XML 96 R36.htm IDEA: XBRL DOCUMENT v3.22.2.2
Asset Quality (Tables)
 9 Months Ended
Sep. 30, 2022
Credit Loss [Abstract]  
Schedule of 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, 2022:
Dollars in millionsJune 30, 2022ProvisionCharge-offsRecoveriesSeptember 30, 2022
Commercial and Industrial $503 $52 $(49)$13 $519 
Commercial real estate:
Real estate — commercial mortgage156 13 (3)2 168 
Real estate — construction21 1 — — 22 
Total commercial real estate loans177 14 (3)2 190 
Commercial lease financing29 — — 1 30 
Total commercial loans709 66 (52)16 739 
Real estate — residential mortgage122 15 (1)1 137 
Home equity loans95 (3)— 1 93 
Consumer direct loans112 4 (8)4 112 
Credit cards59 7 (7)2 61 
Consumer indirect loans2 (1)— 1 2 
Total consumer loans390 22 (16)9 405 
Total ALLL — continuing operations1,099 88 
(a)
(68)25 1,144 
Discontinued operations24 (2)(1)1 22 
Total ALLL — including discontinued operations$1,123 $86 $(69)$26 $1,166 
(a)Excludes a provision for losses on lending-related commitments of $21 million.

Three months ended September 30, 2021:
Dollars in millionsJune 30, 2021ProvisionCharge-offsRecoveriesSeptember 30, 2021
Commercial and Industrial $499 $(30)$(27)$20 $462 
Commercial real estate:
Real estate — commercial mortgage227 (44)— 1 184 
Real estate — construction35 (8)— — 27 
Total commercial real estate loans262 (52)— 1 211 
Commercial lease financing34 (7)(1)6 32 
Total commercial loans795 (89)(28)27 705 
Real estate — residential mortgage86 (1)2 1 88 
Home equity loans136 (13)(1)2 124 
Consumer direct loans115 (5)(7)2 105 
Credit cards68 (4)(6)1 59 
Consumer indirect loans20 5 (26)4 3 
Total consumer loans425 (18)(38)10 379 
Total ALLL — continuing operations1,220 (107)
(a)
(66)37 1,084 
Discontinued operations30 (1)(1)1 29 
Total ALLL — including discontinued operations$1,250 $(108)$(67)$38 $1,113 
(a)We had no losses on lending-related commitments.
Nine months ended September 30, 2022:
Dollars in millionsDecember 31, 2021ProvisionCharge-offsRecoveriesSeptember 30, 2022
Commercial and Industrial $445 $160 $(118)$32 $519 
Commercial real estate:
Real estate — commercial mortgage182 (8)(10)4 168 
Real estate — construction29 (8)— 1 22 
Total commercial real estate loans211 (16)(10)5 190 
Commercial lease financing32 (2)(2)2 30 
Total commercial loans688 142 (130)39 739 
Real estate — residential mortgage95 38 2 2 137 
Home equity loans110 (19)(1)3 93 
Consumer direct loans105 25 (25)7 112 
Credit cards61 17 (22)5 61 
Consumer indirect loans2 — (2)2 2 
Total consumer loans373 61 (48)19 405 
Total ALLL — continuing operations1,061 203 
(a)
(178)58 1,144 
Discontinued operations28 (4)(4)2 22 
Total ALLL — including discontinued operations$1,089 $199 $(182)$60 $1,166 
(a)Excludes a provision for losses on lending-related commitments of $34 million.

Nine months ended September 30, 2021:
Dollars in millionsDecember 31, 2020ProvisionCharge-offsRecoveriesSeptember 30, 2021
Commercial and Industrial $678 $(135)$(141)$60 $462 
Commercial real estate:
Real estate — commercial mortgage327 (112)(39)8 184 
Real estate — construction47 (20)— — 27 
Total commercial real estate loans374 (132)(39)8 211 
Commercial lease financing47 (17)(5)7 32 
Total commercial loans1,099 (284)(185)75 705 
Real estate — residential mortgage102 (17)1 2 88 
Home equity loans171 (44)(7)4 124 
Consumer direct loans128 (7)(22)6 105 
Credit cards87 (13)(21)6 59 
Consumer indirect loans39 (12)(38)14 3 
Total consumer loans527 (93)(87)32 379 
Total ALLL — continuing operations1,626 (377)
(a)
(272)107 1,084 
Discontinued operations36 (6)(3)2 29 
Total ALLL — including discontinued operations$1,662 $(383)$(275)$109 $1,113 
(a)Excludes a provision for losses on lending-related commitments of $45 million.
Schedule of Significant Macroeconomic Variables of Loan Portfolios The following table discloses key macroeconomic variables for each loan portfolio.
SegmentPortfolio
Key Macroeconomic Variables (a)
CommercialCommercial and industrialBBB corporate bond rate (spread), fixed investment, business bankruptcies, GDP, industrial production, and unemployment rate
Commercial real estate
Property & real estate price indices, unemployment rate, business bankruptcies, GDP
Commercial lease financingBBB corporate bond rate (spread), GDP, and unemployment rate
ConsumerReal estate — residential mortgageGDP, home price index, unemployment rate, and 30 year mortgage rate
Home equityHome price index, unemployment rate, and 30 year mortgage rate
Consumer directUnemployment rate and U.S. household income
Consumer indirectNew vehicle sales, used vehicle prices, and Unemployment rate
Credit cardsUnemployment rate and U.S. household income
Discontinued operationsUnemployment 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.
Schedule of Financing Receivable Credit Quality Indicators
Credit Risk Profile by Creditworthiness Category and Vintage (a)
As of September 30, 2022Term LoansRevolving Loans Amortized Cost BasisRevolving Loans Converted to Term Loans Amortized Cost Basis
Amortized Cost Basis by Origination Year and Internal Risk Rating
Dollars in millions20222021202020192018PriorTotal
Commercial and Industrial
Risk Rating:
Pass$7,572 $9,757 $3,729 $3,267 $1,862 $3,831 $24,796 $132 $54,946 
Criticized (Accruing)11 179 130 114 278 251 865 28 1,856 
Criticized (Nonaccruing)39 2 7 6 8 25 80 2 169 
Total commercial and industrial7,622 9,938 3,866 3,387 2,148 4,107 25,741 162 56,971 
Real estate — commercial mortgage
Risk Rating:
Pass4,162 4,264 1,014 1,912 827 2,695 927 50 15,851 
Criticized (Accruing)— 24 26 85 91 242 46 1 515 
Criticized (Nonaccruing)— — 1 2 2 25 4 — 34 
Total real estate — commercial mortgage
4,162 4,288 1,041 1,999 920 2,962 977 51 16,400 
Real estate — construction
Risk Rating:
Pass475 747 516 365 168 49 1 — 2,321 
Criticized (Accruing)— — 5 5 14 4 — — 28 
Criticized (Nonaccruing)— — — — — — — — — 
Total real estate — construction475 747 521 370 182 53 1 — 2,349 
Commercial lease financing
Risk Rating:
Pass697 869 558 506 199 991 — — 3,820 
Criticized (Accruing)1 1 10 19 13 11 — — 55 
Criticized (Nonaccruing)— — — 1 1 — — — 2 
Total commercial lease financing698 870 568 526 213 1,002 — 3,877 
Total commercial loans$12,957 $15,843 $5,996 $6,282 $3,463 $8,124 $26,719 $213 $79,597 

As of December 31, 2021Term LoansRevolving Loans Amortized Cost BasisRevolving Loans Converted to Term Loans Amortized Cost Basis
Amortized Cost Basis by Origination Year and Internal Risk Rating
Dollars in millions20212020201920182017PriorTotal
Commercial and Industrial
Risk Rating:
Pass$11,675 $4,941 $4,040 $2,771 $1,777 $3,108 $20,406 $72 $48,790 
Criticized (Accruing)64 71 115 175 200 121 784 14 1,544 
Criticized (Nonaccruing)1 1 21 10 19 15 122 2 191 
Total commercial and industrial11,740 5,013 4,176 2,956 1,996 3,244 21,312 88 50,525 
Real estate — commercial mortgage
Risk Rating:
Pass4,923 1,197 2,137 1,168 612 2,787 803 53 13,680 
Criticized (Accruing)15 22 70 62 109 206 35 1 520 
Criticized (Nonaccruing)— 1 1 5 — 31 6 — 44 
Total real estate — commercial mortgage
4,938 1,220 2,208 1,235 721 3,024 844 54 14,244 
Real estate — construction
Risk Rating:
Pass495 565 530 223 92 32 2 — 1,939 
Criticized (Accruing)— 4 5 43 4 — 1 — 57 
Criticized (Nonaccruing)— — — — — — — — — 
Total real estate — construction495 569 535 266 96 32 3 — 1,996 
Commercial lease financing
Risk Rating:
Pass1,039 748 675 301 309 927 — — 3,999 
Criticized (Accruing)— 6 29 13 13 7 — — 68 
Criticized (Nonaccruing)— — 1 1 1 1 — — 4 
Total commercial lease financing1,039 754 705 315 323 935 — — 4,071 
Total commercial loans$18,212 $7,556 $7,624 $4,772 $3,136 $7,235 $22,159 $142 $70,836 
(a)Accrued interest of $197 million and $113 million as of September 30, 2022, and December 31, 2021, 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, 2022Term LoansRevolving Loans Amortized Cost BasisRevolving Loans Converted to Term Loans Amortized Cost Basis
Amortized Cost Basis by Origination Year and FICO Score
Dollars in millions20222021202020192018PriorTotal
Real estate — residential mortgage
FICO Score:
750 and above$4,959 $8,248 $2,624 $643 $63 $1,015 $— $— $17,552 
660 to 7491,256 979 299 115 32 261 — — 2,942 
Less than 66035 38 18 15 15 139 — — 260 
No Score51 1 1 1 1 28 1 — 84 
Total real estate — residential mortgage6,301 9,266 2,942 774 111 1,443 1 — 20,838 
Home equity loans
FICO Score:
750 and above138 879 760 214 76 647 2,303 403 5,420 
660 to 74985 302 204 83 33 196 961 129 1,993 
Less than 6609 31 22 17 10 84 294 38 505 
No Score4 — — — — 2 2 — 8 
Total home equity loans236 1,212 986 314 119 929 3,560 570 7,926 
Consumer direct loans
FICO Score:
750 and above1,229 1,876 860 378 50 106 104 — 4,603 
660 to 749474 461 242 129 29 44 204 — 1,583 
Less than 66044 62 31 23 7 10 55 — 232 
No Score59 39 23 18 12 24 210 — 385 
Total consumer direct loans1,806 2,438 1,156 548 98 184 573 — 6,803 
Credit cards
FICO Score:
750 and above— — — — — — 493 — 493 
660 to 749— — — — — — 391 — 391 
Less than 660— — — — — — 92 — 92 
No Score— — — — — — 1 — 1 
Total credit cards— — — — — — 977 — 977 
Consumer indirect loans
FICO Score:
750 and above— 2 — — — 24 — — 26 
660 to 749— — — — — 17 — — 17 
Less than 660— — — — — 7 — — 7 
No Score— — — — — — — — — 
Total consumer indirect loans— 2 — — — 48 — — 50 
Total consumer loans$8,343 $12,918 $5,084 $1,636 $328 $2,604 $5,111 $570 $36,594 
As of December 31, 2021Term LoansRevolving Loans Amortized Cost BasisRevolving Loans Converted to Term Loans Amortized Cost Basis
Amortized Cost Basis by Origination Year and FICO Score
Dollars in millions20212020201920182017PriorTotal
Real estate — residential mortgage
FICO Score:
750 and above$7,906 $2,909 $777 $84 $126 $1,096 $— $— $12,898 
660 to 7491,686 351 169 39 25 308 — — 2,578 
Less than 66026 14 19 16 9 142 — — 226 
No Score18 — 1 1 3 30 1 — 54 
Total real estate — residential mortgage9,636 3,274 966 140 163 1,576 1 — 15,756 
Home equity loans
FICO Score:
750 and above1,051 830 251 96 128 666 2,244 423 5,689 
660 to 749394 263 111 44 40 204 1,004 143 2,203 
Less than 66027 24 20 13 13 92 333 46 568 
No Score— 2 — — — 2 3 — 7 
Total home equity loans1,472 1,119 382 153 181 964 3,584 612 8,467 
Consumer direct loans
FICO Score:
750 and above1,799 1,129 517 65 17 129 109 — 3,765 
660 to 749612 295 174 46 10 45 212 — 1,394 
Less than 66045 33 27 11 3 12 60 — 191 
No Score68 40 29 17 10 21 218 — 403 
Total consumer direct loans2,524 1,497 747 139 40 207 599 — 5,753 
Credit cards
FICO Score:
750 and above— — — — — — 500 — 500 
660 to 749— — — — — — 387 — 387 
Less than 660— — — — — — 84 — 84 
No Score— — — — — — 1 — 1 
Total credit cards— — — — — — 972 — 972 
Consumer indirect loans
FICO Score:
750 and above5 — — — — 30 — — 35 
660 to 749— — — — — 26 — — 26 
Less than 660— — — — — 9 — — 9 
No Score— — — — — — — — — 
Total consumer indirect loans5 — — — — 65 — — 70 
Total consumer loans$13,637 $5,890 $2,095 $432 $384 $2,812 $5,156 $612 $31,018 
(a)Accrued interest of $77 million and $85 million as of September 30, 2022 and December 31, 2021, respectively, presented in Other Assets on the Consolidated Balance Sheets, was excluded from the amortized cost basis disclosed in this table.
Schedule of Past Due Loans Including Current Loans
The following aging analysis of past due and current loans as of September 30, 2022, and December 31, 2021, provides further information regarding Key’s credit exposure.

Aging Analysis of Loan Portfolio(a)
September 30, 2022Current
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$56,674 $75 $31 $22 $169 $297 $56,971 
Commercial real estate:
Commercial mortgage16,353 4 1 8 34 47 16,400 
Construction2,348 — — 1 — 1 2,349 
Total commercial real estate loans18,701 4 1 9 34 48 18,749 
Commercial lease financing3,857 16 1 1 2 20 3,877 
Total commercial loans$79,232 $95 $33 $32 $205 $365 $79,597 
Real estate — residential mortgage$20,759 $9 $3 $1 $66 $79 $20,838 
Home equity loans7,787 19 4 4 112 139 7,926 
Consumer direct loans6,779 11 6 4 3 24 6,803 
Credit cards961 4 3 6 3 16 977 
Consumer indirect loans49 — — — 1 1 50 
Total consumer loans$36,335 $43 $16 $15 $185 $259 $36,594 
Total loans$115,567 $138 $49 $47 $390 $624 $116,191 
(a)Amounts in table represent amortized cost and exclude loans held for sale.
(b)Accrued interest of $274 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, 2021Current
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$50,226 $19 $49 $40 $191 $299 $50,525 
Commercial real estate:
Commercial mortgage14,174 10 9 7 44 70 14,244 
Construction1,978 — 17 1 — 18 1,996 
Total commercial real estate loans16,152 10 26 8 44 88 16,240 
Commercial lease financing4,061 6 — — 4 10 4,071 
Total commercial loans$70,439 $35 $75 $48 $239 $397 $70,836 
Real estate — residential mortgage$15,669 $7 $3 $5 $72 $87 $15,756 
Home equity loans8,299 21 6 6 135 168 8,467 
Consumer direct loans5,736 8 2 3 4 17 5,753 
Credit cards956 4 3 6 3 16 972 
Consumer indirect loans68 1 — — 1 2 70 
Total consumer loans$30,728 $41 $14 $20 $215 $290 $31,018 
Total loans$101,167 $76 $89 $68 $454 $687 $101,854 

(a)Amounts in table represent amortized cost and exclude loans held for sale.
(b)Accrued interest of $198 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.
Schedule of 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 millions2022202120222021
Commercial loans:
Extension of Maturity Date$40 $— $40 $5 
Payment or Covenant Modification/Deferment— — 1 7 
Bankruptcy Plan Modification— — — — 
Increase in new commitment or new money— — — — 
Total$40 $— $41 $12 
Consumer loans:
Interest rate reduction$5 $3 $10 $6 
Other4 12 17 18 
Total$9 $15 $27 $24 
Total TDRs$49 $15 $68 $36 
Schedule 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 millions2022202120222021
Balance at beginning of the period$216 $334 $220 $363 
Additions48 17 70 98 
Payments(10)(81)(34)(162)
Charge-offs— — (2)(29)
Balance at end of period$254 $270 $254 $270 
Schedule of 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, 2022December 31, 2021
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 industrial37 $64 $52 36 $30 $14 
Commercial real estate:
Commercial mortgage4 50 23 3 50 25 
Total commercial real estate loans4 50 23 3 50 25 
Total commercial loans41 114 75 39 80 39 
Real estate — residential mortgage234 29 26 220 26 24 
Home equity loans478 32 28 531 36 31 
Consumer direct loans180 2 2 207 3 2 
Credit cards343 2 2 360 2 2 
Consumer indirect loans17 2 1 23 1 1 
Total consumer loans1,252 67 59 1,341 68 60 
Total nonperforming TDRs1,293 181 134 1,380 148 99 
Prior-year accruing:(a)
Commercial and industrial17 1 — 11 — — 
Commercial real estate
Commercial mortgage— — — 1 — — 
Total commercial real estate loans— — — 1 — — 
Total commercial loans17 1 — 12 — — 
Real estate — residential mortgage443 41 35 455 39 33 
Home equity loans1,563 97 74 1,628 97 75 
Consumer direct loans257 4 3 236 5 3 
Credit cards595 4 2 579 4 2 
Consumer indirect loans107 12 6 139 15 8 
Total consumer loans2,965 158 120 3,037 160 121 
Total prior-year accruing TDRs2,982 159 120 3,049 160 121 
Total TDRs4,275 $340 $254 4,429 $308 $220 
(a)All TDRs that were restructured prior to January 1, 2022, and January 1, 2021, are fully accruing.
Schedule of 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 millions2022202120222021
Balance at beginning of period$173 $152 160 197 
Provision (credit) for losses on off balance sheet exposures21 — 34 (45)
Balance at end of period$194 $152 $194 $152