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Business Segment Reporting
 9 Months Ended
Sep. 30, 2022
Segment Reporting [Abstract]  
Business Segment Reporting
20. Business Segment Reporting

The following is description of the segments and their primary businesses at September 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 nine-month periods ended September 30, 2022, and September 30, 2021. Capital is assigned to each business segment based on a combination of regulatory and economic equity.
Three months ended September 30,Consumer BankCommercial BankOtherTotal Key
Dollars in millions20222021202220212022202120222021
SUMMARY OF OPERATIONS
Net interest income (TE)$632 $582 $495 $407 $76 $36 $1,203 $1,025 
Noninterest income259 288 394 477 30 32 683 797 
Total revenue (TE) (a)
891 870 889 884 106 68 1,886 1,822 
Provision for credit losses37 (38)74 (69)(2)— 109 (107)
Depreciation and amortization expense22 23 28 34 18 18 68 75 
Other noninterest expense645 568 422 436 (29)33 1,038 1,037 
Income (loss) from continuing operations before income taxes (TE)
187 317 365 483 119 17 671 817 
Allocated income taxes and TE adjustments
45 76 70 104 16 (6)131 174 
Income (loss) from continuing operations142 241 295 379 103 23 540 643 
Income (loss) from discontinued operations, net of taxes
— — — — 2 2 2 2 
Net income (loss)142 241 295 379 105 25 542 645 
Less: Net income (loss) attributable to noncontrolling interests
— — — — — — — — 
Net income (loss) attributable to Key$142 $241 $295 $379 $105 $25 $542 $645 
AVERAGE BALANCES (b)
Loans and leases$42,568 $39,854 $71,464 $59,856 $386 $428 $114,418 $100,138 
Total assets (a)
45,638 43,039 81,898 69,227 60,656 69,105 188,192 181,371 
Deposits90,044 89,278 52,272 56,401 1,913 1,237 144,229 146,916 
OTHER FINANCIAL DATA
Net loan charge-offs (b)
$17 $35 $27 $(6)$(1)$— $43 $29 
Return on average allocated equity (b)
16.20 %25.81 %12.63 %18.02 %21.83 %1.56 %14.66 %14.25 %
Return on average allocated equity16.20 25.81 12.63 18.02 22.25 1.70 14.71 14.30 
Average full-time equivalent employees (c)
8,114 7,976 2,523 2,371 7,270 6,662 17,907 17,009 
(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 BankCommercial BankOtherTotal Key
Dollars in millions20222021202220212022202120222021
SUMMARY OF OPERATIONS
Net interest income (TE)$1,745 $1,789 $1,347 $1,234 $235 $37 $3,327 $3,060 
Noninterest income769 798 1,192 1,379 86 108 2,047 2,285 
Total revenue (TE) (a)
2,514 2,587 2,539 2,613 321 145 5,374 5,345 
Provision for credit losses88 (132)152 (267)(3)(23)237 (422)
Depreciation and amortization expense65 61 89 101 53 64 207 226 
Other noninterest expense1,941 1,717 1,184 1,263 (78)53 3,047 3,033 
Income (loss) from continuing operations before income taxes (TE)
420 941 1,114 1,516 349 51 1,883 2,508 
Allocated income taxes and TE adjustments
101 226 218 322 47 (25)366 523 
Income (loss) from continuing operations319 715 896 1,194 302 76 1,517 1,985 
Income (loss) from discontinued operations, net of taxes
— — — — 6 11 6 11 
Net income (loss)319 715 896 1,194 308 87 1,523 1,996 
Less: Net income (loss) attributable to noncontrolling interests
— — — — — — — — 
Net income (loss) attributable to Key$319 $715 $896 $1,194 $308 (d)$87 $1,523 $1,996 
AVERAGE BALANCES (b)
Loans and leases$40,697 $39,954 $68,016 $60,287 $431 $321 $109,144 $100,562 
Total assets (a)
43,782 43,165 78,536 69,536 62,471 64,493 184,789 177,194 
Deposits90,939 87,667 54,768 54,309 1,559 1,047 147,266 143,023 
OTHER FINANCIAL DATA
Net loan charge-offs (b)
$62 $105 $59 $81 (1)(21)$120 $165 
Return on average allocated equity (b)
11.90 %26.70 %13.37 %18.65 %14.88 %1.78 %13.29 %14.87 %
Return on average allocated equity11.90 26.70 13.37 18.65 15.17 2.04 13.35 14.96 
Average full-time equivalent employees (c)
8,013 8,062 2,441 2,371 7,023 6,601 17,477 17,034 
(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.