Asset Quality (Tables)

3 Months Ended

Mar. 31, 2012

Asset Quality [Abstract]

Nonperforming assets and past due loans

	March 31,		December 31,		March 31,
in millions	2012		2011		2011
Total nonperforming loans	$	666	$	727	$	885
Nonperforming loans held for sale		24		46		86
OREO		61		65		97
Other nonperforming assets		16		21		21
Total nonperforming assets	$	767	$	859	$	1,089
Restructured loans included in nonperforming loans(a)	$	184	$	191	$	136
Restructured loans with an allocated specific allowance (b)		47		50		29
Specifically allocated allowance for restructured loans (c)		18		10		9
Accruing loans past due 90 days or more	$	169	$	164	$	153
Accruing loans past due 30 through 89 days		420		441		474

(a) A loan is “restructured” (i.e., troubled debt restructurings) when the borrower is experiencing financial difficulty and we grant a concession that we would not otherwise have considered to improve the collectability of the loan. Typical concessions include reducing the interest rate, extending the maturity date or reducing the principal balance.

(b) Included in individually impaired loans allocated a specific allowance.

(c) Included in allowance for individually evaluated impaired loans.

Breakdown of individually impaired loans

March 31, 2012	Recorded			Unpaid   Principal			Specific		Average   Recorded
in millions	Investment		(a)	Balance		(b)	Allowance		Investment
With no related allowance recorded:
Commercial, financial and agricultural	$	77		$	189			—	$	83
Commercial real estate:
Commercial mortgage		113			252			—		106
Construction		47			164			—		39
Total commercial real estate loans		160			416			—		145
Total commercial loans with no related allowance recorded		237			605			—		228
With an allowance recorded:
Commercial, financial and agricultural		49			60		$	19		55
Commercial real estate:
Commercial mortgage		69			111			16		83
Construction		4			4			3		8
Total commercial real estate loans		73			115			19		91
Total commercial loans with an allowance recorded		122			175			38		146
Total	$	359		$	780		$	38	$	374

(a) The Recorded Investment in impaired loans represents the face amount of the loan increased or decreased by applicable accrued interest, net deferred loan fees and costs, unamortized premium or discount, and reflects direct charge-offs. This amount is a component of total loans on our consolidated balance sheet.

(b) The Unpaid Principal Balance represents the customer’s legal obligation to us.

December 31, 2011	Recorded			Unpaid   Principal			Specific		Average   Recorded
in millions	Investment		(a)	Balance		(b)	Allowance		Investment
With no related allowance recorded:
Commercial, financial and agricultural	$	88		$	195			—	$	75
Commercial real estate:
Commercial mortgage		100			240			—		131
Construction		30			113			—		98
Total commercial real estate loans		130			353			—		229
Total loans with no related allowance recorded		218			548			—		304
With an allowance recorded:
Commercial, financial and agricultural		62			70		$	26		75
Commercial real estate:
Commercial mortgage		96			115			21		91
Construction		12			18			4		29
Total commercial real estate loans		108			133			25		120
Commercial lease financing		—			—			—		6
Total loans with an allowance recorded		170			203			51		201
Total	$	388		$	751		$	51	$	505

(a) The Recorded Investment in impaired loans represents the face amount of the loan increased or decreased by applicable accrued interest, net deferred loan fees and costs, unamortized premium or discount, and reflects direct charge-offs. This amount is a component of total loans on our consolidated balance sheet.

(b) The Unpaid Principal Balance represents the customer’s legal obligation to us.

March 31, 2011	Recorded			Unpaid   Principal			Specific		Average   Recorded
in millions	Investment		(a)	Balance		(b)	Allowance		Investment
With no related allowance recorded:
Commercial, financial and agricultural	$	84		$	178			—	$	72
Commercial real estate:
Commercial mortgage		156			298			—		159
Construction		121			408			—		144
Total commercial real estate loans		277			706			—		303
Total loans with no related allowance recorded		361			884			—		375
With an allowance recorded:
Commercial, financial and agricultural		63			117		$	25		76
Commercial real estate:
Commercial mortgage		62			115			13		74
Construction		7			11			1		26
Total commercial real estate loans		69			126			14		100
Commercial lease financing		—			—			—		6
Total loans with an allowance recorded		132			243			39		182
Total	$	493		$	1,127		$	39	$	557

(a) The Recorded Investment in impaired loans represents the face amount of the loan increased or decreased by applicable accrued interest, net deferred loan fees and costs, unamortized premium or discount, and reflects direct charge-offs. This amount is a component of total loans on our consolidated balance sheet.

(b) The Unpaid Principal Balance represents the customer’s legal obligation to us.

Breakdown of nonperforming TDRs by loans category

March 31, 2012 dollars in millions	Number of loans		Pre-modification Outstanding Recorded Investment		Post-modification Outstanding Recorded Investment
LOAN TYPE
Nonperforming:
Commercial, financial and agricultural		102	$	105	$	64
Commercial real estate:
Real estate — commercial mortgage		16		102		64
Real estate — construction		8		35		19
Total commercial real estate loans		24		137		83
Total commercial loans		126		242		147
Real estate — residential mortgage		43		5		5
Home equity:
Key Community Bank		27		3		3
Other		32		1		1
Total home equity loans		59		4		4
Consumer other — Key Community Bank		2		—		—
Consumer other:
Marine		48		28		28
Other		6		—		—
Total consumer other		54		28		28
Total consumer loans		158		37		37
Total nonperforming TDRs		284		279		184
Prior-year accruing(a)
Commercial, financial and agricultural		176		20		11
Commercial real estate:
Real estate — commercial mortgage		7		75		57
Real estate — construction		1		15		2
Total commercial real estate loans		8		90		59
Total commercial loans		184		110		70
Real estate — residential mortgage		113		12		12
Home equity:
Key Community Bank		88		7		7
Other		104		3		3
Total home equity loans		192		10		10
Consumer other — Key Community Bank		19		—		—
Consumer other:
Marine		140		15		15
Other		51		2		2
Total consumer other		191		17		17
Total consumer loans		515		39		39
Total prior-year accruing TDRs		699		149		109
Total TDRs		983	$	428	$	293

(a) All TDRs that were restructured prior to January 1, 2012 and are fully accruing.

Concession types for our commercial accruing and nonaccruing TDRs

dollars in millions	March 31,    2012			December 31,    2011			March 31,    2011
Interest rate reduction	$	184		$	177		$	165
Forgiveness of principal		11			23			10
Other modification of loan terms		22			8			7
Total	$	217		$	208		$	182
Total commercial and consumer TDRs(a)	$	293			276		$	242
Total commercial TDRs to total commercial loans		.63	%		.60	%		.55	%
Total commercial TDRs to total loans		.44			.42			.37
Total commercial loans	$	34,622		$	34,782		$	33,298
Total loans		49,226			49,575			48,552

(a) Commitments outstanding to lend additional funds to borrowers whose terms have been modified in TDRs are $24 million, $25 million, and $44 million at March 31, 2012, December 31, 2011 and March 31, 2011, respectively.

Past due loans including current loans

March 31, 2012 in millions	Current		30-59 Days Past Due		60-89 Days Past Due		90 and Greater Days Past Due		Nonperforming Loans		Total Past Due and Nonperforming Loans		Total Loans
LOAN TYPE
Commercial, financial and agricultural	$	19,559	$	25	$	16	$	19	$	168	$	228	$	19,787
Commercial real estate:
Commercial mortgage		7,533		7		11		82		174		274		7,807
Construction		1,170		19		7		11		66		103		1,273
Total commercial real estate loans		8,703		26		18		93		240		377		9,080
Commercial lease financing		5,570		126		22		15		22		185		5,755
Total commercial loans	$	33,832	$	177	$	56	$	127	$	430	$	790	$	34,622
Real estate — residential mortgage	$	1,851	$	20	$	8	$	5	$	83	$	116	$	1,967
Home equity:
Key Community Bank		8,941		53		34		16		109		212		9,153
Other		476		9		6		4		12		31		507
Total home equity loans		9,417		62		40		20		121		243		9,660
Consumer other — Key Community Bank		1,189		9		4		9		1		23		1,212
Consumer other:
Marine		1,576		30		11		7		30		78		1,654
Other		106		2		1		1		1		5		111
Total consumer other		1,682		32		12		8		31		83		1,765
Total consumer loans	$	14,139	$	123	$	64	$	42	$	236	$	465	$	14,604
Total loans	$	47,971	$	300	$	120	$	169	$	666	$	1,255	$	49,226
March 31, 2011 in millions	Current		30-59 Days Past Due		60-89 Days Past Due		90 and Greater Days Past Due		Nonperforming Loans		Total Past Due and Nonperforming Loans		Total Loans
LOAN TYPE
Commercial, financial and agricultural	$	16,138	$	46	$	13	$	22	$	221	$	302	$	16,440
Commercial real estate:
Commercial mortgage		8,459		36		37		29		245		347		8,806
Construction		1,623		40		14		22		146		222		1,845
Total commercial real estate loans		10,082		76		51		51		391		569		10,651
Commercial lease financing		6,054		53		21		37		42		153		6,207
Total commercial loans	$	32,274	$	175	$	85	$	110	$	654	$	1,024	$	33,298
Real estate — residential mortgage	$	1,676	$	22	$	12	$	9	$	84	$	127	$	1,803
Home equity:
Key Community Bank		9,211		60		34		17		99		210		9,421
Other		591		11		7		5		13		36		627
Total home equity loans		9,802		71		41		22		112		246		10,048
Consumer other — Key Community Bank		1,115		10		5		8		3		26		1,141
Consumer other:
Marine		2,030		34		14		3		31		82		2,112
Other		144		3		1		1		1		6		150
Total consumer other		2,174		37		15		4		32		88		2,262
Total consumer loans	$	14,767	$	140	$	73	$	43	$	231	$	487	$	15,254
Total loans	$	47,041	$	315	$	158	$	153	$	885	$	1,511	$	48,552

Financing Receivable Credit Quality Indicators

Commercial Credit Exposure

Credit Risk Profile by Creditworthiness Category ^(a)

March 31,
in millions
	Commercial, financial and     agricultural				RE — Commercial				RE — Construction				Commercial Lease				Total
RATING (b) (c)	2012		2011		2012		2011		2012		2011		2012		2011		2012		2011
AAA — AA	$	165	$	95	$	3	$	2	$	3		—	$	599	$	645	$	770	$	742
A		785		712		62		84		1	$	5		1,156		1,246		2,004		2,047
BBB — BB		16,801		12,646		6,007		6,045		788		801		3,623		3,655		27,219		23,147
B		848		1,125		568		954		165		309		236		365		1,817		2,753
CCC — C		1,188		1,862		1,167		1,721		316		730		141		296		2,812		4,609
Total	$	19,787	$	16,440	$	7,807	$	8,806	$	1,273	$	1,845	$	5,755	$	6,207	$	34,622	$	33,298
(a)    Credit quality indicators are updated on an ongoing basis and reflect credit quality information as of the dates indicated.
(b)    Our bond rating to internal loan grade conversion system is as follows: AAA - AA = 1, A = 2, BBB - BB = 3 - 13, B = 14 - 16, and CCC - C = 17 - 20.
(c)    Our internal loan grade to regulatory-defined classification is as follows: Pass = 1-16, Special Mention = 17, Substandard = 18, Doubtful = 19, and Loss = 20.

March 31,
in millions
	Residential — Prime
GRADE	2012		2011
Pass	$	11,398	$	11,624
Substandard		229		227
Total	$	11,627	$	11,851

March 31,	Consumer — Key Community Bank				Consumer — Marine				Consumer — Other				Total
in millions	2012		2011		2012		2011		2012		2011		2012		2011
Performing	$	1,211	$	1,138	$	1,624	$	2,081	$	110	$	149	$	2,945	$	3,368
Nonperforming		1		3		30		31		1		1		32		35
Total	$	1,212	$	1,141	$	1,654	$	2,112	$	111	$	150	$	2,977	$	3,403

(a) Credit quality indicators are updated on an ongoing basis and reflect credit quality information as of the dates indicated.

(b) Our past due payment activity to regulatory classification conversion is as follows: pass = less than 90 days, and substandard = 90 days and greater plus nonperforming loans.

Summary of the allowance for loan and lease losses

	Three months ended March 31,
in millions	2012		2011
Balance at beginning of period — continuing operations	$	1,004	$	1,604
Charge-offs		(132)		(232)
Recoveries		31		39
Net loans charged off		(101)		(193)
Provision for loan and lease losses from continuing operations		42		(40)
Foreign currency translation adjustment		(1)		1
Balance at end of period — continuing operations	$	944	$	1,372

Changes in allowance for loan and lease losses by loan category

in millions	December 31,    2011		Provision				Charge-offs		Recoveries		March 31,    2012
Commercial, financial and agricultural	$	334	$	(3)			$	(26)	$	11	$	316
Real estate — commercial mortgage		272		12				(23)		2		263
Real estate — construction		63		3				(11)		1		56
Commercial lease financing		78		(10)				(4)		4		68
Total commercial loans		747		2				(64)		18		703
Real estate — residential mortgage		37		4				(6)		1		36
Home equity:
Key Community Bank		103		14				(25)		2		94
Other		29		6				(8)		1		28
Total home equity loans		132		20				(33)		3		122
Consumer other — Key Community Bank		41		5				(10)		1		37
Consumer other:
Marine		46		9				(17)		7		45
Other		1		1				(2)		1		1
Total consumer other:		47		10				(19)		8		46
Total consumer loans		257		39				(68)		13		241
Total ALLL — continuing operations		1,004		41	(a	)		(132)		31		944
Discontinued operations		104		5				(23)		4		90
Total ALLL — including discontinued operations	$	1,108	$	46			$	(155)	$	35	$	1,034

(a) Includes $1 million of foreign currency translation adjustment.

in millions	December 31,    2010		Provision			Charge-offs		Recoveries		March 31,    2011
Commercial, financial and agricultural	$	485	$	(34)		$	(42)	$	10	$	419
Real estate — commercial mortgage		416		13			(46)		3		386
Real estate — construction		145		2			(35)		5		117
Commercial lease financing		175		(32)			(17)		6		132
Total commercial loans		1,221		(51)			(140)		24		1,054
Real estate — residential mortgage		49		—			(10)		1		40
Home equity:
Key Community Bank		120		15			(25)		1		111
Other		57		2			(15)		1		45
Total home equity loans		177		17			(40)		2		156
Consumer other — Key Community Bank		57		3			(12)		2		50
Consumer other:
Marine		89		(2)			(27)		8		68
Other		11		(6)			(3)		2		4
Total consumer other:		100		(8)			(30)		10		72
Total consumer loans		383		12			(92)		15		318
Total ALLL — continuing operations		1,604		(39)	(a)		(232)		39		1,372
Discontinued operations		114		32			(38)		3		111
Total ALLL — including discontinued operations	$	1,718	$	(7)		$	(270)	$	42	$	1,483

(a) Includes $1 million of foreign currency translation adjustment.

Allowance for loan and lease losses and the corresponding loan balances

	Allowance (a)				Outstanding (a)
March 31, 2012 in millions	Individually Evaluated for Impairment		Collectively Evaluated for Impairment		Loans			Individually Evaluated for Impairment		Collectively Evaluated for Impairment
Commercial, financial and agricultural	$	19	$	297	$	19,787		$	125	$	19,662
Commercial real estate:
Commercial mortgage		16		247		7,807			182		7,625
Construction		3		53		1,273			52		1,221
Total commercial real estate loans		19		300		9,080			234		8,846
Commercial lease financing		—		68		5,755			—		5,755
Total commercial loans		38		665		34,622			359		34,263
Real estate — residential mortgage		—		36		1,967			—		1,967
Home equity:
Key Community Bank		—		94		9,153			—		9,153
Other		—		28		507			—		507
Total home equity loans		—		122		9,660			—		9,660
Consumer other — Key Community Bank		—		37		1,212			—		1,212
Consumer other:
Marine		—		45		1,654			—		1,654
Other		—		1		111			—		111
Total consumer other		—		46		1,765			—		1,765
Total consumer loans		—		241		14,604			—		14,604
Total ALLL — continuing operations		38		906		49,226			359		48,867
Discontinued operations		—		90		5,715	(b)		—		5,715
Total ALLL — including discontinued operations	$	38	$	996	$	54,941		$	359	$	54,582

(a) There were no loans acquired with deteriorated credit quality at March 31, 2012.

(b) Amount includes $2.8 billion of loans carried at fair value that are excluded from ALLL consideration.

	Allowance(a)				Outstanding(a)
March 31, 2011 in millions	Individually Evaluated for Impairment		Collectively Evaluated for Impairment		Loans		Individually Evaluated for Impairment		Collectively Evaluated for Impairment
Commercial, financial and agricultural	$	25	$	394	$	16,440	$	143	$	16,297
Commercial real estate:
Commercial mortgage		13		373		8,806		218		8,588
Construction		1		116		1,845		128		1,717
Total commercial real estate loans		14		489		10,651		346		10,305
Commercial lease financing		—		132		6,207		2		6,205
Total commercial loans		39		1,015		33,298		491		32,807
Real estate — residential mortgage		—		40		1,803		—		1,803
Home equity:
Key Community Bank		—		111		9,421		2		9,419
Other		—		45		627		—		627
Total home equity loans		—		156		10,048		2		10,046
Consumer other — Key Community Bank		—		50		1,141		—		1,141
Consumer other:
Marine		—		68		2,112		—		2,112
Other		—		4		150		—		150
Total consumer other		—		72		2,262		—		2,262
Total consumer loans		—		318		15,254		2		15,252
Total ALLL — continuing operations		39		1,333		48,552		493		48,059
Discontinued operations		—		111		6,304		—		6,304
Total ALLL — including discontinued operations	$	39	$	1,444	$	54,856	$	493	$	54,363

(a) There were no loans acquired with deteriorated credit quality at March 31, 2011.

Changes in Liability for Credit Losses on Lending Related Commitments

	Three months ended March 31,
in millions	2012		2011
Balance at beginning of period	$	45	$	73
Provision (credit) for losses on lending-related commitments		—		(4)
Balance at end of period	$	45	$	69