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Business Segment Reporting
 6 Months Ended
Jun. 30, 2022
Segment Reporting [Abstract]  
Business Segment Reporting
20. Business Segment Reporting

The following is description of the segments and their primary businesses at June 30, 2022.

Consumer Bank

The Consumer Bank serves individuals and small businesses throughout our 15-state branch footprint as well as healthcare professionals nationally through our Laurel Road digital brand by offering a variety of deposit and investment products, personal finance and financial wellness services, lending, student loan refinancing, mortgage and home equity, credit card, treasury services, and business advisory services. In addition, wealth management and investment services are offered to assist non-profit and high-net-worth clients with their banking, trust, portfolio management, life insurance, charitable giving, and related needs.

Commercial Bank

The Commercial Bank consists of the Commercial and Institutional operating segments. The Commercial operating segment is a full-service, commercial banking platform that focuses primarily on serving the borrowing, cash management, and capital markets needs of middle market clients within Key’s 15-state branch footprint. It is also a significant, national, commercial real estate lender and third-party servicer of commercial mortgage loans and special servicer of CMBS. The Institutional operating segment operates nationally in providing lending, equipment financing, and banking products and services to large corporate and institutional clients. The industry coverage and product teams have established expertise in the following sectors: Consumer, Energy, Healthcare, Industrial, Public Sector, Real Estate, and Technology. The operating segment includes the KBCM platform which provides a broad suite of capital markets products and services including syndicated finance, debt and equity capital markets, derivatives, foreign exchange, financial advisory, and public finance. Additionally, KBCM provides fixed income and equity sales and trading services to investor clients.

Other

Other includes various corporate treasury activities such as management of our investment securities portfolio, long-term debt, short-term liquidity and funding activities, and balance sheet risk management, our principal investing unit, and various exit portfolios as well as reconciling items which primarily represents the unallocated
portion of nonearning assets of corporate support functions. Charges related to the funding of these assets are part of net interest income and are allocated to the business segments through noninterest expense. Reconciling items also include intercompany eliminations and certain items that are not allocated to the business segments because they do not reflect their normal operations.

The development and application of the methodologies that we use to allocate items among our business segments is a dynamic process. Accordingly, financial results may be revised periodically to reflect enhanced alignment of expense base allocations drivers, changes in the risk profile of a particular business, or changes in our organizational structure.

The table below shows selected financial data for our business segments for the three- and six-month periods ended June 30, 2022, and June 30, 2021. Capital is assigned to each business segment based on a combination of regulatory and economic equity.
Three months ended June 30,Consumer BankCommercial BankOtherTotal Key
Dollars in millions20222021202220212022202120222021
SUMMARY OF OPERATIONS
Net interest income (TE)$570 $599 $440 $417 $94 $7 $1,104 $1,023 
Noninterest income254 253 404 454 30 43 688 750 
Total revenue (TE) (a)
824 852 844 871 124 50 1,792 1,773 
Provision for credit losses8 (70)37 (131)— (21)45 (222)
Depreciation and amortization expense22 20 30 33 17 23 69 76 
Other noninterest expense654 564 384 418 (29)18 1,009 1,000 
Income (loss) from continuing operations before income taxes (TE)
140 338 393 551 136 30 669 919 
Allocated income taxes and TE adjustments
33 81 78 119 28 (5)139 195 
Income (loss) from continuing operations107 257 315 432 108 35 530 724 
Income (loss) from discontinued operations, net of taxes
— — — — 3 5 3 5 
Net income (loss)107 257 315 432 111 40 533 729 
Less: Net income (loss) attributable to noncontrolling interests
— — — — — — — — 
Net income (loss) attributable to Key$107 $257 $315 $432 $111 $40 $533 $729 
AVERAGE BALANCES (b)
Loans and leases$40,818 $40,598 $67,834 $59,953 $486 $263 $109,138 $100,814 
Total assets (a)
43,868 43,818 78,824 69,101 60,835 64,951 183,527 177,870 
Deposits91,256 88,412 54,864 54,814 1,351 1,096 147,471 144,322 
OTHER FINANCIAL DATA
Net loan charge-offs (b)
$23 $34 $21 $9 $— $(21)$44 $22 
Return on average allocated equity (b)
11.66 %28.53 %14.16 %20.69 %24.11 %2.39 %14.76 %16.26 %
Return on average allocated equity11.66 28.53 14.16 20.69 24.78 2.73 14.85 16.37 
Average full-time equivalent employees (c)
8,024 7,929 2,396 2,483 6,994 6,591 17,414 17,003 
(a)Substantially all revenue generated by our major business segments is derived from clients that reside in the United States. Substantially all long-lived assets, including premises and equipment, capitalized software, and goodwill held by our major business segments, are located in the United States.
(b)From continuing operations.
(c)The number of average full-time equivalent employees was not adjusted for discontinued operations.
Six months ended June 30,Consumer BankCommercial BankOtherTotal Key
Dollars in millions20222021202220212022202120222021
SUMMARY OF OPERATIONS
Net interest income (TE)$1,113 $1,206 $855 $828 $156 $1 $2,124 $2,035 
Noninterest income510 511 799 901 55 76 1,364 1,488 
Total revenue (TE) (a)
1,623 1,717 1,654 1,729 211 77 3,488 3,523 
Provision for credit losses51 (94)78 (198)(1)(23)128 (315)
Depreciation and amortization expense43 37 61 67 35 47 139 151 
Other noninterest expense1,296 1,150 770 827 (57)19 2,009 1,996 
Income (loss) from continuing operations before income taxes (TE)
233 624 745 1,033 234 34 1,212 1,691 
Allocated income taxes and TE adjustments
56 150 147 218 32 (19)235 349 
Income (loss) from continuing operations177 474 598 815 202 53 977 1,342 
Income (loss) from discontinued operations, net of taxes
— — — — 4 9 4 9 
Net income (loss)177 474 598 815 206 62 981 1,351 
Less: Net income (loss) attributable to noncontrolling interests
— — — — — — — — 
Net income (loss) attributable to Key$177 $474 $598 $815 $206 (d)$62 $981 $1,351 
AVERAGE BALANCES (b)
Loans and leases$39,734 $39,927 $66,276 $60,584 $455 $266 $106,465 $100,777 
Total assets (a)
42,847 43,151 76,853 69,771 63,360 62,149 183,060 175,071 
Deposits91,361 86,732 56,070 53,362 1,378 950 148,809 141,044 
OTHER FINANCIAL DATA
Net loan charge-offs (b)
$45 $70 $32 $87 — (21)$77 $136 
Return on average allocated equity (b)
9.81 %27.18 %13.70 %19.01 %12.96 %1.89 %12.64 %15.19 %
Return on average allocated equity9.81 27.18 13.70 19.01 13.22 2.21 12.69 15.29 
Average full-time equivalent employees (c)
7,962 8,106 2,399 2,371 6,901 6,569 17,262 17,046 
(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.