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.