778		548		206		27		24		32		5		1,987
Commercial lease financing
Risk Rating:
Pass	1,076		1,050		534		504		228		901		—		—		4,293
Criticized (Accruing)	10		35		15		26		7		4		—		—		97
Criticized (Nonaccruing)	—		2		2		2		2		1		—		—		9
Total commercial lease financing	1,086		1,087		551		532		237		906		—		—		4,399
Total commercial loans	$	16,230	$	10,657	$	7,206	$	4,635	$	3,237	$	7,295	$	22,529	$	191	$	71,980

(a)Accrued interest of $117 million and $140 million as of September 30, 2021 and December 31, 2020, respectively, presented in Other Assets on the Consolidated Balance Sheets, was excluded from the amortized cost basis disclosed in these tables.

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Consumer Credit Exposure

Credit Risk Profile by FICO Score and Vintage (a)

As of September 30, 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	$	6,071	$	3,150	$	933	$	104	$	141	$	1,218	—		—		$	11,617
660 to 749	1,300		407		186		47		31		323		—		—		2,294
Less than 660	23		12		19		16		10		151		—		—		231
No Score	19		1		1		2		4		34		1		—		62
Total real estate — residential mortgage	7,413		3,570		1,139		169		186		1,726		1		—		14,204
Home equity loans
FICO Score:
750 and above	919		885		285		113		139		739		$	2,333	$	462	5,875
660 to 749	345		295		130		49		47		222		1,037		158		2,283
Less than 660	20		26		20		14		15		99		336		48		578
No Score	—		2		—		1		—		2		5		1		11
Total home equity loans	1,284		1,208		435		177		201		1,062		3,711		669		8,747
Consumer direct loans
FICO Score:
750 and above	1,287		1,271		594		76		20		137		109		—		3,494
660 to 749	413		350		200		51		13		48		217		—		1,292
Less than 660	19		22		29		12		3		14		61		—		160
No Score	47		45		32		16		9		21		208		—		378
Total consumer direct loans	1,766		1,688		855		155		45		220		595		—		5,324
Credit cards
FICO Score:
750 and above	—		—		—		—		—		—		472		—		472
660 to 749	—		—		—		—		—		—		375		—		375
Less than 660	—		—		—		—		—		—		72		—		72
No Score	—		—		—		—		—		—		9		—		9
Total credit cards	—		—		—		—		—		—		928		—		928
Consumer indirect loans
FICO Score:
750 and above	4		—		—		—		—		36		—		—		40
660 to 749	—		—		—		—		—		26		—		—		26
Less than 660	—		—		—		—		—		11		—		—		11
No Score	—		—		—		—		—		—		—		—		—
Total consumer indirect loans	4		—		—		—		—		73		—		—		77
Total consumer loans	$	10,467	$	6,466	$	2,429	$	501	$	432	$	3,081	$	5,235	$	669	$	29,280

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As of December 31, 2020	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	2020		2019		2018		2017		2016		Prior						Total
Real estate — residential mortgage
FICO Score:
750 and above	$	3,595	$	1,620	$	194	$	254	$	537	$	1,211	—		—		$	7,411
660 to 749	710		284		76		48		100		332		—		—		1,550
Less than 660	16		28		21		10		26		170		—		—		271
No Score	1		2		2		7		2		52		—		—		66
Total real estate — residential mortgage	4,322		1,934		293		319		665		1,765		—		—		9,298
Home equity loans
FICO Score:
750 and above	1,043		404		168		202		190		839		$	2,689	$	590	6,125
660 to 749	385		198		82		77		69		253		1,237		206		2,507
Less than 660	27		30		18		20		20		113		426		61		715
No Score	2		2		1		—		—		2		5		1		13
Total home equity loans	1,457		634		269		299		279		1,207		4,357		858		9,360
Consumer direct loans
FICO Score:
750 and above	1,840		883		115		32		16		57		119		—		3,062
660 to 749	479		268		80		22		14		33		254		1		1,151
Less than 660	23		37		21		8		5		10		81		—		185
No Score	65		35		21		21		10		11		153		—		316
Total consumer direct loans	2,407		1,223		237		83		45		111		607		1		4,714
Credit cards
FICO Score:
750 and above	—		—		—		—		—		—		488		—		488
660 to 749	—		—		—		—		—		—		407		—		407
Less than 660	—		—		—		—		—		—		93		—		93
No Score	—		—		—		—		—		—		1		—		1
Total credit cards	—		—		—		—		—		—		989		—		989
Consumer indirect loans
FICO Score:
750 and above	1,092		924		369		188		69		66		—		—		2,708
660 to 749	653		558		232		97		36		47		—		—		1,623
Less than 660	143		163		99		54		25		28		—		—		512
No Score	1		—		—		—		—		—		—		—		1
Total consumer indirect loans	1,889		1,645		700		339		130		141		—		—		4,844
Total consumer loans	$	10,075	$	5,436	$	1,499	$	1,040	$	1,119	$	3,224	$	5,953	$	859	$	29,205

(a)Accrued interest of $95 million and $101 million as of September 30, 2021 and December 31, 2020, 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 2020 Form 10-K.

Under the CARES Act as well as banking regulator interagency guidance, certain loan modifications to borrowers experiencing financial distress as a result of the economic impacts created by the COVID-19 pandemic may not be required to be reported as past due. For COVID-19 related loan modifications which occurred from March 1, 2020, through September 30, 2021, and met the loan modification criteria under either the CARES Act or the criteria specified by the regulatory agencies, we have elected to re-age to current status all commercial loans and consumer loans that are not secured by real-estate and freeze the delinquency status of consumer real estate secured loans as of the modification or forbearance grant date. At September 30, 2021, the portfolio loans and leases in active deferral or forebearance as part of our COVID-19 hardship relief programs totaled $174 million, of which $124 million of loan modifications and forbearances made under the criteria of either the CARES Act, banking regulator interagency guidance, or short-term forbearance policies were not reported as nonperforming.

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The following aging analysis of past due and current loans as of September 30, 2021, and December 31, 2020, provides further information regarding Key’s credit exposure.

Aging Analysis of Loan Portfolio(a)

September 30, 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	$	49,161	$	56	$	33	$	50	$	253	$	392	$	49,553
Commercial real estate:
Commercial mortgage	13,606		12		2		5		49		68		13,674
Construction	2,118		1		—		1		—		2		2,120
Total commercial real estate loans	15,724		13		2		6		49		70		15,794
Commercial lease financing	3,973		2		1		1		5		9		3,982
Total commercial loans	$	68,858	$	71	$	36	$	57	$	307	$	471	$	69,329
Real estate — residential mortgage	$	14,096	$	6	$	3	$	6	$	93	$	108	$	14,204
Home equity loans	8,559		22		10		10		146		188		8,747
Consumer direct loans	5,307		6		3		4		4		17		5,324
Credit cards	914		3		3		5		3		14		928
Consumer indirect loans	75		1		—		—		1		2		77
Total consumer loans	$	28,951	$	38	$	19	$	25	$	247	$	329	$	29,280
Total loans	$	97,809	$	109	$	55	$	82	$	554	$	800	$	98,609

(a)Amounts in table represent amortized cost and exclude loans held for sale.

(b)Accrued interest of $211 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.

December 31, 2020	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	$	52,396	$	36	$	50	$	40	$	385	$	511	$	52,907
Commercial real estate:
Commercial mortgage	12,548		9		5		21		104		139		12,687
Construction	1,986		—		—		1		—		1		1,987
Total commercial real estate loans	14,534		9		5		22		104		140		14,674
Commercial lease financing	4,369		21		1		—		8		30		4,399
Total commercial loans	$	71,299	$	66	$	56	$	62	$	497	$	681	$	71,980
Real estate — residential mortgage	$	9,173	$	11	$	3	$	1	$	110	$	125	$	9,298
Home equity loans	9,143		34		20		9		154		217		9,360
Consumer direct loans	4,694		7		4		4		5		20		4,714
Credit cards	972		5		3		7		2		17		989
Consumer indirect loans	4,792		25		7		3		17		52		4,844
Total consumer loans	$	28,774	$	82	$	37	$	24	$	288	$	431	$	29,205
Total loans	$	100,073	$	148	$	93	$	86	$	785	$	1,112	$	101,185

(a)Amounts in table represent amortized cost and exclude loans held for sale.

(b)Accrued interest of $241 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 September 30, 2021, the approximate carrying amount of our commercial nonperforming loans outstanding represented 62% of their original contractual amount owed, total nonperforming loans outstanding represented 72% of their original contractual amount owed, and nonperforming assets in total were carried at 77% of their original contractual amount owed.

Nonperforming loans reduced expected interest income by $6 million and $20 million for the three and nine months ended September 30, 2021,respectively, and $7 million and $20 million for the three and nine months ended September 30, 2020, respectively.

The amortized cost basis of nonperforming loans on nonaccrual status for which there is no related allowance for credit losses was $492 million at September 30, 2021.

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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 commercial machinery, commercial properties, and commercial real estate construction projects. 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 September 30, 2021.

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. Under the CARES Act as well as banking regulator interagency guidance, certain loan modifications to borrowers experiencing financial distress as a result of the economic impacts created by the COVID-19 pandemic may not be required to be treated as TDRs under U.S. GAAP.  As of September 30, 2021, the outstanding balance of loans that underwent COVID-19 related loan modifications for which we elected to suspend TDR accounting as such loan modifications met the criteria under either the CARES Act or banking regulator interagency guidance totaled $124 million. 

Commitments outstanding to lend additional funds to borrowers whose loan terms have been modified in TDRs were $21 million and $1 million at September 30, 2021, and December 31, 2020, 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 September 30, 2021, and December 31, 2020, the recorded investment of consumer residential mortgage loans in the process of foreclosure was approximately $70 million and $92 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 September 30,				Nine Months Ended September 30,
Dollars in millions	2021		2020		2021		2020
Commercial loans:
Extension of Maturity Date	$	—	$	—	$	5	$	8
Payment or Covenant Modification/Deferment	—		—		7		—
Bankruptcy Plan Modification	—		—		—		—
Increase in new commitment or new money	—		—		—		—
Total	$	—	$	—	$	12	$	8
Consumer loans:
Interest rate reduction	$	3	$	13	$	6	$	22
Other	12		6		18		18
Total	$	15	$	19	$	24	$	40
Total TDRs	$	15	$	19	$	36	$	48

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 September 30,				Nine Months Ended September 30,
Dollars in millions	2021		2020		2021		2020
Balance at beginning of the period	$	334	$	310	$	363	$	347
Additions	17		26		98		65
Payments	(81)		(22)		(162)		(75)
Charge-offs	—		(8)		(29)		(31)
Balance at end of period	$	270	$	306	$	270	$	306

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A further breakdown of TDRs included in nonperforming loans by loan category for the periods indicated are as follows:

	September 30, 2021					December 31, 2020
	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	35	$	92	$	53	66	$	136	$	92
Commercial real estate:
Commercial mortgage	3	50		29		7	62		50
Total commercial real estate loans	3	50		29		7	62		50
Total commercial loans	38	142		82		73	198		142
Real estate — residential mortgage	218	26		25		258	35		34
Home equity loans	569	38		33		630	41		37
Consumer direct loans	201	3		3		212	3		3
Credit cards	328	2		2		356	2		2
Consumer indirect loans	23	1		1		861	15		11
Total consumer loans	1,339	70		64		2,317	96		87
Total nonperforming TDRs	1,377	212		146		2,390	294		229
Prior-year accruing:(a)
Commercial and industrial	7	49		26		3	5		—
Commercial real estate
Commercial mortgage	1	—		—		—	—		—
Total commercial real estate loans	1	—		—		—	—		—
Total commercial loans	8	49		26		3	5		—
Real estate — residential mortgage	464	39		34		485	37		31
Home equity loans	1,648	100		78		1,781	106		83
Consumer direct loans	206	5		3		163	4		3
Credit cards	564	4		1		536	3		1
Consumer indirect loans	150	16		8		775	29		16
Total consumer loans	3,032	164		124		3,740	179		134
Total prior-year accruing TDRs	3,040	163		124		3,743	184		134
Total TDRs	4,417	$	375	$	270	6,133	$	478	$	363

(a)All TDRs that were restructured prior to January 1, 2021, and January 1, 2020, 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 September 30, 2021, there were two commercial loan TDRs and 33 consumer loan TDRs with a combined recorded investment of $2 million that experienced payment defaults after modifications resulting in TDR status during 2020. During the three months ended September 30, 2020, there were no commercial loan TDRs and 33 consumer loan TDRs with a combined recorded investment of $1 million that experienced payment defaults after modifications resulting in TDR status during 2019.

During the nine months ended September 30, 2021, there were five commercial loan TDRs and 98 consumer loan TDRs with a combined recorded investment of $4 million that experienced payment defaults after modifications resulting in TDR status during 2020. During the nine months ended September 30, 2020, there were no commercial loan TDRs and 160 consumer loan TDRs with a combined recorded investment of $4 million that experienced payment defaults after modifications resulting in TDR status during 2019.

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:

69

	Three months ended September 30,				Nine months ended September 30,
Dollars in millions	2021		2020		2021		2020
Balance at the end of the prior period	$	152	$	198	$	197	$	68
Liability for credit losses on contingent guarantees at the end of the prior period	—		—		—		7
Cumulative effect from change in accounting principle (a), (b)	—		—		—		66
Balance at beginning of period	152		198		197		141
Provision (credit) for losses on off balance sheet exposures	—		10		(45)		67
Balance at end of period	$	152	$	208	$	152	$	208

(a)The cumulative effect from change in accounting principle relates to the January 1, 2020, adoption of ASU 2016-13.

(b)The nine months ended September 30, 2020, amount excludes $4 million related to the provision for other financial assets.

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 2020 Form 10-K.

70

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 2020 Form 10-K. The following tables present these assets and liabilities at September 30, 2021, and December 31, 2020.

	September 30, 2021								December 31, 2020
	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	—		$	747	—		$	747	—		$	633	—		$	633
States and political subdivisions	—		91		—		91		—		24		—		24
Other mortgage-backed securities	—		21		—		21		—		47		—		47
Other securities	$	17	13		—		30		—		13		—		13
Total trading account securities	17		872		—		889		—		717		—		717
Commercial loans	—		13		—		13		—		18		—		18
Total trading account assets	17		885		—		902		—		735		—		735
Securities available for sale:
U.S. Treasury, agencies and corporations	—		8,938		—		8,938		—		1,000		—		1,000
States and political subdivisions	—		—		—		—		—		—		—		—
Agency residential collateralized mortgage obligations	—		16,104		—		16,104		—		14,273		—		14,273
Agency residential mortgage-backed securities	—		5,408		—		5,408		—		2,164		—		2,164
Agency commercial mortgage-backed securities	—		10,121		—		10,121		—		10,106		—		10,106
Other securities	—		1		$	22	23		—		—		$	13	13
Total securities available for sale	—		40,572		22		40,594		—		27,543		13		27,556
Other investments:
Principal investments:
Direct	—		—		1		1		—		—		1		1
Indirect (measured at NAV) (a)	—		—		—		48		—		—		—		53
Total principal investments	—		—		1		49		—		—		1		54
Equity investments:
Direct	—		—		9		9		—		—		13		13
Direct (measured at NAV) (a)	—		—		—		16		—		—		—		7
Indirect (measured at NAV) (a)	—		—		—		6		—		—		—		7
Total equity investments	—		—		9		31		—		—		13		27
Total other investments	—		—		10		80		—		—		14		81
Loans, net of unearned income (residential)	—		—		10		10		—		—		11		11
Loans held for sale (residential)	—		237		—		237		—		264		—		264
Derivative assets:
Interest rate	—		920		34		954		—		1,528		56		1,584
Foreign exchange	65		15		—		80		$	78	31		—		109
Commodity	—		1,799		—		1,799		—		424		2		426
Credit	—		—		—		—		—		—		1		1
Other	—		16		6		22		—		26		32		58
Derivative assets	65		2,750		40		2,855		78		2,009		91		2,178
Netting adjustments (b)	—		—		—		(302)		—		—		—		(380)
Total derivative assets	65		2,750		40		2,553		78		2,009		91		1,798
Accrued income and other assets	—		—		—		—		—		—		—		—
Total assets on a recurring basis at fair value	$	82	$	44,444	$	82	$	44,376	$	78	$	30,551	$	129	$	30,445
LIABILITIES MEASURED ON A RECURRING BASIS
Bank notes and other short-term borrowings:
Short positions	$	212	$	555	—		$	767	$	256	$	503	—		$	759
Derivative liabilities:
Interest rate	—		273		—		273		—		288		—		288
Foreign exchange	60		15		—		75		72		31		—		103
Commodity	—		1,805		—		1,805		—		408		—		408
Credit	—		1		$	6	7		—		—		$	11	11
Other	—		11		—		11		—		16		—		16
Derivative liabilities	60		2,105		6		2,171		72		743		11		826
Netting adjustments (b)	—		—		—		(1,911)		—		—		—		(675)
Total derivative liabilities	60		2,105		6		260		72		743		11		151
Total liabilities on a recurring basis at fair value	$	272	$	2,660	$	6	$	1,027	$	328	$	1,246	$	11	$	910

(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.

71

The following table presents the fair value of our direct and indirect principal investments and related unfunded commitments at September 30, 2021, as well as financial support provided for the three and nine months ended September 30, 2021, and September 30, 2020.

					Financial support provided
					Three months ended September 30,					Nine months ended September 30,
	September 30, 2021				2021			2020		2021			2020
Dollars in millions	Fair Value		Unfunded Commitments		Funded Commitments		Funded Other	Funded Commitments	Funded Other	Funded Commitments		Funded Other	Funded Commitments		Funded Other
INVESTMENT TYPE
Direct investments	$	1	—		—		—	—	—	—		—	—		—
Indirect investments (measured at NAV) (a)	48		$	13	$	—	—	1	—	$	4	—	$	1	—
Total	$	49	$	13	$	—	—	1	—	$	4	—	$	1	—

(a) Our indirect investments consist of buyout funds, venture capital funds, and fund of funds. These investments are generally not redeemable. Instead, distributions are received through the liquidation of the underlying investments of the fund. An investment in any one of these funds typically can be sold only with the approval of the fund’s general partners. At September 30, 2021, 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 and nine months ended September 30, 2021, and September 30, 2020. 

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
Nine months ended September 30, 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		—		—			—		(2)		—	1		—			—			10		—
Derivative instruments (b)
Interest rate	56		—		(20)		(c)	$	1	(7)		—	—		$	21	(d)	(17)		(d)	34		—
Credit	(10)		—		4		(c)	—		—		—	—		—			—			(6)		—
Other (e)	32		—		(3)		(c)	—		—		—	(23)		—			—			6		—
Three months ended September 30, 2021
Securities available for sale
Other securities	$	22	—		—			—		—		—	—		—			—			$	22	—
Other investments
Principal investments
Direct (a)	1		—		—			—		—		—	—		—			—			1		—
Equity investments
Direct (a)	9		—		—			—		—		—	—		—			—			9		—
Loans held for sale (residential)	—		—		—			—		—		—	—		—			—			—		—
Loans, net of unearned income (residential)	11		—		—			—		(1)		—	—		—			—			10		—
Derivative instruments (b)
Interest rate	35		—		$	(5)	(c)	$	1	$	(1)	—	—		$	9	(d)	$	(5)	(d)	34		—
Credit	(5)		—		—			(1)		—		—	—		—						(6)		—
Other (e)	13		—		—		(c)	—		—		—	$	(7)	—			—			6		—

72

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
Nine months ended September 30, 2020
Trading account assets
Other mortgage-backed securities	—		—		—			—		$	(9)	—		—		$	36		—			$	27	—
Securities available for sale
Other securities	$	11	$	1	—			—		—		—		—		—			—			12		—
Other investments
Principal investments
Direct (a)	1		—		—			—		—		—		—		—			—			1		—
Equity investments
Direct (a)	12		—		$	—		—		—		—		—		—			—			12		—
Loans held for sale (residential)	—		—		—			—		(10)		—		$	11	—			—			1		—
Loans, net of unearned income (residential)	4		—		—			—		(2)		—		6		—			—			8		—
Derivative instruments (b)
Interest rate	22		—		$	18	(c)	$	14	(5)		—		—		$	98	(d)	$	(66)	(d)	81		—
Credit	(8)		—		(6)		(c)	$	1			—		—		—						(13)		—
Other (e)	5		—		—			—		—		—		39		—			—			44		—
Three months ended September 30, 2020
Trading account assets
Other mortgage-backed securities	$	36	—		—			—		$	(9)	$	—	—		$	—		—			$	27	$	—
Securities available for sale
Other securities	12		—		—			—		—		—		—		—			—			12		—
Other investments
Principal investments
Direct (a)	1		—		—			—		—		—		—		—			—			1		—
Equity investments
Direct (a)	12				$	—																12		—
Loans held for sale (residential)	—		—		—			—		$	—	—		$	1	—			—			1		—
Loans, net of unearned income (residential)	5		—		—			—		—		—		3		—			—			8		—
Derivative instruments (b)
Interest rate	52				$	(3)	(c)	$	2	$	(4)					$	36	(d)	$	(2)	(d)	81
Credit	(17)		—		4		(c)	—		—		—		—		—			—			(13)		—
Other (e)	46		—		5			—				—		(7)		—						44		—

(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 2020 Form 10-K.  There were no liabilities measured at fair value on a nonrecurring basis at September 30, 2021, and December 31, 2020.

The following table presents our assets measured at fair value on a nonrecurring basis at September 30, 2021, and December 31, 2020:

	September 30, 2021						December 31, 2020
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	—	—	$	5	$	5	—	—		$	108	$	108
Accrued income and other assets	—	—	74		74		—	$	—	56		56
Total assets on a nonrecurring basis at fair value	—	—	$	79	$	79	—	—		$	164	$	164

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 September 30, 2021, and December 31, 2020, the carrying amount of equity investments under this method was $168 million and $171 million, respectively. No impairment was recorded for the three months ended September 30, 2021.

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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 September 30, 2021, and December 31, 2020, along with the valuation

techniques used, are shown in the following table:

	Level 3 Asset (Liability)			Valuation  Technique	Significant Unobservable Input	Range (Weighted-Average) (b), (c)
Dollars in millions	September 30, 2021		December 31, 2020			September 30, 2021	December 31, 2020
Recurring
Securities available-for-sale:
Other securities	$	22	13	Discounted cash flows	Discount rate	N/A (16.61%)	N/A (15.09%)
					Marketability discount	N/A (30.00%)	N/A (30.00%)
					Volatility factor	N/A (55.00%)	N/A (44.00%)
Other investments:(a)
Equity investments
Direct	9		13	Discounted cash flows	Discount rate	N/A (14.15%)	13.90 - 17.04% (15.47%)
					Marketability discount	N/A	N/A (30.00%)
					Volatility factor	N/A	N/A (52.00%)
Loans, net of unearned income (residential)	10		11	Market comparable pricing	Comparability factor	64.50 - 97.30% (94.13%)	64.50-99.04% (94.17%)
Derivative instruments:
Interest rate	34		56	Discounted cash flows	Probability of default	.02 - 100% (16.60%)	.02 - 100% (7.90%)
					Internal risk rating	1 - 19 (15.133)	1 - 19 (9.675)
					Loss given default	0 - 1 (.500)	0 - 1 (.483)
Credit (assets)	—		1	Discounted cash flows	Probability of default	.02 - 100% (3.10%)	.02 - 100% (4.70%)
					Internal risk rating	1 - 19 (9.024)	1 - 19 (10.478)
					Loss given default	0 - 1 (.498)	0 - 1 (.490)
Credit (liabilities)	(6)		(11)	Discounted cash flows	Probability of default	.02 - 100% (14.91%)	.02 - 100% (15.45%)
					Internal risk rating	1 - 19 (8.197)	1 - 19 (8.555)
					Loss given default	0 - 1 (.422)	0 - 1 (.431)
Other(d)	6		32	Discounted cash flows	Loan closing rates	5.90 - 99.70% (85.17%)	36.95 - 99.68% (77.51%)
Nonrecurring
Collateral-dependent loans	5		108	Fair value of collateral	Discount rate	0 - 0.00% (0.00%)	0 - 100.00% (36.00%)
Accrued income and other assets:
OREO and other Level 3 assets (e)	12		16	Appraised value	Appraised value	N/M	N/M

(a)Principal investments, direct is excluded from this table as the balance at September 30, 2021, and December 31, 2020, is insignificant (less than $1 million).

(b)The weighted average of significant unobservable inputs is calculated using a weighting relative to fair value.

(c)For significant unobservable inputs with no range, a single figure is reported to denote the single quantitative factor used.

(d)Amounts represent interest rate lock commitments.

(e)Excludes $62 million and $40 million pertaining to servicing assets at September 30, 2021, and December 31, 2020, respectively. Refer to Note 8 (“Mortgage Servicing Assets”) for significant unobservable inputs pertaining to these assets.

74

Fair Value Disclosures of Financial Instruments

The Levels in the fair value hierarchy ascribed to our financial instruments and the related carrying amounts at September 30, 2021, and December 31, 2020, are shown in the following tables. Assets and liabilities are further arranged by measurement category.

	September 30, 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)	$	902	$	17	$	885	—		—		—			$	902
Other investments (b)	607		—		—		$	537	$	70	—			607
Loans, net of unearned income (residential) (d)	10		—		—		10		—		—			10
Loans held for sale (residential) (b)	237		—		237		—		—		—			237
Derivative assets - trading (b)	2,469		65		2,739		7		—		$	(342)	(f)	2,469
Fair value - OCI
Securities available for sale (b)	40,594		—		40,572		22		—		—			40,594
Derivative assets - hedging (b)(g)	84		—		45		—		—		39		(f)	84
Amortized cost
Held-to-maturity securities (c)	8,423		—		8,664		—		—		—			8,664
Loans, net of unearned income (d)	97,515		—		—		97,435		—		—			97,435
Loans held for sale (b)	1,568		—		—		1,568		—		—			1,568
Other
Cash and other short-term investments (a)	20,371		20,371		—		—		—		—			20,371
LIABILITIES (by measurement category)
Fair value - net income
Derivative liabilities - trading (b)	$	249	$	60	$	2,093	$	7	—		$	(1,911)	(f)	$	249
Fair value - OCI
Derivative liabilities - hedging (b)(g)	11		—		11		—		—		—		(f)	11
Amortized cost
Time deposits (e)	4,205		—		4,214		—		—		—			4,214
Short-term borrowings (a)	995		212		783		—		—		—			995
Long-term debt (e)	13,165		13,076		716		—		—		—			13,792
Other
Deposits with no stated maturity (a)	147,726		—		147,726		—		—		—			147,726

	December 31, 2020
			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)	$	735	—		$	735	—		—		—			$	735
Other investments (b)	621		—		—		$	555	$	66	—			621
Loans, net of unearned income (residential) (d)	11		—		—		11		—		—			11
Loans held for sale (residential) (b)	264		—		264		—		—		—			264
Derivative assets - trading (b)	1,676		$	78	1,939		91		—		$	(433)	(f)	1,675
Fair value - OCI
Securities available for sale (b)	27,556		—		27,543		13		—		—			27,556
Derivative assets - hedging (b)(g)	123		—		70		—		—		53		(f)	123
Amortized cost
Held-to-maturity securities (c)	7,595		—		8,023		—		—		—			8,023
Loans, net of unearned income (d)	99,548		—		—		98,946		—		—			98,946
Loans held for sale (b)	1,319		—		—		1,319		—		—			1,319
Other
Short-term investments - U.S. Treasury Bills (b)	—		—		—		—		—		—			—
Cash and other short-term investments (a)	17,285		17,285		—		—		—		—			17,285
LIABILITIES (by measurement category)
Fair value - net income
Derivative liabilities - trading (b)	$	154	$	72	$	746	$	11	—		$	(675)	(f)	$	154
Fair value - OCI
Derivative liabilities - hedging (b)(g)	(3)		—		(3)		—		—		—		(f)	(3)
Amortized cost
Time deposits (e)	5,743		—		5,765		—		—		—			5,765
Short-term borrowings (a)	979		256		723		—		—		—			979
Long-term debt (e)	13,709		13,925		734		—		—		—			14,659
Other
Deposits with no stated maturity (a)	129,539		—		129,539		—		—		—			129,539

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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 2020 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 are based on discounted cash flows utilizing relevant market inputs.

(f)Netting adjustments represent the amounts recorded to convert our derivative assets and liabilities from a gross basis to a net basis in accordance with the applicable accounting guidance. The net basis takes into account the impact of bilateral collateral and master netting agreements that allow us to settle all derivative contracts with a single counterparty on a net basis and to offset the net derivative position with the related cash collateral. Total derivative assets and liabilities include these netting adjustments.

(g)Derivative assets-hedging and derivative liabilities-hedging includes both cash flow and fair value hedges. Additional information regarding our accounting policies for cash flow and fair value hedges is provided in Note 1 (“1. Summary of Significant Accounting Policies”) under the heading “Derivatives and Hedging” beginning on page 114 of our 2020 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 $602 million ($518 million at fair value) at September 30, 2021, and $674 million ($567 million at fair value) at December 31, 2020;

•Portfolio loans at fair value of $2 million at September 30, 2021, and $2 million at December 31, 2020.

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.

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.

	September 30, 2021								December 31, 2020
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	$	8,960	—		$	22	$	8,938	$	1,000	—		—		$	1,000
Agency residential collateralized mortgage obligations	16,143		$	168	207		16,104		14,001		$	297	$	25	14,273
Agency residential mortgage-backed securities	5,409		51		52		5,408		2,094		70		—		2,164
Agency commercial mortgage-backed securities	10,141		253		273		10,121		9,707		432		33		10,106
Other securities	8		15				23		8		5		—		13
Total securities available for sale	$	40,661	$	487	$	554	$	40,594	$	26,810	$	804	$	58	$	27,556
HELD-TO-MATURITY SECURITIES
Agency residential collateralized mortgage obligations	$	2,485	$	69	—		$	2,554	$	3,775	$	124	—		$	3,899
Agency residential mortgage-backed securities	184		7		—		191		271		14		—		285
Agency commercial mortgage-backed securities	2,901		165		—		3,066		3,515		290		—		3,805
Asset-backed securities (c)	2,837		—		—		2,837		19		—		—		19
Other securities	16		—		—		16		15		—		—		15
Total held-to-maturity securities	$	8,423	$	241	—		$	8,664	$	7,595	$	428	$	—	$	8,023

(a)Amortized cost amounts exclude accrued interest receivable which is recorded within Other Assets on the balance sheet. At September 30, 2021, accrued interest receivable on available for sale securities and held-to-maturity securities totaled $53 million and $15 million, respectively.

(b)Amortized cost amounts exclude accrued interest receivable which is recorded within Other Assets on the balance sheet. At December 31, 2020, accrued interest receivable on available for sale securities and held-to-maturity securities totaled $42 million and $15 million, respectively.

(c)Includes $2.8 billion of securities as of September 30, 2021 related to the purchase of senior notes from a securitization collateralized by sold indirect auto loans.

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The following table summarizes securities in an unrealized loss position for which an allowance for credit losses has not been recorded as of September 30, 2021, and December 31, 2020.

	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
September 30, 2021
Securities available for sale:
U.S Treasury, agencies, and corporations	$	8,938	$	22		—		—			$	8,938	$	22
Agency residential collateralized mortgage obligations	7,647		150			$	868	$	57		8,515		207
Agency residential mortgage-backed securities	3,619		52			6		—		(a)	3,625		52
Agency commercial mortgage-backed securities	4,219		215			1,093		58			5,312		273
Held-to-maturity securities:
Asset-backed securities	1		—		(a)	1		—			2		—
Other securities	8,460		—		(a)	—		—		(a)	8,460		—
Total securities in an unrealized loss position	$	32,884	$	439		$	1,968	$	115		$	34,852	$	554
December 31, 2020
Securities available for sale:
Agency residential collateralized mortgage obligations	$	2,110	$	25		—		—			$	2,110	$	25
Agency residential mortgage-backed securities	6		—		(b)	$	5	—		(b)	11		—
Agency commercial mortgage-backed securities	2,709		33			—		—			2,709		33
Held-to-maturity securities:
Agency residential collateralized mortgage obligations	—		—			24		—		(b)	24		—
Other securities	5		—		(b)	—		—			5		—
Total securities in an unrealized loss position	$	4,830	$	58		$	29	—			$	4,859	$	58

(a)At September 30, 2021, gross unrealized losses totaled less than $1 million for asset-backed securities and other securities held-to-maturity with a loss duration of less than 12 months and asset-backed securities held-to-maturity with a loss duration of 12 months or longer. At September 30, 2021, gross unrealized losses totaled less than $1 million for agency residential mortgage-backed securities available for sale with a loss duration greater than 12 months.

(b)At December 31, 2020, gross unrealized losses totaled less than $1 million for agency residential mortgage-backed securities available for sale with a loss duration of less than 12 months and less than $1 million for other securities held-to-maturity with a loss duration of less than 12 months. At December 31, 2020, gross unrealized losses totaled less than $1 million for agency residential mortgage-backed securities available for sale with a loss duration greater than 12 months or longer and less than $1 million for agency residential collateralized mortgage obligations held to maturity with a loss duration greater than 12 months or longer.

Based on our evaluation at September 30, 2021, 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 September 30, 2021, securities available for sale and held-to-maturity securities totaling $14.7 billion were pledged to secure securities sold under repurchase agreements, to secure public and trust deposits, to facilitate access to secured funding, and for other purposes required or permitted by law.

The following table shows our securities by remaining maturity. CMOs, 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.

September 30, 2021	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	$	230	$	247	$	93	$	95
Due after one through five years	19,818		20,076		6,330		6,452
Due after five through ten years	17,312		17,128		2,000		2,117
Due after ten years	3,301		3,143		—		—
Total	$	40,661	$	40,594	$	8,423	$	8,664

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7. Derivatives and Hedging Activities

We are a party to various derivative instruments, mainly through our subsidiary, KeyBank. The primary derivatives that we use are interest rate swaps, caps, floors, and futures; foreign exchange contracts; commodity derivatives; and credit derivatives. Generally, these instruments help us manage exposure to interest rate risk, mitigate the credit risk inherent in our loan portfolio, hedge against changes in foreign currency exchange rates, and meet client financing and hedging needs.

At September 30, 2021, after taking into account the effects of bilateral collateral and master netting agreements, we had $84 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 $2.5 billion and derivative liabilities of $249 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 108 of our 2020 Form 10-K. Our derivative strategies and related risk management objectives are described in Note 8 (“Derivatives and Hedging Activities”) beginning on page 143 of our 2020 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 September 30, 2021, and December 31, 2020. 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:

	September 30, 2021						December 31, 2020
			Fair Value						Fair Value
Dollars in millions	Notional Amount		Derivative Assets		Derivative Liabilities		Notional Amount		Derivative Assets		Derivative Liabilities
Derivatives designated as hedging instruments:
Interest rate	$	36,423	$	45	$	11	$	36,135	$	70	$	(3)
Derivatives not designated as hedging instruments:
Interest rate	72,688		909		262		78,424		1,514		291
Foreign exchange	7,378		80		75		6,385		109		103
Commodity	15,090		1,799		1,805		9,702		426		408
Credit	339		—		7		423		1		11
Other (a)	3,652		22		11		4,951		58		16
Total	99,147		2,810		2,160		99,885		2,108		829
Netting adjustments (b)	—		(302)		(1,911)		—		(380)		(675)
Net derivatives in the balance sheet	135,570		2,553		260		136,020		1,798		151
Other collateral (c)	—		(1)		(30)		—		(2)		(11)
Net derivative amounts	$	135,570	$	2,552	$	230	$	136,020	$	1,796	$	140

(a)Other derivatives include interest rate lock commitments and forward sale commitments related to our residential mortgage banking activities, forward purchase and sales contracts consisting of contractual commitments associated with “to be announced” securities and when-issued securities, and other customized derivative contracts.

(b)Netting adjustments represent the amounts recorded to convert our derivative assets and liabilities from a gross basis to a net basis in accordance with the applicable accounting guidance.

(c)Other collateral represents the amount that cannot be used to offset our derivative assets and liabilities from a gross basis to a net basis in accordance with the applicable accounting guidance. The other collateral consists of securities and is exchanged under bilateral collateral and master netting agreements that allow us to offset the net derivative position with the related collateral. The application of the other collateral cannot reduce the net derivative position below zero. Therefore, excess other collateral, if any, is not reflected above.

Fair value hedges. During the nine-month period ended September 30, 2021, 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 September 30, 2021, and December 31, 2020, related to cumulative basis adjustments for fair value hedges.

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	September 30, 2021
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	$	8,077	$	205
Interest rate contracts	Securities Available for Sale(c)	6,280		168
	December 31, 2020
	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	$	8,182	$	416
Interest rate contracts	Securities Available for Sale(c)	2,080		21

(a)The carrying amount represents the portion of the liability designated as the hedged item.

(b)Basis adjustments related to de-designated hedged items that no longer qualify as fair value hedges reduced the hedge accounting basis adjustment by $7 million and $8 million at September 30, 2021, and December 31, 2020, 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 last layer expected to be remaining at the end of the relationship. At September 30, 2021, and December 31, 2020, the amortized costs of the closed portfolios in these hedging relationships was $7.7 billion and $2.5 billion, respectively.

Cash flow hedges. During the nine-month period ended September 30, 2021, 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 September 30, 2021, we expect to reclassify an estimated $167 million of after-tax net gains on derivative instruments designated as cash flow hedges from AOCI to income during the next 12 months. In addition, we expect to reclassify approximately $6 million of net gains related to terminated cash flow hedges from AOCI to income during the next 12 months. As of September 30, 2021, the maximum length of time over which we hedge forecasted transactions is 5.9 years.

The following tables summarize the effect of fair value and cash flow hedge accounting on the income statement for the three- and nine-month periods ended September 30, 2021, and September 30, 2020.

	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		Interest expense - deposits		Other income
Three months ended September 30, 2021
Total amounts presented in the consolidated statement of income	$	(54)	$	882	$	135	$	235	$	(15)	$	25
Net gains (losses) on fair value hedging relationships
Interest contracts
Recognized on hedged items	37		—		(38)		—		—		—
Recognized on derivatives designated as hedging instruments	(8)		—		39		—		—		—
Net income (expense) recognized on fair value hedges	$	29	—		$	1	—		—		—
Net gain (loss) on cash flow hedging relationships
Interest contracts
Realized gains (losses) (pre-tax) reclassified from AOCI into net income	$	(1)	$	79	$	—	$	(1)	—		—
Net income (expense) recognized on cash flow hedges	$	(1)	$	79	—		$	(1)	—		—
Three months ended September 30, 2020
Total amounts presented in the consolidated statement of income	$	(64)	$	927	$	115	$	146	$	(54)	$	28
Net gains (losses) on fair value hedging relationships
Interest contracts
Recognized on hedged items	$	47	—		—		—		—		—
Recognized on derivatives designated as hedging instruments	(7)		—		—		—		—		—
Net income (expense) recognized on fair value hedges	$	40	—		—		—		—		—
Net gain (loss) on cash flow hedging relationships
Interest contracts
Realized gains (losses) (pre-tax) reclassified from AOCI into net income	$	(1)	$	100	—		—		—		—
Net income (expense) recognized on cash flow hedges	$	(1)	$	100	—		—		—		—

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	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		Interest expense - deposits		Other income
Nine months ended September 30, 2021
Total amounts presented in the consolidated statement of income	$	(168)	$	2,659	$	398	$	614	$	(52)	$	89
Net gains (losses) on fair value hedging relationships
Interest contracts
Recognized on hedged items	210		—		(147)		—		—		—
Recognized on derivatives designated as hedging instruments	(113)		—		147		—		—		—
Net income (expense) recognized on fair value hedges	$	97	—		—		—		—		—
Net gain (loss) on cash flow hedging relationships
Interest contracts
Realized gains (losses) (pre-tax) reclassified from AOCI into net income	$	(3)	$	253	—		—		—		—
Net income (expense) recognized on cash flow hedges	$	(3)	$	253	—		—		—		—
Nine months ended September 30, 2020
Total amounts presented in the consolidated statement of income	$	(225)	$	2,933	$	365	$	418	$	(319)	$	(27)
Net gains (losses) on fair value hedging relationships
Interest contracts
Recognized on hedged items	$	(252)	—		—		—		—		—
Recognized on derivatives designated as hedging instruments	343		—		—		—		—		—
Net income (expense) recognized on fair value hedges	$	91	—		—		—		—		—
Net gain (loss) on cash flow hedging relationships
Interest contracts
Realized gains (losses) (pre-tax) reclassified from AOCI into net income	$	(3)	$	224	—		—		—		—
Net income (expense) recognized on cash flow hedges	$	(3)	$	224	—		—		—		—

The following tables summarize the pre-tax net gains (losses) on our cash flow hedges for the three- and nine-month periods ended September 30, 2021, and September 30, 2020, 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 September 30, 2021
Cash Flow Hedges
Interest rate	$	(2)	Interest income — Loans	$	79
Interest rate	—		Interest expense — Long-term debt	(1)
Interest rate	4		Investment banking and debt placement fees	(1)
Total	$	2		$	77
Three months ended September 30, 2020
Cash Flow Hedges
Interest rate	$	5	Interest income — Loans	$	100
Interest rate	—		Interest expense — Long-term debt	(1)
Interest rate	10		Investment banking and debt placement fees	—
Total	$	15		$	99

80

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(a)
Nine months ended September 30, 2021
Cash Flow Hedges
Interest rate	$	(144)	Interest income — Loans	$	253
Interest rate	2		Interest expense — Long-term debt	(3)
Interest rate	9		Investment banking and debt placement fees	—
Net Investment Hedges
Foreign exchange contracts	—		Other Income	—
Total	$	(133)		$	250
Nine months ended September 30, 2020
Cash Flow Hedges
Interest rate	$	629	Interest income — Loans	$	224
Interest rate	(6)		Interest expense — Long-term debt	(3)
Interest rate	(10)		Investment banking and debt placement fees	—
Net Investment Hedges
Foreign exchange contracts	—		Other Income	—
Total	$	613		$	221

Nonhedging instruments

The following table summarizes the pre-tax net gains (losses) on our derivatives that are not designated as hedging instruments for the three- and nine-month periods ended September 30, 2021, and September 30, 2020, and where they are recorded on the income statement.

	Three months ended September 30, 2021								Three months ended September 30, 2020
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	$	8	—		—		$	8	$	5	—		$	(1)	$	4
Foreign exchange	12		—		—		12		9		—		—		9
Commodity	4		—		—		4		5		—		—		5
Credit	1		—		$	(9)	(8)		4		—		(8)		(4)
Other	—		$	—	—		—		—		$	28	(8)		20
Total net gains (losses)	$	25	$	—	$	(9)	$	16	$	23	$	28	$	(17)	$	34

	Nine months ended September 30, 2021								Nine months ended September 30, 2020
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	$	19	—		$	1	$	20	$	23	—		$	(10)	$	13
Foreign exchange	34		—		—		34		29		—		—		29
Commodity	12		—		—		12		13		—		—		13
Credit	5		—		(27)		(22)		(6)		—		(20)		(26)
Other	—		$	13	(22)		(9)		—		$	36	17		53
Total net gains (losses)	$	70	$	13	$	(48)	$	35	$	59	$	36	$	(13)	$	82

Counterparty Credit Risk

We hold collateral in the form of cash and highly rated securities issued by the U.S. Treasury, government-sponsored enterprises, or GNMA. Cash collateral of $49 million was netted against derivative assets on the balance sheet at September 30, 2021, compared to $63 million of cash collateral netted against derivative assets at December 31, 2020. The cash collateral netted against derivative liabilities totaled $1.6 billion at September 30, 2021, and $232 million at December 31, 2020. 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 147 of our 2020 Form 10-K under the heading “Counterparty Credit Risk.”

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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	September 30, 2021		December 31, 2020
Interest rate	$	838	$	1,448
Foreign exchange	38		52
Commodity	1,606		178
Credit	—		(1)
Other	22		58
Derivative assets before collateral	2,504		1,735
Plus(Less): Related collateral	49		63
Total derivative assets	$	2,553	$	1,798

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 swap execution facilities. Swap clearing and swap execution facilities reduce our exposure to

counterparty credit risk. At September 30, 2021, we had gross exposure of $159 million to broker-dealers and banks. We had net exposure of $175 million after the application of master netting agreements and cash collateral, where such qualifying agreements exist. We had net exposure of $173 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 $25 million at September 30, 2021. The CVA is calculated from

potential future exposures, expected recovery rates, and market-implied probabilities of default. At September 30, 2021, we had gross exposure of $2.5 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, and the related reserve. 

Credit Derivatives

We are a buyer and, under limited circumstances, may be a seller of credit protection through the credit derivative market. We purchase credit derivatives to manage the credit risk associated with specific commercial lending and swap obligations as well as exposures to debt securities. Our credit derivative portfolio was in a net liability position of $7 million as of September 30, 2021, and $9 million as of December 31, 2020. 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 148 of our 2020 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 September 30, 2021, and December 31, 2020. 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.

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	September 30, 2021					December 31, 2020
Dollars in millions	Notional Amount		Average Term (Years)	Payment / Performance Risk		Notional Amount		Average Term (Years)	Payment / Performance Risk
Other	$	146	13.04	17.88	%	$	227	12.76	19.53	%
Total credit derivatives sold	$	146	—	—		$	227	—	—

Credit Risk Contingent Features

We have entered into certain derivative contracts that require us to post collateral to the counterparties when these contracts are in a net liability position. The amount of collateral to be posted is based on the amount of the net liability and thresholds generally related to our long-term senior unsecured credit ratings with Moody’s and S&P. Collateral requirements also are based on minimum transfer amounts, which are specific to each Credit Support Annex (a component of the ISDA Master Agreement) that we have signed with the counterparties. In a limited number of instances, counterparties have the right to terminate their ISDA Master Agreements with us if our ratings fall below a certain level, usually investment-grade level (i.e., “Baa3” for Moody’s and “BBB-” for S&P). At September 30, 2021, 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 September 30, 2021, 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 $1.7 billion, which was comprised of $194 million in derivative assets and $1.9 billion in derivative liabilities. We had $1.6 billion in cash and securities collateral posted to cover those positions as of September 30, 2021. There were no derivative contracts with credit risk contingent features held by KeyCorp at September 30, 2021.

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 September 30, 2021, and December 31, 2020. The additional collateral amounts were calculated based on scenarios under which KeyBank’s ratings are downgraded one, two, or three ratings as of September 30, 2021, and December 31, 2020, and take into account all collateral already posted. A similar calculation was performed for KeyCorp, and no additional collateral would have been required as of September 30, 2021, and December 31, 2020. 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.

	September 30, 2021				December 31, 2020
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	$	1	$	1
Two rating downgrades	3		3		1		1
Three rating downgrades	3		3		1		1

KeyBank’s long-term senior unsecured credit rating was four ratings above noninvestment grade at Moody’s and S&P as of September 30, 2021, and December 31, 2020. If KeyBank’s ratings had been downgraded below investment grade as of September 30, 2021, or December 31, 2020, payments of $4 million and $2 million, respectively, would have been required to either terminate the contracts or post additional collateral for those contracts in a net liability position, taking into account all collateral already posted. If KeyCorp’s ratings had been downgraded below investment grade as of September 30, 2021, or December 31, 2020, 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.

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 115 of our 2020 Form 10-K.

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Commercial

Changes in the carrying amount of commercial mortgage servicing assets are summarized as follows:

	Three months ended September 30,				Nine months ended September 30,
Dollars in millions	2021		2020		2021		2020
Balance at beginning of period	$	600	$	565	$	578	$	539
Servicing retained from loan sales	31		30		88		107
Purchases	8		6		22		24
Amortization	(30)		(29)		(89)		(88)
Temporary (impairments) recoveries	—		(6)		10		(16)
Balance at end of period	$	609	$	566	$	609	$	566
Fair value at end of period	$	735	$	685	$	735	$	685

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 September 30, 2021, and September 30, 2020, along with the valuation techniques, are shown in the following table: 

dollars in millions		September 30, 2021						September 30, 2020
Valuation Technique	Significant Unobservable Input	Range				Weighted Average		Range				Weighted Average
Discounted cash flow	Expected defaults	1.00	%	2.00	%	1.15	%	1.00	%	2.00	%	1.17	%
	Residual cash flows discount rate	7.64	%	10.49	%	9.31	%	7.72	%	10.66	%	9.30	%
	Escrow earn rate	1.04	%	1.37	%	1.04	%	0.92	%	1.16	%	1.05	%
	Loan assumption rate	—	%	1.71	%	1.40	%	—	%	1.78	%	1.39	%

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 $193 million for the nine-month period ended September 30, 2021, and $154 million for the nine-month period ended September 30, 2020. This fee income was offset by $89 million of amortization for the nine-month period ended September 30, 2021, and $88 million for the nine-month period ended September 30, 2020. 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 September 30,				Nine months ended September 30,
Dollars in millions	2021		2020		2021		2020
Balance at beginning of period	$	77	$	46	$	58	$	46
Servicing retained from loan sales	9		12		32		25
Purchases	—		—		—		—
Amortization	(4)		(4)		(14)		(9)
Temporary (impairments) recoveries	3		(1)		9		(9)
Balance at end of period	$	85	$	53	$	85	$	53
Fair value at end of period	$	89	$	54	$	89	$	54

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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 September 30, 2021, and September 30, 2020, along with the valuation techniques, are shown in the following table:

		September 30, 2021									September 30, 2020
Valuation Technique	Significant Unobservable Input	Range						Weighted Average			Range						Weighted Average
Discounted cash flow	Prepayment speed	8.03		%	48.88		%	11.67		%	12.35		%	53.36		%	16.89		%
	Discount rate	7.50		%	8.57		%	7.54		%	7.51		%	8.80		%	7.57		%
	Servicing cost	$	62.00		$	4,375		$	68.15		$	62.00		$	5,125		$	81.67

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 September 30, 2021, 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 $30 million for the nine-month period ended September 30, 2021, and $24 million for the nine-month period ended September 30, 2020. This fee income was offset by $14 million of amortization for the nine-month period ended September 30, 2021, and $9 million for the nine-month period ended September 30, 2020. Both the contractual fee income and the amortization are recorded, net, in “consumer mortgage income” on the income statement.

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 152 of our 2020 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 September 30,				Nine months ended September 30,
Dollars in millions	2021		2020		2021		2020
Sales-type and direct financing leases
Interest income on lease receivable	$	13	$	36	$	59	$	91
Interest income related to accretion of unguaranteed residual asset	9		(7)		12		(1)
Total sales-type and direct financing lease income	22		29		71		90
Operating leases
Operating lease income related to lease payments	31		34		95		103
Other operating leasing gains	6		4		16		25
Total operating lease income and other leasing gains	36		38		111		128
Total lease income	$	58	$	67	$	182	$	218

In April 2020, the FASB provided elections under which entities can choose to account for eligible rent concessions either by applying the existing lease modification accounting guidance or by applying an expedient to account for

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them outside of the modification framework, thus, forgoing the performance of an assessment to determine whether contractual provisions in existing lease arrangements provide enforceable rights and obligations. Modification accounting may require remeasurement and reallocation of contract consideration. To be eligible for the expedient, rent concessions must relate to the COVID-19 pandemic and meet certain criteria. As a result of the pandemic, Key provides lessees with 90 day deferrals on its equipment leases and has elected not to apply modification accounting. Rent concessions were not material at September 30, 2021.

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 156 of our 2020 Form 10-K.

LIHTC investments. We had $1.5 billion and $1.4 billion of investments in LIHTC operating partnerships at September 30, 2021, and December 31, 2020, 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 September 30, 2021, and December 31, 2020, we had liabilities of $608 million and $484 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.

Through KCIC, formed as a wholly-owned subsidiary of KeyBank National Association, we create funds that hold interests in LIHTC investments. KCIC is the managing member of the fund. We have determined that we are not the primary beneficiary of the fund because although we have the power to direct the activities that most significantly influence its economic performance, we do not have benefits that could potentially be deemed significant to the fund. Therefore, we do not consolidate the fund.

The assets and liabilities presented in the table below convey the size of KCDC’s direct and indirect investments at September 30, 2021, and December 31, 2020. 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 156 of our 2020 Form 10-K.

	Unconsolidated VIEs
Dollars in millions	Total Assets		Total Liabilities		Maximum Exposure to Loss
September 30, 2021
LIHTC investments	$	7,389	$	2,861	$	1,882
December 31, 2020
LIHTC investments	$	6,914	$	2,765	$	1,823

We amortize our LIHTC investments over the period that we expect to receive the tax benefits. During the first nine months of 2021, we recognized $147 million of amortization and $139 million of tax credits associated with these investments within “income taxes” on our income statement. During the first nine months of 2020, we recognized $137 million of amortization and $135 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 $48 million and $53 million at September 30, 2021, and December 31, 2020, 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 September 30, 2021, and December 31, 2020.

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	Unconsolidated VIEs
Dollars in millions	Total Assets		Total Liabilities		Maximum Exposure to Loss
September 30, 2021
Indirect investments	$	10,199	$	189	$	61
December 31, 2020
Indirect investments	$	10,899	$	168	$	78

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 September 30, 2021, and December 31, 2020, that can be used to settle the entities’ obligations. The entities had no liabilities at September 30, 2021, and December 31, 2020, and other equity investors have no recourse to our general credit.

Additional information on our indirect and direct principal investments is provided in Note 5 (“Fair Value Measurements”) and in Note 13 (“Variable Interest Entities “) beginning on page 156 of our 2020 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 September 30, 2021, and December 31, 2020. 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 September 30, 2021, $2.8 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 1 of our 2020 Form 10-K.

	Other unconsolidated VIEs
Dollars in millions	Total Assets		Total Liabilities
September 30, 2021
Other unconsolidated VIEs	$	3,166	$	1
December 31, 2020
Other unconsolidated VIEs	$	351	$	1

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 115 of our 2020 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 September 30, 2020, the income approach, which was weighted at 75%, utilized discounted cash flow projections for each reporting unit. The market approach, which was weighted at 25%, consisted primarily of public company metrics but also considered 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.

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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 SEPTEMBER 30, 2020	$	1,752	$	912	$	2,664
BALANCE AT BALANCE AT DECEMBER 31, 2020	$	1,752	$	912	$	2,664
AQN Strategies acquisition	9		—		9
BALANCE AT SEPTEMBER 30, 2021	$	1,761	$	912	$	2,673

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 20.4% for the third quarter of 2021 and 12.5% for the third quarter of 2020. 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 September 30, 2021, we had a net deferred tax asset of $41 million, compared to a net deferred tax liability of $100 million at December 31, 2020, which are included in “accrued income and other assets” and “accrued expense and other liabilities,” respectively, 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 September 30, 2021, and no valuation allowance at December 31, 2020. The valuation allowance is associated with federal and state capital loss carryforwards.

Unrecognized Tax Benefits

At September 30, 2021, Key’s unrecognized tax benefits were $55 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.

13. Acquisition and Discontinued Operations

Acquisitions

Arbitria Quum Notitia, LLC (AQN Strategies). On February 25, 2021, KeyCorp acquired AQN Strategies, a diversified consulting practice, specializing in analytically driven strategies and solutions as it relates to bank transformations, credit and growth, and payments intelligence. The acquisition of AQN Strategies will advance Key’s analytics by adding senior talent and expertise directly aligned to Key’s focus areas. The acquisition was accounted

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for as a business combination. As a result, we recognized goodwill of $9 million. No other material assets were acquired or liabilities assumed as a result of the acquisition.

Discontinued operations

Discontinued operations primarily includes our government-guaranteed and private education lending business. At September 30, 2021, and December 31, 2020, approximately $602 million and $710 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.

14. Securities Financing Activities

We enter into repurchase agreements to finance overnight customer sweep deposits. We also enter into repurchase and reverse repurchase agreements to settle other securities obligations. We account for these securities financing agreements as collateralized financing transactions. Repurchase and reverse repurchase agreements are recorded on the balance sheet at the amounts for which the securities will be subsequently sold or repurchased. Securities borrowed transactions are recorded on the balance sheet at the amounts of cash collateral advanced. While our securities financing agreements incorporate a right of set off, the assets and liabilities are reported on a gross basis. Reverse repurchase agreements and securities borrowed transactions are included in “short-term investments” on the Consolidated Balance Sheets; repurchase agreements are included in “federal funds purchased and securities sold under repurchase agreements.” Additional information regarding our securities financing activities, including risk management activities, is provided in Note 16 (“Securities Financing Activities”) beginning on page 160 of our 2020 Form 10-K.

The following table summarizes our securities financing agreements at September 30, 2021, and December 31, 2020:

	September 30, 2021							December 31, 2020
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	$	11	$	(11)	—		—	$	6	$	(6)	—		—
Securities borrowed	$	500	$	—	$	(500)	—	$	500	$	—	$	(500)	—
Total	$	511	$	(11)	$	(500)	—	$	506	$	(6)	$	(500)	—
Offsetting of financial liabilities:
Repurchase agreements (c)	$	229	$	(11)	$	(218)	—	$	220	$	(6)	$	(214)	—
Total	$	229	$	(11)	$	(218)	—	$	220	$	(6)	$	(214)	—

(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 September 30, 2021, the carrying amount of assets pledged as collateral against repurchase agreements totaled $283 million. Assets pledged as collateral are reported in “securities available for sale” and “held-to-maturity securities” on the Consolidated Balance Sheets. At September 30, 2021, the liabilities associated with collateral pledged were solely comprised of customer sweep financing activity and had a carrying value of $218 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.

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 164 of our 2020 Form 10-K.

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	Three months ended September 30,				Nine months ended September 30,
Dollars in millions	2021		2020		2021		2020
Interest cost on PBO	$	6	$	9	$	18	$	26
Expected return on plan assets	(7)		(10)		(21)		(29)
Amortization of losses	5		5		14		13
Settlement loss	7		—		7		8
Net pension cost	$	11	$	4	$	18	$	18

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
September 30, 2021
KeyCorp Capital I	$	156	$	6	$	162	0.885	%	2028
KeyCorp Capital II	101		4		105		6.875		2029
KeyCorp Capital III	140		4		144		7.750		2029
HNC Statutory Trust III	20		1		21		1.531		2035
Willow Grove Statutory Trust I	20		1		21		1.409		2036
HNC Statutory Trust IV	17		1		18		1.426		2037
Westbank Capital Trust II	8		—		8		2.312		2034
Westbank Capital Trust III	8		—		8		2.312		2034
Total	$	470	$	17	$	486	4.343	%	—
December 31, 2020	$	483	$	17	$	500	4.464	%	—

(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 $56 million at September 30, 2021, and $70 million at December 31, 2020. 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 $56 million at September 30, 2021, and $70 million at December 31, 2020. 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.

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

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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 September 30, 2021. 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 116 of our 2020 Form 10-K.

September 30, 2021	Maximum Potential Undiscounted Future Payments		Liability Recorded
Dollars in millions
Financial guarantees:
Standby letters of credit	$	3,463	$	83
Recourse agreement with FNMA	6,272		25
Residential mortgage reserve	2,972		14
Written put options (a)	3,835		57
Total	$	16,542	$	179

(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 September 30, 2021, 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 174 of our 2020 Form 10-K.

Standby letters of credit. At September 30, 2021, our standby letters of credit had a remaining weighted-average life of 1.7 years, with remaining actual lives ranging from less than 1 year to as many as 13.2 years.

Recourse agreement with FNMA. At September 30, 2021, 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 $20.6 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 30.5% of the principal balance of loans outstanding at September 30, 2021. 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 September 30, 2021, the unpaid principal balance outstanding of loans sold by us in this program was $9.7 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 September 30, 2021. 

Our liability for estimated repurchase obligations on loans sold, which is included in Other liabilities on the Consolidated Balance Sheets, was $14 million at September 30, 2021. For more information on our residential mortgages, see Note 8 (“Mortgage Servicing Assets“).

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Written put options. At September 30, 2021, our written put options had an average life of 2.1 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 175 of our 2020 Form 10-K.

18. Accumulated Other Comprehensive Income

Our changes in AOCI for the three and nine months ended September 30, 2021, and September 30, 2020, 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, 2020	$	567	$	476	$	(305)	$	738
Other comprehensive income before reclassification, net of income taxes	(617)		11		(2)		(608)
Amounts reclassified from AOCI, net of income taxes (a)	—		(191)		16		(175)
Net current-period other comprehensive income, net of income taxes	(617)		(180)		14		(783)
Balance at September 30, 2021	$	(50)	$	296	$	(291)	$	(45)
Balance at June 30, 2021	$	124	$	325	$	(299)	$	150
Other comprehensive income before reclassification, net of income taxes	(174)		30		(1)		(145)
Amounts reclassified from AOCI, net of income taxes (a)	—		(59)		9		(50)
Net current-period other comprehensive income, net of income taxes	(174)		(29)		8		(195)
Balance at September 30, 2021	$	(50)	$	296	$	(291)	$	(45)
Balance at December 31, 2019	$	115	$	250	$	(339)	$	26
Other comprehensive income before reclassification, net of income taxes	530		467		(1)		996
Amounts reclassified from AOCI, net of income taxes (a)	(3)		(168)		16		(155)
Net current-period other comprehensive income, net of income taxes	527		299		15		841
Balance at September 30, 2020	$	642	$	549	$	(324)	$	867
Balance at June 30, 2020	$	650	$	613	$	(327)	$	936
Other comprehensive income before reclassification, net of income taxes	(8)		11		(1)		2
Amounts reclassified from AOCI, net of income taxes (a)	—		(75)		4		(71)
Net current-period other comprehensive income, net of income taxes	(8)		(64)		3		(69)
Balance at September 30, 2020	$	642	$	549	$	(324)	$	867

(a)See table below for details about these reclassifications.

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Our reclassifications out of AOCI for the three and nine months ended September 30, 2021, and September 30, 2020, are as follows:

	Three months ended September 30,				Affected Line Item in the Statement Where Net Income is Presented
Dollars in millions	2021		2020
Unrealized gains (losses) on derivative financial instruments
Interest rate	$	79	$	100	Interest income — Loans
Interest rate	(1)		(1)		Interest expense — Long-term debt
Interest rate	(1)		—		Investment banking and debt placement fees
	77		99		Income (loss) from continuing operations before income taxes
	18		24		Income taxes
	$	59	$	75	Income (loss) from continuing operations
Net pension and postretirement benefit costs
Amortization of losses	$	(5)	$	(5)	Other expense
Settlement loss	(7)		—		Other expense
	(12)		(5)		Income (loss) from continuing operations before income taxes
	(3)		(1)		Income taxes
	$	(9)	$	(4)	Income (loss) from continuing operations

	Nine months ended September 30,				Affected Line Item in the Statement Where Net Income is Presented
Dollars in millions	2021		2020
Unrealized gains (losses) on available for sale securities
Realized gains	—		$	4	Other income
	—		4		Income (loss) from continuing operations before income taxes
	—		1		Income taxes
	—		$	3	Income (loss) from continuing operations
Unrealized gains (losses) on derivative financial instruments
Interest rate	$	253	$	224	Interest income — Loans
Interest rate	(3)		(3)		Interest expense — Long-term debt
Interest rate	—		—		Investment banking and debt placement fees
	250		221		Income (loss) from continuing operations before income taxes
	59		53		Income taxes
	$	191	$	168	Income (loss) from continuing operations
Net pension and postretirement benefit costs
Amortization of losses	$	(14)	$	(13)	Other expense
Settlement loss	(7)		(8)		Other expense
	(21)		(21)		Income (loss) from continuing operations before income taxes
	(5)		(5)		Income taxes
	$	(16)	$	(16)	Income (loss) from continuing operations

19. Shareholders' Equity

Comprehensive Capital Plan

In the third quarter of 2021, under our current authorization pursuant to our 2021 capital plan, we completed $593 million of Common Share repurchases. Of the $593 million total common shares repurchased in the third quarter of 2021, $468 million were related to the initial settlement of an ASR program entered into with Goldman Sachs & Co. LLC (Goldman Sachs) on September 10, 2021, and $125 million were purchased in the open market. Less than $1 million of Common Share repurchases related to employee equity compensation programs.

Under the ASR program, we made a cash payment of $585 million to Goldman Sachs and received an initial delivery of 23.6 million shares of our common stock from Goldman Sachs based on the then current market price of $19.87 of our common stock. The payment to Goldman Sachs was recorded as a reduction to our shareholders’ equity, consisting of a $468 million impact to treasury stock, which reflected the value of the initial 23.6 million shares received upon initial settlement, and a $117 million reduction to our capital surplus balance, which reflects the value of common stock held back by Goldman Sachs pending final settlement of the ASR program. The total number of shares that we will repurchase under the ASR program will be based on the volume-weighted average share price of our common stock during the term of the ASR agreement, less a discount, and subject to potential adjustments pursuant to the terms and conditions of the ASR agreement.

Consistent with our capital plan, the Board declared a quarterly dividend of $.185 per Common Share for the third quarter of 2021. Common Share repurchases and Common Share dividends paid during the third quarter are consistent with the Federal Reserve’s third quarter capital distribution limitations.

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Preferred Stock

Preferred stock series	Amount outstanding (in millions)		Shares authorized and outstanding	Par value		Liquidation preference		Ownership interest per depositary share	Liquidation preference per depositary share		Third quarter 2021 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

20. Business Segment Reporting

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.

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The table below shows selected financial data for our business segments for the three- and nine-month periods ended September 30, 2021, and September 30, 2020. Capital is assigned to each business segment based on a combination of regulatory and economic equity.

Three months ended September 30,	Consumer Bank						Commercial Bank						Other						Total Key
Dollars in millions	2021			2020			2021			2020			2021			2020			2021			2020
SUMMARY OF OPERATIONS
Net interest income (TE)	$	582		$	598		$	414		$	427		$	29		$	(19)		$	1,025		$	1,006
Noninterest income	288			266			477			384			32			31			797			681
Total revenue (TE) (a)	870			864			891			811			61			12			1,822			1,687
Provision for credit losses	(38)			(3)			(69)			150			—			13			(107)			160
Depreciation and amortization expense	31			19			34			35			22			35			87			89
Other noninterest expense	560			548			436			412			29			(12)			1,025			948
Income (loss) from continuing operations before income taxes (TE)	317			300			490			214			10			(24)			817			490
Allocated income taxes and TE adjustments	76			71			106			41			(8)			(46)			174			66
Income (loss) from continuing operations	241			229			384			173			18			22			643			424
Income (loss) from discontinued operations, net of taxes	—			—			—			—			2			4			2			4
Net income (loss)	241			229			384			173			20			26			645			428
Less: Net income (loss) attributable to noncontrolling interests	—			—			—			—			—			—			—			—
Net income (loss) attributable to Key	$	241		$	229		$	384		$	173		$	20		$	26		$	645		$	428
AVERAGE BALANCES (b)
Loans and leases	$	39,796		$	38,354		$	59,914		$	66,378		$	428		$	187		$	100,138		$	104,919
Total assets (a)	42,981			43,304			69,285			74,530			69,105			50,977			181,371			168,811
Deposits	89,156			82,829			56,546			51,585			1,214			530			146,916			134,944
OTHER FINANCIAL DATA
Net loan charge-offs (b)	$	35		$	23		$	(6)		$	103		$	—		$	2		$	29		$	128
Return on average allocated equity (b)	25.81		%	26.21		%	18.68		%	13.35		%	1.18		%	.96		%	14.25		%	9.51		%
Return on average allocated equity	25.81			26.21			18.68			13.35			1.31			1.14			14.30			9.60
Average full-time equivalent employees (c)	7,976			8,323			2,371			2,312			6,662			6,462			17,009			17,097

(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.

Nine months ended September 30,	Consumer Bank						Commercial Bank						Other							Total Key
Dollars in millions	2021			2020			2021			2020			2021				2020			2021			2020
SUMMARY OF OPERATIONS
Net interest income (TE)	$	1,788		$	1,765		$	1,244		$	1,305		$	28			$	(50)		$	3,060		$	3,020
Noninterest income	798			740			1,377			1,023			110				87			2,285			1,850
Total revenue (TE) (a)	2,586			2,505			2,621			2,328			138				37			5,345			4,870
Provision for credit losses	(132)			289			(267)			697			(23)				15			(422)			1,001
Depreciation and amortization expense	71			59			101			108			95				105			267			272
Other noninterest expense	1,706			1,597			1,263			1,144			23				(32)			2,992			2,709
Income (loss) from continuing operations before income taxes (TE)	941			560			1,524			379			43				(51)			2,508			888
Allocated income taxes and TE adjustments	226			133			324			38			(27)				(37)			523			134
Income (loss) from continuing operations	715			427			1,200			341			70				(14)			1,985			754
Income (loss) from discontinued operations, net of taxes	—			—			—			—			11				7			11			7
Net income (loss)	715			427			1,200			341			81				(7)			1,996			761
Less: Net income (loss) attributable to noncontrolling interests	—			—			—			—			—				—			—			—
Net income (loss) attributable to Key	$	715		$	427		$	1,200		$	341		$	81		(d)	$	(7)		$	1,996		$	761
AVERAGE BALANCES (b)
Loans and leases	$	39,883		$	36,319		$	60,358		$	66,374		$	321			$	325		$	100,562		$	103,018
Total assets (a)	43,094			40,644			69,607			75,205			64,493				43,897			177,194			159,746
Deposits	87,549			78,414			54,660			45,350			814				691			143,023			124,455
OTHER FINANCIAL DATA
Net loan charge-offs (b)	$	105		$	106		$	81		$	200		(21)				2			$	165		$	308
Return on average allocated equity (b)	26.70		%	16.66		%	18.92		%	9.19		%	1.62		%		(.20)		%	14.87		%	5.74		%
Return on average allocated equity	26.70			16.66			18.92			9.19			1.87				(.10)			14.96			5.79
Average full-time equivalent employees (c)	8,062			8,171			2,371			2,288			6,601				6,299			17,034			16,758

(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.

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21. Revenue from Contracts with Customers

The following table represents a disaggregation of revenue from contracts with customers, by business segment, for the three- and nine-month periods ended September 30, 2021, and September 30, 2020. 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 September 30, 2021						Three months ended September 30, 2020
Dollars in millions	Consumer Bank		Commercial Bank		Total Contract Revenue		Consumer Bank		Commercial Bank		Total Contract Revenue
NONINTEREST INCOME
Trust and investment services income	$	105	$	16	$	121	$	100	$	15	$	115
Investment banking and debt placement fees	—		169		169		—		69		69
Services charges on deposit accounts	56		35		91		45		32		77
Cards and payments income	46		61		107		43		69		112
Other noninterest income	2		—		2		3		—		3
Total revenue from contracts with customers	$	209	$	281	$	490	$	191	$	185	$	376
Other noninterest income (a)					$	275					$	274
Noninterest income from Other(b)					32						31
Total noninterest income					$	797					$	681

(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.

	Nine months ended September 30, 2021						Nine months ended September 30, 2020
Dollars in millions	Consumer Bank		Commercial Bank		Total Contract Revenue		Consumer Bank		Commercial Bank		Total Contract Revenue
NONINTEREST INCOME
Trust and investment services income	$	311	$	49	$	360	$	279	$	49	$	328
Investment banking and debt placement fees	—		367		367		—		176		176
Services charges on deposit accounts	145		102		247		138		91		229
Cards and payments income	135		187		322		118		147		265
Other noninterest income	5		2		7		7		—		7
Total revenue from contracts with customers	$	596	$	707	$	1,303	$	542	$	463	$	1,005
Other noninterest income (a)					$	872					$	758
Noninterest income from Other(b)					110						87
Total noninterest income					$	2,285					$	1,850

(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 September 30, 2021, and September 30, 2020.

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Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Directors of KeyCorp

Results of Review of Interim Financial Statements

We have reviewed the accompanying consolidated balance sheet of KeyCorp as of September 30, 2021, the related consolidated statements of income, comprehensive income, changes in equity for the three- and nine-month periods ended September 30, 2021 and 2020, the related consolidated statements of cash flows for the nine-month periods ended September 30, 2021 and 2020, and the related notes (collectively referred to as the “consolidated interim financial statements”). Based on our reviews, we are not aware of any material modifications that should be made to the consolidated interim financial statements for them to be in conformity with U.S. generally accepted accounting principles.

We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheet of KeyCorp as of December 31, 2020, and the related consolidated statements of income, comprehensive income, changes in equity and cash flows for the year then ended, and the related notes (not presented herein); and in our report dated February 22, 2021, we expressed an unqualified opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying consolidated balance sheet as of December 31, 2020 is fairly stated, in all material respects, in relation to the consolidated balance sheet from which it has been derived.

Basis for Review Results

These financial statements are the responsibility of KeyCorp's management. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to KeyCorp in accordance with the U.S. federal securities laws and the applicable rules and regulations of the SEC and the PCAOB. We conducted our review in accordance with the standards of the PCAOB. A review of interim financial statements consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the PCAOB, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.

Cleveland, Ohio

November 2, 2021

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Item 3.    Quantitative and Qualitative Disclosure about Market Risk

The information presented in the “Market risk management” section of the Management’s Discussion & Analysis of Financial Condition & Results of Operations is incorporated herein by reference.

Item 4.     Controls and Procedures

As of the end of the period covered by this report, KeyCorp carried out an evaluation, under the supervision and with the participation of KeyCorp’s management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of KeyCorp’s disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934 (the “Exchange Act”)), to ensure that information required to be disclosed by KeyCorp in reports that it files or submits under the Exchange Act, is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to KeyCorp’s management, including its Chief Executive Officer and Chief Financial Officer, as appropriate, to allow for timely decisions regarding required disclosure. Based upon that evaluation, KeyCorp’s Chief Executive Officer and Chief Financial Officer concluded that the design and operation of these disclosure controls and procedures were effective, in all material respects, as of the end of the period covered by this report. No changes were made to KeyCorp’s internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) during the last quarter that materially affected, or are reasonably likely to materially affect, KeyCorp’s internal control over financial reporting.

In the second quarter of 2021, KeyCorp implemented a new general ledger accounting system. The new general ledger system was implemented in order to provide a consistent system platform for the KeyCorp companies and to enhance management reporting and analysis. This change in systems was subject to thorough testing and review by internal and external parties both before and after final implementation. KeyCorp continually strives to improve its internal control over financial reporting to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with GAAP. These transitions have not materially affected, and we do not expect them to materially affect, our internal control over financial reporting.

PART II. OTHER INFORMATION

Item 1.     Legal Proceedings

The information presented in the Legal Proceedings section of Note 17 (“Contingent Liabilities and Guarantees”) of the Notes to Consolidated Financial Statements (Unaudited) is incorporated herein by reference.

On at least a quarterly basis, we assess our liabilities and contingencies in connection with outstanding legal proceedings utilizing the latest information available. Where it is probable that we will incur a loss and the amount of the loss can be reasonably estimated, we record a liability in our consolidated financial statements. These legal reserves may be increased or decreased to reflect any relevant developments on a quarterly basis. Where a loss is not probable or the amount of the loss is not estimable, we have not accrued legal reserves, consistent with applicable accounting guidance. Based on information currently available to us, advice of counsel, and available insurance coverage, we believe that our established reserves are adequate and the liabilities arising from the legal proceedings will not have a material adverse effect on our consolidated financial condition. 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.

Item 1A.     Risk Factors

For a discussion of certain risk factors affecting us, see the section titled “Supervision and Regulation” in Part I, Item 1. Business, on pages 10-25 of our 2020 Form 10-K; Part I, Item 1A. Risk Factors, on pages 26-38 of our 2020 Form 10-K; the sections titled “Supervision and regulation” and “Strategic developments” in this Form 10-Q; and our disclosure regarding forward-looking statements in this Form 10-Q. The additional risk factor set forth below represents a new risk factor that has become applicable since the filing of our 2020 Form 10-K.

98

Labor shortages and constraints in the supply chain could adversely affect our clients’ operations as well as our operations.

Many sectors in the United States and around the world are experiencing a shortage of workers. The shortage of workers is exacerbating supply chain disruptions around the world, causing certain industries to struggle to regain momentum due to a lack of workers or materials. Our commercial clients may be impacted by the shortage of workers and constraints in the supply chain, which could adversely impact our clients’ operations. Clients may experience disruptions in their operations, which could lead to reduced cash flow and difficulty in making loan repayments. The financial services industry has also been affected by the shortage of workers, and Key has experienced the war for talent that is currently underway in the financial services industry. This may lead to open positions remaining unfilled for longer periods of time or a need to increase wages to attract workers. We have had to recently increase wages in certain positions to attract talent, particularly in entry-level type positions and certain specialty areas. Please also see the risk factor entitled “We may not be able to attract and retain skilled people” in Part I, Item 1A. Risk Factors on page 37 of our 2020 Form 10-K.

Item 2.     Unregistered Sales of Equity Securities and Use of Proceeds

From time to time, KeyCorp or its principal subsidiary, KeyBank, may seek to retire, repurchase, or exchange outstanding debt of KeyCorp or KeyBank, and capital securities or preferred stock of KeyCorp, through cash purchase, privately negotiated transactions, or otherwise. Such transactions, if any, depend on prevailing market conditions, our liquidity and capital requirements, contractual restrictions, and other factors. The amounts involved may be material.

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.

In the third quarter of 2021, under our authorization pursuant to our 2021 capital plan, we completed $593 million of Common Share repurchases, including less than $1 million of Common Share repurchases related to employee equity compensation programs. Of the total share repurchases, $468 million were repurchased under an ASR program. Refer to Note 19 (“Shareholders' Equity”) for further information on the ASR program.

The following table summarizes our repurchases of our Common Shares for the three months ended September 30, 2021.

Calendar month	Total number of shares purchased (a)	Average price paid per share		Total number of shares purchased as part of publicly announced plans or programs	Maximum number of shares that may yet be purchased as part of publicly announced plans or programs (b)
July 1 - 31	4,552,375	19.45		4,552,375	71,792,234
August 1 - 30	1,817,320	19.83		1,817,320	67,687,234
September 1 - 30	23,553,087	19.87		23,553,087	41,970,613
Total	29,922,782	$	19.80	29,922,782

(a)Includes Common Shares deemed surrendered by employees in connection with our stock compensation and benefit plans to satisfy tax obligations.

(b)Calculated using the remaining general repurchase amount divided by the closing price of KeyCorp Common Shares as follows: on July 31, 2021, at $19.66; on August 30, 2021, at $20.32; and on September 30, 2021, at $21.62. Includes shares that may be subject to repurchase under the ASR program pending final settlement in the fourth quarter of 2021. The total number of shares we will repurchase will be based on the volume-weighted average share price of our common stock during the term of the ASR, less a discount, and subject to potential adjustments pursuant to the terms and conditions of the ASR agreement.

99

Item 6. Exhibits

15	Acknowledgment of Independent Registered Public Accounting Firm.
31.1	Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Certification of Chief Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.*
32.2	Certification of Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.*
101	The following materials from KeyCorp’s Form 10-Q Report for the quarterly period ended September 30, 2021, formatted in inline XBRL: (i) the Consolidated Balance Sheets; (ii) the Consolidated Statements of Income and Consolidated Statements of Comprehensive Income; (iii) the Consolidated Statements of Changes in Equity; (iv) the Consolidated Statements of Cash Flows; and (v) the Notes to Consolidated Financial Statements.
104	The cover page from KeyCorp’s Form 10-Q for the quarterly period ended September 30, 2021, formatted in inline XBRL (contained in Exhibit 101).

* Furnished herewith.

Information Available on Website

KeyCorp makes available free of charge on its website, www.key.com, its 2020 Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and amendments to these reports as soon as reasonably practicable after KeyCorp electronically files such material with, or furnishes it to, the SEC. We also make available a summary of filings made with the SEC of statements of beneficial ownership of our equity securities filed by our directors and officers under Section 16 of the Exchange Act. The “Financials — Regulatory Disclosures and Filings” tab of the investor relations section of our website includes public disclosures concerning our prior annual and mid-year stress-testing activities under the Dodd-Frank Act. Information contained on or accessible through our website or any other website referenced in this report is not part of this report.

100

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, on the date indicated.

	KEYCORP
	(Registrant)
November 2, 2021	/s/ Douglas M. Schosser
	By:  Douglas M. Schosser
	Chief Accounting Officer (Principal Accounting Officer)

101

EX-15

EXHIBIT 15

Acknowledgment of Independent Registered Public Accounting Firm

November 2, 2021

The Board of Directors and Shareholders of KeyCorp

We are aware of the incorporation by reference in the following Registration Statements (including all amendments thereto) of KeyCorp:

Form S-3 No. 333-55959        

Form S-3 No. 333-59175        

Form S-3 No. 333-64601        

Form S-3 No. 333-76619            

Form S-3 No. 333-239044

Form S-8 No. 333-49609        

Form S-8 No. 333-70669                                

Form S-8 No. 333-107074        

Form S-8 No. 333-107075        

Form S-8 No. 333-107076                

Form S-8 No. 333-112225                

Form S-8 No. 333-167093        

Form S-8 No. 333-188703

Form S-8 No. 333-208272

Form S-8 No. 333-231689

Form S-8 No. 333-256086

of our review report dated November 2, 2021 relating to the unaudited consolidated interim financial statements of KeyCorp that are included in its Form 10-Q for the quarter ended September 30, 2021.

Ernst & Young

Cleveland, Ohio

EX-31.1

EXHIBIT 31.1

CERTIFICATION PURSUANT TO

SECTION 302 OF THE

SARBANES-OXLEY ACT OF 2002

I, Christopher M. Gorman, certify that:

1.I have reviewed this quarterly report on Form 10-Q of KeyCorp;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 2, 2021
	Christopher M. Gorman
	Chairman, Chief Executive Officer and President

EX-31.2

EXHIBIT 31.2

CERTIFICATION PURSUANT TO

SECTION 302 OF THE

SARBANES-OXLEY ACT OF 2002

I, Donald R. Kimble, certify that:

1.I have reviewed this quarterly report on Form 10-Q of KeyCorp;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and 

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 2, 2021
	Donald R. Kimble
	Chief Financial Officer

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO

SECTION 906 OF THE

SARBANES-OXLEY ACT OF 2002

Pursuant to 18 U.S.C. 1350, the undersigned officer of KeyCorp (the “Company”) hereby certifies that the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2021 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934 and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: November 2, 2021
	Christopher M. Gorman
	Chairman, Chief Executive Officer and President

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

EXHIBIT 32.2

CERTIFICATION PURSUANT TO

SECTION 906 OF THE

SARBANES-OXLEY ACT OF 2002

Pursuant to 18 U.S.C. 1350, the undersigned officer of KeyCorp (the “Company”) hereby certifies that the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2021 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934 and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: November 2, 2021
	Donald R. Kimble
	Chief Financial Officer

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Cover Page - shares	9 Months Ended
	Sep. 30, 2021	Oct. 29, 2021
Entity Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2021
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		931,058,285
Entity Central Index Key	0000091576
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q3
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

XML

Consolidated Balance Sheets - USD ($) $ in Thousands		Sep. 30, 2021	Dec. 31, 2020
ASSETS
Cash and due from banks		$ 763,000	$ 1,091,000
Short-term investments		19,608,000	16,194,000
Trading account assets		902,000	735,000
Securities available for sale		40,594,000	27,556,000
Held-to-maturity securities (fair value: $8,664 and $8,023)		8,423,000	7,595,000
Other investments		607,000	621,000
Loans, net of unearned income of $361 and $449		98,609,000	101,185,000
Less: Allowance for loan and lease losses		(1,084,000)	(1,626,000)
Net loans		97,525,000	99,559,000
Loans held for sale	[1]	1,805,000	1,583,000
Premises and equipment		678,000	753,000
Goodwill		2,673,000	2,664,000
Other intangible assets		144,000	188,000
Corporate-owned life insurance		4,312,000	4,286,000
Accrued income and other assets		8,404,000	6,812,000
Discontinued assets		597,000	699,000
Total assets		187,035,000	170,336,000
Deposits in domestic offices:
NOW and money market deposit accounts		87,242,000	80,427,000
Savings deposits		7,259,000	5,913,000
Certificates of deposit ($100,000 or more)		1,890,000	2,733,000
Other time deposits		2,315,000	3,010,000
Total interest-bearing deposits		98,706,000	92,083,000
Noninterest-bearing deposits		53,225,000	43,199,000
Total deposits		151,931,000	135,282,000
Federal funds purchased and securities sold under repurchase agreements		228,000	220,000
Bank notes and other short-term borrowings		767,000	759,000
Accrued expense and other liabilities		3,434,000	2,385,000
Long-term debt		13,165,000	13,709,000
Total liabilities		169,525,000	152,355,000
EQUITY
Preferred stock		1,900,000	1,900,000
Common Shares, $1 par value; authorized 2,100,000,000 and 2,100,000,000 shares; issued 1,256,702,081 and 1,256,702,081 shares		1,257,000	1,257,000
Capital surplus		6,141,000	6,281,000
Retained earnings		14,133,000	12,751,000
Treasury stock, at cost (326,158,458 and 280,928,782 shares)		(5,876,000)	(4,946,000)
Accumulated other comprehensive income (loss)		(45,000)	738,000
Key shareholders’ equity		17,510,000	17,981,000
Total liabilities and equity		$ 187,035,000	$ 170,336,000

[1] Total loans held for sale include real estate — residential mortgage loans held for sale at fair value of $237 million at September 30, 2021, and $264 million at December 31, 2020.

XML

Consolidated Balance Sheets (Parenthetical) - USD ($)	Sep. 30, 2021	Dec. 31, 2020
Fair Value	$ 8,664,000,000	$ 8,023,000,000
Financing Receivable, Deferred Commitment Fee	361,000,000	449,000,000
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)	326,158,458	280,928,782
Residential Mortgage
Loans held for sale	$ 237,000,000	$ 264,000,000

XML

Consolidated Statements of Income - USD ($) shares in Thousands, $ in Millions		3 Months Ended		9 Months Ended
		Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
INTEREST INCOME
Loans		$ 882	$ 927	$ 2,659	$ 2,933
Loans held for sale		13	18	35	58
Securities available for sale		135	115	398	365
Held-to-maturity securities		43	53	133	171
Trading account assets		4	3	14	16
Short-term investments		9	1	20	14
Other investments		1	2	5	3
Total interest income		1,087	1,119	3,264	3,560
INTEREST EXPENSE
Deposits		15	54	52	319
Federal funds purchased and securities sold under repurchase agreements		0	0	0	6
Bank notes and other short-term borrowings		2	1	6	11
Long-term debt		54	64	168	225
Total interest expense		71	119	226	561
NET INTEREST INCOME		1,016	1,000	3,038	2,999
Provision for credit losses		(107)	160	(422)	1,001
Net interest income after provision for credit losses		1,123	840	3,460	1,998
NONINTEREST INCOME
Trust and investment services income		129	128	395	384
Investment banking and debt placement fees		235	146	614	418
Service charges on deposit accounts		91	77	247	229
Operating lease income and other leasing gains		37	38	111	128
Corporate services income		69	51	188	165
Cards and payments income		111	114	329	271
Corporate-owned life insurance income		33	30	94	101
Consumer mortgage income		33	51	106	133
Commercial mortgage servicing fees		34	18	112	48
Other income	[1]	25	28	89	(27)
Total noninterest income		797	681	2,285	1,850
NONINTEREST EXPENSE
Personnel		640	588	1,887	1,675
Net occupancy		74	76	225	223
Computer processing		67	59	211	170
Business services and professional fees		56	49	157	142
Equipment		25	25	75	74
Operating lease expense		30	33	95	103
Marketing		32	22	89	67
Intangible asset amortization		15	15	44	50
Other expense		173	170	476	477
Total noninterest expense		1,112	1,037	3,259	2,981
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		808	484	2,486	867
Income taxes		165	60	501	113
INCOME (LOSS) FROM CONTINUING OPERATIONS		643	424	1,985	754
Income (loss) from discontinued operations		2	4	11	7
NET INCOME (LOSS)		645	428	1,996	761
Less: Net income (loss) attributable to noncontrolling interests		0	0	0	0
NET INCOME (LOSS) ATTRIBUTABLE TO KEY		645	428	1,996	761
Income (loss) from continuing operations attributable to Key common shareholders		616	397	1,905	674
Net income (loss) attributable to Key common shareholders		$ 618	$ 401	$ 1,916	$ 681
Per Common Share:
Income (loss) from continuing operations attributable to Key common shareholders (in usd per share)		$ 0.65	$ 0.41	$ 1.99	$ 0.70
Income (loss) from discontinued operations, net of taxes (in usd per share)		0	0	0.01	0.01
Net income (loss) attributable to Key common shareholders (in usd per share)	[2]	0.66	0.41	2.00	0.70
Per Common Share — assuming dilution:
Income (loss) from continuing operations attributable to Key common shareholders (in usd per share)		0.65	0.41	1.98	0.69
Income (loss) from discontinued operations, net of taxes (in usd per share)		0	0	0.01	0.01
Net income (loss) attributable to Key common shareholders (in usd per share)	[2]	0.65	0.41	1.99	0.70
Cash dividends declared per common share (in usd per share)		$ 0.185	$ 0.185	$ 0.555	$ 0.555
Weighted-average common shares outstanding (000) (in shares)		942,446	967,804	955,069	967,632
Effect of common share options and other stock awards (in shares)		10,077	6,184	9,712	6,648
Weighted-average common shares and potential common shares outstanding (in shares)	[3]	952,523	973,988	964,781	974,280

[1] For the three and nine months ended September 30, 2021, net securities gains (losses) totaled less than $1 million. For the three months ended September 30, 2021 and September 30, 2020, we did not have any impairment losses related to securities. For the three months ended September 30, 2020, we had no net securities gains (losses). For the nine months ended September 30, 2020, net securities gains (losses) totaled $4 million.

[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.

XML

Consolidated Statements of Income (Parenthetical) - USD ($)	3 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Impairment losses related to securities	$ 0	$ 0
Maximum
Net securities gains (losses)	$ 1,000,000

XML

Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 645	$ 428	$ 1,996	$ 761
Other comprehensive income (loss), net of tax:
Net unrealized gains (losses) on securities available for sale, net of income taxes of $56, $(3), $195, and $163	(174)	(8)	(617)	527
Net unrealized gains (losses) on derivative financial instruments, net of income taxes of $9, $(19), $57, and $93	(29)	(64)	(180)	299
Net pension and postretirement benefit costs, net of income taxes of $(3), $1, $(5), and $5	8	3	14	15
Total other comprehensive income (loss), net of tax	(195)	(69)	(783)	841
Comprehensive income (loss)	450	359	1,213	1,602
Less: Comprehensive income attributable to noncontrolling interests	0	0	0	0
Comprehensive income (loss) attributable to Key	$ 450	$ 359	$ 1,213	$ 1,602

XML

Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Statement of Comprehensive Income [Abstract]
Net unrealized gains (losses) on securities available for sale, tax	$ 56	$ (3)	$ 195	$ 163
Net unrealized gains (losses) on derivative financial instruments, tax	9	(19)	57	93
Net pension and postretirement benefit costs, tax	$ (3)	$ 1	$ (5)	$ 5

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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 Earnings Series D Preferred Stock	Retained Earnings Series E Preferred Stock	Retained Earnings Series F Preferred Stock	Retained Earnings Series G Preferred Stock	Treasury Stock, at Cost	Accumulated Other Comprehensive Income (Loss)	Cumulative Effect, Period of Adoption, Adjustment	[1]	Cumulative Effect, Period of Adoption, Adjustment Retained Earnings	[1]
Beginning Balance, Preferred Shares (in shares) at Dec. 31, 2019						1,396,000
Beginning Balance, Common Shares (in shares) at Dec. 31, 2019							977,189,000
Beginning balance at Dec. 31, 2019	$ 17,038					$ 1,900	$ 1,257	$ 6,295	$ 12,469					$ (4,909)	$ 26	$ (230)		$ (230)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	761								761
Other comprehensive income (loss)	841														841
Deferred compensation	2							2
Cash dividends declared on common shares	(542)								(542)
Cash dividends declared on preferred stock		$ (20)	$ (23)	$ (18)	$ (19)					$ (20)	$ (23)	$ (18)	$ (19)
Open market Common Share repurchases (in shares)							(6,067,000)
Open market Common Share repurchases	(117)													(117)
Employee equity compensation program Common Share repurchases (in shares)							(1,815,000)
Employee equity compensation program Common Share repurchases	(70)							(34)						(36)
Common shares reissued (returned) for stock options and other employee benefit plans (in shares)							6,898,000
Common shares reissued (returned) for stock options and other employee benefit plans	122													122
Other	(3)								(3)
Ending Balance, Preferred Shares (in shares) at Sep. 30, 2020						1,396,000
Ending Balance, Common Shares (in shares) at Sep. 30, 2020							976,205,000
Ending balance at Sep. 30, 2020	17,722					$ 1,900	$ 1,257	6,263	12,375					(4,940)	867
Beginning Balance, Preferred Shares (in shares) at Jun. 30, 2020						1,396,000
Beginning Balance, Common Shares (in shares) at Jun. 30, 2020							975,947,000
Beginning balance at Jun. 30, 2020	17,542					$ 1,900	$ 1,257	6,240	12,154					(4,945)	936
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	428								428
Other comprehensive income (loss)	(69)														(69)
Deferred compensation	2							2
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)							0
Open market Common Share repurchases	0													0
Employee equity compensation program Common Share repurchases (in shares)							(1,000)
Employee equity compensation program Common Share repurchases	21							21						0
Common shares reissued (returned) for stock options and other employee benefit plans (in shares)							259,000
Common shares reissued (returned) for stock options and other employee benefit plans	5							0						5
Ending Balance, Preferred Shares (in shares) at Sep. 30, 2020						1,396,000
Ending Balance, Common Shares (in shares) at Sep. 30, 2020							976,205,000
Ending balance at Sep. 30, 2020	17,722					$ 1,900	$ 1,257	6,263	12,375					(4,940)	867
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)	1,996								1,996
Other comprehensive income (loss)	(783)														(783)
Deferred compensation	5							5
Cash dividends declared on common shares	(534)								(534)
Cash dividends declared on preferred stock		$ (20)	$ (23)	$ (18)	$ (19)					(20)	(23)	(18)	(19)
Open market Common Share repurchases (in shares)							(27,346,000)
Open market Common Share repurchases	(559)													(559)
Employee equity compensation program Common Share repurchases (in shares)							(1,604,000)
Employee equity compensation program Common Share repurchases	(32)													(32)
Common shares reissued (returned) for stock options and other employee benefit plans (in shares)							7,274,000
Common shares reissued (returned) for stock options and other employee benefit plans	101							(28)						129
Common share purchases under accelerated repurchase program (in shares)							(23,553,000)
Common share purchases under ASR program	(585)							(117)						(468)
Ending Balance, Preferred Shares (in shares) at Sep. 30, 2021		21,000	500,000	425,000	450,000	1,396,000
Ending Balance, Common Shares (in shares) at Sep. 30, 2021							930,544,000
Ending balance at Sep. 30, 2021	17,510					$ 1,900	$ 1,257	6,141	14,133					(5,876)	(45)
Beginning Balance, Preferred Shares (in shares) at Jun. 30, 2021						1,396,000
Beginning Balance, Common Shares (in shares) at Jun. 30, 2021							960,276,000
Beginning balance at Jun. 30, 2021	17,941					$ 1,900	$ 1,257	6,232	13,689					(5,287)	150
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	645								645
Other comprehensive income (loss)	(195)														(195)
Deferred compensation	5							5
Cash dividends declared on common shares	(176)								(176)
Cash dividends declared on preferred stock		$ (6)	$ (7)	$ (7)	$ (5)					$ (6)	$ (7)	$ (7)	$ (5)
Open market Common Share repurchases (in shares)							(6,367,000)
Open market Common Share repurchases	(125)													(125)
Employee equity compensation program Common Share repurchases (in shares)							(3,000)
Employee equity compensation program Common Share repurchases	0							0						0
Common shares reissued (returned) for stock options and other employee benefit plans (in shares)							191,000
Common shares reissued (returned) for stock options and other employee benefit plans	25							21						4
Common share purchases under accelerated repurchase program (in shares)							(23,553,000)
Common share purchases under ASR program	(585)							(117)						(468)
Ending Balance, Preferred Shares (in shares) at Sep. 30, 2021		21,000	500,000	425,000	450,000	1,396,000
Ending Balance, Common Shares (in shares) at Sep. 30, 2021							930,544,000
Ending balance at Sep. 30, 2021	$ 17,510					$ 1,900	$ 1,257	$ 6,141	$ 14,133					$ (5,876)	$ (45)

[1] Includes the impact of implementing ASU 2016-13, Financial Instruments - Credit Losses (ASC 326): Measurement of Credit Losses on Financial Instruments. See Note 1 (“Summary of Significant Accounting Policies) in our 2020 Form 10-K for more information on our adoption of this guidance and the impact to our results of operations.

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Consolidated Statements of Changes in Equity (Parenthetical) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Cash dividends declared on Common Shares (in usd per share)	$ 0.185	$ 0.185	$ 0.555	$ 0.555
Series D Preferred Stock
Cash dividends declared on Preferred Stock (in usd per share)	12.50	12.50	37.50	37.50
Series E Preferred Stock
Cash dividends declared on Preferred Stock (in usd per share)	0.382813	0.382813	1.148439	1.148439
Series F Preferred Stock
Cash dividends declared on Preferred Stock (in usd per share)	0.353125	0.353125	1.059375	1.059375
Series G Preferred Stock
Cash dividends declared on Preferred Stock (in usd per share)	$ 0.351563	$ 0.53125	$ 1.054689	$ 1.054689

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Consolidated Statements of Cash Flows - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
OPERATING ACTIVITIES
Net income (loss)	$ 1,996	$ 761
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Provision for credit losses	(422)	1,001
Depreciation and amortization expense, net	80	112
Accretion of acquired loans	19	23
Increase in cash surrender value of corporate-owned life insurance	(82)	(86)
Stock-based compensation expense	78	75
Deferred income taxes (benefit)	126	(217)
Proceeds from sales of loans held for sale	11,282	10,079
Originations of loans held for sale, net of repayments	(10,818)	(10,040)
Net losses (gains) on sales of loans held for sale	(192)	(169)
Net losses (gains) on leased equipment	(9)	(17)
Net securities losses (gains)	0	(4)
Net losses (gains) on sales of fixed assets	13	3
Net decrease (increase) in trading account assets	(167)	307
Net transfers of loans held for sale	26	0
Other operating activities, net	(767)	(1,101)
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES	1,163	727
INVESTING ACTIVITIES
Cash received (used) in acquisitions, net of cash acquired	(9)	0
Net decrease (increase) in short-term investments, excluding acquisitions	(3,414)	(12,876)
Purchases of securities available for sale	(19,726)	(9,582)
Proceeds from sales of securities available for sale	0	583
Proceeds from prepayments and maturities of securities available for sale	5,824	4,642
Proceeds from prepayments and maturities of held-to-maturity securities	2,004	1,702
Purchases of held-to-maturity securities	(3)	(17)
Purchases of other investments	(26)	(110)
Proceeds from sales of other investments	36	79
Proceeds from prepayments and maturities of other investments	8	13
Net decrease (increase) in loans, excluding acquisitions, sales and transfers	(545)	(9,118)
Proceeds from sales of portfolio loans	(243)
Proceeds from sales of portfolio loans		140
Proceeds from corporate-owned life insurance	56	46
Purchases of premises, equipment, and software	(31)	(45)
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES	(16,069)	(24,543)
FINANCING ACTIVITIES
Net increase (decrease) in deposits, excluding acquisitions	16,649	24,876
Net increase (decrease) in short-term borrowings	16	(61)
Net proceeds from issuance of long-term debt	1,203	2,502
Payments on long-term debt	(1,521)	(2,509)
Open market common share repurchases	(559)	(117)
Employee equity compensation program Common Share repurchases	(32)	(36)
Common share purchases under ASR program	(585)	0
Net proceeds from reissuance of Common Shares	21	7
Cash dividends paid	(614)	(622)
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES	14,578	24,040
NET INCREASE (DECREASE) IN CASH AND DUE FROM BANKS	(328)	224
CASH AND DUE FROM BANKS AT BEGINNING OF PERIOD	1,091	732
CASH AND DUE FROM BANKS AT END OF PERIOD	763	956
Additional disclosures relative to cash flows:
Interest paid	254	601
Income taxes paid (refunded)	212	175
Noncash items:
Reduction of secured borrowing and related collateral	7	5
Loans transferred to portfolio from held for sale	86	32
Loans transferred to held for sale from portfolio	3,403	292
Loans transferred to OREO	3	94
CMBS risk retentions	0	41
ABS risk retentions	13	22
Securities received as consideration	$ 2,825	$ 0

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Basis of Presentation and Accounting Policies

9 Months Ended

Sep. 30, 2021

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 2020 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.

Goodwill and Other Intangible Assets

Effective January 1, 2021, Key changed its approach for allocating equity to its reporting units. The carrying amounts of Key’s reporting units now represent the combination of regulatory and economic equity for goodwill impairment testing and management reporting purposes. The fair values of each reporting unit are estimated using a combination of market and income approaches. For more information, refer to Note 10 (“Goodwill”).

Accounting Guidance Adopted in 2021

Standard	Required Adoption	Description	Effect on Financial Statements or Other Significant Matters
ASU 2019-12, Simplifying the Accounting for Income Taxes	January 1, 2021	This ASU simplifies the accounting for income taxes by removing certain exceptions to the existing guidance, such as exceptions related to the incremental approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period when a year-to-date loss exceeds the anticipated loss, and the recognition of deferred tax liabilities when a foreign subsidiary becomes an equity method investment and when a foreign equity method investment becomes a subsidiary. Along with general improvements, it adds simplifications related to franchise taxes, the tax basis of goodwill, and the method for recognizing an enacted change in tax laws. The guidance also specifies that an entity is not required to allocate the consolidated amount of certain tax expense to a legal entity not subject to tax in its own separate financial statements. The guidance should be applied on either a retrospective, modified retrospective, or prospective basis depending on the amendment.	The adoption of this accounting guidance did not have a material effect on our financial condition or results of operations.
ASU 2020-01, Clarifying the Interactions between Topic 321,Investments —Equity Securities; Topic 323, Investments— Equity Method and Joint Ventures; and Topic 815, Derivatives and Hedging	January 1, 2021	This guidance clarifies that when applying the measurement alternative in Topic 321, companies should consider certain observable transactions that require the application or discontinuance of the equity method under Topic 323. It also clarifies that companies should not consider whether the underlying securities in certain forward contracts and purchased options would be accounted for under the equity method or fair value option when determining the method of accounting for those contracts. This guidance should be applied on prospective basis.	The adoption of this accounting guidance did not have a material effect on our financial condition or results of operations.
ASU 2020-08, Codification Improvements to Subtopic 310-20, Receivables—Nonrefundable Fees and Other Costs	January 1, 2021	This ASU clarifies that at each reporting period an entity should reevaluate whether a callable debt security is within the scope of ASC 310, which says that to the extent the amortized cost basis of an individual callable debt security exceeds the amount repayable by the issuer at the earliest call date, the premium shall be amortized to the earliest call date, unless prepayment guidance is applied. This guidance should be applied on a prospective basis.	The adoption of this accounting guidance did not have a material effect on our financial condition or results of operations.
ASU 2021-01, Reference Rate Reform (Topic 848)	January 1, 2021	The ASU clarifies that certain optional expedients and exceptions related to contracts modified as a result of reference rate reform and hedge accounting apply to derivatives affected by the discounting transition, such as those that use an interest rate for margining, discounting, or contract price alignment. The guidance may be applied on a full retrospective basis as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020. Alternatively, it may be applied on a prospective basis to new modifications from any date within an interim period that includes or is subsequent to the date of the issuance of a final Update, until the financial statements are available to be issued.	Key adopted this guidance on January 1, 2021, on a prospective basis and will assess the impact in conjunction with the reference rate transition.

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Earnings Per Common Share

9 Months Ended

Sep. 30, 2021

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 September 30,				Nine months ended September 30,
Dollars in millions, except per share amounts	2021		2020		2021		2020
EARNINGS
Income (loss) from continuing operations	$	643	$	424	$	1,985	$	754
Less: Net income (loss) attributable to noncontrolling interests	—		—		—		—
Income (loss) from continuing operations attributable to Key	643		424		1,985		754
Less: Dividends on Preferred Stock	27		27		80		80
Income (loss) from continuing operations attributable to Key common shareholders	616		397		1,905		674
Income (loss) from discontinued operations, net of taxes	2		4		11		7
Net income (loss) attributable to Key common shareholders	$	618	$	401	$	1,916	$	681
WEIGHTED-AVERAGE COMMON SHARES
Weighted-average Common Shares outstanding (000)	942,446		967,804		955,069		967,632
Effect of Common Share options and other stock awards	10,077		6,184		9,712		6,648
Weighted-average Common Shares and potential Common Shares outstanding (000) (a)	952,523		973,988		964,781		974,280
EARNINGS PER COMMON SHARE
Income (loss) from continuing operations attributable to Key common shareholders	$	.65	$	.41	$	1.99	$	.70
Income (loss) from discontinued operations, net of taxes	—		—		.01		.01
Net income (loss) attributable to Key common shareholders (b)	.66		.41		2.00		.70
Income (loss) from continuing operations attributable to Key common shareholders — assuming dilution	$	.65	$	.41	$	1.98	$	.69
Income (loss) from discontinued operations, net of taxes — assuming dilution	—		—		.01		.01
Net income (loss) attributable to Key common shareholders — assuming dilution (b)	.65		.41		1.99		.70

(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.

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Loan Portfolio

9 Months Ended

Sep. 30, 2021

Loans Receivables [Abstract]

Loan Portfolio

3. Loan Portfolio

Loan Portfolio by Portfolio Segment and Financing Receivable (a)

Dollars in millions	September 30, 2021		December 31, 2020
Commercial and industrial (b)	$	49,553	$	52,907
Commercial real estate:
Commercial mortgage	13,674		12,687
Construction	2,120		1,987
Total commercial real estate loans	15,794		14,674
Commercial lease financing (c)	3,982		4,399
Total commercial loans	69,329		71,980
Residential — prime loans:
Real estate — residential mortgage	14,204		9,298
Home equity loans	8,747		9,360
Total residential — prime loans	22,951		18,658
Consumer direct loans	5,324		4,714
Credit cards	928		989
Consumer indirect loans	77		4,844
Total consumer loans	29,280		29,205
Total loans (d)	$	98,609	$	101,185

(a)Accrued interest of $211 million and $241 million at September 30, 2021, and December 31, 2020, 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 $139 million and $127 million of commercial credit card balances at September 30, 2021, and December 31, 2020, respectively.

(c)Commercial lease financing includes receivables held as collateral for a secured borrowing of $16 million and $23 million at September 30, 2021, and December 31, 2020, 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 171 of our 2020 Form 10-K.

(d)Total loans exclude loans of $602 million at September 30, 2021, and $710 million at December 31, 2020, related to the discontinued operations of the education lending business.

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Asset Quality

9 Months Ended

Sep. 30, 2021

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 110 of our 2020 Form 10-K.

The ALLL at September 30, 2021, 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 September 30, 2021:

Dollars in millions	June 30, 2021		Provision		Charge-offs		Recoveries		September 30, 2021
Commercial and Industrial	$	499	$	(30)	$	(27)	$	20	$	462
Commercial real estate:
Real estate — commercial mortgage	227		(44)		—		1		184
Real estate — construction	35		(8)		—		—		27
Total commercial real estate loans	262		(52)		—		1		211
Commercial lease financing	34		(7)		(1)		6		32
Total commercial loans	795		(89)		(28)		27		705
Real estate — residential mortgage	86		(1)		2		1		88
Home equity loans	136		(13)		(1)		2		124
Consumer direct loans	115		(5)		(7)		2		105
Credit cards	68		(4)		(6)		1		59
Consumer indirect loans	20		5		(26)		4		3
Total consumer loans	425		(18)		(38)		10		379
Total ALLL — continuing operations	1,220		(107)		(66)		37		1,084
Discontinued operations	30		(1)		(1)		1		29
Total ALLL — including discontinued operations	$	1,250	$	(108)	$	(67)	$	38	$	1,113

Three months ended September 30, 2020:

Dollars in millions	June 30, 2020		Provision			Charge-offs		Recoveries		September 30, 2020
Commercial and Industrial	$	725	$	177		$	(101)	$	9	$	810
Commercial real estate:
Real estate — commercial mortgage	292		(2)			(13)		2		279
Real estate — construction	41		(7)			—		—		34
Total commercial real estate loans	333		(9)			(13)		2		313
Commercial lease financing	55		13			(10)		—		58
Total commercial loans	1,113		181			(124)		11		1,181
Real estate — residential mortgage	101		2			—		1		104
Home equity loans	197		(13)			(4)		3		183
Consumer direct loans	130		1			(8)		2		125
Credit cards	107		(5)			(9)		2		95
Consumer indirect loans	60		(16)			(6)		4		42
Total consumer loans	595		(31)			(27)		12		549
Total ALLL — continuing operations	1,708		150		(a)	(151)		23		1,730
Discontinued operations	43		(1)			—		—		42
Total ALLL — including discontinued operations	$	1,751	$	149		$	(151)	$	23	$	1,772

(a)Excludes a provision for losses on lending-related commitments of $10 million.

Nine months ended September 30, 2021

Dollars in millions	December 31, 2020		Provision			Charge-offs		Recoveries		September 30, 2021
Commercial and Industrial	$	678	$	(135)		$	(141)	$	60	$	462
Commercial real estate:
Real estate — commercial mortgage	327		(112)			(39)		8		184
Real estate — construction	47		(20)			—		—		27
Total commercial real estate loans	374		(132)			—		—		211
Commercial lease financing	47		(17)			(5)		7		32
Total commercial loans	1,099		(284)			(185)		75		705
Real estate — residential mortgage	102		(17)			1		2		88
Home equity loans	171		(44)			(7)		4		124
Consumer direct loans	128		(7)			(22)		6		105
Credit cards	87		(13)			(21)		6		59
Consumer indirect loans	39		(12)			(38)		14		3
Total consumer loans	527		(93)			(87)		32		379
Total ALLL — continuing operations	1,626		(377)		(a)	(272)		107		1,084
Discontinued operations	36		(6)			(3)		2		29
Total ALLL — including discontinued operations	$	1,662	$	(383)		$	(275)	$	109	$	1,113

(a)Excludes a credit for losses on lending-related commitments of $45 million

Nine months ended September 30, 2020

Dollars in millions	December 31, 2019		Impact of ASC 326 Adoption		January 1, 2020		Provision			Charge-offs		Recoveries		September 30, 2020
Commercial and Industrial	$	551	$	(141)	$	410	$	613		$	(232)	$	19	$	810
Commercial real estate:
Real estate — commercial mortgage	143		16		159		135			(18)		3		279
Real estate — construction	22		(7)		15		19			—		—		34
Total commercial real estate loans	165		9		174		154			(18)		3		313
Commercial lease financing	35		8		43		30			(16)		1		58
Total commercial loans	751		(124)		627		797			(266)		23		1,181
Real estate — residential mortgage	7		77		84		21			(2)		1		104
Home equity loans	31		147		178		9			(10)		6		183
Consumer direct loans	34		63		97		52			(30)		6		125
Credit cards	47		35		82		39			(32)		6		95
Consumer indirect loans	30		6		36		16			(22)		12		42
Total consumer loans	149		328		477		137			(96)		31		549
Total ALLL — continuing operations	900		204		1,104		934		(a)	(362)		54		1,730
Discontinued operations	10		31		41		2			(4)		3		42
Total ALLL — including discontinued operations	$	910	$	235	$	1,145	$	936		$	(366)	$	57	$	1,772

(a)Excludes a provision for losses on lending-related commitments of $67 million.

As described in Note 1 ("Summary of Significant Accounting Policies"), under the heading “Allowance for Loan and Lease Losses” beginning on page 110 of our 2020 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, 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 September 30, 2021, the economic outlook continues to be strong, but the emergence of the Delta variant of the COVID-19 virus negatively impacted supply chains and consumer confidence. We utilized the Moody’s August 2021 Consensus forecast as our baseline forecast to estimate our expected credit losses as of September 30, 2021. 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 increase at an 8.2% annualized rate in the third quarter of 2021 and at an annual rate of approximately 6% and 5% for 2021 and 2022, respectively. The national unemployment rate forecast is 5.3% in the third quarter of 2021, and is expected to decline to 4.7% by the fourth quarter of 2021 and 4.0% by the fourth quarter of 2022.

To the extent we identified credit risk considerations that were not captured by the third-party economic forecast, we addressed the risk through management’s qualitative adjustments to the ALLL.

As a result of the unprecedented economic uncertainty caused by the COVID-19 pandemic, our future loss estimates may vary considerably from our September 30, 2021 assumptions.

Commercial Loan Portfolio

The ALLL from continuing operations for the commercial segment decreased by $90 million, or 11.3%, from June 30, 2021. The overall decrease in the allowance is driven by improvements in economic forecasts and asset quality, partially offset by loan growth.

The changes to the economic forecast primarily reflect improvements in economic drivers used in our models. The favorable unemployment and GDP outlook contributes to the overall commercial segment reserve decrease. Expected improvements in real estate price indices lead to a reduction in reserve for our commercial real estate book. Positive risk rating migrations are driving a modest decrease in ALLL levels for the commercial and industrial portfolio. The ALLL results also reflect incremental credit risk considerations as a result of the future economic uncertainties which are addressed through qualitative adjustments.

As of September 30, 2021, we concluded that no ALLL is necessary for $3.1 billion in outstanding PPP loans as they are 100% guaranteed by the SBA.

Consumer Loan Portfolio

The ALLL from continuing operations for the consumer segment decreased by $46 million, or 10.8%, from June 30, 2021. The overall decrease in the allowance is driven by updated economic forecasts that capture an improving outlook for several drivers and strong portfolio performance, partially offset by growth in consumer real estate.

The most meaningful changes to the economic forecast contributing to the reduction in reserves include improvement in the unemployment rate outlook, which impacts all consumer portfolios. In addition, the housing market and home price index outlook continue to display strength, which impacts the residential mortgage and home equity segments. As it relates to the decline in the ALLL due to portfolio factors, shifts are largely driven by attrition activity, targeted portfolio growth and overall strong credit drivers. The ALLL results also reflect incremental credit risk considerations as a result of the economic uncertainty and related borrower assistance programs, which are addressed through qualitative adjustments.

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 September 30, 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	$	9,315	$	5,420	$	4,491	$	3,186	$	2,016	$	3,884	$	18,950	$	102	$	47,364
Criticized (Accruing)	40		115		193		192		236		208		925		27		1,936
Criticized (Nonaccruing)	—		9		18		41		6		16		160		3		253
Total commercial and industrial	9,355		5,544		4,702		3,419		2,258		4,108		20,035		132		49,553
Real estate — commercial mortgage
Risk Rating:
Pass	3,219		1,357		2,589		1,338		687		3,073		690		64		13,017
Criticized (Accruing)	15		20		87		85		123		228		48		2		608
Criticized (Nonaccruing)	—		1		1		5		1		37		4		—		49
Total real estate — commercial mortgage	3,234		1,378		2,677		1,428		811		3,338		742		66		13,674
Real estate — construction
Risk Rating:
Pass	318		619		610		292		104		49		29		6		2,027
Criticized (Accruing)	—		4		13		52		22		1		1		—		93
Criticized (Nonaccruing)	—		—		—		—		—		—		—		—		—
Total real estate — construction	318		623		623		344		126		50		30		6		2,120
Commercial lease financing
Risk Rating:
Pass	655		815		744		348		347		997		—		—		3,906
Criticized (Accruing)	—		4		35		14		13		5		—		—		71
Criticized (Nonaccruing)	—		—		1		1		1		2		—		—		5
Total commercial lease financing	655		819		780		363		361		1,004				—		3,982
Total commercial loans	$	13,562	$	8,364	$	8,782	$	5,554	$	3,556	$	8,500	$	20,807	$	204	$	69,329

As of December 31, 2020	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	2020		2019		2018		2017		2016		Prior						Total
Commercial and Industrial
Risk Rating:
Pass	$	13,100	$	5,487	$	4,040	$	2,617	$	1,967	$	2,709	$	19,832	$	118	$	49,870
Criticized (Accruing)	66		198		174		236		150		279		1,527		22		2,652
Criticized (Nonaccruing)	8		27		71		28		17		7		226		1		385
Total commercial and industrial	13,174		5,712		4,285		2,881		2,134		2,995		21,585		141		52,907
Real estate — commercial mortgage
Risk Rating:
Pass	1,591		2,937		1,737		867		765		3,027		885		43		11,852
Criticized (Accruing)	12		142		81		145		72		255		22		2		731
Criticized (Nonaccruing)	—		1		4		4		2		88		5		—		104
Total real estate — commercial mortgage	1,603		3,080		1,822		1,016		839		3,370		912		45		12,687
Real estate — construction
Risk Rating:
Pass	367		764		510		188		27		22		31		5		1,914
Criticized (Accruing)	—		14		38		18		—		2		1		—		73
Criticized (Nonaccruing)	—		—		—		—		—		—		—		—		—
Total real estate — construction	367		778		548		206		27		24		32		5		1,987
Commercial lease financing
Risk Rating:
Pass	1,076		1,050		534		504		228		901		—		—		4,293
Criticized (Accruing)	10		35		15		26		7		4		—		—		97
Criticized (Nonaccruing)	—		2		2		2		2		1		—		—		9
Total commercial lease financing	1,086		1,087		551		532		237		906		—		—		4,399
Total commercial loans	$	16,230	$	10,657	$	7,206	$	4,635	$	3,237	$	7,295	$	22,529	$	191	$	71,980

(a)Accrued interest of $117 million and $140 million as of September 30, 2021 and December 31, 2020, 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 September 30, 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	$	6,071	$	3,150	$	933	$	104	$	141	$	1,218	—		—		$	11,617
660 to 749	1,300		407		186		47		31		323		—		—		2,294
Less than 660	23		12		19		16		10		151		—		—		231
No Score	19		1		1		2		4		34		1		—		62
Total real estate — residential mortgage	7,413		3,570		1,139		169		186		1,726		1		—		14,204
Home equity loans
FICO Score:
750 and above	919		885		285		113		139		739		$	2,333	$	462	5,875
660 to 749	345		295		130		49		47		222		1,037		158		2,283
Less than 660	20		26		20		14		15		99		336		48		578
No Score	—		2		—		1		—		2		5		1		11
Total home equity loans	1,284		1,208		435		177		201		1,062		3,711		669		8,747
Consumer direct loans
FICO Score:
750 and above	1,287		1,271		594		76		20		137		109		—		3,494
660 to 749	413		350		200		51		13		48		217		—		1,292
Less than 660	19		22		29		12		3		14		61		—		160
No Score	47		45		32		16		9		21		208		—		378
Total consumer direct loans	1,766		1,688		855		155		45		220		595		—		5,324
Credit cards
FICO Score:
750 and above	—		—		—		—		—		—		472		—		472
660 to 749	—		—		—		—		—		—		375		—		375
Less than 660	—		—		—		—		—		—		72		—		72
No Score	—		—		—		—		—		—		9		—		9
Total credit cards	—		—		—		—		—		—		928		—		928
Consumer indirect loans
FICO Score:
750 and above	4		—		—		—		—		36		—		—		40
660 to 749	—		—		—		—		—		26		—		—		26
Less than 660	—		—		—		—		—		11		—		—		11
No Score	—		—		—		—		—		—		—		—		—
Total consumer indirect loans	4		—		—		—		—		73		—		—		77
Total consumer loans	$	10,467	$	6,466	$	2,429	$	501	$	432	$	3,081	$	5,235	$	669	$	29,280

As of December 31, 2020	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	2020		2019		2018		2017		2016		Prior						Total
Real estate — residential mortgage
FICO Score:
750 and above	$	3,595	$	1,620	$	194	$	254	$	537	$	1,211	—		—		$	7,411
660 to 749	710		284		76		48		100		332		—		—		1,550
Less than 660	16		28		21		10		26		170		—		—		271
No Score	1		2		2		7		2		52		—		—		66
Total real estate — residential mortgage	4,322		1,934		293		319		665		1,765		—		—		9,298
Home equity loans
FICO Score:
750 and above	1,043		404		168		202		190		839		$	2,689	$	590	6,125
660 to 749	385		198		82		77		69		253		1,237		206		2,507
Less than 660	27		30		18		20		20		113		426		61		715
No Score	2		2		1		—		—		2		5		1		13
Total home equity loans	1,457		634		269		299		279		1,207		4,357		858		9,360
Consumer direct loans
FICO Score:
750 and above	1,840		883		115		32		16		57		119		—		3,062
660 to 749	479		268		80		22		14		33		254		1		1,151
Less than 660	23		37		21		8		5		10		81		—		185
No Score	65		35		21		21		10		11		153		—		316
Total consumer direct loans	2,407		1,223		237		83		45		111		607		1		4,714
Credit cards
FICO Score:
750 and above	—		—		—		—		—		—		488		—		488
660 to 749	—		—		—		—		—		—		407		—		407
Less than 660	—		—		—		—		—		—		93		—		93
No Score	—		—		—		—		—		—		1		—		1
Total credit cards	—		—		—		—		—		—		989		—		989
Consumer indirect loans
FICO Score:
750 and above	1,092		924		369		188		69		66		—		—		2,708
660 to 749	653		558		232		97		36		47		—		—		1,623
Less than 660	143		163		99		54		25		28		—		—		512
No Score	1		—		—		—		—		—		—		—		1
Total consumer indirect loans	1,889		1,645		700		339		130		141		—		—		4,844
Total consumer loans	$	10,075	$	5,436	$	1,499	$	1,040	$	1,119	$	3,224	$	5,953	$	859	$	29,205

(a)Accrued interest of $95 million and $101 million as of September 30, 2021 and December 31, 2020, 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 2020 Form 10-K.

Under the CARES Act as well as banking regulator interagency guidance, certain loan modifications to borrowers experiencing financial distress as a result of the economic impacts created by the COVID-19 pandemic may not be required to be reported as past due. For COVID-19 related loan modifications which occurred from March 1, 2020, through September 30, 2021, and met the loan modification criteria under either the CARES Act or the criteria specified by the regulatory agencies, we have elected to re-age to current status all commercial loans and consumer loans that are not secured by real-estate and freeze the delinquency status of consumer real estate secured loans as of the modification or forbearance grant date. At September 30, 2021, the portfolio loans and leases in active deferral or forebearance as part of our COVID-19 hardship relief programs totaled $174 million, of which $124 million of loan modifications and forbearances made under the criteria of either the CARES Act, banking regulator interagency guidance, or short-term forbearance policies were not reported as nonperforming.

The following aging analysis of past due and current loans as of September 30, 2021, and December 31, 2020, provides further information regarding Key’s credit exposure.

Aging Analysis of Loan Portfolio(a)

September 30, 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	$	49,161	$	56	$	33	$	50	$	253	$	392	$	49,553
Commercial real estate:
Commercial mortgage	13,606		12		2		5		49		68		13,674
Construction	2,118		1		—		1		—		2		2,120
Total commercial real estate loans	15,724		13		2		6		49		70		15,794
Commercial lease financing	3,973		2		1		1		5		9		3,982
Total commercial loans	$	68,858	$	71	$	36	$	57	$	307	$	471	$	69,329
Real estate — residential mortgage	$	14,096	$	6	$	3	$	6	$	93	$	108	$	14,204
Home equity loans	8,559		22		10		10		146		188		8,747
Consumer direct loans	5,307		6		3		4		4		17		5,324
Credit cards	914		3		3		5		3		14		928
Consumer indirect loans	75		1		—		—		1		2		77
Total consumer loans	$	28,951	$	38	$	19	$	25	$	247	$	329	$	29,280
Total loans	$	97,809	$	109	$	55	$	82	$	554	$	800	$	98,609

(a)Amounts in table represent amortized cost and exclude loans held for sale.

(b)Accrued interest of $211 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.

December 31, 2020	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	$	52,396	$	36	$	50	$	40	$	385	$	511	$	52,907
Commercial real estate:
Commercial mortgage	12,548		9		5		21		104		139		12,687
Construction	1,986		—		—		1		—		1		1,987
Total commercial real estate loans	14,534		9		5		22		104		140		14,674
Commercial lease financing	4,369		21		1		—		8		30		4,399
Total commercial loans	$	71,299	$	66	$	56	$	62	$	497	$	681	$	71,980
Real estate — residential mortgage	$	9,173	$	11	$	3	$	1	$	110	$	125	$	9,298
Home equity loans	9,143		34		20		9		154		217		9,360
Consumer direct loans	4,694		7		4		4		5		20		4,714
Credit cards	972		5		3		7		2		17		989
Consumer indirect loans	4,792		25		7		3		17		52		4,844
Total consumer loans	$	28,774	$	82	$	37	$	24	$	288	$	431	$	29,205
Total loans	$	100,073	$	148	$	93	$	86	$	785	$	1,112	$	101,185

(a)Amounts in table represent amortized cost and exclude loans held for sale.

(b)Accrued interest of $241 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 September 30, 2021, the approximate carrying amount of our commercial nonperforming loans outstanding represented 62% of their original contractual amount owed, total nonperforming loans outstanding represented 72% of their original contractual amount owed, and nonperforming assets in total were carried at 77% of their original contractual amount owed.

Nonperforming loans reduced expected interest income by $6 million and $20 million for the three and nine months ended September 30, 2021,respectively, and $7 million and $20 million for the three and nine months ended September 30, 2020, respectively.

The amortized cost basis of nonperforming loans on nonaccrual status for which there is no related allowance for credit losses was $492 million at September 30, 2021.

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 commercial machinery, commercial properties, and commercial real estate construction projects. 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 September 30, 2021.

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. Under the CARES Act as well as banking regulator interagency guidance, certain loan modifications to borrowers experiencing financial distress as a result of the economic impacts created by the COVID-19 pandemic may not be required to be treated as TDRs under U.S. GAAP.  As of September 30, 2021, the outstanding balance of loans that underwent COVID-19 related loan modifications for which we elected to suspend TDR accounting as such loan modifications met the criteria under either the CARES Act or banking regulator interagency guidance totaled $124 million. 

Commitments outstanding to lend additional funds to borrowers whose loan terms have been modified in TDRs were $21 million and $1 million at September 30, 2021, and December 31, 2020, 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 September 30, 2021, and December 31, 2020, the recorded investment of consumer residential mortgage loans in the process of foreclosure was approximately $70 million and $92 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 September 30,				Nine Months Ended September 30,
Dollars in millions	2021		2020		2021		2020
Commercial loans:
Extension of Maturity Date	$	—	$	—	$	5	$	8
Payment or Covenant Modification/Deferment	—		—		7		—
Bankruptcy Plan Modification	—		—		—		—
Increase in new commitment or new money	—		—		—		—
Total	$	—	$	—	$	12	$	8
Consumer loans:
Interest rate reduction	$	3	$	13	$	6	$	22
Other	12		6		18		18
Total	$	15	$	19	$	24	$	40
Total TDRs	$	15	$	19	$	36	$	48

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 September 30,				Nine Months Ended September 30,
Dollars in millions	2021		2020		2021		2020
Balance at beginning of the period	$	334	$	310	$	363	$	347
Additions	17		26		98		65
Payments	(81)		(22)		(162)		(75)
Charge-offs	—		(8)		(29)		(31)
Balance at end of period	$	270	$	306	$	270	$	306

A further breakdown of TDRs included in nonperforming loans by loan category for the periods indicated are as follows:

	September 30, 2021					December 31, 2020
	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	35	$	92	$	53	66	$	136	$	92
Commercial real estate:
Commercial mortgage	3	50		29		7	62		50
Total commercial real estate loans	3	50		29		7	62		50
Total commercial loans	38	142		82		73	198		142
Real estate — residential mortgage	218	26		25		258	35		34
Home equity loans	569	38		33		630	41		37
Consumer direct loans	201	3		3		212	3		3
Credit cards	328	2		2		356	2		2
Consumer indirect loans	23	1		1		861	15		11
Total consumer loans	1,339	70		64		2,317	96		87
Total nonperforming TDRs	1,377	212		146		2,390	294		229
Prior-year accruing:(a)
Commercial and industrial	7	49		26		3	5		—
Commercial real estate
Commercial mortgage	1	—		—		—	—		—
Total commercial real estate loans	1	—		—		—	—		—
Total commercial loans	8	49		26		3	5		—
Real estate — residential mortgage	464	39		34		485	37		31
Home equity loans	1,648	100		78		1,781	106		83
Consumer direct loans	206	5		3		163	4		3
Credit cards	564	4		1		536	3		1
Consumer indirect loans	150	16		8		775	29		16
Total consumer loans	3,032	164		124		3,740	179		134
Total prior-year accruing TDRs	3,040	163		124		3,743	184		134
Total TDRs	4,417	$	375	$	270	6,133	$	478	$	363

(a)All TDRs that were restructured prior to January 1, 2021, and January 1, 2020, 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 September 30, 2021, there were two commercial loan TDRs and 33 consumer loan TDRs with a combined recorded investment of $2 million that experienced payment defaults after modifications resulting in TDR status during 2020. During the three months ended September 30, 2020, there were no commercial loan TDRs and 33 consumer loan TDRs with a combined recorded investment of $1 million that experienced payment defaults after modifications resulting in TDR status during 2019.

During the nine months ended September 30, 2021, there were five commercial loan TDRs and 98 consumer loan TDRs with a combined recorded investment of $4 million that experienced payment defaults after modifications resulting in TDR status during 2020. During the nine months ended September 30, 2020, there were no commercial loan TDRs and 160 consumer loan TDRs with a combined recorded investment of $4 million that experienced payment defaults after modifications resulting in TDR status during 2019.

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 September 30,				Nine months ended September 30,
Dollars in millions	2021		2020		2021		2020
Balance at the end of the prior period	$	152	$	198	$	197	$	68
Liability for credit losses on contingent guarantees at the end of the prior period	—		—		—		7
Cumulative effect from change in accounting principle (a), (b)	—		—		—		66
Balance at beginning of period	152		198		197		141
Provision (credit) for losses on off balance sheet exposures	—		10		(45)		67
Balance at end of period	$	152	$	208	$	152	$	208

(a)The cumulative effect from change in accounting principle relates to the January 1, 2020, adoption of ASU 2016-13.

(b)The nine months ended September 30, 2020, amount excludes $4 million related to the provision for other financial assets.

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Fair Value Measurements

9 Months Ended

Sep. 30, 2021

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 2020 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 2020 Form 10-K. The following tables present these assets and liabilities at September 30, 2021, and December 31, 2020.

	September 30, 2021								December 31, 2020
	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	—		$	747	—		$	747	—		$	633	—		$	633
States and political subdivisions	—		91		—		91		—		24		—		24
Other mortgage-backed securities	—		21		—		21		—		47		—		47
Other securities	$	17	13		—		30		—		13		—		13
Total trading account securities	17		872		—		889		—		717		—		717
Commercial loans	—		13		—		13		—		18		—		18
Total trading account assets	17		885		—		902		—		735		—		735
Securities available for sale:
U.S. Treasury, agencies and corporations	—		8,938		—		8,938		—		1,000		—		1,000
States and political subdivisions	—		—		—		—		—		—		—		—
Agency residential collateralized mortgage obligations	—		16,104		—		16,104		—		14,273		—		14,273
Agency residential mortgage-backed securities	—		5,408		—		5,408		—		2,164		—		2,164
Agency commercial mortgage-backed securities	—		10,121		—		10,121		—		10,106		—		10,106
Other securities	—		1		$	22	23		—		—		$	13	13
Total securities available for sale	—		40,572		22		40,594		—		27,543		13		27,556
Other investments:
Principal investments:
Direct	—		—		1		1		—		—		1		1
Indirect (measured at NAV) (a)	—		—		—		48		—		—		—		53
Total principal investments	—		—		1		49		—		—		1		54
Equity investments:
Direct	—		—		9		9		—		—		13		13
Direct (measured at NAV) (a)	—		—		—		16		—		—		—		7
Indirect (measured at NAV) (a)	—		—		—		6		—		—		—		7
Total equity investments	—		—		9		31		—		—		13		27
Total other investments	—		—		10		80		—		—		14		81
Loans, net of unearned income (residential)	—		—		10		10		—		—		11		11
Loans held for sale (residential)	—		237		—		237		—		264		—		264
Derivative assets:
Interest rate	—		920		34		954		—		1,528		56		1,584
Foreign exchange	65		15		—		80		$	78	31		—		109
Commodity	—		1,799		—		1,799		—		424		2		426
Credit	—		—		—		—		—		—		1		1
Other	—		16		6		22		—		26		32		58
Derivative assets	65		2,750		40		2,855		78		2,009		91		2,178
Netting adjustments (b)	—		—		—		(302)		—		—		—		(380)
Total derivative assets	65		2,750		40		2,553		78		2,009		91		1,798
Accrued income and other assets	—		—		—		—		—		—		—		—
Total assets on a recurring basis at fair value	$	82	$	44,444	$	82	$	44,376	$	78	$	30,551	$	129	$	30,445
LIABILITIES MEASURED ON A RECURRING BASIS
Bank notes and other short-term borrowings:
Short positions	$	212	$	555	—		$	767	$	256	$	503	—		$	759
Derivative liabilities:
Interest rate	—		273		—		273		—		288		—		288
Foreign exchange	60		15		—		75		72		31		—		103
Commodity	—		1,805		—		1,805		—		408		—		408
Credit	—		1		$	6	7		—		—		$	11	11
Other	—		11		—		11		—		16		—		16
Derivative liabilities	60		2,105		6		2,171		72		743		11		826
Netting adjustments (b)	—		—		—		(1,911)		—		—		—		(675)
Total derivative liabilities	60		2,105		6		260		72		743		11		151
Total liabilities on a recurring basis at fair value	$	272	$	2,660	$	6	$	1,027	$	328	$	1,246	$	11	$	910

(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 September 30, 2021, as well as financial support provided for the three and nine months ended September 30, 2021, and September 30, 2020.

					Financial support provided
					Three months ended September 30,					Nine months ended September 30,
	September 30, 2021				2021			2020		2021			2020
Dollars in millions	Fair Value		Unfunded Commitments		Funded Commitments		Funded Other	Funded Commitments	Funded Other	Funded Commitments		Funded Other	Funded Commitments		Funded Other
INVESTMENT TYPE
Direct investments	$	1	—		—		—	—	—	—		—	—		—
Indirect investments (measured at NAV) (a)	48		$	13	$	—	—	1	—	$	4	—	$	1	—
Total	$	49	$	13	$	—	—	1	—	$	4	—	$	1	—

(a) Our indirect investments consist of buyout funds, venture capital funds, and fund of funds. These investments are generally not redeemable. Instead, distributions are received through the liquidation of the underlying investments of the fund. An investment in any one of these funds typically can be sold only with the approval of the fund’s general partners. At September 30, 2021, 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 and nine months ended September 30, 2021, and September 30, 2020. 

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
Nine months ended September 30, 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		—		—			—		(2)		—	1		—			—			10		—
Derivative instruments (b)
Interest rate	56		—		(20)		(c)	$	1	(7)		—	—		$	21	(d)	(17)		(d)	34		—
Credit	(10)		—		4		(c)	—		—		—	—		—			—			(6)		—
Other (e)	32		—		(3)		(c)	—		—		—	(23)		—			—			6		—
Three months ended September 30, 2021
Securities available for sale
Other securities	$	22	—		—			—		—		—	—		—			—			$	22	—
Other investments
Principal investments
Direct (a)	1		—		—			—		—		—	—		—			—			1		—
Equity investments
Direct (a)	9		—		—			—		—		—	—		—			—			9		—
Loans held for sale (residential)	—		—		—			—		—		—	—		—			—			—		—
Loans, net of unearned income (residential)	11		—		—			—		(1)		—	—		—			—			10		—
Derivative instruments (b)
Interest rate	35		—		$	(5)	(c)	$	1	$	(1)	—	—		$	9	(d)	$	(5)	(d)	34		—
Credit	(5)		—		—			(1)		—		—	—		—						(6)		—
Other (e)	13		—		—		(c)	—		—		—	$	(7)	—			—			6		—

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
Nine months ended September 30, 2020
Trading account assets
Other mortgage-backed securities	—		—		—			—		$	(9)	—		—		$	36		—			$	27	—
Securities available for sale
Other securities	$	11	$	1	—			—		—		—		—		—			—			12		—
Other investments
Principal investments
Direct (a)	1		—		—			—		—		—		—		—			—			1		—
Equity investments
Direct (a)	12		—		$	—		—		—		—		—		—			—			12		—
Loans held for sale (residential)	—		—		—			—		(10)		—		$	11	—			—			1		—
Loans, net of unearned income (residential)	4		—		—			—		(2)		—		6		—			—			8		—
Derivative instruments (b)
Interest rate	22		—		$	18	(c)	$	14	(5)		—		—		$	98	(d)	$	(66)	(d)	81		—
Credit	(8)		—		(6)		(c)	$	1			—		—		—						(13)		—
Other (e)	5		—		—			—		—		—		39		—			—			44		—
Three months ended September 30, 2020
Trading account assets
Other mortgage-backed securities	$	36	—		—			—		$	(9)	$	—	—		$	—		—			$	27	$	—
Securities available for sale
Other securities	12		—		—			—		—		—		—		—			—			12		—
Other investments
Principal investments
Direct (a)	1		—		—			—		—		—		—		—			—			1		—
Equity investments
Direct (a)	12				$	—																12		—
Loans held for sale (residential)	—		—		—			—		$	—	—		$	1	—			—			1		—
Loans, net of unearned income (residential)	5		—		—			—		—		—		3		—			—			8		—
Derivative instruments (b)
Interest rate	52				$	(3)	(c)	$	2	$	(4)					$	36	(d)	$	(2)	(d)	81
Credit	(17)		—		4		(c)	—		—		—		—		—			—			(13)		—
Other (e)	46		—		5			—				—		(7)		—						44		—

(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 2020 Form 10-K.  There were no liabilities measured at fair value on a nonrecurring basis at September 30, 2021, and December 31, 2020.

The following table presents our assets measured at fair value on a nonrecurring basis at September 30, 2021, and December 31, 2020:

	September 30, 2021						December 31, 2020
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	—	—	$	5	$	5	—	—		$	108	$	108
Accrued income and other assets	—	—	74		74		—	$	—	56		56
Total assets on a nonrecurring basis at fair value	—	—	$	79	$	79	—	—		$	164	$	164

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 September 30, 2021, and December 31, 2020, the carrying amount of equity investments under this method was $168 million and $171 million, respectively. No impairment was recorded for the three months ended September 30, 2021.

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 September 30, 2021, and December 31, 2020, along with the valuation

techniques used, are shown in the following table:

	Level 3 Asset (Liability)			Valuation  Technique	Significant Unobservable Input	Range (Weighted-Average) (b), (c)
Dollars in millions	September 30, 2021		December 31, 2020			September 30, 2021	December 31, 2020
Recurring
Securities available-for-sale:
Other securities	$	22	13	Discounted cash flows	Discount rate	N/A (16.61%)	N/A (15.09%)
					Marketability discount	N/A (30.00%)	N/A (30.00%)
					Volatility factor	N/A (55.00%)	N/A (44.00%)
Other investments:(a)
Equity investments
Direct	9		13	Discounted cash flows	Discount rate	N/A (14.15%)	13.90 - 17.04% (15.47%)
					Marketability discount	N/A	N/A (30.00%)
					Volatility factor	N/A	N/A (52.00%)
Loans, net of unearned income (residential)	10		11	Market comparable pricing	Comparability factor	64.50 - 97.30% (94.13%)	64.50-99.04% (94.17%)
Derivative instruments:
Interest rate	34		56	Discounted cash flows	Probability of default	.02 - 100% (16.60%)	.02 - 100% (7.90%)
					Internal risk rating	1 - 19 (15.133)	1 - 19 (9.675)
					Loss given default	0 - 1 (.500)	0 - 1 (.483)
Credit (assets)	—		1	Discounted cash flows	Probability of default	.02 - 100% (3.10%)	.02 - 100% (4.70%)
					Internal risk rating	1 - 19 (9.024)	1 - 19 (10.478)
					Loss given default	0 - 1 (.498)	0 - 1 (.490)
Credit (liabilities)	(6)		(11)	Discounted cash flows	Probability of default	.02 - 100% (14.91%)	.02 - 100% (15.45%)
					Internal risk rating	1 - 19 (8.197)	1 - 19 (8.555)
					Loss given default	0 - 1 (.422)	0 - 1 (.431)
Other(d)	6		32	Discounted cash flows	Loan closing rates	5.90 - 99.70% (85.17%)	36.95 - 99.68% (77.51%)
Nonrecurring
Collateral-dependent loans	5		108	Fair value of collateral	Discount rate	0 - 0.00% (0.00%)	0 - 100.00% (36.00%)
Accrued income and other assets:
OREO and other Level 3 assets (e)	12		16	Appraised value	Appraised value	N/M	N/M

(a)Principal investments, direct is excluded from this table as the balance at September 30, 2021, and December 31, 2020, is insignificant (less than $1 million).

(b)The weighted average of significant unobservable inputs is calculated using a weighting relative to fair value.

(c)For significant unobservable inputs with no range, a single figure is reported to denote the single quantitative factor used.

(d)Amounts represent interest rate lock commitments.

(e)Excludes $62 million and $40 million pertaining to servicing assets at September 30, 2021, and December 31, 2020, 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 September 30, 2021, and December 31, 2020, are shown in the following tables. Assets and liabilities are further arranged by measurement category.

	September 30, 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)	$	902	$	17	$	885	—		—		—			$	902
Other investments (b)	607		—		—		$	537	$	70	—			607
Loans, net of unearned income (residential) (d)	10		—		—		10		—		—			10
Loans held for sale (residential) (b)	237		—		237		—		—		—			237
Derivative assets - trading (b)	2,469		65		2,739		7		—		$	(342)	(f)	2,469
Fair value - OCI
Securities available for sale (b)	40,594		—		40,572		22		—		—			40,594
Derivative assets - hedging (b)(g)	84		—		45		—		—		39		(f)	84
Amortized cost
Held-to-maturity securities (c)	8,423		—		8,664		—		—		—			8,664
Loans, net of unearned income (d)	97,515		—		—		97,435		—		—			97,435
Loans held for sale (b)	1,568		—		—		1,568		—		—			1,568
Other
Cash and other short-term investments (a)	20,371		20,371		—		—		—		—			20,371
LIABILITIES (by measurement category)
Fair value - net income
Derivative liabilities - trading (b)	$	249	$	60	$	2,093	$	7	—		$	(1,911)	(f)	$	249
Fair value - OCI
Derivative liabilities - hedging (b)(g)	11		—		11		—		—		—		(f)	11
Amortized cost
Time deposits (e)	4,205		—		4,214		—		—		—			4,214
Short-term borrowings (a)	995		212		783		—		—		—			995
Long-term debt (e)	13,165		13,076		716		—		—		—			13,792
Other
Deposits with no stated maturity (a)	147,726		—		147,726		—		—		—			147,726

	December 31, 2020
			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)	$	735	—		$	735	—		—		—			$	735
Other investments (b)	621		—		—		$	555	$	66	—			621
Loans, net of unearned income (residential) (d)	11		—		—		11		—		—			11
Loans held for sale (residential) (b)	264		—		264		—		—		—			264
Derivative assets - trading (b)	1,676		$	78	1,939		91		—		$	(433)	(f)	1,675
Fair value - OCI
Securities available for sale (b)	27,556		—		27,543		13		—		—			27,556
Derivative assets - hedging (b)(g)	123		—		70		—		—		53		(f)	123
Amortized cost
Held-to-maturity securities (c)	7,595		—		8,023		—		—		—			8,023
Loans, net of unearned income (d)	99,548		—		—		98,946		—		—			98,946
Loans held for sale (b)	1,319		—		—		1,319		—		—			1,319
Other
Short-term investments - U.S. Treasury Bills (b)	—		—		—		—		—		—			—
Cash and other short-term investments (a)	17,285		17,285		—		—		—		—			17,285
LIABILITIES (by measurement category)
Fair value - net income
Derivative liabilities - trading (b)	$	154	$	72	$	746	$	11	—		$	(675)	(f)	$	154
Fair value - OCI
Derivative liabilities - hedging (b)(g)	(3)		—		(3)		—		—		—		(f)	(3)
Amortized cost
Time deposits (e)	5,743		—		5,765		—		—		—			5,765
Short-term borrowings (a)	979		256		723		—		—		—			979
Long-term debt (e)	13,709		13,925		734		—		—		—			14,659
Other
Deposits with no stated maturity (a)	129,539		—		129,539		—		—		—			129,539

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 2020 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 are based on discounted cash flows utilizing relevant market inputs.

(f)Netting adjustments represent the amounts recorded to convert our derivative assets and liabilities from a gross basis to a net basis in accordance with the applicable accounting guidance. The net basis takes into account the impact of bilateral collateral and master netting agreements that allow us to settle all derivative contracts with a single counterparty on a net basis and to offset the net derivative position with the related cash collateral. Total derivative assets and liabilities include these netting adjustments.

(g)Derivative assets-hedging and derivative liabilities-hedging includes both cash flow and fair value hedges. Additional information regarding our accounting policies for cash flow and fair value hedges is provided in Note 1 (“1. Summary of Significant Accounting Policies”) under the heading “Derivatives and Hedging” beginning on page 114 of our 2020 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 $602 million ($518 million at fair value) at September 30, 2021, and $674 million ($567 million at fair value) at December 31, 2020;

•Portfolio loans at fair value of $2 million at September 30, 2021, and $2 million at December 31, 2020.

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.

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Securities

9 Months Ended

Sep. 30, 2021

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.

	September 30, 2021								December 31, 2020
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	$	8,960	—		$	22	$	8,938	$	1,000	—		—		$	1,000
Agency residential collateralized mortgage obligations	16,143		$	168	207		16,104		14,001		$	297	$	25	14,273
Agency residential mortgage-backed securities	5,409		51		52		5,408		2,094		70		—		2,164
Agency commercial mortgage-backed securities	10,141		253		273		10,121		9,707		432		33		10,106
Other securities	8		15				23		8		5		—		13
Total securities available for sale	$	40,661	$	487	$	554	$	40,594	$	26,810	$	804	$	58	$	27,556
HELD-TO-MATURITY SECURITIES
Agency residential collateralized mortgage obligations	$	2,485	$	69	—		$	2,554	$	3,775	$	124	—		$	3,899
Agency residential mortgage-backed securities	184		7		—		191		271		14		—		285
Agency commercial mortgage-backed securities	2,901		165		—		3,066		3,515		290		—		3,805
Asset-backed securities (c)	2,837		—		—		2,837		19		—		—		19
Other securities	16		—		—		16		15		—		—		15
Total held-to-maturity securities	$	8,423	$	241	—		$	8,664	$	7,595	$	428	$	—	$	8,023

(a)Amortized cost amounts exclude accrued interest receivable which is recorded within Other Assets on the balance sheet. At September 30, 2021, accrued interest receivable on available for sale securities and held-to-maturity securities totaled $53 million and $15 million, respectively.

(b)Amortized cost amounts exclude accrued interest receivable which is recorded within Other Assets on the balance sheet. At December 31, 2020, accrued interest receivable on available for sale securities and held-to-maturity securities totaled $42 million and $15 million, respectively.

(c)Includes $2.8 billion of securities as of September 30, 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 September 30, 2021, and December 31, 2020.

	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
September 30, 2021
Securities available for sale:
U.S Treasury, agencies, and corporations	$	8,938	$	22		—		—			$	8,938	$	22
Agency residential collateralized mortgage obligations	7,647		150			$	868	$	57		8,515		207
Agency residential mortgage-backed securities	3,619		52			6		—		(a)	3,625		52
Agency commercial mortgage-backed securities	4,219		215			1,093		58			5,312		273
Held-to-maturity securities:
Asset-backed securities	1		—		(a)	1		—			2		—
Other securities	8,460		—		(a)	—		—		(a)	8,460		—
Total securities in an unrealized loss position	$	32,884	$	439		$	1,968	$	115		$	34,852	$	554
December 31, 2020
Securities available for sale:
Agency residential collateralized mortgage obligations	$	2,110	$	25		—		—			$	2,110	$	25
Agency residential mortgage-backed securities	6		—		(b)	$	5	—		(b)	11		—
Agency commercial mortgage-backed securities	2,709		33			—		—			2,709		33
Held-to-maturity securities:
Agency residential collateralized mortgage obligations	—		—			24		—		(b)	24		—
Other securities	5		—		(b)	—		—			5		—
Total securities in an unrealized loss position	$	4,830	$	58		$	29	—			$	4,859	$	58

(a)At September 30, 2021, gross unrealized losses totaled less than $1 million for asset-backed securities and other securities held-to-maturity with a loss duration of less than 12 months and asset-backed securities held-to-maturity with a loss duration of 12 months or longer. At September 30, 2021, gross unrealized losses totaled less than $1 million for agency residential mortgage-backed securities available for sale with a loss duration greater than 12 months.

(b)At December 31, 2020, gross unrealized losses totaled less than $1 million for agency residential mortgage-backed securities available for sale with a loss duration of less than 12 months and less than $1 million for other securities held-to-maturity with a loss duration of less than 12 months. At December 31, 2020, gross unrealized losses totaled less than $1 million for agency residential mortgage-backed securities available for sale with a loss duration greater than 12 months or longer and less than $1 million for agency residential collateralized mortgage obligations held to maturity with a loss duration greater than 12 months or longer.

Based on our evaluation at September 30, 2021, 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 September 30, 2021, securities available for sale and held-to-maturity securities totaling $14.7 billion were pledged to secure securities sold under repurchase agreements, to secure public and trust deposits, to facilitate access to secured funding, and for other purposes required or permitted by law.

The following table shows our securities by remaining maturity. CMOs, 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.

September 30, 2021	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	$	230	$	247	$	93	$	95
Due after one through five years	19,818		20,076		6,330		6,452
Due after five through ten years	17,312		17,128		2,000		2,117
Due after ten years	3,301		3,143		—		—
Total	$	40,661	$	40,594	$	8,423	$	8,664

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Derivatives and Hedging Activities

9 Months Ended

Sep. 30, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives and Hedging Activities

7. Derivatives and Hedging Activities

We are a party to various derivative instruments, mainly through our subsidiary, KeyBank. The primary derivatives that we use are interest rate swaps, caps, floors, and futures; foreign exchange contracts; commodity derivatives; and credit derivatives. Generally, these instruments help us manage exposure to interest rate risk, mitigate the credit risk inherent in our loan portfolio, hedge against changes in foreign currency exchange rates, and meet client financing and hedging needs.

At September 30, 2021, after taking into account the effects of bilateral collateral and master netting agreements, we had $84 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 $2.5 billion and derivative liabilities of $249 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 108 of our 2020 Form 10-K. Our derivative strategies and related risk management objectives are described in Note 8 (“Derivatives and Hedging Activities”) beginning on page 143 of our 2020 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 September 30, 2021, and December 31, 2020. 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:

	September 30, 2021						December 31, 2020
			Fair Value						Fair Value
Dollars in millions	Notional Amount		Derivative Assets		Derivative Liabilities		Notional Amount		Derivative Assets		Derivative Liabilities
Derivatives designated as hedging instruments:
Interest rate	$	36,423	$	45	$	11	$	36,135	$	70	$	(3)
Derivatives not designated as hedging instruments:
Interest rate	72,688		909		262		78,424		1,514		291
Foreign exchange	7,378		80		75		6,385		109		103
Commodity	15,090		1,799		1,805		9,702		426		408
Credit	339		—		7		423		1		11
Other (a)	3,652		22		11		4,951		58		16
Total	99,147		2,810		2,160		99,885		2,108		829
Netting adjustments (b)	—		(302)		(1,911)		—		(380)		(675)
Net derivatives in the balance sheet	135,570		2,553		260		136,020		1,798		151
Other collateral (c)	—		(1)		(30)		—		(2)		(11)
Net derivative amounts	$	135,570	$	2,552	$	230	$	136,020	$	1,796	$	140

(a)Other derivatives include interest rate lock commitments and forward sale commitments related to our residential mortgage banking activities, forward purchase and sales contracts consisting of contractual commitments associated with “to be announced” securities and when-issued securities, and other customized derivative contracts.

(b)Netting adjustments represent the amounts recorded to convert our derivative assets and liabilities from a gross basis to a net basis in accordance with the applicable accounting guidance.

(c)Other collateral represents the amount that cannot be used to offset our derivative assets and liabilities from a gross basis to a net basis in accordance with the applicable accounting guidance. The other collateral consists of securities and is exchanged under bilateral collateral and master netting agreements that allow us to offset the net derivative position with the related collateral. The application of the other collateral cannot reduce the net derivative position below zero. Therefore, excess other collateral, if any, is not reflected above.

Fair value hedges. During the nine-month period ended September 30, 2021, 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 September 30, 2021, and December 31, 2020, related to cumulative basis adjustments for fair value hedges.

	September 30, 2021
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	$	8,077	$	205
Interest rate contracts	Securities Available for Sale(c)	6,280		168
	December 31, 2020
	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	$	8,182	$	416
Interest rate contracts	Securities Available for Sale(c)	2,080		21

(a)The carrying amount represents the portion of the liability designated as the hedged item.

(b)Basis adjustments related to de-designated hedged items that no longer qualify as fair value hedges reduced the hedge accounting basis adjustment by $7 million and $8 million at September 30, 2021, and December 31, 2020, 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 last layer expected to be remaining at the end of the relationship. At September 30, 2021, and December 31, 2020, the amortized costs of the closed portfolios in these hedging relationships was $7.7 billion and $2.5 billion, respectively.

Cash flow hedges. During the nine-month period ended September 30, 2021, 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 September 30, 2021, we expect to reclassify an estimated $167 million of after-tax net gains on derivative instruments designated as cash flow hedges from AOCI to income during the next 12 months. In addition, we expect to reclassify approximately $6 million of net gains related to terminated cash flow hedges from AOCI to income during the next 12 months. As of September 30, 2021, the maximum length of time over which we hedge forecasted transactions is 5.9 years.

The following tables summarize the effect of fair value and cash flow hedge accounting on the income statement for the three- and nine-month periods ended September 30, 2021, and September 30, 2020.

	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		Interest expense - deposits		Other income
Three months ended September 30, 2021
Total amounts presented in the consolidated statement of income	$	(54)	$	882	$	135	$	235	$	(15)	$	25
Net gains (losses) on fair value hedging relationships
Interest contracts
Recognized on hedged items	37		—		(38)		—		—		—
Recognized on derivatives designated as hedging instruments	(8)		—		39		—		—		—
Net income (expense) recognized on fair value hedges	$	29	—		$	1	—		—		—
Net gain (loss) on cash flow hedging relationships
Interest contracts
Realized gains (losses) (pre-tax) reclassified from AOCI into net income	$	(1)	$	79	$	—	$	(1)	—		—
Net income (expense) recognized on cash flow hedges	$	(1)	$	79	—		$	(1)	—		—
Three months ended September 30, 2020
Total amounts presented in the consolidated statement of income	$	(64)	$	927	$	115	$	146	$	(54)	$	28
Net gains (losses) on fair value hedging relationships
Interest contracts
Recognized on hedged items	$	47	—		—		—		—		—
Recognized on derivatives designated as hedging instruments	(7)		—		—		—		—		—
Net income (expense) recognized on fair value hedges	$	40	—		—		—		—		—
Net gain (loss) on cash flow hedging relationships
Interest contracts
Realized gains (losses) (pre-tax) reclassified from AOCI into net income	$	(1)	$	100	—		—		—		—
Net income (expense) recognized on cash flow hedges	$	(1)	$	100	—		—		—		—

	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		Interest expense - deposits		Other income
Nine months ended September 30, 2021
Total amounts presented in the consolidated statement of income	$	(168)	$	2,659	$	398	$	614	$	(52)	$	89
Net gains (losses) on fair value hedging relationships
Interest contracts
Recognized on hedged items	210		—		(147)		—		—		—
Recognized on derivatives designated as hedging instruments	(113)		—		147		—		—		—
Net income (expense) recognized on fair value hedges	$	97	—		—		—		—		—
Net gain (loss) on cash flow hedging relationships
Interest contracts
Realized gains (losses) (pre-tax) reclassified from AOCI into net income	$	(3)	$	253	—		—		—		—
Net income (expense) recognized on cash flow hedges	$	(3)	$	253	—		—		—		—
Nine months ended September 30, 2020
Total amounts presented in the consolidated statement of income	$	(225)	$	2,933	$	365	$	418	$	(319)	$	(27)
Net gains (losses) on fair value hedging relationships
Interest contracts
Recognized on hedged items	$	(252)	—		—		—		—		—
Recognized on derivatives designated as hedging instruments	343		—		—		—		—		—
Net income (expense) recognized on fair value hedges	$	91	—		—		—		—		—
Net gain (loss) on cash flow hedging relationships
Interest contracts
Realized gains (losses) (pre-tax) reclassified from AOCI into net income	$	(3)	$	224	—		—		—		—
Net income (expense) recognized on cash flow hedges	$	(3)	$	224	—		—		—		—

The following tables summarize the pre-tax net gains (losses) on our cash flow hedges for the three- and nine-month periods ended September 30, 2021, and September 30, 2020, 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 September 30, 2021
Cash Flow Hedges
Interest rate	$	(2)	Interest income — Loans	$	79
Interest rate	—		Interest expense — Long-term debt	(1)
Interest rate	4		Investment banking and debt placement fees	(1)
Total	$	2		$	77
Three months ended September 30, 2020
Cash Flow Hedges
Interest rate	$	5	Interest income — Loans	$	100
Interest rate	—		Interest expense — Long-term debt	(1)
Interest rate	10		Investment banking and debt placement fees	—
Total	$	15		$	99

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(a)
Nine months ended September 30, 2021
Cash Flow Hedges
Interest rate	$	(144)	Interest income — Loans	$	253
Interest rate	2		Interest expense — Long-term debt	(3)
Interest rate	9		Investment banking and debt placement fees	—
Net Investment Hedges
Foreign exchange contracts	—		Other Income	—
Total	$	(133)		$	250
Nine months ended September 30, 2020
Cash Flow Hedges
Interest rate	$	629	Interest income — Loans	$	224
Interest rate	(6)		Interest expense — Long-term debt	(3)
Interest rate	(10)		Investment banking and debt placement fees	—
Net Investment Hedges
Foreign exchange contracts	—		Other Income	—
Total	$	613		$	221

Nonhedging instruments

The following table summarizes the pre-tax net gains (losses) on our derivatives that are not designated as hedging instruments for the three- and nine-month periods ended September 30, 2021, and September 30, 2020, and where they are recorded on the income statement.

	Three months ended September 30, 2021								Three months ended September 30, 2020
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	$	8	—		—		$	8	$	5	—		$	(1)	$	4
Foreign exchange	12		—		—		12		9		—		—		9
Commodity	4		—		—		4		5		—		—		5
Credit	1		—		$	(9)	(8)		4		—		(8)		(4)
Other	—		$	—	—		—		—		$	28	(8)		20
Total net gains (losses)	$	25	$	—	$	(9)	$	16	$	23	$	28	$	(17)	$	34

	Nine months ended September 30, 2021								Nine months ended September 30, 2020
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	$	19	—		$	1	$	20	$	23	—		$	(10)	$	13
Foreign exchange	34		—		—		34		29		—		—		29
Commodity	12		—		—		12		13		—		—		13
Credit	5		—		(27)		(22)		(6)		—		(20)		(26)
Other	—		$	13	(22)		(9)		—		$	36	17		53
Total net gains (losses)	$	70	$	13	$	(48)	$	35	$	59	$	36	$	(13)	$	82

Counterparty Credit Risk

We hold collateral in the form of cash and highly rated securities issued by the U.S. Treasury, government-sponsored enterprises, or GNMA. Cash collateral of $49 million was netted against derivative assets on the balance sheet at September 30, 2021, compared to $63 million of cash collateral netted against derivative assets at December 31, 2020. The cash collateral netted against derivative liabilities totaled $1.6 billion at September 30, 2021, and $232 million at December 31, 2020. 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 147 of our 2020 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	September 30, 2021		December 31, 2020
Interest rate	$	838	$	1,448
Foreign exchange	38		52
Commodity	1,606		178
Credit	—		(1)
Other	22		58
Derivative assets before collateral	2,504		1,735
Plus(Less): Related collateral	49		63
Total derivative assets	$	2,553	$	1,798

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 swap execution facilities. Swap clearing and swap execution facilities reduce our exposure to

counterparty credit risk. At September 30, 2021, we had gross exposure of $159 million to broker-dealers and banks. We had net exposure of $175 million after the application of master netting agreements and cash collateral, where such qualifying agreements exist. We had net exposure of $173 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 $25 million at September 30, 2021. The CVA is calculated from

potential future exposures, expected recovery rates, and market-implied probabilities of default. At September 30, 2021, we had gross exposure of $2.5 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, and the related reserve. 

Credit Derivatives

We are a buyer and, under limited circumstances, may be a seller of credit protection through the credit derivative market. We purchase credit derivatives to manage the credit risk associated with specific commercial lending and swap obligations as well as exposures to debt securities. Our credit derivative portfolio was in a net liability position of $7 million as of September 30, 2021, and $9 million as of December 31, 2020. 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 148 of our 2020 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 September 30, 2021, and December 31, 2020. 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.

	September 30, 2021					December 31, 2020
Dollars in millions	Notional Amount		Average Term (Years)	Payment / Performance Risk		Notional Amount		Average Term (Years)	Payment / Performance Risk
Other	$	146	13.04	17.88	%	$	227	12.76	19.53	%
Total credit derivatives sold	$	146	—	—		$	227	—	—

Credit Risk Contingent Features

We have entered into certain derivative contracts that require us to post collateral to the counterparties when these contracts are in a net liability position. The amount of collateral to be posted is based on the amount of the net liability and thresholds generally related to our long-term senior unsecured credit ratings with Moody’s and S&P. Collateral requirements also are based on minimum transfer amounts, which are specific to each Credit Support Annex (a component of the ISDA Master Agreement) that we have signed with the counterparties. In a limited number of instances, counterparties have the right to terminate their ISDA Master Agreements with us if our ratings fall below a certain level, usually investment-grade level (i.e., “Baa3” for Moody’s and “BBB-” for S&P). At September 30, 2021, 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 September 30, 2021, 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 $1.7 billion, which was comprised of $194 million in derivative assets and $1.9 billion in derivative liabilities. We had $1.6 billion in cash and securities collateral posted to cover those positions as of September 30, 2021. There were no derivative contracts with credit risk contingent features held by KeyCorp at September 30, 2021.

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 September 30, 2021, and December 31, 2020. The additional collateral amounts were calculated based on scenarios under which KeyBank’s ratings are downgraded one, two, or three ratings as of September 30, 2021, and December 31, 2020, and take into account all collateral already posted. A similar calculation was performed for KeyCorp, and no additional collateral would have been required as of September 30, 2021, and December 31, 2020. 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.

	September 30, 2021				December 31, 2020
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	$	1	$	1
Two rating downgrades	3		3		1		1
Three rating downgrades	3		3		1		1

KeyBank’s long-term senior unsecured credit rating was four ratings above noninvestment grade at Moody’s and S&P as of September 30, 2021, and December 31, 2020. If KeyBank’s ratings had been downgraded below investment grade as of September 30, 2021, or December 31, 2020, payments of $4 million and $2 million, respectively, would have been required to either terminate the contracts or post additional collateral for those contracts in a net liability position, taking into account all collateral already posted. If KeyCorp’s ratings had been downgraded below investment grade as of September 30, 2021, or December 31, 2020, 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.

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Mortgage Servicing Assets

9 Months Ended

Sep. 30, 2021

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 115 of our 2020 Form 10-K.

Commercial

Changes in the carrying amount of commercial mortgage servicing assets are summarized as follows:

	Three months ended September 30,				Nine months ended September 30,
Dollars in millions	2021		2020		2021		2020
Balance at beginning of period	$	600	$	565	$	578	$	539
Servicing retained from loan sales	31		30		88		107
Purchases	8		6		22		24
Amortization	(30)		(29)		(89)		(88)
Temporary (impairments) recoveries	—		(6)		10		(16)
Balance at end of period	$	609	$	566	$	609	$	566
Fair value at end of period	$	735	$	685	$	735	$	685

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 September 30, 2021, and September 30, 2020, along with the valuation techniques, are shown in the following table: 

dollars in millions		September 30, 2021						September 30, 2020
Valuation Technique	Significant Unobservable Input	Range				Weighted Average		Range				Weighted Average
Discounted cash flow	Expected defaults	1.00	%	2.00	%	1.15	%	1.00	%	2.00	%	1.17	%
	Residual cash flows discount rate	7.64	%	10.49	%	9.31	%	7.72	%	10.66	%	9.30	%
	Escrow earn rate	1.04	%	1.37	%	1.04	%	0.92	%	1.16	%	1.05	%
	Loan assumption rate	—	%	1.71	%	1.40	%	—	%	1.78	%	1.39	%

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 $193 million for the nine-month period ended September 30, 2021, and $154 million for the nine-month period ended September 30, 2020. This fee income was offset by $89 million of amortization for the nine-month period ended September 30, 2021, and $88 million for the nine-month period ended September 30, 2020. 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 September 30,				Nine months ended September 30,
Dollars in millions	2021		2020		2021		2020
Balance at beginning of period	$	77	$	46	$	58	$	46
Servicing retained from loan sales	9		12		32		25
Purchases	—		—		—		—
Amortization	(4)		(4)		(14)		(9)
Temporary (impairments) recoveries	3		(1)		9		(9)
Balance at end of period	$	85	$	53	$	85	$	53
Fair value at end of period	$	89	$	54	$	89	$	54

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 September 30, 2021, and September 30, 2020, along with the valuation techniques, are shown in the following table:

		September 30, 2021									September 30, 2020
Valuation Technique	Significant Unobservable Input	Range						Weighted Average			Range						Weighted Average
Discounted cash flow	Prepayment speed	8.03		%	48.88		%	11.67		%	12.35		%	53.36		%	16.89		%
	Discount rate	7.50		%	8.57		%	7.54		%	7.51		%	8.80		%	7.57		%
	Servicing cost	$	62.00		$	4,375		$	68.15		$	62.00		$	5,125		$	81.67

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 September 30, 2021, 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 $30 million for the nine-month period ended September 30, 2021, and $24 million for the nine-month period ended September 30, 2020. This fee income was offset by $14 million of amortization for the nine-month period ended September 30, 2021, and $9 million for the nine-month period ended September 30, 2020. Both the contractual fee income and the amortization are recorded, net, in “consumer mortgage income” on the income statement.

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Leases

9 Months Ended

Sep. 30, 2021

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 152 of our 2020 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 September 30,				Nine months ended September 30,
Dollars in millions	2021		2020		2021		2020
Sales-type and direct financing leases
Interest income on lease receivable	$	13	$	36	$	59	$	91
Interest income related to accretion of unguaranteed residual asset	9		(7)		12		(1)
Total sales-type and direct financing lease income	22		29		71		90
Operating leases
Operating lease income related to lease payments	31		34		95		103
Other operating leasing gains	6		4		16		25
Total operating lease income and other leasing gains	36		38		111		128
Total lease income	$	58	$	67	$	182	$	218

In April 2020, the FASB provided elections under which entities can choose to account for eligible rent concessions either by applying the existing lease modification accounting guidance or by applying an expedient to account for

them outside of the modification framework, thus, forgoing the performance of an assessment to determine whether contractual provisions in existing lease arrangements provide enforceable rights and obligations. Modification accounting may require remeasurement and reallocation of contract consideration. To be eligible for the expedient, rent concessions must relate to the COVID-19 pandemic and meet certain criteria. As a result of the pandemic, Key provides lessees with 90 day deferrals on its equipment leases and has elected not to apply modification accounting. Rent concessions were not material at September 30, 2021.

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 152 of our 2020 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 September 30,				Nine months ended September 30,
Dollars in millions	2021		2020		2021		2020
Sales-type and direct financing leases
Interest income on lease receivable	$	13	$	36	$	59	$	91
Interest income related to accretion of unguaranteed residual asset	9		(7)		12		(1)
Total sales-type and direct financing lease income	22		29		71		90
Operating leases
Operating lease income related to lease payments	31		34		95		103
Other operating leasing gains	6		4		16		25
Total operating lease income and other leasing gains	36		38		111		128
Total lease income	$	58	$	67	$	182	$	218

In April 2020, the FASB provided elections under which entities can choose to account for eligible rent concessions either by applying the existing lease modification accounting guidance or by applying an expedient to account for

them outside of the modification framework, thus, forgoing the performance of an assessment to determine whether contractual provisions in existing lease arrangements provide enforceable rights and obligations. Modification accounting may require remeasurement and reallocation of contract consideration. To be eligible for the expedient, rent concessions must relate to the COVID-19 pandemic and meet certain criteria. As a result of the pandemic, Key provides lessees with 90 day deferrals on its equipment leases and has elected not to apply modification accounting. Rent concessions were not material at September 30, 2021.

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 152 of our 2020 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 September 30,				Nine months ended September 30,
Dollars in millions	2021		2020		2021		2020
Sales-type and direct financing leases
Interest income on lease receivable	$	13	$	36	$	59	$	91
Interest income related to accretion of unguaranteed residual asset	9		(7)		12		(1)
Total sales-type and direct financing lease income	22		29		71		90
Operating leases
Operating lease income related to lease payments	31		34		95		103
Other operating leasing gains	6		4		16		25
Total operating lease income and other leasing gains	36		38		111		128
Total lease income	$	58	$	67	$	182	$	218

In April 2020, the FASB provided elections under which entities can choose to account for eligible rent concessions either by applying the existing lease modification accounting guidance or by applying an expedient to account for

them outside of the modification framework, thus, forgoing the performance of an assessment to determine whether contractual provisions in existing lease arrangements provide enforceable rights and obligations. Modification accounting may require remeasurement and reallocation of contract consideration. To be eligible for the expedient, rent concessions must relate to the COVID-19 pandemic and meet certain criteria. As a result of the pandemic, Key provides lessees with 90 day deferrals on its equipment leases and has elected not to apply modification accounting. Rent concessions were not material at September 30, 2021.

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 152 of our 2020 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 September 30,				Nine months ended September 30,
Dollars in millions	2021		2020		2021		2020
Sales-type and direct financing leases
Interest income on lease receivable	$	13	$	36	$	59	$	91
Interest income related to accretion of unguaranteed residual asset	9		(7)		12		(1)
Total sales-type and direct financing lease income	22		29		71		90
Operating leases
Operating lease income related to lease payments	31		34		95		103
Other operating leasing gains	6		4		16		25
Total operating lease income and other leasing gains	36		38		111		128
Total lease income	$	58	$	67	$	182	$	218

In April 2020, the FASB provided elections under which entities can choose to account for eligible rent concessions either by applying the existing lease modification accounting guidance or by applying an expedient to account for

them outside of the modification framework, thus, forgoing the performance of an assessment to determine whether contractual provisions in existing lease arrangements provide enforceable rights and obligations. Modification accounting may require remeasurement and reallocation of contract consideration. To be eligible for the expedient, rent concessions must relate to the COVID-19 pandemic and meet certain criteria. As a result of the pandemic, Key provides lessees with 90 day deferrals on its equipment leases and has elected not to apply modification accounting. Rent concessions were not material at September 30, 2021.

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 152 of our 2020 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 September 30,				Nine months ended September 30,
Dollars in millions	2021		2020		2021		2020
Sales-type and direct financing leases
Interest income on lease receivable	$	13	$	36	$	59	$	91
Interest income related to accretion of unguaranteed residual asset	9		(7)		12		(1)
Total sales-type and direct financing lease income	22		29		71		90
Operating leases
Operating lease income related to lease payments	31		34		95		103
Other operating leasing gains	6		4		16		25
Total operating lease income and other leasing gains	36		38		111		128
Total lease income	$	58	$	67	$	182	$	218

In April 2020, the FASB provided elections under which entities can choose to account for eligible rent concessions either by applying the existing lease modification accounting guidance or by applying an expedient to account for

them outside of the modification framework, thus, forgoing the performance of an assessment to determine whether contractual provisions in existing lease arrangements provide enforceable rights and obligations. Modification accounting may require remeasurement and reallocation of contract consideration. To be eligible for the expedient, rent concessions must relate to the COVID-19 pandemic and meet certain criteria. As a result of the pandemic, Key provides lessees with 90 day deferrals on its equipment leases and has elected not to apply modification accounting. Rent concessions were not material at September 30, 2021.

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Goodwill

9 Months Ended

Sep. 30, 2021

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 115 of our 2020 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 September 30, 2020, the income approach, which was weighted at 75%, utilized discounted cash flow projections for each reporting unit. The market approach, which was weighted at 25%, consisted primarily of public company metrics but also considered 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 SEPTEMBER 30, 2020	$	1,752	$	912	$	2,664
BALANCE AT BALANCE AT DECEMBER 31, 2020	$	1,752	$	912	$	2,664
AQN Strategies acquisition	9		—		9
BALANCE AT SEPTEMBER 30, 2021	$	1,761	$	912	$	2,673

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Variable Interest Entities

9 Months Ended

Sep. 30, 2021

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 156 of our 2020 Form 10-K.

LIHTC investments. We had $1.5 billion and $1.4 billion of investments in LIHTC operating partnerships at September 30, 2021, and December 31, 2020, 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 September 30, 2021, and December 31, 2020, we had liabilities of $608 million and $484 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.

Through KCIC, formed as a wholly-owned subsidiary of KeyBank National Association, we create funds that hold interests in LIHTC investments. KCIC is the managing member of the fund. We have determined that we are not the primary beneficiary of the fund because although we have the power to direct the activities that most significantly influence its economic performance, we do not have benefits that could potentially be deemed significant to the fund. Therefore, we do not consolidate the fund.

The assets and liabilities presented in the table below convey the size of KCDC’s direct and indirect investments at September 30, 2021, and December 31, 2020. 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 156 of our 2020 Form 10-K.

	Unconsolidated VIEs
Dollars in millions	Total Assets		Total Liabilities		Maximum Exposure to Loss
September 30, 2021
LIHTC investments	$	7,389	$	2,861	$	1,882
December 31, 2020
LIHTC investments	$	6,914	$	2,765	$	1,823

We amortize our LIHTC investments over the period that we expect to receive the tax benefits. During the first nine months of 2021, we recognized $147 million of amortization and $139 million of tax credits associated with these investments within “income taxes” on our income statement. During the first nine months of 2020, we recognized $137 million of amortization and $135 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 $48 million and $53 million at September 30, 2021, and December 31, 2020, 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 September 30, 2021, and December 31, 2020.

	Unconsolidated VIEs
Dollars in millions	Total Assets		Total Liabilities		Maximum Exposure to Loss
September 30, 2021
Indirect investments	$	10,199	$	189	$	61
December 31, 2020
Indirect investments	$	10,899	$	168	$	78

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 September 30, 2021, and December 31, 2020, that can be used to settle the entities’ obligations. The entities had no liabilities at September 30, 2021, and December 31, 2020, and other equity investors have no recourse to our general credit.

Additional information on our indirect and direct principal investments is provided in Note 5 (“Fair Value Measurements”) and in Note 13 (“Variable Interest Entities “) beginning on page 156 of our 2020 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 September 30, 2021, and December 31, 2020. 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 September 30, 2021, $2.8 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 1 of our 2020 Form 10-K.

	Other unconsolidated VIEs
Dollars in millions	Total Assets		Total Liabilities
September 30, 2021
Other unconsolidated VIEs	$	3,166	$	1
December 31, 2020
Other unconsolidated VIEs	$	351	$	1

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Income Taxes

9 Months Ended

Sep. 30, 2021

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 20.4% for the third quarter of 2021 and 12.5% for the third quarter of 2020. 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 September 30, 2021, we had a net deferred tax asset of $41 million, compared to a net deferred tax liability of $100 million at December 31, 2020, which are included in “accrued income and other assets” and “accrued expense and other liabilities,” respectively, 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 September 30, 2021, and no valuation allowance at December 31, 2020. The valuation allowance is associated with federal and state capital loss carryforwards.

Unrecognized Tax Benefits

At September 30, 2021, Key’s unrecognized tax benefits were $55 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.

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Acquisitions and Discontinued Operations

9 Months Ended

Sep. 30, 2021

Business Combination and Asset Acquisition [Abstract]

Acquisitions and Discontinued Operations

13. Acquisition and Discontinued Operations

Acquisitions

Arbitria Quum Notitia, LLC (AQN Strategies). On February 25, 2021, KeyCorp acquired AQN Strategies, a diversified consulting practice, specializing in analytically driven strategies and solutions as it relates to bank transformations, credit and growth, and payments intelligence. The acquisition of AQN Strategies will advance Key’s analytics by adding senior talent and expertise directly aligned to Key’s focus areas. The acquisition was accounted

for as a business combination. As a result, we recognized goodwill of $9 million. No other material assets were acquired or liabilities assumed as a result of the acquisition.

Discontinued operations

Discontinued operations primarily includes our government-guaranteed and private education lending business. At September 30, 2021, and December 31, 2020, approximately $602 million and $710 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.

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Securities Financing Activities

9 Months Ended

Sep. 30, 2021

Banking and Thrift, Other Disclosures [Abstract]

Securities Financing Activities

14. Securities Financing Activities

We enter into repurchase agreements to finance overnight customer sweep deposits. We also enter into repurchase and reverse repurchase agreements to settle other securities obligations. We account for these securities financing agreements as collateralized financing transactions. Repurchase and reverse repurchase agreements are recorded on the balance sheet at the amounts for which the securities will be subsequently sold or repurchased. Securities borrowed transactions are recorded on the balance sheet at the amounts of cash collateral advanced. While our securities financing agreements incorporate a right of set off, the assets and liabilities are reported on a gross basis. Reverse repurchase agreements and securities borrowed transactions are included in “short-term investments” on the Consolidated Balance Sheets; repurchase agreements are included in “federal funds purchased and securities sold under repurchase agreements.” Additional information regarding our securities financing activities, including risk management activities, is provided in Note 16 (“Securities Financing Activities”) beginning on page 160 of our 2020 Form 10-K.

The following table summarizes our securities financing agreements at September 30, 2021, and December 31, 2020:

	September 30, 2021							December 31, 2020
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	$	11	$	(11)	—		—	$	6	$	(6)	—		—
Securities borrowed	$	500	$	—	$	(500)	—	$	500	$	—	$	(500)	—
Total	$	511	$	(11)	$	(500)	—	$	506	$	(6)	$	(500)	—
Offsetting of financial liabilities:
Repurchase agreements (c)	$	229	$	(11)	$	(218)	—	$	220	$	(6)	$	(214)	—
Total	$	229	$	(11)	$	(218)	—	$	220	$	(6)	$	(214)	—

(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 September 30, 2021, the carrying amount of assets pledged as collateral against repurchase agreements totaled $283 million. Assets pledged as collateral are reported in “securities available for sale” and “held-to-maturity securities” on the Consolidated Balance Sheets. At September 30, 2021, the liabilities associated with collateral pledged were solely comprised of customer sweep financing activity and had a carrying value of $218 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.

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Employee Benefits

9 Months Ended

Sep. 30, 2021

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 164 of our 2020 Form 10-K.

	Three months ended September 30,				Nine months ended September 30,
Dollars in millions	2021		2020		2021		2020
Interest cost on PBO	$	6	$	9	$	18	$	26
Expected return on plan assets	(7)		(10)		(21)		(29)
Amortization of losses	5		5		14		13
Settlement loss	7		—		7		8
Net pension cost	$	11	$	4	$	18	$	18

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Trust Preferred Securities Issued by Unconsolidated Subsidiaries

9 Months Ended

Sep. 30, 2021

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
September 30, 2021
KeyCorp Capital I	$	156	$	6	$	162	0.885	%	2028
KeyCorp Capital II	101		4		105		6.875		2029
KeyCorp Capital III	140		4		144		7.750		2029
HNC Statutory Trust III	20		1		21		1.531		2035
Willow Grove Statutory Trust I	20		1		21		1.409		2036
HNC Statutory Trust IV	17		1		18		1.426		2037
Westbank Capital Trust II	8		—		8		2.312		2034
Westbank Capital Trust III	8		—		8		2.312		2034
Total	$	470	$	17	$	486	4.343	%	—
December 31, 2020	$	483	$	17	$	500	4.464	%	—

(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 $56 million at September 30, 2021, and $70 million at December 31, 2020. 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 $56 million at September 30, 2021, and $70 million at December 31, 2020. 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.

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Contingent Liabilities and Guarantees

9 Months Ended

Sep. 30, 2021

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 September 30, 2021. 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 116 of our 2020 Form 10-K.

September 30, 2021	Maximum Potential Undiscounted Future Payments		Liability Recorded
Dollars in millions
Financial guarantees:
Standby letters of credit	$	3,463	$	83
Recourse agreement with FNMA	6,272		25
Residential mortgage reserve	2,972		14
Written put options (a)	3,835		57
Total	$	16,542	$	179

(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 September 30, 2021, 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 174 of our 2020 Form 10-K.

Standby letters of credit. At September 30, 2021, our standby letters of credit had a remaining weighted-average life of 1.7 years, with remaining actual lives ranging from less than 1 year to as many as 13.2 years.

Recourse agreement with FNMA. At September 30, 2021, 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 $20.6 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 30.5% of the principal balance of loans outstanding at September 30, 2021. 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 September 30, 2021, the unpaid principal balance outstanding of loans sold by us in this program was $9.7 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 September 30, 2021. 

Our liability for estimated repurchase obligations on loans sold, which is included in Other liabilities on the Consolidated Balance Sheets, was $14 million at September 30, 2021. For more information on our residential mortgages, see Note 8 (“Mortgage Servicing Assets“).

Written put options. At September 30, 2021, our written put options had an average life of 2.1 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 175 of our 2020 Form 10-K.

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Accumulated Other Comprehensive Income

9 Months Ended

Sep. 30, 2021

Equity [Abstract]

Accumulated Other Comprehensive Income

18. Accumulated Other Comprehensive Income

Our changes in AOCI for the three and nine months ended September 30, 2021, and September 30, 2020, 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, 2020	$	567	$	476	$	(305)	$	738
Other comprehensive income before reclassification, net of income taxes	(617)		11		(2)		(608)
Amounts reclassified from AOCI, net of income taxes (a)	—		(191)		16		(175)
Net current-period other comprehensive income, net of income taxes	(617)		(180)		14		(783)
Balance at September 30, 2021	$	(50)	$	296	$	(291)	$	(45)
Balance at June 30, 2021	$	124	$	325	$	(299)	$	150
Other comprehensive income before reclassification, net of income taxes	(174)		30		(1)		(145)
Amounts reclassified from AOCI, net of income taxes (a)	—		(59)		9		(50)
Net current-period other comprehensive income, net of income taxes	(174)		(29)		8		(195)
Balance at September 30, 2021	$	(50)	$	296	$	(291)	$	(45)
Balance at December 31, 2019	$	115	$	250	$	(339)	$	26
Other comprehensive income before reclassification, net of income taxes	530		467		(1)		996
Amounts reclassified from AOCI, net of income taxes (a)	(3)		(168)		16		(155)
Net current-period other comprehensive income, net of income taxes	527		299		15		841
Balance at September 30, 2020	$	642	$	549	$	(324)	$	867
Balance at June 30, 2020	$	650	$	613	$	(327)	$	936
Other comprehensive income before reclassification, net of income taxes	(8)		11		(1)		2
Amounts reclassified from AOCI, net of income taxes (a)	—		(75)		4		(71)
Net current-period other comprehensive income, net of income taxes	(8)		(64)		3		(69)
Balance at September 30, 2020	$	642	$	549	$	(324)	$	867

(a)See table below for details about these reclassifications.

Our reclassifications out of AOCI for the three and nine months ended September 30, 2021, and September 30, 2020, are as follows:

	Three months ended September 30,				Affected Line Item in the Statement Where Net Income is Presented
Dollars in millions	2021		2020
Unrealized gains (losses) on derivative financial instruments
Interest rate	$	79	$	100	Interest income — Loans
Interest rate	(1)		(1)		Interest expense — Long-term debt
Interest rate	(1)		—		Investment banking and debt placement fees
	77		99		Income (loss) from continuing operations before income taxes
	18		24		Income taxes
	$	59	$	75	Income (loss) from continuing operations
Net pension and postretirement benefit costs
Amortization of losses	$	(5)	$	(5)	Other expense
Settlement loss	(7)		—		Other expense
	(12)		(5)		Income (loss) from continuing operations before income taxes
	(3)		(1)		Income taxes
	$	(9)	$	(4)	Income (loss) from continuing operations

	Nine months ended September 30,				Affected Line Item in the Statement Where Net Income is Presented
Dollars in millions	2021		2020
Unrealized gains (losses) on available for sale securities
Realized gains	—		$	4	Other income
	—		4		Income (loss) from continuing operations before income taxes
	—		1		Income taxes
	—		$	3	Income (loss) from continuing operations
Unrealized gains (losses) on derivative financial instruments
Interest rate	$	253	$	224	Interest income — Loans
Interest rate	(3)		(3)		Interest expense — Long-term debt
Interest rate	—		—		Investment banking and debt placement fees
	250		221		Income (loss) from continuing operations before income taxes
	59		53		Income taxes
	$	191	$	168	Income (loss) from continuing operations
Net pension and postretirement benefit costs
Amortization of losses	$	(14)	$	(13)	Other expense
Settlement loss	(7)		(8)		Other expense
	(21)		(21)		Income (loss) from continuing operations before income taxes
	(5)		(5)		Income taxes
	$	(16)	$	(16)	Income (loss) from continuing operations

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Shareholders' Equity

9 Months Ended

Sep. 30, 2021

Equity [Abstract]

Shareholders' Equity

19. Shareholders' Equity

Comprehensive Capital Plan

In the third quarter of 2021, under our current authorization pursuant to our 2021 capital plan, we completed $593 million of Common Share repurchases. Of the $593 million total common shares repurchased in the third quarter of 2021, $468 million were related to the initial settlement of an ASR program entered into with Goldman Sachs & Co. LLC (Goldman Sachs) on September 10, 2021, and $125 million were purchased in the open market. Less than $1 million of Common Share repurchases related to employee equity compensation programs.

Under the ASR program, we made a cash payment of $585 million to Goldman Sachs and received an initial delivery of 23.6 million shares of our common stock from Goldman Sachs based on the then current market price of $19.87 of our common stock. The payment to Goldman Sachs was recorded as a reduction to our shareholders’ equity, consisting of a $468 million impact to treasury stock, which reflected the value of the initial 23.6 million shares received upon initial settlement, and a $117 million reduction to our capital surplus balance, which reflects the value of common stock held back by Goldman Sachs pending final settlement of the ASR program. The total number of shares that we will repurchase under the ASR program will be based on the volume-weighted average share price of our common stock during the term of the ASR agreement, less a discount, and subject to potential adjustments pursuant to the terms and conditions of the ASR agreement.

Consistent with our capital plan, the Board declared a quarterly dividend of $.185 per Common Share for the third quarter of 2021. Common Share repurchases and Common Share dividends paid during the third quarter are consistent with the Federal Reserve’s third quarter capital distribution limitations.

Preferred Stock

Preferred stock series	Amount outstanding (in millions)		Shares authorized and outstanding	Par value		Liquidation preference		Ownership interest per depositary share	Liquidation preference per depositary share		Third quarter 2021 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

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Business Segment Reporting

9 Months Ended

Sep. 30, 2021

Segment Reporting [Abstract]

Business Segment Reporting

20. Business Segment Reporting

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- and nine-month periods ended September 30, 2021, and September 30, 2020. Capital is assigned to each business segment based on a combination of regulatory and economic equity.

Three months ended September 30,	Consumer Bank						Commercial Bank						Other						Total Key
Dollars in millions	2021			2020			2021			2020			2021			2020			2021			2020
SUMMARY OF OPERATIONS
Net interest income (TE)	$	582		$	598		$	414		$	427		$	29		$	(19)		$	1,025		$	1,006
Noninterest income	288			266			477			384			32			31			797			681
Total revenue (TE) (a)	870			864			891			811			61			12			1,822			1,687
Provision for credit losses	(38)			(3)			(69)			150			—			13			(107)			160
Depreciation and amortization expense	31			19			34			35			22			35			87			89
Other noninterest expense	560			548			436			412			29			(12)			1,025			948
Income (loss) from continuing operations before income taxes (TE)	317			300			490			214			10			(24)			817			490
Allocated income taxes and TE adjustments	76			71			106			41			(8)			(46)			174			66
Income (loss) from continuing operations	241			229			384			173			18			22			643			424
Income (loss) from discontinued operations, net of taxes	—			—			—			—			2			4			2			4
Net income (loss)	241			229			384			173			20			26			645			428
Less: Net income (loss) attributable to noncontrolling interests	—			—			—			—			—			—			—			—
Net income (loss) attributable to Key	$	241		$	229		$	384		$	173		$	20		$	26		$	645		$	428
AVERAGE BALANCES (b)
Loans and leases	$	39,796		$	38,354		$	59,914		$	66,378		$	428		$	187		$	100,138		$	104,919
Total assets (a)	42,981			43,304			69,285			74,530			69,105			50,977			181,371			168,811
Deposits	89,156			82,829			56,546			51,585			1,214			530			146,916			134,944
OTHER FINANCIAL DATA
Net loan charge-offs (b)	$	35		$	23		$	(6)		$	103		$	—		$	2		$	29		$	128
Return on average allocated equity (b)	25.81		%	26.21		%	18.68		%	13.35		%	1.18		%	.96		%	14.25		%	9.51		%
Return on average allocated equity	25.81			26.21			18.68			13.35			1.31			1.14			14.30			9.60
Average full-time equivalent employees (c)	7,976			8,323			2,371			2,312			6,662			6,462			17,009			17,097

(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.

Nine months ended September 30,	Consumer Bank						Commercial Bank						Other							Total Key
Dollars in millions	2021			2020			2021			2020			2021				2020			2021			2020
SUMMARY OF OPERATIONS
Net interest income (TE)	$	1,788		$	1,765		$	1,244		$	1,305		$	28			$	(50)		$	3,060		$	3,020
Noninterest income	798			740			1,377			1,023			110				87			2,285			1,850
Total revenue (TE) (a)	2,586			2,505			2,621			2,328			138				37			5,345			4,870
Provision for credit losses	(132)			289			(267)			697			(23)				15			(422)			1,001
Depreciation and amortization expense	71			59			101			108			95				105			267			272
Other noninterest expense	1,706			1,597			1,263			1,144			23				(32)			2,992			2,709
Income (loss) from continuing operations before income taxes (TE)	941			560			1,524			379			43				(51)			2,508			888
Allocated income taxes and TE adjustments	226			133			324			38			(27)				(37)			523			134
Income (loss) from continuing operations	715			427			1,200			341			70				(14)			1,985			754
Income (loss) from discontinued operations, net of taxes	—			—			—			—			11				7			11			7
Net income (loss)	715			427			1,200			341			81				(7)			1,996			761
Less: Net income (loss) attributable to noncontrolling interests	—			—			—			—			—				—			—			—
Net income (loss) attributable to Key	$	715		$	427		$	1,200		$	341		$	81		(d)	$	(7)		$	1,996		$	761
AVERAGE BALANCES (b)
Loans and leases	$	39,883		$	36,319		$	60,358		$	66,374		$	321			$	325		$	100,562		$	103,018
Total assets (a)	43,094			40,644			69,607			75,205			64,493				43,897			177,194			159,746
Deposits	87,549			78,414			54,660			45,350			814				691			143,023			124,455
OTHER FINANCIAL DATA
Net loan charge-offs (b)	$	105		$	106		$	81		$	200		(21)				2			$	165		$	308
Return on average allocated equity (b)	26.70		%	16.66		%	18.92		%	9.19		%	1.62		%		(.20)		%	14.87		%	5.74		%
Return on average allocated equity	26.70			16.66			18.92			9.19			1.87				(.10)			14.96			5.79
Average full-time equivalent employees (c)	8,062			8,171			2,371			2,288			6,601				6,299			17,034			16,758

(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.

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Revenue from Contracts with Customers

9 Months Ended

Sep. 30, 2021

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- and nine-month periods ended September 30, 2021, and September 30, 2020. 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 September 30, 2021						Three months ended September 30, 2020
Dollars in millions	Consumer Bank		Commercial Bank		Total Contract Revenue		Consumer Bank		Commercial Bank		Total Contract Revenue
NONINTEREST INCOME
Trust and investment services income	$	105	$	16	$	121	$	100	$	15	$	115
Investment banking and debt placement fees	—		169		169		—		69		69
Services charges on deposit accounts	56		35		91		45		32		77
Cards and payments income	46		61		107		43		69		112
Other noninterest income	2		—		2		3		—		3
Total revenue from contracts with customers	$	209	$	281	$	490	$	191	$	185	$	376
Other noninterest income (a)					$	275					$	274
Noninterest income from Other(b)					32						31
Total noninterest income					$	797					$	681

(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.

	Nine months ended September 30, 2021						Nine months ended September 30, 2020
Dollars in millions	Consumer Bank		Commercial Bank		Total Contract Revenue		Consumer Bank		Commercial Bank		Total Contract Revenue
NONINTEREST INCOME
Trust and investment services income	$	311	$	49	$	360	$	279	$	49	$	328
Investment banking and debt placement fees	—		367		367		—		176		176
Services charges on deposit accounts	145		102		247		138		91		229
Cards and payments income	135		187		322		118		147		265
Other noninterest income	5		2		7		7		—		7
Total revenue from contracts with customers	$	596	$	707	$	1,303	$	542	$	463	$	1,005
Other noninterest income (a)					$	872					$	758
Noninterest income from Other(b)					110						87
Total noninterest income					$	2,285					$	1,850

(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 September 30, 2021, and September 30, 2020.

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Basis of Presentation and Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2021

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 2020 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.

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

Effective January 1, 2021, Key changed its approach for allocating equity to its reporting units. The carrying amounts of Key’s reporting units now represent the combination of regulatory and economic equity for goodwill impairment testing and management reporting purposes. The fair values of each reporting unit are estimated using a combination of market and income approaches. For more information, refer to Note 10 (“Goodwill”).

Accounting Guidance Adopted in 2021

Accounting Guidance Adopted in 2021

Standard	Required Adoption	Description	Effect on Financial Statements or Other Significant Matters
ASU 2019-12, Simplifying the Accounting for Income Taxes	January 1, 2021	This ASU simplifies the accounting for income taxes by removing certain exceptions to the existing guidance, such as exceptions related to the incremental approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period when a year-to-date loss exceeds the anticipated loss, and the recognition of deferred tax liabilities when a foreign subsidiary becomes an equity method investment and when a foreign equity method investment becomes a subsidiary. Along with general improvements, it adds simplifications related to franchise taxes, the tax basis of goodwill, and the method for recognizing an enacted change in tax laws. The guidance also specifies that an entity is not required to allocate the consolidated amount of certain tax expense to a legal entity not subject to tax in its own separate financial statements. The guidance should be applied on either a retrospective, modified retrospective, or prospective basis depending on the amendment.	The adoption of this accounting guidance did not have a material effect on our financial condition or results of operations.
ASU 2020-01, Clarifying the Interactions between Topic 321,Investments —Equity Securities; Topic 323, Investments— Equity Method and Joint Ventures; and Topic 815, Derivatives and Hedging	January 1, 2021	This guidance clarifies that when applying the measurement alternative in Topic 321, companies should consider certain observable transactions that require the application or discontinuance of the equity method under Topic 323. It also clarifies that companies should not consider whether the underlying securities in certain forward contracts and purchased options would be accounted for under the equity method or fair value option when determining the method of accounting for those contracts. This guidance should be applied on prospective basis.	The adoption of this accounting guidance did not have a material effect on our financial condition or results of operations.
ASU 2020-08, Codification Improvements to Subtopic 310-20, Receivables—Nonrefundable Fees and Other Costs	January 1, 2021	This ASU clarifies that at each reporting period an entity should reevaluate whether a callable debt security is within the scope of ASC 310, which says that to the extent the amortized cost basis of an individual callable debt security exceeds the amount repayable by the issuer at the earliest call date, the premium shall be amortized to the earliest call date, unless prepayment guidance is applied. This guidance should be applied on a prospective basis.	The adoption of this accounting guidance did not have a material effect on our financial condition or results of operations.
ASU 2021-01, Reference Rate Reform (Topic 848)	January 1, 2021	The ASU clarifies that certain optional expedients and exceptions related to contracts modified as a result of reference rate reform and hedge accounting apply to derivatives affected by the discounting transition, such as those that use an interest rate for margining, discounting, or contract price alignment. The guidance may be applied on a full retrospective basis as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020. Alternatively, it may be applied on a prospective basis to new modifications from any date within an interim period that includes or is subsequent to the date of the issuance of a final Update, until the financial statements are available to be issued.	Key adopted this guidance on January 1, 2021, on a prospective basis and will assess the impact in conjunction with the reference rate transition.

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Basis of Presentation and Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of New Accounting Pronouncements and Changes in Accounting Principles

Standard	Required Adoption	Description	Effect on Financial Statements or Other Significant Matters
ASU 2019-12, Simplifying the Accounting for Income Taxes	January 1, 2021	This ASU simplifies the accounting for income taxes by removing certain exceptions to the existing guidance, such as exceptions related to the incremental approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period when a year-to-date loss exceeds the anticipated loss, and the recognition of deferred tax liabilities when a foreign subsidiary becomes an equity method investment and when a foreign equity method investment becomes a subsidiary. Along with general improvements, it adds simplifications related to franchise taxes, the tax basis of goodwill, and the method for recognizing an enacted change in tax laws. The guidance also specifies that an entity is not required to allocate the consolidated amount of certain tax expense to a legal entity not subject to tax in its own separate financial statements. The guidance should be applied on either a retrospective, modified retrospective, or prospective basis depending on the amendment.	The adoption of this accounting guidance did not have a material effect on our financial condition or results of operations.
ASU 2020-01, Clarifying the Interactions between Topic 321,Investments —Equity Securities; Topic 323, Investments— Equity Method and Joint Ventures; and Topic 815, Derivatives and Hedging	January 1, 2021	This guidance clarifies that when applying the measurement alternative in Topic 321, companies should consider certain observable transactions that require the application or discontinuance of the equity method under Topic 323. It also clarifies that companies should not consider whether the underlying securities in certain forward contracts and purchased options would be accounted for under the equity method or fair value option when determining the method of accounting for those contracts. This guidance should be applied on prospective basis.	The adoption of this accounting guidance did not have a material effect on our financial condition or results of operations.
ASU 2020-08, Codification Improvements to Subtopic 310-20, Receivables—Nonrefundable Fees and Other Costs	January 1, 2021	This ASU clarifies that at each reporting period an entity should reevaluate whether a callable debt security is within the scope of ASC 310, which says that to the extent the amortized cost basis of an individual callable debt security exceeds the amount repayable by the issuer at the earliest call date, the premium shall be amortized to the earliest call date, unless prepayment guidance is applied. This guidance should be applied on a prospective basis.	The adoption of this accounting guidance did not have a material effect on our financial condition or results of operations.
ASU 2021-01, Reference Rate Reform (Topic 848)	January 1, 2021	The ASU clarifies that certain optional expedients and exceptions related to contracts modified as a result of reference rate reform and hedge accounting apply to derivatives affected by the discounting transition, such as those that use an interest rate for margining, discounting, or contract price alignment. The guidance may be applied on a full retrospective basis as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020. Alternatively, it may be applied on a prospective basis to new modifications from any date within an interim period that includes or is subsequent to the date of the issuance of a final Update, until the financial statements are available to be issued.	Key adopted this guidance on January 1, 2021, on a prospective basis and will assess the impact in conjunction with the reference rate transition.

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Earnings Per Common Share (Tables)

9 Months Ended

Sep. 30, 2021

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 September 30,				Nine months ended September 30,
Dollars in millions, except per share amounts	2021		2020		2021		2020
EARNINGS
Income (loss) from continuing operations	$	643	$	424	$	1,985	$	754
Less: Net income (loss) attributable to noncontrolling interests	—		—		—		—
Income (loss) from continuing operations attributable to Key	643		424		1,985		754
Less: Dividends on Preferred Stock	27		27		80		80
Income (loss) from continuing operations attributable to Key common shareholders	616		397		1,905		674
Income (loss) from discontinued operations, net of taxes	2		4		11		7
Net income (loss) attributable to Key common shareholders	$	618	$	401	$	1,916	$	681
WEIGHTED-AVERAGE COMMON SHARES
Weighted-average Common Shares outstanding (000)	942,446		967,804		955,069		967,632
Effect of Common Share options and other stock awards	10,077		6,184		9,712		6,648
Weighted-average Common Shares and potential Common Shares outstanding (000) (a)	952,523		973,988		964,781		974,280
EARNINGS PER COMMON SHARE
Income (loss) from continuing operations attributable to Key common shareholders	$	.65	$	.41	$	1.99	$	.70
Income (loss) from discontinued operations, net of taxes	—		—		.01		.01
Net income (loss) attributable to Key common shareholders (b)	.66		.41		2.00		.70
Income (loss) from continuing operations attributable to Key common shareholders — assuming dilution	$	.65	$	.41	$	1.98	$	.69
Income (loss) from discontinued operations, net of taxes — assuming dilution	—		—		.01		.01
Net income (loss) attributable to Key common shareholders — assuming dilution (b)	.65		.41		1.99		.70

(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.

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Loan Portfolio (Tables)

9 Months Ended

Sep. 30, 2021

Loans Receivables [Abstract]

Loans by Category

Dollars in millions	September 30, 2021		December 31, 2020
Commercial and industrial (b)	$	49,553	$	52,907
Commercial real estate:
Commercial mortgage	13,674		12,687
Construction	2,120		1,987
Total commercial real estate loans	15,794		14,674
Commercial lease financing (c)	3,982		4,399
Total commercial loans	69,329		71,980
Residential — prime loans:
Real estate — residential mortgage	14,204		9,298
Home equity loans	8,747		9,360
Total residential — prime loans	22,951		18,658
Consumer direct loans	5,324		4,714
Credit cards	928		989
Consumer indirect loans	77		4,844
Total consumer loans	29,280		29,205
Total loans (d)	$	98,609	$	101,185

(a)Accrued interest of $211 million and $241 million at September 30, 2021, and December 31, 2020, 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 $139 million and $127 million of commercial credit card balances at September 30, 2021, and December 31, 2020, respectively.

(c)Commercial lease financing includes receivables held as collateral for a secured borrowing of $16 million and $23 million at September 30, 2021, and December 31, 2020, 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 171 of our 2020 Form 10-K.

(d)Total loans exclude loans of $602 million at September 30, 2021, and $710 million at December 31, 2020, related to the discontinued operations of the education lending business.

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Asset Quality (Tables)

9 Months Ended

Sep. 30, 2021

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 September 30, 2021:

Dollars in millions	June 30, 2021		Provision		Charge-offs		Recoveries		September 30, 2021
Commercial and Industrial	$	499	$	(30)	$	(27)	$	20	$	462
Commercial real estate:
Real estate — commercial mortgage	227		(44)		—		1		184
Real estate — construction	35		(8)		—		—		27
Total commercial real estate loans	262		(52)		—		1		211
Commercial lease financing	34		(7)		(1)		6		32
Total commercial loans	795		(89)		(28)		27		705
Real estate — residential mortgage	86		(1)		2		1		88
Home equity loans	136		(13)		(1)		2		124
Consumer direct loans	115		(5)		(7)		2		105
Credit cards	68		(4)		(6)		1		59
Consumer indirect loans	20		5		(26)		4		3
Total consumer loans	425		(18)		(38)		10		379
Total ALLL — continuing operations	1,220		(107)		(66)		37		1,084
Discontinued operations	30		(1)		(1)		1		29
Total ALLL — including discontinued operations	$	1,250	$	(108)	$	(67)	$	38	$	1,113

Three months ended September 30, 2020:

Dollars in millions	June 30, 2020		Provision			Charge-offs		Recoveries		September 30, 2020
Commercial and Industrial	$	725	$	177		$	(101)	$	9	$	810
Commercial real estate:
Real estate — commercial mortgage	292		(2)			(13)		2		279
Real estate — construction	41		(7)			—		—		34
Total commercial real estate loans	333		(9)			(13)		2		313
Commercial lease financing	55		13			(10)		—		58
Total commercial loans	1,113		181			(124)		11		1,181
Real estate — residential mortgage	101		2			—		1		104
Home equity loans	197		(13)			(4)		3		183
Consumer direct loans	130		1			(8)		2		125
Credit cards	107		(5)			(9)		2		95
Consumer indirect loans	60		(16)			(6)		4		42
Total consumer loans	595		(31)			(27)		12		549
Total ALLL — continuing operations	1,708		150		(a)	(151)		23		1,730
Discontinued operations	43		(1)			—		—		42
Total ALLL — including discontinued operations	$	1,751	$	149		$	(151)	$	23	$	1,772

(a)Excludes a provision for losses on lending-related commitments of $10 million.

Nine months ended September 30, 2021

Dollars in millions	December 31, 2020		Provision			Charge-offs		Recoveries		September 30, 2021
Commercial and Industrial	$	678	$	(135)		$	(141)	$	60	$	462
Commercial real estate:
Real estate — commercial mortgage	327		(112)			(39)		8		184
Real estate — construction	47		(20)			—		—		27
Total commercial real estate loans	374		(132)			—		—		211
Commercial lease financing	47		(17)			(5)		7		32
Total commercial loans	1,099		(284)			(185)		75		705
Real estate — residential mortgage	102		(17)			1		2		88
Home equity loans	171		(44)			(7)		4		124
Consumer direct loans	128		(7)			(22)		6		105
Credit cards	87		(13)			(21)		6		59
Consumer indirect loans	39		(12)			(38)		14		3
Total consumer loans	527		(93)			(87)		32		379
Total ALLL — continuing operations	1,626		(377)		(a)	(272)		107		1,084
Discontinued operations	36		(6)			(3)		2		29
Total ALLL — including discontinued operations	$	1,662	$	(383)		$	(275)	$	109	$	1,113

(a)Excludes a credit for losses on lending-related commitments of $45 million

Nine months ended September 30, 2020

Dollars in millions	December 31, 2019		Impact of ASC 326 Adoption		January 1, 2020		Provision			Charge-offs		Recoveries		September 30, 2020
Commercial and Industrial	$	551	$	(141)	$	410	$	613		$	(232)	$	19	$	810
Commercial real estate:
Real estate — commercial mortgage	143		16		159		135			(18)		3		279
Real estate — construction	22		(7)		15		19			—		—		34
Total commercial real estate loans	165		9		174		154			(18)		3		313
Commercial lease financing	35		8		43		30			(16)		1		58
Total commercial loans	751		(124)		627		797			(266)		23		1,181
Real estate — residential mortgage	7		77		84		21			(2)		1		104
Home equity loans	31		147		178		9			(10)		6		183
Consumer direct loans	34		63		97		52			(30)		6		125
Credit cards	47		35		82		39			(32)		6		95
Consumer indirect loans	30		6		36		16			(22)		12		42
Total consumer loans	149		328		477		137			(96)		31		549
Total ALLL — continuing operations	900		204		1,104		934		(a)	(362)		54		1,730
Discontinued operations	10		31		41		2			(4)		3		42
Total ALLL — including discontinued operations	$	910	$	235	$	1,145	$	936		$	(366)	$	57	$	1,772

(a)Excludes a provision for losses on lending-related commitments of $67 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 September 30, 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	$	9,315	$	5,420	$	4,491	$	3,186	$	2,016	$	3,884	$	18,950	$	102	$	47,364
Criticized (Accruing)	40		115		193		192		236		208		925		27		1,936
Criticized (Nonaccruing)	—		9		18		41		6		16		160		3		253
Total commercial and industrial	9,355		5,544		4,702		3,419		2,258		4,108		20,035		132		49,553
Real estate — commercial mortgage
Risk Rating:
Pass	3,219		1,357		2,589		1,338		687		3,073		690		64		13,017
Criticized (Accruing)	15		20		87		85		123		228		48		2		608
Criticized (Nonaccruing)	—		1		1		5		1		37		4		—		49
Total real estate — commercial mortgage	3,234		1,378		2,677		1,428		811		3,338		742		66		13,674
Real estate — construction
Risk Rating:
Pass	318		619		610		292		104		49		29		6		2,027
Criticized (Accruing)	—		4		13		52		22		1		1		—		93
Criticized (Nonaccruing)	—		—		—		—		—		—		—		—		—
Total real estate — construction	318		623		623		344		126		50		30		6		2,120
Commercial lease financing
Risk Rating:
Pass	655		815		744		348		347		997		—		—		3,906
Criticized (Accruing)	—		4		35		14		13		5		—		—		71
Criticized (Nonaccruing)	—		—		1		1		1		2		—		—		5
Total commercial lease financing	655		819		780		363		361		1,004				—		3,982
Total commercial loans	$	13,562	$	8,364	$	8,782	$	5,554	$	3,556	$	8,500	$	20,807	$	204	$	69,329

As of December 31, 2020	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	2020		2019		2018		2017		2016		Prior						Total
Commercial and Industrial
Risk Rating:
Pass	$	13,100	$	5,487	$	4,040	$	2,617	$	1,967	$	2,709	$	19,832	$	118	$	49,870
Criticized (Accruing)	66		198		174		236		150		279		1,527		22		2,652
Criticized (Nonaccruing)	8		27		71		28		17		7		226		1		385
Total commercial and industrial	13,174		5,712		4,285		2,881		2,134		2,995		21,585		141		52,907
Real estate — commercial mortgage
Risk Rating:
Pass	1,591		2,937		1,737		867		765		3,027		885		43		11,852
Criticized (Accruing)	12		142		81		145		72		255		22		2		731
Criticized (Nonaccruing)	—		1		4		4		2		88		5		—		104
Total real estate — commercial mortgage	1,603		3,080		1,822		1,016		839		3,370		912		45		12,687
Real estate — construction
Risk Rating:
Pass	367		764		510		188		27		22		31		5		1,914
Criticized (Accruing)	—		14		38		18		—		2		1		—		73
Criticized (Nonaccruing)	—		—		—		—		—		—		—		—		—
Total real estate — construction	367		778		548		206		27		24		32		5		1,987
Commercial lease financing
Risk Rating:
Pass	1,076		1,050		534		504		228		901		—		—		4,293
Criticized (Accruing)	10		35		15		26		7		4		—		—		97
Criticized (Nonaccruing)	—		2		2		2		2		1		—		—		9
Total commercial lease financing	1,086		1,087		551		532		237		906		—		—		4,399
Total commercial loans	$	16,230	$	10,657	$	7,206	$	4,635	$	3,237	$	7,295	$	22,529	$	191	$	71,980

(a)Accrued interest of $117 million and $140 million as of September 30, 2021 and December 31, 2020, 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 September 30, 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	$	6,071	$	3,150	$	933	$	104	$	141	$	1,218	—		—		$	11,617
660 to 749	1,300		407		186		47		31		323		—		—		2,294
Less than 660	23		12		19		16		10		151		—		—		231
No Score	19		1		1		2		4		34		1		—		62
Total real estate — residential mortgage	7,413		3,570		1,139		169		186		1,726		1		—		14,204
Home equity loans
FICO Score:
750 and above	919		885		285		113		139		739		$	2,333	$	462	5,875
660 to 749	345		295		130		49		47		222		1,037		158		2,283
Less than 660	20		26		20		14		15		99		336		48		578
No Score	—		2		—		1		—		2		5		1		11
Total home equity loans	1,284		1,208		435		177		201		1,062		3,711		669		8,747
Consumer direct loans
FICO Score:
750 and above	1,287		1,271		594		76		20		137		109		—		3,494
660 to 749	413		350		200		51		13		48		217		—		1,292
Less than 660	19		22		29		12		3		14		61		—		160
No Score	47		45		32		16		9		21		208		—		378
Total consumer direct loans	1,766		1,688		855		155		45		220		595		—		5,324
Credit cards
FICO Score:
750 and above	—		—		—		—		—		—		472		—		472
660 to 749	—		—		—		—		—		—		375		—		375
Less than 660	—		—		—		—		—		—		72		—		72
No Score	—		—		—		—		—		—		9		—		9
Total credit cards	—		—		—		—		—		—		928		—		928
Consumer indirect loans
FICO Score:
750 and above	4		—		—		—		—		36		—		—		40
660 to 749	—		—		—		—		—		26		—		—		26
Less than 660	—		—		—		—		—		11		—		—		11
No Score	—		—		—		—		—		—		—		—		—
Total consumer indirect loans	4		—		—		—		—		73		—		—		77
Total consumer loans	$	10,467	$	6,466	$	2,429	$	501	$	432	$	3,081	$	5,235	$	669	$	29,280

As of December 31, 2020	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	2020		2019		2018		2017		2016		Prior						Total
Real estate — residential mortgage
FICO Score:
750 and above	$	3,595	$	1,620	$	194	$	254	$	537	$	1,211	—		—		$	7,411
660 to 749	710		284		76		48		100		332		—		—		1,550
Less than 660	16		28		21		10		26		170		—		—		271
No Score	1		2		2		7		2		52		—		—		66
Total real estate — residential mortgage	4,322		1,934		293		319		665		1,765		—		—		9,298
Home equity loans
FICO Score:
750 and above	1,043		404		168		202		190		839		$	2,689	$	590	6,125
660 to 749	385		198		82		77		69		253		1,237		206		2,507
Less than 660	27		30		18		20		20		113		426		61		715
No Score	2		2		1		—		—		2		5		1		13
Total home equity loans	1,457		634		269		299		279		1,207		4,357		858		9,360
Consumer direct loans
FICO Score:
750 and above	1,840		883		115		32		16		57		119		—		3,062
660 to 749	479		268		80		22		14		33		254		1		1,151
Less than 660	23		37		21		8		5		10		81		—		185
No Score	65		35		21		21		10		11		153		—		316
Total consumer direct loans	2,407		1,223		237		83		45		111		607		1		4,714
Credit cards
FICO Score:
750 and above	—		—		—		—		—		—		488		—		488
660 to 749	—		—		—		—		—		—		407		—		407
Less than 660	—		—		—		—		—		—		93		—		93
No Score	—		—		—		—		—		—		1		—		1
Total credit cards	—		—		—		—		—		—		989		—		989
Consumer indirect loans
FICO Score:
750 and above	1,092		924		369		188		69		66		—		—		2,708
660 to 749	653		558		232		97		36		47		—		—		1,623
Less than 660	143		163		99		54		25		28		—		—		512
No Score	1		—		—		—		—		—		—		—		1
Total consumer indirect loans	1,889		1,645		700		339		130		141		—		—		4,844
Total consumer loans	$	10,075	$	5,436	$	1,499	$	1,040	$	1,119	$	3,224	$	5,953	$	859	$	29,205

(a)Accrued interest of $95 million and $101 million as of September 30, 2021 and December 31, 2020, 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 September 30, 2021, and December 31, 2020, provides further information regarding Key’s credit exposure.

Aging Analysis of Loan Portfolio(a)

September 30, 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	$	49,161	$	56	$	33	$	50	$	253	$	392	$	49,553
Commercial real estate:
Commercial mortgage	13,606		12		2		5		49		68		13,674
Construction	2,118		1		—		1		—		2		2,120
Total commercial real estate loans	15,724		13		2		6		49		70		15,794
Commercial lease financing	3,973		2		1		1		5		9		3,982
Total commercial loans	$	68,858	$	71	$	36	$	57	$	307	$	471	$	69,329
Real estate — residential mortgage	$	14,096	$	6	$	3	$	6	$	93	$	108	$	14,204
Home equity loans	8,559		22		10		10		146		188		8,747
Consumer direct loans	5,307		6		3		4		4		17		5,324
Credit cards	914		3		3		5		3		14		928
Consumer indirect loans	75		1		—		—		1		2		77
Total consumer loans	$	28,951	$	38	$	19	$	25	$	247	$	329	$	29,280
Total loans	$	97,809	$	109	$	55	$	82	$	554	$	800	$	98,609

(a)Amounts in table represent amortized cost and exclude loans held for sale.

(b)Accrued interest of $211 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.

December 31, 2020	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	$	52,396	$	36	$	50	$	40	$	385	$	511	$	52,907
Commercial real estate:
Commercial mortgage	12,548		9		5		21		104		139		12,687
Construction	1,986		—		—		1		—		1		1,987
Total commercial real estate loans	14,534		9		5		22		104		140		14,674
Commercial lease financing	4,369		21		1		—		8		30		4,399
Total commercial loans	$	71,299	$	66	$	56	$	62	$	497	$	681	$	71,980
Real estate — residential mortgage	$	9,173	$	11	$	3	$	1	$	110	$	125	$	9,298
Home equity loans	9,143		34		20		9		154		217		9,360
Consumer direct loans	4,694		7		4		4		5		20		4,714
Credit cards	972		5		3		7		2		17		989
Consumer indirect loans	4,792		25		7		3		17		52		4,844
Total consumer loans	$	28,774	$	82	$	37	$	24	$	288	$	431	$	29,205
Total loans	$	100,073	$	148	$	93	$	86	$	785	$	1,112	$	101,185

(a)Amounts in table represent amortized cost and exclude loans held for sale.

(b)Accrued interest of $241 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 September 30,				Nine Months Ended September 30,
Dollars in millions	2021		2020		2021		2020
Commercial loans:
Extension of Maturity Date	$	—	$	—	$	5	$	8
Payment or Covenant Modification/Deferment	—		—		7		—
Bankruptcy Plan Modification	—		—		—		—
Increase in new commitment or new money	—		—		—		—
Total	$	—	$	—	$	12	$	8
Consumer loans:
Interest rate reduction	$	3	$	13	$	6	$	22
Other	12		6		18		18
Total	$	15	$	19	$	24	$	40
Total TDRs	$	15	$	19	$	36	$	48

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 September 30,				Nine Months Ended September 30,
Dollars in millions	2021		2020		2021		2020
Balance at beginning of the period	$	334	$	310	$	363	$	347
Additions	17		26		98		65
Payments	(81)		(22)		(162)		(75)
Charge-offs	—		(8)		(29)		(31)
Balance at end of period	$	270	$	306	$	270	$	306

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:

	September 30, 2021					December 31, 2020
	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	35	$	92	$	53	66	$	136	$	92
Commercial real estate:
Commercial mortgage	3	50		29		7	62		50
Total commercial real estate loans	3	50		29		7	62		50
Total commercial loans	38	142		82		73	198		142
Real estate — residential mortgage	218	26		25		258	35		34
Home equity loans	569	38		33		630	41		37
Consumer direct loans	201	3		3		212	3		3
Credit cards	328	2		2		356	2		2
Consumer indirect loans	23	1		1		861	15		11
Total consumer loans	1,339	70		64		2,317	96		87
Total nonperforming TDRs	1,377	212		146		2,390	294		229
Prior-year accruing:(a)
Commercial and industrial	7	49		26		3	5		—
Commercial real estate
Commercial mortgage	1	—		—		—	—		—
Total commercial real estate loans	1	—		—		—	—		—
Total commercial loans	8	49		26		3	5		—
Real estate — residential mortgage	464	39		34		485	37		31
Home equity loans	1,648	100		78		1,781	106		83
Consumer direct loans	206	5		3		163	4		3
Credit cards	564	4		1		536	3		1
Consumer indirect loans	150	16		8		775	29		16
Total consumer loans	3,032	164		124		3,740	179		134
Total prior-year accruing TDRs	3,040	163		124		3,743	184		134
Total TDRs	4,417	$	375	$	270	6,133	$	478	$	363

(a)All TDRs that were restructured prior to January 1, 2021, and January 1, 2020, 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 September 30,				Nine months ended September 30,
Dollars in millions	2021		2020		2021		2020
Balance at the end of the prior period	$	152	$	198	$	197	$	68
Liability for credit losses on contingent guarantees at the end of the prior period	—		—		—		7
Cumulative effect from change in accounting principle (a), (b)	—		—		—		66
Balance at beginning of period	152		198		197		141
Provision (credit) for losses on off balance sheet exposures	—		10		(45)		67
Balance at end of period	$	152	$	208	$	152	$	208

(a)The cumulative effect from change in accounting principle relates to the January 1, 2020, adoption of ASU 2016-13.

(b)The nine months ended September 30, 2020, amount excludes $4 million related to the provision for other financial assets.

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Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2021

Fair Value Disclosures [Abstract]

Fair Value of Assets and Liabilities Measured on Recurring Basis

The following tables present these assets and liabilities at September 30, 2021, and December 31, 2020.

	September 30, 2021								December 31, 2020
	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	—		$	747	—		$	747	—		$	633	—		$	633
States and political subdivisions	—		91		—		91		—		24		—		24
Other mortgage-backed securities	—		21		—		21		—		47		—		47
Other securities	$	17	13		—		30		—		13		—		13
Total trading account securities	17		872		—		889		—		717		—		717
Commercial loans	—		13		—		13		—		18		—		18
Total trading account assets	17		885		—		902		—		735		—		735
Securities available for sale:
U.S. Treasury, agencies and corporations	—		8,938		—		8,938		—		1,000		—		1,000
States and political subdivisions	—		—		—		—		—		—		—		—
Agency residential collateralized mortgage obligations	—		16,104		—		16,104		—		14,273		—		14,273
Agency residential mortgage-backed securities	—		5,408		—		5,408		—		2,164		—		2,164
Agency commercial mortgage-backed securities	—		10,121		—		10,121		—		10,106		—		10,106
Other securities	—		1		$	22	23		—		—		$	13	13
Total securities available for sale	—		40,572		22		40,594		—		27,543		13		27,556
Other investments:
Principal investments:
Direct	—		—		1		1		—		—		1		1
Indirect (measured at NAV) (a)	—		—		—		48		—		—		—		53
Total principal investments	—		—		1		49		—		—		1		54
Equity investments:
Direct	—		—		9		9		—		—		13		13
Direct (measured at NAV) (a)	—		—		—		16		—		—		—		7
Indirect (measured at NAV) (a)	—		—		—		6		—		—		—		7
Total equity investments	—		—		9		31		—		—		13		27
Total other investments	—		—		10		80		—		—		14		81
Loans, net of unearned income (residential)	—		—		10		10		—		—		11		11
Loans held for sale (residential)	—		237		—		237		—		264		—		264
Derivative assets:
Interest rate	—		920		34		954		—		1,528		56		1,584
Foreign exchange	65		15		—		80		$	78	31		—		109
Commodity	—		1,799		—		1,799		—		424		2		426
Credit	—		—		—		—		—		—		1		1
Other	—		16		6		22		—		26		32		58
Derivative assets	65		2,750		40		2,855		78		2,009		91		2,178
Netting adjustments (b)	—		—		—		(302)		—		—		—		(380)
Total derivative assets	65		2,750		40		2,553		78		2,009		91		1,798
Accrued income and other assets	—		—		—		—		—		—		—		—
Total assets on a recurring basis at fair value	$	82	$	44,444	$	82	$	44,376	$	78	$	30,551	$	129	$	30,445
LIABILITIES MEASURED ON A RECURRING BASIS
Bank notes and other short-term borrowings:
Short positions	$	212	$	555	—		$	767	$	256	$	503	—		$	759
Derivative liabilities:
Interest rate	—		273		—		273		—		288		—		288
Foreign exchange	60		15		—		75		72		31		—		103
Commodity	—		1,805		—		1,805		—		408		—		408
Credit	—		1		$	6	7		—		—		$	11	11
Other	—		11		—		11		—		16		—		16
Derivative liabilities	60		2,105		6		2,171		72		743		11		826
Netting adjustments (b)	—		—		—		(1,911)		—		—		—		(675)
Total derivative liabilities	60		2,105		6		260		72		743		11		151
Total liabilities on a recurring basis at fair value	$	272	$	2,660	$	6	$	1,027	$	328	$	1,246	$	11	$	910

(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 September 30, 2021, as well as financial support provided for the three and nine months ended September 30, 2021, and September 30, 2020.

					Financial support provided
					Three months ended September 30,					Nine months ended September 30,
	September 30, 2021				2021			2020		2021			2020
Dollars in millions	Fair Value		Unfunded Commitments		Funded Commitments		Funded Other	Funded Commitments	Funded Other	Funded Commitments		Funded Other	Funded Commitments		Funded Other
INVESTMENT TYPE
Direct investments	$	1	—		—		—	—	—	—		—	—		—
Indirect investments (measured at NAV) (a)	48		$	13	$	—	—	1	—	$	4	—	$	1	—
Total	$	49	$	13	$	—	—	1	—	$	4	—	$	1	—

(a) Our indirect investments consist of buyout funds, venture capital funds, and fund of funds. These investments are generally not redeemable. Instead, distributions are received through the liquidation of the underlying investments of the fund. An investment in any one of these funds typically can be sold only with the approval of the fund’s general partners. At September 30, 2021, no significant liquidation of the underlying investments has been communicated to Key. The purpose of funding our capital commitments to these investments is to allow the funds to make additional follow-on investments and pay fund expenses until the fund dissolves. We, and all other investors in the fund, are obligated to fund the full amount of our respective capital commitments to the fund based on our and their respective ownership percentages, as noted in the applicable Limited Partnership Agreement.

Change in Fair Values of Level 3 Financial Instruments

The following table shows the components of the change in the fair values of our Level 3 financial instruments measured at fair value on a recurring basis for the three and nine months ended September 30, 2021, and September 30, 2020. 

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
Nine months ended September 30, 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		—		—			—		(2)		—	1		—			—			10		—
Derivative instruments (b)
Interest rate	56		—		(20)		(c)	$	1	(7)		—	—		$	21	(d)	(17)		(d)	34		—
Credit	(10)		—		4		(c)	—		—		—	—		—			—			(6)		—
Other (e)	32		—		(3)		(c)	—		—		—	(23)		—			—			6		—
Three months ended September 30, 2021
Securities available for sale
Other securities	$	22	—		—			—		—		—	—		—			—			$	22	—
Other investments
Principal investments
Direct (a)	1		—		—			—		—		—	—		—			—			1		—
Equity investments
Direct (a)	9		—		—			—		—		—	—		—			—			9		—
Loans held for sale (residential)	—		—		—			—		—		—	—		—			—			—		—
Loans, net of unearned income (residential)	11		—		—			—		(1)		—	—		—			—			10		—
Derivative instruments (b)
Interest rate	35		—		$	(5)	(c)	$	1	$	(1)	—	—		$	9	(d)	$	(5)	(d)	34		—
Credit	(5)		—		—			(1)		—		—	—		—						(6)		—
Other (e)	13		—		—		(c)	—		—		—	$	(7)	—			—			6		—

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
Nine months ended September 30, 2020
Trading account assets
Other mortgage-backed securities	—		—		—			—		$	(9)	—		—		$	36		—			$	27	—
Securities available for sale
Other securities	$	11	$	1	—			—		—		—		—		—			—			12		—
Other investments
Principal investments
Direct (a)	1		—		—			—		—		—		—		—			—			1		—
Equity investments
Direct (a)	12		—		$	—		—		—		—		—		—			—			12		—
Loans held for sale (residential)	—		—		—			—		(10)		—		$	11	—			—			1		—
Loans, net of unearned income (residential)	4		—		—			—		(2)		—		6		—			—			8		—
Derivative instruments (b)
Interest rate	22		—		$	18	(c)	$	14	(5)		—		—		$	98	(d)	$	(66)	(d)	81		—
Credit	(8)		—		(6)		(c)	$	1			—		—		—						(13)		—
Other (e)	5		—		—			—		—		—		39		—			—			44		—
Three months ended September 30, 2020
Trading account assets
Other mortgage-backed securities	$	36	—		—			—		$	(9)	$	—	—		$	—		—			$	27	$	—
Securities available for sale
Other securities	12		—		—			—		—		—		—		—			—			12		—
Other investments
Principal investments
Direct (a)	1		—		—			—		—		—		—		—			—			1		—
Equity investments
Direct (a)	12				$	—																12		—
Loans held for sale (residential)	—		—		—			—		$	—	—		$	1	—			—			1		—
Loans, net of unearned income (residential)	5		—		—			—		—		—		3		—			—			8		—
Derivative instruments (b)
Interest rate	52				$	(3)	(c)	$	2	$	(4)					$	36	(d)	$	(2)	(d)	81
Credit	(17)		—		4		(c)	—		—		—		—		—			—			(13)		—
Other (e)	46		—		5			—				—		(7)		—						44		—

(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 September 30, 2021, and December 31, 2020:

	September 30, 2021						December 31, 2020
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	—	—	$	5	$	5	—	—		$	108	$	108
Accrued income and other assets	—	—	74		74		—	$	—	56		56
Total assets on a nonrecurring basis at fair value	—	—	$	79	$	79	—	—		$	164	$	164

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 September 30, 2021, and December 31, 2020, along with the valuation

techniques used, are shown in the following table:

	Level 3 Asset (Liability)			Valuation  Technique	Significant Unobservable Input	Range (Weighted-Average) (b), (c)
Dollars in millions	September 30, 2021		December 31, 2020			September 30, 2021	December 31, 2020
Recurring
Securities available-for-sale:
Other securities	$	22	13	Discounted cash flows	Discount rate	N/A (16.61%)	N/A (15.09%)
					Marketability discount	N/A (30.00%)	N/A (30.00%)
					Volatility factor	N/A (55.00%)	N/A (44.00%)
Other investments:(a)
Equity investments
Direct	9		13	Discounted cash flows	Discount rate	N/A (14.15%)	13.90 - 17.04% (15.47%)
					Marketability discount	N/A	N/A (30.00%)
					Volatility factor	N/A	N/A (52.00%)
Loans, net of unearned income (residential)	10		11	Market comparable pricing	Comparability factor	64.50 - 97.30% (94.13%)	64.50-99.04% (94.17%)
Derivative instruments:
Interest rate	34		56	Discounted cash flows	Probability of default	.02 - 100% (16.60%)	.02 - 100% (7.90%)
					Internal risk rating	1 - 19 (15.133)	1 - 19 (9.675)
					Loss given default	0 - 1 (.500)	0 - 1 (.483)
Credit (assets)	—		1	Discounted cash flows	Probability of default	.02 - 100% (3.10%)	.02 - 100% (4.70%)
					Internal risk rating	1 - 19 (9.024)	1 - 19 (10.478)
					Loss given default	0 - 1 (.498)	0 - 1 (.490)
Credit (liabilities)	(6)		(11)	Discounted cash flows	Probability of default	.02 - 100% (14.91%)	.02 - 100% (15.45%)
					Internal risk rating	1 - 19 (8.197)	1 - 19 (8.555)
					Loss given default	0 - 1 (.422)	0 - 1 (.431)
Other(d)	6		32	Discounted cash flows	Loan closing rates	5.90 - 99.70% (85.17%)	36.95 - 99.68% (77.51%)
Nonrecurring
Collateral-dependent loans	5		108	Fair value of collateral	Discount rate	0 - 0.00% (0.00%)	0 - 100.00% (36.00%)
Accrued income and other assets:
OREO and other Level 3 assets (e)	12		16	Appraised value	Appraised value	N/M	N/M

(a)Principal investments, direct is excluded from this table as the balance at September 30, 2021, and December 31, 2020, is insignificant (less than $1 million).

(b)The weighted average of significant unobservable inputs is calculated using a weighting relative to fair value.

(c)For significant unobservable inputs with no range, a single figure is reported to denote the single quantitative factor used.

(d)Amounts represent interest rate lock commitments.

(e)Excludes $62 million and $40 million pertaining to servicing assets at September 30, 2021, and December 31, 2020, 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 September 30, 2021, and December 31, 2020, are shown in the following tables. Assets and liabilities are further arranged by measurement category.

	September 30, 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)	$	902	$	17	$	885	—		—		—			$	902
Other investments (b)	607		—		—		$	537	$	70	—			607
Loans, net of unearned income (residential) (d)	10		—		—		10		—		—			10
Loans held for sale (residential) (b)	237		—		237		—		—		—			237
Derivative assets - trading (b)	2,469		65		2,739		7		—		$	(342)	(f)	2,469
Fair value - OCI
Securities available for sale (b)	40,594		—		40,572		22		—		—			40,594
Derivative assets - hedging (b)(g)	84		—		45		—		—		39		(f)	84
Amortized cost
Held-to-maturity securities (c)	8,423		—		8,664		—		—		—			8,664
Loans, net of unearned income (d)	97,515		—		—		97,435		—		—			97,435
Loans held for sale (b)	1,568		—		—		1,568		—		—			1,568
Other
Cash and other short-term investments (a)	20,371		20,371		—		—		—		—			20,371
LIABILITIES (by measurement category)
Fair value - net income
Derivative liabilities - trading (b)	$	249	$	60	$	2,093	$	7	—		$	(1,911)	(f)	$	249
Fair value - OCI
Derivative liabilities - hedging (b)(g)	11		—		11		—		—		—		(f)	11
Amortized cost
Time deposits (e)	4,205		—		4,214		—		—		—			4,214
Short-term borrowings (a)	995		212		783		—		—		—			995
Long-term debt (e)	13,165		13,076		716		—		—		—			13,792
Other
Deposits with no stated maturity (a)	147,726		—		147,726		—		—		—			147,726

	December 31, 2020
			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)	$	735	—		$	735	—		—		—			$	735
Other investments (b)	621		—		—		$	555	$	66	—			621
Loans, net of unearned income (residential) (d)	11		—		—		11		—		—			11
Loans held for sale (residential) (b)	264		—		264		—		—		—			264
Derivative assets - trading (b)	1,676		$	78	1,939		91		—		$	(433)	(f)	1,675
Fair value - OCI
Securities available for sale (b)	27,556		—		27,543		13		—		—			27,556
Derivative assets - hedging (b)(g)	123		—		70		—		—		53		(f)	123
Amortized cost
Held-to-maturity securities (c)	7,595		—		8,023		—		—		—			8,023
Loans, net of unearned income (d)	99,548		—		—		98,946		—		—			98,946
Loans held for sale (b)	1,319		—		—		1,319		—		—			1,319
Other
Short-term investments - U.S. Treasury Bills (b)	—		—		—		—		—		—			—
Cash and other short-term investments (a)	17,285		17,285		—		—		—		—			17,285
LIABILITIES (by measurement category)
Fair value - net income
Derivative liabilities - trading (b)	$	154	$	72	$	746	$	11	—		$	(675)	(f)	$	154
Fair value - OCI
Derivative liabilities - hedging (b)(g)	(3)		—		(3)		—		—		—		(f)	(3)
Amortized cost
Time deposits (e)	5,743		—		5,765		—		—		—			5,765
Short-term borrowings (a)	979		256		723		—		—		—			979
Long-term debt (e)	13,709		13,925		734		—		—		—			14,659
Other
Deposits with no stated maturity (a)	129,539		—		129,539		—		—		—			129,539

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 2020 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 are based on discounted cash flows utilizing relevant market inputs.

(f)Netting adjustments represent the amounts recorded to convert our derivative assets and liabilities from a gross basis to a net basis in accordance with the applicable accounting guidance. The net basis takes into account the impact of bilateral collateral and master netting agreements that allow us to settle all derivative contracts with a single counterparty on a net basis and to offset the net derivative position with the related cash collateral. Total derivative assets and liabilities include these netting adjustments.

(g)Derivative assets-hedging and derivative liabilities-hedging includes both cash flow and fair value hedges. Additional information regarding our accounting policies for cash flow and fair value hedges is provided in Note 1 (“1. Summary of Significant Accounting Policies”) under the heading “Derivatives and Hedging” beginning on page 114 of our 2020 Form 10-K.

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Securities (Tables)

9 Months Ended

Sep. 30, 2021

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.

	September 30, 2021								December 31, 2020
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	$	8,960	—		$	22	$	8,938	$	1,000	—		—		$	1,000
Agency residential collateralized mortgage obligations	16,143		$	168	207		16,104		14,001		$	297	$	25	14,273
Agency residential mortgage-backed securities	5,409		51		52		5,408		2,094		70		—		2,164
Agency commercial mortgage-backed securities	10,141		253		273		10,121		9,707		432		33		10,106
Other securities	8		15				23		8		5		—		13
Total securities available for sale	$	40,661	$	487	$	554	$	40,594	$	26,810	$	804	$	58	$	27,556
HELD-TO-MATURITY SECURITIES
Agency residential collateralized mortgage obligations	$	2,485	$	69	—		$	2,554	$	3,775	$	124	—		$	3,899
Agency residential mortgage-backed securities	184		7		—		191		271		14		—		285
Agency commercial mortgage-backed securities	2,901		165		—		3,066		3,515		290		—		3,805
Asset-backed securities (c)	2,837		—		—		2,837		19		—		—		19
Other securities	16		—		—		16		15		—		—		15
Total held-to-maturity securities	$	8,423	$	241	—		$	8,664	$	7,595	$	428	$	—	$	8,023

(a)Amortized cost amounts exclude accrued interest receivable which is recorded within Other Assets on the balance sheet. At September 30, 2021, accrued interest receivable on available for sale securities and held-to-maturity securities totaled $53 million and $15 million, respectively.

(b)Amortized cost amounts exclude accrued interest receivable which is recorded within Other Assets on the balance sheet. At December 31, 2020, accrued interest receivable on available for sale securities and held-to-maturity securities totaled $42 million and $15 million, respectively.

(c)Includes $2.8 billion of securities as of September 30, 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 September 30, 2021, and December 31, 2020.

	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
September 30, 2021
Securities available for sale:
U.S Treasury, agencies, and corporations	$	8,938	$	22		—		—			$	8,938	$	22
Agency residential collateralized mortgage obligations	7,647		150			$	868	$	57		8,515		207
Agency residential mortgage-backed securities	3,619		52			6		—		(a)	3,625		52
Agency commercial mortgage-backed securities	4,219		215			1,093		58			5,312		273
Held-to-maturity securities:
Asset-backed securities	1		—		(a)	1		—			2		—
Other securities	8,460		—		(a)	—		—		(a)	8,460		—
Total securities in an unrealized loss position	$	32,884	$	439		$	1,968	$	115		$	34,852	$	554
December 31, 2020
Securities available for sale:
Agency residential collateralized mortgage obligations	$	2,110	$	25		—		—			$	2,110	$	25
Agency residential mortgage-backed securities	6		—		(b)	$	5	—		(b)	11		—
Agency commercial mortgage-backed securities	2,709		33			—		—			2,709		33
Held-to-maturity securities:
Agency residential collateralized mortgage obligations	—		—			24		—		(b)	24		—
Other securities	5		—		(b)	—		—			5		—
Total securities in an unrealized loss position	$	4,830	$	58		$	29	—			$	4,859	$	58

(a)At September 30, 2021, gross unrealized losses totaled less than $1 million for asset-backed securities and other securities held-to-maturity with a loss duration of less than 12 months and asset-backed securities held-to-maturity with a loss duration of 12 months or longer. At September 30, 2021, gross unrealized losses totaled less than $1 million for agency residential mortgage-backed securities available for sale with a loss duration greater than 12 months.

(b)At December 31, 2020, gross unrealized losses totaled less than $1 million for agency residential mortgage-backed securities available for sale with a loss duration of less than 12 months and less than $1 million for other securities held-to-maturity with a loss duration of less than 12 months. At December 31, 2020, gross unrealized losses totaled less than $1 million for agency residential mortgage-backed securities available for sale with a loss duration greater than 12 months or longer and less than $1 million for agency residential collateralized mortgage obligations 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.

September 30, 2021	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	$	230	$	247	$	93	$	95
Due after one through five years	19,818		20,076		6,330		6,452
Due after five through ten years	17,312		17,128		2,000		2,117
Due after ten years	3,301		3,143		—		—
Total	$	40,661	$	40,594	$	8,423	$	8,664

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Derivatives and Hedging Activities (Tables)

9 Months Ended

Sep. 30, 2021

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 September 30, 2021, and December 31, 2020. 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:

	September 30, 2021						December 31, 2020
			Fair Value						Fair Value
Dollars in millions	Notional Amount		Derivative Assets		Derivative Liabilities		Notional Amount		Derivative Assets		Derivative Liabilities
Derivatives designated as hedging instruments:
Interest rate	$	36,423	$	45	$	11	$	36,135	$	70	$	(3)
Derivatives not designated as hedging instruments:
Interest rate	72,688		909		262		78,424		1,514		291
Foreign exchange	7,378		80		75		6,385		109		103
Commodity	15,090		1,799		1,805		9,702		426		408
Credit	339		—		7		423		1		11
Other (a)	3,652		22		11		4,951		58		16
Total	99,147		2,810		2,160		99,885		2,108		829
Netting adjustments (b)	—		(302)		(1,911)		—		(380)		(675)
Net derivatives in the balance sheet	135,570		2,553		260		136,020		1,798		151
Other collateral (c)	—		(1)		(30)		—		(2)		(11)
Net derivative amounts	$	135,570	$	2,552	$	230	$	136,020	$	1,796	$	140

(a)Other derivatives include interest rate lock commitments and forward sale commitments related to our residential mortgage banking activities, forward purchase and sales contracts consisting of contractual commitments associated with “to be announced” securities and when-issued securities, and other customized derivative contracts.

(b)Netting adjustments represent the amounts recorded to convert our derivative assets and liabilities from a gross basis to a net basis in accordance with the applicable accounting guidance.

(c)Other collateral represents the amount that cannot be used to offset our derivative assets and liabilities from a gross basis to a net basis in accordance with the applicable accounting guidance. The other collateral consists of securities and is exchanged under bilateral collateral and master netting agreements that allow us to offset the net derivative position with the related collateral. The application of the other collateral cannot reduce the net derivative position below zero. Therefore, excess other collateral, if any, is not reflected above.

Pre-Tax Net Gains (Losses) on Fair Value Hedges

The following tables summarize the amounts that were recorded on the balance sheet as of September 30, 2021, and December 31, 2020, related to cumulative basis adjustments for fair value hedges.

	September 30, 2021
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	$	8,077	$	205
Interest rate contracts	Securities Available for Sale(c)	6,280		168
	December 31, 2020
	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	$	8,182	$	416
Interest rate contracts	Securities Available for Sale(c)	2,080		21

(a)The carrying amount represents the portion of the liability designated as the hedged item.

(b)Basis adjustments related to de-designated hedged items that no longer qualify as fair value hedges reduced the hedge accounting basis adjustment by $7 million and $8 million at September 30, 2021, and December 31, 2020, 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 last layer expected to be remaining at the end of the relationship. At September 30, 2021, and December 31, 2020, the amortized costs of the closed portfolios in these hedging relationships was $7.7 billion and $2.5 billion, respectively.

Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location

The following tables summarize the effect of fair value and cash flow hedge accounting on the income statement for the three- and nine-month periods ended September 30, 2021, and September 30, 2020.

	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		Interest expense - deposits		Other income
Three months ended September 30, 2021
Total amounts presented in the consolidated statement of income	$	(54)	$	882	$	135	$	235	$	(15)	$	25
Net gains (losses) on fair value hedging relationships
Interest contracts
Recognized on hedged items	37		—		(38)		—		—		—
Recognized on derivatives designated as hedging instruments	(8)		—		39		—		—		—
Net income (expense) recognized on fair value hedges	$	29	—		$	1	—		—		—
Net gain (loss) on cash flow hedging relationships
Interest contracts
Realized gains (losses) (pre-tax) reclassified from AOCI into net income	$	(1)	$	79	$	—	$	(1)	—		—
Net income (expense) recognized on cash flow hedges	$	(1)	$	79	—		$	(1)	—		—
Three months ended September 30, 2020
Total amounts presented in the consolidated statement of income	$	(64)	$	927	$	115	$	146	$	(54)	$	28
Net gains (losses) on fair value hedging relationships
Interest contracts
Recognized on hedged items	$	47	—		—		—		—		—
Recognized on derivatives designated as hedging instruments	(7)		—		—		—		—		—
Net income (expense) recognized on fair value hedges	$	40	—		—		—		—		—
Net gain (loss) on cash flow hedging relationships
Interest contracts
Realized gains (losses) (pre-tax) reclassified from AOCI into net income	$	(1)	$	100	—		—		—		—
Net income (expense) recognized on cash flow hedges	$	(1)	$	100	—		—		—		—

	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		Interest expense - deposits		Other income
Nine months ended September 30, 2021
Total amounts presented in the consolidated statement of income	$	(168)	$	2,659	$	398	$	614	$	(52)	$	89
Net gains (losses) on fair value hedging relationships
Interest contracts
Recognized on hedged items	210		—		(147)		—		—		—
Recognized on derivatives designated as hedging instruments	(113)		—		147		—		—		—
Net income (expense) recognized on fair value hedges	$	97	—		—		—		—		—
Net gain (loss) on cash flow hedging relationships
Interest contracts
Realized gains (losses) (pre-tax) reclassified from AOCI into net income	$	(3)	$	253	—		—		—		—
Net income (expense) recognized on cash flow hedges	$	(3)	$	253	—		—		—		—
Nine months ended September 30, 2020
Total amounts presented in the consolidated statement of income	$	(225)	$	2,933	$	365	$	418	$	(319)	$	(27)
Net gains (losses) on fair value hedging relationships
Interest contracts
Recognized on hedged items	$	(252)	—		—		—		—		—
Recognized on derivatives designated as hedging instruments	343		—		—		—		—		—
Net income (expense) recognized on fair value hedges	$	91	—		—		—		—		—
Net gain (loss) on cash flow hedging relationships
Interest contracts
Realized gains (losses) (pre-tax) reclassified from AOCI into net income	$	(3)	$	224	—		—		—		—
Net income (expense) recognized on cash flow hedges	$	(3)	$	224	—		—		—		—

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- and nine-month periods ended September 30, 2021, and September 30, 2020, 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 September 30, 2021
Cash Flow Hedges
Interest rate	$	(2)	Interest income — Loans	$	79
Interest rate	—		Interest expense — Long-term debt	(1)
Interest rate	4		Investment banking and debt placement fees	(1)
Total	$	2		$	77
Three months ended September 30, 2020
Cash Flow Hedges
Interest rate	$	5	Interest income — Loans	$	100
Interest rate	—		Interest expense — Long-term debt	(1)
Interest rate	10		Investment banking and debt placement fees	—
Total	$	15		$	99

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(a)
Nine months ended September 30, 2021
Cash Flow Hedges
Interest rate	$	(144)	Interest income — Loans	$	253
Interest rate	2		Interest expense — Long-term debt	(3)
Interest rate	9		Investment banking and debt placement fees	—
Net Investment Hedges
Foreign exchange contracts	—		Other Income	—
Total	$	(133)		$	250
Nine months ended September 30, 2020
Cash Flow Hedges
Interest rate	$	629	Interest income — Loans	$	224
Interest rate	(6)		Interest expense — Long-term debt	(3)
Interest rate	(10)		Investment banking and debt placement fees	—
Net Investment Hedges
Foreign exchange contracts	—		Other Income	—
Total	$	613		$	221

Pre-Tax Net Gains (Losses) on Derivatives Not Designated as Hedging Instruments

The following table summarizes the pre-tax net gains (losses) on our derivatives that are not designated as hedging instruments for the three- and nine-month periods ended September 30, 2021, and September 30, 2020, and where they are recorded on the income statement.

	Three months ended September 30, 2021								Three months ended September 30, 2020
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	$	8	—		—		$	8	$	5	—		$	(1)	$	4
Foreign exchange	12		—		—		12		9		—		—		9
Commodity	4		—		—		4		5		—		—		5
Credit	1		—		$	(9)	(8)		4		—		(8)		(4)
Other	—		$	—	—		—		—		$	28	(8)		20
Total net gains (losses)	$	25	$	—	$	(9)	$	16	$	23	$	28	$	(17)	$	34

	Nine months ended September 30, 2021								Nine months ended September 30, 2020
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	$	19	—		$	1	$	20	$	23	—		$	(10)	$	13
Foreign exchange	34		—		—		34		29		—		—		29
Commodity	12		—		—		12		13		—		—		13
Credit	5		—		(27)		(22)		(6)		—		(20)		(26)
Other	—		$	13	(22)		(9)		—		$	36	17		53
Total net gains (losses)	$	70	$	13	$	(48)	$	35	$	59	$	36	$	(13)	$	82

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	September 30, 2021		December 31, 2020
Interest rate	$	838	$	1,448
Foreign exchange	38		52
Commodity	1,606		178
Credit	—		(1)
Other	22		58
Derivative assets before collateral	2,504		1,735
Plus(Less): Related collateral	49		63
Total derivative assets	$	2,553	$	1,798

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 September 30, 2021, and December 31, 2020. 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.

	September 30, 2021					December 31, 2020
Dollars in millions	Notional Amount		Average Term (Years)	Payment / Performance Risk		Notional Amount		Average Term (Years)	Payment / Performance Risk
Other	$	146	13.04	17.88	%	$	227	12.76	19.53	%
Total credit derivatives sold	$	146	—	—		$	227	—	—

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 September 30, 2021, and December 31, 2020. The additional collateral amounts were calculated based on scenarios under which KeyBank’s ratings are downgraded one, two, or three ratings as of September 30, 2021, and December 31, 2020, and take into account all collateral already posted. A similar calculation was performed for KeyCorp, and no additional collateral would have been required as of September 30, 2021, and December 31, 2020. 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.

	September 30, 2021				December 31, 2020
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	$	1	$	1
Two rating downgrades	3		3		1		1
Three rating downgrades	3		3		1		1

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Mortgage Servicing Assets (Tables)

9 Months Ended

Sep. 30, 2021

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 September 30,				Nine months ended September 30,
Dollars in millions	2021		2020		2021		2020
Balance at beginning of period	$	600	$	565	$	578	$	539
Servicing retained from loan sales	31		30		88		107
Purchases	8		6		22		24
Amortization	(30)		(29)		(89)		(88)
Temporary (impairments) recoveries	—		(6)		10		(16)
Balance at end of period	$	609	$	566	$	609	$	566
Fair value at end of period	$	735	$	685	$	735	$	685

Changes in the carrying amount of residential mortgage servicing assets are summarized as follows:

	Three months ended September 30,				Nine months ended September 30,
Dollars in millions	2021		2020		2021		2020
Balance at beginning of period	$	77	$	46	$	58	$	46
Servicing retained from loan sales	9		12		32		25
Purchases	—		—		—		—
Amortization	(4)		(4)		(14)		(9)
Temporary (impairments) recoveries	3		(1)		9		(9)
Balance at end of period	$	85	$	53	$	85	$	53
Fair value at end of period	$	89	$	54	$	89	$	54

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 September 30, 2021, and September 30, 2020, along with the valuation techniques, are shown in the following table: 

dollars in millions		September 30, 2021						September 30, 2020
Valuation Technique	Significant Unobservable Input	Range				Weighted Average		Range				Weighted Average
Discounted cash flow	Expected defaults	1.00	%	2.00	%	1.15	%	1.00	%	2.00	%	1.17	%
	Residual cash flows discount rate	7.64	%	10.49	%	9.31	%	7.72	%	10.66	%	9.30	%
	Escrow earn rate	1.04	%	1.37	%	1.04	%	0.92	%	1.16	%	1.05	%
	Loan assumption rate	—	%	1.71	%	1.40	%	—	%	1.78	%	1.39	%

The range and weighted-average of the significant unobservable inputs used to fair value our mortgage servicing assets at September 30, 2021, and September 30, 2020, along with the valuation techniques, are shown in the following table:

		September 30, 2021									September 30, 2020
Valuation Technique	Significant Unobservable Input	Range						Weighted Average			Range						Weighted Average
Discounted cash flow	Prepayment speed	8.03		%	48.88		%	11.67		%	12.35		%	53.36		%	16.89		%
	Discount rate	7.50		%	8.57		%	7.54		%	7.51		%	8.80		%	7.57		%
	Servicing cost	$	62.00		$	4,375		$	68.15		$	62.00		$	5,125		$	81.67

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Leases (Tables)

9 Months Ended

Sep. 30, 2021

Leases [Abstract]

Operating Lease, Lease Income

The components of equipment leasing income are summarized in the table below:

	Three months ended September 30,				Nine months ended September 30,
Dollars in millions	2021		2020		2021		2020
Sales-type and direct financing leases
Interest income on lease receivable	$	13	$	36	$	59	$	91
Interest income related to accretion of unguaranteed residual asset	9		(7)		12		(1)
Total sales-type and direct financing lease income	22		29		71		90
Operating leases
Operating lease income related to lease payments	31		34		95		103
Other operating leasing gains	6		4		16		25
Total operating lease income and other leasing gains	36		38		111		128
Total lease income	$	58	$	67	$	182	$	218

Sales-type Lease, Lease Income

The components of equipment leasing income are summarized in the table below:

	Three months ended September 30,				Nine months ended September 30,
Dollars in millions	2021		2020		2021		2020
Sales-type and direct financing leases
Interest income on lease receivable	$	13	$	36	$	59	$	91
Interest income related to accretion of unguaranteed residual asset	9		(7)		12		(1)
Total sales-type and direct financing lease income	22		29		71		90
Operating leases
Operating lease income related to lease payments	31		34		95		103
Other operating leasing gains	6		4		16		25
Total operating lease income and other leasing gains	36		38		111		128
Total lease income	$	58	$	67	$	182	$	218

Direct Financing Lease, Lease Income

The components of equipment leasing income are summarized in the table below:

	Three months ended September 30,				Nine months ended September 30,
Dollars in millions	2021		2020		2021		2020
Sales-type and direct financing leases
Interest income on lease receivable	$	13	$	36	$	59	$	91
Interest income related to accretion of unguaranteed residual asset	9		(7)		12		(1)
Total sales-type and direct financing lease income	22		29		71		90
Operating leases
Operating lease income related to lease payments	31		34		95		103
Other operating leasing gains	6		4		16		25
Total operating lease income and other leasing gains	36		38		111		128
Total lease income	$	58	$	67	$	182	$	218

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Goodwill (Tables)

9 Months Ended

Sep. 30, 2021

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 SEPTEMBER 30, 2020	$	1,752	$	912	$	2,664
BALANCE AT BALANCE AT DECEMBER 31, 2020	$	1,752	$	912	$	2,664
AQN Strategies acquisition	9		—		9
BALANCE AT SEPTEMBER 30, 2021	$	1,761	$	912	$	2,673

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Variable Interest Entities (Tables)

9 Months Ended

Sep. 30, 2021

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 September 30, 2021, and December 31, 2020. 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 156 of our 2020 Form 10-K.

	Unconsolidated VIEs
Dollars in millions	Total Assets		Total Liabilities		Maximum Exposure to Loss
September 30, 2021
LIHTC investments	$	7,389	$	2,861	$	1,882
December 31, 2020
LIHTC investments	$	6,914	$	2,765	$	1,823

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 September 30, 2021, and December 31, 2020.

	Unconsolidated VIEs
Dollars in millions	Total Assets		Total Liabilities		Maximum Exposure to Loss
September 30, 2021
Indirect investments	$	10,199	$	189	$	61
December 31, 2020
Indirect investments	$	10,899	$	168	$	78

	Other unconsolidated VIEs
Dollars in millions	Total Assets		Total Liabilities
September 30, 2021
Other unconsolidated VIEs	$	3,166	$	1
December 31, 2020
Other unconsolidated VIEs	$	351	$	1

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Securities Financing Activities (Tables)

9 Months Ended

Sep. 30, 2021

Banking and Thrift, Other Disclosures [Abstract]

Summarized Securities Financing Agreements

The following table summarizes our securities financing agreements at September 30, 2021, and December 31, 2020:

	September 30, 2021							December 31, 2020
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	$	11	$	(11)	—		—	$	6	$	(6)	—		—
Securities borrowed	$	500	$	—	$	(500)	—	$	500	$	—	$	(500)	—
Total	$	511	$	(11)	$	(500)	—	$	506	$	(6)	$	(500)	—
Offsetting of financial liabilities:
Repurchase agreements (c)	$	229	$	(11)	$	(218)	—	$	220	$	(6)	$	(214)	—
Total	$	229	$	(11)	$	(218)	—	$	220	$	(6)	$	(214)	—

(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.

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Employee Benefits (Tables)

9 Months Ended

Sep. 30, 2021

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 164 of our 2020 Form 10-K.

	Three months ended September 30,				Nine months ended September 30,
Dollars in millions	2021		2020		2021		2020
Interest cost on PBO	$	6	$	9	$	18	$	26
Expected return on plan assets	(7)		(10)		(21)		(29)
Amortization of losses	5		5		14		13
Settlement loss	7		—		7		8
Net pension cost	$	11	$	4	$	18	$	18

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Trust Preferred Securities Issued by Unconsolidated Subsidiaries (Tables)

9 Months Ended

Sep. 30, 2021

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
September 30, 2021
KeyCorp Capital I	$	156	$	6	$	162	0.885	%	2028
KeyCorp Capital II	101		4		105		6.875		2029
KeyCorp Capital III	140		4		144		7.750		2029
HNC Statutory Trust III	20		1		21		1.531		2035
Willow Grove Statutory Trust I	20		1		21		1.409		2036
HNC Statutory Trust IV	17		1		18		1.426		2037
Westbank Capital Trust II	8		—		8		2.312		2034
Westbank Capital Trust III	8		—		8		2.312		2034
Total	$	470	$	17	$	486	4.343	%	—
December 31, 2020	$	483	$	17	$	500	4.464	%	—

(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 $56 million at September 30, 2021, and $70 million at December 31, 2020. 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 $56 million at September 30, 2021, and $70 million at December 31, 2020. 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.

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Contingent Liabilities and Guarantees (Tables)

9 Months Ended

Sep. 30, 2021

Commitments and Contingencies Disclosure [Abstract]

Schedule of Guarantees

The following table shows the types of guarantees that we had outstanding at September 30, 2021. 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 116 of our 2020 Form 10-K.

September 30, 2021	Maximum Potential Undiscounted Future Payments		Liability Recorded
Dollars in millions
Financial guarantees:
Standby letters of credit	$	3,463	$	83
Recourse agreement with FNMA	6,272		25
Residential mortgage reserve	2,972		14
Written put options (a)	3,835		57
Total	$	16,542	$	179

(a)The maximum potential undiscounted future payments represent notional amounts of derivatives qualifying as guarantees.

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Accumulated Other Comprehensive Income (Tables)

9 Months Ended

Sep. 30, 2021

Equity [Abstract]

Changes in AOCI

Our changes in AOCI for the three and nine months ended September 30, 2021, and September 30, 2020, 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, 2020	$	567	$	476	$	(305)	$	738
Other comprehensive income before reclassification, net of income taxes	(617)		11		(2)		(608)
Amounts reclassified from AOCI, net of income taxes (a)	—		(191)		16		(175)
Net current-period other comprehensive income, net of income taxes	(617)		(180)		14		(783)
Balance at September 30, 2021	$	(50)	$	296	$	(291)	$	(45)
Balance at June 30, 2021	$	124	$	325	$	(299)	$	150
Other comprehensive income before reclassification, net of income taxes	(174)		30		(1)		(145)
Amounts reclassified from AOCI, net of income taxes (a)	—		(59)		9		(50)
Net current-period other comprehensive income, net of income taxes	(174)		(29)		8		(195)
Balance at September 30, 2021	$	(50)	$	296	$	(291)	$	(45)
Balance at December 31, 2019	$	115	$	250	$	(339)	$	26
Other comprehensive income before reclassification, net of income taxes	530		467		(1)		996
Amounts reclassified from AOCI, net of income taxes (a)	(3)		(168)		16		(155)
Net current-period other comprehensive income, net of income taxes	527		299		15		841
Balance at September 30, 2020	$	642	$	549	$	(324)	$	867
Balance at June 30, 2020	$	650	$	613	$	(327)	$	936
Other comprehensive income before reclassification, net of income taxes	(8)		11		(1)		2
Amounts reclassified from AOCI, net of income taxes (a)	—		(75)		4		(71)
Net current-period other comprehensive income, net of income taxes	(8)		(64)		3		(69)
Balance at September 30, 2020	$	642	$	549	$	(324)	$	867

(a)See table below for details about these reclassifications.

Reclassifications Out of AOCI

Our reclassifications out of AOCI for the three and nine months ended September 30, 2021, and September 30, 2020, are as follows:

	Three months ended September 30,				Affected Line Item in the Statement Where Net Income is Presented
Dollars in millions	2021		2020
Unrealized gains (losses) on derivative financial instruments
Interest rate	$	79	$	100	Interest income — Loans
Interest rate	(1)		(1)		Interest expense — Long-term debt
Interest rate	(1)		—		Investment banking and debt placement fees
	77		99		Income (loss) from continuing operations before income taxes
	18		24		Income taxes
	$	59	$	75	Income (loss) from continuing operations
Net pension and postretirement benefit costs
Amortization of losses	$	(5)	$	(5)	Other expense
Settlement loss	(7)		—		Other expense
	(12)		(5)		Income (loss) from continuing operations before income taxes
	(3)		(1)		Income taxes
	$	(9)	$	(4)	Income (loss) from continuing operations

	Nine months ended September 30,				Affected Line Item in the Statement Where Net Income is Presented
Dollars in millions	2021		2020
Unrealized gains (losses) on available for sale securities
Realized gains	—		$	4	Other income
	—		4		Income (loss) from continuing operations before income taxes
	—		1		Income taxes
	—		$	3	Income (loss) from continuing operations
Unrealized gains (losses) on derivative financial instruments
Interest rate	$	253	$	224	Interest income — Loans
Interest rate	(3)		(3)		Interest expense — Long-term debt
Interest rate	—		—		Investment banking and debt placement fees
	250		221		Income (loss) from continuing operations before income taxes
	59		53		Income taxes
	$	191	$	168	Income (loss) from continuing operations
Net pension and postretirement benefit costs
Amortization of losses	$	(14)	$	(13)	Other expense
Settlement loss	(7)		(8)		Other expense
	(21)		(21)		Income (loss) from continuing operations before income taxes
	(5)		(5)		Income taxes
	$	(16)	$	(16)	Income (loss) from continuing operations

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Shareholders' Equity (Tables)

9 Months Ended

Sep. 30, 2021

Equity [Abstract]

Schedule of Stockholders Equity

Preferred stock series	Amount outstanding (in millions)		Shares authorized and outstanding	Par value		Liquidation preference		Ownership interest per depositary share	Liquidation preference per depositary share		Third quarter 2021 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

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Business Segment Reporting (Tables)

9 Months Ended

Sep. 30, 2021

Segment Reporting [Abstract]

Financial Information of Business Groups

The table below shows selected financial data for our business segments for the three- and nine-month periods ended September 30, 2021, and September 30, 2020. Capital is assigned to each business segment based on a combination of regulatory and economic equity.

Three months ended September 30,	Consumer Bank						Commercial Bank						Other						Total Key
Dollars in millions	2021			2020			2021			2020			2021			2020			2021			2020
SUMMARY OF OPERATIONS
Net interest income (TE)	$	582		$	598		$	414		$	427		$	29		$	(19)		$	1,025		$	1,006
Noninterest income	288			266			477			384			32			31			797			681
Total revenue (TE) (a)	870			864			891			811			61			12			1,822			1,687
Provision for credit losses	(38)			(3)			(69)			150			—			13			(107)			160
Depreciation and amortization expense	31			19			34			35			22			35			87			89
Other noninterest expense	560			548			436			412			29			(12)			1,025			948
Income (loss) from continuing operations before income taxes (TE)	317			300			490			214			10			(24)			817			490
Allocated income taxes and TE adjustments	76			71			106			41			(8)			(46)			174			66
Income (loss) from continuing operations	241			229			384			173			18			22			643			424
Income (loss) from discontinued operations, net of taxes	—			—			—			—			2			4			2			4
Net income (loss)	241			229			384			173			20			26			645			428
Less: Net income (loss) attributable to noncontrolling interests	—			—			—			—			—			—			—			—
Net income (loss) attributable to Key	$	241		$	229		$	384		$	173		$	20		$	26		$	645		$	428
AVERAGE BALANCES (b)
Loans and leases	$	39,796		$	38,354		$	59,914		$	66,378		$	428		$	187		$	100,138		$	104,919
Total assets (a)	42,981			43,304			69,285			74,530			69,105			50,977			181,371			168,811
Deposits	89,156			82,829			56,546			51,585			1,214			530			146,916			134,944
OTHER FINANCIAL DATA
Net loan charge-offs (b)	$	35		$	23		$	(6)		$	103		$	—		$	2		$	29		$	128
Return on average allocated equity (b)	25.81		%	26.21		%	18.68		%	13.35		%	1.18		%	.96		%	14.25		%	9.51		%
Return on average allocated equity	25.81			26.21			18.68			13.35			1.31			1.14			14.30			9.60
Average full-time equivalent employees (c)	7,976			8,323			2,371			2,312			6,662			6,462			17,009			17,097

(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.

Nine months ended September 30,	Consumer Bank						Commercial Bank						Other							Total Key
Dollars in millions	2021			2020			2021			2020			2021				2020			2021			2020
SUMMARY OF OPERATIONS
Net interest income (TE)	$	1,788		$	1,765		$	1,244		$	1,305		$	28			$	(50)		$	3,060		$	3,020
Noninterest income	798			740			1,377			1,023			110				87			2,285			1,850
Total revenue (TE) (a)	2,586			2,505			2,621			2,328			138				37			5,345			4,870
Provision for credit losses	(132)			289			(267)			697			(23)				15			(422)			1,001
Depreciation and amortization expense	71			59			101			108			95				105			267			272
Other noninterest expense	1,706			1,597			1,263			1,144			23				(32)			2,992			2,709
Income (loss) from continuing operations before income taxes (TE)	941			560			1,524			379			43				(51)			2,508			888
Allocated income taxes and TE adjustments	226			133			324			38			(27)				(37)			523			134
Income (loss) from continuing operations	715			427			1,200			341			70				(14)			1,985			754
Income (loss) from discontinued operations, net of taxes	—			—			—			—			11				7			11			7
Net income (loss)	715			427			1,200			341			81				(7)			1,996			761
Less: Net income (loss) attributable to noncontrolling interests	—			—			—			—			—				—			—			—
Net income (loss) attributable to Key	$	715		$	427		$	1,200		$	341		$	81		(d)	$	(7)		$	1,996		$	761
AVERAGE BALANCES (b)
Loans and leases	$	39,883		$	36,319		$	60,358		$	66,374		$	321			$	325		$	100,562		$	103,018
Total assets (a)	43,094			40,644			69,607			75,205			64,493				43,897			177,194			159,746
Deposits	87,549			78,414			54,660			45,350			814				691			143,023			124,455
OTHER FINANCIAL DATA
Net loan charge-offs (b)	$	105		$	106		$	81		$	200		(21)				2			$	165		$	308
Return on average allocated equity (b)	26.70		%	16.66		%	18.92		%	9.19		%	1.62		%		(.20)		%	14.87		%	5.74		%
Return on average allocated equity	26.70			16.66			18.92			9.19			1.87				(.10)			14.96			5.79
Average full-time equivalent employees (c)	8,062			8,171			2,371			2,288			6,601				6,299			17,034			16,758

(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.

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Revenue from Contracts with Customers (Tables)

9 Months Ended

Sep. 30, 2021

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

The following table represents a disaggregation of revenue from contracts with customers, by business segment, for the three- and nine-month periods ended September 30, 2021, and September 30, 2020. 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 September 30, 2021						Three months ended September 30, 2020
Dollars in millions	Consumer Bank		Commercial Bank		Total Contract Revenue		Consumer Bank		Commercial Bank		Total Contract Revenue
NONINTEREST INCOME
Trust and investment services income	$	105	$	16	$	121	$	100	$	15	$	115
Investment banking and debt placement fees	—		169		169		—		69		69
Services charges on deposit accounts	56		35		91		45		32		77
Cards and payments income	46		61		107		43		69		112
Other noninterest income	2		—		2		3		—		3
Total revenue from contracts with customers	$	209	$	281	$	490	$	191	$	185	$	376
Other noninterest income (a)					$	275					$	274
Noninterest income from Other(b)					32						31
Total noninterest income					$	797					$	681

(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.

	Nine months ended September 30, 2021						Nine months ended September 30, 2020
Dollars in millions	Consumer Bank		Commercial Bank		Total Contract Revenue		Consumer Bank		Commercial Bank		Total Contract Revenue
NONINTEREST INCOME
Trust and investment services income	$	311	$	49	$	360	$	279	$	49	$	328
Investment banking and debt placement fees	—		367		367		—		176		176
Services charges on deposit accounts	145		102		247		138		91		229
Cards and payments income	135		187		322		118		147		265
Other noninterest income	5		2		7		7		—		7
Total revenue from contracts with customers	$	596	$	707	$	1,303	$	542	$	463	$	1,005
Other noninterest income (a)					$	872					$	758
Noninterest income from Other(b)					110						87
Total noninterest income					$	2,285					$	1,850

(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.

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Earnings Per Common Share - Basic and Diluted Earnings Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions		3 Months Ended		9 Months Ended
		Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
EARNINGS
Income (loss) from continuing operations		$ 643	$ 424	$ 1,985	$ 754
Less: Net income (loss) attributable to noncontrolling interests		0	0	0	0
Income (loss) from continuing operations attributable to Key		643	424	1,985	754
Less: Dividends on Preferred Stock		27	27	80	80
Income (loss) from continuing operations attributable to Key common shareholders		616	397	1,905	674
Income (loss) from discontinued operations, net of taxes		2	4	11	7
Net income (loss) attributable to Key common shareholders		$ 618	$ 401	$ 1,916	$ 681
WEIGHTED-AVERAGE COMMON SHARES
Weighted-average common shares outstanding (000) (in shares)		942,446	967,804	955,069	967,632
Effect of common share options and other stock awards (in shares)		10,077	6,184	9,712	6,648
Weighted-average common shares and potential common shares outstanding (in shares)	[1]	952,523	973,988	964,781	974,280
EARNINGS PER COMMON SHARE
Income (loss) from continuing operations attributable to Key common shareholders (in usd per share)		$ 0.65	$ 0.41	$ 1.99	$ 0.70
Income (loss) from discontinued operations, net of taxes (in usd per share)		0	0	0.01	0.01
Net income (loss) attributable to Key common shareholders (in usd per share)	[2]	0.66	0.41	2.00	0.70
Income (loss) from continuing operations attributable to Key common shareholders - assuming dilution (in usd per share)		0.65	0.41	1.98	0.69
Income (loss) from discontinued operations, net of taxes - assuming dilution (in usd per share)		0	0	0.01	0.01
Net income (loss) attributable to Key common shareholders (in usd per share)	[2]	$ 0.65	$ 0.41	$ 1.99	$ 0.70

[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.

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Loan Portfolio - Loans by Category (Details) - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	$ 98,609	$ 101,185
Accrued interest	211	241
Commercial Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	69,329	71,980
Accrued interest	117	140
Consumer Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	29,280	29,205
Accrued interest	95	101
Commercial and Industrial | Commercial Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	49,553	52,907
Commercial mortgage | Commercial Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	13,674	12,687
Construction | Commercial Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	2,120	1,987
Commercial real estate loans | Commercial Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	15,794	14,674
Commercial lease financing | Commercial Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	3,982	4,399
Real estate — residential mortgage | Consumer Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	14,204	9,298
Home equity loans | Consumer Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	8,747	9,360
Residential - Prime Loans | Consumer Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	22,951	18,658
Consumer direct loans | Consumer Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	5,324	4,714
Credit cards | Consumer Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	928	989
Consumer indirect loans | Consumer Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	77	4,844
Commercial credit card | Commercial Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	139	127
Commercial credit card | Consumer Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	928	989
Collateral pledged | Commercial Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	16	23
Education Lending | Discontinued Operations
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	$ 602	$ 710

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Asset Quality - Changes in Allowance for Loan and Lease Losses by Loan Category (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	$ 1,220	$ 1,708	$ 1,626	$ 900
Provision	(107)	150	(377)	934
Charge-offs	(66)	(151)	(272)	(362)
Recoveries	37	23	107	54
Ending balance	1,084	1,730	1,084	1,730
Total ALLL, including discontinued operations, beginning balance	1,250	1,751	1,662	910
Total provision, including discontinued operations	(108)	149	(383)	936
Total charge-offs, including discontinued operations	(67)	(151)	(275)	(366)
Total recoveries, including discontinued operations	38	23	109	57
Total ALLL, including discontinued operations, ending balance	1,113	1,772	1,113	1,772
Provision (credit) for losses on lending-related commitments	0	10	(45)	67
Impact of ASC 326 Adoption
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance				204
Total ALLL, including discontinued operations, beginning balance				235
Adjusted balance
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance				1,104
Total ALLL, including discontinued operations, beginning balance				1,145
Commercial Loans
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	795	1,113	1,099	751
Provision	(89)	181	(284)	797
Charge-offs	(28)	(124)	(185)	(266)
Recoveries	27	11	75	23
Ending balance	705	1,181	705	1,181
Commercial Loans | Impact of ASC 326 Adoption
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance				(124)
Commercial Loans | Adjusted balance
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance				627
Consumer Loans
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	425	595	527	149
Provision	(18)	(31)	(93)	137
Charge-offs	(38)	(27)	(87)	(96)
Recoveries	10	12	32	31
Ending balance	379	549	379	549
Consumer Loans | Impact of ASC 326 Adoption
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance				328
Consumer Loans | Adjusted balance
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance				477
Commercial and Industrial | Commercial Loans
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	499	725	678	551
Provision	(30)	177	(135)	613
Charge-offs	(27)	(101)	(141)	(232)
Recoveries	20	9	60	19
Ending balance	462	810	462	810
Commercial and Industrial | Commercial Loans | Impact of ASC 326 Adoption
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance				(141)
Commercial and Industrial | Commercial Loans | Adjusted balance
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance				410
Commercial mortgage | Commercial Loans
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	227	292	327	143
Provision	(44)	(2)	(112)	135
Charge-offs	0	(13)	(39)	(18)
Recoveries	1	2	8	3
Ending balance	184	279	184	279
Commercial mortgage | Commercial Loans | Impact of ASC 326 Adoption
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance				16
Commercial mortgage | Commercial Loans | Adjusted balance
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance				159
Construction | Commercial Loans
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	35	41	47	22
Provision	(8)	(7)	(20)	19
Charge-offs	0	0	0	0
Recoveries	0	0	0	0
Ending balance	27	34	27	34
Construction | Commercial Loans | Impact of ASC 326 Adoption
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance				(7)
Construction | Commercial Loans | Adjusted balance
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance				15
Commercial real estate loans | Commercial Loans
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	262	333	374	165
Provision	(52)	(9)	(132)	154
Charge-offs	0	(13)	0	(18)
Recoveries	1	2	0	3
Ending balance	211	313	211	313
Commercial real estate loans | Commercial Loans | Impact of ASC 326 Adoption
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance				9
Commercial real estate loans | Commercial Loans | Adjusted balance
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance				174
Commercial lease financing | Commercial Loans
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	34	55	47	35
Provision	(7)	13	(17)	30
Charge-offs	(1)	(10)	(5)	(16)
Recoveries	6	0	7	1
Ending balance	32	58	32	58
Commercial lease financing | Commercial Loans | Impact of ASC 326 Adoption
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance				8
Commercial lease financing | Commercial Loans | Adjusted balance
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance				43
Real estate — residential mortgage | Consumer Loans
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	86	101	102	7
Provision	(1)	2	(17)	21
Charge-offs	2	0	1	(2)
Recoveries	1	1	2	1
Ending balance	88	104	88	104
Real estate — residential mortgage | Consumer Loans | Impact of ASC 326 Adoption
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance				77
Real estate — residential mortgage | Consumer Loans | Adjusted balance
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance				84
Home equity loans | Consumer Loans
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	136	197	171	31
Provision	(13)	(13)	(44)	9
Charge-offs	(1)	(4)	(7)	(10)
Recoveries	2	3	4	6
Ending balance	124	183	124	183
Home equity loans | Consumer Loans | Impact of ASC 326 Adoption
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance				147
Home equity loans | Consumer Loans | Adjusted balance
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance				178
Consumer direct loans | Consumer Loans
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	115	130	128	34
Provision	(5)	1	(7)	52
Charge-offs	(7)	(8)	(22)	(30)
Recoveries	2	2	6	6
Ending balance	105	125	105	125
Consumer direct loans | Consumer Loans | Impact of ASC 326 Adoption
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance				63
Consumer direct loans | Consumer Loans | Adjusted balance
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance				97
Credit cards | Consumer Loans
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	68	107	87	47
Provision	(4)	(5)	(13)	39
Charge-offs	(6)	(9)	(21)	(32)
Recoveries	1	2	6	6
Ending balance	59	95	59	95
Credit cards | Consumer Loans | Impact of ASC 326 Adoption
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance				35
Credit cards | Consumer Loans | Adjusted balance
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance				82
Consumer indirect loans | Consumer Loans
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	20	60	39	30
Provision	5	(16)	(12)	16
Charge-offs	(26)	(6)	(38)	(22)
Recoveries	4	4	14	12
Ending balance	3	42	3	42
Consumer indirect loans | Consumer Loans | Impact of ASC 326 Adoption
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance				6
Consumer indirect loans | Consumer Loans | Adjusted balance
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance				36
Discontinued Operations
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	30	43	36	10
Provision	(1)	(1)	(6)	2
Charge-offs	(1)	0	(3)	(4)
Recoveries	1	0	2	3
Ending balance	$ 29	$ 42	$ 29	42
Discontinued Operations | Impact of ASC 326 Adoption
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance				31
Discontinued Operations | Adjusted balance
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance				$ 41

XML

Asset Quality - Additional Information (Details) $ in Millions	3 Months Ended			9 Months Ended
	Sep. 30, 2021 USD ($) SecurityLoan	Mar. 31, 2021 USD ($)	Sep. 30, 2020 USD ($) SecurityLoan	Sep. 30, 2021 USD ($) SecurityLoan	Sep. 30, 2020 USD ($) SecurityLoan	Dec. 31, 2020 USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of unearned income (residential)	$ 98,609			$ 98,609		$ 101,185
Loans that have received payment deferral or forbearance, CARES Act				174
Loan modifications and forbearance, CARES Act				124
Accrued interest	$ 211			$ 211		241
Percentage of carrying amount of our commercial nonperforming loans outstanding	62.00%			62.00%
Percentage of nonperforming loans outstanding face value	72.00%			72.00%
Percentage of loans held for sale and other nonperforming assets	77.00%			77.00%
Net reduction to interest income	$ 6		$ 7	$ 20	$ 20
Commitments outstanding to lend additional funds to borrowers (less than $1 million)	21			21		1
Financial receivable, modifications, subsequent default, recorded investment	2		$ 1	4	$ 4
Commercial Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accrued interest	$ 117			$ 117		140
TDRs, period for default				90 days
Number of loans | SecurityLoan	2		0	5	0
Consumer Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accrued interest	$ 95			$ 95		$ 101
TDRs, period for default				60 days
Number of loans | SecurityLoan	33		33	98	160
Continuing operations | Commercial Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Decrease in ALLL	$ (90)
Decrease in ALLL (as a percent)	(11.30%)
Continuing operations | Consumer Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Decrease in ALLL	$ (46)
Decrease in ALLL (as a percent)	(10.80%)
PPP
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of unearned income (residential)	$ 3,100			$ 3,100
Nonperforming financial instruments
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nonperforming loans on nonaccrual status with no allowance	$ 492			492
Real estate — residential mortgage
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financial receivable, modifications, subsequent default, recorded investment		$ 92		$ 70

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Asset Quality - Commercial Credit Exposure (Details) - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020
Financing Receivable, Credit Quality Indicator [Line Items]
Total	$ 98,609	$ 101,185
Accrued interest	211	241
Commercial Loans
Financing Receivable, Credit Quality Indicator [Line Items]
Current	13,562	16,230
One year prior	8,364	10,657
Two years prior	8,782	7,206
Three years prior	5,554	4,635
Four years prior	3,556	3,237
Prior	8,500	7,295
Revolving Loans Amortized Cost Basis	20,807	22,529
Revolving Loans Converted to Term Loans Amortized Cost Basis	204	191
Total	69,329	71,980
Accrued interest	117	140
Commercial Loans | Commercial and Industrial
Financing Receivable, Credit Quality Indicator [Line Items]
Current	9,355	13,174
One year prior	5,544	5,712
Two years prior	4,702	4,285
Three years prior	3,419	2,881
Four years prior	2,258	2,134
Prior	4,108	2,995
Revolving Loans Amortized Cost Basis	20,035	21,585
Revolving Loans Converted to Term Loans Amortized Cost Basis	132	141
Total	49,553	52,907
Commercial Loans | Commercial and Industrial | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Current	9,315	13,100
One year prior	5,420	5,487
Two years prior	4,491	4,040
Three years prior	3,186	2,617
Four years prior	2,016	1,967
Prior	3,884	2,709
Revolving Loans Amortized Cost Basis	18,950	19,832
Revolving Loans Converted to Term Loans Amortized Cost Basis	102	118
Total	47,364	49,870
Commercial Loans | Commercial and Industrial | Criticized (Accruing)
Financing Receivable, Credit Quality Indicator [Line Items]
Current	40	66
One year prior	115	198
Two years prior	193	174
Three years prior	192	236
Four years prior	236	150
Prior	208	279
Revolving Loans Amortized Cost Basis	925	1,527
Revolving Loans Converted to Term Loans Amortized Cost Basis	27	22
Total	1,936	2,652
Commercial Loans | Commercial and Industrial | Criticized (Nonaccruing)
Financing Receivable, Credit Quality Indicator [Line Items]
Current	0	8
One year prior	9	27
Two years prior	18	71
Three years prior	41	28
Four years prior	6	17
Prior	16	7
Revolving Loans Amortized Cost Basis	160	226
Revolving Loans Converted to Term Loans Amortized Cost Basis	3	1
Total	253	385
Commercial Loans | Commercial mortgage
Financing Receivable, Credit Quality Indicator [Line Items]
Current	3,234	1,603
One year prior	1,378	3,080
Two years prior	2,677	1,822
Three years prior	1,428	1,016
Four years prior	811	839
Prior	3,338	3,370
Revolving Loans Amortized Cost Basis	742	912
Revolving Loans Converted to Term Loans Amortized Cost Basis	66	45
Total	13,674	12,687
Commercial Loans | Commercial mortgage | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Current	3,219	1,591
One year prior	1,357	2,937
Two years prior	2,589	1,737
Three years prior	1,338	867
Four years prior	687	765
Prior	3,073	3,027
Revolving Loans Amortized Cost Basis	690	885
Revolving Loans Converted to Term Loans Amortized Cost Basis	64	43
Total	13,017	11,852
Commercial Loans | Commercial mortgage | Criticized (Accruing)
Financing Receivable, Credit Quality Indicator [Line Items]
Current	15	12
One year prior	20	142
Two years prior	87	81
Three years prior	85	145
Four years prior	123	72
Prior	228	255
Revolving Loans Amortized Cost Basis	48	22
Revolving Loans Converted to Term Loans Amortized Cost Basis	2	2
Total	608	731
Commercial Loans | Commercial mortgage | Criticized (Nonaccruing)
Financing Receivable, Credit Quality Indicator [Line Items]
Current	0	0
One year prior	1	1
Two years prior	1	4
Three years prior	5	4
Four years prior	1	2
Prior	37	88
Revolving Loans Amortized Cost Basis	4	5
Revolving Loans Converted to Term Loans Amortized Cost Basis	0	0
Total	49	104
Commercial Loans | Construction
Financing Receivable, Credit Quality Indicator [Line Items]
Current	318	367
One year prior	623	778
Two years prior	623	548
Three years prior	344	206
Four years prior	126	27
Prior	50	24
Revolving Loans Amortized Cost Basis	30	32
Revolving Loans Converted to Term Loans Amortized Cost Basis	6	5
Total	2,120	1,987
Commercial Loans | Construction | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Current	318	367
One year prior	619	764
Two years prior	610	510
Three years prior	292	188
Four years prior	104	27
Prior	49	22
Revolving Loans Amortized Cost Basis	29	31
Revolving Loans Converted to Term Loans Amortized Cost Basis	6	5
Total	2,027	1,914
Commercial Loans | Construction | Criticized (Accruing)
Financing Receivable, Credit Quality Indicator [Line Items]
Current	0	0
One year prior	4	14
Two years prior	13	38
Three years prior	52	18
Four years prior	22	0
Prior	1	2
Revolving Loans Amortized Cost Basis	1	1
Revolving Loans Converted to Term Loans Amortized Cost Basis	0	0
Total	93	73
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	655	1,086
One year prior	819	1,087
Two years prior	780	551
Three years prior	363	532
Four years prior	361	237
Prior	1,004	906
Revolving Loans Amortized Cost Basis		0
Revolving Loans Converted to Term Loans Amortized Cost Basis	0	0
Total	3,982	4,399
Commercial Loans | Commercial lease financing | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Current	655	1,076
One year prior	815	1,050
Two years prior	744	534
Three years prior	348	504
Four years prior	347	228
Prior	997	901
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term Loans Amortized Cost Basis	0	0
Total	3,906	4,293
Commercial Loans | Commercial lease financing | Criticized (Accruing)
Financing Receivable, Credit Quality Indicator [Line Items]
Current	0	10
One year prior	4	35
Two years prior	35	15
Three years prior	14	26
Four years prior	13	7
Prior	5	4
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term Loans Amortized Cost Basis	0	0
Total	71	97
Commercial Loans | Commercial lease financing | Criticized (Nonaccruing)
Financing Receivable, Credit Quality Indicator [Line Items]
Current	0	0
One year prior	0	2
Two years prior	1	2
Three years prior	1	2
Four years prior	1	2
Prior	2	1
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term Loans Amortized Cost Basis	0	0
Total	$ 5	$ 9

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Asset Quality - Consumer Credit Exposure (Details) - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020
Financing Receivable, Credit Quality Indicator [Line Items]
Total	$ 98,609	$ 101,185
Accrued interest	211	241
Consumer Loans
Financing Receivable, Credit Quality Indicator [Line Items]
Current	10,467	10,075
One year prior	6,466	5,436
Two years prior	2,429	1,499
Three years prior	501	1,040
Four years prior	432	1,119
Prior	3,081	3,224
Revolving Loans Amortized Cost Basis	5,235	5,953
Revolving Loans Converted to Term Loans Amortized Cost Basis	669	859
Total	29,280	29,205
Accrued interest	95	101
Consumer Loans | Real estate — residential mortgage
Financing Receivable, Credit Quality Indicator [Line Items]
Current	7,413	4,322
One year prior	3,570	1,934
Two years prior	1,139	293
Three years prior	169	319
Four years prior	186	665
Prior	1,726	1,765
Revolving Loans Amortized Cost Basis	1	0
Revolving Loans Converted to Term Loans Amortized Cost Basis	0	0
Total	14,204	9,298
Consumer Loans | Real estate — residential mortgage | FICO Score, 750 and above
Financing Receivable, Credit Quality Indicator [Line Items]
Current	6,071	3,595
One year prior	3,150	1,620
Two years prior	933	194
Three years prior	104	254
Four years prior	141	537
Prior	1,218	1,211
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term Loans Amortized Cost Basis	0	0
Total	11,617	7,411
Consumer Loans | Real estate — residential mortgage | FICO Score, 660 to 749
Financing Receivable, Credit Quality Indicator [Line Items]
Current	1,300	710
One year prior	407	284
Two years prior	186	76
Three years prior	47	48
Four years prior	31	100
Prior	323	332
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term Loans Amortized Cost Basis	0	0
Total	2,294	1,550
Consumer Loans | Real estate — residential mortgage | FICO Score, Less than 660
Financing Receivable, Credit Quality Indicator [Line Items]
Current	23	16
One year prior	12	28
Two years prior	19	21
Three years prior	16	10
Four years prior	10	26
Prior	151	170
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term Loans Amortized Cost Basis	0	0
Total	231	271
Consumer Loans | Real estate — residential mortgage | FICO Score, No Score
Financing Receivable, Credit Quality Indicator [Line Items]
Current	19	1
One year prior	1	2
Two years prior	1	2
Three years prior	2	7
Four years prior	4	2
Prior	34	52
Revolving Loans Amortized Cost Basis	1	0
Revolving Loans Converted to Term Loans Amortized Cost Basis	0	0
Total	62	66
Consumer Loans | Home equity loans
Financing Receivable, Credit Quality Indicator [Line Items]
Current	1,284	1,457
One year prior	1,208	634
Two years prior	435	269
Three years prior	177	299
Four years prior	201	279
Prior	1,062	1,207
Revolving Loans Amortized Cost Basis	3,711	4,357
Revolving Loans Converted to Term Loans Amortized Cost Basis	669	858
Total	8,747	9,360
Consumer Loans | Home equity loans | FICO Score, 750 and above
Financing Receivable, Credit Quality Indicator [Line Items]
Current	919	1,043
One year prior	885	404
Two years prior	285	168
Three years prior	113	202
Four years prior	139	190
Prior	739	839
Revolving Loans Amortized Cost Basis	2,333	2,689
Revolving Loans Converted to Term Loans Amortized Cost Basis	462	590
Total	5,875	6,125
Consumer Loans | Home equity loans | FICO Score, 660 to 749
Financing Receivable, Credit Quality Indicator [Line Items]
Current	345	385
One year prior	295	198
Two years prior	130	82
Three years prior	49	77
Four years prior	47	69
Prior	222	253
Revolving Loans Amortized Cost Basis	1,037	1,237
Revolving Loans Converted to Term Loans Amortized Cost Basis	158	206
Total	2,283	2,507
Consumer Loans | Home equity loans | FICO Score, Less than 660
Financing Receivable, Credit Quality Indicator [Line Items]
Current	20	27
One year prior	26	30
Two years prior	20	18
Three years prior	14	20
Four years prior	15	20
Prior	99	113
Revolving Loans Amortized Cost Basis	336	426
Revolving Loans Converted to Term Loans Amortized Cost Basis	48	61
Total	578	715
Consumer Loans | Home equity loans | FICO Score, No Score
Financing Receivable, Credit Quality Indicator [Line Items]
Current	0	2
One year prior	2	2
Two years prior	0	1
Three years prior	1	0
Four years prior	0	0
Prior	2	2
Revolving Loans Amortized Cost Basis	5	5
Revolving Loans Converted to Term Loans Amortized Cost Basis	1	1
Total	11	13
Consumer Loans | Consumer direct loans
Financing Receivable, Credit Quality Indicator [Line Items]
Current	1,766	2,407
One year prior	1,688	1,223
Two years prior	855	237
Three years prior	155	83
Four years prior	45	45
Prior	220	111
Revolving Loans Amortized Cost Basis	595	607
Revolving Loans Converted to Term Loans Amortized Cost Basis	0	1
Total	5,324	4,714
Consumer Loans | Consumer direct loans | FICO Score, 750 and above
Financing Receivable, Credit Quality Indicator [Line Items]
Current	1,287	1,840
One year prior	1,271	883
Two years prior	594	115
Three years prior	76	32
Four years prior	20	16
Prior	137	57
Revolving Loans Amortized Cost Basis	109	119
Revolving Loans Converted to Term Loans Amortized Cost Basis	0	0
Total	3,494	3,062
Consumer Loans | Consumer direct loans | FICO Score, 660 to 749
Financing Receivable, Credit Quality Indicator [Line Items]
Current	413	479
One year prior	350	268
Two years prior	200	80
Three years prior	51	22
Four years prior	13	14
Prior	48	33
Revolving Loans Amortized Cost Basis	217	254
Revolving Loans Converted to Term Loans Amortized Cost Basis	0	1
Total	1,292	1,151
Consumer Loans | Consumer direct loans | FICO Score, Less than 660
Financing Receivable, Credit Quality Indicator [Line Items]
Current	19	23
One year prior	22	37
Two years prior	29	21
Three years prior	12	8
Four years prior	3	5
Prior	14	10
Revolving Loans Amortized Cost Basis	61	81
Revolving Loans Converted to Term Loans Amortized Cost Basis	0	0
Total	160	185
Consumer Loans | Consumer direct loans | FICO Score, No Score
Financing Receivable, Credit Quality Indicator [Line Items]
Current	47	65
One year prior	45	35
Two years prior	32	21
Three years prior	16	21
Four years prior	9	10
Prior	21	11
Revolving Loans Amortized Cost Basis	208	153
Revolving Loans Converted to Term Loans Amortized Cost Basis	0	0
Total	378	316
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	928	989
Revolving Loans Converted to Term Loans Amortized Cost Basis	0	0
Total	928	989
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	472	488
Revolving Loans Converted to Term Loans Amortized Cost Basis	0	0
Total	472	488
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	375	407
Revolving Loans Converted to Term Loans Amortized Cost Basis	0	0
Total	375	407
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	72	93
Revolving Loans Converted to Term Loans Amortized Cost Basis	0	0
Total	72	93
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	9	1
Revolving Loans Converted to Term Loans Amortized Cost Basis	0	0
Total	9	1
Consumer Loans | Consumer indirect loans
Financing Receivable, Credit Quality Indicator [Line Items]
Current	4	1,889
One year prior	0	1,645
Two years prior	0	700
Three years prior	0	339
Four years prior	0	130
Prior	73	141
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term Loans Amortized Cost Basis	0	0
Total	77	4,844
Consumer Loans | Consumer indirect loans | FICO Score, 750 and above
Financing Receivable, Credit Quality Indicator [Line Items]
Current	4	1,092
One year prior	0	924
Two years prior	0	369
Three years prior	0	188
Four years prior	0	69
Prior	36	66
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term Loans Amortized Cost Basis	0	0
Total	40	2,708
Consumer Loans | Consumer indirect loans | FICO Score, 660 to 749
Financing Receivable, Credit Quality Indicator [Line Items]
Current	0	653
One year prior	0	558
Two years prior	0	232
Three years prior	0	97
Four years prior	0	36
Prior	26	47
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term Loans Amortized Cost Basis	0	0
Total	26	1,623
Consumer Loans | Consumer indirect loans | FICO Score, Less than 660
Financing Receivable, Credit Quality Indicator [Line Items]
Current	0	143
One year prior	0	163
Two years prior	0	99
Three years prior	0	54
Four years prior	0	25
Prior	11	28
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term Loans Amortized Cost Basis	0	0
Total	11	512
Consumer Loans | Consumer indirect loans | FICO Score, No Score
Financing Receivable, Credit Quality Indicator [Line Items]
Current	0	1
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	$ 1

XML

Asset Quality - Aging Analysis of Past Due and Current Loans (Details) - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020
Financing Receivable, Past Due [Line Items]
Total loans	$ 98,609	$ 101,185
Accrued interest	211	241
Commercial Loans
Financing Receivable, Past Due [Line Items]
Total loans	69,329	71,980
Accrued interest	117	140
Consumer Loans
Financing Receivable, Past Due [Line Items]
Total loans	29,280	29,205
Accrued interest	95	101
Commercial and Industrial | Commercial Loans
Financing Receivable, Past Due [Line Items]
Total loans	49,553	52,907
Commercial mortgage | Commercial Loans
Financing Receivable, Past Due [Line Items]
Total loans	13,674	12,687
Commercial real estate: Construction | Commercial Loans
Financing Receivable, Past Due [Line Items]
Total loans	2,120	1,987
Commercial real estate loans | Commercial Loans
Financing Receivable, Past Due [Line Items]
Total loans	15,794	14,674
Commercial lease financing | Commercial Loans
Financing Receivable, Past Due [Line Items]
Total loans	3,982	4,399
Real estate — residential mortgage | Consumer Loans
Financing Receivable, Past Due [Line Items]
Total loans	14,204	9,298
Home equity loans | Consumer Loans
Financing Receivable, Past Due [Line Items]
Total loans	8,747	9,360
Consumer direct loans | Consumer Loans
Financing Receivable, Past Due [Line Items]
Total loans	5,324	4,714
Commercial credit card | Commercial Loans
Financing Receivable, Past Due [Line Items]
Total loans	139	127
Commercial credit card | Consumer Loans
Financing Receivable, Past Due [Line Items]
Total loans	928	989
Consumer indirect loans | Consumer Loans
Financing Receivable, Past Due [Line Items]
Total loans	77	4,844
Financial Asset, Not Past Due
Financing Receivable, Past Due [Line Items]
Total loans	97,809	100,073
Financial Asset, Not Past Due | Commercial Loans
Financing Receivable, Past Due [Line Items]
Total loans	68,858	71,299
Financial Asset, Not Past Due | Consumer Loans
Financing Receivable, Past Due [Line Items]
Total loans	28,951	28,774
Financial Asset, Not Past Due | Commercial and Industrial | Commercial Loans
Financing Receivable, Past Due [Line Items]
Total loans	49,161	52,396
Financial Asset, Not Past Due | Commercial mortgage | Commercial Loans
Financing Receivable, Past Due [Line Items]
Total loans	13,606	12,548
Financial Asset, Not Past Due | Commercial real estate: Construction | Commercial Loans
Financing Receivable, Past Due [Line Items]
Total loans	2,118	1,986
Financial Asset, Not Past Due | Commercial real estate loans | Commercial Loans
Financing Receivable, Past Due [Line Items]
Total loans	15,724	14,534
Financial Asset, Not Past Due | Commercial lease financing | Commercial Loans
Financing Receivable, Past Due [Line Items]
Total loans	3,973	4,369
Financial Asset, Not Past Due | Real estate — residential mortgage | Consumer Loans
Financing Receivable, Past Due [Line Items]
Total loans	14,096	9,173
Financial Asset, Not Past Due | Home equity loans | Consumer Loans
Financing Receivable, Past Due [Line Items]
Total loans	8,559	9,143
Financial Asset, Not Past Due | Consumer direct loans | Consumer Loans
Financing Receivable, Past Due [Line Items]
Total loans	5,307	4,694
Financial Asset, Not Past Due | Commercial credit card | Consumer Loans
Financing Receivable, Past Due [Line Items]
Total loans	914	972
Financial Asset, Not Past Due | Consumer indirect loans | Consumer Loans
Financing Receivable, Past Due [Line Items]
Total loans	75	4,792
30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Total loans	109	148
30-59 Days Past Due | Commercial Loans
Financing Receivable, Past Due [Line Items]
Total loans	71	66
30-59 Days Past Due | Consumer Loans
Financing Receivable, Past Due [Line Items]
Total loans	38	82
30-59 Days Past Due | Commercial and Industrial | Commercial Loans
Financing Receivable, Past Due [Line Items]
Total loans	56	36
30-59 Days Past Due | Commercial mortgage | Commercial Loans
Financing Receivable, Past Due [Line Items]
Total loans	12	9
30-59 Days Past Due | Commercial real estate: Construction | Commercial Loans
Financing Receivable, Past Due [Line Items]
Total loans	1	0
30-59 Days Past Due | Commercial real estate loans | Commercial Loans
Financing Receivable, Past Due [Line Items]
Total loans	13	9
30-59 Days Past Due | Commercial lease financing | Commercial Loans
Financing Receivable, Past Due [Line Items]
Total loans	2	21
30-59 Days Past Due | Real estate — residential mortgage | Consumer Loans
Financing Receivable, Past Due [Line Items]
Total loans	6	11
30-59 Days Past Due | Home equity loans | Consumer Loans
Financing Receivable, Past Due [Line Items]
Total loans	22	34
30-59 Days Past Due | Consumer direct loans | Consumer Loans
Financing Receivable, Past Due [Line Items]
Total loans	6	7
30-59 Days Past Due | Commercial credit card | Consumer Loans
Financing Receivable, Past Due [Line Items]
Total loans	3	5
30-59 Days Past Due | Consumer indirect loans | Consumer Loans
Financing Receivable, Past Due [Line Items]
Total loans	1	25
60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total loans	55	93
60-89 Days Past Due | Commercial Loans
Financing Receivable, Past Due [Line Items]
Total loans	36	56
60-89 Days Past Due | Consumer Loans
Financing Receivable, Past Due [Line Items]
Total loans	19	37
60-89 Days Past Due | Commercial and Industrial | Commercial Loans
Financing Receivable, Past Due [Line Items]
Total loans	33	50
60-89 Days Past Due | Commercial mortgage | Commercial Loans
Financing Receivable, Past Due [Line Items]
Total loans	2	5
60-89 Days Past Due | Commercial real estate: Construction | Commercial Loans
Financing Receivable, Past Due [Line Items]
Total loans	0	0
60-89 Days Past Due | Commercial real estate loans | Commercial Loans
Financing Receivable, Past Due [Line Items]
Total loans	2	5
60-89 Days Past Due | Commercial lease financing | Commercial Loans
Financing Receivable, Past Due [Line Items]
Total loans	1	1
60-89 Days Past Due | Real estate — residential mortgage | Consumer Loans
Financing Receivable, Past Due [Line Items]
Total loans	3	3
60-89 Days Past Due | Home equity loans | Consumer Loans
Financing Receivable, Past Due [Line Items]
Total loans	10	20
60-89 Days Past Due | Consumer direct loans | Consumer Loans
Financing Receivable, Past Due [Line Items]
Total loans	3	4
60-89 Days Past Due | Commercial credit card | Consumer Loans
Financing Receivable, Past Due [Line Items]
Total loans	3	3
60-89 Days Past Due | Consumer indirect loans | Consumer Loans
Financing Receivable, Past Due [Line Items]
Total loans	0	7
90 and Greater Days Past Due
Financing Receivable, Past Due [Line Items]
Total loans	82	86
90 and Greater Days Past Due | Commercial Loans
Financing Receivable, Past Due [Line Items]
Total loans	57	62
90 and Greater Days Past Due | Consumer Loans
Financing Receivable, Past Due [Line Items]
Total loans	25	24
90 and Greater Days Past Due | Commercial and Industrial | Commercial Loans
Financing Receivable, Past Due [Line Items]
Total loans	50	40
90 and Greater Days Past Due | Commercial mortgage | Commercial Loans
Financing Receivable, Past Due [Line Items]
Total loans	5	21
90 and Greater Days Past Due | Commercial real estate: Construction | Commercial Loans
Financing Receivable, Past Due [Line Items]
Total loans	1	1
90 and Greater Days Past Due | Commercial real estate loans | Commercial Loans
Financing Receivable, Past Due [Line Items]
Total loans	6	22
90 and Greater Days Past Due | Commercial lease financing | Commercial Loans
Financing Receivable, Past Due [Line Items]
Total loans	1	0
90 and Greater Days Past Due | Real estate — residential mortgage | Consumer Loans
Financing Receivable, Past Due [Line Items]
Total loans	6	1
90 and Greater Days Past Due | Home equity loans | Consumer Loans
Financing Receivable, Past Due [Line Items]
Total loans	10	9
90 and Greater Days Past Due | Consumer direct loans | Consumer Loans
Financing Receivable, Past Due [Line Items]
Total loans	4	4
90 and Greater Days Past Due | Commercial credit card | Consumer Loans
Financing Receivable, Past Due [Line Items]
Total loans	5	7
90 and Greater Days Past Due | Consumer indirect loans | Consumer Loans
Financing Receivable, Past Due [Line Items]
Total loans	0	3
Financial Asset, Past Due
Financing Receivable, Past Due [Line Items]
Total loans	800	1,112
Financial Asset, Past Due | Commercial Loans
Financing Receivable, Past Due [Line Items]
Total loans	471	681
Financial Asset, Past Due | Consumer Loans
Financing Receivable, Past Due [Line Items]
Total loans	329	431
Financial Asset, Past Due | Commercial and Industrial | Commercial Loans
Financing Receivable, Past Due [Line Items]
Total loans	392	511
Financial Asset, Past Due | Commercial mortgage | Commercial Loans
Financing Receivable, Past Due [Line Items]
Total loans	68	139
Financial Asset, Past Due | Commercial real estate: Construction | Commercial Loans
Financing Receivable, Past Due [Line Items]
Total loans	2	1
Financial Asset, Past Due | Commercial real estate loans | Commercial Loans
Financing Receivable, Past Due [Line Items]
Total loans	70	140
Financial Asset, Past Due | Commercial lease financing | Commercial Loans
Financing Receivable, Past Due [Line Items]
Total loans	9	30
Financial Asset, Past Due | Real estate — residential mortgage | Consumer Loans
Financing Receivable, Past Due [Line Items]
Total loans	108	125
Financial Asset, Past Due | Home equity loans | Consumer Loans
Financing Receivable, Past Due [Line Items]
Total loans	188	217
Financial Asset, Past Due | Consumer direct loans | Consumer Loans
Financing Receivable, Past Due [Line Items]
Total loans	17	20
Financial Asset, Past Due | Commercial credit card | Consumer Loans
Financing Receivable, Past Due [Line Items]
Total loans	14	17
Financial Asset, Past Due | Consumer indirect loans | Consumer Loans
Financing Receivable, Past Due [Line Items]
Total loans	2	52
Nonperforming financial instruments
Financing Receivable, Past Due [Line Items]
Total loans	554	785
Nonperforming financial instruments | Commercial Loans
Financing Receivable, Past Due [Line Items]
Total loans	307	497
Nonperforming financial instruments | Consumer Loans
Financing Receivable, Past Due [Line Items]
Total loans	247	288
Nonperforming financial instruments | Commercial and Industrial | Commercial Loans
Financing Receivable, Past Due [Line Items]
Total loans	253	385
Nonperforming financial instruments | Commercial mortgage | Commercial Loans
Financing Receivable, Past Due [Line Items]
Total loans	49	104
Nonperforming financial instruments | Commercial real estate: Construction | Commercial Loans
Financing Receivable, Past Due [Line Items]
Total loans	0	0
Nonperforming financial instruments | Commercial real estate loans | Commercial Loans
Financing Receivable, Past Due [Line Items]
Total loans	49	104
Nonperforming financial instruments | Commercial lease financing | Commercial Loans
Financing Receivable, Past Due [Line Items]
Total loans	5	8
Nonperforming financial instruments | Real estate — residential mortgage | Consumer Loans
Financing Receivable, Past Due [Line Items]
Total loans	93	110
Nonperforming financial instruments | Home equity loans | Consumer Loans
Financing Receivable, Past Due [Line Items]
Total loans	146	154
Nonperforming financial instruments | Consumer direct loans | Consumer Loans
Financing Receivable, Past Due [Line Items]
Total loans	4	5
Nonperforming financial instruments | Commercial credit card | Consumer Loans
Financing Receivable, Past Due [Line Items]
Total loans	3	2
Nonperforming financial instruments | Consumer indirect loans | Consumer Loans
Financing Receivable, Past Due [Line Items]
Total loans	$ 1	$ 17

XML

Asset Quality - Post-Modification Outstanding Recorded Investment by Concession Type for Our Commercial Accruing and Nonaccruing TDRs (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total commercial and consumer TDRs	$ 15	$ 19	$ 36	$ 48
Commercial Loans
Financing Receivable, Troubled Debt Restructuring [Line Items]
Extension of Maturity Date	0	0	5	8
Payment or Covenant Modification/Deferment	0	0	7	0
Bankruptcy Plan Modification	0	0	0	0
Increase in new commitment or new money	0	0	0	0
Total	0	0	12	8
Consumer Loans
Financing Receivable, Troubled Debt Restructuring [Line Items]
Interest rate reduction	3	13	6	22
Other	12	6	18	18
Total	$ 15	$ 19	$ 24	$ 40

XML

Asset Quality - Summary of Post-Modification Outstanding Recorded Investment TDRs (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Financing Receivables, Modifications, Rollforward [Roll Forward]
Balance at beginning of the period	$ 334	$ 310	$ 363	$ 347
Additions	17	26	98	65
Payments	(81)	(22)	(162)	(75)
Charge-offs	0	(8)	(29)	(31)
Balance at end of period	$ 270	$ 306	$ 270	$ 306

XML

Asset Quality - Breakdown of Nonperforming TDRs by Loans Category (Details) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2021 USD ($) SecurityLoan	Dec. 31, 2020 USD ($) SecurityLoan
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Loans | SecurityLoan	4,417	6,133
Pre-modification Outstanding Recorded Investment	$ 375	$ 478
Post-modification Outstanding Recorded Investment	$ 270	$ 363
Prior-Year accruing
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Loans | SecurityLoan	3,040	3,743
Pre-modification Outstanding Recorded Investment	$ 163	$ 184
Post-modification Outstanding Recorded Investment	$ 124	$ 134
Prior-Year accruing | Commercial Loans
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Loans | SecurityLoan	8	3
Pre-modification Outstanding Recorded Investment	$ 49	$ 5
Post-modification Outstanding Recorded Investment	$ 26	$ 0
Prior-Year accruing | Consumer Loans
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Loans | SecurityLoan	3,032	3,740
Pre-modification Outstanding Recorded Investment	$ 164	$ 179
Post-modification Outstanding Recorded Investment	$ 124	$ 134
Nonperforming financial instruments
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Loans | SecurityLoan	1,377	2,390
Pre-modification Outstanding Recorded Investment	$ 212	$ 294
Post-modification Outstanding Recorded Investment	$ 146	$ 229
Nonperforming financial instruments | Commercial Loans
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Loans | SecurityLoan	38	73
Pre-modification Outstanding Recorded Investment	$ 142	$ 198
Post-modification Outstanding Recorded Investment	$ 82	$ 142
Nonperforming financial instruments | Consumer Loans
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Loans | SecurityLoan	1,339	2,317
Pre-modification Outstanding Recorded Investment	$ 70	$ 96
Post-modification Outstanding Recorded Investment	$ 64	$ 87
Commercial and Industrial | Prior-Year accruing | Commercial Loans
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Loans | SecurityLoan	7	3
Pre-modification Outstanding Recorded Investment	$ 49	$ 5
Post-modification Outstanding Recorded Investment	$ 26	$ 0
Commercial and Industrial | Nonperforming financial instruments | Commercial Loans
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Loans | SecurityLoan	35	66
Pre-modification Outstanding Recorded Investment	$ 92	$ 136
Post-modification Outstanding Recorded Investment	$ 53	$ 92
Commercial mortgage | Prior-Year accruing | Commercial Real Estate
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Loans | SecurityLoan	1	0
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 | SecurityLoan	3	7
Pre-modification Outstanding Recorded Investment	$ 50	$ 62
Post-modification Outstanding Recorded Investment	$ 29	$ 50
Commercial real estate loans | Prior-Year accruing | Commercial Real Estate
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Loans | SecurityLoan	1	0
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 | SecurityLoan	3	7
Pre-modification Outstanding Recorded Investment	$ 50	$ 62
Post-modification Outstanding Recorded Investment	$ 29	$ 50
Real estate — residential mortgage | Prior-Year accruing | Consumer Loans
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Loans | SecurityLoan	464	485
Pre-modification Outstanding Recorded Investment	$ 39	$ 37
Post-modification Outstanding Recorded Investment	$ 34	$ 31
Real estate — residential mortgage | Nonperforming financial instruments | Consumer Loans
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Loans | SecurityLoan	218	258
Pre-modification Outstanding Recorded Investment	$ 26	$ 35
Post-modification Outstanding Recorded Investment	$ 25	$ 34
Home equity loans | Prior-Year accruing | Consumer Loans
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Loans | SecurityLoan	1,648	1,781
Pre-modification Outstanding Recorded Investment	$ 100	$ 106
Post-modification Outstanding Recorded Investment	$ 78	$ 83
Home equity loans | Nonperforming financial instruments | Consumer Loans
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Loans | SecurityLoan	569	630
Pre-modification Outstanding Recorded Investment	$ 38	$ 41
Post-modification Outstanding Recorded Investment	$ 33	$ 37
Consumer direct loans | Prior-Year accruing | Consumer Loans
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Loans | SecurityLoan	206	163
Pre-modification Outstanding Recorded Investment	$ 5	$ 4
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 | SecurityLoan	201	212
Pre-modification Outstanding Recorded Investment	$ 3	$ 3
Post-modification Outstanding Recorded Investment	$ 3	$ 3
Credit cards | Prior-Year accruing | Consumer Loans
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Loans | SecurityLoan	564	536
Pre-modification Outstanding Recorded Investment	$ 4	$ 3
Post-modification Outstanding Recorded Investment	$ 1	$ 1
Credit cards | Nonperforming financial instruments | Consumer Loans
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Loans | SecurityLoan	328	356
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 | SecurityLoan	150	775
Pre-modification Outstanding Recorded Investment	$ 16	$ 29
Post-modification Outstanding Recorded Investment	$ 8	$ 16
Consumer indirect loans | Nonperforming financial instruments | Consumer Loans
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Loans | SecurityLoan	23	861
Pre-modification Outstanding Recorded Investment	$ 1	$ 15
Post-modification Outstanding Recorded Investment	$ 1	$ 11

XML

Asset Quality - Changes in Liability for Credit Losses on Lending Related Commitments (Details) - USD ($) $ in Millions		3 Months Ended		6 Months Ended		9 Months Ended		12 Months Ended
	Jan. 01, 2020	Sep. 30, 2021	Sep. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020	Dec. 31, 2019
Off-Balance Sheet, Credit Loss, Liability [Roll Forward]
Balance at the end of the prior period	$ 68	$ 152	$ 198	$ 197	$ 68	$ 197	$ 68	$ 68
Liability for credit losses on contingent guarantees at the end of the prior period				0	0			0	$ 7
Balance at beginning of period		152	208	152	198	152	208	197	68
Provision (credit) for losses on off balance sheet exposures		0	10			(45)	67
Balance at end of period		152	208	152	198	152	208	197	68
Impact of ASC 326 Adoption
Off-Balance Sheet, Credit Loss, Liability [Roll Forward]
Cumulative effect from changes in accounting principle				0	0			0	66
Adjusted balance
Off-Balance Sheet, Credit Loss, Liability [Roll Forward]
Balance at the end of the prior period	141	$ 152	$ 198	197	141	$ 197	$ 141	141
Balance at beginning of period				152	198			197	141
Balance at end of period				$ 152	$ 198			$ 197	$ 141
Other Financial Assets | Impact of ASC 326 Adoption
Off-Balance Sheet, Credit Loss, Liability [Roll Forward]
Cumulative effect from changes in accounting principle	$ 4

XML

Fair Value Measurements - Fair Value of Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020
ASSETS MEASURED ON A RECURRING BASIS
Total trading account securities	$ 902	$ 735
Securities available for sale	40,594	27,556
Loans, net of unearned income (residential)	98,609	101,185
Derivative assets, netting adjustments	(302)	(380)
Total derivative assets	2,553	1,798
LIABILITIES MEASURED ON A RECURRING BASIS
Derivative liabilities, netting adjustments	(1,911)	(675)
Other
ASSETS MEASURED ON A RECURRING BASIS
Derivative assets, gross	6
Recurring
ASSETS MEASURED ON A RECURRING BASIS
Total trading account securities	889	717
Commercial loans	13	18
Total trading account assets	902	735
Securities available for sale	40,594	27,556
Total other investments	80	81
Loans, net of unearned income (residential)	10	11
Loans held for sale (residential)	237	264
Derivative assets, gross	2,855	2,178
Derivative assets, netting adjustments	(302)	(380)
Total derivative assets	2,553	1,798
Accrued income and other assets	0	0
Total assets at fair value	44,376	30,445
LIABILITIES MEASURED ON A RECURRING BASIS
Total liabilities on a recurring basis at fair value	1,027	910
Recurring | U.S. Treasury, agencies and corporations
ASSETS MEASURED ON A RECURRING BASIS
Total trading account securities	747	633
Securities available for sale	8,938	1,000
Recurring | States and political subdivisions
ASSETS MEASURED ON A RECURRING BASIS
Total trading account securities	91	24
Securities available for sale	0	0
Recurring | Other securities
ASSETS MEASURED ON A RECURRING BASIS
Total trading account securities	30	13
Securities available for sale	23	13
Recurring | Agency commercial mortgage-backed securities
ASSETS MEASURED ON A RECURRING BASIS
Securities available for sale	10,121	10,106
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	49	54
Recurring | Equity Investments, Direct
ASSETS MEASURED ON A RECURRING BASIS
Total other investments	9	13
Recurring | Equity Investments
ASSETS MEASURED ON A RECURRING BASIS
Total other investments	31	27
Recurring | Mortgage-backed securities
ASSETS MEASURED ON A RECURRING BASIS
Total trading account securities	21	47
Recurring | Mortgage-backed securities | Agency residential mortgage-backed securities
ASSETS MEASURED ON A RECURRING BASIS
Securities available for sale	5,408	2,164
Recurring | Short positions
LIABILITIES MEASURED ON A RECURRING BASIS
Short positions	767	759
Recurring | Long positions
LIABILITIES MEASURED ON A RECURRING BASIS
Derivative liabilities, gross	2,171	826
Derivative liabilities, netting adjustments	(1,911)	(675)
Total derivative liabilities	260	151
Recurring | Interest rate
ASSETS MEASURED ON A RECURRING BASIS
Derivative assets, gross	954	1,584
Recurring | Interest rate | Long positions
LIABILITIES MEASURED ON A RECURRING BASIS
Derivative liabilities, gross	273	288
Recurring | Foreign exchange
ASSETS MEASURED ON A RECURRING BASIS
Derivative assets, gross	80	109
Recurring | Foreign exchange | Long positions
LIABILITIES MEASURED ON A RECURRING BASIS
Derivative liabilities, gross	75	103
Recurring | Commodity
ASSETS MEASURED ON A RECURRING BASIS
Derivative assets, gross	1,799	426
Recurring | Commodity | Long positions
LIABILITIES MEASURED ON A RECURRING BASIS
Derivative liabilities, gross	1,805	408
Recurring | Credit
ASSETS MEASURED ON A RECURRING BASIS
Derivative assets, gross	0	1
Recurring | Credit | Long positions
LIABILITIES MEASURED ON A RECURRING BASIS
Derivative liabilities, gross	7	11
Recurring | Other
ASSETS MEASURED ON A RECURRING BASIS
Derivative assets, gross	22	58
Recurring | Other | Long positions
LIABILITIES MEASURED ON A RECURRING BASIS
Derivative liabilities, gross	11	16
Level 1 | Recurring
ASSETS MEASURED ON A RECURRING BASIS
Total trading account securities	17	0
Commercial loans	0	0
Total trading account assets	17	0
Securities available for sale	0	0
Total other investments	0	0
Loans, net of unearned income (residential)	0	0
Loans held for sale (residential)	0	0
Derivative assets, gross	65	78
Derivative assets, netting adjustments	0	0
Total derivative assets	65	78
Accrued income and other assets	0	0
Total assets at fair value	82	78
LIABILITIES MEASURED ON A RECURRING BASIS
Total liabilities on a recurring basis at fair value	272	328
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	17	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	0	0
Level 1 | Recurring | Equity Investments
ASSETS MEASURED ON A RECURRING BASIS
Total other investments	0	0
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	212	256
Level 1 | Recurring | Long positions
LIABILITIES MEASURED ON A RECURRING BASIS
Derivative liabilities, gross	60	72
Derivative liabilities, netting adjustments	0	0
Total derivative liabilities	60	72
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	65	78
Level 1 | Recurring | Foreign exchange | Long positions
LIABILITIES MEASURED ON A RECURRING BASIS
Derivative liabilities, gross	60	72
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	872	717
Commercial loans	13	18
Total trading account assets	885	735
Securities available for sale	40,572	27,543
Total other investments	0	0
Loans, net of unearned income (residential)	0	0
Loans held for sale (residential)	237	264
Derivative assets, gross	2,750	2,009
Derivative assets, netting adjustments	0	0
Total derivative assets	2,750	2,009
Accrued income and other assets	0	0
Total assets at fair value	44,444	30,551
LIABILITIES MEASURED ON A RECURRING BASIS
Total liabilities on a recurring basis at fair value	2,660	1,246
Level 2 | Recurring | U.S. Treasury, agencies and corporations
ASSETS MEASURED ON A RECURRING BASIS
Total trading account securities	747	633
Securities available for sale	8,938	1,000
Level 2 | Recurring | States and political subdivisions
ASSETS MEASURED ON A RECURRING BASIS
Total trading account securities	91	24
Securities available for sale	0	0
Level 2 | Recurring | Other securities
ASSETS MEASURED ON A RECURRING BASIS
Total trading account securities	13	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	10,121	10,106
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	21	47
Level 2 | Recurring | Mortgage-backed securities | Agency residential mortgage-backed securities
ASSETS MEASURED ON A RECURRING BASIS
Securities available for sale	5,408	2,164
Level 2 | Recurring | Short positions
LIABILITIES MEASURED ON A RECURRING BASIS
Short positions	555	503
Level 2 | Recurring | Long positions
LIABILITIES MEASURED ON A RECURRING BASIS
Derivative liabilities, gross	2,105	743
Derivative liabilities, netting adjustments	0	0
Total derivative liabilities	2,105	743
Level 2 | Recurring | Interest rate
ASSETS MEASURED ON A RECURRING BASIS
Derivative assets, gross	920	1,528
Level 2 | Recurring | Interest rate | Long positions
LIABILITIES MEASURED ON A RECURRING BASIS
Derivative liabilities, gross	273	288
Level 2 | Recurring | Foreign exchange
ASSETS MEASURED ON A RECURRING BASIS
Derivative assets, gross	15	31
Level 2 | Recurring | Foreign exchange | Long positions
LIABILITIES MEASURED ON A RECURRING BASIS
Derivative liabilities, gross	15	31
Level 2 | Recurring | Commodity
ASSETS MEASURED ON A RECURRING BASIS
Derivative assets, gross	1,799	424
Level 2 | Recurring | Commodity | Long positions
LIABILITIES MEASURED ON A RECURRING BASIS
Derivative liabilities, gross	1,805	408
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	1	0
Level 2 | Recurring | Other
ASSETS MEASURED ON A RECURRING BASIS
Derivative assets, gross	16	26
Level 2 | Recurring | Other | Long positions
LIABILITIES MEASURED ON A RECURRING BASIS
Derivative liabilities, gross	11	16
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	22	13
Total other investments	10	14
Loans, net of unearned income (residential)	10	11
Loans held for sale (residential)	0	0
Derivative assets, gross	40	91
Derivative assets, netting adjustments	0	0
Total derivative assets	40	91
Accrued income and other assets	0	0
Total assets at fair value	82	129
LIABILITIES MEASURED ON A RECURRING BASIS
Total liabilities on a recurring basis at fair value	6	11
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	22	13
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	9	13
Level 3 | Recurring | Equity Investments
ASSETS MEASURED ON A RECURRING BASIS
Total other investments	9	13
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	6	11
Derivative liabilities, netting adjustments	0	0
Total derivative liabilities	6	11
Level 3 | Recurring | Interest rate
ASSETS MEASURED ON A RECURRING BASIS
Derivative assets, gross	34	56
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	2
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	0	1
Level 3 | Recurring | Credit | Long positions
LIABILITIES MEASURED ON A RECURRING BASIS
Derivative liabilities, gross	6	11
Level 3 | Recurring | Other
ASSETS MEASURED ON A RECURRING BASIS
Derivative assets, gross		32
Level 3 | Recurring | Other | Long positions
LIABILITIES MEASURED ON A RECURRING BASIS
Derivative liabilities, gross	0	0
Measured at NAV | Recurring | Equity Investments Direct, NAV
ASSETS MEASURED ON A RECURRING BASIS
Total other investments	16	7
Measured at NAV | Recurring | Equity Investments Indirect, NAV
ASSETS MEASURED ON A RECURRING BASIS
Total other investments	6	7
Agency residential collateralized mortgage obligations | Recurring
ASSETS MEASURED ON A RECURRING BASIS
Securities available for sale	16,104	14,273
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	16,104	14,273
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	$ 48	$ 53

XML

Fair Value Measurements - Additional Information (Details) - USD ($)	3 Months Ended
	Sep. 30, 2021	Dec. 31, 2020
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Other equity investments	$ 168,000,000	$ 171,000,000
Impairment loss	0
Loans, net of allowance	97,525,000,000	99,559,000,000
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	10,000,000	11,000,000
Carrying Amount | Discontinued Operations | Education Lending
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Loans, net of allowance	602,000,000	674,000,000
Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Loans at fair value	10,000,000	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	518,000,000	567,000,000
Level 3 | Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Loans at fair value	$ 10,000,000	$ 11,000,000

XML

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		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Fair Value	$ 49		$ 49
Unfunded Commitments	13		13
Funded Commitments	0	$ 1	4	$ 1
Funded Other	0	0	0	0
Direct investments
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Fair Value	1		1
Unfunded Commitments	0		0
Funded Commitments	0	0	0	0
Funded Other	0	0	0	0
Indirect investments (measured at NAV)
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Fair Value	48		48
Unfunded Commitments	13		13
Funded Commitments	0	1	4	1
Funded Other	$ 0	$ 0	$ 0	$ 0

XML

Fair Value Measurements - Change in Fair Values of Level 3 Financial Instruments (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Other investments
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Beginning of Period Balance	$ 9	$ 12	$ 13	$ 12
Gains (Losses) Included in Other Comprehensive Income	0		0	0
Gains (Losses) Included in Earnings	0	0	(1)	0
Purchases	0		0	0
Sales	0		0	0
Settlements	0		0	0
Transfers Other	0		0	0
Transfers into Level 3	0		0	0
Transfers out of Level 3	0		(3)	0
End of Period Balance	9	12	9	12
Unrealized Gains (Losses) Included in Earnings	0	0	(1)	0
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	1	1
Gains (Losses) Included in Other Comprehensive Income	0	0	0	0
Gains (Losses) Included in Earnings	0	0	0	0
Purchases	0	0	0	0
Sales	0	0	0	0
Settlements	0	0	0	0
Transfers Other	0	0	0	0
Transfers into Level 3	0	0	0	0
Transfers out of Level 3	0	0	0	0
End of Period Balance	1	1	1	1
Unrealized Gains (Losses) Included in Earnings	0	0	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	22	12	13	11
Gains (Losses) Included in Other Comprehensive Income	0	0	9	1
Gains (Losses) Included in Earnings	0	0	0	0
Purchases	0	0	0	0
Sales	0	0	0	0
Settlements	0	0	0	0
Transfers Other	0		0	0
Transfers into Level 3	0	0	0	0
Transfers out of Level 3	0		0	0
End of Period Balance	22	12	22	12
Unrealized Gains (Losses) Included in Earnings	0	0	0	0
Interest rate
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Beginning of Period Balance	35	52	56	22
Gains (Losses) Included in Other Comprehensive Income	0		0	0
Gains (Losses) Included in Earnings	(5)	(3)	(20)	18
Purchases	1	2	1	14
Sales	(1)	(4)	(7)	(5)
Settlements	0		0	0
Transfers Other	0		0	0
Transfers into Level 3	9	36	21	98
Transfers out of Level 3	(5)	(2)	(17)	(66)
End of Period Balance	34	81	34	81
Unrealized Gains (Losses) Included in Earnings	0		0	0
Credit
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Beginning of Period Balance	(5)	(17)	(10)	(8)
Gains (Losses) Included in Other Comprehensive Income	0	0	0	0
Gains (Losses) Included in Earnings	0	4	4	(6)
Purchases	(1)	0	0	1
Sales	0	0	0
Settlements	0	0	0	0
Transfers Other	0	0	0	0
Transfers into Level 3	0	0	0	0
Transfers out of Level 3		0	0
End of Period Balance	(6)	(13)	(6)	(13)
Unrealized Gains (Losses) Included in Earnings	0	0	0	0
Other
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Beginning of Period Balance	13	46	32	5
Gains (Losses) Included in Other Comprehensive Income	0	0	0	0
Gains (Losses) Included in Earnings	0	5	(3)	0
Purchases	0	0	0	0
Sales	0		0	0
Settlements	0	0	0	0
Transfers Other	(7)	(7)	(23)	(39)
Transfers into Level 3	0	0	0	0
Transfers out of Level 3	0		0	0
End of Period Balance	6	44	6	44
Unrealized Gains (Losses) Included in Earnings	0	0	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	0	0	0
Gains (Losses) Included in Other Comprehensive Income	0	0	0	0
Gains (Losses) Included in Earnings	0	0	0	0
Purchases	0	0	0	0
Sales	0	0	(1)	(10)
Settlements	0	0	0	0
Transfers Other	0	1	1	(11)
Transfers into Level 3	0	0	0	0
Transfers out of Level 3	0	0	0	0
End of Period Balance	0	1	0	1
Unrealized Gains (Losses) Included in Earnings	0	0	0	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	5	11	4
Gains (Losses) Included in Other Comprehensive Income	0	0	0	0
Gains (Losses) Included in Earnings	0	0	0	0
Purchases	0	0	0	0
Sales	(1)	0	(2)	(2)
Settlements	0	0	0	0
Transfers Other	0	3	1	(6)
Transfers into Level 3	0	0	0	0
Transfers out of Level 3	0	0	0	0
End of Period Balance	10	8	10	8
Unrealized Gains (Losses) Included in Earnings	$ 0	0	$ 0	0
Trading account assets | Other mortgage-backed securities
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Beginning of Period Balance		36		0
Gains (Losses) Included in Other Comprehensive Income		0		0
Gains (Losses) Included in Earnings		0		0
Purchases		0		0
Sales		(9)		(9)
Settlements		0		0
Transfers Other		0		0
Transfers into Level 3		0		36
Transfers out of Level 3		0
End of Period Balance		27		27
Unrealized Gains (Losses) Included in Earnings		$ 0		$ 0

XML

Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Nonrecurring Basis (Details) - Nonrecurring - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020
ASSETS MEASURED ON A NONRECURRING BASIS
Collateral-dependent loans	$ 5	$ 108
Accrued income and other assets	74	56
Total assets at fair value	79	164
Level 1
ASSETS MEASURED ON A NONRECURRING BASIS
Collateral-dependent loans	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
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	5	108
Accrued income and other assets	74	56
Total assets at fair value	$ 79	$ 164

XML

Fair Value Measurements - Quantitative Information about Level 3 Fair Value Measurements (Details) $ in Millions	Sep. 30, 2021 USD ($)	Dec. 31, 2020 USD ($)
Fair Value, Option, Quantitative Disclosures [Line Items]
Securities available for sale	$ 40,594	$ 27,556
Derivative assets	2,553	1,798
Mortgage servicing assets excluded from OREO	62	40
Recurring
Fair Value, Option, Quantitative Disclosures [Line Items]
Securities available for sale	40,594	27,556
Other investments	80	81
Derivative assets	2,553	1,798
Nonrecurring
Fair Value, Option, Quantitative Disclosures [Line Items]
Impaired loans	5	108
Level 3 | Recurring
Fair Value, Option, Quantitative Disclosures [Line Items]
Securities available for sale	22	13
Other investments	10	14
Derivative assets	40	91
Level 3 | Nonrecurring
Fair Value, Option, Quantitative Disclosures [Line Items]
Impaired loans	5	108
Valuation Technique, Discounted Cash Flow | Level 3 | Recurring
Fair Value, Option, Quantitative Disclosures [Line Items]
Other investments	$ 9	$ 13
Valuation Technique, Discounted Cash Flow | Measurement Input, Discount Rate | Level 3 | Recurring
Fair Value, Option, Quantitative Disclosures [Line Items]
Securities available for sale, measurement input	0.1661	0.1509
Valuation Technique, Discounted Cash Flow | Measurement Input, Discount Rate | Level 3 | Recurring | Minimum
Fair Value, Option, Quantitative Disclosures [Line Items]
Other investments, measurement input		0.1390
Valuation Technique, Discounted Cash Flow | Measurement Input, Discount Rate | Level 3 | Recurring | Maximum
Fair Value, Option, Quantitative Disclosures [Line Items]
Other investments, measurement input		0.1704
Valuation Technique, Discounted Cash Flow | Measurement Input, Discount Rate | Level 3 | Recurring | Weighted Average
Fair Value, Option, Quantitative Disclosures [Line Items]
Other investments, measurement input	0.1415	0.1547
Valuation Technique, Discounted Cash Flow | Measurement Input, Discount Marketability | Level 3 | Recurring
Fair Value, Option, Quantitative Disclosures [Line Items]
Securities available for sale, measurement input	0.3000	0.3000
Other investments, measurement input		0.3000
Valuation Technique, Discounted Cash Flow | Measurement Input, Price Volatility | Level 3 | Recurring
Fair Value, Option, Quantitative Disclosures [Line Items]
Securities available for sale, measurement input	0.5500	0.4400
Other investments, measurement input		0.5200
Valuation, Market Comparable Pricing | Level 3 | Recurring
Fair Value, Option, Quantitative Disclosures [Line Items]
Loans, net of unearned income (residential)	$ 10	$ 11
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	0.9730	0.9904
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	0.9413	0.9417
Valuation, Fair Value Of Underlying Collateral | Level 3 | Nonrecurring
Fair Value, Option, Quantitative Disclosures [Line Items]
Impaired loans	$ 5	$ 108
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	0.0000	1.0000
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	0.0000	0.3600
Valuation, Appraised Value | Level 3 | Nonrecurring
Fair Value, Option, Quantitative Disclosures [Line Items]
OREO and other Level 3 assets	$ 12	$ 16
Interest rate | Valuation Technique, Discounted Cash Flow | Level 3 | Recurring
Fair Value, Option, Quantitative Disclosures [Line Items]
Derivative assets	$ 34	$ 56
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	0.1660	0.0790
Interest rate | Valuation Technique, Discounted Cash Flow | Measurement Input, Internal Risk Rating | Level 3 | Recurring | Minimum
Fair Value, Option, Quantitative Disclosures [Line Items]
Derivative assets, measurement input	1	1
Interest rate | Valuation Technique, Discounted Cash Flow | Measurement Input, Internal Risk Rating | Level 3 | Recurring | Maximum
Fair Value, Option, Quantitative Disclosures [Line Items]
Derivative assets, measurement input	19	19
Interest rate | Valuation Technique, Discounted Cash Flow | Measurement Input, Internal Risk Rating | Level 3 | Recurring | Weighted Average
Fair Value, Option, Quantitative Disclosures [Line Items]
Derivative assets, measurement input	15.133	9.675
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	0.483
Credit | Valuation Technique, Discounted Cash Flow | Level 3 | Recurring
Fair Value, Option, Quantitative Disclosures [Line Items]
Derivative assets	$ 0	$ 1
Derivative liabilities	$ (6)	$ (11)
Credit | 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
Derivative liabilities, measurement input	0.0002	0.0002
Credit | 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
Derivative liabilities, measurement input	1	1
Credit | 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	0.0310	0.0470
Derivative liabilities, measurement input	0.1491	0.1545
Credit | Valuation Technique, Discounted Cash Flow | Measurement Input, Internal Risk Rating | Level 3 | Recurring | Minimum
Fair Value, Option, Quantitative Disclosures [Line Items]
Derivative assets, measurement input	1	1
Derivative liabilities, measurement input	1	1
Credit | Valuation Technique, Discounted Cash Flow | Measurement Input, Internal Risk Rating | Level 3 | Recurring | Maximum
Fair Value, Option, Quantitative Disclosures [Line Items]
Derivative assets, measurement input	19	19
Derivative liabilities, measurement input	19	19
Credit | Valuation Technique, Discounted Cash Flow | Measurement Input, Internal Risk Rating | Level 3 | Recurring | Weighted Average
Fair Value, Option, Quantitative Disclosures [Line Items]
Derivative assets, measurement input	9.024	10.478
Derivative liabilities, measurement input	8.197	8.555
Credit | 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
Derivative liabilities, measurement input	0	0
Credit | 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
Derivative liabilities, measurement input	1	1
Credit | 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	0.498	0.490
Derivative liabilities, measurement input	0.422	0.431
Other | Valuation Technique, Discounted Cash Flow | Level 3 | Recurring
Fair Value, Option, Quantitative Disclosures [Line Items]
Derivative assets	$ 6	$ 32
Other | Valuation Technique, Discounted Cash Flow | Measurement Input, Loan Closing Rates | Level 3 | Recurring | Minimum
Fair Value, Option, Quantitative Disclosures [Line Items]
Derivative assets, measurement input	0.0590	0.3695
Other | Valuation Technique, Discounted Cash Flow | Measurement Input, Loan Closing Rates | Level 3 | Recurring | Maximum
Fair Value, Option, Quantitative Disclosures [Line Items]
Derivative assets, measurement input	0.9970	0.9968
Other | Valuation Technique, Discounted Cash Flow | Measurement Input, Loan Closing Rates | Level 3 | Recurring | Weighted Average
Fair Value, Option, Quantitative Disclosures [Line Items]
Derivative assets, measurement input	0.8517	0.7751
Other securities | Recurring
Fair Value, Option, Quantitative Disclosures [Line Items]
Securities available for sale	$ 23	$ 13
Other securities | Level 3 | Recurring
Fair Value, Option, Quantitative Disclosures [Line Items]
Securities available for sale	22	13
Other securities | Valuation Technique, Discounted Cash Flow | Level 3 | Recurring
Fair Value, Option, Quantitative Disclosures [Line Items]
Securities available for sale	22	13
Principal investments, Direct | Recurring
Fair Value, Option, Quantitative Disclosures [Line Items]
Other investments	1	1
Principal investments, Direct | Level 3 | Recurring
Fair Value, Option, Quantitative Disclosures [Line Items]
Other investments	$ 1	$ 1

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Fair Value Measurements - Fair Value Disclosures of Financial Instruments (Details) - USD ($) $ in Millions		Sep. 30, 2021	Dec. 31, 2020
ASSETS
Trading account assets		$ 902	$ 735
Derivative assets		2,553	1,798
Securities available for sale		40,594	27,556
Amortized cost		8,423	7,595
Held-to-maturity securities		8,664	8,023
Loans, net of unearned income (residential)		98,609	101,185
Loans held for sale	[1]	1,805	1,583
LIABILITIES
Long-term debt		13,165	13,709
Carrying Amount
ASSETS
Trading account assets		902	735
Other investments		607	621
Loans, net of unearned income (residential)		10	11
Loans held for sale		237	264
Securities available for sale		40,594	27,556
Amortized cost		8,423	7,595
Loans, net of unearned income (residential)		97,515	99,548
Loans held for sale		1,568	1,319
Short-term investments			0
Cash and short-term investments		20,371	17,285
LIABILITIES
Time deposits		4,205	5,743
Short-term borrowings		995	979
Long-term debt		13,165	13,709
Deposits with no stated maturity		147,726	129,539
Fair Value
ASSETS
Trading account assets		902	735
Other investments		607	621
Loans, net of unearned income (residential)		10	11
Loans held for sale		237	264
Securities available for sale		40,594	27,556
Held-to-maturity securities		8,664	8,023
Loans, net of unearned income (residential)		97,435	98,946
Loans held for sale		1,568	1,319
Short-term investments			0
Cash and short-term investments		20,371	17,285
LIABILITIES
Time deposits		4,214	5,765
Short-term borrowings		995	979
Long-term debt		13,792	14,659
Deposits with no stated maturity		147,726	129,539
Level 1 | Fair Value
ASSETS
Trading account assets		17	0
Other investments		0	0
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 (residential)		0	0
Loans held for sale		0	0
Short-term investments			0
Cash and short-term investments		20,371	17,285
LIABILITIES
Time deposits		0	0
Short-term borrowings		212	256
Long-term debt		13,076	13,925
Deposits with no stated maturity		0	0
Level 2 | Fair Value
ASSETS
Trading account assets		885	735
Other investments		0	0
Loans, net of unearned income (residential)		0	0
Loans held for sale		237	264
Securities available for sale		40,572	27,543
Held-to-maturity securities		8,664	8,023
Loans, net of unearned income (residential)		0	0
Loans held for sale		0	0
Short-term investments			0
Cash and short-term investments		0	0
LIABILITIES
Time deposits		4,214	5,765
Short-term borrowings		783	723
Long-term debt		716	734
Deposits with no stated maturity		147,726	129,539
Level 3 | Fair Value
ASSETS
Trading account assets		0	0
Other investments		537	555
Loans, net of unearned income (residential)		10	11
Loans held for sale		0	0
Securities available for sale		22	13
Held-to-maturity securities		0	0
Loans, net of unearned income (residential)		97,435	98,946
Loans held for sale		1,568	1,319
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		70	66
Derivatives Not Designated as Hedging Instruments | Carrying Amount
ASSETS
Derivative assets		2,469	1,676
LIABILITIES
Derivative liabilities		249	154
Derivatives Not Designated as Hedging Instruments | Fair Value
ASSETS
Derivative assets		2,469	1,675
Derivative assets, Netting Adjustment		(342)	(433)
LIABILITIES
Derivative liabilities		249	154
Derivative liabilities, Netting Adjustment		(1,911)	(675)
Derivatives Not Designated as Hedging Instruments | Level 1 | Fair Value
ASSETS
Derivative assets		65	78
LIABILITIES
Derivative liabilities		60	72
Derivatives Not Designated as Hedging Instruments | Level 2 | Fair Value
ASSETS
Derivative assets		2,739	1,939
LIABILITIES
Derivative liabilities		2,093	746
Derivatives Not Designated as Hedging Instruments | Level 3 | Fair Value
ASSETS
Derivative assets		7	91
LIABILITIES
Derivative liabilities		7	11
Derivatives Designated as Hedging Instruments | Carrying Amount
ASSETS
Derivative assets		84	123
LIABILITIES
Derivative liabilities		11	(3)
Derivatives Designated as Hedging Instruments | Fair Value
ASSETS
Derivative assets		84	123
Derivative assets, Netting Adjustment		39	53
LIABILITIES
Derivative liabilities		11	(3)
Derivative liabilities, Netting Adjustment		0	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		45	70
LIABILITIES
Derivative liabilities		11	(3)
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 $237 million at September 30, 2021, and $264 million at December 31, 2020.

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Securities - Details of Securities (Details) - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020
SECURITIES AVAILABLE FOR SALE
Amortized Cost	$ 40,661	$ 26,810
Gross Unrealized Gains	487	804
Gross Unrealized Losses	554	58
Fair Value	40,594	27,556
HELD-TO-MATURITY SECURITIES
Amortized Cost	8,423	7,595
Gross Unrealized Gains	241	428
Gross Unrealized Losses	0	0
Fair Value	8,664	8,023
Accrued interest	211	241
U.S. Treasury, agencies and corporations
SECURITIES AVAILABLE FOR SALE
Amortized Cost	8,960	1,000
Gross Unrealized Gains	0	0
Gross Unrealized Losses	22	0
Fair Value	8,938	1,000
Agency residential collateralized mortgage obligations
SECURITIES AVAILABLE FOR SALE
Amortized Cost	16,143	14,001
Gross Unrealized Gains	168	297
Gross Unrealized Losses	207	25
Fair Value	16,104	14,273
HELD-TO-MATURITY SECURITIES
Amortized Cost	2,485	3,775
Gross Unrealized Gains	69	124
Gross Unrealized Losses	0	0
Fair Value	2,554	3,899
Agency residential mortgage-backed securities
SECURITIES AVAILABLE FOR SALE
Amortized Cost	5,409	2,094
Gross Unrealized Gains	51	70
Gross Unrealized Losses	52	0
Fair Value	5,408	2,164
HELD-TO-MATURITY SECURITIES
Amortized Cost	184	271
Gross Unrealized Gains	7	14
Gross Unrealized Losses	0	0
Fair Value	191	285
Asset-backed securities (c)
HELD-TO-MATURITY SECURITIES
Amortized Cost	2,837	19
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Fair Value	2,837	19
Asset-backed securities (c) | Senior Notes
HELD-TO-MATURITY SECURITIES
Amortized Cost	2,800
Other securities
SECURITIES AVAILABLE FOR SALE
Amortized Cost	8	8
Gross Unrealized Gains	15	5
Gross Unrealized Losses		0
Fair Value	23	13
HELD-TO-MATURITY SECURITIES
Amortized Cost	16	15
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Fair Value	16	15
Mortgage-backed securities | Agency commercial mortgage-backed securities
SECURITIES AVAILABLE FOR SALE
Amortized Cost	10,141	9,707
Gross Unrealized Gains	253	432
Gross Unrealized Losses	273	33
Fair Value	10,121	10,106
HELD-TO-MATURITY SECURITIES
Amortized Cost	2,901	3,515
Gross Unrealized Gains	165	290
Gross Unrealized Losses	0	0
Fair Value	3,066	3,805
Securities available for sale
HELD-TO-MATURITY SECURITIES
Accrued interest	53	42
Securities held-to-maturity
HELD-TO-MATURITY SECURITIES
Accrued interest	$ 15	$ 15

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Securities - Available for Sale Securities (Unrealized Loss Position) (Details) - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020
Held-to-maturity securities:
Temporarily impaired securities, fair value, less than 12 months	$ 32,884	$ 4,830
Temporarily impaired securities, gross unrealized losses, less than 12 months	439	58
Temporarily impaired securities, fair value, 12 months or longer	1,968	29
Temporarily impaired securities, gross unrealized losses, 12 months or longer	115	0
Temporarily impaired securities, fair value	34,852	4,859
Temporarily impaired securities, gross unrealized losses	554	58
U.S. Treasury, agencies and corporations
Securities available for sale:
Fair value, less than 12 months	8,938
Gross unrealized losses, less than 12 months	22
Fair value, 12 months or longer	0
Gross unrealized losses, 12 months or longer	0
Fair value	8,938
Gross unrealized losses	22
Agency residential collateralized mortgage obligations
Securities available for sale:
Fair value, less than 12 months	7,647	2,110
Gross unrealized losses, less than 12 months	150	25
Fair value, 12 months or longer	868	0
Gross unrealized losses, 12 months or longer	57	0
Fair value	8,515	2,110
Gross unrealized losses	207	25
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		24
Gross unrealized losses, 12 months or longer		0
Fair value		24
Gross unrealized losses		0
Agency residential collateralized mortgage obligations | Maximum
Securities available for sale:
Gross unrealized losses, 12 months or longer		1
Agency commercial mortgage-backed securities
Securities available for sale:
Fair value, less than 12 months	4,219	2,709
Gross unrealized losses, less than 12 months	215	33
Fair value, 12 months or longer	1,093	0
Gross unrealized losses, 12 months or longer	58	0
Fair value	5,312	2,709
Gross unrealized losses	273	33
Asset-backed securities (c)
Held-to-maturity securities:
Fair value, less than 12 months	1
Gross unrealized losses, less than 12 months	0
Fair value, 12 months or longer	1
Gross unrealized losses, 12 months or longer	0
Fair value	2
Gross unrealized losses	0
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	8,460	5
Gross unrealized losses, less than 12 months	0	0
Fair value, 12 months or longer	0	0
Gross unrealized losses, 12 months or longer	0	0
Fair value	8,460	5
Gross unrealized losses	0	0
Other securities | Maximum
Held-to-maturity securities:
Gross unrealized losses, less than 12 months		1
Mortgage-backed securities | Agency residential mortgage-backed securities
Securities available for sale:
Fair value, less than 12 months	3,619	6
Gross unrealized losses, less than 12 months	52	0
Fair value, 12 months or longer	6	5
Gross unrealized losses, 12 months or longer	0	0
Fair value	3,625	11
Gross unrealized losses	$ 52	0
Mortgage-backed securities | Agency residential mortgage-backed securities | Maximum
Securities available for sale:
Gross unrealized losses, less than 12 months		1
Gross unrealized losses, 12 months or longer		$ 1

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Securities - Additional Information (Details) $ in Billions	Sep. 30, 2021 USD ($)
Investments, Debt and Equity Securities [Abstract]
Loans pledged as collateral	$ 14.7

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Securities - Securities by Maturity (Details) - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020
Investments, Debt and Equity Securities [Abstract]
Amortized Cost of Securities Available for sale, Due in one year or less	$ 230
Amortized Cost of Securities Available for sale, Due after one through five years	19,818
Amortized Cost of Securities Available for sale, Due after five through ten years	17,312
Amortized Cost of Securities Available for sale, Due after ten years	3,301
Amortized Cost	40,661
Fair Value of Securities Available for sale, Due in one year or less	247
Fair Value of Securities Available for sale, Due after one through five years	20,076
Fair Value of Securities Available for sale, Due after five through ten years	17,128
Fair Value of Securities Available for sale, Due after ten years	3,143
Fair Value	40,594	$ 27,556
Amortized Cost of Held-to-Maturity Securities, Due in one year or less	93
Amortized Cost of Held-to-Maturity Securities, Due after one through five years	6,330
Amortized Cost of Held-to-Maturity Securities, Due after five through ten years	2,000
Amortized Cost of Held-to-Maturity Securities, Due after ten years	0
Amortized Cost	8,423	7,595
Fair Value of Held-to-Maturity Securities, Due in one year or less	95
Fair Value of Held-to-Maturity Securities, Due after one through five years	6,452
Fair Value of Held-to-Maturity Securities, Due after five through ten years	2,117
Fair Value of Held-to-Maturity Securities, Due after ten years	0
Total Fair Value of Held-to-Maturity Securities	$ 8,664	$ 8,023

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Derivatives and Hedging Activities - Additional Information (Details) $ in Millions	9 Months Ended
	Sep. 30, 2021 USD ($) derivative rating	Dec. 31, 2020 USD ($) rating
Credit Derivatives [Line Items]
Derivative assets after effects of bilateral collateral and master netting agreements	$ 84
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	2,500
Derivative liabilities not designated as hedging instruments after effects of bilateral collateral and master netting agreements, and a reserve for potential future losses	249
Reclassify of after-tax net gains on derivative instruments from AOCI	$ 167
Length of time hedge in cash flow hedge	12 months
Reclassification of net losses related to terminated cash flow hedges from AOCI to income	$ 6
Maximum length of time over which forecasted transactions are hedged, years	5 years 10 months 24 days
Cash collateral netted against derivative assets	$ 49	$ 63
Collateral netted against derivative liabilities	1,600	232
Gross exposure on derivatives, after taking into account the effects of bilateral collateral and master netting agreements	159
Net exposure on derivatives, after taking into account, the effects of bilateral collateral and master netting agreements	175
Over-collateralization on derivatives to broker-dealers and banks, after the application of master netting agreements and collateral	173
Additional collateral held in the form of securities	2
Default reserve associated with uncollateralized contracts	25
Gross exposure on derivatives after taking into account effects of master netting agreements	2,500
Net exposure on derivatives with clients after application of master netting agreements collateral and related reserve	2,400
Net liability position totaled	7	$ 9
Banking Subsidiary
Credit Derivatives [Line Items]
Net liability position totaled	1,700
Derivative assets included in net liability position	194
Derivative liabilities included in net liability position	1,900
Cash and securities collateral posted	$ 1,600
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	$ 2

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Derivatives and Hedging Activities - Fair Values, Volume of Activity and Gain (Loss) Information Related to Derivative Instruments (Details) - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020
Derivatives, Fair Value [Line Items]
Notional Amount	$ 135,570	$ 136,020
Derivative assets, netting adjustments	(302)	(380)
Derivative Assets, net	2,552	1,796
Derivative liabilities, netting adjustments	(1,911)	(675)
Derivative Liabilities, net	230	140
Derivatives Not Designated as Hedging Instruments
Derivatives, Fair Value [Line Items]
Notional Amount	99,147	99,885
Derivative Assets	2,810	2,108
Derivative Liabilities	2,160	829
Interest rate | Derivatives Designated as Hedging Instruments
Derivatives, Fair Value [Line Items]
Notional Amount	36,423	36,135
Derivative Assets	45	70
Derivative Liabilities	11	(3)
Interest rate | Derivatives Not Designated as Hedging Instruments
Derivatives, Fair Value [Line Items]
Notional Amount	72,688	78,424
Derivative Assets	909	1,514
Derivative Liabilities	262	291
Foreign exchange | Derivatives Not Designated as Hedging Instruments
Derivatives, Fair Value [Line Items]
Notional Amount	7,378	6,385
Derivative Assets	80	109
Derivative Liabilities	75	103
Commodity | Derivatives Not Designated as Hedging Instruments
Derivatives, Fair Value [Line Items]
Notional Amount	15,090	9,702
Derivative Assets	1,799	426
Derivative Liabilities	1,805	408
Credit | Derivatives Not Designated as Hedging Instruments
Derivatives, Fair Value [Line Items]
Notional Amount	339	423
Derivative Assets	0	1
Derivative Liabilities	7	11
Other
Derivatives, Fair Value [Line Items]
Derivative Assets	6
Other | Derivatives Not Designated as Hedging Instruments
Derivatives, Fair Value [Line Items]
Notional Amount	3,652	4,951
Derivative Assets	22	58
Derivative Liabilities	11	16
Net derivatives
Derivatives, Fair Value [Line Items]
Notional Amount	135,570	136,020
Derivative Assets, net	2,553	1,798
Derivative Liabilities, net	260	151
Other collateral
Derivatives, Fair Value [Line Items]
Notional Amount	0	0
Derivative Assets, net	(1)	(2)
Derivative Liabilities, net	$ (30)	$ (11)

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Derivatives and Hedging Activities - Cumulative Basis Adjustments on Fair Value Hedges (Details) - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020
Derivatives, Fair Value [Line Items]
Fair Value	$ 40,594	$ 27,556
Long-term debt | Interest rate
Derivatives, Fair Value [Line Items]
Carrying amount of hedged item	8,077	8,182
Hedge accounting basis adjustment	205	416
Securities available for sale | Interest rate
Derivatives, Fair Value [Line Items]
Carrying amount of hedged item	6,280	2,080
Hedge accounting basis adjustment	168	21
Fair Value	7,700	2,500
Derivatives Not Designated as Hedging Instruments | Long-term debt | Interest rate
Derivatives, Fair Value [Line Items]
Hedge accounting basis adjustment	$ (7)	$ (8)

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Derivatives and Hedging Activities - Effect of Fair Value and Cash Flow Hedges on Income (Details) - USD ($) $ in Millions		3 Months Ended		9 Months Ended
		Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Derivative Instruments, Gain (Loss) [Line Items]
Interest expense — Long-term debt		$ (54)	$ (64)	$ (168)	$ (225)
Interest income — Loans		882	927	2,659	2,933
Interest Income - securities		135	115	398	365
Investment banking and debt placement fees		235	146	614	418
Deposits		(15)	(54)	(52)	(319)
Other income	[1]	25	28	89	(27)
Net gain (loss) on cash flow hedging relationships
Net Gains (Losses) Reclassified From OCI Into Income		77	99	250	221
Interest rate | Interest expense – long-term debt | Fair Value Hedging
Net gains (losses) on fair value hedging relationships
Recognized on hedged items		37	47	210	(252)
Recognized on derivatives designated as hedging instruments		(8)	(7)	(113)	343
Net income (expense) recognized on fair value hedges		29	40	97	91
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)	(3)	(3)
Net income (expense) recognized on cash flow hedges		(1)	(1)	(3)
Interest rate | Interest income – loans | Fair Value Hedging
Net gains (losses) on fair value hedging relationships
Recognized on hedged items		0	0	0	0
Recognized on derivatives designated as hedging instruments		0	0	0	0
Net income (expense) recognized on fair value hedges		0	0	0	0
Interest rate | 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		79	100	253	224
Net Gains (Losses) Reclassified From OCI Into Income		79	100	253	224
Net income (expense) recognized on cash flow hedges		79	100	253
Interest rate | Interest Income - securities | Fair Value Hedging
Net gains (losses) on fair value hedging relationships
Recognized on hedged items		(38)	0	(147)	0
Recognized on derivatives designated as hedging instruments		39	0	147	0
Net income (expense) recognized on fair value hedges		1	0	0	0
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	0	0
Net income (expense) recognized on cash flow hedges		0	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	0	0
Recognized on derivatives designated as hedging instruments		0	0	0	0
Net income (expense) recognized on fair value hedges		0	0	0	0
Interest rate | Investment banking and debt placement fees | Cash Flow Hedging
Net gain (loss) on cash flow hedging relationships
Realized gains (losses) (pre-tax) reclassified from AOCI into net income					0
Net income (expense) recognized on cash flow hedges		(1)	0	0
Interest rate | Interest expense - deposits | Fair Value Hedging
Net gains (losses) on fair value hedging relationships
Recognized on hedged items			0	0	0
Recognized on derivatives designated as hedging instruments			0	0	0
Net income (expense) recognized on fair value hedges			0	0	0
Interest rate | Interest expense - deposits | Cash Flow Hedging
Net gain (loss) on cash flow hedging relationships
Realized gains (losses) (pre-tax) reclassified from AOCI into net income		0	0	0	0
Net income (expense) recognized on cash flow hedges		0	0	0
Interest rate | Other income | Fair Value Hedging
Net gains (losses) on fair value hedging relationships
Recognized on hedged items		0	0	0	0
Recognized on derivatives designated as hedging instruments		0	0	0	0
Net income (expense) recognized on fair value hedges		0	0	0	0
Interest rate | Other income | Cash Flow Hedging
Net gain (loss) on cash flow hedging relationships
Realized gains (losses) (pre-tax) reclassified from AOCI into net income		0	0	0	0
Net income (expense) recognized on cash flow hedges		0	0	0
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		$ (1)	$ 0	$ 0	$ 0

[1] For the three and nine months ended September 30, 2021, net securities gains (losses) totaled less than $1 million. For the three months ended September 30, 2021 and September 30, 2020, we did not have any impairment losses related to securities. For the three months ended September 30, 2020, we had no net securities gains (losses). For the nine months ended September 30, 2020, net securities gains (losses) totaled $4 million.

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Derivatives and Hedging Activities - Derivative Instrument Cash Flow Hedge Earning Recognized by Income Statement Location (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Derivatives, Fair Value [Line Items]
Net Gains (Losses) Recognized in OCI	$ 2	$ 15	$ (133)	$ 613
Net Gains (Losses) Reclassified From OCI Into Income	77	99	250	221
Interest income – loans | Interest rate | Cash Flow Hedges
Derivatives, Fair Value [Line Items]
Net Gains (Losses) Recognized in OCI	(2)	5	(144)	629
Net Gains (Losses) Reclassified From OCI Into Income	79	100	253	224
Interest expense — Long-term debt | Interest rate | Cash Flow Hedges
Derivatives, Fair Value [Line Items]
Net Gains (Losses) Recognized in OCI	0	0	2	(6)
Net Gains (Losses) Reclassified From OCI Into Income	(1)	(1)	(3)	(3)
Investment banking and debt placement fees | Interest rate | Cash Flow Hedges
Derivatives, Fair Value [Line Items]
Net Gains (Losses) Recognized in OCI	4	10	9	(10)
Net Gains (Losses) Reclassified From OCI Into Income	$ (1)	$ 0	0	0
Other income | Foreign exchange | Net Investment Hedges
Derivatives, Fair Value [Line Items]
Net Gains (Losses) Recognized in OCI			0	0
Net Gains (Losses) Reclassified From OCI Into Income			$ 0	$ 0

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Derivatives and Hedging Activities - Pre-Tax Net Gains (Losses) on Derivatives Not Designated as Hedging Instruments (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Derivative Instruments, Gain (Loss) [Line Items]
Total net gains (losses)	$ 16	$ 34	$ 35	$ 82
Interest rate
Derivative Instruments, Gain (Loss) [Line Items]
Total net gains (losses)	8	4	20	13
Foreign exchange
Derivative Instruments, Gain (Loss) [Line Items]
Total net gains (losses)	12	9	34	29
Commodity
Derivative Instruments, Gain (Loss) [Line Items]
Total net gains (losses)	4	5	12	13
Credit
Derivative Instruments, Gain (Loss) [Line Items]
Total net gains (losses)	(8)	(4)	(22)	(26)
Other
Derivative Instruments, Gain (Loss) [Line Items]
Total net gains (losses)	0	20	(9)	53
Corporate services income
Derivative Instruments, Gain (Loss) [Line Items]
Total net gains (losses)	25	23	70	59
Corporate services income | Interest rate
Derivative Instruments, Gain (Loss) [Line Items]
Total net gains (losses)	8	5	19	23
Corporate services income | Foreign exchange
Derivative Instruments, Gain (Loss) [Line Items]
Total net gains (losses)	12	9	34	29
Corporate services income | Commodity
Derivative Instruments, Gain (Loss) [Line Items]
Total net gains (losses)	4	5	12	13
Corporate services income | Credit
Derivative Instruments, Gain (Loss) [Line Items]
Total net gains (losses)	1	4	5	(6)
Corporate services income | Other
Derivative Instruments, Gain (Loss) [Line Items]
Total net gains (losses)	0	0	0	0
Consumer mortgage income
Derivative Instruments, Gain (Loss) [Line Items]
Total net gains (losses)	0	28	13	36
Consumer mortgage income | Interest rate
Derivative Instruments, Gain (Loss) [Line Items]
Total net gains (losses)	0	0	0	0
Consumer mortgage income | Foreign exchange
Derivative Instruments, Gain (Loss) [Line Items]
Total net gains (losses)	0	0	0	0
Consumer mortgage income | Commodity
Derivative Instruments, Gain (Loss) [Line Items]
Total net gains (losses)	0	0	0	0
Consumer mortgage income | Credit
Derivative Instruments, Gain (Loss) [Line Items]
Total net gains (losses)	0	0	0	0
Consumer mortgage income | Other
Derivative Instruments, Gain (Loss) [Line Items]
Total net gains (losses)	0	28	13	36
Other income
Derivative Instruments, Gain (Loss) [Line Items]
Total net gains (losses)	(9)	(17)	(48)	(13)
Other income | Interest rate
Derivative Instruments, Gain (Loss) [Line Items]
Total net gains (losses)	0	(1)	1	(10)
Other income | Foreign exchange
Derivative Instruments, Gain (Loss) [Line Items]
Total net gains (losses)	0	0	0	0
Other income | Commodity
Derivative Instruments, Gain (Loss) [Line Items]
Total net gains (losses)	0	0	0	0
Other income | Credit
Derivative Instruments, Gain (Loss) [Line Items]
Total net gains (losses)	(9)	(8)	(27)	(20)
Other income | Other
Derivative Instruments, Gain (Loss) [Line Items]
Total net gains (losses)	$ 0	$ (8)	$ (22)	$ 17

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Derivatives and Hedging Activities - Fair Value of Derivative Assets by Type (Details) - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020
Credit Derivatives [Line Items]
Derivative assets before collateral	$ 2,504	$ 1,735
Plus(Less): Related collateral	49	63
Total derivative assets	2,553	1,798
Interest rate
Credit Derivatives [Line Items]
Derivative assets before collateral	838	1,448
Foreign exchange
Credit Derivatives [Line Items]
Derivative assets before collateral	38	52
Commodity
Credit Derivatives [Line Items]
Derivative assets before collateral	1,606	178
Credit
Credit Derivatives [Line Items]
Derivative assets before collateral	0	(1)
Other
Credit Derivatives [Line Items]
Derivative assets before collateral	$ 22	$ 58

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Derivatives and Hedging Activities - Credit Derivatives Sold and Held (Details) - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2021	Dec. 31, 2020
Credit Derivatives [Line Items]
Notional Amount	$ 146	$ 227
Payment / Performance Risk	0.00%	0.00%
Other
Credit Derivatives [Line Items]
Notional Amount	$ 146	$ 227
Average Term (Years)	13 years 14 days	12 years 9 months 3 days
Payment / Performance Risk	17.88%	19.53%

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Derivatives and Hedging Activities - Credit Risk Contingent Feature (Details) - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020
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	$ 1
Standard & Poor's, A- Rating | Two rating downgrades
Credit Derivatives [Line Items]
Additional collateral aggregate fair value	3	1
Standard & Poor's, A- Rating | Three rating downgrades
Credit Derivatives [Line Items]
Additional collateral aggregate fair value	3	1
Moody's, A3 Rating | One rating downgrade
Credit Derivatives [Line Items]
Additional collateral aggregate fair value	2	1
Moody's, A3 Rating | Two rating downgrades
Credit Derivatives [Line Items]
Additional collateral aggregate fair value	3	1
Moody's, A3 Rating | Three rating downgrades
Credit Derivatives [Line Items]
Additional collateral aggregate fair value	$ 3	$ 1

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Mortgage Servicing Assets - Changes in Carrying Amount of Mortgage Servicing Assets (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Commercial Mortgage Backed Securities
Servicing Asset at Amortized Cost, Balance [Roll Forward]
Balance at beginning of period	$ 600	$ 565	$ 578	$ 539
Servicing retained from loan sales	31	30	88	107
Purchases	8	6	22	24
Amortization	(30)	(29)	(89)	(88)
Temporary (impairments) recoveries	0	(6)	10	(16)
Balance at end of period	609	566	609	566
Fair value at end of period	735	685	735	685
Agency residential mortgage-backed securities
Servicing Asset at Amortized Cost, Balance [Roll Forward]
Balance at beginning of period	77	46	58	46
Servicing retained from loan sales	9	12	32	25
Purchases	0	0	0	0
Amortization	(4)	(4)	(14)	(9)
Temporary (impairments) recoveries	3	(1)	9	(9)
Balance at end of period	85	53	85	53
Fair value at end of period	$ 89	$ 54	$ 89	$ 54

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Mortgage Servicing Assets - Schedule of Range and Weighted-Average of Significant Unobservable Inputs (Details) - Discounted cash flow - USD ($)	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Commercial Mortgage Backed Securities | Minimum
Servicing Assets at Fair Value [Line Items]
Expected defaults	1.00%	1.00%
Discount rate	7.64%	7.72%
Escrow earn rate	1.04%	0.92%
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	10.49%	10.66%
Escrow earn rate	1.37%	1.16%
Loan assumption rate	1.71%	1.78%
Commercial Mortgage Backed Securities | Weighted Average
Servicing Assets at Fair Value [Line Items]
Expected defaults	1.15%	1.17%
Discount rate	9.31%	9.30%
Escrow earn rate	1.04%	1.05%
Loan assumption rate	1.40%	1.39%
Agency residential mortgage-backed securities | Minimum
Servicing Assets at Fair Value [Line Items]
Discount rate	7.50%	7.51%
Servicing cost	$ 62.00	$ 62.00
Prepayment speed	8.03%	12.35%
Agency residential mortgage-backed securities | Maximum
Servicing Assets at Fair Value [Line Items]
Discount rate	8.57%	8.80%
Servicing cost	$ 4,375	$ 5,125
Prepayment speed	48.88%	53.36%
Agency residential mortgage-backed securities | Weighted Average
Servicing Assets at Fair Value [Line Items]
Discount rate	7.54%	7.57%
Servicing cost	$ 68.15	$ 81.67
Prepayment speed	11.67%	16.89%

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Mortgage Servicing Assets - Additional Information (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Commercial Mortgage Backed Securities
Servicing Assets at Fair Value [Line Items]
Contractual fee income from servicing commercial mortgage loans	$ 193	$ 154
Amortization of servicing commercial mortgage loans	89	88
Residential mortgage-backed securities
Servicing Assets at Fair Value [Line Items]
Contractual fee income from servicing commercial mortgage loans	30	24
Amortization of servicing commercial mortgage loans	$ 14	$ 9

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Leases - Components of Equipment Leasing Income (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Sales-type and direct financing leases
Interest income on lease receivable	$ 13	$ 36	$ 59	$ 91
Interest income related to accretion of unguaranteed residual asset	9	(7)	12	(1)
Total sales-type and direct financing lease income	22	29	71	90
Operating leases
Operating lease income related to lease payments	31	34	95	103
Other operating leasing gains	6	4	16	25
Total operating lease income and other leasing gains	36	38	111	128
Total lease income	$ 58	$ 67	$ 182	$ 218

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Goodwill (Details) $ in Millions	9 Months Ended
	Sep. 30, 2021 USD ($)
Goodwill [Roll Forward]
Beginning balance	$ 2,664
AQN Strategies acquisition	9
Ending balance	2,673
Consumer Bank
Goodwill [Roll Forward]
Beginning balance	1,752
AQN Strategies acquisition	9
Ending balance	1,761
Commercial Bank
Goodwill [Roll Forward]
Beginning balance	912
AQN Strategies acquisition	0
Ending balance	$ 912

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Variable Interest Entities - Additional Information (Details) - USD ($)	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Variable Interest Entity [Line Items]
VIE, assets that can only be used to settle obligations	$ 187,035,000,000		$ 170,336,000,000
VIE, liabilities	169,525,000,000		152,355,000,000
Recurring
Variable Interest Entity [Line Items]
Other investments	80,000,000		81,000,000
Variable Interest Entity, Not Primary Beneficiary
Variable Interest Entity [Line Items]
VIE, assets that can only be used to settle obligations	3,166,000,000		351,000,000
VIE, liabilities	1,000,000		1,000,000
Tax credit of investment		$ 135,000,000
Variable Interest Entity, Not Primary Beneficiary | Qualified affordable housing projects investment
Variable Interest Entity [Line Items]
VIE, liabilities	608,000,000		484,000,000
Variable Interest Entity, Not Primary Beneficiary | Other Unconsolidated Variable Interest Entities
Variable Interest Entity [Line Items]
Other investments	2,800,000,000
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	1,500,000,000		1,400,000,000
Variable Interest Entity, Not Primary Beneficiary | Investments
Variable Interest Entity [Line Items]
Amortization of investment	147,000,000	$ 137,000,000
Tax credit of investment	139,000,000
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	$ 48,000,000		$ 53,000,000

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Variable Interest Entities - Summary of Variable Interest Entities Information (Details) - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020
Variable Interest Entity [Line Items]
Total Assets	$ 187,035	$ 170,336
Total Liabilities	169,525	152,355
Variable Interest Entity, Not Primary Beneficiary
Variable Interest Entity [Line Items]
Total Assets	3,166	351
Total Liabilities	1	1
Variable Interest Entity, Not Primary Beneficiary | LIHTC investments
Variable Interest Entity [Line Items]
Total Assets	7,389	6,914
Total Liabilities	2,861	2,765
Maximum Exposure to Loss	1,882	1,823
Variable Interest Entity, Not Primary Beneficiary | Principal Investments, Indirect
Variable Interest Entity [Line Items]
Total Assets	10,199	10,899
Total Liabilities	189	168
Maximum Exposure to Loss	$ 61	$ 78

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Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Dec. 31, 2020
Income Tax Contingency [Line Items]
Total income tax expense (benefit), rate	20.40%	12.50%
Combined federal and state statutory tax rate			23.70%
Valuation allowance	$ 12		$ 12	$ 0
Accrued Income And Other Assets
Income Tax Contingency [Line Items]
Net deferred tax assets	41		41
Accrued Liabilities and Other Liabilities
Income Tax Contingency [Line Items]
Net deferred tax liability				$ 100
Key Corp
Income Tax Contingency [Line Items]
Unrecognized tax benefits	55		55
First Niagara Bank, N.A.
Income Tax Contingency [Line Items]
Allocated bad debt deductions	$ 92		$ 92

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Acquisitions and Discontinued Operations (Details) - USD ($) $ in Millions		9 Months Ended
	Feb. 25, 2021	Sep. 30, 2021	Dec. 31, 2020
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
AQN Strategies acquisition		$ 9
Discontinued Operations | Government Guaranteed Loans
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Loans included in divestiture		$ 602	$ 710
Arbitria Quum Notitia, LLC
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
AQN Strategies acquisition	$ 9

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Securities Financing Activities (Details) - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020
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	0
Securities borrowed	(500)	(500)
Total	(500)	(500)
Repurchase agreements	(218)	(214)
Total	(218)	(214)
Federal Agency CMOs
Securities Financing Transaction [Line Items]
Assets pledged as collateral	283
Liabilities pledged as collateral	218
Gross Amount Presented in Balance Sheet
Securities Financing Transaction [Line Items]
Reverse repurchase agreements	11	6
Securities borrowed	500	500
Total	511	506
Repurchase agreements	229	220
Total	229	220
Netting Adjustments
Securities Financing Transaction [Line Items]
Reverse repurchase agreements	(11)	(6)
Securities borrowed	0	0
Total	(11)	(6)
Repurchase agreements	(11)	(6)
Total	$ (11)	$ (6)

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Employee Benefits - Net Pension Cost (Benefit) for All Funded and Unfunded Plans (Details) - Pension Plans - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Defined Benefit Plan Disclosure [Line Items]
Interest cost on PBO	$ 6	$ 9	$ 18	$ 26
Expected return on plan assets	(7)	(10)	(21)	(29)
Amortization of losses	5	5	14	13
Settlement loss	7	0	7	8
Net pension cost	$ 11	$ 4	$ 18	$ 18

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Trust Preferred Securities Issued by Unconsolidated Subsidiaries (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2021	Dec. 31, 2020
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Common Stock	$ 1,257	$ 1,257
Debentures adjustments related to financial instrument hedging	56	70
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	0.885%
KeyCorp Capital II
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Trust Preferred Securities, Net of Discount	$ 101
Common Stock	4
Principal Amount of of Debentures, Net of Discount	$ 105
Interest Rate of Trust Preferred Securities and Debentures	6.875%
KeyCorp Capital III
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Trust Preferred Securities, Net of Discount	$ 140
Common Stock	4
Principal Amount of of Debentures, Net of Discount	$ 144
Interest Rate of Trust Preferred Securities and Debentures	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	1.531%
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	1.409%
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	1.426%
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	2.312%
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	2.312%
Business Trusts
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Trust Preferred Securities, Net of Discount	$ 470	483
Common Stock	17	17
Principal Amount of of Debentures, Net of Discount	$ 486	$ 500
Interest Rate of Trust Preferred Securities and Debentures	4.343%	4.464%
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%

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Contingent Liabilities and Guarantees - Guarantees (Details) $ in Millions	Sep. 30, 2021 USD ($)
Guarantor Obligations [Line Items]
Maximum Potential Undiscounted Future Payments	$ 16,542
Liability Recorded	179
Written put options
Guarantor Obligations [Line Items]
Maximum Potential Undiscounted Future Payments	3,835
Liability Recorded	57
Standby letters of credit
Guarantor Obligations [Line Items]
Maximum Potential Undiscounted Future Payments	3,463
Liability Recorded	83
Recourse agreement with FNMA
Guarantor Obligations [Line Items]
Maximum Potential Undiscounted Future Payments	6,272
Liability Recorded	25
Residential mortgage reserve
Guarantor Obligations [Line Items]
Maximum Potential Undiscounted Future Payments	2,972
Liability Recorded	$ 14

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Contingent Liabilities and Guarantees - Additional Information (Details) $ in Millions	9 Months Ended
	Sep. 30, 2021 USD ($)
Written put options
Commitments Contingencies And Guarantees [Line Items]
Weighted average life of written put options	2 years 1 month 6 days
Standby letters of credit
Commitments Contingencies And Guarantees [Line Items]
Remaining weighted-average life of standby letters of credit in years	1 year 8 months 12 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	$ 20,600
Maximum potential amount of undiscounted future payments possibly required as percentage of principal balance of loans outstanding	30.50%
Residential mortgage reserve
Commitments Contingencies And Guarantees [Line Items]
Unpaid principal balance outstanding of loans sold	$ 9,700
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	$ 14
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	13 years 2 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%

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Accumulated Other Comprehensive Income - Changes in AOCI (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	$ 17,941	$ 17,542	$ 17,981	$ 17,038
Other comprehensive income before reclassification, net of income taxes	(145)	2	(608)	996
Amounts reclassified from AOCI, net of income taxes	(50)	(71)	(175)	(155)
Total other comprehensive income (loss), net of tax	(195)	(69)	(783)	841
Ending balance	17,510	17,722	17,510	17,722
Unrealized gains (losses) on securities available for sale
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	124	650	567	115
Other comprehensive income before reclassification, net of income taxes	(174)	(8)	(617)	530
Amounts reclassified from AOCI, net of income taxes	0	0	0	(3)
Total other comprehensive income (loss), net of tax	(174)	(8)	(617)	527
Ending balance	(50)	642	(50)	642
Unrealized gains (losses) on derivative financial instruments
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	325	613	476	250
Other comprehensive income before reclassification, net of income taxes	30	11	11	467
Amounts reclassified from AOCI, net of income taxes	(59)	(75)	(191)	(168)
Total other comprehensive income (loss), net of tax	(29)	(64)	(180)	299
Ending balance	296	549	296	549
Net pension and postretirement benefit costs
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(299)	(327)	(305)	(339)
Other comprehensive income before reclassification, net of income taxes	(1)	(1)	(2)	(1)
Amounts reclassified from AOCI, net of income taxes	9	4	16	16
Total other comprehensive income (loss), net of tax	8	3	14	15
Ending balance	(291)	(324)	(291)	(324)
Accumulated Other Comprehensive Income (Loss)
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	150	936	738	26
Total other comprehensive income (loss), net of tax	(195)	(69)	(783)	841
Ending balance	$ (45)	$ 867	$ (45)	$ 867

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Accumulated Other Comprehensive Income - Reclassifications Out of AOCI (Details) - USD ($) $ in Millions		3 Months Ended		9 Months Ended
		Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Interest income — Loans		$ 882	$ 927	$ 2,659	$ 2,933
Other income	[1]	25	28	89	(27)
Income taxes		165	60	501	113
Interest expense — Long-term debt		(54)	(64)	(168)	(225)
Investment banking and debt placement fees		235	146	614	418
Other expense		640	588	1,887	1,675
INCOME (LOSS) FROM CONTINUING OPERATIONS		643	424	1,985	754
Reclassification out of Accumulated Other Comprehensive Income | Realized gains on available for sale securities
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Other income				0	4
Reclassification out of Accumulated Other Comprehensive Income | Unrealized gains (losses) on securities available for sale
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Income (loss) from continuing operations before income taxes				0	4
Income taxes				0	1
INCOME (LOSS) FROM CONTINUING OPERATIONS				0	3
Reclassification out of Accumulated Other Comprehensive Income | Unrealized gains (losses) on derivative financial instruments
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Income (loss) from continuing operations before income taxes		77	99	250	221
Income taxes		18	24	59	53
Investment banking and debt placement fees		(1)	0	0	0
INCOME (LOSS) FROM CONTINUING OPERATIONS		59	75	191	168
Reclassification out of Accumulated Other Comprehensive Income | Amortization of losses
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Other expense		(5)	(5)	(14)	(13)
Reclassification out of Accumulated Other Comprehensive Income | Settlement loss
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Other expense		(7)	0	(7)	(8)
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		(12)	(5)	(21)	(21)
Income taxes		(3)	(1)	(5)	(5)
INCOME (LOSS) FROM CONTINUING OPERATIONS		(9)	(4)	(16)	(16)
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		79	100	253	224
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)	$ (3)	$ (3)

[1] For the three and nine months ended September 30, 2021, net securities gains (losses) totaled less than $1 million. For the three months ended September 30, 2021 and September 30, 2020, we did not have any impairment losses related to securities. For the three months ended September 30, 2020, we had no net securities gains (losses). For the nine months ended September 30, 2020, net securities gains (losses) totaled $4 million.

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Shareholders' Equity - Comprehensive Capital Plan (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions		3 Months Ended			9 Months Ended
	Sep. 10, 2021	Sep. 30, 2021	Jun. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Common stock repurchased during period		$ 125		$ 0	$ 559	$ 117
Initial shares received under accelerated share repurchase program (in shares)	23.6
Cash payment	$ 585
Accelerated share repurchase program, current market price (in dollars per share)	$ 19.87
Cash dividends declared on Common Shares (in usd per share)		$ 0.185		$ 0.185	$ 0.555	$ 0.555
2021 Capital Plan
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Common stock repurchased during period			$ 593
Reduction to capital surplus for accelerated repurchase program		$ (117)
Cash dividends declared on Common Shares (in usd per share)		$ 0.185
Initial Settlement of Accelerated Share Repurchase Program
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Common stock repurchased during period			468
Open Market Purchases
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Common stock repurchased during period			125
Employee Equity Compensation Programs | Maximum
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Common stock repurchased during period			$ 1

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Shareholders' Equity - Schedule of Preferred Stock (Details)	Sep. 30, 2021 USD ($) $ / shares shares
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

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Business Segment Reporting - Additional Information (Details)	Sep. 30, 2021 branch sector
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

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Business Segment Reporting - Schedule of Segment Reporting Information (Details) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021 USD ($) employee	Sep. 30, 2020 USD ($) employee	Sep. 30, 2021 USD ($) employee	Sep. 30, 2020 USD ($) employee
SUMMARY OF OPERATIONS
Net interest income (TE)	$ 1,025	$ 1,006	$ 3,060	$ 3,020
Noninterest income	797	681	2,285	1,850
Total revenue (TE)	1,822	1,687	5,345	4,870
Provision for credit losses	(107)	160	(422)	1,001
Depreciation and amortization expense	87	89	267	272
Other noninterest expense	1,025	948	2,992	2,709
Income (loss) from continuing operations before income taxes (TE)	817	490	2,508	888
Allocated income taxes and TE adjustments	174	66	523	134
INCOME (LOSS) FROM CONTINUING OPERATIONS	643	424	1,985	754
Income (loss) from discontinued operations, net of taxes	2	4	11	7
NET INCOME (LOSS)	645	428	1,996	761
Less: Net income (loss) attributable to noncontrolling interests	0	0	0	0
NET INCOME (LOSS) ATTRIBUTABLE TO KEY	645	428	1,996	761
AVERAGE BALANCES
Loans and leases	100,138	104,919	100,562	103,018
Total assets	181,371	168,811	177,194	159,746
Deposits	146,916	134,944	143,023	124,455
OTHER FINANCIAL DATA
Net loan charge-offs	$ 29	$ 128	$ 165	$ 308
Return on average allocated equity, continuing operations (as a percent)	14.25%	9.51%	14.87%	5.74%
Return on average allocated equity (as a percent)	14.30%	9.60%	14.96%	5.79%
Average full-time equivalent employees | employee	17,009	17,097	17,034	16,758
Operating Segments | Consumer Bank
SUMMARY OF OPERATIONS
Net interest income (TE)	$ 582	$ 598	$ 1,788	$ 1,765
Noninterest income	288	266	798	740
Total revenue (TE)	870	864	2,586	2,505
Provision for credit losses	(38)	(3)	(132)	289
Depreciation and amortization expense	31	19	71	59
Other noninterest expense	560	548	1,706	1,597
Income (loss) from continuing operations before income taxes (TE)	317	300	941	560
Allocated income taxes and TE adjustments	76	71	226	133
INCOME (LOSS) FROM CONTINUING OPERATIONS	241	229	715	427
Income (loss) from discontinued operations, net of taxes	0	0	0	0
NET INCOME (LOSS)	241	229	715	427
Less: Net income (loss) attributable to noncontrolling interests	0	0	0	0
NET INCOME (LOSS) ATTRIBUTABLE TO KEY	241	229	715	427
AVERAGE BALANCES
Loans and leases	39,796	38,354	39,883	36,319
Total assets	42,981	43,304	43,094	40,644
Deposits	89,156	82,829	87,549	78,414
OTHER FINANCIAL DATA
Net loan charge-offs	$ 35	$ 23	$ 105	$ 106
Return on average allocated equity, continuing operations (as a percent)	25.81%	26.21%	26.70%	16.66%
Return on average allocated equity (as a percent)	25.81%	26.21%	26.70%	16.66%
Average full-time equivalent employees | employee	7,976	8,323	8,062	8,171
Operating Segments | Commercial Bank
SUMMARY OF OPERATIONS
Net interest income (TE)	$ 414	$ 427	$ 1,244	$ 1,305
Noninterest income	477	384	1,377	1,023
Total revenue (TE)	891	811	2,621	2,328
Provision for credit losses	(69)	150	(267)	697
Depreciation and amortization expense	34	35	101	108
Other noninterest expense	436	412	1,263	1,144
Income (loss) from continuing operations before income taxes (TE)	490	214	1,524	379
Allocated income taxes and TE adjustments	106	41	324	38
INCOME (LOSS) FROM CONTINUING OPERATIONS	384	173	1,200	341
Income (loss) from discontinued operations, net of taxes	0	0	0	0
NET INCOME (LOSS)	384	173	1,200	341
Less: Net income (loss) attributable to noncontrolling interests	0	0	0	0
NET INCOME (LOSS) ATTRIBUTABLE TO KEY	384	173	1,200	341
AVERAGE BALANCES
Loans and leases	59,914	66,378	60,358	66,374
Total assets	69,285	74,530	69,607	75,205
Deposits	56,546	51,585	54,660	45,350
OTHER FINANCIAL DATA
Net loan charge-offs	$ (6)	$ 103	$ 81	$ 200
Return on average allocated equity, continuing operations (as a percent)	18.68%	13.35%	18.92%	9.19%
Return on average allocated equity (as a percent)	18.68%	13.35%	18.92%	9.19%
Average full-time equivalent employees | employee	2,371	2,312	2,371	2,288
Other
SUMMARY OF OPERATIONS
Net interest income (TE)	$ 29	$ (19)	$ 28	$ (50)
Noninterest income	32	31	110	87
Total revenue (TE)	61	12	138	37
Provision for credit losses	0	13	(23)	15
Depreciation and amortization expense	22	35	95	105
Other noninterest expense	29	(12)	23	(32)
Income (loss) from continuing operations before income taxes (TE)	10	(24)	43	(51)
Allocated income taxes and TE adjustments	(8)	(46)	(27)	(37)
INCOME (LOSS) FROM CONTINUING OPERATIONS	18	22	70	(14)
Income (loss) from discontinued operations, net of taxes	2	4	11	7
NET INCOME (LOSS)	20	26	81	(7)
Less: Net income (loss) attributable to noncontrolling interests	0	0	0	0
NET INCOME (LOSS) ATTRIBUTABLE TO KEY	20	26	81	(7)
AVERAGE BALANCES
Loans and leases	428	187	321	325
Total assets	69,105	50,977	64,493	43,897
Deposits	1,214	530	814	691
OTHER FINANCIAL DATA
Net loan charge-offs	$ 0	$ 2	$ (21)	$ 2
Return on average allocated equity, continuing operations (as a percent)	1.18%	0.96%	1.62%	(0.20%)
Return on average allocated equity (as a percent)	1.31%	1.14%	1.87%	(0.10%)
Average full-time equivalent employees | employee	6,662	6,462	6,601	6,299

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Revenue from Contracts with Customers (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	$ 490	$ 376	$ 1,303	$ 1,005
Noninterest income	797	681	2,285	1,850
Contract assets	0	0	0	0
Contract liabilities	0	0	0	0
Trust and investment services income
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	121	115	360	328
Investment banking and debt placement fees
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	169	69	367	176
Services charges on deposit accounts
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	91	77	247	229
Cards and payments income
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	107	112	322	265
Other noninterest income
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	2	3	7	7
Noninterest income	275	274	872	758
Operating Segments | Consumer Bank
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	209	191	596	542
Operating Segments | Consumer Bank | Trust and investment services income
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	105	100	311	279
Operating Segments | Consumer Bank | Investment banking and debt placement fees
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	0	0	0	0
Operating Segments | Consumer Bank | Services charges on deposit accounts
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	56	45	145	138
Operating Segments | Consumer Bank | Cards and payments income
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	46	43	135	118
Operating Segments | Consumer Bank | Other noninterest income
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	2	3	5	7
Operating Segments | Commercial Bank
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	281	185	707	463
Operating Segments | Commercial Bank | Trust and investment services income
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	16	15	49	49
Operating Segments | Commercial Bank | Investment banking and debt placement fees
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	169	69	367	176
Operating Segments | Commercial Bank | Services charges on deposit accounts
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	35	32	102	91
Operating Segments | Commercial Bank | Cards and payments income
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	61	69	187	147
Operating Segments | Commercial Bank | Other noninterest income
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	0	0	2	0
Other
Disaggregation of Revenue [Line Items]
Noninterest income	$ 32	$ 31	$ 110	$ 87

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Label	Element	Value
Accounting Standards Update [Extensible Enumeration]	us-gaap_AccountingStandardsUpdateExtensibleList	Accounting Standards Update 2016-13 [Member]
Commercial Bank [Member]
Goodwill	us-gaap_Goodwill	$ 912,000,000
Consumer Bank [Member]
Goodwill	us-gaap_Goodwill	$ 1,752,000,000