10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington D.C. 20549

Form 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended

March 31, 2015

Commission File Number 001-11302

Exact name of registrant as specified in its charter:

Ohio	34-6542451
State or other jurisdiction of incorporation or organization	I.R.S. Employer Identification Number:

127 Public Square, Cleveland, Ohio	44114-1306
Address of principal executive offices:	Zip Code:

(216) 689-3000

Registrant’s telephone number, including area code:

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes x    No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  x    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer	x	Accelerated filer	¨
Non-accelerated filer	¨  (Do not check if a smaller reporting company)	Smaller reporting company	¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  x

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Common Shares with a par value of $1 each	848,305,592 Shares
Title of class	Outstanding at April 30, 2015

KEYCORP

TABLE OF CONTENTS

		Page Number
Item 1.	Financial Statements
	Consolidated Balance Sheets — March 31, 2015 (Unaudited), December  31, 2014, and March 31, 2014 (Unaudited)		5
	Consolidated Statements of Income (Unaudited) — Three months ended March 31, 2015, and March 31, 2014		6
	Consolidated Statements of Comprehensive Income (Unaudited) — Three months ended March 31, 2015, and March 31, 2014		7
	Consolidated Statements of Changes in Equity (Unaudited) — Three months ended March 31, 2015, and March 31, 2014		8
	Consolidated Statements of Cash Flows (Unaudited) — Three months ended March 31, 2015, and March 31, 2014		9
	Notes to Consolidated Financial Statements (Unaudited)
	Note 1. Basis of Presentation		10
	Note 2. Earnings Per Common Share		14
	Note 3. Loans and Loans Held for Sale		15
	Note 4. Asset Quality		17
	Note 5. Fair Value Measurements		32
	Note 6. Securities		47
	Note 7. Derivatives and Hedging Activities		51
	Note 8. Mortgage Servicing Assets		59
	Note 9. Variable Interest Entities		60
	Note 10. Income Taxes		62
	Note 11. Acquisitions and Discontinued Operations		63
	Note 12. Securities Financing Activities		71
	Note 13. Employee Benefits		73
	Note 14. Trust Preferred Securities Issued by Unconsolidated Subsidiaries		74
	Note 15. Contingent Liabilities and Guarantees		75
	Note 16. Accumulated Other Comprehensive Income		77
	Note 17. Shareholders’ Equity		79
	Note 18. Line of Business Results		80
	Report of Independent Registered Public Accounting Firm		84

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Item 2.	Management’s Discussion & Analysis of Financial Condition & Results of Operations	85
	Introduction	85
	Terminology	85
	Selected financial data	86
	Forward-looking statements	87
	Economic overview	88
	Long-term financial goals	89
	Strategic developments	89
	Demographics	90
	Supervision and regulation	91
	Highlights of Our Performance	92
	Financial performance	92
	Results of Operations	97
	Net interest income	97
	Noninterest income	100
	Noninterest expense	102
	Income taxes	103
	Line of Business Results	104
	Key Community Bank summary of operations	104
	Key Corporate Bank summary of operations	105
	Other Segments	106
	Financial Condition	107
	Loans and loans held for sale	107
	Securities	113
	Other investments	116
	Deposits and other sources of funds	116
	Capital	117
	Risk Management	121
	Overview	121
	Market risk management	122
	Liquidity risk management	127
	Credit risk management	130
	Operational and compliance risk management	137
	Critical Accounting Policies and Estimates	138
	European Sovereign and Non-Sovereign Debt Exposures	139
Item 3.	Quantitative and Qualitative Disclosure about Market Risk	140
Item 4.	Controls and Procedures	140

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	PART II. OTHER INFORMATION
Item 1.	Legal Proceedings	140
Item 1A.	Risk Factors	140
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	141
Item 6.	Exhibits	141
	Signature	142
	Exhibits	143

Throughout the Notes to Consolidated Financial Statements (Unaudited) and Management’s Discussion & Analysis of Financial Condition & Results of Operations, we use certain acronyms and abbreviations as defined in Note 1 (“Basis of Presentation”) that begins on page 10.

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PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

Consolidated Balance Sheets

in millions, except per share data	March 31, 2015			December 31, 2014			March 31, 2014
	(Unaudited)						(Unaudited)
ASSETS
Cash and due from banks	$	506		$	653		$	409
Short-term investments		3,378			4,269			2,922
Trading account assets		789			750			840
Securities available for sale		13,120			13,360			12,359
Held-to-maturity securities (fair value: $5,003, $4,974, and $4,733)		5,005			5,015			4,826
Other investments		730			760			899
Loans, net of unearned income of $665, $682, and $776		57,953			57,381			55,445
Less: Allowance for loan and lease losses		794			794			834
Net loans		57,159			56,587			54,611
Loans held for sale		1,649			734			401
Premises and equipment		806			841			862
Operating lease assets		306			330			294
Goodwill		1,057			1,057			979
Other intangible assets		92			101			117
Corporate-owned life insurance		3,488			3,479			3,425
Derivative assets		731			609			427
Accrued income and other assets (including $1 of consolidated LIHTC guaranteed funds VIEs, see Note 9) (a)		3,144			2,952			3,004
Discontinued assets (including $187 of loans in portfolio at fair value)		2,246			2,324			4,427
Total assets	$	94,206		$	93,821		$	90,802
LIABILITIES
Deposits in domestic offices:
NOW and money market deposit accounts	$	35,623		$	34,536		$	34,373
Savings deposits		2,413			2,371			2,513
Certificates of deposit ($100,000 or more)		1,982			2,040			2,849
Other time deposits		3,182			3,259			3,682
Total interest-bearing deposits		43,200			42,206			43,417
Noninterest-bearing deposits		27,948			29,228			23,244
Deposits in foreign office — interest-bearing		474			564			605
Total deposits		71,622			71,998			67,266
Federal funds purchased and securities sold under repurchase agreements		517			575			1,417
Bank notes and other short-term borrowings		608			423			464
Derivative liabilities		825			784			408
Accrued expense and other liabilities		1,308			1,621			1,297
Long-term debt		8,713			7,875			7,712
Discontinued liabilities		—			3			1,819
Total liabilities		83,593			83,279			80,383
EQUITY
Preferred stock, $1 par value, authorized 25,000,000 shares:
7.75% Noncumulative Perpetual Convertible Preferred Stock, Series A, $100 liquidation preference; authorized 7,475,000 shares; issued 2,900,234, 2,904,839, and 2,904,839 shares		290			291			291
Common shares, $1 par value; authorized 1,400,000,000 shares; issued 1,016,969,905, 1,016,969,905, and 1,016,969,905 shares		1,017			1,017			1,017
Capital surplus		3,910			3,986			3,961
Retained earnings		8,445			8,273			7,793
Treasury stock, at cost (166,049,974, 157,566,493, and 132,100,665 shares)		(2,780	)		(2,681	)		(2,335	)
Accumulated other comprehensive income (loss)		(279	)		(356	)		(324	)
Key shareholders’ equity		10,603			10,530			10,403
Noncontrolling interests		10			12			16
Total equity		10,613			10,542			10,419
Total liabilities and equity	$	94,206		$	93,821		$	90,802

(a) The assets of the VIEs can only be used by the particular VIE, and there is no recourse to Key with respect to the liabilities of the consolidated LIHTC VIEs.

See Notes to Consolidated Financial Statements (Unaudited).

5

Consolidated Statements of Income (Unaudited)

	Three months ended March 31,
dollars in millions, except per share amounts	2015		2014
INTEREST INCOME
Loans	$	523	$	519
Loans held for sale		7		4
Securities available for sale		70		72
Held-to-maturity securities		24		22
Trading account assets		5		6
Short-term investments		2		1
Other investments		5		6
Total interest income		636		630
INTEREST EXPENSE
Deposits		26		32
Federal funds purchased and securities sold under repurchase agreements		—		1
Bank notes and other short-term borrowings		2		2
Long-term debt		37		32
Total interest expense		65		67
NET INTEREST INCOME		571		563
Provision for credit losses		35		4
Net interest income after provision for credit losses		536		559
NONINTEREST INCOME
Trust and investment services income		109		98
Investment banking and debt placement fees		68		84
Service charges on deposit accounts		61		63
Operating lease income and other leasing gains		19		29
Corporate services income		43		42
Cards and payments income		42		38
Corporate-owned life insurance income		31		26
Consumer mortgage income		3		2
Mortgage servicing fees		13		15
Net gains (losses) from principal investing		29		24
Other income (a)		19		14
Total noninterest income		437		435
NONINTEREST EXPENSE
Personnel		389		388
Net occupancy		65		64
Computer processing		38		38
Business services and professional fees		33		41
Equipment		22		24
Operating lease expense		11		10
Marketing		8		5
FDIC assessment		8		6
Intangible asset amortization		9		10
OREO expense, net		2		1
Other expense		84		77
Total noninterest expense		669		664
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		304		330
Income taxes		74		92
INCOME (LOSS) FROM CONTINUING OPERATIONS		230		238
Income (loss) from discontinued operations, net of taxes of $3 and $2 (see Note 11)		5		4
NET INCOME (LOSS)		235		242
Less: Net income (loss) attributable to noncontrolling interests		2		—
NET INCOME (LOSS) ATTRIBUTABLE TO KEY	$	233	$	242
Income (loss) from continuing operations attributable to Key common shareholders	$	222	$	232
Net income (loss) attributable to Key common shareholders		227		236
Per common share:
Income (loss) from continuing operations attributable to Key common shareholders	$	.26	$	.26
Income (loss) from discontinued operations, net of taxes		.01		—
Net income (loss) attributable to Key common shareholders (b)		.27		.27
Per common share — assuming dilution:
Income (loss) from continuing operations attributable to Key common shareholders	$	.26	$	.26
Income (loss) from discontinued operations, net of taxes		.01		—
Net income (loss) attributable to Key common shareholders (b)		.26		.26
Cash dividends declared per common share	$	.065	$	.055
Weighted-average common shares outstanding (000)		848,580		884,727
Effect of convertible preferred stock		—		—
Effect of common share options and other stock awards		8,542		7,163
Weighted-average common shares and potential common shares outstanding (000) (c)		857,122		891,890

(a) For each of the three months ended March 31, 2015, and March 31, 2014, net securities gains (losses) totaled less than $1 million. For the three months ended March 31, 2015, impairment losses related to securities totaled less than $1 million. For the three months ended March 31, 2014, we did not have any impairment losses related to securities.

(b) EPS may not foot due to rounding.

(c) Assumes conversion of common share options and other stock awards and/or convertible preferred stock, as applicable.

See Notes to Consolidated Financial Statements (Unaudited).

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Consolidated Statements of Comprehensive Income (Unaudited)

	Three months ended March 31,
in millions	2015			2014
Net income (loss)	$	235		$	242
Other comprehensive income (loss), net of tax:
Net unrealized gains (losses) on securities available for sale, net of income taxes of $33 and $17		55			29
Net unrealized gains (losses) on derivative financial instruments, net of income taxes of $19 and ($1)		32			(1	)
Foreign currency translation adjustments, net of income taxes of ($8) and ($4)		(13	)		(2	)
Net pension and postretirement benefit costs, net of income taxes of $1 and $2		3			2
Total other comprehensive income (loss), net of tax		77			28
Comprehensive income (loss)		312			270
Less: Comprehensive income attributable to noncontrolling interests		2			—
Comprehensive income (loss) attributable to Key	$	310		$	270

See Notes to Consolidated Financial Statements (Unaudited).

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Consolidated Statements of Changes in Equity (Unaudited)

	Key Shareholders’ Equity
	Preferred			Common																	Accumulated
	Shares			Shares														Treasury			Other
dollars in millions, except per	Outstanding			Outstanding			Preferred			Common		Capital			Retained			Stock,			Comprehensive			Noncontrolling
share amounts	(000)			(000)			Stock			Shares		Surplus			Earnings			at Cost			Income (Loss)			Interests
BALANCE AT DECEMBER 31, 2013		2,905			890,724		$	291		$	1,017	$	4,022		$	7,606		$	(2,281	)	$	(352	)	$	17
Net income (loss)																242									—
Other comprehensive income (loss):
Net unrealized gains (losses) on securities available for sale, net of income taxes of $17																						29
Net unrealized gains (losses) on derivative financial instruments, net of income taxes of ($1)																						(1	)
Foreign currency translation adjustments, net of income taxes of ($4)																						(2	)
Net pension and postretirement benefit costs, net of income taxes of $2																						2
Deferred compensation													(4	)
Cash dividends declared on common shares ($.055 per share)																(49	)
Cash dividends declared on Noncumulative Series A
Preferred Stock ($1.9375 per share)																(6	)
Common shares repurchased					(9,845	)													(130	)
Common shares reissued (returned) for stock options and other employee benefit plans					3,990								(57	)					76
Net contribution from (distribution to) noncontrolling interests																									(1	)
BALANCE AT MARCH 31, 2014		2,905			884,869		$	291		$	1,017	$	3,961		$	7,793		$	(2,335	)	$	(324	)	$	16
BALANCE AT DECEMBER 31, 2014		2,905			859,403		$	291		$	1,017	$	3,986		$	8,273		$	(2,681	)	$	(356	)	$	12
Net income (loss)																233									2
Other comprehensive income (loss):
Net unrealized gains (losses) on securities available for sale, net of income taxes of $33																						55
Net unrealized gains (losses) on derivative financial instruments, net of income taxes of $19																						32
Foreign currency translation adjustments, net of income taxes of ($8)																						(13	)
Net pension and postretirement benefit costs, net of income taxes of $1																						3
Deferred compensation													5
Cash dividends declared on common shares ($.065 per share)																(55	)
Cash dividends declared on Noncumulative Series A
Preferred Stock ($1.9375 per share)																(6	)
Common shares repurchased					(14,087	)													(197	)
Common shares exchanged for Series A Preferred Stock		(5	)		33			(1	)										1
Common shares reissued (returned) for stock options and other employee benefit plans					5,571								(81	)					97
Net contribution from (distribution to) noncontrolling interests																									(4	)
BALANCE AT MARCH 31, 2015		2,900			850,920		$	290		$	1,017	$	3,910		$	8,445		$	(2,780	)	$	(279	)	$	10

See Notes to Consolidated Financial Statements (Unaudited).

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Consolidated Statements of Cash Flows (Unaudited)

	Three months ended March 31,
in millions	2015			2014
OPERATING ACTIVITIES
Net income (loss)	$	235		$	242
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Provision for credit losses		35			4
Provision (credit) for losses on LIHTC guaranteed funds		—			(6	)
Depreciation, amortization and accretion expense, net		50			52
Increase in cash surrender value of corporate-owned life insurance		(25	)		(24	)
Stock-based compensation expense		13			11
Deferred income taxes (benefit)		50			40
Proceeds from sales of loans held for sale		1,225			611
Originations of loans held for sale, net of repayments		(2,109	)		(383	)
Net losses (gains) on sales of loans held for sale		(20	)		(15	)
Net losses (gains) from principal investing		(29	)		(24	)
Net losses (gains) on leased equipment		(3	)		(14	)
Net decrease (increase) in trading account assets		(39	)		(102	)
Other operating activities, net		(485	)		(236	)
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES		(1,102	)		156
INVESTING ACTIVITIES
Net decrease (increase) in short-term investments, excluding acquisitions		891			2,668
Purchases of securities available for sale		(403	)		(618	)
Proceeds from prepayments and maturities of securities available for sale		724			650
Proceeds from prepayments and maturities of held-to-maturity securities		266			180
Purchases of held-to-maturity securities		(257	)		(250	)
Purchases of other investments		(13	)		(17	)
Proceeds from sales of other investments		32			122
Proceeds from prepayments and maturities of other investments		4			2
Net decrease (increase) in loans, excluding acquisitions, sales and transfers		(727	)		(1,029	)
Proceeds from sales of portfolio loans		47			21
Proceeds from corporate-owned life insurance		15			6
Purchases of premises, equipment, and software		(3	)		(11	)
Proceeds from sales of premises and equipment		—			1
Proceeds from sales of other real estate owned		6			5
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES		582			1,730
FINANCING ACTIVITIES
Net increase (decrease) in deposits, excluding acquisitions		(376	)		(1,996	)
Net increase (decrease) in short-term borrowings		127			4
Net proceeds from issuance of long-term debt		1,000			78
Payments on long-term debt		(129	)		(10	)
Repurchase of common shares		(197	)		(130	)
Net proceeds from reissuance of common shares		9			15
Cash dividends paid		(61	)		(55	)
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES		373			(2,094	)
NET INCREASE (DECREASE) IN CASH AND DUE FROM BANKS		(147	)		(208	)
CASH AND DUE FROM BANKS AT BEGINNING OF PERIOD		653			617
CASH AND DUE FROM BANKS AT END OF PERIOD	$	506		$	409
Additional disclosures relative to cash flows:
Interest paid	$	89		$	103
Income taxes paid (refunded)		19			10
Noncash items:
Reduction of secured borrowing and related collateral	$	72		$	6
Loans transferred to portfolio from held for sale		—			2
Loans transferred to held for sale from portfolio		10			5
Loans transferred to other real estate owned		7			3

See Notes to Consolidated Financial Statements (Unaudited).

9

Notes to Consolidated Financial Statements (Unaudited)

1. Basis of Presentation

As used in these Notes, references to “Key,” “we,” “our,” “us,” and similar terms refer to the consolidated entity consisting of KeyCorp and its subsidiaries. KeyCorp refers solely to the parent holding company, and KeyBank refers to KeyCorp’s subsidiary, KeyBank National Association.

The acronyms and abbreviations identified below are used in the Notes to Consolidated Financial Statements (Unaudited) as well as in the Management’s Discussion & Analysis of Financial Condition & Results of Operations. You may find it helpful to refer back to this page as you read this report.

References to our “2014 Form 10-K” refer to our Form 10-K for the year ended December 31, 2014, that has been filed with the U.S. Securities and Exchange Commission and is available on its website (www.sec.gov) or on our website (www.key.com/ir).

AICPA: American Institute of Certified Public Accountants.	Moody’s: Moody’s Investor Services, Inc.
ALCO: Asset/Liability Management Committee.	MSRs: Mortgage servicing rights.
ALLL: Allowance for loan and lease losses.	N/A: Not applicable.
A/LM: Asset/liability management.	NASDAQ: The NASDAQ Stock Market LLC.
AOCI: Accumulated other comprehensive income (loss).	N/M: Not meaningful.
APBO: Accumulated postretirement benefit obligation.	NOW: Negotiable Order of Withdrawal.
Austin: Austin Capital Management, Ltd.	NYSE: New York Stock Exchange.
BHCs: Bank holding companies.	OCC: Office of the Comptroller of the Currency.
CCAR: Comprehensive Capital Analysis and Review.	OCI: Other comprehensive income (loss).
CMBS: Commercial mortgage-backed securities.	OREO: Other real estate owned.
CMO: Collateralized mortgage obligation.	OTTI: Other-than-temporary impairment.
Common shares: KeyCorp common shares, $1 par value.	QSPE: Qualifying special purpose entity.
Dodd-Frank Act: Dodd-Frank Wall Street Reform and	PBO: Projected benefit obligation.
Consumer Protection Act of 2010.	PCI: Purchased credit impaired.
EPS: Earnings per share.	S&P: Standard and Poor’s Ratings Services, a Division of The
ERM: Enterprise risk management.	McGraw-Hill Companies, Inc.
EVE: Economic value of equity.	SEC: U.S. Securities & Exchange Commission.
FASB: Financial Accounting Standards Board.	Series A Preferred Stock: KeyCorp’s 7.750% Noncumulative
FDIC: Federal Deposit Insurance Corporation.	Perpetual Convertible Preferred Stock, Series A.
Federal Reserve: Board of Governors of the Federal Reserve	SIFIs: Systemically important financial institutions, including
System.	BHCs with total consolidated assets of at least $50 billion
FHLMC: Federal Home Loan Mortgage Corporation.	and nonbank financial companies designated by FSOC for
FSOC: Financial Stability Oversight Council.	supervision by the Federal Reserve.
GAAP: U.S. generally accepted accounting principles.	TDR: Troubled debt restructuring.
GNMA: Government National Mortgage Association.	TE: Taxable-equivalent.
ISDA: International Swaps and Derivatives Association.	U.S. Treasury: United States Department of the Treasury.
KAHC: Key Affordable Housing Corporation.	VaR: Value at risk.
KEF: Key Equipment Finance.	VEBA: Voluntary Employee Beneficiary Association.
KREEC: Key Real Estate Equity Capital, Inc.	Victory: Victory Capital Management and/or
LIBOR: London Interbank Offered Rate.	Victory Capital Advisors.
LIHTC: Low-income housing tax credit.	VIE: Variable interest entity.

The consolidated financial statements include the accounts of KeyCorp and its subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. Some previously reported amounts have been reclassified to conform to current reporting practices.

The consolidated financial statements include any voting rights entities in which we have a controlling financial interest. In accordance with the applicable accounting guidance for consolidations, we consolidate a VIE if we have: (i) a variable interest in the entity; (ii) the power to direct activities of the VIE that most significantly impact the entity’s economic

10

performance; and (iii) the obligation to absorb losses of the entity or the right to receive benefits from the entity that could potentially be significant to the VIE (i.e., we are considered to be the primary beneficiary). Variable interests can include equity interests, subordinated debt, derivative contracts, leases, service agreements, guarantees, standby letters of credit, loan commitments, and other contracts, agreements, and financial instruments. See Note 9 (“Variable Interest Entities”) for information on our involvement with VIEs.

We use the equity method to account for unconsolidated investments in voting rights entities or VIEs if we have significant influence over the entity’s operating and financing decisions (usually defined as a voting or economic interest of 20% to 50%, but not controlling). Unconsolidated investments in voting rights entities or VIEs in which we have a voting or economic interest of less than 20% generally are carried at cost. Investments held by our registered broker-dealer and investment company subsidiaries (principal investing entities and Real Estate Capital line of business) are carried at fair value.

We believe that the unaudited consolidated interim financial statements reflect all adjustments of a normal recurring nature and disclosures that are necessary for a fair presentation of the results for the interim periods presented. The results of operations for the interim period are not necessarily indicative of the results of operations to be expected for the full year. The interim financial statements should be read in conjunction with the audited consolidated financial statements and related notes included in our 2014 Form 10-K.

In preparing these financial statements, subsequent events were evaluated through the time the financial statements were issued. Financial statements are considered issued when they are widely distributed to all shareholders and other financial statement users, or filed with the SEC.

Offsetting Derivative Positions

In accordance with the applicable accounting guidance, we take into account the impact of bilateral collateral and master netting agreements that allow us to settle all derivative contracts held with a single counterparty on a net basis, and to offset the net derivative position with the related cash collateral when recognizing derivative assets and liabilities. Additional information regarding derivative offsetting is provided in Note 7 (“Derivatives and Hedging Activities”).

Accounting Guidance Adopted in 2015

Troubled debt restructurings. In August 2014, the FASB issued new accounting guidance that clarifies how to account for certain government-guaranteed mortgage loans upon foreclosure. This accounting guidance was effective for reporting periods beginning after December 15, 2014 (effective January 1, 2015, for us) and could be implemented using either a modified retrospective method or a prospective method. Early adoption was permitted. We elected to implement the new accounting guidance using a prospective approach. The adoption of this accounting guidance did not have a material effect on our financial condition or results of operations.

Transfers and servicing of financial assets. In June 2014, the FASB issued new accounting guidance that applies secured borrowing accounting to repurchase-to-maturity transactions and linked repurchase financings and expands disclosure requirements. This accounting guidance was effective for interim and annual reporting periods beginning after December 15, 2014 (effective January 1, 2015, for us) and was implemented using a cumulative-effect approach to transactions outstanding as of the effective date with no adjustment to prior periods. The disclosure for secured borrowings will be presented for annual periods beginning after December 15, 2014, and for interim periods beginning after March 15, 2015 (June 30, 2015, for us). Early adoption was not permitted. The adoption of this accounting guidance did not have a material effect on our financial condition or results of operations.

Discontinued operations. In April 2014, the FASB issued new accounting guidance that revises the criteria for determining when disposals should be reported as discontinued operations and modifies the disclosure requirements. This accounting guidance was effective prospectively for reporting periods beginning after December 15, 2014 (effective January 1, 2015, for us). Early adoption was permitted. The adoption of this accounting guidance did not have a material effect on our financial condition or results of operations.

Investments in qualified affordable housing projects. In January 2014, the FASB issued new accounting guidance that modifies the conditions that must be met to make an election to account for investments in qualified affordable housing projects using the proportional amortization method or the practical expedient method to the proportional amortization method. This accounting guidance was effective retrospectively for reporting periods beginning after December 15, 2014 (effective January 1, 2015, for us). Early adoption was permitted. We elected to amortize our LIHTCs under the practical

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expedient method to the proportional amortization method. As our LIHTCs were previously accounted for under the effective yield method and related amortization expense was previously classified as income taxes in our Consolidated Statements of Income, the adoption of this accounting guidance did not have a material effect on our financial condition or results of operations. We provide additional information regarding our LIHTCs in Note 9 (“Variable Interest Entities”).

Troubled debt restructurings. In January 2014, the FASB issued new accounting guidance that clarifies the definition of when an in substance repossession or foreclosure occurs for purposes of creditor reclassification of residential real estate collateralized consumer mortgage loans by derecognizing the loan and recognizing the collateral asset. This accounting guidance was effective for reporting periods beginning after December 15, 2014 (effective January 1, 2015, for us) and could be implemented using either a modified retrospective method or prospective method. Early adoption was permitted. We elected to implement the new accounting guidance using a prospective approach. The adoption of this accounting guidance did not have a material effect on our financial condition or results of operations. We provide the disclosure related to consumer residential mortgages required by this new accounting guidance in Note 4 (“Asset Quality”).

Accounting Guidance Pending Adoption at March 31, 2015

Cloud computing fees. In April 2015, the FASB issued new accounting guidance that clarifies a customer’s accounting for fees paid in a cloud computing arrangement. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. This accounting guidance will be effective for interim and annual reporting periods beginning after December 15, 2015 (effective January 1, 2016, for us) and can be implemented using either a prospective method or a retrospective method. Early adoption is permitted. The adoption of this accounting guidance is not expected to have a material effect on our financial condition or results of operations.

Imputation of interest. In April 2015, the FASB issued new accounting guidance that requires debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. This accounting guidance will be effective for interim and annual reporting periods beginning after December 15, 2015 (effective January 1, 2016, for us) and should be implemented using a retrospective method. Early adoption is permitted. The adoption of this accounting guidance is not expected to have a material effect on our financial condition or results of operations.

Consolidation. In February 2015, the FASB issued new accounting guidance that changes the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. The new guidance amends the current accounting guidance to address limited partnerships and similar legal entities, certain investment funds, fees paid to a decision maker or service provider, and the impact of fee arrangements and related parties on the primary beneficiary determination. This accounting guidance will be effective for interim and annual reporting periods beginning after December 15, 2015 (effective January 1, 2016, for us) and should be implemented using a modified retrospective basis. Retrospective application to all relevant prior periods and early adoption is permitted. We are currently evaluating the impact that this accounting guidance may have on our financial condition or results of operations.

Derivatives and hedging. In November 2014, the FASB issued new accounting guidance that clarifies how current guidance should be interpreted when evaluating the economic characteristics and risks of a host contract in a hybrid financial instrument that is issued in the form of a share. An entity should consider all relevant terms and features, including the embedded derivative feature being evaluated for bifurcation, when evaluating the nature of a host contract. This accounting guidance will be effective for interim and annual reporting periods beginning after December 15, 2015 (effective January 1, 2016, for us) and should be implemented using a modified retrospective basis. Retrospective application to all relevant prior periods and early adoption is permitted. The adoption of this accounting guidance is not expected to have a material effect on our financial condition or results of operations.

Going concern. In August 2014, the FASB issued new accounting guidance that requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date the financial statements are issued. Disclosure is required when conditions or events raise substantial doubt about an entity’s ability to continue as a going concern. This accounting guidance will be effective for interim and annual reporting periods beginning after December 15, 2016 (effective January 1, 2017, for us). Early adoption is permitted. The adoption of this accounting guidance is not expected to have a material effect on our financial condition or results of operations.

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Consolidation. In August 2014, the FASB issued new accounting guidance that clarifies how to measure the financial assets and the financial liabilities of a consolidated collateralized financing entity. This accounting guidance will be effective for interim and annual reporting periods beginning after December 15, 2015 (effective January 1, 2016, for us) and can be implemented using either a retrospective method or a cumulative-effect approach. Early adoption is permitted. The adoption of this accounting guidance is not expected to have a material effect on our financial condition or results of operations.

Stock-based compensation. In June 2014, the FASB issued new accounting guidance that clarifies how to account for share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period. This accounting guidance will be effective for interim and annual reporting periods beginning after December 15, 2015 (effective January 1, 2016, for us) and can be implemented using either a retrospective method or a prospective method. Early adoption is permitted. The adoption of this accounting guidance is not expected to have a material effect on our financial condition or results of operations.

Revenue recognition. In May 2014, the FASB issued new accounting guidance that revises the criteria for determining when to recognize revenue from contracts with customers and expands disclosure requirements. This accounting guidance will be effective for interim and annual reporting periods beginning after December 15, 2017 (effective January 1, 2018, for us) and can be implemented using either a retrospective method or a cumulative-effect approach. Early adoption is not permitted. We have elected to implement this new accounting guidance using a cumulative-effect approach. Our preliminary analysis suggests that the adoption of this accounting guidance is not expected to have a material effect on our financial condition or results of operations. There are many aspects of this new accounting guidance that are still being interpreted, and therefore, the results of our materiality analysis may change based on the conclusions reached as to the application of the new guidance.

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2. Earnings Per Common Share

Basic earnings per share is the amount of earnings (adjusted for dividends declared on our preferred stock) available to each common share outstanding during the reporting periods. Diluted earnings per share is the amount of earnings available to each common share outstanding during the reporting periods adjusted to include the effects of potentially dilutive common shares. Potentially dilutive common shares include incremental shares issued for the conversion of our convertible Series A Preferred Stock, stock options, and other stock-based awards. Potentially dilutive common shares are excluded from the computation of diluted earnings per share in the periods where the effect would be antidilutive. For diluted earnings per share, net income available to common shareholders can be affected by the conversion of our convertible Series A Preferred Stock. Where the effect of this conversion would be dilutive, net income available to common shareholders is adjusted by the amount of preferred dividends associated with our Series A Preferred Stock.

Our basic and diluted earnings per common share are calculated as follows:

	Three months ended March 31,
dollars in millions, except per share amounts	2015		2014
EARNINGS
Income (loss) from continuing operations	$	230	$	238
Less: Net income (loss) attributable to noncontrolling interests		2		—
Income (loss) from continuing operations attributable to Key		228		238
Less: Dividends on Series A Preferred Stock		6		6
Income (loss) from continuing operations attributable to Key common shareholders		222		232
Income (loss) from discontinued operations, net of taxes (a)		5		4
Net income (loss) attributable to Key common shareholders	$	227	$	236
WEIGHTED-AVERAGE COMMON SHARES
Weighted-average common shares outstanding (000)		848,580		884,727
Effect of convertible preferred stock		—		—
Effect of common share options and other stock awards		8,542		7,163
Weighted-average common shares and potential common shares outstanding (000) (b)		857,122		891,890
EARNINGS PER COMMON SHARE
Income (loss) from continuing operations attributable to Key common shareholders	$	.26	$	.26
Income (loss) from discontinued operations, net of taxes (a)		.01		—
Net income (loss) attributable to Key common shareholders (c)		.27		.27
Income (loss) from continuing operations attributable to Key common shareholders — assuming dilution	$	.26	$	.26
Income (loss) from discontinued operations, net of taxes (a)		.01		—
Net income (loss) attributable to Key common shareholders — assuming dilution (c)		.26		.26

(a) In April 2009, we decided to wind down the operations of Austin, a subsidiary that specialized in managing hedge fund investments for institutional customers. In September 2009, we decided to discontinue the education lending business conducted through Key Education Resources, the education payment and financing unit of KeyBank. In February 2013, we decided to sell Victory to a private equity fund. As a result of these decisions, we have accounted for these businesses as discontinued operations. For further discussion regarding the income (loss) from discontinued operations, see Note 11 (“Acquisitions and Discontinued Operations”).

(b) Assumes conversion of common share options and other stock awards and/or convertible preferred stock, as applicable.

(c) EPS may not foot due to rounding.

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3. Loans and Loans Held for Sale

Our loans by category are summarized as follows:

in millions	March 31, 2015		December 31, 2014		March 31, 2014
Commercial, financial and agricultural (a)	$	28,783	$	27,982	$	26,224
Commercial real estate:
Commercial mortgage		8,162		8,047		7,877
Construction		1,142		1,100		1,007
Total commercial real estate loans		9,304		9,147		8,884
Commercial lease financing (b)		4,064		4,252		4,396
Total commercial loans		42,151		41,381		39,504
Residential — prime loans:
Real estate — residential mortgage		2,231		2,225		2,183
Home equity:
Key Community Bank		10,270		10,366		10,281
Other		253		267		315
Total home equity loans		10,523		10,633		10,596
Total residential — prime loans		12,754		12,858		12,779
Consumer other — Key Community Bank		1,547		1,560		1,436
Credit cards		727		754		698
Consumer other:
Marine		730		779		965
Other		44		49		63
Total consumer other		774		828		1,028
Total consumer loans		15,802		16,000		15,941
Total loans (c) (d)	$	57,953	$	57,381	$	55,445

(a) Loan balances include $87 million, $88 million, and $95 million of commercial credit card balances at March 31, 2015, December 31, 2014, and March 31, 2014, respectively.

(b) Commercial lease financing includes receivables held as collateral for a secured borrowing of $230 million, $302 million, and $124 million at March 31, 2015, December 31, 2014, and March 31, 2014, respectively. Principal reductions are based on the cash payments received from these related receivables. Additional information pertaining to this secured borrowing is included in Note 18 (“Long-Term Debt”) beginning on page 202 of our 2014 Form 10-K.

(c) At March 31, 2015, total loans include purchased loans of $130 million, of which $12 million were PCI loans. At December 31, 2014, total loans include purchased loans of $138 million, of which $13 million were PCI loans. At March 31, 2014, total loans include purchased loans of $159 million, of which $16 million were PCI loans.

(d) Total loans exclude loans of $2.2 billion at March 31, 2015, $2.3 billion at December 31, 2014, and $4.4 billion at March 31, 2014, related to the discontinued operations of the education lending business.

Our loans held for sale are summarized as follows:

in millions	March 31, 2015		December 31, 2014		March 31, 2014
Commercial, financial and agricultural	$	183	$	63	$	44
Real estate — commercial mortgage		1,408		638		333
Commercial lease financing		14		15		8
Real estate — residential mortgage		44		18		16
Total loans held for sale	$	1,649	$	734	$	401

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Our quarterly summary of changes in loans held for sale follows:

in millions	March 31, 2015			December 31, 2014			March 31, 2014
Balance at beginning of the period	$	734		$	784		$	611
New originations		2,130			2,465			645
Transfers from (to) held to maturity, net		10			2			3
Loan sales		(1,204	)		(2,516	)		(596	)
Loan draws (payments), net		(21	)		(1	)		(262	)
Balance at end of period	$	1,649		$	734		$	401

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4. Asset Quality

We assess the credit quality of the loan portfolio by monitoring net credit losses, levels of nonperforming assets and delinquencies, and credit quality ratings as defined by management.

Our nonperforming assets and past due loans were as follows:

in millions	March 31, 2015		December 31, 2014		March 31, 2014
Total nonperforming loans (a), (b)	$	437	$	418	$	449
Nonperforming loans held for sale		—		—		1
OREO (c)		20		18		12
Other nonperforming assets		—		—		7
Total nonperforming assets	$	457	$	436	$	469
Nonperforming assets from discontinued operations—education lending (d)	$	8	$	11	$	20
Restructured loans included in nonperforming loans	$	141	$	157	$	178
Restructured loans with an allocated specific allowance (e)		70		82		51
Specifically allocated allowance for restructured loans (f)		39		34		32
Accruing loans past due 90 days or more	$	111	$	96	$	89
Accruing loans past due 30 through 89 days		216		235		267

(a) Loan balances exclude $12 million, $13 million, and $16 million of PCI loans at March 31, 2015, December 31, 2014, and March 31, 2014, respectively.

(b) Includes carrying value of consumer residential mortgage loans in the process of foreclosure of approximately $119 million at March 31, 2015.

(c) Includes carrying value of foreclosed residential real estate of approximately $17 million at March 31, 2015.

(d) Restructured loans of approximately $18 million, $17 million, and $15 million are included in discontinued operations at March 31, 2015, December 31, 2014, and March 31, 2014, respectively. See Note 11 (“Acquisitions and Discontinued Operations”) for further discussion.

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

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

We evaluate purchased loans for impairment in accordance with the applicable accounting guidance. Purchased loans that have evidence of deterioration in credit quality since origination and for which it is probable, at acquisition, that all contractually required payments will not be collected are deemed PCI and initially recorded at fair value without recording an allowance for loan losses. At the date of acquisition, the estimated gross contractual amount receivable of all PCI loans totaled $41 million. The estimated cash flows not expected to be collected (the nonaccretable amount) were $11 million, and the accretable amount was approximately $5 million. The difference between the fair value and the cash flows expected to be collected from the purchased loans is accreted to interest income over the remaining term of the loans.

At March 31, 2015, the outstanding unpaid principal balance and carrying value of all PCI loans was $19 million and $12 million, respectively. Changes in the accretable yield during the first quarter of 2015 included accretion and net reclassifications of less than $1 million, resulting in an ending balance of $5 million at March 31, 2015.

At March 31, 2015, the approximate carrying amount of our commercial nonperforming loans outstanding represented 79% of their original contractual amount, total nonperforming loans outstanding represented 81% of their original contractual amount owed, and nonperforming assets in total were carried at 81% of their original contractual amount.

At March 31, 2015, our 20 largest nonperforming loans totaled $123 million, representing 28% of total loans on nonperforming status. At March 31, 2014, our 20 largest nonperforming loans totaled $75 million, representing 17% of total loans on nonperforming status.

Nonperforming loans and loans held for sale reduced expected interest income by $4 million for the three months ended March 31, 2015, and $16 million for the year ended December 31, 2014.

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The following tables set forth a further breakdown of individually impaired loans as of March 31, 2015, December 31, 2014, and March 31, 2014:

March 31, 2015 in millions	Recorded Investment (a)		Unpaid Principal Balance  (b)		Specific Allowance		Average Recorded Investment
With no related allowance recorded:
Commercial, financial and agricultural	$	20	$	51		—	$	13
Commercial real estate:
Commercial mortgage		14		19		—		14
Construction		7		7		—		6
Total commercial real estate loans		21		26		—		20
Total commercial loans		41		77		—		33
Real estate — residential mortgage		23		23		—		23
Home equity:
Key Community Bank		62		62		—		62
Other		1		2		—		1
Total home equity loans		63		64		—		63
Consumer other:
Marine		1		1		—		2
Total consumer other		1		1		—		2
Total consumer loans		87		88		—		88
Total loans with no related allowance recorded		128		165		—		121
With an allowance recorded:
Commercial, financial and agricultural		62		62	$	20		50
Commercial real estate:
Commercial mortgage		6		7		2		6
Construction		—		—		—		1
Total commercial real estate loans		6		7		2		7
Total commercial loans		68		69		22		57
Real estate — residential mortgage		32		32		5		32
Home equity:
Key Community Bank		49		49		16		48
Other		11		11		2		11
Total home equity loans		60		60		18		59
Consumer other — Key Community Bank		3		3		—		3
Credit cards		4		4		—		4
Consumer other:
Marine		41		41		4		42
Other		2		2		—		2
Total consumer other		43		43		4		44
Total consumer loans		142		142		27		142
Total loans with an allowance recorded		210		211		49		199
Total	$	338	$	376	$	49	$	320

(a) The Recorded Investment represents the face amount of the loan increased or decreased by applicable accrued interest, net deferred loan fees and costs, and 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.

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December 31, 2014 in millions	Recorded Investment (a)		Unpaid Principal Balance  (b)		Specific Allowance		Average Recorded Investment
With no related allowance recorded:
Commercial, financial and agricultural	$	6	$	17		—	$	8
Commercial real estate:
Commercial mortgage		15		20		—		19
Construction		5		6		—		7
Total commercial real estate loans		20		26		—		26
Total commercial loans		26		43		—		34
Real estate — residential mortgage		24		24		—		30
Home equity:
Key Community Bank		62		63		—		63
Other		1		1		—		2
Total home equity loans		63		64		—		65
Consumer other:
Marine		2		2		—		2
Total consumer other		2		2		—		2
Total consumer loans		89		90		—		97
Total loans with no related allowance recorded		115		133		—		131
With an allowance recorded:
Commercial, financial and agricultural		37		37	$	9		28
Commercial real estate:
Commercial mortgage		6		6		2		6
Construction		3		3		1		2
Total commercial real estate loans		9		9		3		8
Total commercial loans		46		46		12		36
Real estate — residential mortgage		31		31		5		25
Home equity:
Key Community Bank		46		46		16		43
Other		11		11		2		11
Total home equity loans		57		57		18		54
Consumer other — Key Community Bank		4		4		—		3
Credit cards		4		4		—		4
Consumer other:
Marine		43		43		5		45
Other		2		2		—		2
Total consumer other		45		45		5		47
Total consumer loans		141		141		28		133
Total loans with an allowance recorded		187		187		40		169
Total	$	302	$	320	$	40	$	300

(a) The Recorded Investment represents the face amount of the loan increased or decreased by applicable accrued interest, net deferred loan fees and costs, and 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.

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March 31, 2014 in millions	Recorded Investment (a)		Unpaid Principal Balance  (b)		Specific Allowance		Average Recorded Investment
With no related allowance recorded:
Commercial, financial and agricultural	$	33	$	60		—	$	33
Commercial real estate:
Commercial mortgage		23		28		—		22
Construction		7		17		—		27
Total commercial real estate loans		30		45		—		49
Total commercial loans		63		105		—		82
Real estate — residential mortgage		26		26		—		26
Home equity:
Key Community Bank		70		70		—		69
Other		2		2		—		2
Total home equity loans		72		72		—		71
Consumer other:
Marine		2		2		—		3
Total consumer other		2		2		—		3
Total consumer loans		100		100		—		100
Total loans with no related allowance recorded		163		205		—		182
With an allowance recorded:
Commercial, financial and agricultural		7		10	$	2		12
Commercial real estate:
Commercial mortgage		2		2		1		4
Construction		—		—		—		1
Total commercial real estate loans		2		2		1		5
Total commercial loans		9		12		3		17
Real estate — residential mortgage		28		28		5		28
Home equity:
Key Community Bank		36		36		16		36
Other		11		11		2		11
Total home equity loans		47		47		18		47
Consumer other — Key Community Bank		3		3		—		3
Credit cards		4		4		1		4
Consumer other:
Marine		49		49		7		49
Other		1		1		—		1
Total consumer other		50		50		7		50
Total consumer loans		132		132		31		132
Total loans with an allowance recorded		141		144		34		149
Total	$	304	$	349	$	34	$	331

(a) The Recorded Investment represents the face amount of the loan increased or decreased by applicable accrued interest, net deferred loan fees and costs, and 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.

For the three months ended March 31, 2015, and March 31, 2014, interest income recognized on the outstanding balances of accruing impaired loans totaled $1 million and $2 million, respectively.

At March 31, 2015, aggregate restructured loans (accrual and nonaccrual loans) totaled $268 million, compared to $270 million at December 31, 2014, and $294 million at March 31, 2014. We added $11 million in restructured loans during the first three months of 2015, which were offset by $13 million in payments and charge-offs.

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A further breakdown of TDRs included in nonperforming loans by loan category as of March 31, 2015, follows:

March 31, 2015 dollars in millions	Number of loans		Pre-modification Outstanding Recorded Investment		Post-modification Outstanding Recorded Investment
LOAN TYPE
Nonperforming:
Commercial, financial and agricultural		11	$	25	$	22
Commercial real estate:
Real estate — commercial mortgage		12		37		13
Total commercial real estate loans		12		37		13
Total commercial loans		23		62		35
Real estate — residential mortgage		383		22		22
Home equity:
Key Community Bank		1,071		76		70
Other		128		4		3
Total home equity loans		1,199		80		73
Consumer other — Key Community Bank		28		1		1
Credit cards		275		2		1
Consumer other:
Marine		117		8		8
Other		26		1		1
Total consumer other		143		9		9
Total consumer loans		2,028		114		106
Total nonperforming TDRs		2,051		176		141
Prior-year accruing (a)
Commercial, financial and agricultural		17		6		3
Commercial real estate:
Real estate — commercial mortgage		1		2		1
Total commercial real estate loans		1		2		1
Total commercial loans		18		8		4
Real estate — residential mortgage		454		34		34
Home equity:
Key Community Bank		803		47		41
Other		339		10		8
Total home equity loans		1,142		57		49
Consumer other — Key Community Bank		51		2		2
Credit cards		519		4		2
Consumer other:
Marine		429		60		35
Other		76		2		1
Total consumer other		505		62		36
Total consumer loans		2,671		159		123
Total prior-year accruing TDRs		2,689		167		127
Total TDRs		4,740	$	343	$	268

(a) All TDRs that were restructured prior to January 1, 2015, and are fully accruing.

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A further breakdown of TDRs included in nonperforming loans by loan category as of December 31, 2014, follows:

December 31, 2014 dollars in millions	Number of loans		Pre-modification Outstanding Recorded Investment		Post-modification Outstanding Recorded Investment
LOAN TYPE
Nonperforming:
Commercial, financial and agricultural		14	$	25	$	23
Commercial real estate:
Real estate — commercial mortgage		10		38		13
Real estate — construction		1		5		—
Total commercial real estate loans		11		43		13
Total commercial loans		25		68		36
Real estate — residential mortgage		453		27		27
Home equity:
Key Community Bank		1,184		79		72
Other		158		4		4
Total home equity loans		1,342		83		76
Consumer other — Key Community Bank		37		2		1
Credit cards		290		2		2
Consumer other:
Marine		206		17		14
Other		38		1		1
Total consumer other		244		18		15
Total consumer loans		2,366		132		121
Total nonperforming TDRs		2,391		200		157
Prior-year accruing (a)
Commercial, financial and agricultural		20		6		3
Commercial real estate:
Real estate — commercial mortgage		1		2		1
Total commercial real estate loans		1		2		1
Total commercial loans		21		8		4
Real estate — residential mortgage		381		29		29
Home equity:
Key Community Bank		674		41		36
Other		310		9		8
Total home equity loans		984		50		44
Consumer other — Key Community Bank		45		2		2
Credit cards		514		4		2
Consumer other:
Marine		373		54		31
Other		67		2		1
Total consumer other		440		56		32
Total consumer loans		2,364		141		109
Total prior-year accruing TDRs		2,385		149		113
Total TDRs		4,776	$	349	$	270

(a) All TDRs that were restructured prior to January 1, 2014, and are fully accruing.

22

A further breakdown of TDRs included in nonperforming loans by loan category as of March 31, 2014, follows:

			Pre-modification		Post-modification
			Outstanding		Outstanding
March 31, 2014	Number		Recorded		Recorded
dollars in millions	of loans		Investment		Investment
LOAN TYPE
Nonperforming:
Commercial, financial and agricultural		28	$	58	$	33
Commercial real estate:
Real estate — commercial mortgage		11		40		14
Real estate — construction		5		16		2
Total commercial real estate loans		16		56		16
Total commercial loans		44		114		49
Real estate — residential mortgage		687		42		42
Home equity:
Key Community Bank		1,190		73		69
Other		132		4		4
Total home equity loans		1,322		77		73
Consumer other — Key Community Bank		33		1		1
Credit cards		10		—		—
Consumer other:
Marine		210		14		12
Other		41		1		1
Total consumer other		251		15		13
Total consumer loans		2,303		135		129
Total nonperforming TDRs		2,347		249		178
Prior-year accruing (a)
Commercial, financial and agricultural		42		7		4
Commercial real estate:
Real estate — commercial mortgage		4		18		8
Total commercial real estate loans		4		18		8
Total commercial loans		46		25		12
Real estate — residential mortgage		111		12		12
Home equity:
Key Community Bank		708		40		37
Other		312		9		8
Total home equity loans		1,020		49		45
Consumer other — Key Community Bank		51		2		2
Credit cards		785		5		5
Consumer other:
Marine		430		62		39
Other		68		2		1
Total consumer other		498		64		40
Total consumer loans		2,465		132		104
Total prior-year accruing TDRs		2,511		157		116
Total TDRs		4,858	$	406	$	294

(a) All TDRs that were restructured prior to January 1, 2014, and are fully accruing.

We classify loan modifications as TDRs when a borrower is experiencing financial difficulties and we have granted a concession without commensurate financial, structural, or legal consideration. All commercial and consumer loan TDRs, regardless of size, are individually evaluated for impairment to determine the probable loss content and are assigned a specific loan allowance if deemed appropriate. This designation has the effect of moving the loan from the general reserve methodology (i.e., collectively evaluated) to the specific reserve methodology (i.e., individually evaluated) and may impact the ALLL through a charge-off or increased loan loss provision. These components affect the ultimate allowance level. Additional information regarding TDRs for discontinued operations is provided in Note 11 (“Acquisitions and Discontinued Operations”).

Commercial loan TDRs are considered defaulted when principal and interest payments are 90 days past due. Consumer loan TDRs are considered defaulted when principal and interest payments are more than 60 days past due. During the first three months of 2015, there were no significant commercial loan TDRs, and 89 consumer loan TDRs with a combined recorded investment of $4 million that experienced payment defaults from modifications resulting in TDR status during 2014. During the first three months of 2014, two commercial loan TDRs with a combined recorded investment of $11 million, and 157 consumer loan TDRs with a combined recorded investment of $4 million experienced payment defaults from modifications resulting in TDR status during 2013. As TDRs are individually evaluated for impairment under the specific reserve methodology, subsequent defaults do not generally have a significant additional impact on the ALLL.

23

Our loan modifications are handled on a case-by-case basis and are negotiated to achieve mutually agreeable terms that maximize loan collectability and meet the borrower’s financial needs. Our concession types are primarily interest rate reductions, forgiveness of principal, and other modifications. The commercial TDR other concession category includes modification of loan terms, covenants, or conditions. The consumer TDR other concession category primarily includes those borrowers that are discharged through Chapter 7 bankruptcy and have not been formally re-affirmed.

The following table shows the post-modification outstanding recorded investment by concession type for our commercial and consumer accruing and nonaccruing TDRs and other selected financial data.

	March 31,		December 31,		March 31,
in millions	2015		2014		2014
Commercial loans:
Interest rate reduction	$	12	$	13	$	49
Forgiveness of principal		2		2		5
Other		25		25		7
Total	$	39	$	40	$	61
Consumer loans:
Interest rate reduction	$	140	$	140	$	142
Forgiveness of principal		4		4		5
Other		85		86		86
Total	$	229	$	230	$	233
Total commercial and consumer TDRs (a)	$	268	$	270	$	294
Total loans		57,953		57,381		55,445

(a) Commitments outstanding to lend additional funds to borrowers whose loan terms have been modified in TDRs are $5 million, $5 million, and $2 million at March 31, 2015, December 31, 2014, and March 31, 2014, respectively.

Our policies for determining past due loans, placing loans on nonaccrual, applying payments on nonaccrual loans, and resuming accrual of interest for our commercial and consumer loan portfolios are disclosed in Note 1 (“Summary of Significant Accounting Policies”) under the heading “Nonperforming Loans” beginning on page 116 of our 2014 Form 10-K.

At March 31, 2015, approximately $57.2 billion, or 98.7%, of our total loans were current. At March 31, 2015, total past due loans and nonperforming loans of $764 million represented approximately 1.3% of total loans.

24

The following aging analysis of past due and current loans as of March 31, 2015, December 31, 2014, and March 31, 2014, provides further information regarding Key’s credit exposure.

							90 and				Total Past
			30-59		60-89		Greater				Due and		Purchased
March 31, 2015			Days Past		Days Past		Days Past		Nonperforming		Nonperforming		Credit		Total
in millions	Current		Due		Due		Due		Loans		Loans		Impaired		Loans
LOAN TYPE
Commercial, financial and agricultural	$	28,603	$	36	$	11	$	35	$	98	$	180		—	$	28,783
Commercial real estate:
Commercial mortgage		8,080		5		18		29		30		82		—		8,162
Construction		1,114		10		4		2		12		28		—		1,142
Total commercial real estate loans		9,194		15		22		31		42		110		—		9,304
Commercial lease financing		4,017		9		6		12		20		47		—		4,064
Total commercial loans	$	41,814	$	60	$	39	$	78	$	160	$	337		—	$	42,151
Real estate — residential mortgage	$	2,129	$	12	$	5	$	2	$	72	$	91	$	11	$	2,231
Home equity:
Key Community Bank		10,012		39		23		13		182		257		1		10,270
Other		238		4		1		1		9		15		—		253
Total home equity loans		10,250		43		24		14		191		272		1		10,523
Consumer other — Key Community Bank		1,527		8		4		6		2		20		—		1,547
Credit cards		708		5		3		9		2		19		—		727
Consumer other:
Marine		707		8		4		2		9		23		—		730
Other		42		1		—		—		1		2		—		44
Total consumer other		749		9		4		2		10		25		—		774
Total consumer loans	$	15,363	$	77	$	40	$	33	$	277	$	427	$	12	$	15,802
Total loans	$	57,177	$	137	$	79	$	111	$	437	$	764	$	12	$	57,953

							90 and				Total Past
			30-59		60-89		Greater				Due and		Purchased
December 31, 2014			Days Past		Days Past		Days Past		Nonperforming		Nonperforming		Credit		Total
in millions	Current		Due		Due		Due		Loans		Loans		Impaired		Loans
LOAN TYPE
Commercial, financial and agricultural	$	27,858	$	19	$	14	$	32	$	59	$	124		—	$	27,982
Commercial real estate:
Commercial mortgage		7,981		6		10		16		34		66		—		8,047
Construction		1,084		2		—		1		13		16		—		1,100
Total commercial real estate loans		9,065		8		10		17		47		82		—		9,147
Commercial lease financing		4,172		30		21		11		18		80		—		4,252
Total commercial loans	$	41,095	$	57	$	45	$	60	$	124	$	286		—	$	41,381
Real estate — residential mortgage	$	2,111	$	12	$	7	$	4	$	79	$	102	$	12	$	2,225
Home equity:
Key Community Bank		10,098		46		22		14		185		267		1		10,366
Other		249		5		2		1		10		18		—		267
Total home equity loans		10,347		51		24		15		195		285		1		10,633
Consumer other — Key Community Bank		1,541		9		3		5		2		19		—		1,560
Credit cards		733		6		4		9		2		21		—		754
Consumer other:
Marine		746		11		5		2		15		33		—		779
Other		46		1		—		1		1		3		—		49
Total consumer other		792		12		5		3		16		36		—		828
Total consumer loans	$	15,524	$	90	$	43	$	36	$	294	$	463	$	13	$	16,000
Total loans	$	56,619	$	147	$	88	$	96	$	418	$	749	$	13	$	57,381

25

			30-59		60-89		90 and Greater				Total Past Due and		Purchased
March 31, 2014			Days Past		Days Past		Days Past		Nonperforming		Nonperforming		Credit		Total
in millions	Current		Due		Due		Due		Loans		Loans		Impaired		Loans
LOAN TYPE
Commercial, financial and agricultural	$	26,071	$	67	$	8	$	18	$	60	$	153		—	$	26,224
Commercial real estate:
Commercial mortgage		7,806		9		7		17		37		70	$	1		7,877
Construction		987		3		5		1		11		20		—		1,007
Total commercial real estate loans		8,793		12		12		18		48		90		1		8,884
Commercial lease financing		4,338		15		12		13		18		58		—		4,396
Total commercial loans	$	39,202	$	94	$	32	$	49	$	126	$	301	$	1	$	39,504
Real estate — residential mortgage	$	2,043	$	13	$	6	$	3	$	105	$	127	$	13	$	2,183
Home equity:
Key Community Bank		10,010		45		25		11		188		269		2		10,281
Other		296		5		2		1		11		19		—		315
Total home equity loans		10,306		50		27		12		199		288		2		10,596
Consumer other — Key Community Bank		1,415		8		5		6		2		21		—		1,436
Credit cards		671		7		4		15		1		27		—		698
Consumer other:
Marine		928		12		6		4		15		37		—		965
Other		59		2		1		—		1		4		—		63
Total consumer other		987		14		7		4		16		41		—		1,028
Total consumer loans	$	15,422	$	92	$	49	$	40	$	323	$	504	$	15	$	15,941
Total loans	$	54,624	$	186	$	81	$	89	$	449	$	805	$	16	$	55,445

The prevalent risk characteristic for both commercial and consumer loans is the risk of loss arising from an obligor’s inability or failure to meet contractual payment or performance terms. Evaluation of this risk is stratified and monitored by the loan risk rating grades assigned for the commercial loan portfolios and the regulatory risk ratings assigned for the consumer loan portfolios.

Most extensions of credit are subject to loan grading or scoring. Loan grades are assigned at the time of origination, verified by credit risk management, and periodically re-evaluated thereafter. This risk rating methodology blends our judgment with quantitative modeling. Commercial loans generally are assigned two internal risk ratings. The first rating reflects the probability that the borrower will default on an obligation; the second rating reflects expected recovery rates on the credit facility. Default probability is determined based on, among other factors, the financial strength of the borrower, an assessment of the borrower’s management, the borrower’s competitive position within its industry sector, and our view of industry risk in the context of the general economic outlook. Types of exposure, transaction structure, and collateral, including credit risk mitigants, affect the expected recovery assessment.

Credit quality indicators for loans are updated on an ongoing basis. Bond rating classifications are indicative of the credit quality of our commercial loan portfolios and are determined by converting our internally assigned risk rating grades to bond rating categories. Payment activity and the regulatory classifications of pass and substandard are indicators of the credit quality of our consumer loan portfolios.

Credit quality indicators for our commercial and consumer loan portfolios, excluding $12 million and $16 million of PCI loans at March 31, 2015, and March 31, 2014, respectively, based on bond rating, regulatory classification, and payment activity as of March 31, 2015, and March 31, 2014, are as follows:

26

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)	2015		2014		2015		2014		2015		2014		2015		2014		2015		2014
AAA — AA	$	286	$	500	$	6	$	1	$	1	$	1	$	535	$	805	$	828	$	1,307
A		1,267		1,010		2		57		—		1		516		448		1,785		1,516
BBB — BB		25,684		23,361		7,604		7,267		992		826		2,842		2,964		37,122		34,418
B		648		551		325		337		127		84		104		101		1,204		1,073
CCC — C		898		802		225		214		22		95		67		78		1,212		1,189
Total	$	28,783	$	26,224	$	8,162	$	7,876	$	1,142	$	1,007	$	4,064	$	4,396	$	42,151	$	39,503

(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.

Consumer Credit Exposure

Credit Risk Profile by Regulatory Classifications ^{(a), (b)}

March 31,
in millions
	Residential — Prime
GRADE	2015		2014
Pass	$	12,463	$	12,445
Substandard		279		319
Total	$	12,742	$	12,764

Credit Risk Profile Based on Payment Activity ^(a)

March 31,	Consumer — Key Community Bank				Credit cards				Consumer — Marine				Consumer — Other				Total
in millions	2015		2014		2015		2014		2015		2014		2015		2014		2015		2014
Performing	$	1,545	$	1,434	$	725	$	697	$	721	$	950	$	43	$	62	$	3,034	$	3,143
Nonperforming		2		2		2		1		9		15		1		1		14		19
Total	$	1,547	$	1,436	$	727	$	698	$	730	$	965	$	44	$	63	$	3,048	$	3,162

(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.

We determine the appropriate level of the ALLL on at least a quarterly basis. The methodology is described in Note 1 (“Summary of Significant Accounting Policies”) under the heading “Allowance for Loan and Lease Losses” beginning on page 117 of our 2014 Form 10-K. We apply expected loss rates to existing loans with similar risk characteristics as noted in the credit quality indicator table above and exercise judgment to assess the impact of factors such as changes in economic conditions, changes in credit policies or underwriting standards, and changes in the level of credit risk associated with specific industries and markets.

For all commercial and consumer loan TDRs, regardless of size, as well as impaired commercial loans with an outstanding balance of $2.5 million or greater, we conduct further analysis to determine the probable loss content and assign a specific allowance to the loan if deemed appropriate. We estimate the extent of the individual impairment for commercial loans and TDRs by comparing the recorded investment of the loan with the estimated present value of its future cash flows, the fair value of its underlying collateral, or the loan’s observable market price. Secured consumer loan TDRs that are discharged through Chapter 7 bankruptcy and not formally re-affirmed are adjusted to reflect the fair value of the underlying collateral, less costs to sell. Non-Chapter 7 consumer loan TDRs are combined in homogenous pools and assigned a specific allocation based on the estimated present value of future cash flows using the loan’s effective interest rate. A specific allowance also may be assigned — even when sources of repayment appear sufficient — if we remain uncertain about whether the loan will be repaid in full. On at least a quarterly basis, we evaluate the appropriateness of our loss estimation methods to reduce differences between estimated incurred losses and actual losses. The ALLL at March 31, 2015, represents our best estimate of the probable credit losses inherent in the loan portfolio at that date.

27

Although quantitative modeling factors such as default probability and expected recovery rates are constantly changing as the financial strength of the borrower and overall economic conditions change, we have not changed the accounting policies or methodology that we use to estimate the ALLL.

Commercial loans generally are charged off in full or charged down to the fair value of the underlying collateral when the borrower’s payment is 180 days past due. Most consumer loans are charged off when payments are 120 days past due. Home equity and residential mortgage loans generally are charged down to the fair value of the underlying collateral when payment is 180 days past due. Credit card loans, and similar unsecured products, are charged off when payments are 180 days past due.

At March 31, 2015, the ALLL was $794 million, or 1.37% of loans, compared to $834 million, or 1.50% of loans, at March 31, 2014. At March 31, 2015, the ALLL was 181.7% of nonperforming loans, compared to 185.7% at March 31, 2014.

A summary of the changes in the ALLL for the periods indicated is presented in the table below:

	Three months ended March 31,
in millions	2015			2014
Balance at beginning of period — continuing operations	$	794		$	848
Charge-offs		(47	)		(57	)
Recoveries		19			37
Net loans and leases charged off		(28	)		(20	)
Provision for loan and lease losses from continuing operations		29			6
Foreign currency translation adjustment		(1	)		—
Balance at end of period — continuing operations	$	794		$	834

The changes in the ALLL by loan category for the periods indicated are as follows:

	December 31,										March 31,
in millions	2014		Provision			Charge-offs			Recoveries		2015
Commercial, financial and agricultural	$	391	$	21		$	(12	)	$	5	$	405
Real estate — commercial mortgage		148		—			(2	)		2		148
Real estate — construction		28		1			(1	)		—		28
Commercial lease financing		56		(3	)		(2	)		4		55
Total commercial loans		623		19			(17	)		11		636
Real estate — residential mortgage		23		—			(2	)		—		21
Home equity:
Key Community Bank		66		(3	)		(7	)		2		58
Other		5		—			(1	)		1		5
Total home equity loans		71		(3	)		(8	)		3		63
Consumer other — Key Community Bank		22		3			(6	)		2		21
Credit cards		33		7			(8	)		—		32
Consumer other:
Marine		21		1			(5	)		3		20
Other		1		1			(1	)		—		1
Total consumer other:		22		2			(6	)		3		21
Total consumer loans		171		9			(30	)		8		158
Total ALLL — continuing operations		794		28	(a)		(47	)		19		794
Discontinued operations		29		2			(10	)		4		25
Total ALLL — including discontinued operations	$	823	$	30		$	(57	)	$	23	$	819

(a) Includes $1 million of foreign currency translation adjustment. Excludes provision for losses on lending-related commitments of $6 million.

28

	December 31,										March 31,
in millions	2013		Provision			Charge-offs			Recoveries		2014
Commercial, financial and agricultural	$	362	$	13		$	(12	)	$	10	$	373
Real estate — commercial mortgage		165		(3	)		(2	)		1		161
Real estate — construction		32		(7	)		(2	)		14		37
Commercial lease financing		62		1			(3	)		2		62
Total commercial loans		621		4			(19	)		27		633
Real estate — residential mortgage		37		(8	)		(3	)		1		27
Home equity:
Key Community Bank		84		3			(10	)		3		80
Other		11		2			(3	)		1		11
Total home equity loans		95		5			(13	)		4		91
Consumer other — Key Community Bank		29		2			(8	)		2		25
Credit cards		34		4			(6	)		—		32
Consumer other:
Marine		29		(2	)		(7	)		3		23
Other		3		1			(1	)		—		3
Total consumer other:		32		(1	)		(8	)		3		26
Total consumer loans		227		2			(38	)		10		201
Total ALLL — continuing operations		848		6	(a)		(57	)		37		834
Discontinued operations		39		4			(13	)		4		34
Total ALLL — including discontinued operations	$	887	$	10		$	(70	)	$	41	$	868

(a) Excludes credit for losses on lending-related commitments of $2 million.

Our ALLL from continuing operations decreased by $40 million, or 4.8%, from the first quarter of 2014 primarily because of the improvement in the credit quality of our loan portfolios. The quality of new loan originations as well as decreasing levels of classified and nonperforming loans also resulted in a reduction in our general allowance. Our general allowance applies expected loss rates to our existing loans with similar risk characteristics as well as any adjustments to reflect our current assessment of qualitative factors such as changes in economic conditions, underwriting standards, and concentrations of credit. Our delinquency trends declined during 2014 and into 2015 due to continued improved credit quality, solid loan growth, relatively stable economic conditions, and continued run-off in our exit loan portfolio, reflecting our effort to maintain a moderate enterprise risk tolerance.

For continuing operations, the loans outstanding individually evaluated for impairment totaled $338 million, with a corresponding allowance of $49 million at March 31, 2015. Loans outstanding collectively evaluated for impairment totaled $57.6 billion, with a corresponding allowance of $744 million at March 31, 2015. At March 31, 2015, PCI loans evaluated for impairment totaled $12 million, with a corresponding allowance of $1 million. There was no provision for loan and lease losses on these PCI loans during the quarter ended March 31, 2015. At March 31, 2014, the loans outstanding individually evaluated for impairment totaled $304 million, with a corresponding allowance of $34 million. Loans outstanding collectively evaluated for impairment totaled $55.1 billion, with a corresponding allowance of $799 million at March 31, 2014. At March 31, 2014, PCI loans evaluated for impairment totaled $16 million, with a corresponding allowance of $1 million. There was no provision for loan and lease losses on these PCI loans during the quarter ended March 31, 2014.

29

A breakdown of the individual and collective ALLL and the corresponding loan balances as of March 31, 2015, follows:

	Allowance						Outstanding
March 31, 2015 in millions	Individually Evaluated for Impairment		Collectively Evaluated for Impairment		Purchased Credit Impaired		Loans			Individually Evaluated for Impairment		Collectively Evaluated for Impairment			Purchased Credit Impaired
Commercial, financial and agricultural	$	20	$	385		—	$	28,783		$	82	$	28,701			—
Commercial real estate:
Commercial mortgage		2		146		—		8,162			20		8,142			—
Construction		—		28		—		1,142			7		1,135			—
Total commercial real estate loans		2		174		—		9,304			27		9,277			—
Commercial lease financing		—		55		—		4,064			—		4,064			—
Total commercial loans		22		614		—		42,151			109		42,042			—
Real estate — residential mortgage		5		15	$	1		2,231			55		2,165		$	11
Home equity:
Key Community Bank		16		42		—		10,270			111		10,158			1
Other		2		3		—		253			12		241			—
Total home equity loans		18		45		—		10,523			123		10,399			1
Consumer other — Key Community Bank		—		21		—		1,547			3		1,544			—
Credit cards		—		32		—		727			4		723			—
Consumer other:
Marine		4		16		—		730			42		688			—
Other		—		1		—		44			2		42			—
Total consumer other		4		17		—		774			44		730			—
Total consumer loans		27		130		1		15,802			229		15,561			12
Total ALLL — continuing operations		49		744		1		57,953			338		57,603			12
Discontinued operations		1		24		—		2,219	(a)		18		2,201	(a)		—
Total ALLL — including discontinued operations	$	50	$	768	$	1	$	60,172		$	356	$	59,804		$	12

(a) Amount includes $187 million of portfolio loans carried at fair value that are excluded from ALLL consideration.

A breakdown of the individual and collective ALLL and the corresponding loan balances as of December 31, 2014, follows:

	Allowance						Outstanding
December 31, 2014 in millions	Individually Evaluated for Impairment		Collectively Evaluated for Impairment		Purchased Credit Impaired		Loans			Individually Evaluated for Impairment		Collectively Evaluated for Impairment			Purchased Credit Impaired
Commercial, financial and agricultural	$	9	$	382		—	$	27,982		$	43	$	27,939			—
Commercial real estate:
Commercial mortgage		2		146		—		8,047			21		8,025		$	1
Construction		1		27		—		1,100			8		1,092			—
Total commercial real estate loans		3		173		—		9,147			29		9,117			1
Commercial lease financing		—		56		—		4,252			—		4,252			—
Total commercial loans		12		611		—		41,381			72		41,308			1
Real estate — residential mortgage		5		17	$	1		2,225			55		2,159			11
Home equity:
Key Community Bank		16		50		—		10,366			108		10,257			1
Other		2		3		—		267			12		255			—
Total home equity loans		18		53		—		10,633			120		10,512			1
Consumer other — Key Community Bank		—		22		—		1,560			4		1,556			—
Credit cards		—		33		—		754			4		750			—
Consumer other:
Marine		5		16		—		779			45		734			—
Other		—		1		—		49			2		47			—
Total consumer other		5		17		—		828			47		781			—
Total consumer loans		28		142		1		16,000			230		15,758			12
Total ALLL — continuing operations		40		753		1		57,381			302		57,066			13
Discontinued operations		1		28		—		2,295	(a)		17		2,278	(a)		—
Total ALLL — including discontinued operations	$	41	$	781	$	1	$	59,676		$	319	$	59,344		$	13

(a) Amount includes $191 million of loans carried at fair value that are excluded from ALLL consideration.

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A breakdown of the individual and collective ALLL and the corresponding loan balances as of March 31, 2014, follows:

	Allowance						Outstanding
March 31, 2014 in millions	Individually Evaluated for Impairment		Collectively Evaluated for Impairment		Purchased Credit Impaired		Loans			Individually Evaluated for Impairment		Collectively Evaluated for Impairment		Purchased Credit Impaired
Commercial, financial and agricultural	$	2	$	371		—	$	26,224		$	40	$	26,184		—
Commercial real estate:
Commercial mortgage		1		160		—		7,877			25		7,851	$	1
Construction		—		37		—		1,007			6		1,001		—
Total commercial real estate loans		1		197		—		8,884			31		8,852		1
Commercial lease financing		—		62		—		4,396			—		4,396		—
Total commercial loans		3		630		—		39,504			71		39,432		1
Real estate — residential mortgage		4		22	$	1		2,183			54		2,116		13
Home equity:
Key Community Bank		16		64		—		10,281			105		10,174		2
Other		2		9		—		315			13		302		—
Total home equity loans		18		73		—		10,596			118		10,476		2
Consumer other — Key Community Bank		—		25		—		1,436			4		1,432		—
Credit cards		1		31		—		698			4		694		—
Consumer other:
Marine		7		16		—		965			52		913		—
Other		1		2		—		63			1		62		—
Total consumer other		8		18		—		1,028			53		975		—
Total consumer loans		31		169		1		15,941			233		15,693		15
Total ALLL — continuing operations		34		799		1		55,445			304		55,125		16
Discontinued operations		1		33		—		4,382	(a)		15		4,367		—
Total ALLL — including discontinued operations	$	35	$	832	$	1	$	59,827		$	319	$	59,492	$	16

(a) Amount includes $2.0 billion of loans carried at fair value that are excluded from ALLL consideration.

The liability for credit losses inherent in lending-related unfunded commitments, such as letters of credit and unfunded loan commitments, is included in “accrued expense and other liabilities” on the balance sheet. We establish the amount of this reserve by considering both historical trends and current market conditions quarterly, or more often if deemed necessary. Our liability for credit losses on lending-related commitments is $41 million at March 31, 2015. When combined with our ALLL, our total allowance for credit losses represented 1.44% of loans at March 31, 2015, compared to 1.57% at March 31, 2014.

Changes in the liability for credit losses on unfunded lending-related commitments are summarized as follows:

	Three months ended March 31,
in millions	2015		2014
Balance at beginning of period	$	35	$	37
Provision (credit) for losses on lending-related commitments		6		(2	)
Balance at end of period	$	41	$	35

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5. Fair Value Measurements

Fair Value Determination

As defined in the applicable accounting guidance, fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants in our principal market. We have established and documented our process for determining the fair values of our assets and liabilities, where applicable. Fair value is based on quoted market prices, when available, for identical or similar assets or liabilities. In the absence of quoted market prices, we determine the fair value of our assets and liabilities using valuation models or third-party pricing services. Both of these approaches rely on market-based parameters, when available, such as interest rate yield curves, option volatilities, and credit spreads, or unobservable inputs. Unobservable inputs may be based on our judgment, assumptions, and estimates related to credit quality, liquidity, interest rates, and other relevant inputs.

Valuation adjustments, such as those pertaining to counterparty and our own credit quality and liquidity, may be necessary to ensure that assets and liabilities are recorded at fair value. Credit valuation adjustments are made when market pricing does not accurately reflect the counterparty’s or our own credit quality. We make liquidity valuation adjustments to the fair value of certain assets to reflect the uncertainty in the pricing and trading of the instruments when we are unable to observe recent market transactions for identical or similar instruments. Liquidity valuation adjustments are based on the following factors:

• the amount of time since the last relevant valuation;

• whether there is an actual trade or relevant external quote available at the measurement date; and

• volatility associated with the primary pricing components.

We ensure that our fair value measurements are accurate and appropriate by relying upon various controls, including:

• an independent review and approval of valuation models and assumptions;

• recurring detailed reviews of profit and loss; and

• a validation of valuation model components against benchmark data and similar products, where possible.

We recognize transfers between levels of the fair value hierarchy at the end of the reporting period. Quarterly, we review any changes to our valuation methodologies to ensure they are appropriate and justified, and refine our valuation methodologies if more market-based data becomes available. The Fair Value Committee, which is governed by ALCO, oversees the valuation process for all lines of business and support areas, as applicable. Various Working Groups that report to the Fair Value Committee analyze and approve the underlying assumptions and valuation adjustments. Changes in valuation methodologies for Level 1 and Level 2 instruments are presented to the Accounting Policy group for approval. Changes in valuation methodologies for Level 3 instruments are presented to the Fair Value Committee for approval. The Working Groups are discussed in more detail in the qualitative disclosures within this note and in Note 11 (“Acquisitions and Discontinued Operations”). Formal documentation of the fair valuation methodologies is prepared by the lines of business and support areas as appropriate. The documentation details the asset or liability class and related general ledger accounts, valuation techniques, fair value hierarchy level, market participants, accounting methods, valuation methodology, group responsible for valuations, and valuation inputs.

Additional information regarding our accounting policies for determining fair value is provided in Note 1 (“Summary of Significant Accounting Policies”) under the heading “Fair Value Measurements” beginning on page 118 of our 2014 Form 10-K.

Qualitative Disclosures of Valuation Techniques

Loans. Most loans recorded as trading account assets are valued based on market spreads for similar assets since they are actively traded. Therefore, these loans are classified as Level 2 because the fair value recorded is based on observable market data for similar assets.

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Securities (trading and available for sale). We own several types of securities, requiring a range of valuation methods:

• Securities are classified as Level 1 when quoted market prices are available in an active market for the identical securities. Level 1 instruments include exchange-traded equity securities.

• Securities are classified as Level 2 if quoted prices for identical securities are not available, and fair value is determined using pricing models (either by a third-party pricing service or internally) or quoted prices of similar securities. These instruments include municipal bonds; bonds backed by the U.S. government; corporate bonds; certain mortgage-backed securities; securities issued by the U.S. Treasury; money markets; and certain agency and corporate CMOs. Inputs to the pricing models include: standard inputs, such as yields, benchmark securities, bids, and offers; actual trade data (i.e., spreads, credit ratings, and interest rates) for comparable assets; spread tables; matrices; high-grade scales; and option-adjusted spreads.

• Securities are classified as Level 3 when there is limited activity in the market for a particular instrument. To determine fair value in such cases, depending on the complexity of the valuations required, we use internal models based on certain assumptions or a third-party valuation service. At March 31, 2015, our Level 3 instruments consist of a convertible preferred security. Our Strategy group is responsible for reviewing the valuation model and determining the fair value of this investment on a quarterly basis. The security is valued using a cash flow analysis of the associated private company issuer. The valuation of the security is negatively impacted by a projected net loss of the associated private company and positively impacted by a projected net gain.

The fair values of our Level 2 securities available for sale are determined by a third-party pricing service. The valuations provided by the third-party pricing service are based on observable market inputs, which include benchmark yields, reported trades, issuer spreads, benchmark securities, bids, offers, and reference data obtained from market research publications. Inputs used by the third-party pricing service in valuing CMOs and other mortgage-backed securities also include new issue data, monthly payment information, whole loan collateral performance, and “To Be Announced” prices. In valuations of securities issued by state and political subdivisions, inputs used by the third-party pricing service also include material event notices.

On a monthly basis, we validate the pricing methodologies utilized by our third-party pricing service to ensure the fair value determination is consistent with the applicable accounting guidance and that our assets are properly classified in the fair value hierarchy. To perform this validation, we:

• review documentation received from our third-party pricing service regarding the inputs used in their valuations and determine a level assessment for each category of securities;

• substantiate actual inputs used for a sample of securities by comparing the actual inputs used by our third-party pricing service to comparable inputs for similar securities; and

• substantiate the fair values determined for a sample of securities by comparing the fair values provided by our third-party pricing service to prices from other independent sources for the same and similar securities. We analyze variances and conduct additional research with our third-party pricing service and take appropriate steps based on our findings.

Private equity and mezzanine investments. Private equity and mezzanine investments consist of investments in debt and equity securities through our Real Estate Capital line of business. They include direct investments made in specific properties, as well as indirect investments made in funds that pool assets of many investors to invest in properties. There is no active market for these investments, so we employ other valuation methods. The portion of our Real Estate Capital line of business involved with private equity and mezzanine investments is accounted for as an investment company in accordance with the applicable accounting guidance, whereby all investments are recorded at fair value.

Private equity and mezzanine investments are classified as Level 3 assets since our judgment significantly influences the determination of fair value. Our Fund Management, Asset Management, and Accounting groups are responsible for reviewing the valuation models and determining the fair value of these investments on a quarterly basis. Direct investments in properties are initially valued based upon the transaction price. This amount is then adjusted to fair value based on current market conditions using the discounted cash flow method based on the expected investment exit date. The fair values of the assets are reviewed and adjusted quarterly. Periodically, we obtain a third-party appraisal for the investments to validate the specific inputs for determining fair value.

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Inputs used in calculating future cash flows include the cost of build-out, future selling prices, current market outlook, and operating performance of the investment. Investment income and expense assumptions are based on market inputs, such as rental/leasing rates and vacancy rates for the geographic- and property type-specific markets. For investments under construction, investment income and expense assumptions are determined using expected future build-out costs and anticipated future rental prices based on current market conditions, discount rates, holding period, the terminal cap rate, and sales commissions paid in the terminal cap year. For investments that are in lease-up or are fully leased, income and expense assumptions are based on the geographic market’s current lease rates, underwritten expenses, market lease terms, and historical vacancy rates. Asset Management validates these inputs on a quarterly basis through the use of industry publications, third-party broker opinions, and comparable property sales, where applicable. Changes in the significant inputs (rental/leasing rates, vacancy rates, valuation capitalization rate, discount rate, and terminal cap rate) would significantly affect the fair value measurement. Increases in rental/leasing rates would increase fair value while increases in the vacancy rates, the valuation capitalization rate, the discount rate, and the terminal cap rate would decrease fair value.

Consistent with accounting guidance, indirect investments are valued using a methodology that allows the use of statements from the investment manager to calculate net asset value per share. A primary input used in estimating fair value is the most recent value of the capital accounts as reported by the general partners of the funds in which we invest. The calculation to determine the investment’s fair value is based on our percentage ownership in the fund multiplied by the net asset value of the fund, as provided by the fund manager. Under the requirements of the Volcker Rule, we will be required to dispose of some or all of our indirect investments. As of March 31, 2015, management has not committed to a plan to sell these investments. Therefore, these investments continue to be valued using the net asset value per share methodology. For more information about the Volcker Rule, see the discussion under the heading “Other Regulatory Developments under the Dodd-Frank Act – ‘Volcker Rule’” in the section entitled “Supervision and Regulation” beginning on page 16 of our 2014 Form 10-K.

Investments in real estate private equity funds are included within private equity and mezzanine investments. The main purpose of these funds is to acquire a portfolio of real estate investments that provides attractive risk-adjusted returns and current income for investors. Certain of these investments do not have readily determinable fair values and represent our ownership interest in an entity that follows measurement principles under investment company accounting.

The following table presents the fair value of our indirect investments and related unfunded commitments at March 31, 2015. We did not provide any financial support to investees related to our direct and indirect investments for the three months ended March 31, 2015, and March 31, 2014.

March 31, 2015			Unfunded
in millions	Fair Value		Commitments
INVESTMENT TYPE
Indirect investments
Passive funds (a)	$	9	$	1
Co-managed funds (b)		—		—
Total	$	9	$	1

(a) We invest in passive funds, which are multi-investor private equity funds. These investments can never be redeemed. Instead, distributions are received through the liquidation of the underlying investments in the funds. Some funds have no restrictions on sale, while others require investors to remain in the fund until maturity. The funds will be liquidated over a period of one to four years. The purpose of KREEC’s funding is to allow funds to make additional investments and keep a certain market value threshold in the funds. KREEC is obligated to provide financial support, as all investors are required, to fund based on their ownership percentage, as noted in the Limited Partnership Agreements.

(b) We are a manager or co-manager of these funds, which have been written down to zero. These investments can never be redeemed. Instead, distributions are received through the liquidation of the underlying investments in the funds. In addition, we receive management fees. We can sell or transfer our interest in any of these funds with the written consent of a majority of the fund’s investors. In one instance, the other co-manager of the fund must consent to the sale or transfer of our interest in the fund. The funds will mature over a period of one to two years. The purpose of KREEC’s funding is to allow funds to make additional investments and keep a certain market value threshold in the funds. KREEC is obligated to provide financial support, as all investors are required, to fund based on their ownership percentage, as noted in the Limited Partnership Agreements.

Principal investments. Principal investments consist of investments in equity and debt instruments made by our principal investing entities. They include direct investments (investments made in a particular company) and indirect investments (investments made through funds that include other investors). Our principal investing entities are accounted for as investment companies in accordance with the applicable accounting guidance, whereby each investment is adjusted to fair value with any net realized or unrealized gain/loss recorded in the current period’s earnings. This process is a coordinated and documented effort by the Principal Investing Entities Deal Team (individuals from one of the independent investment managers who oversee these instruments), accounting staff, and the Investment Committee (individual employees and a former employee of Key and one of the independent investment managers). This process involves an in-depth review of the condition of each investment depending on the type of investment.

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Our direct investments include investments in debt and equity instruments of both private and public companies. When quoted prices are available in an active market for the identical direct investment, we use the quoted prices in the valuation process, and the related investments are classified as Level 1 assets. However, in most cases, quoted market prices are not available for our direct investments, and we must perform valuations using other methods. These direct investment valuations are an in-depth analysis of the condition of each investment and are based on the unique facts and circumstances related to each individual investment. There is a certain amount of subjectivity surrounding the valuation of these investments due to the combination of quantitative and qualitative factors that are used in the valuation models. Therefore, these direct investments are classified as Level 3 assets. The specific inputs used in the valuations of each type of direct investment are described below.

Interest-bearing securities (i.e., loans) are valued on a quarterly basis. Valuation adjustments are determined by the Principal Investing Entities Deal Team and are subject to approval by the Investment Committee. Valuations of debt instruments are based on the Principal Investing Entities Deal Team’s knowledge of the current financial status of the subject company, which is regularly monitored throughout the term of the investment. Significant unobservable inputs used in the valuations of these investments include the company’s payment history, adequacy of cash flows from operations, and current operating results, including market multiples and historical and forecast earnings before interest, taxation, depreciation, and amortization (EBITDA). Inputs can also include the seniority of the debt, the nature of any pledged collateral, the extent to which the security interest is perfected, and the net liquidation value of collateral.

Valuations of equity instruments of private companies, which are prepared on a quarterly basis, are based on current market conditions and the current financial status of each company. A valuation analysis is performed to value each investment. The valuation analysis is reviewed by the Principal Investing Entities Deal Team Member, and reviewed and approved by the Chief Administrative Officer of one of the independent investment managers. Significant unobservable inputs used in these valuations include adequacy of the company’s cash flows from operations, any significant change in the company’s performance since the prior valuation, and any significant equity issuances by the company. Equity instruments of public companies are valued using quoted prices in an active market for the identical security. If the instrument is restricted, the fair value is determined considering the number of shares traded daily, the number of the company’s total restricted shares, and price volatility.

Our indirect investments are classified as Level 3 assets since our significant inputs are not observable in the marketplace. Indirect investments include primary and secondary investments in private equity funds engaged mainly in venture- and growth-oriented investing. These investments do not have readily determinable fair values. Indirect investments are valued using a methodology that is consistent with accounting guidance that allows us to estimate fair value based upon net asset value per share (or its equivalent, such as member units or an ownership interest in partners’ capital to which a proportionate share of net assets is attributed). The significant unobservable input used in estimating fair value is primarily the most recent value of the capital accounts as reported by the general partners of the funds in which we invest. Under the requirements of the Volcker Rule, we will be required to dispose of some or all of our indirect investments. As of March 31, 2015, management has not committed to a plan to sell these investments. Therefore, these investments continue to be valued using the net asset value per share methodology.

For indirect investments, management may make adjustments it deems appropriate to the net asset value if it is determined that the net asset value does not properly reflect fair value. In determining the need for an adjustment to net asset value, management performs an analysis of the private equity funds based on the independent fund manager’s valuations as well as management’s own judgment. Significant unobservable inputs used in these analyses include current fund financial information provided by the fund manager, an estimate of future proceeds expected to be received on the investment, and market multiples. Management also considers whether the independent fund manager adequately marks down an impaired investment, maintains financial statements in accordance with GAAP, or follows a practice of holding all investments at cost.

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The following table presents the fair value of our direct and indirect principal investments and related unfunded commitments at March 31, 2015, as well as financial support provided for the three months ended March 31, 2015, and March 31, 2014:

					Financial support provided
					Three months ended March 31,
	March 31, 2015				2015				2014
in millions	Fair Value		Unfunded Commitments		Funded Commitments		Funded Other		Funded Commitments		Funded Other
INVESTMENT TYPE
Direct investments (a)	$	74		—		—	$	1		—	$	1
Indirect investments (b)		301	$	57	$	2		—	$	2		—
Total	$	375	$	57	$	2	$	1	$	2	$	1

(a) Our direct investments consist of equity and debt investments directly in independent business enterprises. Operations of the business enterprises are handled by management of the portfolio company. The purpose of funding these enterprises is to provide financial support for business development and acquisition strategies. We infuse equity capital based on an initial contractual cash contribution and later from additional requests on behalf of the companies’ management.

(b) Our indirect investments consist of buyout funds, venture capital funds, and fund of funds. These investments are generally not redeemable. Instead, distributions are received through the liquidation of the underlying investments of the fund. An investment in any one of these funds typically can be sold only with the approval of the fund’s general partners. We estimate that the underlying investments of the funds will be liquidated over a period of one to nine years. The purpose of funding our capital commitments to these investments is to allow the funds to make additional follow-on investments and pay fund expenses until the fund dissolves. We, and all other investors in the fund, are obligated to fund the full amount of our respective capital commitments to the fund based on our and their respective ownership percentages, as noted in the applicable Limited Partnership Agreement.

Derivatives. Exchange-traded derivatives are valued using quoted prices and, therefore, are classified as Level 1 instruments. However, only a few types of derivatives are exchange-traded. The majority of our derivative positions are valued using internally developed models based on market convention that use observable market inputs, such as interest rate curves, yield curves, LIBOR and Overnight Index Swap (OIS) discount rates and curves, index pricing curves, foreign currency curves, and volatility surfaces (a three-dimensional graph of implied volatility against strike price and maturity). These derivative contracts, which are classified as Level 2 instruments, include interest rate swaps, certain options, cross currency swaps, and credit default swaps.

In addition, we have several customized derivative instruments and risk participations that are classified as Level 3 instruments. These derivative positions are valued using internally developed models, with inputs consisting of available market data, such as bond spreads and asset values, as well as unobservable internally derived assumptions, such as loss probabilities and internal risk ratings of customers. These derivatives are priced monthly by our Market Risk Management group using a credit valuation adjustment methodology. Swap details with the customer and our related participation percentage, if applicable, are obtained from our derivatives accounting system, which is the system of record. Applicable customer rating information is obtained from the particular loan system and represents an unobservable input to this valuation process. Using these various inputs, a valuation of these Level 3 derivatives is performed using a model that was acquired from a third party. In summary, the fair value represents an estimate of the amount that the risk participation counterparty would need to pay/receive as of the measurement date based on the probability of customer default on the swap transaction and the fair value of the underlying customer swap. Therefore, a higher loss probability and a lower credit rating would negatively affect the fair value of the risk participations and a lower loss probability and higher credit rating would positively affect the fair value of the risk participations.

Market convention implies a credit rating of “AA” equivalent in the pricing of derivative contracts, which assumes all counterparties have the same creditworthiness. To reflect the actual exposure on our derivative contracts related to both counterparty and our own creditworthiness, we record a fair value adjustment in the form of a credit valuation adjustment. The credit component is determined by individual counterparty based on the probability of default and considers master netting and collateral agreements. The credit valuation adjustment is classified as Level 3. Our Market Risk Management group is responsible for the valuation policies and procedures related to this credit valuation adjustment. A weekly reconciliation process is performed to ensure that all applicable derivative positions are covered in the calculation, which includes transmitting customer exposures and reserve reports to trading management, derivative traders and marketers, derivatives middle office, and corporate accounting personnel. On a quarterly basis, Market Risk Management prepares the credit valuation adjustment calculation, which includes a detailed reserve comparison with the previous quarter, an analysis for change in reserve, and a reserve forecast to ensure that the credit valuation adjustment recorded at period end is sufficient.

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Other assets and liabilities. The value of our short positions is driven by the valuation of the underlying securities. If quoted prices for identical securities are not available, fair value is determined by using pricing models or quoted prices of similar securities, resulting in a Level 2 classification. For the interest rate-driven products, such as government bonds, U.S. Treasury bonds and other products backed by the U.S. government, inputs include spreads, credit ratings, and interest rates. For the credit-driven products, such as corporate bonds and mortgage-backed securities, inputs include actual trade data for comparable assets and bids and offers.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

Certain assets and liabilities are measured at fair value on a recurring basis in accordance with GAAP. The following tables present these assets and liabilities at March 31, 2015, December 31, 2014, and March 31, 2014.

March 31, 2015
in millions	Level 1		Level 2		Level 3		Total
ASSETS MEASURED ON A RECURRING BASIS
Trading account assets:
U.S. Treasury, agencies and corporations		—	$	668		—	$	668
States and political subdivisions		—		35		—		35
Collateralized mortgage obligations		—		—		—		—
Other mortgage-backed securities		—		51		—		51
Other securities	$	5		25		—		30
Total trading account securities		5		779		—		784
Commercial loans		—		5		—		5
Total trading account assets		5		784		—		789
Securities available for sale:
States and political subdivisions		—		22		—		22
Collateralized mortgage obligations		—		11,163		—		11,163
Other mortgage-backed securities		—		1,902		—		1,902
Other securities		23		—	$	10		33
Total securities available for sale		23		13,087		10		13,120
Other investments:
Principal investments:
Direct		1		—		73		74
Indirect		—		—		301		301
Total principal investments		1		—		374		375
Equity and mezzanine investments:
Direct		—		—		—		—
Indirect		—		—		9		9
Total equity and mezzanine investments		—		—		9		9
Total other investments		1		—		383		384
Derivative assets:
Interest rate		—		1,034		10		1,044
Foreign exchange		164		8		—		172
Commodity		—		581		—		581
Credit		—		2		3		5
Derivative assets		164		1,625		13		1,802
Netting adjustments (a)		—		—		—		(1,071	)
Total derivative assets		164		1,625		13		731
Accrued income and other assets		—		2		—		2
Total assets on a recurring basis at fair value	$	193	$	15,498	$	406	$	15,026
LIABILITIES MEASURED ON A RECURRING BASIS
Bank notes and other short-term borrowings:
Short positions		—	$	607		—	$	607
Derivative liabilities:
Interest rate		—		692		—		692
Foreign exchange	$	138		9		—		147
Commodity		—		567		—		567
Credit		—		6	$	1		7
Derivative liabilities		138		1,274		1		1,413
Netting adjustments (a)		—		—		—		(588	)
Total derivative liabilities		138		1,274		1		825
Accrued expense and other liabilities		—		2		—		2
Total liabilities on a recurring basis at fair value	$	138	$	1,883	$	1	$	1,434

(a) Netting adjustments represent the amounts recorded to convert our derivative assets and liabilities from a gross basis to a net basis in accordance with applicable accounting guidance. The net basis takes into account the impact of bilateral collateral and master netting agreements that allow us to settle all derivative contracts with a single counterparty on a net basis and to offset the net derivative position with the related cash collateral. Total derivative assets and liabilities include these netting adjustments.

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December 31, 2014
in millions	Level 1		Level 2		Level 3		Total
ASSETS MEASURED ON A RECURRING BASIS
Trading account assets:
U.S. Treasury, agencies and corporations		—	$	555		—	$	555
States and political subdivisions		—		38		—		38
Collateralized mortgage obligations		—		—		—		—
Other mortgage-backed securities		—		124		—		124
Other securities	$	2		29		—		31
Total trading account securities		2		746		—		748
Commercial loans		—		2		—		2
Total trading account assets		2		748		—		750
Securities available for sale:
States and political subdivisions		—		23		—		23
Collateralized mortgage obligations		—		11,270		—		11,270
Other mortgage-backed securities		—		2,035		—		2,035
Other securities		22		—	$	10		32
Total securities available for sale		22		13,328		10		13,360
Other investments:
Principal investments:
Direct		2		—		102		104
Indirect		—		—		302		302
Total principal investments		2		—		404		406
Equity and mezzanine investments:
Direct		—		—		—		—
Indirect		—		—		10		10
Total equity and mezzanine investments		—		—		10		10
Total other investments		2		—		414		416
Derivative assets:
Interest rate		—		924		13		937
Foreign exchange		91		2		—		93
Commodity		—		608		—		608
Credit		—		2		3		5
Derivative assets		91		1,536		16		1,643
Netting adjustments (a)		—		—		—		(1,034	)
Total derivative assets		91		1,536		16		609
Accrued income and other assets		—		—		—		—
Total assets on a recurring basis at fair value	$	117	$	15,612	$	440	$	15,135
LIABILITIES MEASURED ON A RECURRING BASIS
Bank notes and other short-term borrowings:
Short positions		—	$	423		—	$	423
Derivative liabilities:
Interest rate		—		644		—		644
Foreign exchange	$	77		4		—		81
Commodity		—		594		—		594
Credit		—		6	$	1		7
Derivative liabilities		77		1,248		1		1,326
Netting adjustments (a)		—		—		—		(542	)
Total derivative liabilities		77		1,248		1		784
Accrued expense and other liabilities		—		—		—		—
Total liabilities on a recurring basis at fair value	$	77	$	1,671	$	1	$	1,207

(a) Netting adjustments represent the amounts recorded to convert our derivative assets and liabilities from a gross basis to a net basis in accordance with applicable accounting guidance. The net basis takes into account the impact of bilateral collateral and master netting agreements that allow us to settle all derivative contracts with a single counterparty on a net basis and to offset the net derivative position with the related cash collateral. Total derivative assets and liabilities include these netting adjustments.

38

March 31, 2014
in millions	Level 1		Level 2		Level 3		Total
ASSETS MEASURED ON A RECURRING BASIS
Trading account assets:
U.S. Treasury, agencies and corporations		—	$	533		—	$	533
States and political subdivisions		—		46		—		46
Collateralized mortgage obligations		—		9		—		9
Other mortgage-backed securities		—		199		—		199
Other securities	$	4		47		—		51
Total trading account securities		4		834		—		838
Commercial loans		—		2		—		2
Total trading account assets		4		836		—		840
Securities available for sale:
States and political subdivisions		—		37		—		37
Collateralized mortgage obligations		—		10,469		—		10,469
Other mortgage-backed securities		—		1,832		—		1,832
Other securities		21		—		—		21
Total securities available for sale		21		12,338		—		12,359
Other investments:
Principal investments:
Direct		—		—	$	141		141
Indirect		—		—		403		403
Total principal investments		—		—		544		544
Equity and mezzanine investments:
Direct		—		—		—		—
Indirect		—		—		20		20
Total equity and mezzanine investments		—		—		20		20
Total other investments		—		—		564		564
Derivative assets:
Interest rate		—		943		22		965
Foreign exchange		51		9		—		60
Commodity		—		110		—		110
Credit		—		1		4		5
Derivative assets		51		1,063		26		1,140
Netting adjustments (a)		—		—		—		(713	)
Total derivative assets		51		1,063		26		427
Accrued income and other assets		—		—		—		—
Total assets on a recurring basis at fair value	$	76	$	14,237	$	590	$	14,190
LIABILITIES MEASURED ON A RECURRING BASIS
Bank notes and other short-term borrowings:
Short positions	$	3	$	460		—	$	463
Derivative liabilities:
Interest rate		—		687		—		687
Foreign exchange		43		9		—		52
Commodity		—		105		—		105
Credit		—		11	$	1		12
Derivative liabilities		43		812		1		856
Netting adjustments (a)		—		—		—		(448	)
Total derivative liabilities		43		812		1		408
Accrued expense and other liabilities		—		—		—		—
Total liabilities on a recurring basis at fair value	$	46	$	1,272	$	1	$	871

(a) Netting adjustments represent the amounts recorded to convert our derivative assets and liabilities from a gross basis to a net basis in accordance with applicable accounting guidance. The net basis takes into account the impact of bilateral collateral and master netting agreements that allow us to settle all derivative contracts with a single counterparty on a net basis and to offset the net derivative position with the related cash collateral. Total derivative assets and liabilities include these netting adjustments.

39

Changes in Level 3 Fair Value Measurements

The following table shows the change in the fair values of our Level 3 financial instruments for the three months ended March 31, 2015, and March 31, 2014. We mitigate the credit risk, interest rate risk, and risk of loss related to many of these Level 3 instruments by using securities and derivative positions classified as Level 1 or Level 2. Level 1 and Level 2 instruments are not included in the following table. Therefore, the gains or losses shown do not include the impact of our risk management activities.

in millions	Beginning of Period Balance		Gains (Losses) Included in Earnings			Purchases		Sales			Settlements		Transfers into Level 3 (d)			Transfers out of Level 3 (d)			End of Period Balance (f)		Unrealized Gains (Losses) Included in Earnings
March 31, 2015
Securities available for sale
Other securities	$	10		—			—		—			—		—			—		$	10		—
Other investments
Principal investments
Direct		102	$	13	(b)	$	1	$	(43	)		—		—			—			73	$	—
Indirect		302		17	(b)		1		(19	)		—		—			—			301		(8	) (b)
Equity and mezzanine investments
Direct		—		2	(b)		—		(2	)		—		—			—			—		2	(b)
Indirect		10		(1	) (b)		—		—			—		—			—			9		(1	) (b)
Derivative instruments (a)
Interest rate		13		2	(c)		—		—			—		—		$	(5	) (e)		10		—
Commodity		—		—			—		—			—		—			—			—		—
Credit		2		(3	) (c)		—		—		$	3		—			—			2		—
in millions	Beginning of Period Balance		Gains (Losses) Included in Earnings			Purchases		Sales			Settlements		Transfers into Level 3 (d)			Transfers out of Level 3 (d)			End of Period Balance (f)		Unrealized Gains (Losses) Included in Earnings
March 31, 2014
Other investments
Principal investments
Direct	$	141	$	4	(b)		—	$	(4	)		—		—			—		$	141	$	6	(b)
Indirect		413		20	(b)	$	1		(31	)		—		—			—			403		9	(b)
Equity and mezzanine investments
Direct		—		—			—		—			—		—			—			—		—
Indirect		23		(1	) (b)		—		(2	)				—			—			20		(1	) (b)
Derivative instruments (a)
Interest rate		25		1	(c)		2		(1	)		—	$	3	(e)	$	(8	) (e)		22		—
Commodity		—		—			—		—			—		—			—			—		—
Credit		3		(2	) (c)		—		—		$	2		—			—			3		—

(a) Amounts represent Level 3 derivative assets less Level 3 derivative liabilities.

(b) Realized and unrealized gains and losses on principal investments are reported in “net gains (losses) from principal investing” on the income statement. Realized and unrealized losses on private equity and mezzanine investments are reported in “other income” on the income statement.

(c) Realized and unrealized gains and losses on derivative instruments are reported in “corporate services income” and “other income” on the income statement.

(d) Our policy is to recognize transfers into and transfers out of Level 3 as of the end of the reporting period.

(e) Certain derivatives previously classified as Level 2 were transferred to Level 3 because Level 3 unobservable inputs became significant. Certain derivatives previously classified as Level 3 were transferred to Level 2 because Level 3 unobservable inputs became less significant.

(f) There were no issuances for the three-month periods ended March 31, 2015, and March 31, 2014.

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Assets Measured at Fair Value on a Nonrecurring Basis

Certain assets and liabilities are measured at fair value on a nonrecurring basis in accordance with GAAP. The adjustments to fair value generally result from the application of accounting guidance that requires assets and liabilities to be recorded at the lower of cost or fair value, or assessed for impairment. The following table presents our assets measured at fair value on a nonrecurring basis at March 31, 2015, December 31, 2014, and March 31, 2014:

	March 31, 2015
in millions	Level 1		Level 2		Level 3		Total
ASSETS MEASURED ON A NONRECURRING BASIS
Impaired loans		—		—	$	15	$	15
Loans held for sale (a)		—		—		—		—
Accrued income and other assets		—		—		18		18
Total assets on a nonrecurring basis at fair value		—		—	$	33	$	33
	December 31, 2014
in millions	Level 1		Level 2		Level 3		Total
ASSETS MEASURED ON A NONRECURRING BASIS
Impaired loans		—		—	$	5	$	5
Loans held for sale (a)		—		—		—		—
Accrued income and other assets		—		—		13		13
Total assets on a nonrecurring basis at fair value		—		—	$	18	$	18
	March 31, 2014
in millions	Level 1		Level 2		Level 3		Total
ASSETS MEASURED ON A NONRECURRING BASIS
Impaired loans		—		—	$	1	$	1
Loans held for sale (a)		—		—		—		—
Accrued income and other assets		—		—		13		13
Total assets on a nonrecurring basis at fair value		—		—	$	14	$	14

(a) During the first quarter of 2015, we transferred $10 million of commercial and consumer loans and leases at their current fair value from held-for-sale status to the held-to-maturity portfolio, compared to $11 million during 2014, and $2 million during the first quarter of 2014.

Impaired loans. We typically adjust the carrying amount of our impaired loans when there is evidence of probable loss and the expected fair value of the loan is less than its contractual amount. The amount of the impairment may be determined based on the estimated present value of future cash flows, the fair value of the underlying collateral, or the loan’s observable market price. Impaired loans with a specifically allocated allowance based on cash flow analysis or the value of the underlying collateral are classified as Level 3 assets. Impaired loans with a specifically allocated allowance based on an observable market price that reflects recent sale transactions for similar loans and collateral are classified as Level 2 assets.

The evaluations for impairment are prepared by the responsible relationship managers in our Asset Recovery Group and are reviewed and approved by the Asset Recovery Group Executive. The Asset Recovery Group is part of the Risk Management Group and reports to our Chief Credit Officer. These evaluations are performed in conjunction with the quarterly ALLL process.

Loans are evaluated for impairment on a quarterly basis. Loans included in the previous quarter’s review are re-evaluated and if their values have changed materially, the underlying information (loan balance and in most cases, collateral value) is compared. Material differences are evaluated for reasonableness, and the relationship managers and their senior managers consider these differences and determine if any adjustment is necessary. The inputs are developed and substantiated on a quarterly basis based on current borrower developments, market conditions, and collateral values.

The following two internal methods are used to value impaired loans:

• Cash flow analysis considers internally developed inputs, such as discount rates, default rates, costs of foreclosure, and changes in collateral values.

41

• The fair value of the collateral, which may take the form of real estate or personal property, is based on internal estimates, field observations, and assessments provided by third-party appraisers. We perform or reaffirm appraisals of collateral-dependent impaired loans at least annually. Appraisals may occur more frequently if the most recent appraisal does not accurately reflect the current market, the debtor is seriously delinquent or chronically past due, or there has been a material deterioration in the performance of the project or condition of the property. Adjustments to outdated appraisals that result in an appraisal value less than the carrying amount of a collateral-dependent impaired loan are reflected in the ALLL.

Impairment valuations are back-tested each quarter, based on a look-back of actual incurred losses on closed deals previously evaluated for impairment. The overall percent variance of actual net loan charge-offs on closed deals compared to the specific allocations on such deals is considered in determining each quarter’s specific allocations.

Loans held for sale. Through a quarterly analysis of our loan portfolios held for sale, which include both performing and nonperforming loans, we determine any adjustments necessary to record the portfolios at the lower of cost or fair value in accordance with GAAP. Our analysis concluded that there were no loans held for sale adjusted to fair value at March 31, 2015, December 31, 2014, or March 31, 2014.

Market inputs, including updated collateral values, and reviews of each borrower’s financial condition influenced the inputs used in our internal models and other valuation methodologies. The valuations are prepared by the responsible relationship managers or analysts in our Asset Recovery Group and are reviewed and approved by the Asset Recovery Group Executive. Actual gains or losses realized on the sale of various loans held for sale provide a back-testing mechanism for determining whether our valuations of these loans held for sale that are adjusted to fair value are appropriate.

Valuations of performing commercial mortgage and construction loans held for sale are conducted using internal models that rely on market data from sales or nonbinding bids on similar assets, including credit spreads, treasury rates, interest rate curves, and risk profiles. These internal models also rely on our own assumptions about the exit market for the loans and details about individual loans within the respective portfolios. Therefore, we classify these loans as Level 3 assets. The inputs related to our assumptions and other internal loan data include changes in real estate values, costs of foreclosure, prepayment rates, default rates, and discount rates.

Valuations of nonperforming commercial mortgage and construction loans held for sale are based on current agreements to sell the loans or approved discounted payoffs. If a negotiated value is not available, we use third-party appraisals, adjusted for current market conditions. Since valuations are based on unobservable data, these loans are classified as Level 3 assets.

Direct financing leases and operating lease assets held for sale. Our KEF Accounting and Capital Markets groups are responsible for the valuation policies and procedures related to these assets. The Managing Director of the KEF Capital Markets group reports to the President of the KEF line of business. A weekly report is distributed to both groups that lists all equipment finance deals booked in the warehouse portfolio. On a quarterly basis, the KEF Accounting group prepares a detailed held-for-sale roll-forward schedule that is reconciled to the general ledger and the above mentioned weekly report. KEF management uses the held-for-sale roll-forward schedule to determine if an impairment adjustment is necessary in accordance with lower of cost or fair value guidelines.

Valuations of direct financing leases and operating lease assets held for sale are performed using an internal model that relies on market data, such as swap rates and bond ratings, as well as our own assumptions about the exit market for the leases and details about the individual leases in the portfolio. The inputs based on our assumptions include changes in the value of leased items and internal credit ratings. These leases have been classified as Level 3 assets. KEF has master sale and assignment agreements with numerous institutional investors. Historically, multiple quotes are obtained, with the most reasonable formal quotes retained. These nonbinding quotes generally lead to a sale to one of the parties who provided the quote. Leases for which we receive a current nonbinding bid, and the sale is considered probable, may be classified as Level 2. The validity of these quotes is supported by historical and continued dealings with these institutions that have fulfilled the nonbinding quote in the past. In a distressed market where market data is not available, an estimate of the fair value of the leased asset may be used to value the lease, resulting in a Level 3 classification. In an inactive market, the market value of the assets held for sale is determined as the present value of the future cash flows discounted at the current buy rate. KEF Accounting calculates an estimated fair value buy rate based on the credit premium inherent in the relevant bond index and the appropriate swap rate on the measurement date. The amount of the adjustment is calculated as book value minus the present value of future cash flows discounted at the calculated buy rate.

42

Goodwill and other intangible assets. On a quarterly basis, we review impairment indicators to determine whether we need to evaluate the carrying amount of goodwill and other intangible assets assigned to Key Community Bank and Key Corporate Bank. We also perform an annual impairment test for goodwill. Accounting guidance permits an entity to first assess qualitative factors to determine whether additional goodwill impairment testing is required. However, we did not choose to utilize a qualitative assessment in our annual goodwill impairment testing performed during the fourth quarter of 2014. Fair value of our reporting units is determined using both an income approach (discounted cash flow method) and a market approach (using publicly traded company and recent transactions data), which are weighted equally.

Inputs used include market-available data, such as industry, historical, and expected growth rates, and peer valuations, as well as internally driven inputs, such as forecasted earnings and market participant insights. Since this valuation relies on a significant number of unobservable inputs, we have classified goodwill as Level 3. We use a third-party valuation services provider to perform the annual, and if necessary, any interim, Step 1 valuation process, and to perform a Step 2 analysis, if needed, on our reporting units. Annual and any interim valuations prepared by the third-party valuation services provider are reviewed by the appropriate individuals within Key to ensure that the assumptions used in preparing the analysis are appropriate and properly supported. For additional information on the results of recent goodwill impairment testing, see Note 10 (“Goodwill and Other Intangible Assets”) beginning on page 173 of our 2014 Form 10-K.

The fair value of other intangible assets is calculated using a cash flow approach. While the calculation to test for recoverability uses a number of assumptions that are based on current market conditions, the calculation is based primarily on unobservable assumptions. Accordingly, these assets are classified as Level 3. Our lines of business, with oversight from our Accounting group, are responsible for routinely, at least quarterly, assessing whether impairment indicators are present. All indicators that signal impairment may exist are appropriately considered in this analysis. An impairment loss is only recognized for a held-and-used long-lived asset if the sum of its estimated future undiscounted cash flows used to test for recoverability is less than its carrying value.

Our primary assumptions include attrition rates, alternative costs of funds, and rates paid on deposits. For additional information on the results of other intangible assets impairment testing, see Note 10 (“Goodwill and Other Intangible Assets”) beginning on page 173 of our 2014 Form 10-K.

Other assets. OREO and other repossessed properties are valued based on inputs such as appraisals and third-party price opinions, less estimated selling costs. Generally, we classify these assets as Level 3, but OREO and other repossessed properties for which we receive binding purchase agreements are classified as Level 2. Returned lease inventory is valued based on market data for similar assets and is classified as Level 2. Assets that are acquired through, or in lieu of, loan foreclosures are recorded initially as held for sale at fair value less estimated selling costs at the date of foreclosure. After foreclosure, valuations are updated periodically, and current market conditions may require the assets to be marked down further to a new cost basis.

• Commercial Real Estate Valuation Process: When a loan is reclassified from loan status to OREO because we took possession of the collateral, the Asset Recovery Group Loan Officer, in consultation with our OREO group, obtains a broker price opinion or a third-party appraisal, which is used to establish the fair value of the underlying collateral. The determined fair value of the underlying collateral less estimated selling costs becomes the carrying value of the OREO asset. In addition to valuations from independent third-party sources, our OREO group also writes down the carrying balance of OREO assets once a bona fide offer is contractually accepted, where the accepted price is lower than the current balance of the particular OREO asset. The fair value of OREO property is re-evaluated every 90 days and the OREO asset is adjusted as necessary.

• Consumer Real Estate Valuation Process: The Asset Management team within our Risk Operations group is responsible for valuation policies and procedures in this area. The current vendor partner provides monthly reporting of all broker price opinion evaluations, appraisals, and the monthly market plans. Market plans are reviewed monthly, and valuations are reviewed and tested monthly to ensure proper pricing has been established and guidelines are being met. Risk Operations Compliance validates and provides periodic testing of the valuation process. The Asset Management team reviews changes in fair value measurements. Third-party broker price opinions are reviewed every 180 days, and the fair value is written down based on changes to the valuation. External factors are documented and monitored as appropriate.

43

Quantitative Information about Level 3 Fair Value Measurements

The range and weighted-average of the significant unobservable inputs used to fair value our material Level 3 recurring and nonrecurring assets at March 31, 2015, December 31, 2014, and March 31, 2014, along with the valuation techniques used, are shown in the following table:

March 31, 2015	Fair Value of			Significant	Range
dollars in millions	Level 3 Assets		Valuation Technique	Unobservable Input	(Weighted-Average)
Recurring
Other investments — principal investments — direct:	$	73	Individual analysis of the condition of each investment
Debt instruments				EBITDA multiple		5.40 - 6.00 (5.50)
Equity instruments of private companies				EBITDA multiple (where applicable)		N/A (6.00)
				Revenue multiple (where applicable)		N/A (4.30)
Nonrecurring
Impaired loans		15	Fair value of underlying collateral	Discount		00.00 - 100.00% (36.00%)
Goodwill		1,057	Discounted cash flow and market data	Earnings multiple of peers		11.40 - 15.90 (12.92)
				Equity multiple of peers		1.20 - 1.22 (1.21)
				Control premium		10.00 - 30.00% (19.70%)
				Weighted-average cost of capital		13.00 - 14.00% (13.52%)
December 31, 2014 dollars in millions	Fair Value of Level 3 Assets		Valuation Technique	Significant Unobservable Input	Range (Weighted-Average)
Recurring
Other investments — principal investments — direct:	$	102	Individual analysis of the condition of each investment
Debt instruments				EBITDA multiple		5.40 - 6.00 (5.50)
Equity instruments of private companies				EBITDA multiple (where applicable)		5.50 - 6.20 (5.80)
				Revenue multiple (where applicable)		4.30 - 4.30 (4.30)
Nonrecurring
Impaired loans		5	Fair value of underlying collateral	Discount		10.00 - 64.00% (62.00%)
Goodwill		1,057	Discounted cash flow and market data	Earnings multiple of peers		11.40 - 15.90 (12.92)
				Equity multiple of peers		1.20 - 1.22 (1.21)
				Control premium		10.00 - 30.00% (19.70%)
				Weighted-average cost of capital		13.00 - 14.00% (13.52%)
March 31, 2014	Fair Value of			Significant	Range
dollars in millions	Level 3 Assets		Valuation Technique	Unobservable Input	(Weighted-Average)
Recurring
Other investments — principal investments — direct:	$	141	Individual analysis of the condition of each investment
Debt instruments				EBITDA multiple		5.40 - 6.00 (5.90)
Equity instruments of private companies				EBITDA multiple (where applicable)		4.90 - 10.00 (5.90)
				Revenue multiple (where applicable)		0.80 - 4.50 (4.10)
Nonrecurring
Impaired loans		1	Fair value of underlying collateral	Discount		0.00 - 80.00% (25.00%)
Goodwill		979	Discounted cash flow and market data	Earnings multiple of peers		10.10 - 14.40 (11.59)
				Equity multiple of peers		1.17 - 1.29 (1.24)
				Control premium		N/A (35.00 %)
				Weighted-average cost of capital		N/A (13.00%)

44

Fair Value Disclosures of Financial Instruments

The levels in the fair value hierarchy ascribed to our financial instruments and the related carrying amounts at March 31, 2015, December 31, 2014 and March 31, 2014, are shown in the following table.

	March 31, 2015
			Fair Value
in millions	Carrying Amount		Level 1		Level 2		Level 3		Netting Adjustment			Total
ASSETS
Cash and short-term investments (a)	$	3,884	$	3,884		—		—		—		$	3,884
Trading account assets (b)		789		5	$	784		—		—			789
Securities available for sale (b)		13,120		23		13,087	$	10		—			13,120
Held-to-maturity securities (c)		5,005		—		5,003		—		—			5,003
Other investments (b)		730		1		346		383		—			730
Loans, net of allowance (d)		57,159		—		—		55,702		—			55,702
Loans held for sale (b)		1,649		—		—		1,649		—			1,649
Derivative assets (b)		731		164		1,625		13	$	(1,071	) (f)		731
LIABILITIES
Deposits with no stated maturity (a)	$	65,984		—	$	65,984		—		—		$	65,984
Time deposits (e)		5,638	$	488		5,210		—		—			5,698
Short-term borrowings (a)		1,125		—		1,125		—		—			1,125
Long-term debt (e)		8,713		8,559		549		—		—			9,108
Derivative liabilities (b)		825		138		1,274	$	1	$	(588	) (f)		825
	December 31, 2014
			Fair Value
in millions	Carrying Amount		Level 1		Level 2		Level 3		Netting Adjustment			Total
ASSETS
Cash and short-term investments (a)	$	4,922	$	4,922		—		—		—		$	4,922
Trading account assets (b)		750		2	$	748		—		—			750
Securities available for sale (b)		13,360		22		13,328	$	10		—			13,360
Held-to-maturity securities (c)		5,015		—		4,974		—		—			4,974
Other investments (b)		760		2		344		414		—			760
Loans, net of allowance (d)		56,587		—		—		54,993		—			54,993
Loans held for sale (b)		734		—		—		734		—			734
Derivative assets (b)		609		91		1,536		16	$	(1,034	) (f)		609
LIABILITIES
Deposits with no stated maturity (a)	$	66,135		—	$	66,135		—		—		$	66,135
Time deposits (e)		5,863	$	564		5,361		—		—			5,925
Short-term borrowings (a)		998		—		998		—		—			998
Long-term debt (e)		7,875		7,625		626		—		—			8,251
Derivative liabilities (b)		784		77		1,248	$	1	$	(542	) (f)		784
	March 31, 2014
			Fair Value
in millions	Carrying Amount		Level 1		Level 2		Level 3		Netting Adjustment			Total
ASSETS
Cash and short-term investments (a)	$	3,331	$	3,331		—		—		—		$	3,331
Trading account assets (b)		840		4	$	836		—		—			840
Securities available for sale (b)		12,359		21		12,338		—		—			12,359
Held-to-maturity securities (c)		4,826		—		4,733		—		—			4,733
Other investments (b)		899		—		335	$	564		—			899
Loans, net of allowance (d)		54,611		—		—		53,211		—			53,211
Loans held for sale (b)		401		—		—		401		—			401
Derivative assets (b)		427		51		1,063		26	$	(713	) (f)		427
LIABILITIES
Deposits with no stated maturity (a)	$	60,130		—	$	60,130		—		—		$	60,130
Time deposits (e)		7,136	$	617		6,599		—		—			7,216
Short-term borrowings (a)		1,181		3		1,178		—		—			1,181
Long-term debt (e)		7,712		7,610		459		—		—			8,069
Derivative liabilities (b)		408		43		812	$	1	$	(448	) (f)		408

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Valuation Methods and Assumptions

(a) Fair value equals or approximates carrying amount. The fair value of deposits with no stated maturity does not take into consideration the value ascribed to core deposit intangibles.

(b) Information pertaining to our methodology for measuring the fair values of these assets and liabilities is included in the sections entitled “Qualitative Disclosures of Valuation Techniques” and “Assets Measured at Fair Value on a Nonrecurring Basis” in this note.

(c) Fair values of held-to-maturity securities are determined by using models that are based on security-specific details, as well as relevant industry and economic factors. The most significant of these inputs are quoted market prices, interest rate spreads on relevant benchmark securities, and certain prepayment assumptions. We review the valuations derived from the models to ensure they are reasonable and consistent with the values placed on similar securities traded in the secondary markets.

(d) The fair value of loans is based on the present value of the expected cash flows. The projected cash flows are based on the contractual terms of the loans, adjusted for prepayments and use of a discount rate based on the relative risk of the cash flows, taking into account the loan type, maturity of the loan, liquidity risk, servicing costs, and a required return on debt and capital. In addition, an incremental liquidity discount is applied to certain loans, using historical sales of loans during periods of similar economic conditions as a benchmark. The fair value of loans includes lease financing receivables at their aggregate carrying amount, which is equivalent to their fair value.

(e) Fair values of time deposits and long-term debt are based on discounted cash flows utilizing relevant market inputs.

(f) Netting adjustments represent the amounts recorded to convert our derivative assets and liabilities from a gross basis to a net basis in accordance with applicable accounting guidance. The net basis takes into account the impact of bilateral collateral and master netting agreements that allow us to settle all derivative contracts with a single counterparty on a net basis and to offset the net derivative position with the related cash collateral. Total derivative assets and liabilities include these netting adjustments.

We use valuation methods based on exit market prices in accordance with applicable accounting guidance. We determine fair value based on assumptions pertaining to the factors that a market participant would consider in valuing the asset. A substantial portion of our fair value adjustments are related to liquidity. During 2014 and the first quarter of 2015, the fair values of our loan portfolios have generally remained stable, primarily due to increasing liquidity in the loan markets. If we were to use different assumptions, the fair values shown in the preceding table could change. Also, because the applicable accounting guidance for financial instruments excludes certain financial instruments and all nonfinancial instruments from its disclosure requirements, the fair value amounts shown in the table above do not, by themselves, represent the underlying value of our company as a whole.

Education lending business. The discontinued education lending business consists of assets and liabilities (recorded at fair value) in the securitization trusts, as well as loans in portfolio (recorded at fair value), and loans in portfolio (recorded at carrying value with appropriate valuation reserves) that are outside the trusts. All of these loans were excluded from the table above as follows:

• Loans at carrying value, net of allowance, of $2.0 billion ($1.7 billion at fair value) at March 31, 2015, $2.1 billion ($1.8 billion at fair value) at December 31, 2014, and $2.3 billion ($1.9 billion at fair value) at March 31, 2014;

• Portfolio loans at fair value of $187 million at March 31, 2015, $191 million at December 31, 2014, and $143 million at March 31, 2014; and

• Loans in the trusts at fair value of $1.9 billion at March 31, 2014.

Securities issued by the education lending securitization trusts, which are the primary liabilities of the trusts, totaling $1.8 billion in fair value at March 31, 2014, are also excluded from the above table.

These loans and securities are classified as Level 3 because we rely on unobservable inputs when determining fair value since observable market data is not available.

On September 30, 2014, we sold the residual interests in all of our outstanding education loan securitization trusts to a third party. With that transaction, in accordance with the applicable accounting guidance, we deconsolidated the securitization trusts and removed the trust assets and liabilities from our balance sheet at September 30, 2014. Additional information regarding the sale of the residual interests and deconsolidation of the securitization trusts is provided in Note 11 (“Acquisitions and Discontinued Operations”).

Residential real estate mortgage loans. Residential real estate mortgage loans with carrying amounts of $2.2 billion at March 31, 2015, December 31, 2014, and March 31, 2014, are included in “Loans, net of allowance” in the previous table.

Short-term financial instruments. For financial instruments with a remaining average life to maturity of less than six months, carrying amounts were used as an approximation of fair values.

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6. Securities

Securities available for sale. These are securities that we intend to hold for an indefinite period of time but that may be sold in response to changes in interest rates, prepayment risk, liquidity needs or other factors. Securities available for sale are reported at fair value. Unrealized gains and losses (net of income taxes) deemed temporary are recorded in equity as a component of AOCI on the balance sheet. Unrealized losses on equity securities deemed to be “other-than-temporary,” and realized gains and losses resulting from sales of securities using the specific identification method, are included in “other income” on the income statement. Unrealized losses on debt securities deemed to be “other-than-temporary” are included in “other income” on the income statement or in AOCI in accordance with the applicable accounting guidance related to the recognition of OTTI of debt securities.

“Other securities” held in the available-for-sale portfolio consist of marketable equity securities that are traded on a public exchange such as the NYSE or NASDAQ and convertible preferred stock of a privately held company.

Held-to-maturity securities. These are debt securities that we have the intent and ability to hold until maturity. Debt securities are carried at cost and adjusted for amortization of premiums and accretion of discounts using the interest method. This method produces a constant rate of return on the adjusted carrying amount.

“Other securities” held in the held-to-maturity portfolio consist of foreign bonds and capital securities.

Unrealized losses on equity securities deemed to be “other-than-temporary,” and realized gains and losses resulting from sales of securities using the specific identification method, are included in “other income” on the income statement. Unrealized losses on debt securities deemed to be “other-than-temporary” are included in “other income” on the income statement or in AOCI in accordance with the applicable accounting guidance related to the recognition of OTTI of debt securities.

The amortized cost, unrealized gains and losses, and approximate fair value of our securities available for sale and held-to-maturity securities are presented in the following tables. Gross unrealized gains and losses represent the difference between the amortized cost and the fair value of securities on the balance sheet as of the dates indicated. Accordingly, the amount of these gains and losses may change in the future as market conditions change.

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	March 31, 2015
in millions	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
SECURITIES AVAILABLE FOR SALE
States and political subdivisions	$	21	$	1		—	$	22
Collateralized mortgage obligations		11,116		124	$	77		11,163
Other mortgage-backed securities		1,870		32		—		1,902
Other securities		30		3		—		33
Total securities available for sale	$	13,037	$	160	$	77	$	13,120
HELD-TO-MATURITY SECURITIES
Collateralized mortgage obligations	$	4,749	$	26	$	30	$	4,745
Other mortgage-backed securities		234		2		—		236
Other securities		22		—		—		22
Total held-to-maturity securities	$	5,005	$	28	$	30	$	5,003
	December 31, 2014
in millions	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
SECURITIES AVAILABLE FOR SALE
States and political subdivisions	$	22	$	1		—	$	23
Collateralized mortgage obligations		11,310		96	$	136		11,270
Other mortgage-backed securities		2,004		32		1		2,035
Other securities		29		3		—		32
Total securities available for sale	$	13,365	$	132	$	137	$	13,360
HELD-TO-MATURITY SECURITIES
Collateralized mortgage obligations	$	4,755	$	15	$	57	$	4,713
Other mortgage-backed securities		240		1		—		241
Other securities		20		—		—		20
Total held-to-maturity securities	$	5,015	$	16	$	57	$	4,974
	March 31, 2014
in millions	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
SECURITIES AVAILABLE FOR SALE
States and political subdivisions	$	37		—		—	$	37
Collateralized mortgage obligations		10,541	$	136	$	208		10,469
Other mortgage-backed securities		1,817		25		10		1,832
Other securities		17		4		—		21
Total securities available for sale	$	12,412	$	165	$	218	$	12,359
HELD-TO-MATURITY SECURITIES
Collateralized mortgage obligations	$	4,806	$	9	$	102	$	4,713
Other securities		20		—		—		20
Total held-to-maturity securities	$	4,826	$	9	$	102	$	4,733

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The following table summarizes our securities that were in an unrealized loss position as of March 31, 2015, December 31, 2014, and March 31, 2014.

	Duration of Unrealized Loss Position
	Less than 12 Months				12 Months or Longer				Total
in millions	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
March 31, 2015
Securities available for sale:
Collateralized mortgage obligations	$	1,722	$	25	$	2,722	$	52	$	4,444	$	77
Other mortgage-backed securities (a)		39		—		—		—		39		—
Other securities (b)		3		—		2		—		5		—
Held-to-maturity:
Collateralized mortgage obligations		637		8		1,348		22		1,985		30
Other securities (c)		4		—		—		—		4		—
Total temporarily impaired securities	$	2,405	$	33	$	4,072	$	74	$	6,477	$	107
December 31, 2014
Securities available for sale:
Collateralized mortgage obligations	$	3,019	$	52	$	2,932	$	84	$	5,951	$	136
Other mortgage-backed securities		—		—		78		1		78		1
Other securities (b)		4		—		2		—		6		—
Held-to-maturity:
Collateralized mortgage obligations		1,005		11		1,994		46		2,999		57
Total temporarily impaired securities	$	4,028	$	63	$	5,006	$	131	$	9,034	$	194
March 31, 2014
Securities available for sale:
Collateralized mortgage obligations	$	4,401	$	173	$	678	$	35	$	5,079	$	208
Other mortgage-backed securities		1,153		10		—		—		1,153		10
Other securities (b)		—		—		2		—		2		—
Held-to-maturity:
Collateralized mortgage obligations		3,139		92		200		10		3,339		102
Other securities (c)		—		—		—		—		—		—
Total temporarily impaired securities	$	8,693	$	275	$	880	$	45	$	9,573	$	320

(a) Gross unrealized losses totaled less than $1 million for other mortgage-backed securities available sale for the three-month period ended March 31, 2015.

(b) Gross unrealized losses totaled less than $1 million for other securities available sale for the three-month period ended March 31, 2015, the year ended December 31, 2014, and the three-month period ended March 31, 2014.

(c) Gross unrealized losses totaled less than $1 million for other securities held-to-maturity for the three-month periods ended March 31, 2015, and March 31, 2014.

At March 31, 2015, we had $77 million of gross unrealized losses related to 56 fixed-rate CMOs that we invested in as part of our overall A/LM strategy. These securities had a weighted-average maturity of 3.9 years at March 31, 2015. Since these securities have a fixed interest rate, their fair value is sensitive to movements in market interest rates. These unrealized losses are considered temporary since we expect to collect all contractually due amounts from these securities. Accordingly, these investments were reduced to their fair value through OCI, not earnings.

We regularly assess our securities portfolio for OTTI. The assessments are based on the nature of the securities, the underlying collateral, the financial condition of the issuer, the extent and duration of the loss, our intent related to the individual securities, and the likelihood that we will have to sell securities prior to expected recovery.

The debt securities identified to have OTTI are written down to their current fair value. For those debt securities that we intend to sell, or more-likely-than-not will be required to sell, prior to the expected recovery of the amortized cost, the entire impairment (i.e., the difference between amortized cost and the fair value) is recognized in earnings. For those debt securities that we do not intend to sell, or more-likely-than-not will not be required to sell, prior to expected recovery, the credit portion of OTTI is recognized in earnings, while the remaining OTTI is recognized in equity as a component of AOCI on the balance sheet. As shown in the following table, we had less than $1 million of impairment losses recognized in earnings for the three months ended March 31, 2015.

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Three months ended March 31, 2015
in millions
Balance at December 31, 2014	$	4
Impairment recognized in earnings		—
Balance at March 31, 2015	$	4

Realized gains and losses related to securities available for sale were as follows:

Three months ended March 31, 2015
in millions
Realized gains	—
Realized losses	—
Net securities gains (losses)	—

At March 31, 2015, securities available for sale and held-to-maturity securities totaling $8 billion were pledged to secure securities sold under repurchase agreements, to secure public and trust deposits, to facilitate access to secured funding, and for other purposes required or permitted by law.

The following table shows securities by remaining maturity. CMOs and other mortgage-backed securities (both of which are included in the securities available-for-sale portfolio) as well as the CMOs in the held-to-maturity portfolio are presented based on their expected average lives. The remaining securities, in both the available-for-sale and held-to-maturity portfolios, are presented based on their remaining contractual maturity. Actual maturities may differ from expected or contractual maturities since borrowers have the right to prepay obligations with or without prepayment penalties.

	Securities				Held-to-Maturity
	Available for Sale				Securities
March 31, 2015	Amortized		Fair		Amortized		Fair
in millions	Cost		Value		Cost		Value
Due in one year or less	$	288	$	292	$	9	$	9
Due after one through five years		12,599		12,676		4,504		4,498
Due after five through ten years		147		149		492		496
Due after ten years		3		3		—		—
Total	$	13,037	$	13,120	$	5,005	$	5,003

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7. Derivatives and Hedging Activities

We are a party to various derivative instruments, mainly through our subsidiary, KeyBank. Derivative instruments are contracts between two or more parties that have a notional amount and an underlying variable, require a small or no net investment, and allow for the net settlement of positions. A derivative’s notional amount serves as the basis for the payment provision of the contract, and takes the form of units, such as shares or dollars. A derivative’s underlying variable is a specified interest rate, security price, commodity price, foreign exchange rate, index, or other variable. The interaction between the notional amount and the underlying variable determines the number of units to be exchanged between the parties and influences the fair value of the derivative contract.

The primary derivatives that we use are interest rate swaps, caps, floors, and futures; foreign exchange contracts; commodity derivatives; and credit derivatives. Generally, these instruments help us manage exposure to interest rate risk, mitigate the credit risk inherent in the loan portfolio, hedge against changes in foreign currency exchange rates, and meet client financing and hedging needs. As further discussed in this note:

• interest rate risk represents the possibility that the EVE or net interest income will be adversely affected by fluctuations in interest rates;

• credit risk is the risk of loss arising from an obligor’s inability or failure to meet contractual payment or performance terms; and

• foreign exchange risk is the risk that an exchange rate will adversely affect the fair value of a financial instrument.

Derivative assets and liabilities are recorded at fair value on the balance sheet, after taking into account the effects of bilateral collateral and master netting agreements. These agreements allow us to settle all derivative contracts held with a single counterparty on a net basis, and to offset net derivative positions with related cash collateral, where applicable. As a result, we could have derivative contracts with negative fair values included in derivative assets on the balance sheet and contracts with positive fair values included in derivative liabilities.

At March 31, 2015, after taking into account the effects of bilateral collateral and master netting agreements, we had $93 million of derivative assets and a positive $25 million of derivative liabilities that relate to contracts entered into for hedging purposes. Our hedging derivative liabilities are in an asset position largely because we have contracts with positive fair values as a result of master netting agreements. As of the same date, after taking into account the effects of bilateral collateral and master netting agreements and a reserve for potential future losses, we had derivative assets of $638 million and derivative liabilities of $850 million that were not designated as hedging instruments.

Additional information regarding our accounting policies for derivatives is provided in Note 1 (“Summary of Significant Accounting Policies”) under the heading “Derivatives” beginning on page 121 of our 2014 Form 10-K.

Derivatives Designated in Hedge Relationships

Net interest income and the EVE change in response to changes in the mix of assets, liabilities, and off-balance sheet instruments; associated interest rates tied to each instrument; differences in the repricing and maturity characteristics of interest-earning assets and interest-bearing liabilities; and changes in interest rates. We utilize derivatives that have been designated as part of a hedge relationship in accordance with the applicable accounting guidance to minimize the exposure and volatility of net interest income and EVE to interest rate fluctuations. The primary derivative instruments used to manage interest rate risk are interest rate swaps, which convert the contractual interest rate index of agreed-upon amounts of assets and liabilities (i.e., notional amounts) to another interest rate index.

We designate certain “receive fixed/pay variable” interest rate swaps as fair value hedges. These contracts convert certain fixed-rate long-term debt into variable-rate obligations, thereby modifying our exposure to changes in interest rates. As a result, we receive fixed-rate interest payments in exchange for making variable-rate payments over the lives of the contracts without exchanging the notional amounts.

Similarly, we designate certain “receive fixed/pay variable” interest rate swaps as cash flow hedges. These contracts effectively convert certain floating-rate loans into fixed-rate loans to reduce the potential adverse effect of interest rate decreases on future interest income. Again, we receive fixed-rate interest payments in exchange for making variable-rate payments over the lives of the contracts without exchanging the notional amounts.

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We also designate certain “pay fixed/receive variable” interest rate swaps as cash flow hedges. These swaps convert certain floating-rate debt into fixed-rate debt. We also use these swaps to manage the interest rate risk associated with anticipated sales of certain commercial real estate loans. The swaps protect against the possible short-term decline in the value of the loans that could result from changes in interest rates between the time they are originated and the time they are sold.

Interest rate swaps are also used to hedge the floating-rate debt that funds fixed-rate leases entered into by our equipment finance line of business. These swaps are designated as cash flow hedges to mitigate the interest rate mismatch between the fixed-rate lease cash flows and the floating-rate payments on the debt. These hedge relationships were terminated during the quarter ended March 31, 2014.

We use foreign currency forward transactions to hedge the foreign currency exposure of our net investment in various foreign equipment finance entities. These entities are denominated in a non-U.S. currency. These swaps are designated as net investment hedges to mitigate the exposure of measuring the net investment at the spot foreign exchange rate.

Derivatives Not Designated in Hedge Relationships

On occasion, we enter into interest rate swap contracts to manage economic risks but do not designate the instruments in hedge relationships. Excluding contracts addressing customer exposures, the amount of derivatives hedging risks on an economic basis at March 31, 2015, was not significant.

Like other financial services institutions, we originate loans and extend credit, both of which expose us to credit risk. We actively manage our overall loan portfolio and the associated credit risk in a manner consistent with asset quality objectives and concentration risk tolerances to mitigate portfolio credit risk. Purchasing credit default swaps enables us to transfer to a third party a portion of the credit risk associated with a particular extension of credit, including situations where there is a forecasted sale of loans. Beginning in the first quarter of 2014, we began purchasing credit default swaps to reduce the credit risk associated with the debt securities held in our trading portfolio. We may also sell credit derivatives to offset our purchased credit default swap position prior to maturity. Although we use credit default swaps for risk management purposes, they are not treated as hedging instruments.

We also enter into derivative contracts for other purposes, including:

• interest rate swap, cap, and floor contracts entered into generally to accommodate the needs of commercial loan clients;

• energy and base metal swap and options contracts entered into to accommodate the needs of clients;

• futures contracts and positions with third parties that are intended to offset or mitigate the interest rate or market risk related to client positions discussed above; and

• foreign exchange forward contracts and options entered into primarily to accommodate the needs of clients.

These contracts are not designated as part of hedge relationships.

Fair Values, Volume of Activity, and Gain/Loss Information Related to Derivative Instruments

The following table summarizes the fair values of our derivative instruments on a gross and net basis as of March 31, 2015, December 31, 2014, and March 31, 2014. The change in the notional amounts of these derivatives by type from December 31, 2014, to March 31, 2015, indicates the volume of our derivative transaction activity during the first quarter of 2015. The notional amounts are not affected by bilateral collateral and master netting agreements. The derivative asset and liability balances are presented on a gross basis, prior to the application of bilateral collateral and master netting agreements. Total derivative assets and liabilities are adjusted to take into account the impact of legally enforceable master netting agreements that allow us to settle all derivative contracts with a single counterparty on a net basis and to offset the net derivative position with the related cash collateral. Where master netting agreements are not in effect or are not enforceable under bankruptcy laws, we do not adjust those derivative assets and liabilities with counterparties. Securities collateral related to legally enforceable master netting agreements is not offset on the balance sheet. Our derivative instruments are included in “derivative assets” or “derivative liabilities” on the balance sheet, as indicated in the following table:

52

	March 31, 2015								December 31, 2014								March 31, 2014
			Fair Value								Fair Value								Fair Value
in millions	Notional Amount		Derivative Assets			Derivative Liabilities			Notional Amount		Derivative Assets			Derivative Liabilities			Notional Amount		Derivative Assets			Derivative Liabilities
Derivatives designated as hedging instruments:
Interest rate	$	16,802	$	315		$	14		$	15,095	$	272		$	26		$	14,479	$	277		$	40
Foreign exchange		339		20			—			371		8			—			312		5			1
Total		17,141		335			14			15,466		280			26			14,791		282			41
Derivatives not designated as hedging instruments:
Interest rate		41,913		728			678			43,771		665			618			44,156		688			647
Foreign exchange		5,544		152			147			4,024		85			81			4,653		55			51
Commodity		1,553		582			567			1,544		608			594			1,597		110			105
Credit		586		5			7			512		5			7			905		5			12
Total		49,596		1,467			1,399			49,851		1,363			1,300			51,311		858			815
Netting adjustments (a)		—		(1,071	)		(588	)		—		(1,034	)		(542	)		—		(713	)		(448	)
Net derivatives in the balance sheet		66,737		731			825			65,317		609			784			66,102		427			408
Other collateral (b)		—		(146	)		(244	)		—		(155	)		(241	)		—		(61	)		(325	)
Net derivative amounts	$	66,737	$	585		$	581		$	65,317	$	454		$	543		$	66,102	$	366		$	83

(a) Netting adjustments represent the amounts recorded to convert our derivative assets and liabilities from a gross basis to a net basis in accordance with the applicable accounting guidance.

(b) Other collateral represents the amount that cannot be used to offset our derivative assets and liabilities from a gross basis to a net basis in accordance with the applicable accounting guidance. The other collateral consists of securities and is exchanged under bilateral collateral and master netting agreements that allow us to offset the net derivative position with the related collateral. The application of the other collateral cannot reduce the net derivative position below zero. Therefore, excess other collateral, if any, is not reflected above.

Fair value hedges. Instruments designated as fair value hedges are recorded at fair value and included in “derivative assets” or “derivative liabilities” on the balance sheet. The effective portion of a change in the fair value of an instrument designated as a fair value hedge is recorded in earnings at the same time as a change in fair value of the hedged item, resulting in no effect on net income. The ineffective portion of a change in the fair value of such a hedging instrument is recorded in “other income” on the income statement with no corresponding offset. During the three-month period ended March 31, 2015, we did not exclude any portion of these hedging instruments from the assessment of hedge effectiveness. While there is some immaterial ineffectiveness in our hedging relationships, all of our fair value hedges remained “highly effective” as of March 31, 2015.

The following table summarizes the pre-tax net gains (losses) on our fair value hedges for the three-month periods ended March 31, 2015, and March 31, 2014, and where they are recorded on the income statement.

	Three months ended March 31, 2015
in millions	Income Statement Location of Net Gains (Losses) on Derivative	Net Gains (Losses) on Derivative		Hedged Item		Income Statement Location of Net Gains (Losses) on Hedged Item		Net Gains (Losses) on Hedged Item
Interest rate	Other income	$	41		Long-term debt		Other income	$	(41	) (a)
Interest rate	Interest expense – Long-term debt		29
Total		$	70					$	(41	)
	Three months ended March 31, 2014
in millions	Income Statement Location of Net Gains (Losses) on Derivative	Net Gains (Losses) on Derivative		Hedged Item		Income Statement Location of Net Gains (Losses) on Hedged Item		Net Gains (Losses) on Hedged Item
Interest rate	Other income		—		Long-term debt		Other income		—	(a)
Interest rate	Interest expense – Long-term debt	$	33
Total		$	33						—

(a) Net gains (losses) on hedged items represent the change in fair value caused by fluctuations in interest rates.

Cash flow hedges. Instruments designated as cash flow hedges are recorded at fair value and included in “derivative assets” or “derivative liabilities” on the balance sheet. Initially, the effective portion of a gain or loss on a cash flow hedge is recorded as a component of AOCI on the balance sheet. This amount is subsequently reclassified into income when the hedged transaction affects earnings (e.g., when we pay variable-rate interest on debt, receive variable-rate interest on commercial loans, or sell commercial real estate loans). The ineffective portion of cash flow hedging transactions is included in “other income” on the income statement. During the three-month period ended March 31, 2015, we did not exclude any portion of these hedging instruments from the assessment of hedge effectiveness. While there is some immaterial ineffectiveness in our hedging relationships, all of our cash flow hedges remained “highly effective” as of March 31, 2015.

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Considering the interest rates, yield curves, and notional amounts as of March 31, 2015, we would expect to reclassify an estimated $29 million of net losses on derivative instruments from AOCI to income during the next 12 months for our cash flow hedges. In addition, we expect to reclassify approximately $2 million of net gains related to terminated cash flow hedges from AOCI to income during the next 12 months. As of March 31, 2015, the maximum length of time over which we hedge forecasted transactions is 13 years.

Net investment hedges. We enter into foreign currency forward contracts to hedge our exposure to changes in the carrying value of our investments as a result of changes in the related foreign exchange rates. Instruments designated as net investment hedges are recorded at fair value and included in “derivative assets” or “derivative liabilities” on the balance sheet. Initially, the effective portion of a gain or loss on a net investment hedge is recorded as a component of AOCI on the balance sheet when the terms of the derivative match the notional and currency risk being hedged. The effective portion is subsequently reclassified into income when the hedged transaction affects earnings (e.g., when we dispose of or liquidate a foreign subsidiary). At March 31, 2015, AOCI reflected unrecognized after-tax gains totaling $33 million related to cumulative changes in the fair value of our net investment hedges, which offset the unrecognized after-tax foreign currency losses on net investment balances. The ineffective portion of net investment hedging transactions is included in “other income” on the income statement, but there was no net investment hedge ineffectiveness as of March 31, 2015. We did not exclude any portion of our hedging instruments from the assessment of hedge effectiveness during the three-month period ended March 31, 2015.

The following table summarizes the pre-tax net gains (losses) on our cash flow and net investment hedges for the three-month periods ended March 31, 2015, and March 31, 2014, and where they are recorded on the income statement. The table includes the effective portion of net gains (losses) recognized in OCI during the period, the effective portion of net gains (losses) reclassified from OCI into income during the current period, and the portion of net gains (losses) recognized directly in income, representing the amount of hedge ineffectiveness.

	Three months ended March 31, 2015
in millions	Net Gains (Losses) Recognized in OCI (Effective Portion)			Income Statement Location of Net Gains (Losses) Reclassified From OCI Into Income (Effective Portion)		Net Gains (Losses) Reclassified From OCI Into Income (Effective Portion)			Income Statement Location of Net Gains (Losses) Recognized in Income (Ineffective Portion)		Net Gains (Losses) Recognized in Income (Ineffective Portion)
Cash Flow Hedges
Interest rate	$	54			Interest income – Loans	$	22			Other income		—
Interest rate		(2	)		Interest expense – Long-term debt		(1	)		Other income		—
Interest rate		(4	)		Investment banking and debt placement fees		—			Other income		—
Net Investment Hedges
Foreign exchange contracts		24			Other Income		—			Other income		—
Total	$	72				$	21					—
	Three months ended March 31, 2014
in millions	Net Gains (Losses) Recognized in OCI (Effective Portion)			Income Statement Location of Net Gains (Losses) Reclassified From OCI Into Income (Effective Portion)		Net Gains (Losses) Reclassified From OCI Into Income (Effective Portion)			Income Statement Location of Net Gains (Losses) Recognized in Income (Ineffective Portion)		Net Gains (Losses) Recognized in Income (Ineffective Portion)
Cash Flow Hedges
Interest rate	$	9			Interest income – Loans	$	15			Other income		—
Interest rate		(2	)		Interest expense – Long-term debt		(1	)		Other income		—
Interest rate		—			Investment banking and debt placement fees		—			Other income		—
Net Investment Hedges
Foreign exchange contracts		5			Other Income		—			Other income		—
Total	$	12				$	14					—

The after-tax change in AOCI resulting from cash flow and net investment hedges is as follows:

in millions	December 31, 2014			2015 Hedging Activity		Reclassification of Gains to Net Income			March 31, 2015
AOCI resulting from cash flow and net investment hedges	$	(8	)	$	45	$	(13	)	$	24

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Nonhedging instruments. Our derivatives that are not designated as hedging instruments are recorded at fair value in “derivative assets” and “derivative liabilities” on the balance sheet. Adjustments to the fair values of these instruments, as well as any premium paid or received, are included in “corporate services income” and “other income” on the income statement.

The following table summarizes the pre-tax net gains (losses) on our derivatives that are not designated as hedging instruments for the three-month periods ended March 31, 2015, and March 31, 2014, and where they are recorded on the income statement.

	Three months ended March 31, 2015								Three months ended March 31, 2014
	Corporate								Corporate
	Services		Other						Services		Other
in millions	Income		Income			Total			Income		Income			Total
NET GAINS (LOSSES)
Interest rate	$	4		—		$	4		$	4		—		$	4
Foreign exchange		8		—			8			9		—			9
Commodity		2		—			2			1		—			1
Credit		—	$	(4	)		(4	)		—	$	(3	)		(3	)
Total net gains (losses)	$	14	$	(4	)	$	10		$	14	$	(3	)	$	11

Counterparty Credit Risk

Like other financial instruments, derivatives contain an element of credit risk. This risk is measured as the expected positive replacement value of the contracts. We use several means to mitigate and manage exposure to credit risk on derivative contracts. We generally enter into bilateral collateral and master netting agreements that provide for the net settlement of all contracts with a single counterparty in the event of default. Additionally, we monitor counterparty credit risk exposure on each contract to determine appropriate limits on our total credit exposure across all product types. We review our collateral positions on a daily basis and exchange collateral with our counterparties in accordance with standard ISDA documentation, central clearing rules, and other related agreements. We generally hold collateral in the form of cash and highly rated securities issued by the U.S. Treasury, government-sponsored enterprises, or GNMA. The cash collateral netted against derivative assets on the balance sheet totaled $514 million at March 31, 2015, $518 million at December 31, 2014, and $270 million at March 31, 2014. The cash collateral netted against derivative liabilities totaled $31 million at March 31, 2015, $26 million at December 31, 2014, and $5 million at March 31, 2014. The relevant agreements that allow us to access the central clearing organizations to clear derivative transactions are not considered to be qualified master netting agreements. Therefore, we cannot net derivative contracts or offset those contracts with related cash collateral with these counterparties. At March 31, 2015, we posted $68 million of cash collateral with clearing organizations and held $7 million of cash collateral from clearing organizations. This additional cash collateral is included in “accrued income and other assets” and “accrued expense and other liabilities” on the balance sheet.

The following table summarizes our largest exposure to an individual counterparty at the dates indicated.

	March 31,		December 31,		March 31,
in millions	2015		2014		2014
Largest gross exposure (derivative asset) to an individual counterparty	$	122	$	133	$	118
Collateral posted by this counterparty		91		100		43
Derivative liability with this counterparty		28		31		108
Collateral pledged to this counterparty		—		—		40
Net exposure after netting adjustments and collateral		3		2		7

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The following table summarizes the fair value of our derivative assets by type at the dates indicated. These assets represent our gross exposure to potential loss after taking into account the effects of bilateral collateral and master netting agreements and other means used to mitigate risk.

	March 31,		December 31,		March 31,
in millions	2015		2014		2014
Interest rate	$	755	$	607	$	606
Foreign exchange		58		41		20
Commodity		431		478		72
Credit		1		1		(1	)
Derivative assets before collateral		1,245		1,127		697
Less: Related collateral		514		518		270
Total derivative assets	$	731	$	609	$	427

We enter into derivative transactions with two primary groups: broker-dealers and banks, and clients. Since these groups have different economic characteristics, we have different methods for managing counterparty credit exposure and credit risk.

We enter into transactions with broker-dealers and banks for various risk management purposes. These types of transactions generally are high dollar volume. We generally enter into bilateral collateral and master netting agreements with these counterparties. We began clearing certain types of derivative transactions with these counterparties in June 2013, whereby the central clearing organizations become our counterparties subsequent to novation of the original derivative contracts. In addition, we began entering into derivative contracts through swap execution facilities during the quarter ended March 31, 2014. The swap clearing and swap trade execution requirements were mandated by the Dodd-Frank Act for the purpose of reducing counterparty credit risk and increasing transparency in the derivative market. At March 31, 2015, we had gross exposure of $946 million to broker-dealers and banks. We had net exposure of $243 million after the application of master netting agreements and cash collateral, where such qualifying agreements exist. We had net exposure of $74 million after considering $169 million of additional collateral held in the form of securities.

We enter into transactions with clients to accommodate their business needs. These types of transactions generally are low dollar volume. We generally enter into master netting agreements with these counterparties. In addition, we mitigate our overall portfolio exposure and market risk by buying and selling U.S. Treasuries and Eurodollar futures, and entering into offsetting positions and other derivative contracts, sometimes with entities other than broker-dealers and banks. Due to the smaller size and magnitude of the individual contracts with clients, we generally do not exchange collateral in connection with these derivative transactions. To address the risk of default associated with the uncollateralized contracts, we have established a credit valuation adjustment (included in “derivative assets”) in the amount of $8 million at March 31, 2015, which we estimate to be the potential future losses on amounts due from client counterparties in the event of default. At December 31, 2014, the credit valuation adjustment was $9 million. For the derivative counterparties that are not broker-dealers, banks, or clients, we generally exchange collateral. At March 31, 2015, we had gross exposure of $550 million to client counterparties and other entities that are not broker-dealers or banks for derivatives that have associated master netting agreements. We had net exposure of $488 million on our derivatives with these counterparties after the application of master netting agreements, collateral, and the related reserve. In addition, the derivatives for one counterparty were guaranteed by a third party with a letter of credit totaling $35 million.

Credit Derivatives

We are both a buyer and seller of credit protection through the credit derivative market. We purchase credit derivatives to manage the credit risk associated with specific commercial lending and swap obligations as well as exposures to debt securities. We may also sell credit derivatives, mainly single-name credit default swaps, to offset our purchased credit default swap position prior to maturity.

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The following table summarizes the fair value of our credit derivatives purchased and sold by type as of March 31, 2015, December 31, 2014, and March 31, 2014. The fair value of credit derivatives presented below does not take into account the effects of bilateral collateral or master netting agreements.

	March 31, 2015									December 31, 2014								March 31, 2014
in millions	Purchased			Sold			Net			Purchased			Sold		Net			Purchased			Sold		Net
Single-name credit default swaps	$	(3	)		—		$	(3	)	$	(3	)		—	$	(3	)	$	(6	)		—	$	(6	)
Traded credit default swap indices		1			—			1			1			—		1			(2	)		—		(2	)
Other		1		$	(1	)		—			—			—		—			—			—		—
Total credit derivatives	$	(1	)	$	(1	)	$	(2	)	$	(2	)		—	$	(2	)	$	(8	)		—	$	(8	)

Single-name credit default swaps are bilateral contracts whereby the seller agrees, for a premium, to provide protection against the credit risk of a specific entity (the “reference entity”) in connection with a specific debt obligation. The protected credit risk is related to adverse credit events, such as bankruptcy, failure to make payments, and acceleration or restructuring of obligations, identified in the credit derivative contract. As the seller of a single-name credit derivative, we may settle in one of two ways if the underlying reference entity experiences a predefined credit event. We may be required to pay the purchaser the difference between the par value and the market price of the debt obligation (cash settlement) or receive the specified referenced asset in exchange for payment of the par value (physical settlement). If we effect a physical settlement and receive our portion of the related debt obligation, we will join other creditors in the liquidation process, which may enable us to recover a portion of the amount paid under the credit default swap contract. We also may purchase offsetting credit derivatives for the same reference entity from third parties that will permit us to recover the amount we pay should a credit event occur.

A traded credit default swap index represents a position on a basket or portfolio of reference entities. As a seller of protection on a credit default swap index, we would be required to pay the purchaser if one or more of the entities in the index had a credit event. Upon a credit event, the amount payable is based on the percentage of the notional amount allocated to the specific defaulting entity.

The majority of transactions represented by the “other” category shown in the above table are risk participation agreements. In these transactions, the lead participant has a swap agreement with a customer. The lead participant (purchaser of protection) then enters into a risk participation agreement with a counterparty (seller of protection), under which the counterparty receives a fee to accept a portion of the lead participant’s credit risk. If the customer defaults on the swap contract, the counterparty to the risk participation agreement must reimburse the lead participant for the counterparty’s percentage of the positive fair value of the customer swap as of the default date. If the customer swap has a negative fair value, the counterparty has no reimbursement requirements. If the customer defaults on the swap contract and the seller fulfills its payment obligations under the risk participation agreement, the seller is entitled to a pro rata share of the lead participant’s claims against the customer under the terms of the swap agreement.

The following table provides information on the types of credit derivatives sold by us and held on the balance sheet at March 31, 2015, December 31, 2014, and March 31, 2014. The notional amount represents the maximum amount that the seller could be required to pay. The payment/performance risk assessment is based on the default probabilities for the underlying reference entities’ debt obligations using a Moody’s credit ratings matrix known as Moody’s “Idealized” Cumulative Default Rates. The payment/performance risk shown in the table represents a weighted-average of the default probabilities for all reference entities in the respective portfolios. These default probabilities are directly correlated to the probability that we will have to make a payment under the credit derivative contracts.

	March 31, 2015							December 31, 2014							March 31, 2014
			Average		Payment /					Average		Payment /					Average		Payment /
	Notional		Term		Performance			Notional		Term		Performance			Notional		Term		Performance
dollars in millions	Amount		(Years)		Risk			Amount		(Years)		Risk			Amount		(Years)		Risk
Single-name credit default swaps	$	5		.47		.87	%	$	5		.72		.87	%	$	55		.52		22.28	%
Other		8		3.04		9.39			6		2.89		9.58			13		4.80		8.23
Total credit derivatives sold	$	13		—		—		$	11		—		—		$	68		—		—

Credit Risk Contingent Features

We have entered into certain derivative contracts that require us to post collateral to the counterparties when these contracts are in a net liability position. The amount of collateral to be posted is based on the amount of the net liability and thresholds generally related to our long-term senior unsecured credit ratings with Moody’s and S&P. Collateral requirements also are based on minimum transfer amounts, which are specific to each Credit Support Annex (a component of the ISDA Master

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Agreement) that we have signed with the counterparties. In a limited number of instances, counterparties have the right to terminate their ISDA Master Agreements with us if our ratings fall below a certain level, usually investment-grade level (i.e., “Baa3” for Moody’s and “BBB-” for S&P). At March 31, 2015, KeyBank’s ratings were “A3” with Moody’s and “A-” with S&P, and KeyCorp’s ratings were “Baa1” with Moody’s and “BBB+” with S&P. As of March 31, 2015, the aggregate fair value of all derivative contracts with credit risk contingent features (i.e., those containing collateral posting or termination provisions based on our ratings) held by KeyBank that were in a net liability position totaled $292 million, which includes $276 million in derivative assets and $568 million in derivative liabilities. We had $259 million in cash and securities collateral posted to cover those positions as of March 31, 2015. The aggregate fair value of all derivative contracts with credit risk contingent features held by KeyCorp as of March 31, 2015, that were in a net liability position totaled $9 million, which consists solely of derivative liabilities. We had $9 million in collateral posted to cover those positions as of March 31, 2015.

The following table summarizes the additional cash and securities collateral that KeyBank would have been required to deliver under the ISDA Master Agreements had the credit risk contingent features been triggered for the derivative contracts in a net liability position as of March 31, 2015, December 31, 2014, and March 31, 2014. The additional collateral amounts were calculated based on scenarios under which KeyBank’s ratings are downgraded one, two, or three ratings as of March 31, 2015, December 31, 2014, and March 31, 2014, and take into account all collateral already posted. A similar calculation was performed for KeyCorp, and no additional collateral would have been required as of March 31, 2015, while additional collateral of less than $1 million and $2 million would have been required as of December 31, 2014, and March 31, 2014, respectively. For more information about the credit ratings for KeyBank and KeyCorp, see the discussion under the heading “Factors affecting liquidity” in the section entitled “Liquidity risk management” in Item 2 of this report.

	March 31, 2015				December 31, 2014				March 31, 2014
in millions	Moody’s		S&P		Moody’s		S&P		Moody’s		S&P
KeyBank’s long-term senior unsecured credit ratings		A3		A-		A3		A-		A3		A-
One rating downgrade	$	4	$	4	$	1	$	1	$	6	$	6
Two rating downgrades		4		4		1		1		11		11
Three rating downgrades		6		6		3		3		11		11

KeyBank’s long-term senior unsecured credit rating is currently four ratings above noninvestment grade at Moody’s and S&P. If KeyBank’s ratings had been downgraded below investment grade as of March 31, 2015, payments of up to $8 million would have been required to either terminate the contracts or post additional collateral for those contracts in a net liability position, taking into account all collateral already posted. If KeyCorp’s ratings had been downgraded below investment grade as of March 31, 2015, payments of less than $1 million would have been required to either terminate the contracts or post additional collateral for those contracts in a net liability position, taking into account all collateral already posted.

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8. Mortgage Servicing Assets

We originate and periodically sell commercial mortgage loans but continue to service those loans for the buyers. We also may purchase the right to service commercial mortgage loans for other lenders. We record a servicing asset if we purchase or retain the right to service loans in exchange for servicing fees that exceed the going market servicing rate and are considered more than adequate compensation for servicing. Changes in the carrying amount of mortgage servicing assets are summarized as follows:

	Three months ended March 31,
in millions	2015			2014
Balance at beginning of period	$	323		$	332
Servicing retained from loan sales		10			6
Purchases		15			7
Amortization		(24	)		(25	)
Balance at end of period	$	324		$	320
Fair value at end of period	$	423		$	373

The fair value of mortgage servicing assets is determined by calculating the present value of future cash flows associated with servicing the loans. This calculation uses a number of assumptions that are based on current market conditions. The range and weighted-average of the significant unobservable inputs used to fair value our mortgage servicing assets at March 31, 2015, and March 31, 2014, along with the valuation techniques, are shown in the following table:

March 31, 2015 dollars in millions	Valuation Technique	Significant Unobservable Input	Range (Weighted-Average)
Mortgage servicing assets	Discounted cash flow	Prepayment speed		1.60 - 13.10% (4.80%)
		Expected defaults		1.00 - 3.00% (1.80%)
		Residual cash flows discount rate		7.00 - 15.00% (7.80%)
		Escrow earn rate		0.70 - 3.10% (1.90%)
		Servicing cost		$150 - $2,735 ($1,059)
		Loan assumption rate		0.20 - 3.00% (1.43%)
		Percentage late		0.00 - 2.00% (0.33%)
March 31, 2014 dollars in millions	Valuation Technique	Significant Unobservable Input	Range (Weighted-Average)
Mortgage servicing assets	Discounted cash flow	Prepayment speed		1.90 - 11.30% (4.90%)
		Expected defaults		1.00 - 3.00% (2.00%)
		Residual cash flows discount rate		7.00 - 14.00% (7.80%)
		Escrow earn rate		0.40 - 3.10% (1.80%)
		Servicing cost		$150 - $2,600 ($963)
		Loan assumption rate		0.20 - 3.00% (1.58%)
		Percentage late		0.00 - 2.00% (0.33%)

If these economic assumptions change or prove incorrect, the fair value of mortgage servicing assets may also change. The volume of loans serviced, expected credit losses, and the value assigned to escrow deposits are critical to the valuation of servicing assets. At March 31, 2015, a 1.00% decrease in the value assigned to the escrow deposits would cause a $54 million decrease in the fair value of our mortgage servicing assets. An increase in the assumed default rate of commercial mortgage loans of 1.00% would cause a $7 million decrease in the fair value of our mortgage servicing assets.

Contractual fee income from servicing commercial mortgage loans totaled $13 million for the three-month period ended March 31, 2015, and $15 million for the three-month period ended March 31, 2014. We have elected to account for servicing assets using the amortization method. The amortization of servicing assets is determined in proportion to, and over the period of, the estimated net servicing income. The amortization of servicing assets for each period, as shown in the table at the beginning of this note, is recorded as a reduction to fee income. Both the contractual fee income and the amortization are recorded in “mortgage servicing fees” on the income statement.

Additional information pertaining to the accounting for mortgage and other servicing assets is included in Note 1 (“Summary of Significant Accounting Policies”) under the heading “Servicing Assets” on page 122 of our 2014 Form 10-K.

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9. Variable Interest Entities

A VIE is a partnership, limited liability company, trust, or other legal entity that meets any one of the following criteria:

• The entity does not have sufficient equity to conduct its activities without additional subordinated financial support from another party.

• The entity’s investors lack the power to direct the activities that most significantly impact the entity’s economic performance.

• The entity’s equity at risk holders do not have the obligation to absorb losses or the right to receive residual returns.

• The voting rights of some investors are not proportional to their economic interests in the entity, and substantially all of the entity’s activities involve, or are conducted on behalf of, investors with disproportionately few voting rights.

Our VIEs are summarized below. We define a “significant interest” in a VIE as a subordinated interest that exposes us to a significant portion, but not the majority, of the VIE’s expected losses or residual returns, even though we do not have the power to direct the activities that most significantly impact the entity’s economic performance.

On September 30, 2014, we sold the residual interests in all of our outstanding education loan securitization trusts and therefore no longer have a significant interest in those trusts. We deconsolidated the securitization trusts as of September 30, 2014, and removed the trust assets and liabilities from our balance sheet. Further information regarding these education loan securitization trusts is provided in Note 11 (“Acquisitions and Discontinued Operations”) under the heading “Education lending.”

	Consolidated VIEs				Unconsolidated VIEs
	Total		Total		Total		Total		Maximum
in millions	Assets		Liabilities		Assets		Liabilities		Exposure to Loss
March 31, 2015
LIHTC funds	$	1	$	2	$	55		—		—
LIHTC investments		N/A		N/A		1,355	$	4	$	509
December 31, 2014
LIHTC funds	$	1	$	1	$	55		—		—
LIHTC investments		N/A		N/A		1,234	$	4	$	521
March 31, 2014
LIHTC funds	$	15	$	15	$	97		—		—
Education loan securitization trusts		1,912		1,816		N/A		N/A		N/A
LIHTC investments		N/A		N/A		1,595	$	5	$	492

Our involvement with VIEs is described below.

Consolidated VIEs

LIHTC guaranteed funds. KAHC formed limited partnership funds that invested in LIHTC operating partnerships. Interests in these funds were offered in syndication to qualified investors who paid a fee to KAHC for a guaranteed return. We also earned syndication fees from the guaranteed funds and continue to earn asset management fees. The guaranteed funds’ assets, primarily investments in LIHTC operating partnerships, totaled less than $1 million at March 31, 2015, $5 million at December 31, 2014, and $12 million at March 31, 2014. These investments are recorded in “accrued income and other assets” on the balance sheet and serve as collateral for the guaranteed funds’ limited obligations.

We have not formed new guaranteed funds or added LIHTC partnerships since October 2003. However, we continue to act as asset manager and to provide occasional funding for existing funds under a guarantee obligation. As a result of this guarantee obligation, we have determined that we are the primary beneficiary of these guaranteed funds. Additional information on return guarantee agreements with LIHTC investors is presented in Note 15 (“Contingent Liabilities and Guarantees”) under the heading “Guarantees.”

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In accordance with the applicable accounting guidance for distinguishing liabilities from equity, third-party interests associated with our LIHTC guaranteed funds are considered mandatorily redeemable instruments and are recorded in “accrued expense and other liabilities” on the balance sheet. However, the FASB has indefinitely deferred the measurement and recognition provisions of this accounting guidance for mandatorily redeemable third-party interests associated with finite-lived subsidiaries, such as our LIHTC guaranteed funds. We adjust our financial statements each period for the third-party investors’ share of the guaranteed funds’ profits and losses. At March 31, 2015, we estimated the settlement value of these third-party interests to be between zero and $4 million, while the recorded value, including reserves, totaled $5 million. The partnership agreement for each of our guaranteed funds requires the fund to be dissolved by a certain date.

Unconsolidated VIEs

LIHTC nonguaranteed funds. Although we hold interests in certain nonguaranteed funds that we formed and funded, we have determined that we are not the primary beneficiary because we do not absorb the majority of the funds’ expected losses and do not have the power to direct activities that most significantly influence the economic performance of these entities. Assets of these unconsolidated nonguaranteed funds totaled $55 million at March 31, 2015, and December 31, 2014, and $97 million at March 31, 2014. Our maximum exposure to loss in connection with these funds is minimal, and we do not have any liability recorded related to the funds. We have not formed nonguaranteed funds since October 2003.

LIHTC investments. Through Key Community Bank, we have made investments directly in LIHTC operating partnerships formed by third parties. As a limited partner in these operating partnerships, we are allocated tax credits and deductions associated with the underlying properties. We have determined that we are not the primary beneficiary of these investments because the general partners have the power to direct the activities that most significantly influence the economic performance of their respective partnerships and have the obligation to absorb expected losses and the right to receive benefits. Assets of these unconsolidated LIHTC operating partnerships totaled approximately $885 million at March 31, 2015, $764 million at December 31, 2014, and $826 million at March 31, 2014. At March 31, 2015, our maximum exposure to loss in connection with these partnerships is the unamortized investment balance of $397 million plus $108 million of tax credits claimed but subject to recapture and $4 million of tax credits with a return guarantee agreement with LIHTC investors. We do not have any liability recorded related to these investments because we believe the likelihood of any loss is remote. We have not obtained any significant direct investments (either individually or in the aggregate) in LIHTC operating partnerships since September 2003.

We have additional investments in unconsolidated LIHTC operating partnerships that are held by the consolidated LIHTC guaranteed funds. Total assets of these operating partnerships were approximately $470 million at March 31, 2015, and December 31, 2014, and $769 million at March 31, 2014. The tax credits and deductions associated with these properties are allocated to the funds’ investors based on their ownership percentages. We have determined that we are not the primary beneficiary of these partnerships because the general partners have the power to direct the activities that most significantly impact their economic performance, and the obligation to absorb expected losses and right to receive residual returns. Information regarding our exposure to loss in connection with these guaranteed funds is included in Note 15 under the heading “Return guarantee agreement with LIHTC investors.”

We amortize these investments over the period that we expect to receive the tax benefits. During the first three months of 2015, we recognized $25 million of amortization and $28 million of tax credits associated with these investments within income taxes on our Consolidated Statements of Income. During the first three months of 2014, we recognized $24 million of amortization and $27 million of tax credits associated with these investments within income taxes on our Consolidated Statements of Income. At March 31, 2015, and March 31, 2014, we had $1 billion and $960 million of investments in LIHTC, respectively. These investments are reflected in accrued income and other assets on our Consolidated Balance Sheets.

Commercial and residential real estate investments and principal investments. Our Principal Investing unit and the Real Estate Capital line of business make equity and mezzanine investments, some of which are in VIEs. These investments are held by nonregistered investment companies subject to the provisions of the AICPA Audit and Accounting Guide, “Audits of Investment Companies.” We currently are not applying the accounting or disclosure provisions in the applicable accounting guidance for consolidations to these investments, which remain unconsolidated. The FASB had previously deferred the effective date of this guidance for such nonregistered investment companies. New accounting guidance was issued in February 2015 that removes this deferral. The effective date for this guidance is January 1, 2016 for us. Additional information regarding this new accounting guidance is provided in Note 1 (“Summary of Significant Accounting Policies”).

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10. Income Taxes

Income Tax Provision

In accordance with the applicable accounting guidance, the principal method established for computing the provision for income taxes in interim periods requires us to make our best estimate of the effective tax rate expected to be applicable for the full year. This estimated effective tax rate is then applied to interim consolidated pre-tax operating income to determine the interim provision for income taxes.

The effective tax rate, which is the provision for income taxes as a percentage of income from continuing operations before income taxes, was 24.4% for the first quarter of 2015 and 27.8% for the first quarter of 2014. The effective tax rates are below our combined federal and state statutory tax rate of 37.2% primarily due to income from investments in tax-advantaged assets such as corporate-owned life insurance and credits associated with investments in low-income housing projects. In addition, during the first quarter of 2015, our effective tax rate was reduced by additional federal tax credit refunds filed for prior years.

Deferred Tax Asset

At March 31, 2015, from continuing operations, we had a net federal deferred tax asset of $88 million and a net state deferred tax asset of $13 million compared to a net federal deferred tax asset of $174 million and a net state deferred tax asset of $20 million at December 31, 2014, and a net federal deferred tax asset of $148 million and a net state deferred tax asset of $4 million at March 31, 2014, included in “accrued income and other assets” on the balance sheet. To determine the amount of deferred tax assets that are more-likely-than-not to be realized, and therefore recorded, we conduct a quarterly assessment of all available evidence. This evidence includes, but is not limited to, taxable income in prior periods, projected future taxable income, and projected future reversals of deferred tax items. These assessments involve a degree of subjectivity and may undergo change. Based on these criteria, we had a valuation allowance of less than $1 million at March 31, 2015, and at December 31, 2014, and $1 million at March 31, 2014, associated with certain state net operating loss carryforwards and state credit carryforwards.

Unrecognized Tax Benefits

As permitted under the applicable accounting guidance for income taxes, it is our policy to recognize interest and penalties related to unrecognized tax benefits in income tax expense.

Deferred tax assets were reduced in the financial statements for unrecognized tax benefits by $1 million at March 31, 2015, December 31, 2014, and March 31, 2014.

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11. Acquisitions and Discontinued Operations

Acquisitions

Pacific Crest Securities. On September 3, 2014, we acquired Pacific Crest Securities, a leading technology-focused investment bank and capital markets firm based in Portland, Oregon. This acquisition, which is being accounted for as a business combination, expands our corporate and investment banking business unit and adds technology to our other industry verticals. During the fourth quarter of 2014, we recorded identifiable intangible assets of $13 million and goodwill of $78 million in Key Corporate Bank for this acquisition. The identifiable intangible assets and the goodwill related to this acquisition are non-deductible for tax purposes. Additional information regarding the identifiable intangible assets and the goodwill related to this acquisition is provided in Note 10 (“Goodwill and Other Intangible Assets”) beginning on page 173 of our 2014 Form 10-K.

Discontinued operations

Education lending. In September 2009, we decided to exit the government-guaranteed education lending business. As a result, we have accounted for this business as a discontinued operation.

As of January 1, 2010, we consolidated our 10 outstanding education lending securitization trusts since we held the residual interests and are the master servicer with the power to direct the activities that most significantly influence the economic performance of the trusts.

On September 30, 2014, we sold the residual interests in all of our outstanding education lending securitization trusts to a third party for $57 million. In selling the residual interests, we no longer have the obligation to absorb losses or the right to receive benefits related to the securitization trusts. Therefore, in accordance with the applicable accounting guidance, we deconsolidated the securitization trusts and removed trust assets of $1.7 billion and trust liabilities of $1.6 billion from our balance sheet at September 30, 2014. As part of the sale and deconsolidation, we recognized an after-tax loss of $25 million, which is recorded in “income (loss) from discontinued operations, net of tax” on our income statement. We continue to service the securitized loans in eight of the securitization trusts and receive servicing fees, whereby we are adequately compensated, as well as remain a counterparty to derivative contracts with three of the securitization trusts. We have retained interests in the securitization trusts through our ownership of an insignificant percentage of certificates in two of the securitization trusts and two interest-only strips in one of the securitization trusts. These retained interests were remeasured at fair value on September 30, 2014, and their fair value of $1 million was recorded in “discontinued assets” on our balance sheet. These assets were valued using a similar approach and inputs that have been used to value the education loan securitization trust loans and securities, which are further discussed later in this note.

“Income (loss) from discontinued operations, net of taxes” on the income statement includes (i) the changes in fair value of the assets and liabilities of the education loan securitization trusts and the loans at fair value in portfolio (discussed later in this note), and (ii) the interest income and expense from the loans and the securities of the trusts and the loans in portfolio at both amortized cost and fair value. These amounts are shown separately in the following table. Gains and losses attributable to changes in fair value are recorded as a component of “noninterest income” or “noninterest expense.” Interest income and expense related to the loans and securities are shown as a component of “net interest income.”

The components of “income (loss) from discontinued operations, net of taxes” for the education lending business are as follows:

	Three months ended March 31,
in millions	2015		2014
Net interest income	$	10	$	23
Provision for credit losses		2		4
Net interest income after provision for credit losses		8		19
Noninterest income		4		(14	)
Noninterest expense		4		6
Income (loss) before income taxes		8		(1	)
Income taxes		3		—
Income (loss) from discontinued operations, net of taxes (a)	$	5	$	(1	)

(a) Includes after-tax charges of $6 million and $9 million for the three-month periods ended March 31, 2015, and March 31, 2014, respectively, determined by applying a matched funds transfer pricing methodology to the liabilities assumed necessary to support the discontinued operations.

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The discontinued assets and liabilities of our education lending business included on the balance sheet are as follows:

in millions	March 31, 2015		December 31, 2014		March 31, 2014
Held-to-maturity securities	$	1	$	1		—
Trust loans at fair value		—		—	$	1,893
Portfolio loans at fair value		187		191		143
Loans, net of unearned income (a)		2,032		2,104		2,318
Less: Allowance for loan and lease losses		25		29		34
Net loans		2,194		2,266		4,320
Trust accrued income and other assets at fair value		—		—		19
Accrued income and other assets		36		38		41
Total assets	$	2,231	$	2,305	$	4,380
Trust accrued expense and other liabilities at fair value		—		—	$	20
Trust securities at fair value		—		—		1,796
Total liabilities		—		—	$	1,816

(a) At March 31, 2015, December 31, 2014, and March 31, 2014, unearned income was less than $1 million.

The discontinued education lending business consists of loans in portfolio (recorded at fair value) and loans in portfolio (recorded at carrying value with appropriate valuation reserves). The assets and liabilities in the securitization trusts (recorded at fair value) were removed with the deconsolidation of the securitization trusts on September 30, 2014.

At March 31, 2015, education loans include 1,604 TDRs with a recorded investment of approximately $18 million (pre-modification and post-modification). A specifically allocated allowance of $1 million was assigned to these loans as of March 31, 2015. There have been no significant payment defaults. There are no significant commitments outstanding to lend additional funds to these borrowers. Additional information regarding TDR classification and ALLL methodology is provided in Note 4 (“Asset Quality”).

In the past, as part of our education lending business model, we originated and securitized education loans. The process of securitization involved taking a pool of loans from our balance sheet and selling them to a bankruptcy-remote QSPE, or trust. This trust then issued securities to investors in the capital markets to raise funds to pay for the loans. The cash flows generated from the loans pays holders of the securities issued. As the transferor, we retained a portion of the risk in the form of a residual interest and also retained the right to service the securitized loans and receive servicing fees.

The trust assets can be used only to settle the obligations or securities the trusts issue; the assets cannot be sold and the liabilities cannot be transferred. The loans in the trusts consist of both private and government-guaranteed loans. The security holders or beneficial interest holders do not have recourse to Key. We no longer have economic interest or risk of loss associated with these education loan securitization trusts as of September 30, 2014, and therefore, the securitization trusts were deconsolidated. During the second quarter of 2014, additional market information became available. Based on this information and our related internal analysis, we adjusted certain assumptions related to valuing the loans in the securitization trusts. As a result, we recognized a net after-tax loss of $22 million during the second quarter of 2014 related to the fair value of the loans and securities in the securitization trusts. These losses resulted in a reduction in the value of our economic interest in these trusts. We record all income and expense (including fair value adjustments) through “income (loss) from discontinued operations, net of tax” on our income statement.

On June 27, 2014, we purchased the private loans from one of the education loan securitization trusts through the execution of a clean-up call option. The trust used the cash proceeds from the sale of these loans to retire the outstanding securities related to these private loans, and there are no future commitments or obligations to the holders of the securities. The trust no longer has any loans or securities and will remain in existence for one year from the time the clean-up call was exercised. The portfolio loans were valued using an internal discounted cash flow method, which was affected by assumptions for defaults, expected credit losses, discount rates, and prepayments. The portfolio loans are considered to be Level 3 assets since we rely on unobservable inputs when determining fair value.

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At March 31, 2015, there were $186 million of loans that were previously purchased from three of the outstanding securitizations trusts pursuant to the legal terms of these particular trusts. These loans are held as portfolio loans and continue to be accounted for at fair value. These portfolio loans were valued using an internal discounted cash flow model, which was affected by assumptions for defaults, loss severity, discount rates, and prepayments. These portfolio loans are considered Level 3 assets since we rely on unobservable inputs when determining fair value. Our valuation process for these loans as well as the trust loans and securities is discussed in more detail below. Portfolio loans accounted for at fair value had a value of $187 million at March 31, 2015, $191 million at December 31, 2014, and $143 million at March 31, 2014.

When we first consolidated the education loan securitization trusts, we made an election to record them at fair value. Carrying the assets and liabilities of the trusts at fair value better depicted our economic interest. The fair value of the assets and liabilities of the trusts was determined by calculating the present value of the future expected cash flows. We relied on unobservable inputs (Level 3) when determining the fair value of the assets and liabilities of the trusts because observable market data was not available. Our valuation process is described in more detail below.

Corporate Treasury, within our Finance area, is responsible for the quarterly valuation process that determines the fair value of our student loans held in portfolio that are accounted for at fair value and previously for our loans and securities in our education loan securitization trusts. Corporate Treasury provides these fair values to a Working Group Committee (the “Working Group”) comprising representatives from the line of business, Credit and Market Risk Management, Accounting, Business Finance (part of our Finance area), and Corporate Treasury. The Working Group is a subcommittee of the Fair Value Committee that is discussed in more detail in Note 5 (“Fair Value Measurements”). The Working Group reviews all significant inputs and assumptions and approves the resulting fair values.

The Working Group reviews actual performance trends of the loans on a quarterly basis and uses statistical analysis and qualitative measures to determine assumptions for future performance. Predictive models that incorporate delinquency and charge-off trends along with economic outlooks assist the Working Group to forecast future defaults. The Working Group uses this information to formulate the credit outlook related to the loans. Higher projected defaults, fewer expected recoveries, elevated prepayment speeds, and higher discount rates would be expected to result in a lower fair value of the portfolio loans at fair value. Default expectations and discount rate changes have the most significant impact on the fair values of the loans. Increased cash flow uncertainty, whether through higher defaults and prepayments or fewer recoveries, can result in higher discount rates for use in the fair value process for these loans. This process was previously used in the valuation of the education loan securitization trust loans.

The valuation process for the portfolio loans that are accounted for at fair value is based on a discounted cash flow analysis using a model purchased from a third party that is maintained by Corporate Treasury. The valuation process begins with loan-by-loan level data that is aggregated into pools based on underlying loan structural characteristics (i.e., current unpaid principal balance, contractual term, interest rate). Cash flows for these loan pools are developed using a financial model that reflects certain assumptions for defaults, recoveries, status changes, and prepayments. A net earnings stream, taking into account cost of funding, is calculated and discounted back to the measurement date using an appropriate discount rate. This resulting amount is used to determine the present value of the loans, which represents their fair value to a market participant.

The unobservable inputs set forth in the following table are reviewed and approved by the Working Group on a quarterly basis. The Working Group determines these assumptions based on available data, discussions with appropriate individuals within and outside of Key, and the knowledge and experience of the Working Group members.

A similar discounted cash flow approach to that described above was used on a quarterly basis by Corporate Treasury to determine the fair value of the trust securities. In valuing these securities, the discount rates used were provided by a third-party valuation consultant. These discount rates were based primarily on secondary market spread indices for similar student loans and asset-backed securities and were developed by the consultant using market-based data. On a quarterly basis, the Working Group reviewed the discount rate inputs used in the valuation process for reasonableness.

A quarterly variance analysis reconciles valuation changes in the model used to calculate the fair value of the trust loans and securities and the portfolio loans at fair value. This quarterly analysis considers loan and securities run-off, yields, future default and recovery changes, and the timing of cash releases to us from the trusts. We also perform back-testing to compare expected defaults to actual experience; the impact of future defaults can significantly affect the fair value of these loans and securities over time. In addition, our internal model validation group periodically performs a review to ensure the accuracy and validity of the model for determining the fair value of these loans and securities.

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The following table shows the significant unobservable inputs used to measure the fair value of the education loan securitization trust loans and securities and the portfolio loans accounted for at fair value as of March 31, 2015, December 31, 2014, and March 31, 2014:

March 31, 2015 dollars in millions	Fair Value of Level 3 Assets and Liabilities		Valuation Technique	Significant Unobservable Input	Range (Weighted-Average)
Portfolio loans accounted for at fair value	$	187	Discounted cash flow	Prepayment speed		5.40 - 10.20% (7.04%)
				Loss severity		2.00 - 77.00% (27.66%)
				Discount rate		3.70 - 3.80% (3.71%)
				Default rate		1.40 - 1.70% (1.60%)
December 31, 2014 dollars in millions	Fair Value of Level 3 Assets and Liabilities		Valuation Technique	Significant Unobservable Input	Range (Weighted-Average)
Portfolio loans accounted for at fair value	$	191	Discounted cash flow	Prepayment speed		5.40 - 5.60% (5.50%)
				Loss severity		2.00 - 77.00% (25.66%)
				Discount rate		3.90 - 4.00% (3.92%)
				Default rate		.86 - 1.70% (1.12%)
March 31, 2014 dollars in millions	Fair Value of Level 3 Assets and Liabilities		Valuation Technique	Significant Unobservable Input	Range (Weighted-Average)
Trust loans and portfolio loans accounted for at fair value	$	2,036	Discounted cash flow	Prepayment speed		4.00 - 13.50% (6.62%)
				Loss severity		2.00 - 79.50% (53.89%)
				Discount rate		2.40 - 10.50% (3.51%)
				Default rate		8.05 - 23.87% (18.65%)
Trust securities		1,796	Discounted cash flow	Discount rate		1.60 - 3.50% (2.55%)

The following table shows the principal and fair value amounts for our trust loans at fair value, portfolio loans at fair value, and portfolio loans at carrying value at March 31, 2015, December 31, 2014, and March 31, 2014. Our policies for determining past due loans, placing loans on nonaccrual, applying payments on nonaccrual loans, and resuming accrual of interest are disclosed in Note 1 (“Summary of Significant Accounting Policies”) under the heading “Nonperforming Loans” beginning on page 116 of our 2014 Form 10-K.

	March 31, 2015				December 31, 2014				March 31, 2014
in millions	Principal		Fair Value		Principal		Fair Value		Principal		Fair Value
Trust loans at fair value
Accruing loans past due 90 days or more		—		—		—		—	$	25	$	25
Loans placed on nonaccrual status		—		—		—		—		10		10
Portfolio loans at fair value
Accruing loans past due 90 days or more	$	5	$	5	$	5	$	5	$	7	$	7
Loans placed on nonaccrual status		—		—		—		—		—		—
Portfolio loans at carrying value
Accruing loans past due 90 days or more	$	27		N/A	$	29		N/A	$	32		N/A
Loans placed on nonaccrual status		8		N/A		11		N/A		8		N/A

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The following table shows the consolidated trusts’ assets and liabilities at fair value and the portfolio loans at fair value and their related contractual values as of March 31, 2015, December 31, 2014, and March 31, 2014.

	March 31, 2015				December 31, 2014				March 31, 2014
in millions	Contractual Amount		Fair Value		Contractual Amount		Fair Value		Contractual Amount		Fair Value
ASSETS
Portfolio loans	$	186	$	187	$	192	$	191	$	136	$	143
Trust loans		—		—		—		—		1,889		1,893
Trust other assets		—		—		—		—		19		19
LIABILITIES
Trust securities		—		—		—		—	$	1,904	$	1,796
Trust other liabilities		—		—		—		—		20		20

The following tables present the assets and liabilities of the consolidated education loan securitization trusts measured at fair value as well as the portfolio loans that are measured at fair value on a recurring basis at March 31, 2015, December 31, 2014, and March 31, 2014.

March 31, 2015 in millions	Level 1		Level 2		Level 3		Total
ASSETS MEASURED ON A RECURRING BASIS
Portfolio loans		—		—	$	187	$	187
Total assets on a recurring basis at fair value		—		—	$	187	$	187
December 31, 2014 in millions	Level 1		Level 2		Level 3		Total
ASSETS MEASURED ON A RECURRING BASIS
Portfolio loans		—		—	$	191	$	191
Total assets on a recurring basis at fair value		—		—	$	191	$	191
March 31, 2014 in millions	Level 1		Level 2		Level 3		Total
ASSETS MEASURED ON A RECURRING BASIS
Portfolio loans		—		—	$	143	$	143
Trust loans		—		—		1,893		1,893
Trust other assets		—		—		19		19
Total assets on a recurring basis at fair value		—		—	$	2,055	$	2,055
LIABILITIES MEASURED ON A RECURRING BASIS
Trust securities		—		—	$	1,796	$	1,796
Trust other liabilities		—		—		20		20
Total liabilities on a recurring basis at fair value		—		—	$	1,816	$	1,816

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The following table shows the change in the fair values of the Level 3 consolidated education loan securitization trusts and portfolio loans for the three-month periods ended March 31, 2015, and March 31, 2014.

in millions	Portfolio Student Loans			Trust Student Loans			Trust Other Assets			Trust Securities			Trust Other Liabilities
Balance at December 31, 2014	$	191			—			—			—			—
Gains (losses) recognized in earnings (a)		3			—			—			—			—
Purchases		—			—			—			—			—
Sales		—			—			—			—			—
Settlements		(7	)		—			—			—			—
Balance at March 31, 2015 (b)	$	187			—			—			—			—
Balance at December 31, 2013	$	147		$	1,960		$	20		$	1,834		$	20
Gains (losses) recognized in earnings (a)		—			2			—			16			—
Purchases		—			—			—			—			—
Sales		—			—			—			—			—
Settlements		(4	)		(69	)		(1	)		(54	)		—
Balance at March 31, 2014 (b)	$	143		$	1,893		$	19		$	1,796		$	20

(a) Gains (losses) were driven primarily by fair value adjustments.

(b) There were no issuances, transfers into Level 3, or transfers out of Level 3 for the three-month periods ended March 31, 2015, and March 31, 2014.

Victory Capital Management and Victory Capital Advisors. On July 31, 2013, we completed the sale of Victory to a private equity fund. During March 2014, client consents were secured and assets under management were finalized and, as a result, we recorded an additional after-tax cash gain of $6 million as of March 31, 2014. Since February 21, 2013, when we agreed to sell Victory, we have accounted for this business as a discontinued operation.

The results of this discontinued business are included in “income (loss) from discontinued operations, net of taxes” on the income statement. The components of “income (loss) from discontinued operations, net of taxes” for Victory, which includes the additional gain recorded as of March 31, 2014, on the sale of this business, are as follows:

	Three months ended March 31,
in millions	2015		2014
Net interest income		—	$	1
Noninterest income		—		10
Noninterest expense		—		—
Income (loss) before income taxes		—		11
Income taxes		—		4
Income (loss) from discontinued operations, net of taxes		—	$	7

The discontinued assets and liabilities of Victory included on the balance sheet are as follows:

in millions	March 31, 2015		December 31, 2014		March 31, 2014
Seller note (a)		—		—	$	28
Total assets		—		—	$	28
Accrued expense and other liabilities		—		—		—
Total liabilities		—		—		—

(a) At March 31, 2014, the only remaining asset of Victory was the Seller note. The Seller note was paid off during the fourth quarter of 2014.

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Austin Capital Management, Ltd. In April 2009, we decided to wind down the operations of Austin, a subsidiary that specialized in managing hedge fund investments for institutional customers. As a result, we have accounted for this business as a discontinued operation.

The results of this discontinued business are included in “income (loss) from discontinued operations, net of taxes” on the income statement. The components of “income (loss) from discontinued operations, net of taxes” for Austin are as follows:

	Three months ended March 31,
in millions	2015		2014
Noninterest expense		—	$	4
Income (loss) before income taxes		—		(4	)
Income taxes		—		(2	)
Income (loss) from discontinued operations, net of taxes		—	$	(2	)

The discontinued assets and liabilities of Austin included on the balance sheet are as follows:

in millions	March 31, 2015		December 31, 2014		March 31, 2014
Cash and due from banks	$	15	$	19	$	19
Total assets	$	15	$	19	$	19
Accrued expense and other liabilities		—	$	3	$	3
Total liabilities		—	$	3	$	3

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Combined discontinued operations. The combined results of the discontinued operations are as follows:

	Three months ended March 31,
in millions	2015		2014
Net interest income	$	10	$	24
Provision for credit losses		2		4
Net interest income after provision for credit losses		8		20
Noninterest income		4		(4	)
Noninterest expense		4		10
Income (loss) before income taxes		8		6
Income taxes		3		2
Income (loss) from discontinued operations, net of taxes (a)	$	5	$	4

(a) Includes after-tax charges of $6 million and $9 million for the three-month periods ended March 31, 2015, and March 31, 2014, respectively, determined by applying a matched funds transfer pricing methodology to the liabilities assumed necessary to support the discontinued operations.

The combined assets and liabilities of the discontinued operations are as follows:

in millions	March 31, 2015		December 31, 2014		March 31, 2014
Cash and due from banks	$	15	$	19	$	19
Held-to-maturity securities		1		1		—
Seller note		—		—		28
Trust loans at fair value		—		—		1,893
Portfolio loans at fair value		187		191		143
Loans, net of unearned income (a)		2,032		2,104		2,318
Less: Allowance for loan and lease losses		25		29		34
Net loans		2,194		2,266		4,320
Trust accrued income and other assets at fair value		—		—		19
Accrued income and other assets		36		38		41
Total assets	$	2,246	$	2,324	$	4,427
Trust accrued expense and other liabilities at fair value		—		—	$	20
Accrued expense and other liabilities		—	$	3		3
Trust securities at fair value		—		—		1,796
Total liabilities		—	$	3	$	1,819

(a) At March 31, 2015, December 31, 2014, and March 31, 2014, unearned income was less than $1 million.

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12. Securities Financing Activities

We enter into repurchase and reverse repurchase agreements and securities borrowed transactions (securities financing agreements) primarily to finance our inventory positions, acquire securities to cover short positions, and to settle other securities obligations. We account for these securities financing agreements as collateralized financing transactions. Repurchase and reverse repurchase agreements are recorded on the balance sheet at the amounts at which the securities will be subsequently sold or repurchased. Securities borrowed transactions are recorded on the balance sheet at the amounts of cash collateral advanced. While our securities financing agreements incorporate a right of set off, the assets and liabilities are reported on a gross basis. Repurchase agreements and securities borrowed transactions are included in “Short-term investments” on the balance sheet; reverse repurchase agreements are included in “Federal funds purchased and securities sold under repurchase agreements.”

During the third quarter of 2014, our broker-dealer subsidiary, KeyBanc Capital Markets, Inc. (“KBCM”), moved from a self-clearing organization to using a third-party organization for clearing purposes. In connection with this change, KBCM became an introducing broker-dealer, whereby it no longer needs to fund its business operations by entering into repurchase, reverse repurchase, or securities borrowed agreements. KBCM had no securities financing agreements outstanding at March 31, 2015.

The following table summarizes our securities financing agreements at March 31, 2015, December 31, 2014, and March 31, 2014:

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	March 31, 2015
in millions	Gross Amount Presented in Balance Sheet		Netting Adjustments (a)			Collateral (b)			Net Amounts
Offsetting of financial assets:
Reverse repurchase agreements	$	2	$	(2	)		—			—
Securities borrowed		—		—			—			—
Total	$	2	$	(2	)		—			—
Offsetting of financial liabilities:
Repurchase agreements	$	4	$	(2	)	$	(2	)		—
Total	$	4	$	(2	)	$	(2	)		—
	December 31, 2014
in millions	Gross Amount Presented in Balance Sheet		Netting Adjustments (a)			Collateral (b)			Net Amounts
Offsetting of financial assets:
Reverse repurchase agreements	$	3	$	(1	)	$	(2	)		—
Securities borrowed		—		—			—			—
Total	$	3	$	(1	)	$	(2	)		—
Offsetting of financial liabilities:
Repurchase agreements	$	1	$	(1	)		—			—
Total	$	1	$	(1	)		—			—
	March 31, 2014
in millions	Gross Amount Presented in Balance Sheet		Netting Adjustments (a)			Collateral (b)			Net Amounts
Offsetting of financial assets:
Reverse repurchase agreements	$	442	$	(306	)	$	(126	)	$	10
Securities borrowed		3		—			(3	)		—
Total	$	445	$	(306	)	$	(129	)	$	10
Offsetting of financial liabilities:
Repurchase agreements	$	568	$	(306	)	$	(262	)		—
Total	$	568	$	(306	)	$	(262	)		—

(a) Netting adjustments take into account the impact of master netting agreements that allow us to settle with a single counterparty on a net basis.

(b) These adjustments take into account the impact of bilateral collateral agreements that allow us to offset the net positions with the related collateral. The application of collateral cannot reduce the net position below zero. Therefore, excess collateral, if any, is not reflected above.

Like other financing transactions, securities financing agreements contain an element of credit risk. To mitigate and manage credit risk exposure, we generally enter into master netting agreements and other collateral arrangements that give us the right, in the event of default, to liquidate collateral held and to offset receivables and payables with the same counterparty. Additionally, we establish and monitor limits on our counterparty credit risk exposure by product type. For the reverse repurchase agreements, we monitor the value of the underlying securities we have received from counterparties and either request additional collateral or return a portion of the collateral based on the value of those securities. We generally hold collateral in the form of highly rated securities issued by the U.S. Treasury and fixed income securities. In addition, we may need to provide collateral to counterparties under our repurchase agreements and securities borrowed transactions. In general, the collateral we pledge and receive can be sold or repledged by the secured parties.

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13. Employee Benefits

Pension Plans

Effective December 31, 2009, we amended our cash balance pension plan and other defined benefit plans to freeze all benefit accruals and close the plans to new employees. We will continue to credit participants’ existing account balances for interest until they receive their plan benefits. We changed certain pension plan assumptions after freezing the plans.

The components of net pension cost (benefit) for all funded and unfunded plans are as follows:

	Three months ended March 31,
in millions	2015			2014
Interest cost on PBO	$	10		$	12
Expected return on plan assets		(14	)		(17	)
Amortization of losses		4			4
Net pension cost (benefit)		—		$	(1	)

Other Postretirement Benefit Plans

We sponsor a retiree healthcare plan in which all employees age 55 with five years of service (or employees age 50 with 15 years of service who are terminated under conditions that entitle them to a severance benefit) are eligible to participate. Participant contributions are adjusted annually. We may provide a subsidy toward the cost of coverage for certain employees hired before 2001 with a minimum of 15 years of service at the time of termination. We use a separate VEBA trust to fund the retiree healthcare plan.

The components of net postretirement benefit cost for all funded and unfunded plans are as follows:

	Three months ended March 31,
in millions	2015			2014
Interest cost on APBO	$	1		$	1
Expected return on plan assets		(1	)		(1	)
Net postretirement benefit cost		—			—

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14. Trust Preferred Securities Issued by Unconsolidated Subsidiaries

We own the outstanding common stock of business trusts formed by us that issued corporation-obligated mandatorily redeemable trust preferred securities. The trusts used the proceeds from the issuance of their trust preferred securities and common stock to buy debentures issued by KeyCorp. These debentures are the trusts’ only assets; the interest payments from the debentures finance the distributions paid on the mandatorily redeemable trust preferred securities.

We unconditionally guarantee the following payments or distributions on behalf of the trusts:

• required distributions on the trust preferred securities;

• the redemption price when a capital security is redeemed; and

• the amounts due if a trust is liquidated or terminated.

The Regulatory Capital Rules, discussed in “Supervision and regulation” in Item 2 of this report, implement a phase-out of trust preferred securities as Tier 1 capital, consistent with the requirements of the Dodd-Frank Act. For “standardized approach” banking organizations such as Key, the phase-out period began on January 1, 2015, and by 2016 will require us to treat our mandatorily redeemable trust preferred securities as Tier 2 capital.

As of March 31, 2015, the trust preferred securities issued by the KeyCorp capital trusts represent $85 million, or .9%, of our total qualifying Tier 1 capital, net of goodwill.

The trust preferred securities, common stock, and related debentures are summarized as follows:

dollars in millions	Trust Preferred Securities, Net of Discount (a)		Common Stock		Principal Amount of Debentures, Net of Discount (b)		Interest Rate of Trust Preferred Securities and Debentures (c)			Maturity of Trust Preferred Securities and Debentures
March 31, 2015
KeyCorp Capital I	$	156	$	6	$	162		.995	%		2028
KeyCorp Capital II		112		4		116		6.875			2029
KeyCorp Capital III		146		4		150		7.750			2029
Total	$	414	$	14	$	428		4.968	%		—
December 31, 2014	$	408	$	14	$	422		4.926	%		—
March 31, 2014	$	391	$	14	$	405		4.823	%		—

(a) The trust preferred securities must be redeemed when the related debentures mature, or earlier if provided in the governing indenture. Each issue of trust preferred securities carries an interest rate identical to that of the related debenture. Certain trust preferred securities include basis adjustments related to fair value hedges totaling $74 million at March 31, 2015, $68 million at December 31, 2014, and $51 million at March 31, 2014. See Note 7 (“Derivatives and Hedging Activities”) for an explanation of fair value hedges.

(b) We have the right to redeem these debentures. If the debentures purchased by KeyCorp Capital I are redeemed before they mature, the redemption price will be the principal amount, plus any accrued but unpaid interest. If the debentures purchased by KeyCorp Capital II or KeyCorp Capital III are redeemed before they mature, the redemption price will be the greater of: (i) the principal amount, plus any accrued but unpaid interest, or (ii) the sum of the present values of principal and interest payments discounted at the Treasury Rate (as defined in the applicable indenture), plus 20 basis points for KeyCorp Capital II or 25 basis points for KeyCorp Capital III or 50 basis points in the case of redemption upon either a tax or a capital treatment event for either KeyCorp Capital II or KeyCorp Capital III, plus any accrued but unpaid interest. The principal amount of certain debentures includes basis adjustments related to fair value hedges totaling $74 million at March 31, 2015, $68 million at December 31, 2014, and $51 million at March 31, 2014. See Note 7 for an explanation of fair value hedges. The principal amount of debentures, net of discounts, is included in “long-term debt” on the balance sheet.

(c) The interest rates for the trust preferred securities issued by KeyCorp Capital II and KeyCorp Capital III are fixed. KeyCorp Capital I has a floating interest rate, equal to three-month LIBOR plus 74 basis points, that reprices quarterly. The total interest rates are weighted-average rates.

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15. Contingent Liabilities and Guarantees

Legal Proceedings

See Note 20 (“Commitments, Contingent Liabilities and Guarantees”) under the heading “Legal Proceedings” on page 206 of our 2014 Form 10-K for a description of a proceeding styled In re: Checking Account Overdraft Litigation.

Other litigation. From time to time, in the ordinary course of business, we and our subsidiaries are subject to various other litigation, investigations, and administrative proceedings. Private, civil litigations may range from individual actions involving a single plaintiff to putative class action lawsuits with potentially thousands of class members. Investigations may involve both formal and informal proceedings, by both government agencies and self-regulatory bodies. These other matters may involve claims for substantial monetary relief. At times, these matters may present novel claims or legal theories. Due to the complex nature of these various other matters, it may be years before some matters are resolved. While it is impossible to ascertain the ultimate resolution or range of financial liability, based on information presently known to us, we do not believe there is any other matter to which we are a party, or involving any of our properties that, individually or in the aggregate, would reasonably be expected to have a material adverse effect on our financial condition. We continually monitor and reassess the potential materiality of these other litigation matters. We note, however, that in light of the inherent uncertainty in legal proceedings there can be no assurance that the ultimate resolution will not exceed established reserves. As a result, the outcome of a particular matter, or a combination of matters, may be material to our results of operations for a particular period, depending upon the size of the loss or our income for that particular period.

Guarantees

We are a guarantor in various agreements with third parties. The following table shows the types of guarantees that we had outstanding at March 31, 2015. Information pertaining to the basis for determining the liabilities recorded in connection with these guarantees is included in Note 1 (“Summary of Significant Accounting Policies”) under the heading “Guarantees” beginning on page 124 of our 2014 Form 10-K.

March 31, 2015 in millions	Maximum Potential Undiscounted Future Payments		Liability Recorded
Financial guarantees:
Standby letters of credit	$	11,426	$	64
Recourse agreement with FNMA		1,547		4
Return guarantee agreement with LIHTC investors		4		4
Written put options (a)		2,139		128
Total	$	15,116	$	200

(a) The maximum potential undiscounted future payments represent notional amounts of derivatives qualifying as guarantees.

We determine the payment/performance risk associated with each type of guarantee described below based on the probability that we could be required to make the maximum potential undiscounted future payments shown in the preceding table. We use a scale of low (0-30% probability of payment), moderate (31-70% probability of payment), or high (71-100% probability of payment) to assess the payment/performance risk, and have determined that the payment/performance risk associated with each type of guarantee outstanding at March 31, 2015, is low.

Standby letters of credit. KeyBank issues standby letters of credit to address clients’ financing needs. These instruments obligate us to pay a specified third party when a client fails to repay an outstanding loan or debt instrument or fails to perform some contractual nonfinancial obligation. Any amounts drawn under standby letters of credit are treated as loans to the client; they bear interest (generally at variable rates) and pose the same credit risk to us as a loan. At March 31, 2015, our standby letters of credit had a remaining weighted-average life of 3 years, with remaining actual lives ranging from less than one year to as many as 12 years.

Recourse agreement with FNMA. We participate as a lender in the FNMA Delegated Underwriting and Servicing program. FNMA delegates responsibility for originating, underwriting, and servicing mortgages, and we assume a limited portion of the risk of loss during the remaining term on each commercial mortgage loan that we sell to FNMA. We maintain a reserve for such potential losses in an amount that we believe approximates the fair value of our liability. At March 31, 2015, the outstanding commercial mortgage loans in this program had a weighted-average remaining term of 7.5 years, and the unpaid

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principal balance outstanding of loans sold by us as a participant was $5.1 billion. As shown in the preceding table, the maximum potential amount of undiscounted future payments that we could be required to make under this program is equal to approximately one-third of the principal balance of loans outstanding at March 31, 2015. If we are required to make a payment, we would have an interest in the collateral underlying the related commercial mortgage loan; any loss we incur could be offset by the amount of any recovery from the collateral.

Return guarantee agreement with LIHTC investors. KAHC, a subsidiary of KeyBank, offered limited partnership interests to qualified investors. Partnerships formed by KAHC invested in low-income residential rental properties that qualify for federal low-income housing tax credits under Section 42 of the Internal Revenue Code. In certain partnerships, investors paid a fee to KAHC for a guaranteed return that is based on the financial performance of the property and the property’s confirmed LIHTC status throughout a 15-year compliance period. Typically, KAHC fulfills these guaranteed returns by distributing tax credits and deductions associated with the specific properties. If KAHC defaults on its obligation to provide the guaranteed return, KeyBank is obligated to make any necessary payments to investors. No recourse or collateral is available to offset our guarantee obligation other than the underlying income streams from the properties and the residual value of the operating partnership interests.

As shown in the previous table, KAHC maintained a reserve in the amount of $4 million at March 31, 2015, which is sufficient to cover estimated future obligations under the guarantees. The maximum exposure to loss reflected in the table represents undiscounted future payments due to investors for the return on and of their investments.

These guarantees have expiration dates that extend through 2018, but KAHC has not formed any new partnerships under this program since October 2003. Additional information regarding these partnerships is included in Note 9 (“Variable Interest Entities”).

Written put options. In the ordinary course of business, we “write” put options for clients that wish to mitigate their exposure to changes in interest rates and commodity prices. At March 31, 2015, our written put options had an average life of 2 years. These instruments are considered to be guarantees, as we are required to make payments to the counterparty (the client) based on changes in an underlying variable that is related to an asset, a liability, or an equity security that the client holds. We are obligated to pay the client if the applicable benchmark interest rate or commodity price is above or below a specified level (known as the “strike rate”). These written put options are accounted for as derivatives at fair value, as further discussed in Note 7 (“Derivatives and Hedging Activities”). We mitigate our potential future payment obligations by entering into offsetting positions with third parties.

Written put options where the counterparty is a broker-dealer or bank are accounted for as derivatives at fair value but are not considered guarantees since these counterparties typically do not hold the underlying instruments. In addition, we are a purchaser and seller of credit derivatives, which are further discussed in Note 7.

Default guarantees. Some lines of business participate in guarantees that obligate us to perform if the debtor (typically a client) fails to satisfy all of its payment obligations to third parties. We generally undertake these guarantees for one of two possible reasons: (i) either the risk profile of the debtor should provide an investment return, or (ii) we are supporting our underlying investment in the debtor. We do not hold collateral for the default guarantees. If we were required to make a payment under a guarantee, we would receive a pro rata share should the third party collect some or all of the amounts due from the debtor. At March 31, 2015, we did not have any default guarantees.

Other Off-Balance Sheet Risk

Other off-balance sheet risk stems from financial instruments that do not meet the definition of a guarantee as specified in the applicable accounting guidance, and from other relationships.

Indemnifications provided in the ordinary course of business. We provide certain indemnifications, primarily through representations and warranties in contracts that we execute in the ordinary course of business in connection with loan and lease sales and other ongoing activities, as well as in connection with purchases and sales of businesses. We maintain reserves, when appropriate, with respect to liability that reasonably could arise as a result of these indemnities.

Intercompany guarantees. KeyCorp, KeyBank, and certain of our affiliates are parties to various guarantees that facilitate the ongoing business activities of other affiliates. These business activities encompass issuing debt, assuming certain lease and insurance obligations, purchasing or issuing investments and securities, and engaging in certain leasing transactions involving clients.

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16. Accumulated Other Comprehensive Income

Our changes in AOCI for the three months ended March 31, 2015, and March 31, 2014, are as follows:

in millions	Unrealized gains (losses) on securities available for sale			Unrealized gains (losses) on derivative financial instruments			Foreign currency translation adjustment			Net pension and postretirement benefit costs			Total
Balance at December 31, 2014	$	(4	)	$	(8	)	$	22		$	(366	)	$	(356	)
Other comprehensive income before reclassification, net of income taxes		55			45			(13	)		—			87
Amounts reclassified from accumulated other comprehensive income, net of income taxes (a)		—			(13	)		—			3			(10	)
Net current-period other comprehensive income, net of income taxes		55			32			(13	)		3			77
Balance at March 31, 2015	$	51		$	24		$	9		$	(363	)	$	(279	)
Balance at December 31, 2013	$	(63	)	$	(11	)	$	42		$	(320	)	$	(352	)
Other comprehensive income before reclassification, net of income taxes		29			7			—			—			36
Amounts reclassified from accumulated other comprehensive income, net of income taxes (a)		—			(8	)		(2	)		2			(8	)
Net current-period other comprehensive income, net of income taxes		29			(1	)		(2	)		2			28
Balance at March 31, 2014	$	(34	)	$	(12	)	$	40		$	(318	)	$	(324	)

(a) See table below for details about these reclassifications.

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Our reclassifications out of AOCI for the three months ended March 31, 2015, and March 31, 2014, are as follows:

Three months ended March 31, 2015 in millions	Amount Reclassified from Accumulated Other Comprehensive Income			Affected Line Item in the Statement Where Net Income is Presented
Unrealized gains (losses) on derivative financial instruments
Interest rate	$	22		Interest income — Loans
Interest rate		(1	)	Interest expense — Long term debt
		21		Income (loss) from continuing operations before income taxes
		8		Income taxes
	$	13		Income (loss) from continuing operations
Net pension and postretirement benefit costs
Amortization of losses	$	(4	)	Personnel expense
		(4	)	Income (loss) from continuing operations before income taxes
		(1	)	Income taxes
	$	(3	)	Income (loss) from continuing operations
Three months ended March 31, 2014 in millions	Amount Reclassified from Accumulated Other Comprehensive Income			Affected Line Item in the Statement Where Net Income is Presented
Unrealized gains (losses) on derivative financial instruments
Interest rate	$	15		Interest income — Loans
Interest rate		(1	)	Interest expense — Long term debt
		14		Income (loss) from continuing operations before income taxes
		6		Income taxes
	$	8		Income (loss) from continuing operations
Foreign currency translation adjustment
	$	3		Corporate services income
		3		Income (loss) from continuing operations before income taxes
		1		Income taxes
	$	2		Income (loss) from continuing operations
Net pension and postretirement benefit costs
Amortization of losses	$	(4	)	Personnel expense
		(4	)	Income (loss) from continuing operations before income taxes
		(2	)	Income taxes
	$	(2	)	Income (loss) from continuing operations

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17. Shareholders’ Equity

Comprehensive Capital Plan

During the first quarter of 2015, we completed $208 million of common share repurchases under our 2014 capital plan, which expired on March 31, 2015. On March 11, 2015, the Federal Reserve announced that it did not object to our 2015 capital plan submitted as part of the annual CCAR process. The 2015 capital plan includes a common share repurchase program of up to $725 million. Share repurchases under the capital plan have been authorized by our Board and include repurchases to offset issuances of common shares under our employee compensation plans. Common share repurchases under the 2015 capital plan, which began in the second quarter of 2015, are expected to be executed through the second quarter of 2016.

Our 2015 capital plan also proposed an increase in our quarterly common share dividend from $.065 to $.075 per share, which will be evaluated by our Board in May. An additional potential increase in our quarterly common share dividend, up to $.085 per share, will be considered by the Board in 2016 for the fifth quarter of the 2015 capital plan.

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18. Line of Business Results

The specific lines of business that constitute each of the major business segments (operating segments) are described below.

Key Community Bank

Key Community Bank serves individuals and small to mid-sized businesses through its 12-state branch network.

Individuals are provided branch-based deposit and investment products, personal finance services, and loans, including residential mortgages, home equity, credit card, and various types of installment loans. In addition, financial, estate and retirement planning, asset management services, and Delaware Trust capabilities are offered to assist high-net-worth clients with their banking, trust, portfolio management, insurance, charitable giving, and related needs.

Small businesses are provided deposit, investment and credit products, and business advisory services. Mid-sized businesses are provided products and services that include commercial lending, cash management, equipment leasing, investment and employee benefit programs, succession planning, access to capital markets, derivatives, and foreign exchange.

Key Corporate Bank

Key Corporate Bank is a full-service corporate and investment 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. Key Corporate Bank delivers a broad product 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. Key Corporate Bank is also a significant servicer of commercial mortgage loans and a significant special servicer of CMBS. Key Corporate Bank also delivers many of its product capabilities to clients of Key Community Bank.

Other Segments

Other Segments consist of Corporate Treasury, Principal Investing, and various exit portfolios.

Reconciling Items

Total assets included under “Reconciling Items” primarily represent 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 includes intercompany eliminations and certain items that are not allocated to the business segments because they do not reflect their normal operations.

The table on the following pages shows selected financial data for our major business segments for the three-month periods ended March 31, 2015, and March 31, 2014.

The information was derived from the internal financial reporting system that we use to monitor and manage our financial performance. GAAP guides financial accounting, but there is no authoritative guidance for “management accounting” — the way we use our judgment and experience to make reporting decisions. Consequently, the line of business results we report may not be comparable to line of business results presented by other companies.

The selected financial data is based on internal accounting policies designed to compile results on a consistent basis and in a manner that reflects the underlying economics of the businesses. In accordance with our policies:

• Net interest income is determined by assigning a standard cost for funds used or a standard credit for funds provided based on their assumed maturity, prepayment, and/or repricing characteristics.

• Indirect expenses, such as computer servicing costs and corporate overhead, are allocated based on assumptions regarding the extent to which each line of business actually uses the services.

• The consolidated provision for credit losses is allocated among the lines of business primarily based on their actual net loan charge-offs, adjusted periodically for loan growth and changes in risk profile. The amount of the consolidated provision is based on the methodology that we use to estimate our consolidated ALLL. This methodology is described in Note 1 (“Summary of Significant Accounting Policies”) under the heading “Allowance for Loan and Lease Losses” beginning on page 117 of our 2014 Form 10-K.

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• Income taxes are allocated based on the statutory federal income tax rate of 35% and a blended state income tax rate (net of the federal income tax benefit) of 2.2%.

• Capital is assigned to each line of business based on economic equity.

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

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Three months ended March 31,	Key Community Bank						Key Corporate Bank
dollars in millions	2015			2014			2015			2014
SUMMARY OF OPERATIONS
Net interest income (TE)	$	358		$	363		$	213		$	196
Noninterest income		191			183			188			196
Total revenue (TE) (a)		549			546			401			392
Provision for credit losses		29			11			8			(3	)
Depreciation and amortization expense		15			17			10			7
Other noninterest expense		425			419			207			195
Income (loss) from continuing operations before income taxes (TE)		80			99			176			193
Allocated income taxes and TE adjustments		30			37			49			57
Income (loss) from continuing operations		50			62			127			136
Income (loss) from discontinued operations, net of taxes		—			—			—			—
Net income (loss)		50			62			127			136
Less: Net income (loss) attributable to noncontrolling interests		—			—			1			—
Net income (loss) attributable to Key	$	50		$	62		$	126		$	136
AVERAGE BALANCES (b)
Loans and leases	$	30,662		$	29,797		$	24,722		$	21,991
Total assets (a)		32,716			31,918			30,297			27,171
Deposits		50,417			49,910			18,567			15,993
OTHER FINANCIAL DATA
Net loan charge-offs (b)	$	28		$	28		$	(4	)	$	(12	)
Return on average allocated equity (b)		7.38	%		8.97	%		27.44	%		35.65	%
Return on average allocated equity		7.38			8.97			27.44			35.65
Average full-time equivalent employees (c)		7,475			7,698			2,064			1,916

(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.

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Other Segments						Total Segments						Reconciling Items						Key
2015			2014			2015			2014			2015			2014			2015			2014
$	4		$	10		$	575		$	569		$	2			—		$	577		$	569
	63			55			442			434			(5	)	$	1			437			435
	67			65			1,017			1,003			(3	)		1			1,014			1,004
	(3	)		(4	)		34			4			1			2			35			6
	2			3			27			27			37			38			64			65
	13			22			645			636			(40	)		(39	)		605			597
	55			44			311			336			(1	)		—			310			336
	9			7			88			101			(8	)		(3	)		80			98
	46			37			223			235			7			3			230			238
	—			—			—			—			5			4			5			4
	46			37			223			235			12			7			235			242
	1			—			2			—			—			—			2			—
$	45		$	37		$	221		$	235		$	12		$	7		$	233		$	242
$	2,044		$	2,913		$	57,428		$	54,701		$	84		$	45		$	57,512		$	54,746
	25,938			25,908			88,951			84,997			678			660			89,629			85,657
	466			575			69,450			66,478			(81	)		(184	)		69,369			66,294
$	4		$	4		$	28		$	20			—			—		$	28		$	20
	43.98	%		29.14	%		17.84	%		19.59	%		.51	%		.22	%		8.75	%		9.31	%
	43.98			29.14			17.84			19.59			.88			.52			8.94			9.46
	16			72			9,555			9,686			4,036			4,369			13,591			14,055

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Report of Ernst & Young LLP, Independent Registered Public Accounting Firm

The Board of Directors and Shareholders of KeyCorp

We have reviewed the consolidated balance sheets of KeyCorp as of March 31, 2015 and 2014, and the related consolidated statements of income, comprehensive income, changes in equity, and cash flows for the three-month periods ended March 31, 2015 and 2014. These financial statements are the responsibility of KeyCorp’s management.

We conducted our review in accordance with the standards of the Public Company Accounting Oversight Board (United States). A review of interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the Public Company Accounting Oversight Board (United States), the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.

Based on our review, we are not aware of any material modifications that should be made to the consolidated financial statements referred to above for them to be in conformity with U.S. generally accepted accounting principles.

We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated balance sheet of KeyCorp as of December 31, 2014, and the related consolidated statements of income, comprehensive income, changes in equity, and cash flows for the year then ended (not presented herein) and we expressed an unqualified opinion on those consolidated financial statements in our report dated March 2, 2015. In our opinion, the accompanying consolidated balance sheet of KeyCorp as of December 31, 2014, is fairly stated, in all material respects, in relation to the consolidated balance sheet from which it has been derived.

Cleveland, Ohio
May 5, 2015	/s/ Ernst & Young LLP

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Item 2. Management’s Discussion & Analysis of Financial Condition & Results of Operations

Introduction

This section reviews the financial condition and results of operations of KeyCorp and its subsidiaries for the quarterly periods ended March 31, 2015, and March 31, 2014. Some tables may include additional periods to comply with disclosure requirements or to illustrate trends in greater depth. When you read this discussion, you should also refer to the consolidated financial statements and related notes in this report. The page locations of specific sections and notes that we refer to are presented in the table of contents.

References to our “2014 Form 10-K” refer to our Form 10-K for the year ended December 31, 2014, which has been filed with the SEC and is available on its website (www.sec.gov) and on our website (www.key.com/ir).

Terminology

Throughout this discussion, references to “Key,” “we,” “our,” “us,” and similar terms refer to the consolidated entity consisting of KeyCorp and its subsidiaries. “KeyCorp” refers solely to the parent holding company, and “KeyBank” refers to KeyCorp’s subsidiary bank, KeyBank National Association.

We want to explain some industry-specific terms at the outset so you can better understand the discussion that follows.

• We use the phrase continuing operations in this document to mean all of our businesses other than the education lending business, Victory, and Austin. The education lending business and Austin have been accounted for as discontinued operations since 2009. Victory was classified as a discontinued operation in our first quarter 2013 financial reporting as a result of the sale of this business as announced on February 21, 2013, and closed on July 31, 2013.

• Our exit loan portfolios are separate from our discontinued operations. These portfolios, which are in a run-off mode, stem from product lines we decided to cease because they no longer fit with our corporate strategy. These exit loan portfolios are included in Other Segments.

• We engage in capital markets activities primarily through business conducted by our Key Corporate Bank segment. These activities encompass a variety of products and services. Among other things, we trade securities as a dealer, enter into derivative contracts (both to accommodate clients’ financing needs and to mitigate certain risks), and conduct transactions in foreign currencies (both to accommodate clients’ needs and to benefit from fluctuations in exchange rates).

• For regulatory purposes, capital is divided into two classes. Federal regulations currently prescribe that at least one-half of a bank or BHC’s total risk-based capital must qualify as Tier 1 capital. Both total and Tier 1 capital serve as bases for several measures of capital adequacy, which is an important indicator of financial stability and condition. As described under the heading “Regulatory capital and liquidity – Capital planning and stress testing” in the section entitled “Supervision and Regulation” that begins on page 9 of our 2014 Form 10-K, the regulators are required to conduct a supervisory capital assessment of all BHCs with assets of at least $50 billion, including KeyCorp. As part of this capital adequacy review, banking regulators evaluate a component of Tier 1 capital, known as Tier 1 common equity, using the definitions of Tier 1 capital and total risk-weighted assets as in effect in 2014, as well as a transition plan for full implementation of the Regulatory Capital Rules. The section entitled “Capital adequacy” provides more information on total capital, Tier 1 capital, Tier 1 common equity, and the Regulatory Capital Rules, including Common Equity Tier 1, and describes how these measures are calculated.

Additionally, a comprehensive list of the acronyms and abbreviations used throughout this discussion is included in Note 1 (“Basis of Presentation”).

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Selected financial data

Our financial performance for each of the last five quarters is summarized in Figure 1.

Figure 1. Selected Financial Data

	2015			2014
dollars in millions, except per share amounts	First			Fourth			Third			Second			First
FOR THE PERIOD
Interest income	$	636		$	646		$	639		$	639		$	630
Interest expense		65			64			64			66			67
Net interest income		571			582			575			573			563
Provision for credit losses		35			22			19			12			4
Noninterest income		437			490			417			455			435
Noninterest expense		669			704			706			687			664
Income (loss) from continuing operations before income taxes		304			346			267			329			330
Income (loss) from continuing operations attributable to Key		228			251			203			247			238
Income (loss) from discontinued operations, net of taxes (a)		5			2			(17	)		(28	)		4
Net income (loss) attributable to Key		233			253			186			219			242
Income (loss) from continuing operations attributable to Key common shareholders		222			246			197			242			232
Income (loss) from discontinued operations, net of taxes (a)		5			2			(17	)		(28	)		4
Net income (loss) attributable to Key common shareholders		227			248			180			214			236
PER COMMON SHARE
Income (loss) from continuing operations attributable to Key common shareholders	$	.26		$	.29		$	.23		$	.28		$	.26
Income (loss) from discontinued operations, net of taxes (a)		.01			—			(.02	)		(.03	)		—
Net income (loss) attributable to Key common shareholders (b)		.27			.29			.21			.24			.27
Income (loss) from continuing operations attributable to Key common shareholders — assuming dilution	$	.26		$	.28		$	.23		$	.27		$	.26
Income (loss) from discontinued operations, net of taxes — assuming dilution (a)		.01			—			(.02	)		(.03	)		—
Net income (loss) attributable to Key common shareholders — assuming dilution (b)		.26			.28			.21			.24			.26
Cash dividends paid		.065			.065			.065			.065			.055
Book value at period end		12.12			11.91			11.74			11.65			11.43
Tangible book value at period end		10.84			10.65			10.47			10.50			10.28
Market price:
High		14.74			14.18			14.62			14.59			14.70
Low		12.04			11.55			12.97			12.90			12.25
Close		14.16			13.90			13.33			14.33			14.24
Weighted-average common shares outstanding (000)		848,580			858,811			867,350			875,298			884,727
Weighted-average common shares and potential common shares outstanding (000) (c)		857,122			886,186			874,122			902,137			891,890
AT PERIOD END
Loans	$	57,953		$	57,381		$	56,155		$	55,600		$	55,445
Earning assets		82,624			82,269			78,310			78,457			77,692
Total assets		94,206			93,821			89,784			91,798			90,802
Deposits		71,622			71,998			68,456			67,799			67,266
Long-term debt		8,713			7,875			7,172			8,213			7,712
Key common shareholders’ equity		10,313			10,239			10,195			10,213			10,112
Key shareholders’ equity		10,603			10,530			10,486			10,504			10,403
PERFORMANCE RATIOS — FROM CONTINUING OPERATIONS
Return on average total assets		1.03	%		1.12	%		.92	%		1.14	%		1.13	%
Return on average common equity		8.76			9.50			7.68			9.55			9.33
Return on average tangible common equity (d)		9.80			10.64			8.55			10.60			10.38
Net interest margin (TE)		2.91			2.94			2.96			2.98			3.00
Cash efficiency ratio (d)		65.1			64.4			69.7			65.6			65.1
PERFORMANCE RATIOS — FROM CONSOLIDATED OPERATIONS
Return on average total assets		1.03	%		1.10	%		.81	%		.96	%		1.09	%
Return on average common equity		8.96			9.58			7.01			8.44			9.50
Return on average tangible common equity (d)		10.02			10.72			7.81			9.37			10.56
Net interest margin (TE)		2.88			2.93			2.94			2.94			2.95
Loan-to-deposit (e)		86.9			84.6			87.4			87.1			87.5
CAPITAL RATIOS AT PERIOD END
Key shareholders’ equity to assets		11.26	%		11.22	%		11.68	%		11.44	%		11.46	%
Key common shareholders’ equity to assets		10.95			10.91			11.36			11.13			11.14
Tangible common equity to tangible assets (d)		9.92			9.88			10.26			10.15			10.14
Common Equity Tier 1 (d)		10.64			N/A			N/A			N/A			N/A
Tier 1 common equity (d)		N/A			11.17			11.26			11.25			11.27
Tier 1 risk-based capital		11.04			11.90			12.01			11.99			12.01
Total risk-based capital		12.79			13.89			14.10			14.14			14.23
Leverage		10.91			11.26			11.15			11.24			11.30
TRUST AND BROKERAGE ASSETS
Assets under management	$	39,281		$	39,157		$	39,283		$	39,669		$	38,893
Nonmanaged and brokerage assets		49,508			49,147			48,273			48,728			47,396
OTHER DATA
Average full-time-equivalent employees		13,591			13,590			13,905			13,867			14,055
Branches		992			994			997			1,009			1,027

(a) In April 2009, we decided to wind down the operations of Austin, a subsidiary that specialized in managing hedge fund investments for institutional customers. In September 2009, we decided to discontinue the education lending business conducted through Key Education Resources, the education payment and financing unit of KeyBank. In February 2013, we decided to sell Victory to a private equity fund. As a result of these decisions, we have accounted for these businesses as discontinued operations. For further discussion regarding the income (loss) from discontinued operations, see Note 11 (“Acquisitions and Discontinued Operations”).

(b) EPS may not foot due to rounding.

(c) Assumes conversion of common share options and other stock awards and/or convertible preferred stock, as applicable.

(d) See Figure 7 entitled “GAAP to Non-GAAP Reconciliations,” which presents the computations of certain financial measures related to “tangible common equity,” “Common Equity Tier 1” (compliance date of January 1, 2015, under the Regulatory Capital Rules), “Tier 1 common equity” (prior to January 1, 2015), and “cash efficiency.” The table reconciles the GAAP performance measures to the corresponding non-GAAP measures, which provides a basis for period-to-period comparisons.

(e) Represents period-end consolidated total loans and loans held for sale (excluding education loans in the securitizations trusts for periods prior to September 30, 2014) divided by period-end consolidated total deposits (excluding deposits in foreign office).

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Forward-looking statements

From time to time, we have made or will make forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements do not relate strictly to historical or current facts. Forward-looking statements usually can be identified by the use of words such as “goal,” “objective,” “plan,” “expect,” “assume,” “anticipate,” “intend,” “project,” “believe,” “estimate,” or other words of similar meaning. Forward-looking statements provide our current expectations or forecasts of future events, circumstances, results or aspirations. Our disclosures in this report contain forward-looking statements. We may also make forward-looking statements in other documents filed with or furnished to the SEC. In addition, we may make forward-looking statements orally to analysts, investors, representatives of the media, and others.

Forward-looking statements, by their nature, are subject to assumptions, risks, and uncertainties, many of which are outside of our control. Our actual results may differ materially from those set forth in our forward-looking statements. There is no assurance that any list of risks and uncertainties or risk factors is complete. Factors that could cause our actual results to differ from those described in forward-looking statements include, but are not limited to:

• deterioration of commercial real estate market fundamentals;

• defaults by our loan counterparties or clients;

• adverse changes in credit quality trends;

• declining asset prices;

• our concentrated credit exposure in commercial, financial and agricultural loans;

• the extensive and increasing regulation of the U.S. financial services industry;

• changes in accounting policies, standards, and interpretations;

• breaches of security or failures of our technology systems due to technological or other factors and cybersecurity threats;

• operational or risk management failures by us or critical third parties;

• negative outcomes from claims or litigation;

• the occurrence of natural or man-made disasters or conflicts or terrorist attacks;

• increasing capital and liquidity standards under applicable regulatory rules;

• unanticipated changes in our liquidity position, including but not limited to, changes in the cost of liquidity, our ability to enter the financial markets, and to secure alternative funding sources;

• our ability to receive dividends from our subsidiary, KeyBank;

• downgrades in our credit ratings or those of KeyBank;

• a reversal of the U.S. economic recovery due to financial, political, or other shocks;

• our ability to anticipate interest rate changes and manage interest rate risk;

• deterioration of economic conditions in the geographic regions where we operate;

• the soundness of other financial institutions;

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• our ability to attract and retain talented executives and employees and to manage our reputational risks;

• our ability to timely and effectively implement our strategic initiatives;

• increased competitive pressure due to industry consolidation;

• unanticipated adverse effects of strategic partnerships or acquisitions and dispositions of assets or businesses; and

• our ability to develop and effectively use the quantitative models we rely upon in our business planning.

Any forward-looking statements made by us or on our behalf speak only as of the date they are made, and we do not undertake any obligation to update any forward-looking statement to reflect the impact of subsequent events or circumstances. Before making an investment decision, you should carefully consider all risks and uncertainties disclosed in our SEC filings, including this report on Form 10-Q and our subsequent reports on Forms 8-K, 10-Q, and 10-K, and our registration statements under the Securities Act of 1933, as amended, all of which are or will upon filing be accessible on the SEC’s website at www.sec.gov and on our website at www.key.com/ir.

Economic overview

The economy faltered at the beginning of 2015, with real GDP of .2% in the first quarter. While confidence has improved, strong job growth has yet to translate to substantial wage growth, and consumer spending remains weak. Additionally, housing market data has been disappointing, with slow growth in residential construction and only modest improvement year-over-year in sales of new and existing homes. Geopolitical tensions, prospective Federal Reserve actions, and mixed economic data for the most part kept markets in check throughout the first quarter of 2015.

In the first quarter of 2015, harsh winter weather and weak income growth remained important constraints on consumption, although fundamentals appear to be strengthening. Real spending declined in January and February 2015, continuing the trend from December 2014, led by decreases in sales at gasoline stations (due to lower gasoline prices). Vehicle sales declined to an average of 16.2 million units in February 2015 before picking up to 17.1 million units at the end of the first quarter, up from 16.8 million units at the end of 2014. Consumer confidence improved, with the Conference Board measure ending the first quarter of 2015 at 101.3, up almost eight points over the quarter and reaching levels not seen since the Great Recession. Inflation remains well below the Federal Reserve target, with the core personal consumption expenditure index up just 1.4% year-over-year as of February 2015.

In the labor market, average monthly job gains declined to 197,000 during the first quarter of 2015, compared to the robust average of 324,000 in the fourth quarter of 2014. Gains, however, were broad, with improvement across industry sectors. The unemployment rate declined, finishing the first quarter of 2015 at 5.5%, driven in part by very weak labor force growth.

The housing market improved modestly but remains mixed, with different results between indicators on a month-to-month basis. Existing home sales increased modestly from the end of 2014, ending the first quarter of 2015 at 5.2 million units, slightly above year-ago levels. New home sales ended the first quarter of 2015 3% lower than the end of 2014, but with a 19% year-over-year increase. Housing starts have yet to pick up, totaling a seasonally adjusted annual rate of 926,000 in March 2015, down 3% year-over-year and missing estimates significantly. Permits showed modest improvement in March 2015, increasing 3% over the previous year. Home price appreciation remains slow, up only 5.6% year-over-year in February 2015.

The Federal Reserve remained accommodative in the first quarter of 2015, continuing to reinvest principal payments to ease financial conditions. Forward guidance is unclear as to when the Federal Open Market Committee will raise the federal funds target rate, as economic data and inflation measures remain weaker than their established targets. Weaker economic data, geopolitical tensions, and cautious forward guidance have held rates in check. The yield on the 10-year U.S. Treasury dropped 17 basis points in the first week of 2015 to 1.94%, and finished the first quarter of 2015 at 1.92% as the outlook remained unchanged.

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Long-term financial goals

Our long-term financial goals are as follows:

• Improve balance sheet efficiency by targeting a loan-to-deposit ratio range of 90% to 100%;

• Maintain a moderate risk profile by targeting a net loan charge-off ratio and provision for credit losses ratio in the range of .40% to .60%;

• Grow high quality and diverse revenue streams by targeting a net interest margin in excess of 3.50%, and a ratio of noninterest income to total revenue of greater than 40%;

• Generate positive operating leverage and target a cash efficiency ratio of less than 60%; and

• Maintain disciplined capital management and target a return on average assets in the range of 1.00% to 1.25%.

Figure 2 shows the evaluation of our long-term financial goals for the three months ended March 31, 2015.

Figure 2. Evaluation of Our Long-Term Financial Goals

KEY Business Model	Key Metrics (a)	1Q15			Targets
Balance sheet efficiency	Loan-to-deposit ratio (b)		87	%		90 - 100	%
Moderate risk profile	NCOs to average loans		.20	%
	Provision for credit losses to average loans		.25	%		.40 - .60	%
High quality, diverse revenue streams	Net interest margin		2.91	%		> 3.50	%
	Noninterest income to total revenue		43	%		> 40	%
Positive operating leverage	Cash efficiency ratio (c)		65.1	%		< 60	%
Disciplined capital management	Return on average assets		1.03	%		1.00 - 1.25	%

(a) Calculated from continuing operations, unless otherwise noted.

(b) Represents period-end consolidated total loans and loans held for sale divided by period-end consolidated total deposits (excluding deposits in foreign office).

(c) Excludes intangible asset amortization; Non-GAAP measures: see Figure 7 for reconciliation.

Strategic developments

We initiated the following actions during the first three months of 2015 to support our corporate strategy described in the “Introduction” section under the “Corporate strategy” heading on page 36 of our 2014 Form 10-K.

• We continue to focus on growing our businesses and remain committed to improving productivity and efficiency. Revenue was up from 2014, and expenses were well-managed, generating positive operating leverage. Net interest income benefited from solid loan growth, driven by an 11.5% increase in average commercial, financial and agricultural loans. Noninterest income benefited from an increase in trust and investment services income primarily due to the impact of the third quarter 2014 acquisition of Pacific Crest Securities.

• Our strong risk management practices and a more favorable credit environment resulted in another quarter of solid credit quality trends. For the three months ended March 31, 2015, net loan charge-offs were .20% of average loans, well below our targeted range, and nonperforming assets decreased 2.6% from the year-ago period.

• During the first quarter of 2015, we completed $208 million of common share repurchases under our 2014 capital plan authorization, which expired on March 31, 2015, and paid a cash dividend of $.065 per common share.

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• Capital management remains a priority for the remainder of 2015. On March 11, 2015, the Federal Reserve announced that it did not object to our 2015 capital plan submitted as part of the annual CCAR process. The 2015 capital plan includes a common share repurchase program of up to $725 million, including repurchases to offset issuance of common shares under our employee compensation plans. Common share repurchases under the 2015 capital plan, which began in the second quarter of 2015, are expected to be executed through the second quarter of 2016. Our 2015 capital plan also proposed a 15% increase in our quarterly common share dividend to $.075 per share, subject to Board approval. We anticipate these actions will lead to an estimated payout ratio that is among the highest in our peer group for the third consecutive year. An additional potential increase in our quarterly common share dividend, up to $.085 per share, will be considered by the Board in 2016 for the fifth quarter of the 2015 capital plan.

Demographics

We have two major business segments: Key Community Bank and Key Corporate Bank.

Key Community Bank serves individuals and small to mid-sized businesses by offering a variety of deposit, investment, lending, credit card, and personalized wealth management products and business advisory services. These products and services are provided through our relationship managers and specialists working in our 12-state branch network, which is organized into eight internally defined geographic regions: Pacific, Rocky Mountains, Indiana, Western Ohio and Michigan, Eastern Ohio, Western New York, Eastern New York, and New England.

Figure 3 shows the geographic diversity of Key Community Bank’s average deposits, commercial loans, and home equity loans.

Figure 3. Key Community Bank Geographic Diversity

	Geographic Region
Three months ended March 31, 2015 dollars in millions	Pacific			Rocky Mountains			Indiana			West Ohio/ Michigan			East Ohio			Western New York			Eastern New York			New England			NonRegion (a)			Total
Average deposits	$	11,663		$	5,167		$	2,331		$	4,363		$	9,199		$	4,912		$	7,734		$	2,874		$	2,174		$	50,417
Percent of total		23.1	%		10.3	%		4.6	%		8.7	%		18.3	%		9.7	%		15.3	%		5.7	%		4.3	%		100.0	%
Average commercial loans	$	3,442		$	1,699		$	815		$	1,153		$	2,290		$	633		$	1,842		$	816		$	3,219		$	15,909
Percent of total		21.6	%		10.7	%		5.1	%		7.3	%		14.4	%		4.0	%		11.6	%		5.1	%		20.2	%		100.0	%
Average home equity loans	$	3,282		$	1,580		$	493		$	841		$	1,263		$	825		$	1,281		$	654		$	97		$	10,316
Percent of total		31.8	%		15.3	%		4.8	%		8.2	%		12.2	%		8.0	%		12.4	%		6.4	%		.9	%		100.0	%

(a) Represents average deposits, commercial loan products, and home equity loan products centrally managed outside of our eight Key Community Bank regions.

Key Corporate Bank is a full-service corporate and investment 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. Key Corporate Bank delivers a broad product 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. Key Corporate Bank is also a significant servicer of commercial mortgage loans and a significant special servicer of CMBS. Key Corporate Bank delivers many of its product capabilities to clients of Key Community Bank.

Further information regarding the products and services offered by our Key Community Bank and Key Corporate Bank segments is included in this report in Note 18 (“Line of Business Results”).

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Supervision and regulation

Regulatory reform developments

On July 21, 2010, the Dodd-Frank Act became law. It was intended to address perceived deficiencies and gaps in the regulatory framework for financial services in the U.S., reduce the risks of bank failures, better equip the nation’s regulators to guard against or mitigate any future financial crises, and manage systemic risk through increased supervision of bank and nonbank SIFIs, such as KeyCorp and KeyBank. Further discussion concerning the Dodd-Frank Act, related regulatory developments, and the risks that they present to Key is available under the heading “Supervision and Regulation” in Item 1. Business and under the heading “II. Compliance Risks” in Item 1A. Risk Factors of our 2014 Form 10-K. Many proposed rules referenced in our prior reports remain pending. The following discussion provides a summary of relevant regulatory developments relating to the Dodd-Frank Act or that relate to our results this quarter.

Regulatory capital rules

In October 2013, federal banking regulators published the final Basel III capital framework for U.S. banking organizations (the “Regulatory Capital Rules”). The Regulatory Capital Rules generally implement in the U.S. the Basel III capital framework published by the Basel Committee in December 2010 and revised in June 2011 (the “Basel III capital framework”). The Basel III capital framework and the U.S. implementation of the Basel III capital framework are discussed in more detail in Item 1. Business of our 2014 Form 10-K under the heading “Supervision and Regulation—Basel III capital and liquidity frameworks.”

While the Regulatory Capital Rules became effective on January 1, 2014, the mandatory compliance date for Key as a “standardized approach” banking organization was January 1, 2015, subject to transitional provisions extending to January 1, 2019.

New minimum capital and leverage ratio requirements

Under the Regulatory Capital Rules, “standardized approach” banking organizations, like Key, are required to meet the minimum capital and leverage ratios set forth in Figure 4 below. At March 31, 2015, Key had an estimated Common Equity Tier 1 Capital Ratio of 10.5% under the Regulatory Capital Rules. Also at March 31, 2015, based on the fully phased-in Regulatory Capital Rules, Key estimates that its capital and leverage ratios, after adjustment for market risk, would be as set forth in Figure 4.

Figure 4. Estimated Ratios vs. Minimum Capital Ratios Calculated Under the Fully Phased-In Regulatory Capital Rules

Ratios (including Capital conservation buffer)	Key March 31, 2015 Estimated			Minimum January 1, 2015			Phase-in Period	Minimum January 1, 2019
Common Equity Tier 1 (a)		10.5	%		4.5	%	None		4.5	%
Capital conservation buffer (b)		—			—		1/1/16 - 1/1/19		2.5
Common Equity Tier 1 + Capital conservation buffer		—			4.5		1/1/16 - 1/1/19		7.0
Tier 1 Capital		10.8			6.0		None		6.0
Tier 1 Capital + Capital conservation buffer		—			6.0		1/1/16 - 1/1/19		8.5
Total Capital		12.7			8.0		None		8.0
Total Capital + Capital conservation buffer		—			8.0		1/1/16 - 1/1/19		10.5
Leverage (c)		10.8			4.0		None		4.0

(a) See Figure 7 entitled “GAAP to Non-GAAP Reconciliations,” which presents the computation for estimated Common Equity Tier 1. The table reconciles the GAAP performance measure to the corresponding non-GAAP measure, which provides a basis for period-to-period comparisons.

(b) Capital conservation buffer must consist of Common Equity Tier 1 capital. As a standardized approach banking organization, KeyCorp is not subject to the countercyclical capital buffer of up to 2.5% imposed upon an advanced approaches banking organization under the Regulatory Capital Rules.

(c) As a standardized approach banking organization, KeyCorp is not subject to the 3% supplemental leverage ratio requirement, which becomes effective January 1, 2018. Because KeyCorp has less than $700 billion in consolidated total assets and less than $10 trillion in assets under custody, KeyCorp is not subject to the supplemental leverage buffer requirement of at least 2%, which becomes effective January 1, 2018.

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Revised prompt corrective action capital category ratios

Under the Regulatory Capital Rules, the prompt corrective action capital category threshold ratios applicable to FDIC-insured depository institutions such as KeyBank were revised effective January 1, 2015. Figure 5 identifies the capital category threshold ratios for a “well capitalized” and an “adequately capitalized” institution under the Regulatory Capital Rules.

Figure 5. “Well Capitalized” and “Adequately Capitalized” Capital Category Ratios under Revised Prompt

Corrective Action Rules

Prompt Corrective Action	Capital Category
Ratio	Well Capitalized(a)			Adequately Capitalized
Common Equity Tier 1 Risk-Based		6.5	%		4.5	%
Tier 1 Risk-Based		8.0			6.0
Total Risk-Based		10.0			8.0
Tier 1 Leverage (b)		5.0			4.0

(a) A “well capitalized” institution also must not be subject to any written agreement, order or directive to meet and maintain a specific capital level for any capital measure.

(b) As a standardized approach banking organization, KeyBank is not subject to the 3% supplemental leverage ratio requirement, which becomes effective January 1, 2018.

As of March 31, 2015, KeyBank meets all “well capitalized” capital adequacy requirements under the Regulatory Capital Rules.

Liquidity coverage ratio

In October 2014, federal banking agencies published the final Basel III liquidity framework for U.S. banking organizations (the “Liquidity Coverage Rules”) that create a minimum liquidity coverage ratio (“LCR”) for certain internationally active bank and nonbank financial companies (excluding KeyCorp) and a modified version of the LCR (“Modified LCR”) for bank holding companies and other depository institution holding companies with over $50 billion in consolidated assets that are not internationally active (including KeyCorp).

As a Modified LCR bank holding company under the Liquidity Coverage Rules, Key will be required to maintain high-quality liquid assets of at least 100% of its total net cash outflow amount determined by prescribed assumptions in a standardized hypothetical stress scenario over a 30-calendar day period. Implementation for Modified LCR banking organizations, like Key, will begin on January 1, 2016, with a minimum requirement of 90% coverage, reaching 100% coverage by January 1, 2017. Throughout March 2015, our estimated Modified LCR was approximately in the high-80% range. To reach the minimum of 90% by January 1, 2016, and to operate with a cushion above the minimum required level, we may change the composition of our investment portfolio, increase the size of the overall investment portfolio, and modify product offerings.

KeyBank will not be subject to the LCR or the Modified LCR under the Liquidity Coverage Rules unless the OCC affirmatively determines that application to KeyBank is appropriate in light of its asset size, level of complexity, risk profile, scope of operations, affiliation with foreign or domestic covered entities, or risk to the financial system.

Highlights of Our Performance

Financial performance

For the first quarter of 2015, we announced net income from continuing operations attributable to Key common shareholders of $222 million, or $.26 per common share. Our first quarter of 2015 results compare to net income from continuing operations attributable to Key common shareholders of $232 million, or $.26 per common share, for the first quarter of 2014.

Our taxable-equivalent net interest income was $577 million for the first quarter of 2015, and the net interest margin was 2.91%. These results compare to taxable-equivalent net interest income of $569 million and a net interest margin of 3.00% for the first quarter of 2014. The increase in net interest income reflects higher loan balances mitigated by lower earning asset yields, which also drove the decline in the net interest margin. For the full year of 2015, we expect net interest income and net interest margin to benefit from anticipated higher rates, with net interest income growth in the low- to mid-single-digit percentage range compared to 2014 and net interest margin to be stable to slightly higher later in 2015.

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Our noninterest income was $437 million for the first quarter of 2015, compared to $435 million for the year-ago quarter. Trust and investment services income increased $11 million, primarily due to the impact of the third quarter 2014 acquisition of Pacific Crest Securities. Increases in net gains from principal investing, corporate-owned life insurance income, cards and payments income, and other income also contributed to the growth in the quarter. These increases were partially offset by a $16 million decline in investment banking and debt placement fees as a result of lower financial advisory fees. Additionally, operating lease income and other leasing gains declined by $10 million primarily due to the termination of a leveraged lease in the prior year. For the full year of 2015, we expect mid-single-digit growth compared to the prior year, including the full-year impact of Pacific Crest Securities.

Our noninterest expense was $669 million for the first quarter of 2015, compared to $664 million in the first quarter of last year. The increase was mainly related to the third quarter 2014 acquisition of Pacific Crest Securities and higher employee benefits costs. Partially offsetting the increase in expenses were $8 million in lower business services and professional fees, as well as continued cost savings across the organization. Additionally, expenses included $7 million in costs associated with our continuous improvement efforts to drive efficiency and productivity. These costs were primarily in personnel expense and were $3 million less than the year-ago quarter. For the full year of 2015, we expect noninterest expense to be relatively stable with 2014.

Average loans were $57.5 billion for the first quarter of 2015, an increase of $2.8 billion compared to the first quarter of 2014. The loan growth occurred primarily in the commercial, financial and agricultural portfolio, which increased $2.9 billion and was broad-based across our commercial lines of business. Consumer loans remained relatively stable as modest increases across our core consumer loan portfolio were offset by run-off in our consumer exit portfolios. For the full year of 2015, we anticipate average loan growth in the mid-single-digit range, benefiting from the strength in our commercial business.

Average deposits, excluding deposits in foreign office, totaled $68.8 billion for the first quarter of 2015, an increase of $3.2 billion compared to the year-ago quarter. Noninterest-bearing deposits increased by $3.6 billion, and NOW and money market deposit accounts increased $888 million, mostly due to the commercial mortgage servicing business. These increases were partially offset by a decline in certificates of deposit.

Our provision for credit losses was $35 million for the first quarter of 2015, compared to $4 million for the year-ago quarter. Our ALLL was $794 million, or 1.37%, of total period-end loans at March 31, 2015, compared to 1.50% at March 31, 2014. We expect our provision for credit losses to approximate the level of net loan charge-offs for the remainder of the year.

Net loan charge-offs for the first quarter of 2015 totaled $28 million, or .20% of average total loans, compared to .15% for the same period last year. We expect net loan charge-offs to average total loans to continue to be below our targeted range of .40% to .60% for the remainder of the year.

At March 31, 2015, our nonperforming loans totaled $437 million and represented .75% of period-end portfolio loans, compared to .81% at March 31, 2014. Nonperforming assets at March 31, 2015, totaled $457 million and represented .79% of period-end portfolio loans and OREO and other nonperforming assets, compared to .85% at March 31, 2014.

Our capital ratios remain strong. Our tangible common equity and Tier 1 risk-based capital ratios at March 31, 2015, are 9.92% and 11.04%, respectively, compared to 10.14% and 12.01%, respectively, at March 31, 2014. In addition, our Common Equity Tier 1 ratio is 10.64% at March 31, 2015. We continue to return capital to our shareholders by repurchasing common shares and through our quarterly common share dividend. In the first quarter of 2015, we repurchased $208 million of common shares and paid a cash dividend of $.065 per common share under our 2014 capital plan authorization.

Figure 6 shows our continuing and discontinued operating results for the current, past, and year-ago quarters. Our financial performance for each of the past five quarters is summarized in Figure 1.

93

Figure 6. Results of Operations

	Three months ended
in millions, except per share amounts	3-31-15		12-31-14		3-31-14
Summary of operations
Income (loss) from continuing operations attributable to Key	$	228	$	251	$	238
Income (loss) from discontinued operations, net of taxes (a)		5		2		4
Net income (loss) attributable to Key	$	233	$	253	$	242
Income (loss) from continuing operations attributable to Key	$	228	$	251	$	238
Less: Dividends on Series A Preferred Stock		6		5		6
Income (loss) from continuing operations attributable to Key common shareholders		222		246		232
Income (loss) from discontinued operations, net of taxes (a)		5		2		4
Net income (loss) attributable to Key common shareholders	$	227	$	248	$	236
Per common share — assuming dilution
Income (loss) from continuing operations attributable to Key common shareholders	$	.26	$	.28	$	.26
Income (loss) from discontinued operations, net of taxes (a)		.01		—		—
Net income (loss) attributable to Key common shareholders (b)	$	.26	$	.28	$	.26

(a) In April 2009, we decided to wind down the operations of Austin, a subsidiary that specialized in managing hedge fund investments for institutional customers. In September 2009, we decided to discontinue the education lending business conducted through Key Education Resources, the education payment and financing unit of KeyBank. In February 2013, we decided to sell Victory to a private equity fund. As a result of these decisions, we have accounted for these businesses as discontinued operations. For further discussion regarding the income (loss) from discontinued operations, see Note 11 (“Acquisitions and Discontinued Operations”).

(b) EPS may not foot due to rounding.

Figure 7 presents certain non-GAAP financial measures related to “tangible common equity,” “return on tangible common equity,” “Common Equity Tier 1,” “Tier 1 common equity,” “pre-provision net revenue,” “cash efficiency ratio,” and “Common Equity Tier 1 under the Regulatory Capital Rules (estimates).”

The tangible common equity ratio and the return on tangible common equity ratio have been a focus for some investors, and management believes these ratios may assist investors in analyzing Key’s capital position without regard to the effects of intangible assets and preferred stock. Traditionally, the banking regulators have assessed bank and BHC capital adequacy based on both the amount and the composition of capital, the calculation of which is prescribed in federal banking regulations. The Federal Reserve focuses its assessment of capital adequacy on a component of Tier 1 capital known as Common Equity Tier 1. Because the Federal Reserve has long indicated that voting common shareholders’ equity (essentially Tier 1 risk-based capital less preferred stock, qualifying capital securities and noncontrolling interests in subsidiaries) generally should be the dominant element in Tier 1 risk-based capital, this focus on Common Equity Tier 1 is consistent with existing capital adequacy categories. The Regulatory Capital Rules, described in more detail under the section “Supervision and regulation” in Item 2 of this report, also make Common Equity Tier 1 a priority. The Regulatory Capital Rules change the regulatory capital standards that apply to BHCs by, among other changes, phasing out the treatment of trust preferred securities and cumulative preferred securities as Tier 1 eligible capital. By 2016, our trust preferred securities will only be included in Tier 2 capital. Since analysts and banking regulators may assess our capital adequacy using tangible common equity and Common Equity Tier 1, we believe it is useful to enable investors to assess our capital adequacy on these same bases. Figure 7 also reconciles the GAAP performance measures to the corresponding non-GAAP measures.

Figure 7 also shows the computation for pre-provision net revenue, which is not formally defined by GAAP. We believe that eliminating the effects of the provision for credit losses makes it easier to analyze our results by presenting them on a more comparable basis.

The cash efficiency ratio is a ratio of two non-GAAP performance measures. Accordingly, there is no directly comparable GAAP performance measure. The cash efficiency ratio excludes the impact of our intangible asset amortization from the calculation. We believe this ratio provides greater consistency and comparability between our results and those of our peer banks. Additionally, this ratio is used by analysts and investors as they develop earnings forecasts and peer bank analysis.

Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied, and are not audited. Although these non-GAAP financial measures are frequently used by investors to evaluate a company, they have limitations as analytical tools, and should not be considered in isolation, or as a substitute for analyses of results as reported under GAAP.

94

Figure 7. GAAP to Non-GAAP Reconciliations

	Three months ended
dollars in millions	3-31-15			12-31-14			9-30-14			6-30-14			3-31-14
Tangible common equity to tangible assets at period end
Key shareholders’ equity (GAAP)	$	10,603		$	10,530		$	10,486		$	10,504		$	10,403
Less: Intangible assets (a)		1,088			1,090			1,105			1,008			1,012
Series A Preferred Stock (b)		281			282			282			282			282
Tangible common equity (non-GAAP)	$	9,234		$	9,158		$	9,099		$	9,214		$	9,109
Total assets (GAAP)	$	94,206		$	93,821		$	89,784		$	91,798		$	90,802
Less: Intangible assets (a)		1,088			1,090			1,105			1,008			1,012
Tangible assets (non-GAAP)	$	93,118		$	92,731		$	88,679		$	90,790		$	89,790
Tangible common equity to tangible assets ratio (non-GAAP)		9.92	%		9.88	%		10.26	%		10.15	%		10.14	%
Common Equity Tier 1 at period end
Key shareholders’ equity (GAAP)	$	10,603			—			—			—			—
Less: Series A Preferred Stock (b)		281			—			—			—			—
Common Equity Tier 1 capital before adjustments and deductions		10,322			—			—			—			—
Less: Goodwill, net of deferred tax liabilities		1,036			—			—			—			—
Intangible assets, net of deferred tax liabilities		36			—			—			—			—
Deferred tax assets		1			—			—			—			—
Net unrealized gains (losses) on available-for-sale securities		52			—			—			—			—
Accumulated gain (loss) on cash flow hedges		(8	)		—			—			—			—
Amounts recorded in accumulated other comprehensive income (loss) related to pension and postretirement benefit costs		(364	)		—			—			—			—
Total Common Equity Tier 1 capital	$	9,569			—			—			—			—
Net risk-weighted assets (regulatory)	$	89,967			—			—			—			—
Common Equity Tier 1 ratio (non-GAAP)		10.64	%		—			—			—			—
Tier 1 common equity at period end
Key shareholders’ equity (GAAP)		—		$	10,530		$	10,486		$	10,504		$	10,403
Qualifying capital securities		—			339			340			339			339
Less: Goodwill		—			1,057			1,051			979			979
Accumulated other comprehensive income (loss) (c)		—			(395	)		(366	)		(328	)		(367	)
Other assets (d)		—			83			110			86			84
Total Tier 1 capital (regulatory)		—			10,124			10,031			10,106			10,046
Less: Qualifying capital securities		—			339			340			339			339
Series A Preferred Stock (b)		—			282			282			282			282
Total Tier 1 common equity (non-GAAP)		—		$	9,503		$	9,409		$	9,485		$	9,425
Net risk-weighted assets (regulatory)		—		$	85,100		$	83,547		$	84,287		$	83,637
Tier 1 common equity ratio (non-GAAP)		—			11.17	%		11.26	%		11.25	%		11.27	%
Pre-provision net revenue
Net interest income (GAAP)	$	571		$	582		$	575		$	573		$	563
Plus: Taxable-equivalent adjustment		6			6			6			6			6
Noninterest income (GAAP)		437			490			417			455			435
Less: Noninterest expense (GAAP)		669			704			706			687			664
Pre-provision net revenue from continuing operations (non-GAAP)	$	345		$	374		$	292		$	347		$	340
Average tangible common equity
Average Key shareholders’ equity (GAAP)	$	10,570		$	10,562		$	10,473		$	10,459		$	10,371
Less: Intangible assets (average) (e)		1,089			1,096			1,037			1,010			1,013
Series A Preferred Stock (average)		290			291			291			291			291
Average tangible common equity (non-GAAP)	$	9,191		$	9,175		$	9,145		$	9,158		$	9,067
Return on average tangible common equity from continuing operations
Net income (loss) from continuing operations attributable to Key common shareholders (GAAP)	$	222		$	246		$	197		$	242		$	232
Average tangible common equity (non-GAAP)		9,191			9,175			9,145			9,158			9,067
Return on average tangible common equity from continuing operations (non-GAAP)		9.80	%		10.64	%		8.55	%		10.60	%		10.38	%
Return on average tangible common equity consolidated
Net income (loss) attributable to Key common shareholders (GAAP)	$	227		$	248		$	180		$	214		$	236
Average tangible common equity (non-GAAP)		9,191			9,175			9,145			9,158			9,067
Return on average tangible common equity consolidated (non-GAAP)		10.02	%		10.72	%		7.81	%		9.37	%		10.56	%
Cash efficiency ratio
Noninterest expense (GAAP)	$	669		$	704		$	706		$	687		$	664
Less: Intangible asset amortization (GAAP)		9			10			10			9			10
Adjusted noninterest expense (non-GAAP)	$	660		$	694		$	696		$	678		$	654
Net interest income (GAAP)	$	571		$	582		$	575		$	573		$	563
Plus: Taxable-equivalent adjustment		6			6			6			6			6
Noninterest income (GAAP)		437			490			417			455			435
Total taxable-equivalent revenue (non-GAAP)	$	1,014		$	1,078		$	998		$	1,034		$	1,004
Cash efficiency ratio (non-GAAP)		65.1	%		64.4	%		69.7	%		65.6	%		65.1	%

(a) For the three months ended March 31, 2015, December 31, 2014, September 30, 2014, June 30, 2014, and March 31, 2014, intangible assets exclude $61 million, $68 million, $72 million, $79 million, and $84 million, respectively, of period-end purchased credit card receivables.

(b) Net of capital surplus.

(c) Includes net unrealized gains or losses on securities available for sale (except for net unrealized losses on marketable equity securities), net gains or losses on cash flow hedges, and amounts resulting from the application of the applicable accounting guidance for defined benefit and other postretirement plans.

(d) Other assets deducted from Tier 1 capital and net risk-weighted assets consist of disallowed intangible assets (excluding goodwill) and deductible portions of nonfinancial equity investments. There were no disallowed deferred tax assets at any quarter-end during 2014.

95

Figure 7. GAAP to Non-GAAP Reconciliations, continued

	Three months ended
dollars in millions	3-31-15
Common Equity Tier 1 under the Regulatory Capital Rules (estimates)
Common Equity Tier 1 under current regulatory rules	$	9,569
Adjustments from current regulatory rules to the Regulatory Capital Rules:
Deferred tax assets and other assets (f)		(56	)
Common Equity Tier 1 anticipated under the Regulatory Capital Rules (g)	$	9,513
Net risk-weighted assets under current regulatory rules	$	89,967
Adjustments from current regulatory rules to the Regulatory Capital Rules:
Mortgage servicing assets (h)		486
Deferred tax assets (h)		22
Significant investments (h)		—
Total risk-weighted assets anticipated under the Regulatory Capital Rules (g)	$	90,475
Common Equity Tier 1 ratio under the Regulatory Capital Rules (g)		10.51	%

(e) For the three months ended March 31, 2015, December 31, 2014, September 30, 2014, June 30, 2014, and March 31, 2014, average intangible assets exclude $64 million, $69 million, $76 million, $82 million, and $89 million, respectively, of average purchased credit card receivables.

(f) Includes the deferred tax assets subject to future taxable income for realization, primarily tax credit carryforwards, as well as the deductible portion of purchased credit card receivables.

(g) The anticipated amount of regulatory capital and risk-weighted assets is based upon the federal banking agencies’ Regulatory Capital Rules (as fully phased-in on January 1, 2019); Key is subject to the Regulatory Capital Rules under the “standardized approach.”

(h) Item is included in the 10%/15% exceptions bucket calculation and is risk-weighted at 250%.

96

Results of Operations

Net interest income

One of our principal sources of revenue is net interest income. Net interest income is the difference between interest income received on earning assets (such as loans and securities) and loan-related fee income, and interest expense paid on deposits and borrowings. There are several factors that affect net interest income, including:

• the volume, pricing, mix, and maturity of earning assets and interest-bearing liabilities;

• the volume and value of net free funds, such as noninterest-bearing deposits and equity capital;

• the use of derivative instruments to manage interest rate risk;

• interest rate fluctuations and competitive conditions within the marketplace; and

• asset quality.

To make it easier to compare results among several periods and the yields on various types of earning assets (some taxable, some not), we present net interest income in this discussion on a “taxable-equivalent basis” (i.e., as if it were all taxable and at the same rate). For example, $100 of tax-exempt income would be presented as $154, an amount that — if taxed at the statutory federal income tax rate of 35% — would yield $100.

Figure 8 shows the various components of our balance sheet that affect interest income and expense, and their respective yields or rates over the past five quarters. This figure also presents a reconciliation of taxable-equivalent net interest income to net interest income reported in accordance with GAAP for each of those quarters. The net interest margin, which is an indicator of the profitability of the earning assets portfolio less cost of funding, is calculated by dividing annualized taxable-equivalent net interest income by average earning assets.

Taxable-equivalent net interest income was $577 million for the first quarter of 2015, and the net interest margin was 2.91%. These results compare to taxable-equivalent net interest income of $569 million and a net interest margin of 3.00% for the first quarter of 2014. The increase in net interest income reflects higher loan balances mitigated by lower earning assets yields, which also drove the decline in the net interest margin.

Average earning assets totaled $80.2 billion for the first quarter of 2015, compared to $76.7 billion for the first quarter of 2014. Commercial, financial and agricultural loans grew by $2.9 billion over the year-ago quarter and was broad-based across our commercial lines of business. Consumer loans remained relatively stable as modest increases across our core consumer loan portfolio were offset by run-off in our consumer exit portfolios. In addition, our investment portfolio increased $921 million, which included a higher percentage of Ginnie Mae securities as we continued to position the portfolio for upcoming regulatory liquidity requirements.

Average deposits, excluding deposits in foreign office, totaled $68.8 billion for the first quarter of 2015, an increase of $3.2 billion compared to the year-ago quarter. Noninterest-bearing deposits increased by $3.6 billion, and NOW and money market deposit accounts increased $888 million, mostly due to the commercial mortgage servicing business. These increases were partially offset by a decline in certificates of deposit.

As shown in Figure 8, average earning asset yields for the first quarter of 2015 were impacted by the run-off of higher-yielding loans and investments and lower interest rates compared to the same period one year ago.

97

Figure 8. Consolidated Average Balance Sheets, Net Interest Income and Yields/Rates From Continuing Operations

	First Quarter 2015								Fourth Quarter 2014
	Average					Yield/			Average					Yield/
dollars in millions	Balance			Interest (a)		Rate (a)			Balance			Interest (a)		Rate (a)
ASSETS
Loans (b), (c)
Commercial, financial and agricultural (d)	$	28,321		$	223		3.18	%	$	27,188		$	223		3.24	%
Real estate — commercial mortgage		8,095			73		3.67			8,161			77		3.73
Real estate — construction		1,139			11		3.90			1,077			10		3.90
Commercial lease financing		4,070			36		3.57			4,119			38		3.67
Total commercial loans		41,625			343		3.33			40,545			348		3.40
Real estate — residential mortgage		2,229			24		4.26			2,223			24		4.28
Home equity:
Key Community Bank		10,316			99		3.89			10,365			103		3.91
Other		260			5		7.82			274			5		7.84
Total home equity loans		10,576			104		3.99			10,639			108		4.01
Consumer other — Key Community Bank		1,546			25		6.66			1,552			27		6.78
Credit cards		732			20		11.01			728			20		11.02
Consumer other:
Marine		755			12		6.35			802			13		6.29
Other		49			1		7.32			52			—		7.52
Total consumer other		804			13		6.41			854			13		6.36
Total consumer loans		15,887			186		4.74			15,996			192		4.76
Total loans		57,512			529		3.72			56,541			540		3.79
Loans held for sale		795			7		3.33			871			8		3.72
Securities available for sale (b), (e)		13,087			70		2.17			12,153			67		2.20
Held-to-maturity securities (b)		4,947			24		1.93			4,947			23		1.91
Trading account assets		717			5		2.80			868			6		2.84
Short-term investments		2,399			2		.27			3,520			2		.27
Other investments (e)		742			5		2.79			792			6		2.77
Total earning assets		80,199			642		3.20			79,692			652		3.27
Allowance for loan and lease losses		(793	)							(798	)
Accrued income and other assets		10,223								9,868
Discontinued assets		2,271								2,359
Total assets	$	91,900							$	91,121
LIABILITIES
NOW and money market deposit accounts	$	34,952			13		.15		$	34,811			13		.14
Savings deposits		2,385			—		.02			2,388			—		.02
Certificates of deposit ($100,000 or more) (f)		2,017			7		1.30			2,277			7		1.25
Other time deposits		3,217			6		.72			3,306			6		.76
Deposits in foreign office		529			—		.22			543			—		.24
Total interest-bearing deposits		43,100			26		.24			43,325			26		.24
Federal funds purchased and securities sold under repurchase agreements		720			—		.03			621			—		.02
Bank notes and other short-term borrowings		506			2		1.56			772			3		1.17
Long-term debt (f), (g)		6,126			37		2.52			5,135			35		2.80
Total interest-bearing liabilities		50,452			65		.52			49,853			64		.51
Noninterest-bearing deposits		26,269								26,342
Accrued expense and other liabilities		2,327								1,989
Discontinued liabilities(g)		2,271								2,359
Total liabilities		81,319								80,543
EQUITY
Key shareholders’ equity		10,570								10,562
Noncontrolling interests		11								16
Total equity		10,581								10,578
Total liabilities and equity	$	91,900							$	91,121
Interest rate spread (TE)							2.68	%							2.76	%
Net interest income (TE) and net interest margin (TE)					577		2.91	%					588		2.94	%
TE adjustment (b)					6								6
Net interest income, GAAP basis				$	571							$	582

(a) Results are from continuing operations. Interest excludes the interest associated with the liabilities referred to in (g) below, calculated using a matched funds transfer pricing methodology.

(b) Interest income on tax-exempt securities and loans has been adjusted to a taxable-equivalent basis using the statutory federal income tax rate of 35%.

(c) For purposes of these computations, nonaccrual loans are included in average loan balances.

(d) Commercial, financial and agricultural average balances include $87 million, $90 million, $92 million, $95 million, and $94 million of assets from commercial credit cards for the three months ended March 31, 2015, December 31, 2014, September 30, 2014, June 30, 2014, and March 31, 2014, respectively.

98

Figure 8. Consolidated Average Balance Sheets, Net Interest Income and Yields/Rates From Continuing Operations

Third Quarter 2014								Second Quarter 2014								First Quarter 2014
Average					Yield/			Average					Yield/			Average					Yield/
Balance			Interest (a)		Rate (a)			Balance			Interest (a)		Rate (a)			Balance			Interest (a)		Rate (a)
$	26,456		$	218		3.28	%	$	26,444		$	219		3.31	%	$	25,390		$	206		3.29	%
	8,142			78		3.79			7,880			74		3.79			7,807			74		3.84
	1,030			10		3.78			1,049			11		4.03			1,091			12		4.55
	4,145			38		3.66			4,257			38		3.54			4,439			42		3.78
	39,773			344		3.44			39,630			342		3.45			38,727			334		3.49
	2,204			24		4.35			2,189			24		4.41			2,187			24		4.44
	10,368			102		3.91			10,321			100		3.92			10,305			100		3.92
	290			6		7.80			306			6		7.80			325			6		7.77
	10,658			108		4.01			10,627			106		4.03			10,630			106		4.04
	1,534			26		6.87			1,479			26		6.97			1,438			25		7.06
	716			20		11.12			702			18		10.39			701			20		11.28
	856			13		6.23			926			15		6.18			996			15		6.18
	55			2		7.63			58			1		8.09			67			1		7.55
	911			15		6.32			984			16		6.29			1,063			16		6.26
	16,023			193		4.78			15,981			190		4.77			16,019			191		4.83
	55,796			537		3.82			55,611			532		3.83			54,746			525		3.88
	502			4		3.87			458			5		4.14			446			4		3.34
	11,939			67		2.25			12,408			71		2.30			12,346			72		2.33
	5,108			25		1.90			4,973			23		1.87			4,767			22		1.84
	893			6		2.68			985			7		2.80			981			6		2.51
	3,048			2		.19			2,475			1		.17			2,486			1		.17
	847			4		2.12			888			6		2.64			936			6		2.57
	78,133			645		3.30			77,798			645		3.31			76,708			636		3.32
	(809	)							(824	)							(842	)
	9,799								9,767								9,791
	4,138								4,341								4,493
$	91,261							$	91,082							$	90,150
$	33,969			12		.14		$	34,283			11		.14		$	34,064			12		.14
	2,428			1		.02			2,493			—		.03			2,475			—		.03
	2,629			8		1.23			2,808			10		1.39			2,758			10		1.50
	3,413			7		.83			3,587			9		.98			3,679			10		1.07
	595			—		.23			662			1		.23			660			—		.22
	43,034			28		.26			43,833			31		.28			43,636			32		.30
	1,176			1		.19			1,470			—		.19			1,469			1		.17
	484			2		1.79			545			2		1.54			587			2		1.63
	4,868			33		2.88			5,476			33		2.51			5,169			32		2.57
	49,562			64		.52			51,324			66		.52			50,861			67		.54
	25,302								23,290								22,658
	1,768								1,654								1,750
	4,138								4,341								4,493
	80,770								80,609								79,762
	10,473								10,459								10,371
	18								14								17
	10,491								10,473								10,388
$	91,261							$	91,082							$	90,150
						2.78	%							2.79	%							2.78	%
				581		2.96	%					579		2.98	%					569		3.00	%
				6								6								6
			$	575							$	573							$	563

(e) Yield is calculated on the basis of amortized cost.

(f) Rate calculation excludes basis adjustments related to fair value hedges.

(g) A portion of long-term debt and the related interest expense is allocated to discontinued liabilities as a result of applying our matched funds transfer pricing methodology to discontinued operations.

99

Figure 9 shows how the changes in yields or rates and average balances from the prior year period affected net interest income. The section entitled “Financial Condition” contains additional discussion about changes in earning assets and funding sources.

Figure 9. Components of Net Interest Income Changes from Continuing Operations

	From three months ended March 31, 2014
	to three months ended March 31, 2015
	Average			Yield/			Net
in millions	Volume			Rate			Change(a)
INTEREST INCOME
Loans	$	26		$	(22	)	$	4
Loans held for sale		3			—			3
Securities available for sale		4			(6	)		(2	)
Held-to-maturity securities		1			1			2
Trading account assets		(2	)		1			(1	)
Short-term investments		—			1			1
Other investments		(1	)		—			(1	)
Total interest income (TE)		31			(25	)		6
INTEREST EXPENSE
NOW and money market deposit accounts		—			1			1
Certificates of deposit ($100,000 or more)		(3	)		—			(3	)
Other time deposits		(1	)		(3	)		(4	)
Total interest-bearing deposits		(4	)		(2	)		(6	)
Federal funds purchased and securities sold under repurchase agreements		—			(1	)		(1	)
Long-term debt		6			(1	)		5
Total interest expense		2			(4	)		(2	)
Net interest income (TE)	$	29		$	(21	)	$	8

(a) The change in interest not due solely to volume or rate has been allocated in proportion to the absolute dollar amounts of the change in each.

Noninterest income

As shown in Figure 10, noninterest income was $437 million for the first quarter of 2015, compared to $435 million for the year-ago quarter, an increase of $2 million, or .5%. Trust and investment services income increased $11 million, primarily due to the impact of the third quarter 2014 acquisition of Pacific Crest Securities. Increases in net gains from principal investing, corporate-owned life insurance income, cards and payments income, and other income also contributed to the growth in the quarter. These increases were partially offset by a $16 million decline in investment banking and debt placement fees as a result of lower financial advisory fees. Additionally, operating lease income and other leasing gains declined $10 million primarily due to the termination of a leveraged lease in the prior year.

Figure 10. Noninterest Income

	Three months ended
	March 31,				Change
dollars in millions	2015		2014		Amount			Percent
Trust and investment services income	$	109	$	98	$	11			11.2	%
Investment banking and debt placement fees		68		84		(16	)		(19.0	)
Service charges on deposit accounts		61		63		(2	)		(3.2	)
Operating lease income and other leasing gains		19		29		(10	)		(34.5	)
Corporate services income		43		42		1			2.4
Cards and payments income		42		38		4			10.5
Corporate-owned life insurance income		31		26		5			19.2
Consumer mortgage income		3		2		1			50.0
Mortgage servicing fees		13		15		(2	)		(13.3	)
Net gains (losses) from principal investing		29		24		5			20.8
Other income (a)		19		14		5			35.7
Total noninterest income	$	437	$	435	$	2			.5	%

(a) Included in this line item is our “Dealer trading and derivatives income (loss).” Additional detail is provided in Figure 11.

100

Figure 11. Dealer Trading and Derivatives Income (Loss)

	Three months ended
	March 31,						Change
dollars in millions	2015			2014			Amount		Percent
Dealer trading and derivatives income (loss), proprietary (a), (b)	$	(1	)	$	(2	)	$	1		N/M
Dealer trading and derivatives income (loss), nonproprietary (b)		3			3			—		—
Total dealer trading and derivatives income (loss)	$	2		$	1		$	1		100.0	%

(a) For the quarter ended March 31, 2015, income of $1 million related to foreign exchange, interest rate, fixed income, and commodity derivative trading was offset by losses related to equity securities trading and credit portfolio management activities. For the quarter ended March 31, 2014, income of $1 million related to fixed income, foreign exchange, and commodity derivative trading was offset by losses related to equity securities trading, interest rate derivative trading, and credit portfolio management activities.

(b) The allocation between proprietary and nonproprietary is made based upon whether the trade is conducted for the benefit of Key or Key’s clients rather than based upon rulemaking under the Volcker Rule. The prohibitions and restrictions on proprietary trading activities contemplated by the Volcker Rule were detailed in a final rule approved by federal banking regulators in December 2013, which became effective April 1, 2014. For more information, see the discussion under the heading “Other Regulatory Developments under the Dodd-Frank Act – ‘Volcker Rule’” in the section entitled “Supervision and Regulation” in Item 1 of our 2014 Form 10-K.

The following discussion explains the composition of certain elements of our noninterest income and the factors that caused those elements to change.

Trust and investment services income

Trust and investment services income is our largest source of noninterest income and consists of brokerage commissions, trust and asset management commissions, and insurance income. The assets under management that primarily generate these revenues are shown in Figure 12. For the three months ended March 31, 2015, trust and investment services income increased $11 million, or 11.2%, as compared to the same period one year ago, primarily due to the impact of the third quarter 2014 acquisition of Pacific Crest Securities.

A significant portion of our trust and investment services income depends on the value and mix of assets under management. At March 31, 2015, our bank, trust, and registered investment advisory subsidiaries had assets under management of $39.3 billion, compared to $38.9 billion at March 31, 2014. As shown in Figure 12, increases in the equity and fixed income portfolios were primarily attributable to market appreciation. The money market portfolio also increased from the prior year. These increases were partially offset by a decline in the securities lending portfolio.

Figure 12. Assets Under Management

	2015		2014
in millions	First		Fourth		Third		Second		First
Assets under management by investment type:
Equity	$	21,681	$	21,393	$	21,035	$	21,576	$	20,788
Securities lending		4,625		4,835		5,514		5,397		5,333
Fixed income		10,127		10,023		9,975		9,961		10,011
Money market		2,848		2,906		2,759		2,735		2,761
Total	$	39,281	$	39,157	$	39,283	$	39,669	$	38,893

Investment banking and debt placement fees

Investment banking and debt placement fees consist of syndication fees, debt and equity financing fees, financial advisor fees, gains on sales of commercial mortgages, and agency origination fees. For the first quarter of 2015, investment banking and debt placement fees decreased $16 million, or 19%, from the prior year. This decrease was a result of lower financial advisory fees.

Service charges on deposit accounts

Service charges on deposit accounts declined $2 million, or 3.2%, from one year ago due to lower non-sufficient funds and maintenance fees.

101

Operating lease income and other leasing gains

Operating lease income and other leasing gains decreased $10 million, or 34.5%, for the first quarter of 2015 compared to the same period one year ago. The decline was due to an $8 million gain on the termination of a leveraged lease in the first quarter of 2014 and product run-off. Expense related to the rental of leased equipment is presented in Figure 13 as “operating lease expense.”

Cards and payments income

Cards and payments income, which consists of debit card, consumer and commercial credit card, and merchant services income, increased $4 million, or 10.5%, from the year ago quarter. The increase is due to higher credit and debit card interchange fees and increased usage of our corporate purchase and prepaid cards.

Consumer mortgage income

Consumer mortgage income increased $1 million, or 50%, from one year ago primarily due to gains on consumer mortgage loans sold.

Mortgage servicing fees

Mortgage servicing fees decreased $2 million, or 13.3%, from one year ago due to lower levels of other mortgage loan fees.

Other income

Other income, which consists primarily of gain on sale of certain loans, other service charges, and certain dealer trading income, increased $5 million, or 35.7%, from the year-ago quarter due to increases in various miscellaneous income categories.

Noninterest expense

As shown in Figure 13, noninterest expense was $669 million for the first quarter of 2015, compared to $664 million for the year-ago quarter, representing an increase of $5 million, or .8%. This increase was mainly related to the third quarter 2014 acquisition of Pacific Crest Securities and higher employee benefits costs. Partially offsetting the increase in expenses were $8 million in lower business services and professional fees, as well as continued cost savings across the organization. Additionally, expenses included $7 million in costs associated with our continuous improvement efforts to drive efficiency and productivity. These costs were primarily in personnel expense and were $3 million less than the year-ago quarter.

Figure 13. Noninterest Expense

	Three months ended
	March 31,				Change
dollars in millions	2015		2014		Amount			Percent
Personnel	$	389	$	388	$	1			.3	%
Net occupancy		65		64		1			1.6
Computer processing		38		38		—			—
Business services and professional fees		33		41		(8	)		(19.5	)
Equipment		22		24		(2	)		(8.3	)
Operating lease expense		11		10		1			10.0
Marketing		8		5		3			60.0
FDIC assessment		8		6		2			33.3
Intangible asset amortization		9		10		(1	)		(10.0	)
OREO expense, net		2		1		1			100.0
Other expense		84		77		7			9.1
Total noninterest expense	$	669	$	664	$	5			.8	%
Average full-time equivalent employees (a)		13,591		14,055		(464	)		(3.3	)%

(a) The number of average full-time-equivalent employees was not adjusted for discontinued operations.

The following discussion explains the composition of certain elements of our noninterest expense and the factors that caused those elements to change.

102

Personnel

As shown in Figure 14, personnel expense, the largest category of our noninterest expense, increased by $1 million, or .3%, in the first quarter of 2015 when compared to the year-ago quarter. Employee benefits, stock-based compensation, and severance expenses all increased from a one year ago. These increases were partially offset by decreases in technology contract labor, net, salaries, and incentive compensation expenses.

Figure 14. Personnel Expense

	Three months ended
	March 31,				Change
dollars in millions	2015		2014		Amount			Percent
Salaries	$	218	$	220	$	(2	)		(.9	)%
Technology contract labor, net		10		17		(7	)		(41.2	)
Incentive compensation		70		72		(2	)		(2.8	)
Employee benefits		72		63		9			14.3
Stock-based compensation		13		11		2			18.2
Severance		6		5		1			20.0
Total personnel expense	$	389	$	388	$	1			.3	%

Operating lease expense

Operating lease expense increased $1 million, or 10%, from the year-ago quarter due to increased depreciation expense on operating lease equipment. Income related to the rental of leased equipment is presented in Figure 10 as “operating lease income and other leasing gains.”

Other expense

Other expense is comprised of various miscellaneous expense items. The $7 million, or 9.1%, increase in the current quarter compared to the year-ago quarter reflects fluctuations in several of those line items.

Income taxes

We recorded tax expense from continuing operations of $74 million for the first quarter of 2015 and $92 million for the first quarter of 2014.

Our federal tax expense (benefit) differs from the amount that would be calculated using the federal statutory tax rate, primarily because we generate income from investments in tax-advantaged assets, such as corporate-owned life insurance, earn credits associated with investments in low-income housing projects, and make periodic adjustments to our tax reserves. In addition, during the first quarter of 2015, our effective tax rate was reduced by additional federal tax credit refunds filed for prior years.

Additional information pertaining to how our tax expense (benefit) and the resulting effective tax rates were derived are included in Note 12 (“Income Taxes”) beginning on page 177 of our 2014 Form 10-K.

103

Line of Business Results

This section summarizes the financial performance and related strategic developments of our two major business segments (operating segments): Key Community Bank and Key Corporate Bank. Note 18 (“Line of Business Results”) describes the products and services offered by each of these business segments, provides more detailed financial information pertaining to the segments, and explains “Other Segments” and “Reconciling Items.”

Figure 15 summarizes the contribution made by each major business segment to our “taxable-equivalent revenue from continuing operations” and “income (loss) from continuing operations attributable to Key” for the three-month periods ended March 31, 2015, and March 31, 2014.

Figure 15. Major Business Segments - Taxable-Equivalent (TE) Revenue from Continuing Operations and Income

(Loss) from Continuing Operations Attributable to Key

	Three months ended
	March 31,					Change
dollars in millions	2015			2014		Amount			Percent
REVENUE FROM CONTINUING OPERATIONS (TE)
Key Community Bank	$	549		$	546	$	3			.5	%
Key Corporate Bank		401			392		9			2.3
Other Segments		67			65		2			3.1
Total Segments		1,017			1,003		14			1.4
Reconciling Items		(3	)		1		(4	)		N/M
Total	$	1,014		$	1,004	$	10			1.0	%
INCOME (LOSS) FROM CONTINUING OPERATIONS ATTRIBUTABLE TO KEY
Key Community Bank	$	50		$	62	$	(12	)		(19.4	)%
Key Corporate Bank		126			136		(10	)		(7.4	)
Other Segments		45			37		8			21.6
Total Segments		221			235		(14	)		(6.0	)
Reconciling Items		7			3		4			133.3
Total	$	228		$	238	$	(10	)		(4.2	)%

Key Community Bank summary of operations

• Average loan growth of $865 million, or 2.9% from the prior year

• Average noninterest-bearing deposits up $1.2 billion, or 8.6% from the prior year

• Noninterest income growth of 4.4% led by cards and payments and trust and investment services income growth versus the prior year

As shown in Figure 16, Key Community Bank recorded net income attributable to Key of $50 million for the first quarter of 2015, compared to net income attributable to Key of $62 million for the year-ago quarter.

Taxable-equivalent net interest income decreased by $5 million, or 1.4%, from the first quarter of 2014 due to declines in the deposit spread in the current period as a result of the continued low-rate environment. Average loans and leases grew 2.9% while average deposits increased 1.0% from one year ago.

Noninterest income increased $8 million, or 4.4%, from the year-ago quarter. This growth was balanced across the business with trust and investment services income and cards and payments income each increasing by $3 million.

The provision for credit losses increased by $18 million from the first quarter of 2014 related to loan growth.

Noninterest expense increased by $4 million, or .9%, from the year-ago quarter. Personnel expense increased $8 million and was partially offset by reduced infrastructure and internally-allocated costs.

104

Figure 16. Key Community Bank

	Three months ended
	March 31,				Change
dollars in millions	2015		2014		Amount			Percent
SUMMARY OF OPERATIONS
Net interest income (TE)	$	358	$	363	$	(5	)		(1.4	)%
Noninterest income		191		183		8			4.4
Total revenue (TE)		549		546		3			.5
Provision for credit losses		29		11		18			163.6
Noninterest expense		440		436		4			.9
Income (loss) before income taxes (TE)		80		99		(19	)		(19.2	)
Allocated income taxes (benefit) and TE adjustments		30		37		(7	)		(18.9	)
Net income (loss) attributable to Key	$	50	$	62	$	(12	)		(19.4	)%
AVERAGE BALANCES
Loans and leases	$	30,662	$	29,797	$	865			2.9	%
Total assets		32,716		31,918		798			2.5
Deposits		50,417		49,910		507			1.0
Assets under management at period end	$	39,281	$	38,814	$	467			1.2	%

ADDITIONAL KEY COMMUNITY BANK DATA

	Three months ended
	March 31,						Change
dollars in millions	2015			2014			Amount			Percent
NONINTEREST INCOME
Trust and investment services income	$	74		$	71		$	3			4.2	%
Services charges on deposit accounts		51			52			(1	)		(1.9	)
Cards and payments income		38			35			3			8.6
Other noninterest income		28			25			3			12.0
Total noninterest income	$	191		$	183		$	8			4.4	%
AVERAGE DEPOSITS OUTSTANDING
NOW and money market deposit accounts	$	27,873		$	27,431		$	442			1.6	%
Savings deposits		2,377			2,465			(88	)		(3.6	)
Certificates of deposits ($100,000 or more)		1,558			2,163			(605	)		(28.0	)
Other time deposits		3,211			3,673			(462	)		(12.6	)
Deposits in foreign office		333			309			24			7.8
Noninterest-bearing deposits		15,065			13,869			1,196			8.6
Total deposits	$	50,417		$	49,910		$	507			1.0	%
HOME EQUITY LOANS
Average balance	$	10,316		$	10,305
Weighted-average loan-to-value ratio (at date of origination)		71	%		71	%
Percent first lien positions		60			58
OTHER DATA
Branches		992			1,027
Automated teller machines		1,287			1,330

Key Corporate Bank summary of operations

• Average loan and lease balances up 12.4% from the prior year

• Average deposits up 16.1% from the prior year

• Revenue up 2.3% from the prior year

As shown in Figure 17, Key Corporate Bank recorded net income attributable to Key of $126 million for the first quarter of 2015, compared to $136 million for the same period one year ago.

Taxable-equivalent net interest income increased by $17 million, or 8.7%, compared to the first quarter of 2014. Average earning assets increased $2.4 billion, or 9.9%, from the year-ago quarter, primarily driven by loan growth in commercial, financial and agricultural and real estate commercial mortgage. This growth in earning assets drove an increase of $7 million in earning asset spread. Average deposit balances increased $2.6 billion, or 16.1%, from the year-ago quarter, driven by commercial mortgage servicing deposits and other commercial client inflows. This growth in deposit balances drove an increase of $13 million in deposit and borrowing spread.

105

Noninterest income was down $8 million, or 4.1%, from the prior year. The majority of this decline was related to investment banking and debt placement fees, which decreased $16 million from the prior year primarily due to lower financial advisory fees. Operating lease income and other leasing gains declined by $7 million due to the termination of a leveraged lease in the prior year. Partially offsetting these declines were increases in trust and investment services income of $8 million, primarily due to the third quarter 2014 acquisition of Pacific Crest Securities, and an increase in other income of $6 million.

The provision for credit losses increased $11 million compared to the first quarter of 2014 related to loan growth.

Noninterest expense increased by $15 million, or 7.4%, from the first quarter of 2014. This increase was due to expenses related to the third quarter 2014 acquisition of Pacific Crest Securities.

Figure 17. Key Corporate Bank

	Three months ended
	March 31,					Change
dollars in millions	2015		2014			Amount			Percent
SUMMARY OF OPERATIONS
Net interest income (TE)	$	213	$	196		$	17			8.7	%
Noninterest income		188		196			(8	)		(4.1	)
Total revenue (TE)		401		392			9			2.3
Provision for credit losses		8		(3	)		11			N/M
Noninterest expense		217		202			15			7.4
Income (loss) before income taxes (TE)		176		193			(17	)		(8.8	)
Allocated income taxes and TE adjustments		49		57			(8	)		(14.0	)
Net income (loss)		127		136			(9	)		(6.6	)
Less: Net income (loss) attributable to noncontrolling interests		1		—			1			N/M
Net income (loss) attributable to Key	$	126	$	136		$	(10	)		(7.4	)%
AVERAGE BALANCES
Loans and leases	$	24,722	$	21,991		$	2,731			12.4	%
Loans held for sale		775		429			346			80.7
Total assets		30,297		27,171			3,126			11.5
Deposits		18,567		15,993			2,574			16.1
Assets under management at period end		—	$	79		$	(79	)		N/M

ADDITIONAL KEY CORPORATE BANK DATA

	Three months ended
	March 31,				Change
dollars in millions	2015		2014		Amount			Percent
NONINTEREST INCOME
Trust and investment services income	$	35	$	27	$	8			29.6	%
Investment banking and debt placement fees		68		84		(16	)		(19.0	)
Operating lease income and other leasing gains		14		21		(7	)		(33.3	)
Corporate services income		32		29		3			10.3
Service charges on deposit accounts		10		11		(1	)		(9.1	)
Cards and payments income		4		3		1			33.3
Payments and services income		46		43		3			7.0
Mortgage servicing fees		13		15		(2	)		(13.3	)
Other noninterest income		12		6		6			100.0
Total noninterest income	$	188	$	196	$	(8	)		(4.1	)%

Other Segments

Other Segments consist of Corporate Treasury, Key’s Principal Investing unit, and various exit portfolios. Other Segments generated net income attributable to Key of $45 million for the first quarter of 2015, compared to net income attributable to Key of $37 million for the same period last year. These results were primarily due to increases of $5 million in net gains from principal investing and $4 million in corporate-owned life insurance from the prior year, partially offset by a $4 million increase in personnel expense.

106

Financial Condition

Loans and loans held for sale

At March 31, 2015, total loans outstanding from continuing operations were $58 billion, compared to $57.4 billion at December 31, 2014, and $55.4 billion at March 31, 2014. The increase in our outstanding loans from continuing operations over the past twelve months results primarily from increased lending activity in our commercial, financial and agricultural portfolio. Loans related to the discontinued operations of the education lending business, which are excluded from total loans at March 31, 2015, December 31, 2014, and March 31, 2014, totaled $2.2 billion, $2.3 billion, and $4.4 billion, respectively. The decrease in education loans from prior periods is due to the sale, and resulting deconsolidation, of the residual interests in all of our outstanding education loan securitization trusts on September 30, 2014. For more information on balance sheet carrying value, see Note 1 (“Summary of Significant Accounting Policies”) under the headings “Loans” and “Loans Held for Sale” on page 116 of our 2014 Form 10-K.

Commercial loan portfolio

Commercial loans outstanding were $42.2 billion at March 31, 2015, an increase of $2.6 billion, or 7%, compared to March 31, 2014.

Commercial, financial and agricultural. Our commercial, financial and agricultural loans, also referred to as “commercial and industrial,” represented 50% of our total loan portfolio at March 31, 2015, 49% at December 31, 2014, and 47% at March 31, 2014, and is the largest component of our total loans. These loans are originated by both Key Corporate Bank and Key Community Bank and consist of fixed and variable rate loans to our large, middle market, and small business clients.

Figure 18 provides our commercial, financial and agricultural loans by industry classification at March 31, 2015, December 31, 2014, and March 31, 2014.

Figure 18. Commercial, Financial and Agricultural Loans

	March 31, 2015					December 31, 2014					March 31, 2014
			Percent					Percent					Percent
dollars in millions	Amount		of Total			Amount		of Total			Amount		of Total
Industry classification:
Services	$	6,222		21.6	%	$	6,053		21.6	%	$	6,055		23.1	%
Manufacturing		4,821		16.7			4,621		16.5			4,414		16.8
Public utilities		2,123		7.4			1,938		6.9			1,722		6.6
Financial services		2,829		9.8			2,844		10.2			2,521		9.6
Wholesale trade		2,411		8.4			2,294		8.2			1,958		7.5
Retail trade		1,121		3.9			1,089		3.9			1,045		4.0
Mining		895		3.1			946		3.4			772		2.9
Dealer floor plan		1,405		4.9			1,439		5.2			1,334		5.1
Property management		986		3.4			834		3.0			907		3.5
Transportation		1,291		4.5			1,407		5.0			1,157		4.4
Building contractors		663		2.3			683		2.4			517		2.0
Agriculture/forestry/fishing		623		2.2			675		2.4			484		1.8
Insurance		275		.9			257		.9			221		.8
Public administration		607		2.1			501		1.8			530		2.0
Communications		220		.8			196		.7			186		.7
Other		2,291		8.0			2,205		7.9			2,401		9.2
Total	$	28,783		100.0	%	$	27,982		100.0	%	$	26,224		100.0	%

Commercial, financial and agricultural loans increased $2.6 billion, or 9.8% from the same period last year, with Key Corporate Bank increasing $2.1 billion and Key Community Bank up $460 million. We have experienced growth in new high credit quality loan commitments and utilization with clients in our middle market segment and Institutional and Capital Markets business. Our two largest industry classifications—services and manufacturing—increased by 2.8% and 9.2%, respectively, when compared to one year ago. The services and manufacturing industries represented approximately 22% and 17%, respectively, of the total commercial, financial and agricultural loan portfolio at March 31, 2015, and approximately 23% and 17%, respectively, at March 31, 2014. At the end of each period provided in Figure 18 above, loans in the services and manufacturing industry classifications accounted for approximately 40% of our total commercial, financial and agricultural loan portfolio.

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Services, manufacturing, and public utilities are focus areas where we maintain dedicated industry verticals that are staffed by relationship managers who possess deep industry experience and knowledge. Our loans in the services classification grew by $167 million, or 2.8%, compared to last year. Loans in the manufacturing classification grew by $407 million, or 9.2% compared to the same period one year ago. Increases in lending to large corporate, middle market, and business banking clients accounted for the majority of the growth in this classification. Loans in public utilities grew by $401 million, or 23.3% compared to the same period one year ago.

Our loans in the financial services and transportation classifications increased 12.2% and 11.6%, respectively, compared to the prior year. The increase in financial services loans was primarily attributable to growth in REIT balances. The increase in transportation loans was primarily attributable to loan growth for rail cars and shipping containers.

Our oil and gas loan portfolio focuses on lending to middle market companies and represents 2% of total loans outstanding at March 31, 2015. We have over 10 years of experience in energy lending with over 20 specialists dedicated to oil and gas. Credit quality on these loans remains solid.

Commercial real estate loans. Our commercial real estate (“CRE”) lending business is conducted through two primary sources: our 12-state banking franchise, and KeyBank Real Estate Capital, a national line of business that cultivates relationships with owners of CRE located both within and beyond the branch system. This line of business deals primarily with nonowner-occupied properties (generally properties for which at least 50% of the debt service is provided by rental income from nonaffiliated third parties) and accounted for approximately 67% of our average year-to-date CRE loans, compared to 59% one year ago. KeyBank Real Estate Capital generally focuses on larger owners and operators of CRE.

CRE loans totaled $9.3 billion and $8.9 billion and represented 16% of our total loan portfolio at March 31, 2015, and March 31, 2014. These loans, which include both owner- and nonowner-occupied properties, represented 22% of our commercial loan portfolio at March 31, 2015, and March 31, 2014. We have been de-risking the portfolio by changing our focus from developers to owners of completed and stabilized CRE.

Figure 19 includes commercial mortgage and construction loans in both Key Community Bank and Key Corporate Bank. As shown in Figure 19, this loan portfolio is diversified by both property type and geographic location of the underlying collateral.

As presented in Figure 19, at March 31, 2015, our CRE portfolio included mortgage loans of $8.2 billion and construction loans of $1.1 billion, representing 14% and 2%, respectively, of our total loans. At March 31, 2015, nonowner-occupied loans represented 12% of our total loans and owner-occupied loans represented 5% of our total loans. The average size of mortgage loans originated during the first quarter of 2015 was $8.9 million, and our largest mortgage loan at March 31, 2015, had a balance of $105 million. At March 31, 2015, our average construction loan commitment was $6.1 million. Our largest construction loan commitment was $49.8 million, and our largest construction loan amount outstanding was $42.9 million.

Also shown in Figure 19, 72% of our CRE loans at March 31, 2015, were for nonowner-occupied properties compared to 68% at March 31, 2014. Approximately 15% of these loans were construction loans at March 31, 2015, compared to 14% at March 31, 2014. Typically, these properties are not fully leased at the origination of the loan. The borrower relies upon additional leasing through the life of the loan to provide the cash flow necessary to support debt service payments. A significant decline in economic growth, and in turn rental rates and occupancy would adversely affect our portfolio of construction loans.

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Figure 19. Commercial Real Estate Loans

	Geographic Region																Percent of					Commercial
dollars in millions	West		Southwest		Central		Midwest		Southeast		Northeast		National		Total		Total			Construction		Mortgage
March 31, 2015
Nonowner-occupied:
Retail properties	$	185	$	135	$	91	$	124	$	187	$	59	$	132	$	913		9.8	%	$	132	$	781
Multifamily properties		509		119		585		531		751		143		169		2,807		30.2			541		2,266
Health facilities		174		—		168		152		156		284		166		1,100		11.8			124		976
Office buildings		225		16		151		96		50		99		—		637		6.8			100		537
Warehouses		205		—		26		102		71		77		130		611		6.6			32		579
Manufacturing facilities		24		—		—		5		78		1		30		138		1.5			21		117
Hotels/Motels		37		—		9		7		17		6		—		76		.8			—		76
Residential properties		1		—		26		2		3		10		—		42		.5			8		34
Land and development		4		—		7		8		12		11		—		42		.5			32		10
Other		62		—		7		11		39		89		93		301		3.2			12		289
Total nonowner-occupied		1,426		270		1,070		1,038		1,364		779		720		6,667		71.7			1,002		5,665
Owner-occupied		1,108		7		289		600		47		586		—		2,637		28.3			140		2,497
Total	$	2,534	$	277	$	1,359	$	1,638	$	1,411	$	1,365	$	720	$	9,304		100.0	%	$	1,142	$	8,162
December 31, 2014
Total	$	2,518	$	307	$	1,261	$	1,668	$	1,393	$	1,315	$	685	$	9,147				$	1,100	$	8,047
March 31, 2014
Total	$	2,461	$	299	$	1,055	$	1,633	$	1,313	$	1,370	$	753	$	8,884				$	1,007	$	7,877
March 31, 2015
Nonowner-occupied:
Nonperforming loans		—		—		—	$	8		—	$	9		—	$	17		N/M		$	7	$	10
Accruing loans past due 90 days or more	$	2		—		—		2		—		4		—		8		N/M			—		8
Accruing loans past due 30 through 89 days		—		—		—		1	$	14		—		—		15		N/M			—		15

West –	Alaska, California, Hawaii, Idaho, Montana, Oregon, Washington, and Wyoming
Southwest –	Arizona, Nevada, and New Mexico
Central –	Arkansas, Colorado, Oklahoma, Texas, and Utah
Midwest –	Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, and Wisconsin
Southeast –	Alabama, Delaware, Florida, Georgia, Kentucky, Louisiana, Maryland, Mississippi, North Carolina, South Carolina, Tennessee, Virginia, Washington D.C., and West Virginia
Northeast –	Connecticut, Maine, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, and Vermont
National –	Accounts in three or more regions

During the first three months of 2015, nonperforming loans related to nonowner-occupied properties decreased by $4 million from December 31, 2014, to $17 million at March 31, 2015, and increased by $1 million when compared to March 31, 2014. Our nonowner-occupied CRE portfolio has increased by 10%, or approximately $591 million, since March 31, 2014.

Commercial lease financing. We conduct commercial lease financing arrangements through our KEF line of business and have both the scale and array of products to compete in the equipment lease financing business. Commercial lease financing receivables represented 10% of commercial loans at March 31, 2015, and 11% at March 31, 2014.

Commercial loan modification and restructuring

We modify and extend certain commercial loans in the normal course of business for our clients. Loan modifications vary and are handled on a case-by-case basis with strategies responsive to the specific circumstances of each loan and borrower. In many cases, borrowers have other resources and can reinforce the credit with additional capital, collateral, guarantees, or income sources.

Modifications are negotiated to achieve mutually agreeable terms that maximize loan credit quality while at the same time meeting our clients’ financing needs. Modifications made to loans of creditworthy borrowers not experiencing financial difficulties and under circumstances where ultimate collection of all principal and interest is not in doubt are not classified as TDRs. In accordance with applicable accounting guidance, a loan is classified as a TDR only when the borrower is experiencing financial difficulties and a creditor concession has been granted.

Our concession types are primarily interest rate reductions, forgiveness of principal, and other modifications. Loan extensions are sometimes coupled with these primary concession types. Because economic conditions have improved modestly and we have restructured loans to provide the optimal opportunity for successful repayment by the borrower, certain of our restructured loans have returned to accrual status and consistently performed under the restructured loan terms over the past year.

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If loan terms are extended at less than normal market rates for similar lending arrangements, our Asset Recovery Group is consulted to help determine if any concession granted would result in designation as a TDR. Transfer to our Asset Recovery Group is considered for any commercial loan determined to be a TDR. During the first three months of 2015, we did not have any new restructured commercial loans compared to $3 million of new restructured commercial loans in the first three months of 2014.

For more information on concession types for our commercial accruing and nonaccruing TDRs, see Note 4.

Figure 20. Commercial TDRs by Note Type and Accrual Status

	March 31,		December 31,		September 30,		June 30,		March 31,
in millions	2015		2014		2014		2014		2014
Commercial TDRs by Note Type
Tranche A	$	39	$	40	$	35	$	38	$	61
Total Commercial TDRs	$	39	$	40	$	35	$	38	$	61
Commercial TDRs by Accrual Status
Nonaccruing	$	35	$	36	$	24	$	26	$	49
Accruing		4		4		11		12		12
Total Commercial TDRs	$	39	$	40	$	35	$	38	$	61

We often use an A-B note structure for our TDRs, breaking the existing loan into two tranches. First, we create an A note. Since the objective of this TDR note structure is to achieve a fully performing and well-rated A note, we focus on sizing that note to a level that is supported by cash flow available to service debt at current market terms and consistent with our customary underwriting standards. This note structure typically will include a debt coverage ratio of 1.2 or better of cash flow to monthly payments of market interest, and principal amortization of generally not more than 25 years. (These metrics are adjusted from time to time based upon changes in long-term markets and “take-out underwriting standards” of our various lines of business.) Appropriately sized A notes are more likely to return to accrual status, allowing us to resume recognizing interest income. As the borrower’s payment performance improves, these restructured notes typically also allow for an upgraded internal quality risk rating classification. Moreover, the borrower retains ownership and control of the underlying collateral (typically, CRE), the borrower’s capital structure is strengthened (often to the point that fresh capital is attracted to the transaction), and local markets are spared distressed/fire sales.

The B note typically is an interest-only note with no required amortization until the property stabilizes and generates excess cash flow. This excess cash flow customarily is applied directly to the principal of the A note. We evaluate the B note when we consider returning the A note to accrual status. In many cases, the B note is charged off at the same time the A note is returned to accrual status. Alternatively, both A and B notes may be simultaneously returned to accrual if credit metrics are supportive.

Restructured nonaccrual loans may be returned to accrual status based on a current, well-documented evaluation of the credit, which would include analysis of the borrower’s financial condition, prospects for repayment under the modified terms, and alternate sources of repayment such as the value of loan collateral. We wait a reasonable period (generally a minimum of six months) to establish the borrower’s ability to sustain historical repayment performance before returning the loan to accrual status. Sustained historical repayment performance prior to the restructuring also may be taken into account. The primary consideration for returning a restructured loan to accrual status is the reasonable assurance that the full contractual principal balance of the loan and the ongoing contractually required interest payments will be fully repaid. Although our policy is a guideline, considerable judgment is required to review each borrower’s circumstances.

All loans processed as TDRs, including A notes and any non-charged-off B notes, are reported as TDRs during the calendar year in which the restructure took place.

Additional information regarding TDRs is provided in Note 4 (“Asset Quality”).

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Extensions. Project loans typically are refinanced into the permanent commercial loan market at maturity, but sometimes they are modified and extended. Extension terms take into account the specific circumstances of the client relationship, the status of the project, and near-term prospects for both the client and the collateral. In all cases, pricing and loan structure are reviewed and, where necessary, modified to ensure the loan has been priced to achieve a market rate of return and loan terms that are appropriate for the risk. Typical enhancements include one or more of the following: principal pay down, increased amortization, additional collateral, increased guarantees, and a cash flow sweep. Some maturing construction loans have automatic extension options built in; in those cases, pricing and loan terms cannot be altered.

Loan pricing is determined based on the strength of the borrowing entity and the strength of the guarantor, if any. Therefore, pricing for an extended loan may remain the same because the loan is already priced at or above current market.

We do not consider loan extensions in the normal course of business (under existing loan terms or at market rates) as TDRs, particularly when ultimate collection of all principal and interest is not in doubt and no concession has been made. In the case of loan extensions where either collection of all principal and interest is uncertain or a concession has been made, we would analyze such credit under the applicable accounting guidance to determine whether it qualifies as a TDR. Extensions that qualify as TDRs are measured for impairment under the applicable accounting guidance.

Guarantors. We conduct a detailed guarantor analysis (1) for all new extensions of credit, (2) at the time of any material modification/extension, and (3) typically annually, as part of our on-going portfolio and loan monitoring procedures. This analysis requires the guarantor entity to submit all appropriate financial statements, including balance sheets, income statements, tax returns, and real estate schedules.

While the specific steps of each guarantor analysis may vary, the high-level objectives include determining the overall financial conditions of the guarantor entities, including size, quality, and nature of asset base; net worth (adjusted to reflect our opinion of market value); leverage; standing liquidity; recurring cash flow; contingent and direct debt obligations; and near-term debt maturities.

Borrower and guarantor financial statements are required at least annually within 90-120 days of the calendar/fiscal year end. Income statements and rent rolls for project collateral are required quarterly. We may require certain information, such as liquidity, certifications, status of asset sales or debt resolutions, and real estate schedules, to be provided more frequently.

We routinely seek performance from guarantors of impaired debt if the guarantor is solvent. We may not seek to enforce the guaranty if we are precluded by bankruptcy or we determine the cost to pursue a guarantor exceeds the value to be returned given the guarantor’s verified financial condition. We often are successful in obtaining either monetary payment or the cooperation of our solvent guarantors to help mitigate loss, cost, and the expense of collections.

As of March 31, 2015, we had $3.3 million of mortgage and construction loans that had a loan-to-value ratio greater than 1.0, and were accounted for as performing loans. These loans were not considered impaired due to one or more of the following factors: (i) underlying cash flow adequate to service the debt at a market rate of return with adequate amortization; (ii) a satisfactory borrower payment history; and (iii) acceptable guarantor support.

Consumer loan portfolio

Consumer loans outstanding decreased by $139 million, or .9%, from one year ago. The home equity portfolio is the largest segment of our consumer loan portfolio. Approximately 98% of this portfolio at March 31, 2015, was originated from our Key Community Bank within our 12-state footprint. The remainder of the portfolio, which has been in an exit mode since the fourth quarter of 2007, was originated from the Consumer Finance line of business and is now included in Other Segments. Home equity loans in Key Community Bank decreased by $11 million, or .1%, over the past twelve months.

As shown in Figure 16, we held the first lien position for approximately 60% of the Key Community Bank home equity portfolio at March 31, 2015, and 58% at March 31, 2014. For consumer loans with real estate collateral, we track borrower performance monthly. Regardless of the lien position, credit metrics are refreshed quarterly, including recent Fair Isaac Corporation scores as well as original and updated loan-to-value ratios. This information is used in establishing the ALLL. Our methodology is described in Note 1 (“Summary of Significant Accounting Policies”) under the heading “Allowance for Loan and Lease Losses” beginning on page 117 of our 2014 Form 10-K.

Regulatory guidance issued in January 2012 addressed specific risks and required actions within home equity portfolios associated with second lien loans. At March 31, 2015, 40% of our home equity portfolio was secured by second lien mortgages. On at least a quarterly basis, we continue to monitor the risk characteristics of these loans when determining whether our loss estimation methods are appropriate.

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Figure 21 summarizes our home equity loan portfolio by source at the end of each of the last five quarters, as well as certain asset quality statistics and yields on the portfolio as a whole.

Figure 21. Home Equity Loans

	2015			2014
dollars in millions	First			Fourth			Third			Second			First
SOURCES OF PERIOD-END LOANS
Key Community Bank	$	10,270		$	10,366		$	10,380		$	10,379		$	10,281
Other		253			267			283			300			315
Total	$	10,523		$	10,633		$	10,663		$	10,679		$	10,596
Nonperforming loans at period end	$	191		$	195		$	184		$	189		$	199
Net loan charge-offs for the period		5			6			7			10			9
Yield for the period		3.99	%		4.01	%		4.01	%		4.03	%		4.04	%

Loans held for sale

As shown in Note 3 (“Loans and Loans Held for Sale”), our loans held for sale increased to $1.6 billion at March 31, 2015, from $734 million at December 31, 2014, and $401 million at March 31, 2014.

At March 31, 2015, loans held for sale included $183 million of commercial, financial and agricultural loans, which increased by $139 million from March 31, 2014, $1.4 billion of commercial mortgage loans, which increased $1.1 billion from March 31, 2014, and $44 million of residential mortgage loans, which increased $28 million from March 31, 2014.

Loan sales

As shown in Figure 22, during the first three months of 2015, we sold $1 billion of CRE loans, $120 million of residential real estate loans, $58 million of commercial loans, and $63 million of commercial lease financing loans. Most of these sales came from the held-for-sale portfolio; however, $47 million of these loan sales related to the held-to-maturity portfolio.

Loan sales classified as held for sale generated net gains of $20 million in the first three months of 2015 and are included in “investment banking and debt placement fees” and “other income” on the income statement.

Among the factors that we consider in determining which loans to sell are:

• our business strategy for particular lending areas;

• whether particular lending businesses meet established performance standards or fit with our relationship banking strategy;

• our A/LM needs;

• the cost of alternative funding sources;

• the level of credit risk;

• capital requirements; and

• market conditions and pricing.

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Figure 22 summarizes our loan sales for the first three months of 2015 and all of 2014.

Figure 22. Loans Sold (Including Loans Held for Sale)

					Commercial
			Commercial		Lease		Residential
in millions	Commercial		Real Estate		Financing		Real Estate		Total
2015
First quarter	$	58	$	1,010	$	63	$	120	$	1,251
Total	$	58	$	1,010	$	63	$	120	$	1,251
2014
Fourth quarter	$	29	$	2,333	$	80	$	103	$	2,545
Third quarter		179		913		48		127		1,267
Second quarter		152		679		45		104		980
First quarter		16		489		39		73		617
Total	$	376	$	4,414	$	212	$	407	$	5,409

Figure 23 shows loans that are either administered or serviced by us, but not recorded on the balance sheet, and includes loans that were sold.

Figure 23. Loans Administered or Serviced

	March 31,		December 31,		September 30,		June 30,		March 31,
in millions	2015		2014		2014		2014		2014
Commercial real estate loans	$	201,397	$	191,407	$	179,293	$	179,194	$	174,601
Education loans (a)		—		1,589		1,655		—		—
Commercial lease financing		701		722		709		708		717
Commercial loans		347		344		340		327		325
Total	$	202,445	$	194,062	$	181,997	$	180,229	$	175,643

(a) During the third quarter of 2014, we sold the residual interests in all of our outstanding education loan securitization trusts to a third party. At September 30, 2014, we deconsolidated the securitization trusts and removed the trust assets from our balance sheet. We retained the servicing for the loans associated with these securitization trusts. See Note 11 (“Acquisitions and Discontinued Operations”) for more information about this transaction.

In the event of default by a borrower, we are subject to recourse with respect to approximately $1.5 billion of the $202 billion of loans administered or serviced at March 31, 2015. Additional information about this recourse arrangement is included in Note 15 (“Contingent Liabilities and Guarantees”) under the heading “Recourse agreement with FNMA.”

We derive income from several sources when retaining the right to administer or service loans that are sold. We earn noninterest income (recorded as “mortgage servicing fees”) from fees for servicing or administering loans. This fee income is reduced by the amortization of related servicing assets. In addition, we earn interest income from investing funds generated by escrow deposits collected in connection with the servicing of commercial real estate loans.

Securities

Our securities portfolio totaled $18.1 billion at March 31, 2015, compared to $18.4 billion at December 31, 2014, and $17.2 million at March 31, 2014. Available-for-sale securities were $13.1 billion at March 31, 2015, compared to $13.4 billion at December 31, 2014, and $12.4 million at March 31, 2014. Held-to-maturity securities were $5 billion at March 31, 2015, compared to $5 billion at December 31, 2014, and $4.8 million at March 31, 2014.

As shown in Figure 24, all of our mortgage-backed securities, which include both securities available for sale and held-to-maturity securities, are issued by government-sponsored enterprises or GNMA, and are traded in liquid secondary markets. These securities are recorded on the balance sheet at fair value for the available-for-sale portfolio and at cost for the held-to-maturity portfolio. For more information about these securities, see Note 5 (“Fair Value Measurements”) under the heading “Qualitative Disclosures of Valuation Techniques,” and Note 6 (“Securities”).

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Figure 24. Mortgage-Backed Securities by Issuer

	March 31,		December 31,		March 31,
in millions	2015		2014		2014
FHLMC	$	5,352	$	5,666	$	6,728
FNMA		4,761		4,998		5,832
GNMA		7,935		7,636		4,547
Total (a)	$	18,048	$	18,300	$	17,107

(a) Includes securities held in the available-for-sale and held-to-maturity portfolios.

Securities available for sale

The majority of our securities available-for-sale portfolio consists of Federal Agency CMOs and mortgage-backed securities. CMOs are debt securities secured by a pool of mortgages or mortgage-backed securities. These mortgage securities generate interest income, serve as collateral to support certain pledging agreements, and provide liquidity value under upcoming regulatory requirements. At March 31, 2015, we had $13.1 billion invested in CMOs and other mortgage-backed securities in the available-for-sale portfolio, compared to $13.3 billion at December 31, 2014, and $12.3 at March 31, 2014.

We periodically evaluate our securities available-for-sale portfolio in light of established A/LM objectives, changing market conditions that could affect the profitability of the portfolio, the regulatory environment, and the level of interest rate risk to which we are exposed. These evaluations may cause us to take steps to adjust our overall balance sheet positioning.

In addition, the size and composition of our securities available-for-sale portfolio could vary with our needs for liquidity and the extent to which we are required (or elect) to hold these assets as collateral to secure public funds and trust deposits. Although we generally use debt securities for this purpose, other assets, such as securities purchased under resale agreements or letters of credit, are used occasionally when they provide a lower cost of collateral or more favorable risk profiles.

Throughout 2014 and the first quarter of 2015, our investing activities continued to complement other balance sheet developments and provide for our ongoing liquidity management needs. Our actions to not reinvest the monthly security cash flows at various times during this time period served to provide the liquidity necessary to address our funding requirements. These funding requirements included ongoing loan growth and occasional debt maturities. At other times, we may make additional investments that go beyond the replacement of maturities or mortgage security cash flows as our liquidity position and/or interest rate risk management strategies may require. Lastly, our focus on investing in GNMA-related securities is also related to liquidity management strategies as we continue to make progress in preparing for future regulatory requirements.

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Figure 25 shows the composition, yields, and remaining maturities of our securities available for sale. For more information about these securities, including gross unrealized gains and losses by type of security and securities pledged, see Note 6.

Figure 25. Securities Available for Sale

							Other
	States and			Collateralized			Mortgage-								Weighted-
	Political			Mortgage			Backed			Other					Average
dollars in millions	Subdivisions			Obligations (a)			Securities (a)			Securities (b)		Total			Yield (c)
March 31, 2015
Remaining maturity:
One year or less	$	1		$	291			—			—	$	292			2.98	%
After one through five years		14			10,744		$	1,885		$	33		12,676			2.11
After five through ten years		7			128			14			—		149			2.67
After ten years		—			—			3			—		3			5.50
Fair value	$	22		$	11,163		$	1,902		$	33	$	13,120			—
Amortized cost		21			11,116			1,870			30		13,037			2.14	%
Weighted-average yield (c)		6.20	%		2.13	%		2.14	%		—		2.14	%(d)		—
Weighted-average maturity		3.8 years			3.4 years			3.3 years			3.3 years		3.4 years			—
December 31, 2014
Fair value	$	23		$	11,270		$	2,035		$	32	$	13,360			—
Amortized cost		22			11,310			2,004			29		13,365			2.24	%
March 31, 2014
Fair value	$	37		$	10,469		$	1,832		$	21	$	12,359			—
Amortized cost		37			10,541			1,817			17		12,412			2.32	%

(a) Maturity is based upon expected average lives rather than contractual terms.

(b) Includes primarily marketable equity securities.

(c) Weighted-average yields are calculated based on amortized cost. Such yields have been adjusted to a taxable-equivalent basis using the statutory federal income tax rate of 35%.

(d) Excludes $33 million of securities at March 31, 2015, that have no stated yield.

Held-to-maturity securities

Federal Agency CMOs and mortgage-backed securities constitute essentially all of our held-to-maturity securities. The remaining balance comprises foreign bonds and capital securities. Figure 26 shows the composition, yields and remaining maturities of these securities.

Figure 26. Held-to-Maturity Securities

	Collateralized			Other									Weighted-
	Mortgage			Mortgage-backed			Other						Average
dollars in millions	Obligations			Securities			Securities			Total			Yield (a)
March 31, 2015
Remaining maturity:
One year or less		—			—		$	9		$	9			3.05	%
After one through five years	$	4,491			—			13			4,504			1.86
After five through ten years		258		$	234			—			492			2.43
Amortized cost	$	4,749		$	234		$	22		$	5,005			1.92	%
Fair value		4,745			236			22			5,003			—
Weighted-average yield		1.88	%		2.69	%		2.69	%(b)		1.92	%(b)		—
Weighted-average maturity		3.4 years			7.2 years			2.0 years			3.6 years			—
December 31, 2014
Amortized cost	$	4,755		$	240		$	20		$	5,015			1.95	%
Fair value		4,713			241			20			4,974			—
March 31, 2014
Amortized cost	$	4,806			—		$	20		$	4,826			1.86	%
Fair value		4,713			—			20			4,733			—

(a) Weighted-average yields are calculated based on amortized cost. Such yields have been adjusted to a taxable-equivalent basis using the statutory federal income tax rate of 35%.

(b) Excludes $5 million of securities at March 31, 2015, that have no stated yield.

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Other investments

Principal investments — investments in equity and debt instruments made by our Principal Investing unit — represented 51% of other investments at March 31, 2015. They include direct investments (investments made in a particular company) as well as indirect investments (investments made through funds that include other investors). Principal investments are predominantly made in privately held companies and are carried at fair value. The fair value of the direct investments was $74 million at March 31, 2015, $104 million at December 31, 2014, and $141 million at March 31, 2014, while the fair value of the indirect investments was $301 million at March 31, 2015, $302 million at December 31, 2014, and $403 million at March 31, 2014. Under the requirements of the Volcker Rule, we will be required to dispose of some or all of our indirect principal investments. On December 18, 2014, the Federal Reserve extended the conformance period to July 21, 2016, for all banking entities with respect to covered funds. The Federal Reserve also indicated its intent to exercise the authority granted by Section 13 of the Bank Holding Company Act to grant the final one-year extension until July 21, 2017. If this authority is not exercised by the Federal Reserve, Key is permitted to file for an additional extension of up to five years for illiquid funds, to retain the indirect investments for a longer period of time. We plan to apply for the extension, if not granted automatically, and hold the investments. As of March 31, 2015, we have not committed to a plan to sell these investments. For more information about the Volcker Rule, see the discussion under the heading “Other Regulatory Developments under the Dodd-Frank Act – ‘Volcker Rule’” in the section entitled “Supervision and Regulation” beginning on page 16 of our 2014 Form 10-K.

In addition to principal investments, “other investments” include other equity and mezzanine instruments, such as certain real-estate-related investments that are carried at fair value, as well as other types of investments that generally are carried at cost. There are indirect real-estate-related investments valued at $9 million at March 31, 2015, $10 million at December 31, 2014, and $20 million at March 31, 2014, that may be subject to the disposal requirements under the Volcker Rule, as described in the previous paragraph.

Most of our other investments are not traded on an active market. We determine the fair value at which these investments should be recorded based on the nature of the specific investment and all available relevant information. This review may encompass such factors as the issuer’s past financial performance and future potential, the values of public companies in comparable businesses, the risks associated with the particular business or investment type, current market conditions, the nature and duration of resale restrictions, the issuer’s payment history, our knowledge of the industry, third-party data, and other relevant factors. During the first three months of 2015, net gains from our principal investing activities (including results attributable to noncontrolling interests) totaled $29 million, which includes $18 million of net unrealized losses. These net gains are recorded as “net gains (losses) from principal investing” on the income statement. Additional information regarding these investments is provided in Note 5 (“Fair Value Measurements”).

Deposits and other sources of funds

Domestic deposits are our primary source of funding. During the first quarter of 2015, average domestic deposits were $68.8 billion and represented 86% of the funds we used to support loans and other earning assets, compared to $65.6 billion and 86% during the first quarter of 2014. The composition of our average deposits is shown in Figure 8 in the section entitled “Net interest income.”

The increase in average domestic deposits from the first quarter of 2014 to the first quarter of 2015 was due to increases in noninterest-bearing deposits of $3.6 billion and NOW and money market deposit accounts of $888 million. These increases were mostly due to the commercial mortgage servicing business. This growth was partially offset by a decline in certificates of deposit.

Wholesale funds, consisting of deposits in our foreign office and short-term borrowings, averaged $1.8 billion during the first quarter of 2015, compared to $2.7 billion during the first quarter of 2014. The change from the first quarter of 2014 was caused by decreases of $749 million in federal funds purchased and securities sold under agreements to repurchase, $131 million in foreign office deposits, and $81 million in bank notes and other short-term borrowings.

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Capital

At March 31, 2015, our shareholders’ equity was $10.6 billion, up $73 million from December 31, 2014. The following sections discuss certain factors that contributed to this change. For other factors that contributed to the change, see the Consolidated Statements of Changes in Equity (Unaudited).

CCAR and capital actions

As part of its ongoing supervisory process, the Federal Reserve requires BHCs like KeyCorp to submit an annual comprehensive capital plan and to update that plan to reflect material changes in the BHC’s risk profile, business strategies, or corporate structure, including but not limited to changes in planned capital actions. In January 2015, we submitted to the Federal Reserve and provided to the OCC our 2015 capital plan under the annual CCAR process. On March 11, 2015, the Federal Reserve announced that it did not object to our 2015 capital plan. The 2015 capital plan includes a common share repurchase program of up to $725 million. Share repurchases under the 2015 capital plan began in the second quarter of 2015 and include repurchases to offset issuances of common shares under our employee compensation plans. Common share repurchases under the 2015 capital plan are expected to be executed through the second quarter of 2016.

During the first quarter of 2015, we repurchased $208 million of common shares under our 2014 capital plan authorization.

Dividends

Consistent with the 2014 capital plan, we made a dividend payment of $.065 per share, or $55 million, on our common shares during the first quarter of 2015.

We also made a quarterly dividend payment of $1.9375 per share, or $5.6 million, on our Series A Preferred Stock during the first quarter of 2015.

Our 2015 capital plan proposed an increase in our quarterly common share dividend from $.065 to $.075 per share, which will be evaluated by our Board of Directors in May 2015. An additional potential increase in our quarterly common share dividend, up to $.085 per share, will be considered by the Board in 2016 for the fifth quarter of the 2015 capital plan. Other changes to future dividends may be evaluated by the Board based upon our earnings, financial condition, and other factors, including regulatory review. Further information regarding the capital planning process and CCAR is included under the heading “Regulatory capital and liquidity” in the “Supervision and Regulation” section beginning on page 10 of our 2014 Form 10-K.

Common shares outstanding

Our common shares are traded on the NYSE under the symbol KEY with 28,285 holders of record at March 31, 2015. Our book value per common share was $12.12 based on 850.9 million shares outstanding at March 31, 2015, compared to $11.91 per common share based on 859.4 million shares outstanding at December 31, 2014, and $11.43 per common share based on 884.9 million shares outstanding at March 31, 2014. At March 31, 2015, our tangible book value per common share was $10.84, compared to $10.65 per common share at December 31, 2014, and $10.28 per common share at March 31, 2014.

Figure 27 shows activities that caused the change in outstanding common shares over the past five quarters.

Figure 27. Changes in Common Shares Outstanding

	2015			2014
in thousands	First			Fourth			Third			Second			First
Shares outstanding at beginning of period		859,403			868,477			876,823			884,869			890,724
Common shares repurchased		(14,087	)		(9,786	)		(8,830	)		(7,824	)		(9,845	)
Shares reissued (returned) under employee benefit plans		5,571			712			484			(222	)		3,990
Common shares exchanged for Series A Preferred Stock		33			—			—			—			—
Shares outstanding at end of period		850,920			859,403			868,477			876,823			884,869

As shown above, common shares outstanding decreased by 8.5 million shares during the first quarter of 2015 due to share repurchases under our 2014 capital plan, partially offset by the net activity in our employee benefit plans.

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At March 31, 2015, we had 166 million treasury shares, compared to 157.6 million treasury shares at December 31, 2014, and 132.1 million treasury shares at March 31, 2014. Going forward we expect to reissue treasury shares as needed in connection with stock-based compensation awards and for other corporate purposes.

Information on repurchases of common shares by KeyCorp is included in Part II, Item 2. “Unregistered Sales of Equity Securities and Use of Proceeds” of this report.

Capital adequacy

Capital adequacy is an important indicator of financial stability and performance. All of our capital ratios remained in excess of regulatory requirements at March 31, 2015. Our capital and liquidity levels are intended to position us to weather an adverse credit cycle while continuing to serve our clients’ needs, as well as to meet the Regulatory Capital Rules described in the “Supervision and regulation” section of Item 2 of this report. Our shareholders’ equity to assets ratio was 11.26% at March 31, 2015, compared to 11.22% at December 31, 2014, and 11.46% at March 31, 2014. Our tangible common equity to tangible assets ratio was 9.92% at March 31, 2015, compared to 9.88% at December 31, 2014, and10.14% at March 31, 2014.

Federal banking regulators have promulgated minimum risk-based capital and leverage ratio requirements for BHCs like KeyCorp and their banking subsidiaries like KeyBank. As of January 1, 2015, Key and KeyBank (consolidated) were each required to maintain a minimum Tier 1 risk-based capital ratio of 6.00%, a total risk-based capital ratio of 8.00%, and a Tier 1 leverage ratio of 4.00%. At March 31, 2015, our Tier 1 risk-based capital ratio, total risk-based capital ratio, and Tier 1 leverage ratio were 11.04%, 12.79%,and 10.91%, respectively, compared to 11.90%, 13.89%, and 11.26%, respectively, at December 31, 2014, and 12.01%, 14.23%, and 11.30% at March 31, 2014.

The adoption of the Regulatory Capital Rules changes the regulatory capital standards that apply to BHCs by phasing out the treatment of capital securities and cumulative preferred securities as eligible Tier 1 capital. The phase-out period, which began January 1, 2015, for standardized approach banking organizations such as KeyCorp, will result in our trust preferred securities issued by the KeyCorp capital trusts being treated only as Tier 2 capital by 2016. The trust preferred securities issued by the KeyCorp capital trusts contribute $85 million, or 9 and 10 basis points, to our Tier 1 risk-based capital ratio of 11.04% and Tier 1 leverage ratio of 10.91%, respectively, at March 31, 2015. The trust preferred securities contribute $340 million, or 37 basis points, to our total risk-based capital ratio of 12.79% at March 31, 2015. The new minimum capital and leverage ratios under the Regulatory Capital Rules together with the estimated ratios of Key at March 31, 2015, calculated on a fully phased-in basis, are set forth under the heading “New minimum capital and leverage ratio requirements” in the “Supervision and regulation” section in Item 2 of this report.

As previously indicated in the “Supervision and Regulation” section of Item 1 of our 2014 Form 10-K under the heading “Revised prompt corrective action capital category ratios,” the prompt corrective action capital category regulations do not apply to BHCs. If, however, these regulations did apply to BHCs, we believe KeyCorp would qualify for the “well capitalized” capital category at March 31, 2015. Moreover, after accounting for the phase-out of our trust preferred securities as Tier 1 eligible (and therefore as Tier 2 instead) as of March 31, 2015, we estimate KeyCorp would still qualify for the “well capitalized” capital category under the regulatory capital regulations, with an estimated Tier 1 risk-based capital ratio, estimated Tier 1 leverage ratio, and estimated total risk-based capital ratio of 10.95%, 10.81%, and 12.79%, respectively. The new threshold ratios for a “well capitalized” and an “adequately capitalized” institution under the Regulatory Capital Rules are described in the “Supervision and regulation” section of Item 2 of this report under the heading “Revised prompt corrective action capital category ratios.” Since the regulatory capital categories under these regulations serve a limited supervisory function, investors should not use them as a representation of the overall financial condition or prospects of KeyCorp. A discussion of the regulatory capital standards and other related capital adequacy regulatory standards is included in the section “Regulatory capital and liquidity” in “Supervision and Regulation” under Item 1 of our 2014 Form 10-K.

Traditionally, the banking regulators have assessed bank and BHC capital adequacy based on both the amount and composition of capital, the calculation of which is prescribed in federal banking regulations. The Federal Reserve’s assessment of capital adequacy previously focused on a component of Tier 1 risk-based capital, known as Tier 1 common equity, and its review of the consolidated capitalization of systemically important financial companies, including KeyCorp. The capital modifications mandated by the Regulatory Capital Rules, which became effective on January 1, 2015, for Key, require higher and better-quality capital and introduced a new capital measure, “Common Equity Tier 1.” Common Equity Tier 1 is not formally defined by GAAP and is considered to be a non-GAAP financial measure. Figure 7 in the “Highlights of Our Performance” section reconciles Key shareholders’ equity, the GAAP performance measure, to Common Equity Tier 1, the corresponding non-GAAP measure. Our Common Equity Tier 1 ratio was 10.64% at March 31, 2015.

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At March 31, 2015, for Key’s consolidated operations, we had a federal net deferred tax asset of $105 million and a state deferred tax asset of $14 million, compared to a federal net deferred tax asset of $133 million and a state deferred tax asset of $3 million at March 31, 2014. We recorded a valuation allowance of less than $1 million against the gross deferred tax assets associated with certain state net operating loss carryforwards and state credit carryforwards at March 31, 2015, compared to $1 million at March 31, 2014. Starting with the implementation of the Regulatory Capital Rules on January 1, 2015, deferred tax assets that arise from net operating loss and tax credit carryforwards are deductible from Common Equity Tier 1 on a phase-in basis. As of March 31, 2015, this balance was approximately $1 million.

Figure 28 represents the details of our regulatory capital position at March 31, 2015, under the Regulatory Capital Rules. Figure 29 represents the details of our regulatory capital position at December 31, 2014, and March 31, 2014.

Figure 28. Capital Components and Risk-Weighted Assets (Regulatory Capital Rules)

dollars in millions		March 31, 2015
COMMON EQUITY TIER 1
Key shareholders’ equity (GAAP)		$	10,603
Less:	Preferred Stock, Series A (a)		281
	Common Equity Tier 1 capital before adjustments and deductions		10,322
Less:	Goodwill, net of deferred tax liabilities		1,036
	Intangible assets, net of deferred tax liabilities		36
	Deferred tax assets		1
	Net unrealized gains (losses) on available-for-sale securities		52
	Accumulated gain (loss) on cash flow hedges		(8	)
	Amounts recorded in accumulated other comprehensive income (loss) related to pension and postretirement benefit costs		(364	)
	Total Common Equity Tier 1 capital	$	9,569
TIER 1 CAPITAL
Common Equity Tier 1		$	9,569
Additional Tier 1 Capital instruments and related surplus			281
Non-qualifying capital instruments subject to phase out			85
Less:	Deductions		1
	Total Tier 1 capital		9,934
TIER 2 CAPITAL
Tier 2 capital instruments and related surplus			713
Allowance for losses on loans and liability for losses on lending-related commitments (b)			861
Net unrealized gains on available for sale preferred stock classified as an equity security			1
Less:	Deductions		—
	Total Tier 2 capital		1,575
	Total risk-based capital	$	11,509
RISK-WEIGHTED ASSETS
Risk-weighted assets on balance sheet		$	68,023
Risk-weighted off-balance sheet exposure			21,205
Market risk-equivalent assets			739
	Gross risk-weighted assets		89,967
Less:	Excess allowance for loan and lease losses		—
	Net risk-weighted assets	$	89,967
AVERAGE QUARTERLY TOTAL ASSETS		$	91,838
CAPITAL RATIOS
Tier 1 risk-based capital			11.04	%
Total risk-based capital			12.79
Leverage (c)			10.91
Common Equity Tier 1			10.64

(a) Net of capital surplus.

(b) The ALLL included in Tier 2 capital is limited by regulation to 1.25% of the institution’s standardized total risk-weighted assets (excluding its standardized market risk-weighted assets). The ALLL includes $25 million of allowance classified as “discontinued assets” on the balance sheet at March 31, 2015.

(c) This ratio is Tier 1 capital divided by average quarterly total assets as defined by the Federal Reserve less: (i) goodwill, (ii) the disallowed intangible and deferred tax assets, and (iii) other deductions from assets for leverage capital purposes.

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Figure 29. Capital Components and Risk-Weighted Assets

dollars in millions		December 31, 2014			March 31, 2014
TIER 1 CAPITAL
Key shareholders’ equity		$	10,530		$	10,403
Qualifying capital securities			339			339
Less:	Goodwill		1,057			979
	Accumulated other comprehensive income (a)		(395	)		(367	)
	Other assets (b)		83			84
	Total Tier 1 capital		10,124			10,046
TIER 2 CAPITAL
Allowance for losses on loans and liability for losses on lending-related commitments (c)			859			903
Net unrealized gains on equity securities available for sale			1			2
Qualifying long-term debt			840			948
	Total Tier 2 capital		1,700			1,853
	Total risk-based capital	$	11,824		$	11,899
TIER 1 COMMON EQUITY
Tier 1 capital		$	10,124		$	10,046
Less:	Qualifying capital securities		339			339
	Series A Preferred Stock (d)		282			282
	Total Tier 1 common equity	$	9,503		$	9,425
RISK-WEIGHTED ASSETS
Risk-weighted assets on balance sheet		$	66,054		$	66,057
Risk-weighted off-balance sheet exposure			19,360			17,555
Less:	Goodwill		1,057			979
	Other assets (b)		120			262
Plus:	Market risk-equivalent assets		863			1,266
	Gross risk-weighted assets		85,100			83,637
Less:	Excess allowance for loan and lease losses		—			—
	Net risk-weighted assets	$	85,100		$	83,637
AVERAGE QUARTERLY TOTAL ASSETS		$	91,116		$	90,158
CAPITAL RATIOS
Tier 1 risk-based capital			11.90	%		12.01	%
Total risk-based capital			13.89			14.23
Leverage (e)			11.26			11.30
Tier 1 common equity			11.17			11.27

(a) Includes net unrealized gains or losses on securities available for sale (except for net unrealized losses on marketable equity securities), net gains or losses on cash flow hedges, and amounts resulting from the application of the applicable accounting guidance for defined benefit and other postretirement plans.

(b) Other assets deducted from Tier 1 capital and risk-weighted assets consist of disallowed intangible assets (excluding goodwill) and deductible portions of nonfinancial equity investments. There were no disallowed deferred tax assets at December 31, 2014, and March 31, 2014.

(c) The ALLL included in Tier 2 capital is limited by regulation to 1.25% of the sum of gross risk-weighted assets plus low level exposures and residual interests calculated under the direct reduction method, as defined by the Federal Reserve. The ALLL includes $29 million and $34 million of allowance classified as “discontinued assets” on the balance sheet at December 31, 2014, and March 31, 2014, respectively.

(d) Net of capital surplus.

(e) This ratio is Tier 1 capital divided by average quarterly total assets as defined by the Federal Reserve less: (i) goodwill, (ii) the disallowed intangible assets described in footnote (b), and (iii) deductible portions of nonfinancial equity investments; plus assets derecognized as an offset to AOCI resulting from the adoption and subsequent application of the applicable accounting guidance for defined benefit and other postretirement plans.

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Risk Management

Overview

Like all financial services companies, we engage in business activities and assume the related risks. The most significant risks we face are credit, compliance, operational, capital and liquidity, market, reputation, strategic, and model risks. Our risk management activities are focused on ensuring we properly identify, measure, and manage such risks across the entire enterprise to maintain safety and soundness and maximize profitability. Certain of these risks are defined and discussed in greater detail in the remainder of this section.

The KeyCorp Board of Directors (the “Board”) serves in an oversight capacity ensuring that Key’s risks are managed in a manner that is effective and balanced and adds value for the shareholders. The Board understands Key’s risk philosophy, approves the risk appetite, inquires about risk practices, reviews the portfolio of risks, compares the actual risks to the risk appetite, and is apprised of significant risks, both actual and emerging, and determines whether management is responding appropriately. The Board challenges management and ensures accountability.

The Board’s Audit Committee assists the Board in oversight of financial statement integrity, regulatory and legal requirements, independent auditors’ qualifications and independence, and the performance of the internal audit function and independent auditors. The Audit Committee meets with management and approves significant policies relating to the risk areas overseen by the Audit Committee. The Audit Committee has responsibility over all risk review functions, including internal audit, as well as financial reporting, legal matters, and fraud risk. The Audit Committee also receives reports on enterprise risk. In addition to regularly scheduled bi-monthly meetings, the Audit Committee convenes to discuss the content of our financial disclosures and quarterly earnings releases.

The Board’s Risk Committee assists the Board in oversight of strategies, policies, procedures, and practices relating to the assessment and management of enterprise-wide risk, including credit, market, liquidity, model, operational, compliance, reputation, and strategic risks. The Risk Committee also assists the Board in overseeing risks related to capital adequacy, capital planning, and capital actions. The Risk Committee reviews and provides oversight of management’s activities related to the enterprise-wide risk management framework, which includes review of the Enterprise Risk Management (“ERM”) Policy, including the Risk Appetite Statement, and management and ERM reports. The Risk Committee also approves any material changes to the charter of the ERM Committee and significant policies relating to risk management.

The Audit and Risk Committees meet jointly, as appropriate, to discuss matters that relate to each committee’s responsibilities. Committee chairpersons routinely meet with management during interim months to plan agendas for upcoming meetings and to discuss emerging trends and events that have transpired since the preceding meeting. All members of the Board receive formal reports designed to keep them abreast of significant developments during the interim months.

Our ERM Committee, chaired by the Chief Executive Officer and comprising other senior level executives, is responsible for managing risk and ensuring that the corporate risk profile is managed in a manner consistent with our risk appetite. The ERM Program encompasses our risk philosophy, policy, framework, and governance structure for the management of risks across the entire company. The ERM Committee reports to the Board’s Risk Committee. Annually, the Board reviews and approves the ERM Policy, as well as the risk appetite, including corporate risk tolerances for major risk categories. We use a risk-adjusted capital framework to manage risks. This framework is approved and managed by the ERM Committee.

Tier 2 Risk Governance Committees support the ERM Committee by identifying early warning events and trends, escalating emerging risks, and discussing forward-looking assessments. Risk Governance Committees include attendees from each of the Three Lines of Defense. The First Line of Defense is the Line of Business primarily responsible to accept, own, proactively identify, monitor, and manage risk. The Second Line of Defense comprises Risk Management representatives who provide independent, centralized oversight over all risk categories by aggregating, analyzing, and reporting risk information. Risk Review provides the Third Line of Defense in their role to provide independent assessment and testing of the effectiveness, appropriateness, and adherence to KeyCorp’s risk management policies, practices, and controls.

The Chief Risk Officer ensures that relevant risk information is properly integrated into strategic and business decisions, ensures appropriate ownership of risks, provides input into performance and compensation decisions, assesses aggregate enterprise risk, monitors capabilities to manage critical risks, and executes appropriate Board and stakeholder reporting.

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Federal banking regulators continue to emphasize with financial institutions the importance of relating capital management strategy to the level of risk at each institution. We believe our internal risk management processes help us achieve and maintain capital levels that are commensurate with our business activities and risks, and conform to regulatory expectations.

Market risk management

Market risk is the risk that movements in market risk factors, including interest rates, foreign exchange rates, equity prices, commodity prices, credit spreads, and volatilities will reduce Key’s income and the value of its portfolios. These factors influence prospective yields, values, or prices associated with the instrument. For example, the value of a fixed-rate bond will decline when market interest rates increase, while the cash flows associated with a variable rate loan will increase when interest rates increase. The holder of a financial instrument is exposed to market risk when either the cash flows or the value of the instrument is tied to such external factors.

We are exposed to market risk both in our trading and nontrading activities, which include asset and liability management activities. Our trading positions are carried at fair value with changes recorded in the income statement. These positions are subject to various market-based risk factors that impact the fair value of the financial instruments in the trading category. Our traditional banking loan and deposit products as well as long-term debt and certain short-term borrowings are nontrading positions. These positions are generally carried at the principal amount outstanding for assets and the amount owed for liabilities. The nontrading positions are subject to changes in economic value due to varying market conditions, primarily changes in interest rates.

Trading market risk

Key incurs market risk as a result of trading, investing, and client facilitation activities, principally within our investment banking and capital markets businesses. Key has exposures to a wide range of interest rates, equity prices, foreign exchange rates, credit spreads, and commodity prices, as well as the associated implied volatilities and spreads. Our primary market risk exposures are a result of trading activities in the derivative and fixed income markets and maintaining positions in these instruments. We maintain modest trading inventories to facilitate customer flow, make markets in securities, and hedge certain risks. The majority of our positions are traded in active markets.

Management of trading market risks. Market risk management is an integral part of Key’s risk culture. Oversight of trading market risks is governed by the Risk Committee of our Board, the ERM Committee, and the Market Risk Committee. These committees regularly review and discuss market risk reports prepared by our Market Risk Management group (“MRM”) that contain our market risk exposures and results of monitoring activities. Market risk policies and procedures have been defined and approved by the Market Risk Committee, a Tier 2 Risk Governance Committee, and take into account our tolerance for risk and consideration for the business environment.

MRM is an independent risk management function that partners with the lines of business to identify, measure, and monitor market risks throughout our company. MRM is responsible for ensuring transparency of significant market risks, monitoring compliance with established limits, and escalating limit exceptions to appropriate senior management. The various business units and trading desks are responsible for ensuring that market risk exposures are well-managed and prudent. Market risk is monitored through various measures, such as VaR, and through routine stress testing, sensitivity, and scenario analyses. MRM conducts stress tests for each covered position using historical worst case and standard shock scenarios. VaR, stressed VaR, and other analyses are prepared daily and distributed to appropriate management.

Covered positions. We monitor the market risk of our covered positions, which includes all of our trading positions as well as all foreign exchange and commodity positions, regardless of whether the position is in a trading account. All positions in the trading account are recorded at fair value, and changes in fair value are reflected in our consolidated statements of income. Information regarding our fair value policies, procedures and methodologies is provided in Note 1 (“Summary of Significant Accounting Policies”) under the heading “Fair Value Measurements” and Note 5 (“Fair Value Measurements”) in this report. Instruments that are used to hedge nontrading activities, such as bank-issued debt and loan portfolios, equity positions that are not actively traded, and securities financing activities, do not meet the definition of a covered position. MRM is responsible for identifying our portfolios as either covered or non-covered. The Covered Position Working Group develops the final list of covered positions, and a summary is provided to the Market Risk Committee.

Our significant portfolios of covered positions are detailed below. We analyze market risk by portfolios of covered positions, and do not separately measure and monitor our portfolios by risk type. The descriptions below incorporate the respective risk types associated with each of these portfolios.

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• Fixed income includes those instruments associated with our capital markets business and the trading of securities as a dealer. These instruments may include positions in municipal bonds, bonds backed by the U.S. government, agency and corporate bonds, certain mortgage-backed securities, securities issued by the U.S. Treasury, money markets, and certain CMOs. The activities and instruments within the fixed income portfolio create exposures to interest rate and credit spread risks.

• Interest rate derivatives include interest rate swaps, caps, and floors, which are transacted primarily to accommodate the needs of commercial loan clients. In addition, we enter into interest rate derivatives to offset or mitigate the interest rate risk related to the client positions. The activities within this portfolio create exposures to interest rate risk.

• Credit derivatives generally include credit default swap indexes, which are used to manage the credit risk exposure associated with anticipated sales of certain commercial real estate loans. The transactions within the credit derivatives portfolio result in exposure to counterparty credit risk and market risk.

VaR and stressed VaR. VaR is the estimate of the maximum amount of loss on an instrument or portfolio due to adverse market conditions during a given time interval within a stated confidence level. Stressed VaR is used to assess extreme conditions on market risk within our trading portfolios. MRM calculates VaR and stressed VaR on a daily basis, and the results are distributed to appropriate management. VaR and stressed VaR results are also provided to our regulators and utilized in regulatory capital calculations.

We use a historical VaR model to measure the potential adverse effect of changes in interest rates, foreign exchange rates, equity prices, and credit spreads on the fair value of our covered positions. Historical scenarios are customized for specific covered positions, and numerous risk factors are incorporated in the calculation. Additional consideration is given to the risk factors to estimate the exposures that contain optionality features, such as options and cancelable provisions. VaR is calculated using daily observations over a one-year time horizon, and approximates a 95% confidence level. Statistically, this means that we would expect to incur losses greater than VaR, on average, five out of 100 trading days, or three to four times each quarter. We also calculate VaR and stressed VaR at a 99% confidence level.

The VaR model is an effective tool in estimating ranges of possible gains and losses on our covered positions. However, there are limitations inherent in the VaR model since it uses historical results over a given time interval to estimate future performance. Historical results may not be indicative of future results, and changes in the market or composition of our portfolios could have a significant impact on the accuracy of the VaR model. We regularly review and enhance the modeling techniques, inputs and assumptions used. Our market risk policy includes the independent validation of our VaR model by Key’s Risk Management Group on an annual basis. The Model Risk Management Committee oversees the Model Validation Program, and results of validations are discussed with the ERM Committee.

Actual losses for the total covered positions did not exceed aggregate daily VaR on any day during the quarters ended March 31, 2015, and March 31, 2014. MRM backtests our VaR model on a daily basis to evaluate its predictive power. The test compares VaR model results at the 99% confidence level to daily held profit and loss. Results of backtesting are provided to the Market Risk Committee. Backtesting exceptions occur when trading losses exceed VaR.

We do not engage in correlation trading, or utilize the internal model approach for measuring default and credit migration risk. Our net VaR approach incorporates diversification, but our VaR calculation does not include the impact of counterparty risk and our own credit spreads on derivatives.

The aggregate VaR at the 99% confidence level for all covered positions was $1.1 million at March 31, 2015, and $1.2 million at March 31, 2014. The decrease in aggregate VaR was primarily due to reduced exposures in interest rate derivatives. Figure 30 summarizes our VaR at the 99% confidence level for significant portfolios of covered positions for the three months ended March 31, 2015, and March 31, 2014. During this period, none of our significant portfolios daily trading VaR numbers exceeded their VaR limits or stress VaR limits.

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Figure 30. VaR for Significant Portfolios of Covered Positions

	2015								2014
	Three months ended March 31,								Three months ended March 31,
in millions	High		Low		Mean		March 31,		High		Low		Mean		March 31,
Trading account assets:
Fixed income	$	.7	$	.2	$	.4	$	.6	$	1.0	$	.3	$	.6	$	.5
Derivatives:
Interest rate	$	.1		—	$	.1	$	.1	$	.7	$	.1	$	.2	$	.2
Credit		.4	$	.3		.3		.3		.3		.1		.2		.2

Stressed VaR is calculated using our general VaR results at the 99% confidence level and applying certain assumptions. The aggregate stressed VaR for all covered positions was $3.2 million at March 31, 2015, and $3.5 million at March 31, 2014. Figure 31 summarizes our stressed VaR for significant portfolios of covered positions for the three months ended March 31, 2015, and March 31, 2014, as used for market risk capital charge calculation purposes.

Figure 31. Stressed VaR for Significant Portfolios of Covered Positions

	2015								2014
	Three months ended March 31,								Three months ended March 31,
in millions	High		Low		Mean		March 31,		High		Low		Mean		March 31,
Trading account assets:
Fixed income	$	2.2	$	.6	$	1.2	$	1.8	$	2.9	$	1.0	$	1.9	$	1.6
Derivatives:
Interest rate	$	.3	$	.1	$	.2	$	.2	$	2.0	$	.3	$	.6	$	.5
Credit		1.2		.8		1.0		.9		.8		.4		.6		.6

Internal capital adequacy assessment. Market risk is a component of our internal capital adequacy assessment. Our risk-weighted assets include a market risk-equivalent asset position, which consists of a VaR component, stressed VaR component, a de minimis exposure amount, and a specific risk add-on, which are added together to arrive at total market risk equivalent assets. Specific risk is the price risk of individual financial instruments, which is not accounted for by changes in broad market risk factors and is measured through a standardized approach. Specific risk calculations are run quarterly by MRM, and approved by the Chief Market Risk Officer.

Nontrading market risk

Most of our nontrading market risk is derived from interest rate fluctuations and its impacts on our traditional loan and deposit products, as well as investments, hedging relationships, long-term debt, and certain short-term borrowings. Interest rate risk, which is inherent in the banking industry, is measured by the potential for fluctuations in net interest income and the EVE. Such fluctuations may result from changes in interest rates and differences in the repricing and maturity characteristics of interest-earning assets and interest-bearing liabilities. We manage the exposure to changes in net interest income and the EVE in accordance with our risk appetite and within Board approved policy limits.

Interest rate risk positions are influenced by a number of factors including the balance sheet positioning that arises out of consumer preferences for loan and deposit products, economic conditions, the competitive environment within our markets, changes in market interest rates that affect client activity, and our hedging, investing, funding and capital positions. The primary components of interest rate risk exposure consist of reprice risk, basis risk, yield curve risk and option risk.

The management of nontrading market risk is centralized within Corporate Treasury. Oversight and governance is provided by the Risk Committee of our Board, the ERM Committee and the ALCO. These committees review reports on the components of interest rate risk described above as well as sensitivity analyses of these exposures. These committees have various responsibilities related to managing nontrading market risk, including recommending, approving, and monitoring strategies that maintain risk positions within approved tolerance ranges. The Asset Liability Management policy provides the framework for the oversight and management of interest rate risk and is administered by the ALCO. Internal and external emerging issues are monitored on a daily basis. The Market Risk Management Group, as the second line of defense, provides additional oversight.

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• “Reprice risk” is the exposure to changes in interest rates and occurs when the volume of interest-bearing liabilities and the volume of interest-earning assets they fund (for example, deposits used to fund loans) do not mature or reprice at the same time.

• “Basis risk” is the exposure to asymmetrical changes in interest rate indexes and occurs when floating-rate assets and floating-rate liabilities reprice at the same time, but in response to different market factors or indexes.

• “Yield curve risk” is the exposure to non-parallel changes in the slope of the yield curve (where the yield curve depicts the relationship between the yield on a particular type of security and its term to maturity) and occurs when interest-bearing liabilities and the interest-earning assets that they fund do not price or reprice to the same term point on the yield curve.

• “Option risk” is the exposure to a customer or counterparty’s ability to take advantage of the interest rate environment and terminate or reprice one of our assets, liabilities, or off-balance sheet instruments prior to contractual maturity without a penalty. Option risk occurs when exposures to customer and counterparty early withdrawals or prepayments are not mitigated with an offsetting position or appropriate compensation.

Net interest income simulation analysis. The primary tool we use to measure our interest rate risk is simulation analysis. For purposes of this analysis, we estimate our net interest income based on the current and projected composition of our on- and off-balance sheet positions, accounting for recent and anticipated trends in customer activity. The analysis also incorporates assumptions for the current and projected interest rate environments, including a most likely macro-economic scenario. Simulation modeling assumes that residual risk exposures will be managed to within the risk appetite and board approved policy limits.

We measure the amount of net interest income at risk by simulating the change in net interest income that would occur if the federal funds target rate were to gradually increase or decrease over the next 12 months, and term rates were to move in a similar direction, although at a slower pace. Our standard rate scenarios encompass a gradual increase or decrease of 200 basis points, but due to the low interest rate environment, we have modified the standard to a gradual decrease of 25 basis points over two months with no change over the following ten months. After calculating the amount of net interest income at risk to interest rate changes, we compare that amount with the base case of an unchanged interest rate environment. We also perform regular stress tests and sensitivities on the model inputs that could materially change the resulting risk assessments. One set of stress tests and sensitivities assesses the effect of interest rate inputs on simulated exposures. Assessments are performed using different shapes of the yield curve, including steepening or flattening of the yield curve, changes in credit spreads, an immediate parallel change in market interest rates, and changes in the relationship of money market interest rates. Another set of stress tests and sensitivities assesses the effect of loan and deposit assumptions and assumed discretionary strategies on simulated exposures. Assessments are performed on changes to the following assumptions: the pricing of deposits without contractual maturities; changes in lending spreads; prepayments on loans and securities; other loan and deposit balance shifts; investment, funding and hedging activities; and liquidity and capital management strategies.

Simulation analysis produces only a sophisticated estimate of interest rate exposure based on judgments related to assumption inputs into the simulation model. We tailor assumptions to the specific interest rate environment and yield curve shape being modeled, and validate those assumptions on a regular basis. Our simulations are performed with the assumption that interest rate risk positions will be actively managed through the use of on- and off-balance sheet financial instruments to achieve the desired residual risk profile. However, actual results may differ from those derived in simulation analysis due to unanticipated changes to the balance sheet composition, customer behavior, product pricing, market interest rates, investment, funding and hedging activities, and repercussions from unanticipated or unknown events.

Figure 32 presents the results of the simulation analysis at March 31, 2015, and March 31, 2014. At March 31, 2015, our simulated exposure to changes in interest rates was moderately asset sensitive, and net interest income would benefit over time from either an increase in short-term or intermediate-term interest rates. Tolerance levels for risk management require the development of remediation plans to maintain residual risk within tolerance if simulation modeling demonstrates that a gradual increase or decrease in short-term interest rates over the next 12 months would adversely affect net interest income over the same period by more than 4%. As shown in Figure 32, we are operating within these levels as of March 31, 2015.

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Figure 32. Simulated Change in Net Interest Income

March 31, 2015
Basis point change assumption (short-term rates)	-25		+200
Tolerance level	-4.00	%	-4.00	%
Interest rate risk assessment	-1.11	%	3.34	%
March 31, 2014
Basis point change assumption (short-term rates)	-25		+200
Tolerance level	-4.00	%	-4.00	%
Interest rate risk assessment	-1.31	%	2.49	%

The results of additional sensitivity analysis of alternate interest rate paths and loan and deposit behavior assumptions indicates that net interest income could increase or decrease from the base simulation results presented in Figure 32. Net interest income is highly dependent on the timing, magnitude, frequency, and path of interest rate increases and the associated assumptions for deposit repricing relationships, lending spreads, and the balance behavior of transaction accounts. The unprecedented low level of interest rates increases the uncertainty of assumptions for deposit balance behavior and deposit repricing relationships to market interest rates. Recent balance growth in deposits has caused the uncertainty in assumptions to increase further. Our historical deposit repricing betas in the last rising rate cycle ranged between 50% and 60% for interest-bearing deposits, and we continue to make similar assumptions in our modeling. The sensitivity testing of these assumptions supports our confidence that actual results are likely to be within a 100 basis point range of modeled results.

Key will continue to monitor balance sheet flows and expects the benefit from rising rates to increase modestly prior to any increase in the federal funds rate. Our current interest rate risk position could fluctuate to higher or lower levels of risk depending on the competitive environment and client behavior that may affect the actual volume, mix, maturity, and repricing characteristics of loan and deposit flows. As changes occur to both the configuration of the balance sheet and the outlook for the economy, management proactively evaluates hedging opportunities that may change our interest rate risk profile.

We also conduct simulations that measure the effect of changes in market interest rates in the second and third years of a three-year horizon. These simulations are conducted in a manner similar to those based on a 12-month horizon. To capture longer-term exposures, we calculate exposures to changes of the EVE as discussed in the following section.

Economic value of equity modeling. EVE complements net interest income simulation analysis as it estimates risk exposure beyond 12-, 24-, and 36-month horizons. EVE modeling measures the extent to which the economic values of assets, liabilities and off-balance sheet instruments may change in response to fluctuations in interest rates. EVE is calculated by subjecting the balance sheet to an immediate 200 basis point increase or decrease in interest rates, measuring the resulting change in the values of assets, liabilities and off-balance sheet instruments, and comparing those amounts with the base case of an unchanged interest rate environment. Because the calculation of EVE under an immediate 200 basis point decrease in interest rates in the current low rate environment results in certain interest rates declining to zero and a less than 200 basis point decrease in certain yield curve term points, we have modified the standard declining rate scenario to an immediate 100 basis point decrease. This analysis is highly dependent upon assumptions applied to assets and liabilities with non-contractual maturities. Those assumptions are based on historical behaviors, as well as our expectations. We develop remediation plans that would maintain residual risk within tolerance if this analysis indicates that our EVE will decrease by more than 15% in response to an immediate increase or decrease in interest rates. We are operating within these guidelines as of March 31, 2015.

Management of interest rate exposure. We use the results of our various interest rate risk analyses to formulate A/LM strategies to achieve the desired risk profile while managing to our objectives for capital adequacy and liquidity risk exposures. Specifically, we manage interest rate risk positions by purchasing securities, issuing term debt with floating or fixed interest rates, and using derivatives — predominantly in the form of interest rate swaps, which modify the interest rate characteristics of certain assets and liabilities.

Figure 33 shows all swap positions that we hold for A/LM purposes. These positions are used to convert the contractual interest rate index of agreed-upon amounts of assets and liabilities (i.e., notional amounts) to another interest rate index. For example, fixed-rate debt is converted to a floating rate through a “receive fixed/pay variable” interest rate swap. The volume, maturity and mix of portfolio swaps change frequently as we adjust our broader A/LM objectives and the balance sheet positions to be hedged. For more information about how we use interest rate swaps to manage our risk profile, see Note 7 (“Derivatives and Hedging Activities”).

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Figure 33. Portfolio Swaps by Interest Rate Risk Management Strategy

	March 31, 2015
						Weighted-Average								March 31, 2014
dollars in millions	Notional Amount		Fair Value			Maturity (Years)		Receive Rate			Pay Rate			Notional Amount		Fair Value
Receive fixed/pay variable — conventional A/LM (a)	$	10,475	$	28			2.0		.9	%		.2	%	$	9,300	$	2
Receive fixed/pay variable — conventional debt		6,054		250			3.8		2.2			.2			5,074		202
Pay fixed/receive variable — conventional debt		50		(8	)		13.3		.3			3.6			50		(2	)
Total portfolio swaps	$	16,579	$	270	(b)		2.7		1.4	%		.2	%	$	14,424	$	202	(b)

(a) Portfolio swaps designated as A/LM are used to manage interest rate risk tied to both assets and liabilities.

(b) Excludes accrued interest of $36 million and $35 million for March 31, 2015, and March 31, 2014, respectively.

Liquidity risk management

Liquidity risk, which is inherent in the banking industry, is measured by our ability to accommodate liability maturities and deposit withdrawals, meet contractual obligations, and fund new business opportunities at a reasonable cost, in a timely manner and without adverse consequences. Liquidity management involves maintaining sufficient and diverse sources of funding to accommodate planned, as well as unanticipated, changes in assets and liabilities under both normal and adverse conditions.

Governance structure

We manage liquidity for all of our affiliates on an integrated basis. This approach considers the unique funding sources available to each entity, as well as each entity’s capacity to manage through adverse conditions. The approach also recognizes that adverse market conditions or other events that could negatively affect the availability or cost of liquidity will affect the access of all affiliates to sufficient wholesale funding.

The management of consolidated liquidity risk is centralized within Corporate Treasury. Oversight and governance is provided by the Board of Directors, the ERM Committee, the ALCO, and the Chief Risk Officer. The Asset Liability Management Policy provides the framework for the oversight and management of liquidity risk and is administered by the ALCO. The Market Risk Management group, as the second line of defense, provides additional oversight. Our current liquidity risk management practices are in compliance with the Federal Reserve Board’s Enhanced Prudential Standards.

These committees regularly review liquidity and funding summaries, liquidity trends, peer comparisons, variance analyses, liquidity projections, hypothetical funding erosion stress tests, and goal tracking reports. The reviews generate a discussion of positions, trends, and directives on liquidity risk and shape a number of our decisions. When liquidity pressure is elevated, positions are monitored more closely and reporting is more intensive. To ensure that emerging issues are identified, we also communicate with individuals inside and outside of the company on a daily basis.

Factors affecting liquidity

Our liquidity could be adversely affected by both direct and indirect events. An example of a direct event would be a downgrade in our public credit ratings by a rating agency. Examples of indirect events (events unrelated to us) that could impair our access to liquidity would be an act of terrorism or war, natural disasters, political events, or the default or bankruptcy of a major corporation, mutual fund or hedge fund. Similarly, market speculation, or rumors about us or the banking industry in general, may adversely affect the cost and availability of normal funding sources.

Following their introduction of a new bank rating methodology, on March 17, 2015, Moody’s placed KeyBank National Association’s long-term deposit rating of A3 and short-term deposit rating of Prime-2 on review for possible upgrade, and placed KeyBank National Association’s A3 senior unsecured rating and A3 long-term issuer rating on review for possible downgrade.

Many of our competitors are subject to similar ratings reviews by Moody’s, which are an outcome of the change in Moody’s methodology, and are not associated with a change in the inherent risk of Key.

Our credit ratings at March 31, 2015, are shown in Figure 34. We believe these credit ratings, under normal conditions in the capital markets, will enable the parent company or KeyBank to issue fixed income securities to investors.

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Figure 34. Credit Ratings

			Senior		Subordinated				Series A
	Short-Term		Long-Term		Long-Term		Capital		Preferred
March 31, 2015	Borrowings		Debt		Debt		Securities		Stock
KEYCORP (THE PARENT COMPANY)
Standard & Poor’s		A-2		BBB+		BBB		BB+		BB+
Moody’s		P-2		Baa1		Baa2		Baa3		Ba1
Fitch		F1		A-		BBB+		BB+		BB
DBRS		R-2(high)		BBB(high)		BBB		BBB		N/A
KEYBANK
Standard & Poor’s		A-2		A-		BBB+		N/A		N/A
Moody’s		P-2		A3		Baa1		N/A		N/A
Fitch		F1		A-		BBB+		N/A		N/A
DBRS		R-1(low)		A(low)		BBB(high)		N/A		N/A

Managing liquidity risk

Most of our liquidity risk is derived from our lending activities, which inherently places funds into illiquid assets. Liquidity risk is also derived from our deposit gathering activities and the ability of our customers to withdraw funds that do not have a stated maturity or to withdraw funds before their contractual maturity. The assessments of liquidity risk are measured under the assumption of normal operating conditions as well as under a stressed environment. We manage these exposures in accordance with our risk appetite, and within Board approved policy limits.

We regularly monitor our liquidity position and funding sources and measure our capacity to obtain funds in a variety of hypothetical scenarios in an effort to maintain an appropriate mix of available and affordable funding. In the normal course of business, we perform a monthly hypothetical funding erosion stress test for both KeyCorp and KeyBank. In a “heightened monitoring mode,” we may conduct the hypothetical funding erosion stress tests more frequently, and use assumptions to reflect the changed market environment. Our testing incorporates estimates for loan and deposit lives based on our historical studies. Erosion stress tests analyze potential liquidity scenarios under various funding constraints and time periods. Ultimately, they determine the periodic effects that major direct and indirect events would have on our access to funding markets and our ability to fund our normal operations. To compensate for the effect of these assumed liquidity pressures, we consider alternative sources of liquidity and maturities over different time periods to project how funding needs would be managed.

We maintain a Contingency Funding Plan that outlines the process for addressing a liquidity crisis. The plan provides for an evaluation of funding sources under various market conditions. It also assigns specific roles and responsibilities for managing liquidity through a problem period. As part of the plan, we maintain a liquidity reserve through balances in our liquid asset portfolio. During a problem period, that reserve could be used as a source of funding to provide time to develop and execute a longer-term strategy. The liquid asset portfolio at March 31, 2015, totaled $13.5 billion, consisting of $10 billion of unpledged securities, $744 million of securities available for secured funding at the Federal Home Loan Bank of Cincinnati (“FHLB”), and $2.8 billion of net balances of federal funds sold and balances in our Federal Reserve account. The liquid asset portfolio can fluctuate due to excess liquidity, heightened risk, or prefunding of expected outflows, such as debt maturities. Additionally, as of March 31, 2015, our unused borrowing capacity secured by loan collateral was $19.3 billion at the Federal Reserve Bank of Cleveland and $2.8 billion at the FHLB. During the first quarter of 2015, Key’s outstanding FHLB advances decreased by $4 million due to repayments.

Final U.S. liquidity coverage ratio

Under the Liquidity Coverage Rules, we will be required to calculate the Modified LCR. Implementation for Modified LCR banking organizations, like Key, will begin on January 1, 2016, with a minimum requirement of 90% coverage, reaching 100% coverage by January 1, 2017. Throughout March 2015, our estimated Modified LCR was approximately in the high-80% range. To reach the minimum of 90% by January 1, 2016, and to operate with a cushion above the minimum required level, we may change the composition of our investment portfolio, increase the size of the overall investment portfolio, and modify product offerings.

Additional information about the Liquidity Coverage Ratio is included in the “Supervision and Regulation” section under the heading “U.S. implementation of the Basel III liquidity framework” beginning on page 12 of our 2014 Form 10-K.

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Long-term liquidity strategy

Our long-term liquidity strategy is to be predominantly funded by core deposits. However, we may use wholesale funds to sustain an adequate liquid asset portfolio, meet daily cash demands, and allow management flexibility to execute business initiatives. Key’s client-based relationship strategy provides for a strong core deposit base that, in conjunction with intermediate and long-term wholesale funds managed to a diversified maturity structure and investor base, supports our liquidity risk management strategy. We use the loan-to-deposit ratio as a metric to monitor these strategies. Our target loan-to-deposit ratio is 90-100% (at March 31, 2015, our loan-to-deposit ratio was 87%), which we calculate as total loans, loans held for sale, and nonsecuritized discontinued loans divided by domestic deposits.

Sources of liquidity

Our primary sources of liquidity include customer deposits, wholesale funding, and liquid assets. If the cash flows needed to support operating and investing activities are not satisfied by deposit balances, we rely on wholesale funding or on-balance sheet liquid reserves. Conversely, excess cash generated by operating, investing, and deposit-gathering activities may be used to repay outstanding debt or invest in liquid assets.

Liquidity programs

We have several liquidity programs, which are described in Note 18 (“Long-Term Debt”) beginning on page 202 of our 2014 Form 10-K, that are designed to enable the parent company and KeyBank to raise funds in the public and private debt markets. The proceeds from most of these programs can be used for general corporate purposes, including acquisitions. These liquidity programs are reviewed from time to time by the Board of Directors and are renewed and replaced as necessary. There are no restrictive financial covenants in any of these programs.

On February 12, 2015, KeyBank issued $1 billion of 2.250% Senior Bank Notes due March 16, 2020, under its Global Bank Note Program.

Liquidity for KeyCorp

The primary source of liquidity for KeyCorp is from subsidiary dividends, primarily from KeyBank. KeyCorp has sufficient liquidity when it can service its debt; support customary corporate operations and activities (including acquisitions); support occasional guarantees of subsidiaries’ obligations in transactions with third parties at a reasonable cost, in a timely manner, and without adverse consequences; and pay dividends to shareholders.

We use a parent cash coverage months metric as the primary measure to assess parent company liquidity. The parent cash coverage months metric measures the months into the future where projected obligations can be met with the current amount of liquidity. We generally issue term debt to supplement dividends from KeyBank to manage our liquidity position at or above our targeted levels. The parent company generally maintains cash and short-term investments in an amount sufficient to meet projected debt maturities over at least the next 24 months. At March 31, 2015, KeyCorp held $2.2 billion in short-term investments, which we projected to be sufficient to meet our projected obligations, including the repayment of our maturing debt obligations for the periods prescribed by our risk tolerance.

Typically, KeyCorp meets its liquidity requirements through regular dividends from KeyBank, supplemented with term debt. Federal banking law limits the amount of capital distributions that a bank can make to its holding company without prior regulatory approval. A national bank’s dividend-paying capacity is affected by several factors, including net profits (as defined by statute) for the two previous calendar years and for the current year, up to the date of dividend declaration. During the first quarter of 2015, KeyBank paid KeyCorp $250 million in dividends; nonbank subsidiaries did not pay any cash dividends or noncash dividends to KeyCorp. KeyCorp did not make any capital infusions to KeyBank during the first quarter of 2015. As of March 31, 2015, KeyBank had $919 million of capacity to pay dividends to KeyCorp.

Our liquidity position and recent activity

Over the past 12 months our liquid asset portfolio, which includes overnight and short-term investments, as well as unencumbered, high quality liquid securities held as protection against a range of potential liquidity stress scenarios, has decreased as a result of net customer loan and deposit flows and a decrease in unpledged securities. The liquid asset portfolio continues to exceed the amount that we estimate would be necessary to manage through an adverse liquidity event by providing sufficient time to develop and execute a longer-term solution.

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From time to time, KeyCorp or KeyBank may seek to retire, repurchase, or exchange outstanding debt, capital securities, preferred shares, or common shares through cash purchase, privately negotiated transactions or other means. Additional information on repurchases of common shares by KeyCorp is included in Part II, Item 2. Unregistered Sales of Equity Securities and Use of Proceeds of this report and in Part II, Item 5. Market for the Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities on page 30 of our 2014 Form 10-K. Such transactions depend on prevailing market conditions, our liquidity and capital requirements, contractual restrictions, regulatory requirements, and other factors. The amounts involved may be material, individually or collectively.

We generate cash flows from operations and from investing and financing activities. We have approximately $190 million of cash and cash equivalents and short-term investments in international tax jurisdictions as of March 31, 2015. As we consider alternative long-term strategic and liquidity plans, opportunities to repatriate these amounts would result in approximately $6 million in taxes to be paid. We have included the appropriate amount as a deferred tax liability at March 31, 2015.

The Consolidated Statements of Cash Flows (Unaudited) summarize our sources and uses of cash by type of activity for the three-month periods ended March 31, 2015, and March 31, 2014.

Credit risk management

Credit risk is the risk of loss to us arising from an obligor’s inability or failure to meet contractual payment or performance terms. Like other financial services institutions, we make loans, extend credit, purchase securities, and enter into financial derivative contracts, all of which have related credit risk.

Credit policy, approval, and evaluation

We manage credit risk exposure through a multifaceted program. The Credit Risk Committee approves both retail and commercial credit policies. These policies are communicated throughout the organization to foster a consistent approach to granting credit.

Our credit risk management team is responsible for credit approval, is independent of our lines of business, and consists of senior officers who have extensive experience in structuring and approving loans. Only credit risk management members are authorized to grant significant exceptions to credit policies. It is not unusual to make exceptions to established policies when mitigating circumstances dictate, but most major lending units have been assigned specific thresholds to keep exceptions at an acceptable level based upon portfolio and economic considerations.

Loan grades are assigned at the time of origination, verified by the credit risk management team and periodically reevaluated thereafter. Most extensions of credit are subject to loan grading or scoring. This risk rating methodology blends our judgment with quantitative modeling. Commercial loans generally are assigned two internal risk ratings. The first rating reflects the probability that the borrower will default on an obligation; the second rating reflects expected recovery rates on the credit facility. Default probability is determined based on, among other factors, the financial strength of the borrower, an assessment of the borrower’s management, the borrower’s competitive position within its industry sector, and our view of industry risk within the context of the general economic outlook. Types of exposure, transaction structure and collateral, including credit risk mitigants, affect the expected recovery assessment.

Our credit risk management team uses risk models to evaluate consumer loans. These models, known as scorecards, forecast the probability of serious delinquency and default for an applicant. The scorecards are embedded in the application processing system, which allows for real-time scoring and automated decisions for many of our products. We periodically validate the loan grading and scoring processes.

We maintain an active concentration management program to encourage diversification in our credit portfolios. For individual obligors, we employ a sliding scale of exposure, known as hold limits, which is dictated by the strength of the borrower. Our legal lending limit is approximately $1.6 billion for any individual borrower. However, internal hold limits generally restrict the largest exposures to less than 20% of that amount. As of March 31, 2015, we had seven client relationships with loan commitments net of credit default swaps of more than $200 million. The average amount outstanding on these seven individual net obligor commitments was $50 million at March 31, 2015. In general, our philosophy is to maintain a diverse portfolio with regard to credit exposures.

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We actively manage the overall loan portfolio in a manner consistent with asset quality objectives and concentration risk tolerances to mitigate credit risk. We utilize credit default swaps on a limited basis to transfer a portion of the credit risk associated with a particular extension of credit to a third party. At March 31, 2015, we used credit default swaps with a notional amount of $328 million to manage the credit risk associated with specific commercial lending obligations. We may also sell credit derivatives — primarily single name credit default swaps — to offset our purchased credit default swap position prior to maturity. At March 31, 2015, we had sold credit default swaps outstanding with a total notional amount of $5 million.

Credit default swaps are recorded on the balance sheet at fair value. Related gains or losses, as well as the premium paid or received for credit protection, are included in the “corporate services income” and “other income” components of noninterest income.

We may also manage the loan portfolio using portfolio swaps and bulk purchases and sales. Our overarching goal is to manage the loan portfolio within a specified range of asset quality.

Allowance for loan and lease losses

At March 31, 2015, the ALLL was $794 million, or 1.37% of period-end loans, compared to $794 million, or 1.38%, at December 31, 2014, and $834 million, or 1.50%, at March 31, 2014. The allowance includes $49 million that was specifically allocated for impaired loans of $338 million at March 31, 2015, compared to $40 million that was allocated for impaired loans of $302 million at December 31, 2014, and $34 million that was specifically allocated for impaired loans of $304 million at March 31, 2014. For more information about impaired loans, see Note 4 (“Asset Quality”). At March 31, 2015, the ALLL was 181.7% of nonperforming loans, compared to 190.0% at December 31, 2014, and 185.7% at March 31, 2014.

Selected asset quality statistics for each of the past five years are presented in Figure 35. The factors that drive these statistics are discussed in the remainder of this section.

Figure 35. Selected Asset Quality Statistics from Continuing Operations

	2015			2014
dollars in millions	First			Fourth			Third			Second			First
Net loan charge-offs	$	28		$	32		$	31		$	30		$	20
Net loan charge-offs to average loans		.20	%		.22	%		.22	%		.22	%		.15	%
Allowance for loan and lease losses	$	794		$	794		$	804		$	814		$	834
Allowance for credit losses (a)		835			829			839			851			869
Allowance for loan and lease losses to period-end loans		1.37	%		1.38	%		1.43	%		1.46	%		1.50	%
Allowance for credit losses to period-end loans		1.44			1.44			1.49			1.53			1.57
Allowance for loan and lease losses to nonperforming loans		181.7			190.0			200.5			205.6			185.7
Allowance for credit losses to nonperforming loans		191.1			198.3			209.2			214.9			193.5
Nonperforming loans at period end (b)	$	437		$	418		$	401		$	396		$	449
Nonperforming assets at period end		457			436			418			410			469
Nonperforming loans to period-end portfolio loans		.75	%		.73	%		.71	%		.71	%		.81	%
Nonperforming assets to period-end portfolio loans plus
OREO and other nonperforming assets		.79			.76			.74			.74			.85

(a) Includes the ALLL plus the liability for credit losses on lending-related unfunded commitments.

(b) Loan balances exclude $12 million, $13 million, $14 million, $15 million, and $16 million of PCI loans at March 31, 2015, December 31, 2014, September 30, 2014, June 30, 2014, and March 31, 2014, respectively.

We estimate the appropriate level of the ALLL on at least a quarterly basis. The methodology used is described in Note 1 (“Summary of Significant Accounting Policies”) under the heading “Allowance for Loan and Lease Losses” beginning on page 117 of our 2014 Form 10-K. Briefly, our general allowance applies expected loss rates to existing loans with similar risk characteristics. We exercise judgment to assess any adjustment to the expected loss rates for the impact of factors such as changes in economic conditions, lending policies including underwriting standards, and the level of credit risk associated with specific industries and markets.

For all commercial and consumer loan TDRs, regardless of size, as well as impaired commercial loans with an outstanding balance of $2.5 million or greater, we conduct further analysis to determine the probable loss content and assign a specific allowance to the loan if deemed appropriate. We estimate the extent of the individual impairment for commercial loans and TDRs by comparing the recorded investment of the loan with the estimated present value of its future cash flows, the fair value of its underlying collateral, or the loan’s observable market price. Secured consumer loan TDRs that are discharged through Chapter 7 bankruptcy and not formally re-affirmed are adjusted to reflect the fair value of the underlying collateral, less costs to sell. Other consumer loan TDRs are combined in homogenous pools and assigned a specific allocation based on

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the estimated present value of future cash flows using the effective interest rate. A specific allowance also may be assigned — even when sources of repayment appear sufficient — if we remain uncertain about whether the loan will be repaid in full. On at least a quarterly basis, we evaluate the appropriateness of our loss estimation methods to reduce differences between estimated incurred losses and actual losses. The ALLL at March 31, 2015, represents our best estimate of the probable credit losses inherent in the loan portfolio at that date.

As shown in Figure 36, our ALLL decreased by $40 million, or 4.8%, during the past 12 months, primarily because of the improvement in the credit quality of our loan portfolios. Our delinquency trends have declined during the past 12 months due to a modest level of loan growth, relatively stable economic conditions, and continued run-off in our exit loan portfolio reflecting our effort to maintain a moderate enterprise risk tolerance. Our liability for credit losses on lending-related commitments increased by $6 million to $41 million at March 31, 2015. When combined with our ALLL, our total allowance for credit losses represented 1.44% of period-end loans at March 31, 2015, compared to 1.44% at December 31, 2014, and 1.57% at March 31, 2014.

Figure 36. Allocation of the Allowance for Loan and Lease Losses

	March 31, 2015								December 31, 2014								March 31, 2014
			Percent of								Percent of								Percent of
			Allowance to			Percent of					Allowance to			Percent of					Allowance to			Percent of
dollars in millions	Amount		Total Allowance			Loan Type to Total Loans			Amount		Total Allowance			Loan Type to Total Loans			Amount		Total Allowance			Loan Type to Total Loans
Commercial, financial and agricultural	$	405		51.0	%		49.6	%	$	391		49.2	%		48.8	%	$	373		44.7	%		47.3	%
Commercial real estate:
Commercial mortgage		148		18.7			14.1			148		18.7			14.0			161		19.3			14.2
Construction		28		3.5			2.0			28		3.5			1.9			37		4.4			1.8
Total commercial real estate loans		176		22.2			16.1			176		22.2			15.9			198		23.7			16.0
Commercial lease financing		55		6.9			7.0			56		7.1			7.4			62		7.5			7.9
Total commercial loans		636		80.1			72.7			623		78.5			72.1			633		75.9			71.2
Real estate — residential mortgage		21		2.7			3.8			23		2.9			3.9			27		3.2			3.9
Home equity:
Community Banking		58		7.3			17.7			66		8.3			18.1			80		9.6			18.5
Other		5		.6			.5			5		.6			.5			11		1.3			.6
Total home equity loans		63		7.9			18.2			71		8.9			18.6			91		10.9			19.1
Consumer other — Community Banking		21		2.7			2.7			22		2.8			2.7			25		3.0			2.6
Credit cards		32		4.0			1.3			33		4.1			1.3			32		3.8			1.3
Consumer other:
Marine		20		2.5			1.2			21		2.7			1.3			23		2.8			1.8
Other		1		.1			.1			1		.1			.1			3		.4			.1
Total consumer other		21		2.6			1.3			22		2.8			1.4			26		3.2			1.9
Total consumer loans		158		19.9			27.3			171		21.5			27.9			201		24.1			28.8
Total loans (a)	$	794		100.0	%		100.0	%	$	794		100.0	%		100.0	%	$	834		100.0	%		100.0	%

(a) Excludes allocations of the ALLL related to the discontinued operations of the education lending business in the amount of $25 million, $29 million, and $34 million at March 31, 2015, December 31, 2014, and March 31, 2014, respectively.

Our provision for credit losses was $35 million for the first quarter of 2015, compared to $4 million for the first quarter of 2014. The increase in our provision is due to the growth in our loan portfolio over the past twelve months. We continue to reduce our exposure in our higher-risk businesses, including the residential properties portion of our construction loan portfolio, Marine/RV financing, and other selected leasing portfolios through the sale of certain loans, payments from borrowers, or net loan charge-offs.

Credit quality on our oil and gas loan portfolio, which represents 2% of total loans at March 31, 2015, remains solid, with net loan charge-offs lower than those on our overall portfolio. Our ALLL reflects the estimated impact of current oil prices at March 31, 2015.

Net loan charge-offs

Net loan charge-offs for the first quarter of 2015 totaled $28 million, or .20% of average loans, compared to net loan charge-offs of $20 million, or ..15%, for the same period last year. Figure 37 shows the trend in our net loan charge-offs by loan type, while the composition of loan charge-offs and recoveries by type of loan is presented in Figure 38.

Over the past 12 months, net loan charge-offs increased $8 million. This increase is attributable to the growth in our loan portfolio over the past twelve months. As shown in Figure 40, our exit loan portfolio contributed $3 million in net loan charge-offs for the first quarter of 2015, compared to $5 million in net loan charge-offs for the fourth quarter of 2014. The decrease in net loan charge-offs in our exit loan portfolio was primarily driven by lower levels of net loan charge-offs in the commercial exit loan portfolios.

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Figure 37. Net Loan Charge-offs from Continuing Operations ^(a)

	2015			2014
dollars in millions	First			Fourth			Third			Second			First
Commercial, financial and agricultural	$	7		$	4		$	6			—		$	2
Real estate — Commercial mortgage		—			3			(2	)		—			1
Real estate — Construction		1			—			1		$	(1	)		(12	)
Commercial lease financing		(2	)		2			(1	)		(2	)		1
Total commercial loans		6			9			4			(3	)		(8	)
Home equity — Key Community Bank		5			6			6			9			7
Home equity — Other		—			—			1			1			2
Credit cards		8			7			9			11			6
Marine		2			3			2			5			4
Other		7			7			9			7			9
Total consumer loans		22			23			27			33			28
Total net loan charge-offs	$	28		$	32		$	31		$	30		$	20
Net loan charge-offs to average loans		.20	%		.22	%		.22	%		.22	%		.15	%
Net loan charge-offs from discontinued operations — education lending business	$	6		$	8		$	7		$	7		$	9

(a) Credit amounts indicate that recoveries exceeded charge-offs.

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Figure 38. Summary of Loan and Lease Loss Experience from Continuing Operations

	Three months ended March 31,
dollars in millions	2015			2014
Average loans outstanding	$	57,512		$	54,746
Allowance for loan and lease losses at beginning of period	$	794		$	848
Charge-offs:
Commercial, financial and agricultural (a)		12			12
Real estate — commercial mortgage		2			2
Real estate — construction		1			2
Total commercial real estate loans (b)		3			4
Commercial lease financing		2			3
Total commercial loans		17			19
Real estate — residential mortgage		2			3
Home equity:
Key Community Bank		7			10
Other		1			3
Total home equity loans		8			13
Consumer other — Key Community Bank		6			8
Credit cards		8			6
Consumer other:
Marine		5			7
Other		1			1
Total consumer other		6			8
Total consumer loans		30			38
Total loans charged off		47			57
Recoveries:
Commercial, financial and agricultural (a)		5			10
Real estate — commercial mortgage		2			1
Real estate — construction		—			14
Total commercial real estate loans (b)		2			15
Commercial lease financing		4			2
Total commercial loans		11			27
Real estate — residential mortgage		—			1
Home equity:
Key Community Bank		2			3
Other		1			1
Total home equity loans		3			4
Consumer other — Key Community Bank		2			2
Credit cards		—			—
Consumer other:
Marine		3			3
Other		—			—
Total consumer other		3			3
Total consumer loans		8			10
Total recoveries		19			37
Net loans and leases charged off		(28	)		(20	)
Provision (credit) for loan and lease losses		29			6
Foreign currency translation adjustment		(1	)		—
Allowance for loan and lease losses at end of period	$	794		$	834
Liability for credit losses on lending-related commitments at beginning of period	$	35		$	37
Provision (credit) for losses on lending-related commitments		6			(2	)
Liability for credit losses on lending-related commitments at end of period (c)	$	41		$	35
Total allowance for credit losses at end of period	$	835		$	869
Net loan charge-offs to average loans		.20	%		.15	%
Allowance for loan and lease losses to period-end loans		1.37			1.50
Allowance for credit losses to period-end loans		1.44			1.57
Allowance for loan and lease losses to nonperforming loans		181.7			185.7
Allowance for credit losses to nonperforming loans		191.1			193.5
Discontinued operations — education lending business:
Charge-offs	$	10		$	13
Recoveries		4			4
Net loan and lease charge-offs	$	(6	)	$	(9	)

(a) See Figure 18 and the accompanying discussion in the “Loans and loans held for sale” section for more information related to our commercial, financial and agricultural loan portfolio.

(b) See Figure 19 and the accompanying discussion in the “Loans and loans held for sale” section for more information related to our commercial real estate loan portfolio.

(c) Included in “accrued expense and other liabilities” on the balance sheet.

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Nonperforming assets

Figure 39 shows the composition of our nonperforming assets. These assets totaled $457 million at March 31, 2015, and represented .79% of period-end portfolio loans, OREO and other nonperforming assets, compared to $436 million, or .76%, at December 31, 2014, and $469 million, or .85%, at March 31, 2014. See Note 1 (“Summary of Significant Accounting Policies”) under the headings “Nonperforming Loans,” “Impaired Loans,” and “Allowance for Loan and Lease Losses” beginning on page 116 of our 2014 Form 10-K for a summary of our nonaccrual and charge-off policies.

Figure 39. Summary of Nonperforming Assets and Past Due Loans from Continuing Operations

dollars in millions	March 31, 2015			December 31, 2014			September 30, 2014			June 30, 2014			March 31, 2014
Commercial, financial and agricultural (a)	$	98		$	59		$	47		$	37		$	60
Real estate — commercial mortgage		30			34			41			38			37
Real estate — construction		12			13			14			9			11
Total commercial real estate loans (b)		42			47			55			47			48
Commercial lease financing		20			18			14			15			18
Total commercial loans		160			124			116			99			126
Real estate — residential mortgage		72			79			81			89			105
Home equity:
Key Community Bank		182			185			174			178			188
Other		9			10			10			11			11
Total home equity loans		191			195			184			189			199
Consumer other — Key Community Bank		2			2			2			2			2
Credit cards		2			2			1			1			1
Consumer other:
Marine		9			15			16			15			15
Other		1			1			1			1			1
Total consumer other		10			16			17			16			16
Total consumer loans		277			294			285			297			323
Total nonperforming loans (c)		437			418			401			396			449
Nonperforming loans held for sale		—			—			—			1			1
OREO		20			18			16			12			12
Other nonperforming assets		—			—			1			1			7
Total nonperforming assets	$	457		$	436		$	418		$	410		$	469
Accruing loans past due 90 days or more	$	111		$	96		$	71		$	83		$	89
Accruing loans past due 30 through 89 days		216			235			340			274			267
Restructured loans — accruing and nonaccruing (d)		268			270			264			266			294
Restructured loans included in nonperforming loans (d)		141			157			137			142			178
Nonperforming assets from discontinued operations — education lending business		8			11			9			19			20
Nonperforming loans to period-end portfolio loans		.75	%		.73	%		.71	%		.71	%		.81	%
Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets		.79			.76			.74			.74			.85

(a) See Figure 18 and the accompanying discussion in the “Loans and loans held for sale” section for more information related to our commercial, financial and agricultural loan portfolio.

(b) See Figure 19 and the accompanying discussion in the “Loans and loans held for sale” section for more information related to our commercial real estate loan portfolio.

(c) Loan balances exclude $12 million, $13 million, $14 million, $15 million, and $16 million of PCI loans at March 31, 2015, December 31, 2014, September 30, 2014, June 30, 2014, and March 31, 2014, respectively.

(d) Restructured loans (i.e., TDRs) are those for which Key, for reasons related to a borrower’s financial difficulties, grants a concession to the borrower that it would not otherwise consider. These concessions are made to improve the collectability of the loan and generally take the form of a reduction of the interest rate, extension of the maturity date or reduction in the principal balance.

As shown in Figure 39, nonperforming assets decreased during the first quarter of 2015 from one year ago. Most of the reduction came from nonperforming loans in our consumer loan portfolios and our other nonperforming assets. As shown in Figure 40, our exit loan portfolio accounted for $32 million, or 7%, of our total nonperforming assets at March 31, 2015, compared to $41 million, or 9%, at December 31, 2014.

At March 31, 2015, the carrying amount of our commercial nonperforming loans outstanding represented 79% of their contractual amount owed, total nonperforming loans outstanding represented 81% of their contractual amount owed, and nonperforming assets in total were carried at 81% of their original contractual amount. At the same date, OREO and other nonperforming assets represented 80% of its original contractual amount owed.

At March 31, 2015, our 20 largest nonperforming loans totaled $123 million, representing 28% of total nonperforming loans. At March 31, 2014, our 20 largest nonperforming loans totaled $75 million, representing 17% of total nonperforming loans.

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Figure 40 shows the composition of our exit loan portfolio at March 31, 2015, and December 31, 2014, the net loan charge-offs recorded on this portfolio for the first quarter of 2015 and the fourth quarter of 2014, and the nonperforming status of these loans at March 31, 2015, and December 31, 2014. The exit loan portfolio represented 3% of total loans and loans held for sale at March 31, 2015, compared to 4% of total loans and loans held for sale at December 31, 2014.

Figure 40. Exit Loan Portfolio from Continuing Operations

	Balance Outstanding				Change 3-31-15 vs.			Net Loan Charge-offs						Balance on Nonperforming Status
in millions	3-31-15		12-31-14		12-31-14			3-31-15(b)			12-31-14(b)			3-31-15		12-31-14
Residential properties — homebuilder	$	6	$	10	$	(4	)	$	1			—		$	8	$	9
Marine and RV floor plan		6		7		(1	)		—			—			5		5
Commercial lease financing (a)		877		967		(90	)		(1	)	$	3			—		1
Total commercial loans		889		984		(95	)		—			3			13		15
Home equity — Other		253		267		(14	)		—			—			9		10
Marine		730		779		(49	)		2			3			9		15
RV and other consumer		50		54		(4	)		1			(1	)		1		1
Total consumer loans		1,033		1,100		(67	)		3			2			19		26
Total exit loans in loan portfolio	$	1,922	$	2,084	$	(162	)	$	3		$	5		$	32	$	41
Discontinued operations — education lending business (not included in exit loans above)	$	2,219	$	2,295	$	(76	)	$	6		$	8		$	8	$	11

(a) Includes (1) the business aviation, commercial vehicle, office products, construction, and industrial leases; (2) Canadian lease financing portfolios; (3) European lease financing portfolios; and (4) all remaining balances related to lease in, lease out; sale in, lease out; service contract leases; and qualified technological equipment leases.

(b) Credit amounts indicate recoveries exceeded charge-offs.

Figure 41 shows the types of activity that caused the change in our nonperforming loans during each of the last five quarters.

Figure 41. Summary of Changes in Nonperforming Loans from Continuing Operations

	2015			2014
in millions	First			Fourth			Third			Second			First
Balance at beginning of period	$	418		$	401		$	396		$	449		$	508
Loans placed on nonaccrual status		123			103			109			79			98
Charge-offs		(47	)		(49	)		(49	)		(56	)		(57	)
Loans sold		—			(2	)		—			(21	)		(3	)
Payments		(9	)		(17	)		(13	)		(17	)		(21	)
Transfers to OREO		(7	)		(6	)		(7	)		(4	)		(3	)
Loans returned to accrual status		(41	)		(12	)		(35	)		(34	)		(73	)
Balance at end of period (a)	$	437		$	418		$	401		$	396		$	449

(a) Loan balances exclude $12 million, $13 million, $14 million, $15 million, and $16 million of PCI loans at March 31, 2015, December 31, 2014, September 30, 2014, June 30, 2014, and March 31, 2014, respectively.

Figure 42 shows the factors that contributed to the change in our OREO during each of the last five quarters.

Figure 42. Summary of Changes in Other Real Estate Owned, Net of Allowance, from Continuing Operations

	2015			2014
in millions	First			Fourth			Third			Second			First
Balance at beginning of period	$	18		$	16		$	12		$	12		$	15
Properties acquired — nonperforming loans		7			6			7			4			3
Valuation adjustments		(1	)		(2	)		(1	)		(1	)		(1	)
Properties sold		(4	)		(2	)		(2	)		(3	)		(5	)
Balance at end of period	$	20		$	18		$	16		$	12		$	12

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Operational and compliance risk management

Like all businesses, we are subject to operational risk, which is the risk of loss resulting from human error or malfeasance, inadequate or failed internal processes and systems, and external events. These events include, among other things, threats to our cybersecurity, as we are reliant upon information systems and the Internet to conduct our business activities.

Operational risk also encompasses compliance risk, which is the risk of loss from violations of, or noncompliance with, laws, rules and regulations, prescribed practices, and ethical standards. Under the Dodd-Frank Act, large financial companies like Key are subject to heightened prudential standards and regulation. This heightened level of regulation has increased our operational risk. We have created work teams to respond to and analyze the regulatory requirements that have been or will be promulgated as a result of the enactment of the Dodd-Frank Act. Resulting operational risk losses and/or additional regulatory compliance costs could take the form of explicit charges, increased operational costs, harm to our reputation, or foregone opportunities.

We seek to mitigate operational risk through identification and measurement of risk, alignment of business strategies with risk appetite and tolerance, and a system of internal controls and reporting. We continuously strive to strengthen our system of internal controls to improve the oversight of our operational risk and to ensure compliance with laws, rules, and regulations. For example, an operational event database tracks the amounts and sources of operational risk and losses. This tracking mechanism helps to identify weaknesses and to highlight the need to take corrective action. We also rely upon software programs designed to assist in assessing operational risk and monitoring our control processes. This technology has enhanced the reporting of the effectiveness of our controls to senior management and the Board.

The Operational Risk Management Program provides the framework for the structure, governance, roles, and responsibilities, as well as the content, to manage operational risk for Key. Primary responsibility for managing and monitoring internal control mechanisms lies with the managers of our various lines of business. The Operational Risk Committee, a senior management committee, oversees our level of operational risk and directs and supports our operational infrastructure and related activities. This committee and the Operational Risk Management function are an integral part of our ERM Program. Our Risk Review function regularly assesses the overall effectiveness of our Operational Risk Management Program and our system of internal controls. Risk Review reports the results of reviews on internal controls and systems to senior management and the Audit Committee and independently supports the Audit Committee’s oversight of these controls.

Cybersecurity

We devote significant time and resources to maintaining and regularly updating our technology systems and processes to protect the security of our computer systems, software, networks, and other technology assets against attempts by third parties to obtain unauthorized access to confidential information, destroy data, disrupt or degrade service, sabotage systems, or cause other damage. We and many other U.S. financial institutions have experienced distributed denial-of-service attacks from technologically sophisticated third parties. These attacks are intended to disrupt or disable consumer online banking services and prevent banking transactions. We also periodically experience other attempts to breach the security of our systems and data. These cyberattacks have not, to date, resulted in any material disruption of our operations, material harm to our customers, and have not had a material adverse effect on our results of operations.

Cyberattack risks may also occur with our third-party technology service providers, and may interfere with their ability to fulfill their contractual obligations to us, with attendant potential for financial loss or liability that could adversely affect our financial condition or results of operations. Recent high-profile cyberattacks have targeted retailers and other businesses for the purpose of acquiring the confidential information (including personal, financial, and credit card information) of customers, some of whom are customers of ours. We may incur expenses related to the investigation of such attacks or related to the protection of our customers from identity theft as a result of such attacks. Risks and exposures related to cyberattacks are expected to remain high for the foreseeable future due to the rapidly evolving nature and sophistication of these threats, as well as due to the expanding use of Internet banking, mobile banking, and other technology-based products and services by us and our clients.

137

Critical Accounting Policies and Estimates

Our business is dynamic and complex. Consequently, we must exercise judgment in choosing and applying accounting policies and methodologies. These choices are critical – not only are they necessary to comply with GAAP, they also reflect our view of the appropriate way to record and report our overall financial performance. All accounting policies are important, and all policies described in Note 1 (“Summary of Significant Accounting Policies”) beginning on page 114 of our 2014 Form 10-K should be reviewed for a greater understanding of how we record and report our financial performance.

In our opinion, some accounting policies are more likely than others to have a critical effect on our financial results and to expose those results to potentially greater volatility. These policies apply to areas of relatively greater business importance, or require us to exercise judgment and to make assumptions and estimates that affect amounts reported in the financial statements. Because these assumptions and estimates are based on current circumstances, they may prove to be inaccurate, or we may find it necessary to change them.

We rely heavily on the use of judgment, assumptions, and estimates to make a number of core decisions, including accounting for the ALLL; contingent liabilities, guarantees and income taxes; derivatives and related hedging activities; and assets and liabilities that involve valuation methodologies. In addition, we may employ outside valuation experts to assist us in determining fair values of certain assets and liabilities. A brief discussion of each of these areas appears on pages 99 through 102 of our 2014 Form 10-K.

At March 31, 2015, $15 billion, or 16%, of our total assets were measured at fair value on a recurring basis. Approximately 97% of these assets, before netting adjustments, were classified as Level 1 or Level 2 within the fair value hierarchy. At March 31, 2015, $1.4 billion, or 2%, of our total liabilities were measured at fair value on a recurring basis. Almost all of these liabilities were classified as Level 1 or Level 2.

During the first quarter of 2015, $33 million of our total assets were measured at fair value on a nonrecurring basis. All of these assets were classified as Level 3. At March 31, 2015, there were no liabilities measured at fair value on a nonrecurring basis.

During the first three months of 2015, we did not significantly alter the manner in which we applied our critical accounting policies or developed related assumptions and estimates.

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European Sovereign and Non-Sovereign Debt Exposures

Our total European sovereign and non-sovereign debt exposure is presented in Figure 43.

Figure 43. European Sovereign and Non-Sovereign Debt Exposures

	Short- and Long-		Foreign Exchange
March 31, 2015 in millions	Term Commercial Total (a)		and Derivatives with Collateral (b)			Net Exposure
France:
Sovereigns		—		—			—
Non-sovereign financial institutions		—	$	(1	)	$	(1	)
Non-sovereign non-financial institutions	$	27		—			27
Total		27		(1	)		26
Germany:
Sovereigns		—		—			—
Non-sovereign financial institutions		—		—			—
Non-sovereign non-financial institutions		202		—			202
Total		202		—			202
Greece:
Sovereigns		—		—			—
Non-sovereign financial institutions		—		—			—
Non-sovereign non-financial institutions		—		—			—
Total		—		—			—
Iceland:
Sovereigns		—		—			—
Non-sovereign financial institutions		—		—			—
Non-sovereign non-financial institutions		—		—			—
Total		—		—			—
Ireland:
Sovereigns		—		—			—
Non-sovereign financial institutions		—		—			—
Non-sovereign non-financial institutions		1		—			1
Total		1		—			1
Italy:
Sovereigns		—		—			—
Non-sovereign financial institutions		—		—			—
Non-sovereign non-financial institutions		47		—			47
Total		47		—			47
Netherlands:
Sovereigns		—		—			—
Non-sovereign financial institutions		—		—			—
Non-sovereign non-financial institutions		19		—			19
Total		19		—			19
Portugal:
Sovereigns		—		—			—
Non-sovereign financial institutions		—		—			—
Non-sovereign non-financial institutions		—		—			—
Total		—		—			—
Spain:
Sovereigns		—		—			—
Non-sovereign financial institutions		—		—			—
Non-sovereign non-financial institutions		36		—			36
Total		36		—			36
Switzerland:
Sovereigns		—		—			—
Non-sovereign financial institutions		—		(7	)		(7	)
Non-sovereign non-financial institutions		66		—			66
Total		66		(7	)		59
United Kingdom:
Sovereigns		—		—			—
Non-sovereign financial institutions		—		(2	)		(2	)
Non-sovereign non-financial institutions		106		—			106
Total		106		(2	)		104
Other Europe: (c)
Sovereigns		—		—			—
Non-sovereign financial institutions		—		—			—
Non-sovereign non-financial institutions		82		—			82
Total		82		—			82
Total Europe:
Sovereigns		—		—			—
Non-sovereign financial institutions		—		(10	)		(10	)
Non-sovereign non-financial institutions		586		—			586
Total	$	586	$	(10	)	$	576

(a) This column represents our outstanding leases.

(b) This column represents contracts to hedge our balance sheet asset and liability needs, and to accommodate our clients’ trading and/or hedging needs. Our derivative mark-to-market exposures are calculated and reported on a daily basis. These exposures are largely covered by cash or highly marketable securities collateral with daily collateral calls.

(c) Other Europe consists of the following countries: Austria, Belarus, Belgium, Bulgaria, Cyprus, Czech Republic, Denmark, Finland, Hungary, Lithuania, Luxembourg, Malta, Norway, Poland, Romania, Russia, Slovakia, Slovenia, Sweden, and Ukraine. Approximately 99% of our exposure in Other Europe is in Belgium, Finland, and Sweden.

Our credit risk exposure is largely concentrated in developed countries with emerging market exposure essentially limited to commercial facilities; these exposures are actively monitored by management. We do not have at-risk exposures in the rest of the world.

139

Item 3. Quantitative and Qualitative Disclosure about Market Risk

The information presented in the “Market risk management” section of the Management’s Discussion & Analysis of Financial Condition & Results of Operations is incorporated herein by reference.

Item 4. Controls and Procedures

As of the end of the period covered by this report, KeyCorp carried out an evaluation, under the supervision and with the participation of KeyCorp’s management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of KeyCorp’s disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934 (the “Exchange Act”)), to ensure that information required to be disclosed by KeyCorp in reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to KeyCorp’s management, including its Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. Based upon that evaluation, KeyCorp’s Chief Executive Officer and Chief Financial Officer concluded that the design and operation of these disclosure controls and procedures were effective, in all material respects, as of the end of the period covered by this report. No changes were made to KeyCorp’s internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) during the last fiscal quarter that materially affected, or are reasonably likely to materially affect, KeyCorp’s internal control over financial reporting.

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

The information presented in the Legal Proceedings section of Note 15 (“Contingent Liabilities and Guarantees”) of the Notes to Consolidated Financial Statements (Unaudited) is incorporated herein by reference.

On at least a quarterly basis, we assess our liabilities and contingencies in connection with outstanding legal proceedings utilizing the latest information available. Where it is probable that we will incur a loss and the amount of the loss can be reasonably estimated, we record a liability in our consolidated financial statements. These legal reserves may be increased or decreased to reflect any relevant developments on a quarterly basis. Where a loss is not probable or the amount of the loss is not estimable, we have not accrued legal reserves, consistent with applicable accounting guidance. Based on information currently available to us, advice of counsel, and available insurance coverage, we believe that our established reserves are adequate and the liabilities arising from the legal proceedings will not have a material adverse effect on our consolidated financial condition. We note, however, that in light of the inherent uncertainty in legal proceedings there can be no assurance that the ultimate resolution will not exceed established reserves. As a result, the outcome of a particular matter or a combination of matters may be material to our results of operations for a particular period, depending upon the size of the loss or our income for that particular period.

Item 1A. Risk Factors

For a discussion of certain risk factors affecting us, see the section titled “Supervision and Regulation” in Part I, Item 1. Business, on pages 9-18 of our 2014 Form 10-K; Part I, Item 1A. Risk Factors, on pages 18-28 of our 2014 Form 10-K; the section titled “Supervision and regulation” in this Form 10-Q; and our disclosure regarding forward-looking statements in this Form 10-Q.

140

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

From time to time, KeyCorp or its principal subsidiary, KeyBank, may seek to retire, repurchase, or exchange outstanding debt of KeyCorp or KeyBank, and capital securities or preferred stock of KeyCorp, through cash purchase, privately negotiated transactions, or otherwise. Such transactions, if any, depend on prevailing market conditions, our liquidity and capital requirements, contractual restrictions, and other factors. The amounts involved may be material.

In January 2015, we submitted to the Federal Reserve and provided to the OCC our 2015 capital plan under the annual CCAR process. On March 11, 2015, the Federal Reserve announced that it did not object to our 2015 capital plan. The 2015 capital plan includes a common share repurchase program of up to $725 million. Share repurchases under the capital plan have been authorized by our Board and include repurchases to offset issuances of common shares under our employee compensation plans. Common share repurchases under the 2015 capital plan, which began in the second quarter of 2015, are expected to be executed through the second quarter of 2016.

We completed $208 million of common share repurchases during the first quarter of 2015 under our 2014 capital plan authorization. The 2014 capital plan authorization expired on March 31, 2015.

The following table summarizes our repurchases of our common shares for the three months ended March 31, 2015.

Calendar month	Total number of shares repurchased (a)		Average price paid per share		Total number of shares purchased as part of publicly announced plans or programs		Maximum number of shares that may yet be purchased as part of publicly announced plans or programs (b)
January 1 - 31		3,035,683	$	13.22		3,025,180		11,331,582
February 1 - 28		6,576,282		13.87		6,422,205		4,021,251
March 1 - 31		5,284,989		14.48		4,640,127		671,021
Total		14,896,954	$	13.95		14,087,512

(a) Includes common shares repurchased in the open market and common shares deemed surrendered by employees in connection with our stock compensation and benefit plans to satisfy tax obligations.

(b) Calculated using the remaining general repurchase amount divided by the closing price of KeyCorp common shares as follows: on January 31, 2015, at $12.99; on February 28, 2015, at $13.93; and on March 31, 2015, at $14.16.

Item 6. Exhibits

15	Acknowledgment of Independent Registered Public Accounting Firm.
31.1	Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Certification of Chief Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2	Certification of Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101	The following materials from KeyCorp’s Form 10-Q Report for the quarterly period ended March 31, 2015, formatted in XBRL: (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Income and Consolidated Statements of Comprehensive Income, (iii) the Consolidated Statements of Changes in Equity, (iv) the Consolidated Statements of Cash Flows and (v) the Notes to Consolidated Financial Statements.

Information Available on Website

KeyCorp makes available free of charge on its website, www.key.com, its 2014 Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to these reports as soon as reasonably practicable after KeyCorp electronically files such material with, or furnishes it to, the SEC. We also make available a summary of filings made with the SEC of statements of beneficial ownership of our equity securities filed by our directors and officers under Section 16 of the Exchange Act. The “Regulatory Disclosure” tab of the investor relations section of our website includes public disclosures concerning our annual and mid-year stress-testing activities under the Dodd-Frank Act. Information contained on or accessible through our website or any other website referenced in this report is not part of this report.

141

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, on the date indicated.

	KEYCORP (Registrant)
Date: May 5, 2015
		By: Robert L. Morris
		Chief Accounting Officer (Principal Accounting Officer)

142

EX-15

Exhibit 15

ACKNOWLEDGMENT OF ERNST & YOUNG LLP,

INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

May 5, 2015

The Board of Directors and Shareholders of KeyCorp

We are aware of the incorporation by reference in the following Registration Statements (including all amendments thereto) of KeyCorp:

Form S-3 No. 333-55959

Form S-3 No. 333-59175

Form S-3 No. 333-64601

Form S-3 No. 333-76619

Form S-3 No. 333-151608

Form S-3 No. 333-174865

Form S-3 No. 333-196641

Form S-4 No. 333-146456

Form S-8 No. 333-49609

Form S-8 No. 333-49633

Form S-8 No. 333-70669

Form S-8 No. 333-70703

Form S-8 No. 333-70775

Form S-8 No. 333-72189

Form S-8 No. 333-92881

Form S-8 No. 333-45320

Form S-8 No. 333-45322

Form S-8 No. 333-99493

Form S-8 No. 333-107074

Form S-8 No. 333-107075

Form S-8 No. 333-107076

Form S-8 No. 333-109273

Form S-8 No. 333-112225

Form S-8 No. 333-116120

Form S-8 No. 333-167093

Form S-8 No. 333-188703

of our review report dated May 5, 2015 relating to the unaudited consolidated interim financial statements of KeyCorp that are included in its Form 10-Q for the quarter ended March 31, 2015.

/s/ Ernst & Young

Cleveland, Ohio

EX-31.1

Exhibit 31.1

CERTIFICATION PURSUANT TO

SECTION 302 OF THE

SARBANES-OXLEY ACT OF 2002

I, Beth E. Mooney, certify that:

1. I have reviewed this quarterly report on Form 10-Q of KeyCorp;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 5, 2015
	Beth E. Mooney
	Chairman, Chief Executive Officer and President

EX-31.2

Exhibit 31.2

CERTIFICATION PURSUANT TO

SECTION 302 OF THE

SARBANES-OXLEY ACT OF 2002

I, Donald R. Kimble, certify that:

1. I have reviewed this quarterly report on Form 10-Q of KeyCorp;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 5, 2015
	Donald R. Kimble
	Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

SECTION 906 OF THE

SARBANES-OXLEY ACT OF 2002

Pursuant to 18 U.S.C. 1350, the undersigned officer of KeyCorp (the “Company”) hereby certifies that the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2015 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934 and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: May 5, 2015

Beth E. Mooney

Chairman, Chief Executive Officer and President

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

SECTION 906 OF THE

SARBANES-OXLEY ACT OF 2002

Pursuant to 18 U.S.C. 1350, the undersigned officer of KeyCorp (the “Company”) hereby certifies that the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2015 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934 and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: May 5, 2015

Donald R. Kimble

Chief Financial Officer

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Securities Financing Activities (Tables)

3 Months Ended

Mar. 31, 2015

Brokers and Dealers [Abstract]

Summarized Securities Financing Agreements

The following table summarizes our securities financing agreements at March 31, 2015, December 31, 2014, and March 31, 2014:

	March 31, 2015
in millions	Gross Amount Presented in Balance Sheet		Netting Adjustments (a)			Collateral (b)			Net Amounts
Offsetting of financial assets:
Reverse repurchase agreements	$	2	$	(2	)		—			—
Securities borrowed		—		—			—			—
Total	$	2	$	(2	)		—			—
Offsetting of financial liabilities:
Repurchase agreements	$	4	$	(2	)	$	(2	)		—
Total	$	4	$	(2	)	$	(2	)		—
	December 31, 2014
in millions	Gross Amount Presented in Balance Sheet		Netting Adjustments (a)			Collateral (b)			Net Amounts
Offsetting of financial assets:
Reverse repurchase agreements	$	3	$	(1	)	$	(2	)		—
Securities borrowed		—		—			—			—
Total	$	3	$	(1	)	$	(2	)		—
Offsetting of financial liabilities:
Repurchase agreements	$	1	$	(1	)		—			—
Total	$	1	$	(1	)		—			—
	March 31, 2014
in millions	Gross Amount Presented in Balance Sheet		Netting Adjustments (a)			Collateral (b)			Net Amounts
Offsetting of financial assets:
Reverse repurchase agreements	$	442	$	(306	)	$	(126	)	$	10
Securities borrowed		3		—			(3	)		—
Total	$	445	$	(306	)	$	(129	)	$	10
Offsetting of financial liabilities:
Repurchase agreements	$	568	$	(306	)	$	(262	)		—
Total	$	568	$	(306	)	$	(262	)		—

(a) Netting adjustments take into account the impact of master netting agreements that allow us to settle with a single counterparty on a net basis.

(b) These adjustments take into account the impact of bilateral collateral agreements that allow us to offset the net positions with the related collateral. The application of collateral cannot reduce the net position below zero. Therefore, excess collateral, if any, is not reflected above.

XML

Acquisitions and Discontinued Operations - Change in Fair Values of Level 3 Consolidated Education Loan Securitization Trusts and Portfolio Loans (Parenthetical) (Detail) (Education Lending [Member], Discontinued Operations [Member], USD $)	Mar. 31, 2015	Mar. 31, 2014
Education Lending [Member] | Discontinued Operations [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Issuances transfers	$ 0	$ 0

XML

Asset Quality - Breakdown of Individually Impaired Loans (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		12 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Financing Receivable, Impaired [Line Items]
With no related allowance recorded, Recorded Investment	$ 128	$ 163	$ 115
Recorded Investment	338	304	302
With no related allowance recorded, Unpaid Principal Balance	165	205	133
Unpaid Principal Balance	376	349	320
With no related allowance recorded, Specific Allowance	0	0	0
With no related allowance recorded, Average Recorded Investment	121	182	131
With related allowance recorded, Recorded Investment	210	141	187
With related allowance recorded, Unpaid Principal Balance	211	144	187
Specific Allowance	49	34	40
With related allowance recorded, Average Recorded Investment	199	149	169
Average Recorded Investment	320	331	300
Commercial, Financial and Agricultural [Member]
Financing Receivable, Impaired [Line Items]
With no related allowance recorded, Recorded Investment	20	33	6
With no related allowance recorded, Unpaid Principal Balance	51	60	17
With no related allowance recorded, Specific Allowance	0	0	0
With no related allowance recorded, Average Recorded Investment	13	33	8
With related allowance recorded, Recorded Investment	62	7	37
With related allowance recorded, Unpaid Principal Balance	62	10	37
Specific Allowance	20	2	9
With related allowance recorded, Average Recorded Investment	50	12	28
Commercial Real Estate: Commercial Mortgage [Member]
Financing Receivable, Impaired [Line Items]
With no related allowance recorded, Recorded Investment	14	23	15
With no related allowance recorded, Unpaid Principal Balance	19	28	20
With no related allowance recorded, Specific Allowance	0	0	0
With no related allowance recorded, Average Recorded Investment	14	22	19
With related allowance recorded, Recorded Investment	6	2	6
With related allowance recorded, Unpaid Principal Balance	7	2	6
Specific Allowance	2	1	2
With related allowance recorded, Average Recorded Investment	6	4	6
Commercial Real Estate: Construction [Member]
Financing Receivable, Impaired [Line Items]
With no related allowance recorded, Recorded Investment	7	7	5
With no related allowance recorded, Unpaid Principal Balance	7	17	6
With no related allowance recorded, Specific Allowance	0	0	0
With no related allowance recorded, Average Recorded Investment	6	27	7
With related allowance recorded, Recorded Investment			3
With related allowance recorded, Unpaid Principal Balance			3
Specific Allowance			1
With related allowance recorded, Average Recorded Investment	1	1	2
Commercial Real Estate Loans [Member]
Financing Receivable, Impaired [Line Items]
With no related allowance recorded, Recorded Investment	21	30	20
With no related allowance recorded, Unpaid Principal Balance	26	45	26
With no related allowance recorded, Specific Allowance	0	0	0
With no related allowance recorded, Average Recorded Investment	20	49	26
With related allowance recorded, Recorded Investment	6	2	9
With related allowance recorded, Unpaid Principal Balance	7	2	9
Specific Allowance	2	1	3
With related allowance recorded, Average Recorded Investment	7	5	8
Commercial Loans [Member]
Financing Receivable, Impaired [Line Items]
With no related allowance recorded, Recorded Investment	41	63	26
With no related allowance recorded, Unpaid Principal Balance	77	105	43
With no related allowance recorded, Specific Allowance	0	0	0
With no related allowance recorded, Average Recorded Investment	33	82	34
With related allowance recorded, Recorded Investment	68	9	46
With related allowance recorded, Unpaid Principal Balance	69	12	46
Specific Allowance	22	3	12
With related allowance recorded, Average Recorded Investment	57	17	36
Real Estate - Residential Mortgage [Member]
Financing Receivable, Impaired [Line Items]
With no related allowance recorded, Recorded Investment	23	26	24
With no related allowance recorded, Unpaid Principal Balance	23	26	24
With no related allowance recorded, Specific Allowance	0	0	0
With no related allowance recorded, Average Recorded Investment	23	26	30
With related allowance recorded, Recorded Investment	32	28	31
With related allowance recorded, Unpaid Principal Balance	32	28	31
Specific Allowance	5	5	5
With related allowance recorded, Average Recorded Investment	32	28	25
Home Equity: Key Community Bank [Member]
Financing Receivable, Impaired [Line Items]
With no related allowance recorded, Recorded Investment	62	70	62
With no related allowance recorded, Unpaid Principal Balance	62	70	63
With no related allowance recorded, Specific Allowance	0	0	0
With no related allowance recorded, Average Recorded Investment	62	69	63
With related allowance recorded, Recorded Investment	49	36	46
With related allowance recorded, Unpaid Principal Balance	49	36	46
Specific Allowance	16	16	16
With related allowance recorded, Average Recorded Investment	48	36	43
Home Equity: Other [Member]
Financing Receivable, Impaired [Line Items]
With no related allowance recorded, Recorded Investment	1	2	1
With no related allowance recorded, Unpaid Principal Balance	2	2	1
With no related allowance recorded, Specific Allowance	0	0	0
With no related allowance recorded, Average Recorded Investment	1	2	2
With related allowance recorded, Recorded Investment	11	11	11
With related allowance recorded, Unpaid Principal Balance	11	11	11
Specific Allowance	2	2	2
With related allowance recorded, Average Recorded Investment	11	11	11
Home Equity Loans [Member]
Financing Receivable, Impaired [Line Items]
With no related allowance recorded, Recorded Investment	63	72	63
With no related allowance recorded, Unpaid Principal Balance	64	72	64
With no related allowance recorded, Specific Allowance	0	0	0
With no related allowance recorded, Average Recorded Investment	63	71	65
With related allowance recorded, Recorded Investment	60	47	57
With related allowance recorded, Unpaid Principal Balance	60	47	57
Specific Allowance	18	18	18
With related allowance recorded, Average Recorded Investment	59	47	54
Consumer Marine [Member]
Financing Receivable, Impaired [Line Items]
With no related allowance recorded, Recorded Investment	1	2	2
With no related allowance recorded, Unpaid Principal Balance	1	2	2
With no related allowance recorded, Specific Allowance	0	0	0
With no related allowance recorded, Average Recorded Investment	2	3	2
With related allowance recorded, Recorded Investment	41	49	43
With related allowance recorded, Unpaid Principal Balance	41	49	43
Specific Allowance	4	7	5
With related allowance recorded, Average Recorded Investment	42	49	45
Consumer Other [Member]
Financing Receivable, Impaired [Line Items]
With no related allowance recorded, Recorded Investment	1	2	2
With no related allowance recorded, Unpaid Principal Balance	1	2	2
With no related allowance recorded, Specific Allowance	0	0	0
With no related allowance recorded, Average Recorded Investment	2	3	2
With related allowance recorded, Recorded Investment	43	50	45
With related allowance recorded, Unpaid Principal Balance	43	50	45
Specific Allowance	4	7	5
With related allowance recorded, Average Recorded Investment	44	50	47
Consumer Loans [Member]
Financing Receivable, Impaired [Line Items]
With no related allowance recorded, Recorded Investment	87	100	89
With no related allowance recorded, Unpaid Principal Balance	88	100	90
With no related allowance recorded, Specific Allowance	0	0	0
With no related allowance recorded, Average Recorded Investment	88	100	97
With related allowance recorded, Recorded Investment	142	132	141
With related allowance recorded, Unpaid Principal Balance	142	132	141
Specific Allowance	27	31	28
With related allowance recorded, Average Recorded Investment	142	132	133
Consumer Other - Key Community Bank [Member]
Financing Receivable, Impaired [Line Items]
With related allowance recorded, Recorded Investment	3	3	4
With related allowance recorded, Unpaid Principal Balance	3	3	4
With related allowance recorded, Average Recorded Investment	3	3	3
Consumer Credit Card [Member]
Financing Receivable, Impaired [Line Items]
With related allowance recorded, Recorded Investment	4	4	4
With related allowance recorded, Unpaid Principal Balance	4	4	4
Specific Allowance		1
With related allowance recorded, Average Recorded Investment	4	4	4
Other Consumer [Member]
Financing Receivable, Impaired [Line Items]
With related allowance recorded, Recorded Investment	2	1	2
With related allowance recorded, Unpaid Principal Balance	2	1	2
With related allowance recorded, Average Recorded Investment	$ 2	$ 1	$ 2

XML

Loans and Loans Held for Sale - Loans by Category (Parenthetical) (Detail) (USD $)	3 Months Ended		12 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial, financial and agricultural	$ 28,783,000,000	$ 26,224,000,000	$ 27,982,000,000
Commercial lease financing includes receivables held as collateral for secured borrowing	230,000,000	124,000,000	302,000,000
Purchased loans	130,000,000	159,000,000	138,000,000
Education Lending [Member] | Discontinued Operations [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	2,200,000,000	4,400,000,000	2,300,000,000
Commercial Credit Card [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial, financial and agricultural	87,000,000	95,000,000	88,000,000
PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Purchased loans	$ 12,000,000	$ 16,000,000	$ 13,000,000

XML

Employee Benefits - Additional Information (Detail) (Other Postretirement Benefit Plans [Member])	3 Months Ended
	Mar. 31, 2015
Other Postretirement Benefit Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Age of employees under condition one	55 years
Age of employees under condition two	50 years
Period of service under condition one	5 years
Period of service under condition two	15 years
Minimum period of service at the time of termination hired before 2001	15 years
Condition under retiree healthcare plan	We sponsor a retiree healthcare plan in which all employees age 55 with five years of service (or employees age 50 with 15 years of service who are terminated under conditions that entitle them to a severance benefit) are eligible to participate.

XML

Fair Value Measurements - Fair Value of Assets and Liabilities Measured on Recurring Basis (Detail) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014	Mar. 31, 2014
ASSETS MEASURED ON A RECURRING BASIS
Total trading account securities	$ 789	$ 750	$ 840
Securities available for sale	13,120	13,360	12,359
Derivative asset netting adjustments	(1,071)	(1,034)	(713)
Total derivative assets	731	609	427
LIABILITIES MEASURED ON A RECURRING BASIS
Derivative liability netting adjustments	(588)	(542)	(448)
Total derivative liabilities	825	784	408
States and Political Subdivisions [Member]
ASSETS MEASURED ON A RECURRING BASIS
Securities available for sale	22	23	37
Collateralized Mortgage Obligations [Member]
ASSETS MEASURED ON A RECURRING BASIS
Securities available for sale	11,163	11,270	10,469
Other Securities [Member]
ASSETS MEASURED ON A RECURRING BASIS
Securities available for sale	33	32	21
Other Mortgage-Backed Securities [Member]
ASSETS MEASURED ON A RECURRING BASIS
Securities available for sale	1,902	2,035	1,832
Recurring [Member]
ASSETS MEASURED ON A RECURRING BASIS
Commercial loans	5	2	2
Total trading account assets	789	750	840
Securities available for sale	13,120	13,360	12,359
Total other investments	384	416	564
Derivative assets	1,802	1,643	1,140
Derivative asset netting adjustments	(1,071)	(1,034)	(713)
Total derivative assets	731	609	427
Accrued income and other assets	2
Total assets at fair value	15,026	15,135	14,190
LIABILITIES MEASURED ON A RECURRING BASIS
Derivative liabilities	1,413	1,326	856
Derivative liability netting adjustments	(588)	(542)	(448)
Total derivative liabilities	825	784	408
Accrued expense and other liabilities	2
Total liabilities on a recurring basis at fair value	1,434	1,207	871
Recurring [Member] | U.S. Treasury, Agencies and Corporations [Member]
ASSETS MEASURED ON A RECURRING BASIS
Total trading account securities	668	555	533
Recurring [Member] | States and Political Subdivisions [Member]
ASSETS MEASURED ON A RECURRING BASIS
Total trading account securities	35	38	46
Securities available for sale	22	23	37
Recurring [Member] | Collateralized Mortgage Obligations [Member]
ASSETS MEASURED ON A RECURRING BASIS
Total trading account securities			9
Securities available for sale	11,163	11,270	10,469
Recurring [Member] | Other Securities [Member]
ASSETS MEASURED ON A RECURRING BASIS
Total trading account securities	30	31	51
Securities available for sale	33	32	21
Recurring [Member] | Trading Account Assets [Member]
ASSETS MEASURED ON A RECURRING BASIS
Total trading account securities	784	748	838
Recurring [Member] | Principal Investments Direct [Member]
ASSETS MEASURED ON A RECURRING BASIS
Total other investments	74	104	141
Recurring [Member] | Principal Investments Indirect [Member]
ASSETS MEASURED ON A RECURRING BASIS
Total other investments	301	302	403
Recurring [Member] | Principal Investments [Member]
ASSETS MEASURED ON A RECURRING BASIS
Total other investments	375	406	544
Recurring [Member] | Equity and Mezzanine Investments Indirect [Member]
ASSETS MEASURED ON A RECURRING BASIS
Total other investments	9	10	20
Recurring [Member] | Private Equity and Mezzanine Investments [Member]
ASSETS MEASURED ON A RECURRING BASIS
Total other investments	9	10	20
Recurring [Member] | Other Mortgage-Backed Securities [Member]
ASSETS MEASURED ON A RECURRING BASIS
Total trading account securities	51	124	199
Securities available for sale	1,902	2,035	1,832
Recurring [Member] | Short Positions [Member]
LIABILITIES MEASURED ON A RECURRING BASIS
Derivative liabilities	607	423	463
Recurring [Member] | Interest Rate [Member]
ASSETS MEASURED ON A RECURRING BASIS
Derivative assets	1,044	937	965
LIABILITIES MEASURED ON A RECURRING BASIS
Derivative liabilities	692	644	687
Recurring [Member] | Foreign Exchange [Member]
ASSETS MEASURED ON A RECURRING BASIS
Derivative assets	172	93	60
LIABILITIES MEASURED ON A RECURRING BASIS
Derivative liabilities	147	81	52
Recurring [Member] | Commodity [Member]
ASSETS MEASURED ON A RECURRING BASIS
Derivative assets	581	608	110
LIABILITIES MEASURED ON A RECURRING BASIS
Derivative liabilities	567	594	105
Recurring [Member] | Credit [Member]
ASSETS MEASURED ON A RECURRING BASIS
Derivative assets	5	5	5
LIABILITIES MEASURED ON A RECURRING BASIS
Derivative liabilities	7	7	12
Level 1 [Member] | Recurring [Member]
ASSETS MEASURED ON A RECURRING BASIS
Total trading account assets	5	2	4
Securities available for sale	23	22	21
Total other investments	1	2
Derivative assets	164	91	51
Total derivative assets	164	91	51
Total assets at fair value	193	117	76
LIABILITIES MEASURED ON A RECURRING BASIS
Derivative liabilities	138	77	43
Total derivative liabilities	138	77	43
Total liabilities on a recurring basis at fair value	138	77	46
Level 1 [Member] | Recurring [Member] | Other Securities [Member]
ASSETS MEASURED ON A RECURRING BASIS
Total trading account securities	5	2	4
Securities available for sale	23	22	21
Level 1 [Member] | Recurring [Member] | Trading Account Assets [Member]
ASSETS MEASURED ON A RECURRING BASIS
Total trading account securities	5	2	4
Level 1 [Member] | Recurring [Member] | Principal Investments Direct [Member]
ASSETS MEASURED ON A RECURRING BASIS
Total other investments	1	2
Level 1 [Member] | Recurring [Member] | Principal Investments [Member]
ASSETS MEASURED ON A RECURRING BASIS
Total other investments	1	2
Level 1 [Member] | Recurring [Member] | Short Positions [Member]
LIABILITIES MEASURED ON A RECURRING BASIS
Derivative liabilities			3
Level 1 [Member] | Recurring [Member] | Foreign Exchange [Member]
ASSETS MEASURED ON A RECURRING BASIS
Derivative assets	164	91	51
LIABILITIES MEASURED ON A RECURRING BASIS
Derivative liabilities	138	77	43
Level 2 [Member] | Recurring [Member]
ASSETS MEASURED ON A RECURRING BASIS
Commercial loans	5	2	2
Total trading account assets	784	748	836
Securities available for sale	13,087	13,328	12,338
Derivative assets	1,625	1,536	1,063
Total derivative assets	1,625	1,536	1,063
Accrued income and other assets	2
Total assets at fair value	15,498	15,612	14,237
LIABILITIES MEASURED ON A RECURRING BASIS
Derivative liabilities	1,274	1,248	812
Total derivative liabilities	1,274	1,248	812
Accrued expense and other liabilities	2
Total liabilities on a recurring basis at fair value	1,883	1,671	1,272
Level 2 [Member] | Recurring [Member] | U.S. Treasury, Agencies and Corporations [Member]
ASSETS MEASURED ON A RECURRING BASIS
Total trading account securities	668	555	533
Level 2 [Member] | Recurring [Member] | States and Political Subdivisions [Member]
ASSETS MEASURED ON A RECURRING BASIS
Total trading account securities	35	38	46
Securities available for sale	22	23	37
Level 2 [Member] | Recurring [Member] | Collateralized Mortgage Obligations [Member]
ASSETS MEASURED ON A RECURRING BASIS
Total trading account securities			9
Securities available for sale	11,163	11,270	10,469
Level 2 [Member] | Recurring [Member] | Other Securities [Member]
ASSETS MEASURED ON A RECURRING BASIS
Total trading account securities	25	29	47
Level 2 [Member] | Recurring [Member] | Trading Account Assets [Member]
ASSETS MEASURED ON A RECURRING BASIS
Total trading account securities	779	746	834
Level 2 [Member] | Recurring [Member] | Other Mortgage-Backed Securities [Member]
ASSETS MEASURED ON A RECURRING BASIS
Total trading account securities	51	124	199
Securities available for sale	1,902	2,035	1,832
Level 2 [Member] | Recurring [Member] | Short Positions [Member]
LIABILITIES MEASURED ON A RECURRING BASIS
Derivative liabilities	607	423	460
Level 2 [Member] | Recurring [Member] | Interest Rate [Member]
ASSETS MEASURED ON A RECURRING BASIS
Derivative assets	1,034	924	943
LIABILITIES MEASURED ON A RECURRING BASIS
Derivative liabilities	692	644	687
Level 2 [Member] | Recurring [Member] | Foreign Exchange [Member]
ASSETS MEASURED ON A RECURRING BASIS
Derivative assets	8	2	9
LIABILITIES MEASURED ON A RECURRING BASIS
Derivative liabilities	9	4	9
Level 2 [Member] | Recurring [Member] | Commodity [Member]
ASSETS MEASURED ON A RECURRING BASIS
Derivative assets	581	608	110
LIABILITIES MEASURED ON A RECURRING BASIS
Derivative liabilities	567	594	105
Level 2 [Member] | Recurring [Member] | Credit [Member]
ASSETS MEASURED ON A RECURRING BASIS
Derivative assets	2	2	1
LIABILITIES MEASURED ON A RECURRING BASIS
Derivative liabilities	6	6	11
Level 3 [Member] | Recurring [Member]
ASSETS MEASURED ON A RECURRING BASIS
Securities available for sale	10	10
Total other investments	383	414	564
Derivative assets	13	16	26
Total derivative assets	13	16	26
Total assets at fair value	406	440	590
LIABILITIES MEASURED ON A RECURRING BASIS
Derivative liabilities	1	1	1
Total derivative liabilities	1	1	1
Total liabilities on a recurring basis at fair value	1	1	1
Level 3 [Member] | Recurring [Member] | Other Securities [Member]
ASSETS MEASURED ON A RECURRING BASIS
Securities available for sale	10	10
Level 3 [Member] | Recurring [Member] | Principal Investments Direct [Member]
ASSETS MEASURED ON A RECURRING BASIS
Total other investments	73	102	141
Level 3 [Member] | Recurring [Member] | Principal Investments Indirect [Member]
ASSETS MEASURED ON A RECURRING BASIS
Total other investments	301	302	403
Level 3 [Member] | Recurring [Member] | Principal Investments [Member]
ASSETS MEASURED ON A RECURRING BASIS
Total other investments	374	404	544
Level 3 [Member] | Recurring [Member] | Equity and Mezzanine Investments Indirect [Member]
ASSETS MEASURED ON A RECURRING BASIS
Total other investments	9	10	20
Level 3 [Member] | Recurring [Member] | Private Equity and Mezzanine Investments [Member]
ASSETS MEASURED ON A RECURRING BASIS
Total other investments	9	10	20
Level 3 [Member] | Recurring [Member] | Interest Rate [Member]
ASSETS MEASURED ON A RECURRING BASIS
Derivative assets	10	13	22
Level 3 [Member] | Recurring [Member] | Credit [Member]
ASSETS MEASURED ON A RECURRING BASIS
Derivative assets	3	3	4
LIABILITIES MEASURED ON A RECURRING BASIS
Derivative liabilities	$ 1	$ 1	$ 1

XML

Trust Preferred Securities Issued by Unconsolidated Subsidiaries - Summary of Trust Preferred Securities, Common Stock and Related Debentures (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Dec. 31, 2014	Mar. 31, 2014
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Common Stock	$ 1,017	$ 1,017	$ 1,017
KeyCorp Capital I [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Trust Preferred Securities, Net of Discount	156
Common Stock	6
Principal Amount of Debentures, Net of Discount	162
Interest Rate of Trust Preferred Securities and Debentures	0.995%
Maturity of Trust Preferred Securities and Debentures	2028
KeyCorp Capital II [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Trust Preferred Securities, Net of Discount	112
Common Stock	4
Principal Amount of Debentures, Net of Discount	116
Interest Rate of Trust Preferred Securities and Debentures	6.875%
Maturity of Trust Preferred Securities and Debentures	2029
KeyCorp Capital III [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Trust Preferred Securities, Net of Discount	146
Common Stock	4
Principal Amount of Debentures, Net of Discount	150
Interest Rate of Trust Preferred Securities and Debentures	7.75%
Maturity of Trust Preferred Securities and Debentures	2029
Business Trusts [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Trust Preferred Securities, Net of Discount	414	408	391
Common Stock	14	14	14
Principal Amount of Debentures, Net of Discount	$ 428	$ 422	$ 405
Interest Rate of Trust Preferred Securities and Debentures	4.968%	4.926%	4.823%

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Asset Quality - Breakdown of Nonperforming TDRs by Loans Category (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		12 Months Ended
	Mar. 31, 2015 SecurityLoan	Mar. 31, 2014 SecurityLoan	Dec. 31, 2014 SecurityLoan
Financing Receivable, Modifications [Line Items]
Number of loans	4,740	4,858	4,776
Pre-modification Outstanding Recorded Investment	$ 343	$ 406	$ 349
Post-modification Outstanding Recorded Investment	268	294	270
Nonperforming [Member]
Financing Receivable, Modifications [Line Items]
Number of loans	2,051	2,347	2,391
Pre-modification Outstanding Recorded Investment	176	249	200
Post-modification Outstanding Recorded Investment	141	178	157
Prior-Year Accruing [Member]
Financing Receivable, Modifications [Line Items]
Number of loans	2,689	2,511	2,385
Pre-modification Outstanding Recorded Investment	167	157	149
Post-modification Outstanding Recorded Investment	127	116	113
Commercial, Financial and Agricultural [Member] | Nonperforming [Member]
Financing Receivable, Modifications [Line Items]
Number of loans	11	28	14
Pre-modification Outstanding Recorded Investment	25	58	25
Post-modification Outstanding Recorded Investment	22	33	23
Commercial, Financial and Agricultural [Member] | Prior-Year Accruing [Member]
Financing Receivable, Modifications [Line Items]
Number of loans	17	42	20
Pre-modification Outstanding Recorded Investment	6	7	6
Post-modification Outstanding Recorded Investment	3	4	3
Commercial Real Estate: Commercial Mortgage [Member] | Nonperforming [Member]
Financing Receivable, Modifications [Line Items]
Number of loans	12	11	10
Pre-modification Outstanding Recorded Investment	37	40	38
Post-modification Outstanding Recorded Investment	13	14	13
Commercial Real Estate: Commercial Mortgage [Member] | Prior-Year Accruing [Member]
Financing Receivable, Modifications [Line Items]
Number of loans	1	4	1
Pre-modification Outstanding Recorded Investment	2	18	2
Post-modification Outstanding Recorded Investment	1	8	1
Commercial Real Estate: Construction [Member] | Nonperforming [Member]
Financing Receivable, Modifications [Line Items]
Number of loans		5	1
Pre-modification Outstanding Recorded Investment		16	5
Post-modification Outstanding Recorded Investment		2
Commercial Real Estate Loans [Member] | Nonperforming [Member]
Financing Receivable, Modifications [Line Items]
Number of loans	12	16	11
Pre-modification Outstanding Recorded Investment	37	56	43
Post-modification Outstanding Recorded Investment	13	16	13
Commercial Real Estate Loans [Member] | Prior-Year Accruing [Member]
Financing Receivable, Modifications [Line Items]
Number of loans	1	4	1
Pre-modification Outstanding Recorded Investment	2	18	2
Post-modification Outstanding Recorded Investment	1	8	1
Commercial Loans [Member] | Nonperforming [Member]
Financing Receivable, Modifications [Line Items]
Number of loans	23	44	25
Pre-modification Outstanding Recorded Investment	62	114	68
Post-modification Outstanding Recorded Investment	35	49	36
Commercial Loans [Member] | Prior-Year Accruing [Member]
Financing Receivable, Modifications [Line Items]
Number of loans	18	46	21
Pre-modification Outstanding Recorded Investment	8	25	8
Post-modification Outstanding Recorded Investment	4	12	4
Real Estate - Residential Mortgage [Member] | Nonperforming [Member]
Financing Receivable, Modifications [Line Items]
Number of loans	383	687	453
Pre-modification Outstanding Recorded Investment	22	42	27
Post-modification Outstanding Recorded Investment	22	42	27
Real Estate - Residential Mortgage [Member] | Prior-Year Accruing [Member]
Financing Receivable, Modifications [Line Items]
Number of loans	454	111	381
Pre-modification Outstanding Recorded Investment	34	12	29
Post-modification Outstanding Recorded Investment	34	12	29
Home Equity: Key Community Bank [Member] | Nonperforming [Member]
Financing Receivable, Modifications [Line Items]
Number of loans	1,071	1,190	1,184
Pre-modification Outstanding Recorded Investment	76	73	79
Post-modification Outstanding Recorded Investment	70	69	72
Home Equity: Key Community Bank [Member] | Prior-Year Accruing [Member]
Financing Receivable, Modifications [Line Items]
Number of loans	803	708	674
Pre-modification Outstanding Recorded Investment	47	40	41
Post-modification Outstanding Recorded Investment	41	37	36
Home Equity: Other [Member] | Nonperforming [Member]
Financing Receivable, Modifications [Line Items]
Number of loans	128	132	158
Pre-modification Outstanding Recorded Investment	4	4	4
Post-modification Outstanding Recorded Investment	3	4	4
Home Equity: Other [Member] | Prior-Year Accruing [Member]
Financing Receivable, Modifications [Line Items]
Number of loans	339	312	310
Pre-modification Outstanding Recorded Investment	10	9	9
Post-modification Outstanding Recorded Investment	8	8	8
Home Equity Loans [Member] | Nonperforming [Member]
Financing Receivable, Modifications [Line Items]
Number of loans	1,199	1,322	1,342
Pre-modification Outstanding Recorded Investment	80	77	83
Post-modification Outstanding Recorded Investment	73	73	76
Home Equity Loans [Member] | Prior-Year Accruing [Member]
Financing Receivable, Modifications [Line Items]
Number of loans	1,142	1,020	984
Pre-modification Outstanding Recorded Investment	57	49	50
Post-modification Outstanding Recorded Investment	49	45	44
Consumer Other - Key Community Bank [Member] | Nonperforming [Member]
Financing Receivable, Modifications [Line Items]
Number of loans	28	33	37
Pre-modification Outstanding Recorded Investment	1	1	2
Post-modification Outstanding Recorded Investment	1	1	1
Consumer Other - Key Community Bank [Member] | Prior-Year Accruing [Member]
Financing Receivable, Modifications [Line Items]
Number of loans	51	51	45
Pre-modification Outstanding Recorded Investment	2	2	2
Post-modification Outstanding Recorded Investment	2	2	2
Consumer Credit Card Financing Receivable [Member] | Nonperforming [Member]
Financing Receivable, Modifications [Line Items]
Number of loans	275	10	290
Pre-modification Outstanding Recorded Investment	2		2
Post-modification Outstanding Recorded Investment	1		2
Consumer Credit Card Financing Receivable [Member] | Prior-Year Accruing [Member]
Financing Receivable, Modifications [Line Items]
Number of loans	519	785	514
Pre-modification Outstanding Recorded Investment	4	5	4
Post-modification Outstanding Recorded Investment	2	5	2
Consumer Marine [Member] | Nonperforming [Member]
Financing Receivable, Modifications [Line Items]
Number of loans	117	210	206
Pre-modification Outstanding Recorded Investment	8	14	17
Post-modification Outstanding Recorded Investment	8	12	14
Consumer Marine [Member] | Prior-Year Accruing [Member]
Financing Receivable, Modifications [Line Items]
Number of loans	429	430	373
Pre-modification Outstanding Recorded Investment	60	62	54
Post-modification Outstanding Recorded Investment	35	39	31
Other Consumer [Member] | Nonperforming [Member]
Financing Receivable, Modifications [Line Items]
Number of loans	26	41	38
Pre-modification Outstanding Recorded Investment	1	1	1
Post-modification Outstanding Recorded Investment	1	1	1
Other Consumer [Member] | Prior-Year Accruing [Member]
Financing Receivable, Modifications [Line Items]
Number of loans	76	68	67
Pre-modification Outstanding Recorded Investment	2	2	2
Post-modification Outstanding Recorded Investment	1	1	1
Consumer Other [Member] | Nonperforming [Member]
Financing Receivable, Modifications [Line Items]
Number of loans	143	251	244
Pre-modification Outstanding Recorded Investment	9	15	18
Post-modification Outstanding Recorded Investment	9	13	15
Consumer Other [Member] | Prior-Year Accruing [Member]
Financing Receivable, Modifications [Line Items]
Number of loans	505	498	440
Pre-modification Outstanding Recorded Investment	62	64	56
Post-modification Outstanding Recorded Investment	36	40	32
Consumer Loans [Member] | Nonperforming [Member]
Financing Receivable, Modifications [Line Items]
Number of loans	2,028	2,303	2,366
Pre-modification Outstanding Recorded Investment	114	135	132
Post-modification Outstanding Recorded Investment	106	129	121
Consumer Loans [Member] | Prior-Year Accruing [Member]
Financing Receivable, Modifications [Line Items]
Number of loans	2,671	2,465	2,364
Pre-modification Outstanding Recorded Investment	159	132	141
Post-modification Outstanding Recorded Investment	$ 123	$ 104	$ 109

XML

Securities - Details of Securities (Detail) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014	Mar. 31, 2014
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 13,037	$ 13,365	$ 12,412
Gross Unrealized Gains	160	132	165
Gross Unrealized Losses	77	137	218
Fair Value	13,120	13,360	12,359
Held to maturities, Amortized Cost	5,005	5,015	4,826
Held to maturities, Gross Unrealized Gains	28	16	9
Held to maturities, Gross Unrealized Losses	30	57	102
Held to maturities, Fair Value	5,003	4,974	4,733
Collateralized Mortgage Obligations [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	11,116	11,310	10,541
Gross Unrealized Gains	124	96	136
Gross Unrealized Losses	77	136	208
Fair Value	11,163	11,270	10,469
Held to maturities, Amortized Cost	4,749	4,755	4,806
Held to maturities, Gross Unrealized Gains	26	15	9
Held to maturities, Gross Unrealized Losses	30	57	102
Held to maturities, Fair Value	4,745	4,713	4,713
Other Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	30	29	17
Gross Unrealized Gains	3	3	4
Fair Value	33	32	21
Held to maturities, Amortized Cost	22	20	20
Held to maturities, Fair Value	22	20	20
States and Political Subdivisions [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	21	22	37
Gross Unrealized Gains	1	1
Fair Value	22	23	37
Other Mortgage-Backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	1,870	2,004	1,817
Gross Unrealized Gains	32	32	25
Gross Unrealized Losses		1	10
Fair Value	1,902	2,035	1,832
Held to maturities, Amortized Cost	234	240
Held to maturities, Gross Unrealized Gains	2	1
Held to maturities, Fair Value	$ 236	$ 241

XML

Acquisitions and Discontinued Operations - Components of Income (Loss) from Discontinued Operations, Net of Taxes for Education Lending Business (Parenthetical) (Detail) (Discontinued Operations [Member], USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Charges determined by applying a matched funds transfer pricing methodology to the liabilities assumed necessary to support the discontinued operations, after tax	$ 6	$ 9
Education Lending [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Charges determined by applying a matched funds transfer pricing methodology to the liabilities assumed necessary to support the discontinued operations, after tax	$ 6	$ 9

XML

Earnings Per Common Share - Basic and Diluted Earnings Per Common Share (Detail) (USD $) In Millions, except Share data in Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015		Mar. 31, 2014
EARNINGS
Income (loss) from continuing operations	$ 230		$ 238
Less: Net income (loss) attributable to noncontrolling interests	2
Income (loss) from continuing operations attributable to Key	228		238
Income (loss) from continuing operations attributable to Key common shareholders	222		232
Income (loss) from discontinued operations, net of taxes (a)	5		4
Net income (loss) attributable to Key common shareholders	227		236
WEIGHTED-AVERAGE COMMON SHARES
Weighted-average common shares outstanding	848,580		884,727
Effect of convertible preferred stock	0		0
Effect of common share options and other stock awards	8,542		7,163
Weighted-average common shares and potential common shares outstanding	857,122	[1]	891,890	[1]
EARNINGS PER COMMON SHARE
Income (loss) from continuing operations attributable to Key common shareholders	$ 0.26		$ 0.26
Income (loss) from discontinued operations, net of taxes (a)	$ 0.01
Net income (loss) attributable to Key common shareholders (b)	$ 0.27	[2]	$ 0.27	[2]
Income (loss) from continuing operations attributable to Key common shareholders - assuming dilution	$ 0.26		$ 0.26
Income (loss) from discontinued operations, net of taxes (a)	$ 0.01
Net income (loss) attributable to Key common shareholders - assuming dilution (b)	$ 0.26	[2]	$ 0.26	[2]
Series A Preferred Stock [Member]
EARNINGS
Less: Dividends on Series A Preferred Stock	$ 6		$ 6

[1] Assumes conversion of common share options and other stock awards and/or convertible preferred stock, as applicable.

[2] EPS may not foot due to rounding.

XML

Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2015

Fair Value of Assets and Liabilities Measured on Recurring Basis

Certain assets and liabilities are measured at fair value on a recurring basis in accordance with GAAP. The following tables present these assets and liabilities at March 31, 2015, December 31, 2014, and March 31, 2014.

March 31, 2015
in millions	Level 1		Level 2		Level 3		Total
ASSETS MEASURED ON A RECURRING BASIS
Trading account assets:
U.S. Treasury, agencies and corporations		—	$	668		—	$	668
States and political subdivisions		—		35		—		35
Collateralized mortgage obligations		—		—		—		—
Other mortgage-backed securities		—		51		—		51
Other securities	$	5		25		—		30
Total trading account securities		5		779		—		784
Commercial loans		—		5		—		5
Total trading account assets		5		784		—		789
Securities available for sale:
States and political subdivisions		—		22		—		22
Collateralized mortgage obligations		—		11,163		—		11,163
Other mortgage-backed securities		—		1,902		—		1,902
Other securities		23		—	$	10		33
Total securities available for sale		23		13,087		10		13,120
Other investments:
Principal investments:
Direct		1		—		73		74
Indirect		—		—		301		301
Total principal investments		1		—		374		375
Equity and mezzanine investments:
Direct		—		—		—		—
Indirect		—		—		9		9
Total equity and mezzanine investments		—		—		9		9
Total other investments		1		—		383		384
Derivative assets:
Interest rate		—		1,034		10		1,044
Foreign exchange		164		8		—		172
Commodity		—		581		—		581
Credit		—		2		3		5
Derivative assets		164		1,625		13		1,802
Netting adjustments (a)		—		—		—		(1,071	)
Total derivative assets		164		1,625		13		731
Accrued income and other assets		—		2		—		2
Total assets on a recurring basis at fair value	$	193	$	15,498	$	406	$	15,026
LIABILITIES MEASURED ON A RECURRING BASIS
Bank notes and other short-term borrowings:
Short positions		—	$	607		—	$	607
Derivative liabilities:
Interest rate		—		692		—		692
Foreign exchange	$	138		9		—		147
Commodity		—		567		—		567
Credit		—		6	$	1		7
Derivative liabilities		138		1,274		1		1,413
Netting adjustments (a)		—		—		—		(588	)
Total derivative liabilities		138		1,274		1		825
Accrued expense and other liabilities		—		2		—		2
Total liabilities on a recurring basis at fair value	$	138	$	1,883	$	1	$	1,434

(a) Netting adjustments represent the amounts recorded to convert our derivative assets and liabilities from a gross basis to a net basis in accordance with applicable accounting guidance. The net basis takes into account the impact of bilateral collateral and master netting agreements that allow us to settle all derivative contracts with a single counterparty on a net basis and to offset the net derivative position with the related cash collateral. Total derivative assets and liabilities include these netting adjustments.

December 31, 2014
in millions	Level 1		Level 2		Level 3		Total
ASSETS MEASURED ON A RECURRING BASIS
Trading account assets:
U.S. Treasury, agencies and corporations		—	$	555		—	$	555
States and political subdivisions		—		38		—		38
Collateralized mortgage obligations		—		—		—		—
Other mortgage-backed securities		—		124		—		124
Other securities	$	2		29		—		31
Total trading account securities		2		746		—		748
Commercial loans		—		2		—		2
Total trading account assets		2		748		—		750
Securities available for sale:
States and political subdivisions		—		23		—		23
Collateralized mortgage obligations		—		11,270		—		11,270
Other mortgage-backed securities		—		2,035		—		2,035
Other securities		22		—	$	10		32
Total securities available for sale		22		13,328		10		13,360
Other investments:
Principal investments:
Direct		2		—		102		104
Indirect		—		—		302		302
Total principal investments		2		—		404		406
Equity and mezzanine investments:
Direct		—		—		—		—
Indirect		—		—		10		10
Total equity and mezzanine investments		—		—		10		10
Total other investments		2		—		414		416
Derivative assets:
Interest rate		—		924		13		937
Foreign exchange		91		2		—		93
Commodity		—		608		—		608
Credit		—		2		3		5
Derivative assets		91		1,536		16		1,643
Netting adjustments (a)		—		—		—		(1,034	)
Total derivative assets		91		1,536		16		609
Accrued income and other assets		—		—		—		—
Total assets on a recurring basis at fair value	$	117	$	15,612	$	440	$	15,135
LIABILITIES MEASURED ON A RECURRING BASIS
Bank notes and other short-term borrowings:
Short positions		—	$	423		—	$	423
Derivative liabilities:
Interest rate		—		644		—		644
Foreign exchange	$	77		4		—		81
Commodity		—		594		—		594
Credit		—		6	$	1		7
Derivative liabilities		77		1,248		1		1,326
Netting adjustments (a)		—		—		—		(542	)
Total derivative liabilities		77		1,248		1		784
Accrued expense and other liabilities		—		—		—		—
Total liabilities on a recurring basis at fair value	$	77	$	1,671	$	1	$	1,207

(a) Netting adjustments represent the amounts recorded to convert our derivative assets and liabilities from a gross basis to a net basis in accordance with applicable accounting guidance. The net basis takes into account the impact of bilateral collateral and master netting agreements that allow us to settle all derivative contracts with a single counterparty on a net basis and to offset the net derivative position with the related cash collateral. Total derivative assets and liabilities include these netting adjustments.

March 31, 2014
in millions	Level 1		Level 2		Level 3		Total
ASSETS MEASURED ON A RECURRING BASIS
Trading account assets:
U.S. Treasury, agencies and corporations		—	$	533		—	$	533
States and political subdivisions		—		46		—		46
Collateralized mortgage obligations		—		9		—		9
Other mortgage-backed securities		—		199		—		199
Other securities	$	4		47		—		51
Total trading account securities		4		834		—		838
Commercial loans		—		2		—		2
Total trading account assets		4		836		—		840
Securities available for sale:
States and political subdivisions		—		37		—		37
Collateralized mortgage obligations		—		10,469		—		10,469
Other mortgage-backed securities		—		1,832		—		1,832
Other securities		21		—		—		21
Total securities available for sale		21		12,338		—		12,359
Other investments:
Principal investments:
Direct		—		—	$	141		141
Indirect		—		—		403		403
Total principal investments		—		—		544		544
Equity and mezzanine investments:
Direct		—		—		—		—
Indirect		—		—		20		20
Total equity and mezzanine investments		—		—		20		20
Total other investments		—		—		564		564
Derivative assets:
Interest rate		—		943		22		965
Foreign exchange		51		9		—		60
Commodity		—		110		—		110
Credit		—		1		4		5
Derivative assets		51		1,063		26		1,140
Netting adjustments (a)		—		—		—		(713	)
Total derivative assets		51		1,063		26		427
Accrued income and other assets		—		—		—		—
Total assets on a recurring basis at fair value	$	76	$	14,237	$	590	$	14,190
LIABILITIES MEASURED ON A RECURRING BASIS
Bank notes and other short-term borrowings:
Short positions	$	3	$	460		—	$	463
Derivative liabilities:
Interest rate		—		687		—		687
Foreign exchange		43		9		—		52
Commodity		—		105		—		105
Credit		—		11	$	1		12
Derivative liabilities		43		812		1		856
Netting adjustments (a)		—		—		—		(448	)
Total derivative liabilities		43		812		1		408
Accrued expense and other liabilities		—		—		—		—
Total liabilities on a recurring basis at fair value	$	46	$	1,272	$	1	$	871

(a) Netting adjustments represent the amounts recorded to convert our derivative assets and liabilities from a gross basis to a net basis in accordance with applicable accounting guidance. The net basis takes into account the impact of bilateral collateral and master netting agreements that allow us to settle all derivative contracts with a single counterparty on a net basis and to offset the net derivative position with the related cash collateral. Total derivative assets and liabilities include these netting adjustments.

Change in Fair Values of Level 3 Financial Instruments

Changes in Level 3 Fair Value Measurements

The following table shows the change in the fair values of our Level 3 financial instruments for the three months ended March 31, 2015, and March 31, 2014. We mitigate the credit risk, interest rate risk, and risk of loss related to many of these Level 3 instruments by using securities and derivative positions classified as Level 1 or Level 2. Level 1 and Level 2 instruments are not included in the following table. Therefore, the gains or losses shown do not include the impact of our risk management activities.

in millions	Beginning of Period Balance		Gains (Losses) Included in Earnings			Purchases		Sales			Settlements		Transfers into Level 3 (d)			Transfers out of Level 3 (d)			End of Period Balance (f)		Unrealized Gains (Losses) Included in Earnings
March 31, 2015
Securities available for sale
Other securities	$	10		—			—		—			—		—			—		$	10		—
Other investments
Principal investments
Direct		102	$	13	(b)	$	1	$	(43	)		—		—			—			73	$	—
Indirect		302		17	(b)		1		(19	)		—		—			—			301		(8	) (b)
Equity and mezzanine investments
Direct		—		2	(b)		—		(2	)		—		—			—			—		2	(b)
Indirect		10		(1	) (b)		—		—			—		—			—			9		(1	) (b)
Derivative instruments (a)
Interest rate		13		2	(c)		—		—			—		—		$	(5	) (e)		10		—
Commodity		—		—			—		—			—		—			—			—		—
Credit		2		(3	) (c)		—		—		$	3		—			—			2		—
in millions	Beginning of Period Balance		Gains (Losses) Included in Earnings			Purchases		Sales			Settlements		Transfers into Level 3 (d)			Transfers out of Level 3 (d)			End of Period Balance (f)		Unrealized Gains (Losses) Included in Earnings
March 31, 2014
Other investments
Principal investments
Direct	$	141	$	4	(b)		—	$	(4	)		—		—			—		$	141	$	6	(b)
Indirect		413		20	(b)	$	1		(31	)		—		—			—			403		9	(b)
Equity and mezzanine investments
Direct		—		—			—		—			—		—			—			—		—
Indirect		23		(1	) (b)		—		(2	)				—			—			20		(1	) (b)
Derivative instruments (a)
Interest rate		25		1	(c)		2		(1	)		—	$	3	(e)	$	(8	) (e)		22		—
Commodity		—		—			—		—			—		—			—			—		—
Credit		3		(2	) (c)		—		—		$	2		—			—			3		—

(a) Amounts represent Level 3 derivative assets less Level 3 derivative liabilities.

(b) Realized and unrealized gains and losses on principal investments are reported in “net gains (losses) from principal investing” on the income statement. Realized and unrealized losses on private equity and mezzanine investments are reported in “other income” on the income statement.

(c) Realized and unrealized gains and losses on derivative instruments are reported in “corporate services income” and “other income” on the income statement.

(d) Our policy is to recognize transfers into and transfers out of Level 3 as of the end of the reporting period.

(e) Certain derivatives previously classified as Level 2 were transferred to Level 3 because Level 3 unobservable inputs became significant. Certain derivatives previously classified as Level 3 were transferred to Level 2 because Level 3 unobservable inputs became less significant.

(f) There were no issuances for the three-month periods ended March 31, 2015, and March 31, 2014.

Assets Measured at Fair Value on Nonrecurring Basis

Assets Measured at Fair Value on a Nonrecurring Basis

Certain assets and liabilities are measured at fair value on a nonrecurring basis in accordance with GAAP. The adjustments to fair value generally result from the application of accounting guidance that requires assets and liabilities to be recorded at the lower of cost or fair value, or assessed for impairment. The following table presents our assets measured at fair value on a nonrecurring basis at March 31, 2015, December 31, 2014, and March 31, 2014:

	March 31, 2015
in millions	Level 1		Level 2		Level 3		Total
ASSETS MEASURED ON A NONRECURRING BASIS
Impaired loans		—		—	$	15	$	15
Loans held for sale (a)		—		—		—		—
Accrued income and other assets		—		—		18		18
Total assets on a nonrecurring basis at fair value		—		—	$	33	$	33
	December 31, 2014
in millions	Level 1		Level 2		Level 3		Total
ASSETS MEASURED ON A NONRECURRING BASIS
Impaired loans		—		—	$	5	$	5
Loans held for sale (a)		—		—		—		—
Accrued income and other assets		—		—		13		13
Total assets on a nonrecurring basis at fair value		—		—	$	18	$	18
	March 31, 2014
in millions	Level 1		Level 2		Level 3		Total
ASSETS MEASURED ON A NONRECURRING BASIS
Impaired loans		—		—	$	1	$	1
Loans held for sale (a)		—		—		—		—
Accrued income and other assets		—		—		13		13
Total assets on a nonrecurring basis at fair value		—		—	$	14	$	14

(a) During the first quarter of 2015, we transferred $10 million of commercial and consumer loans and leases at their current fair value from held-for-sale status to the held-to-maturity portfolio, compared to $11 million during 2014, and $2 million during the first quarter of 2014.

Quantitative Information about Level 3 Fair Value Measurements

Quantitative Information about Level 3 Fair Value Measurements

The range and weighted-average of the significant unobservable inputs used to fair value our material Level 3 recurring and nonrecurring assets at March 31, 2015, December 31, 2014, and March 31, 2014, along with the valuation techniques used, are shown in the following table:

March 31, 2015	Fair Value of			Significant	Range
dollars in millions	Level 3 Assets		Valuation Technique	Unobservable Input	(Weighted-Average)
Recurring
Other investments — principal investments — direct:	$	73	Individual analysis of the condition of each investment
Debt instruments				EBITDA multiple		5.40 - 6.00 (5.50)
Equity instruments of private companies				EBITDA multiple (where applicable)		N/A (6.00)
				Revenue multiple (where applicable)		N/A (4.30)
Nonrecurring
Impaired loans		15	Fair value of underlying collateral	Discount		00.00 - 100.00% (36.00%)
Goodwill		1,057	Discounted cash flow and market data	Earnings multiple of peers		11.40 - 15.90 (12.92)
				Equity multiple of peers		1.20 - 1.22 (1.21)
				Control premium		10.00 - 30.00% (19.70%)
				Weighted-average cost of capital		13.00 - 14.00% (13.52%)
December 31, 2014 dollars in millions	Fair Value of Level 3 Assets		Valuation Technique	Significant Unobservable Input	Range (Weighted-Average)
Recurring
Other investments — principal investments — direct:	$	102	Individual analysis of the condition of each investment
Debt instruments				EBITDA multiple		5.40 - 6.00 (5.50)
Equity instruments of private companies				EBITDA multiple (where applicable)		5.50 - 6.20 (5.80)
				Revenue multiple (where applicable)		4.30 - 4.30 (4.30)
Nonrecurring
Impaired loans		5	Fair value of underlying collateral	Discount		10.00 - 64.00% (62.00%)
Goodwill		1,057	Discounted cash flow and market data	Earnings multiple of peers		11.40 - 15.90 (12.92)
				Equity multiple of peers		1.20 - 1.22 (1.21)
				Control premium		10.00 - 30.00% (19.70%)
				Weighted-average cost of capital		13.00 - 14.00% (13.52%)
March 31, 2014	Fair Value of			Significant	Range
dollars in millions	Level 3 Assets		Valuation Technique	Unobservable Input	(Weighted-Average)
Recurring
Other investments — principal investments — direct:	$	141	Individual analysis of the condition of each investment
Debt instruments				EBITDA multiple		5.40 - 6.00 (5.90)
Equity instruments of private companies				EBITDA multiple (where applicable)		4.90 - 10.00 (5.90)
				Revenue multiple (where applicable)		0.80 - 4.50 (4.10)
Nonrecurring
Impaired loans		1	Fair value of underlying collateral	Discount		0.00 - 80.00% (25.00%)
Goodwill		979	Discounted cash flow and market data	Earnings multiple of peers		10.10 - 14.40 (11.59)
				Equity multiple of peers		1.17 - 1.29 (1.24)
				Control premium		N/A (35.00 %)
				Weighted-average cost of capital		N/A (13.00%)

Fair Value Disclosures of Financial Instruments

Fair Value Disclosures of Financial Instruments

The levels in the fair value hierarchy ascribed to our financial instruments and the related carrying amounts at March 31, 2015, December 31, 2014 and March 31, 2014, are shown in the following table.

	March 31, 2015
			Fair Value
in millions	Carrying Amount		Level 1		Level 2		Level 3		Netting Adjustment			Total
ASSETS
Cash and short-term investments (a)	$	3,884	$	3,884		—		—		—		$	3,884
Trading account assets (b)		789		5	$	784		—		—			789
Securities available for sale (b)		13,120		23		13,087	$	10		—			13,120
Held-to-maturity securities (c)		5,005		—		5,003		—		—			5,003
Other investments (b)		730		1		346		383		—			730
Loans, net of allowance (d)		57,159		—		—		55,702		—			55,702
Loans held for sale (b)		1,649		—		—		1,649		—			1,649
Derivative assets (b)		731		164		1,625		13	$	(1,071	) (f)		731
LIABILITIES
Deposits with no stated maturity (a)	$	65,984		—	$	65,984		—		—		$	65,984
Time deposits (e)		5,638	$	488		5,210		—		—			5,698
Short-term borrowings (a)		1,125		—		1,125		—		—			1,125
Long-term debt (e)		8,713		8,559		549		—		—			9,108
Derivative liabilities (b)		825		138		1,274	$	1	$	(588	) (f)		825
	December 31, 2014
			Fair Value
in millions	Carrying Amount		Level 1		Level 2		Level 3		Netting Adjustment			Total
ASSETS
Cash and short-term investments (a)	$	4,922	$	4,922		—		—		—		$	4,922
Trading account assets (b)		750		2	$	748		—		—			750
Securities available for sale (b)		13,360		22		13,328	$	10		—			13,360
Held-to-maturity securities (c)		5,015		—		4,974		—		—			4,974
Other investments (b)		760		2		344		414		—			760
Loans, net of allowance (d)		56,587		—		—		54,993		—			54,993
Loans held for sale (b)		734		—		—		734		—			734
Derivative assets (b)		609		91		1,536		16	$	(1,034	) (f)		609
LIABILITIES
Deposits with no stated maturity (a)	$	66,135		—	$	66,135		—		—		$	66,135
Time deposits (e)		5,863	$	564		5,361		—		—			5,925
Short-term borrowings (a)		998		—		998		—		—			998
Long-term debt (e)		7,875		7,625		626		—		—			8,251
Derivative liabilities (b)		784		77		1,248	$	1	$	(542	) (f)		784
	March 31, 2014
			Fair Value
in millions	Carrying Amount		Level 1		Level 2		Level 3		Netting Adjustment			Total
ASSETS
Cash and short-term investments (a)	$	3,331	$	3,331		—		—		—		$	3,331
Trading account assets (b)		840		4	$	836		—		—			840
Securities available for sale (b)		12,359		21		12,338		—		—			12,359
Held-to-maturity securities (c)		4,826		—		4,733		—		—			4,733
Other investments (b)		899		—		335	$	564		—			899
Loans, net of allowance (d)		54,611		—		—		53,211		—			53,211
Loans held for sale (b)		401		—		—		401		—			401
Derivative assets (b)		427		51		1,063		26	$	(713	) (f)		427
LIABILITIES
Deposits with no stated maturity (a)	$	60,130		—	$	60,130		—		—		$	60,130
Time deposits (e)		7,136	$	617		6,599		—		—			7,216
Short-term borrowings (a)		1,181		3		1,178		—		—			1,181
Long-term debt (e)		7,712		7,610		459		—		—			8,069
Derivative liabilities (b)		408		43		812	$	1	$	(448	) (f)		408

Valuation Methods and Assumptions

(a) Fair value equals or approximates carrying amount. The fair value of deposits with no stated maturity does not take into consideration the value ascribed to core deposit intangibles.

(b) Information pertaining to our methodology for measuring the fair values of these assets and liabilities is included in the sections entitled “Qualitative Disclosures of Valuation Techniques” and “Assets Measured at Fair Value on a Nonrecurring Basis” in this note.

(c) Fair values of held-to-maturity securities are determined by using models that are based on security-specific details, as well as relevant industry and economic factors. The most significant of these inputs are quoted market prices, interest rate spreads on relevant benchmark securities, and certain prepayment assumptions. We review the valuations derived from the models to ensure they are reasonable and consistent with the values placed on similar securities traded in the secondary markets.

(d) The fair value of loans is based on the present value of the expected cash flows. The projected cash flows are based on the contractual terms of the loans, adjusted for prepayments and use of a discount rate based on the relative risk of the cash flows, taking into account the loan type, maturity of the loan, liquidity risk, servicing costs, and a required return on debt and capital. In addition, an incremental liquidity discount is applied to certain loans, using historical sales of loans during periods of similar economic conditions as a benchmark. The fair value of loans includes lease financing receivables at their aggregate carrying amount, which is equivalent to their fair value.

(e) Fair values of time deposits and long-term debt are based on discounted cash flows utilizing relevant market inputs.

(f) Netting adjustments represent the amounts recorded to convert our derivative assets and liabilities from a gross basis to a net basis in accordance with applicable accounting guidance. The net basis takes into account the impact of bilateral collateral and master netting agreements that allow us to settle all derivative contracts with a single counterparty on a net basis and to offset the net derivative position with the related cash collateral. Total derivative assets and liabilities include these netting adjustments.

Private Equity and Mezzanine Investments [Member]

Fair Value of Direct and Indirect Investments, Related Unfunded Commitments and Financial Support Provided

The following table presents the fair value of our indirect investments and related unfunded commitments at March 31, 2015. We did not provide any financial support to investees related to our direct and indirect investments for the three months ended March 31, 2015, and March 31, 2014.

March 31, 2015			Unfunded
in millions	Fair Value		Commitments
INVESTMENT TYPE
Indirect investments
Passive funds (a)	$	9	$	1
Co-managed funds (b)		—		—
Total	$	9	$	1

(a) We invest in passive funds, which are multi-investor private equity funds. These investments can never be redeemed. Instead, distributions are received through the liquidation of the underlying investments in the funds. Some funds have no restrictions on sale, while others require investors to remain in the fund until maturity. The funds will be liquidated over a period of one to four years. The purpose of KREEC’s funding is to allow funds to make additional investments and keep a certain market value threshold in the funds. KREEC is obligated to provide financial support, as all investors are required, to fund based on their ownership percentage, as noted in the Limited Partnership Agreements.

(b) We are a manager or co-manager of these funds, which have been written down to zero. These investments can never be redeemed. Instead, distributions are received through the liquidation of the underlying investments in the funds. In addition, we receive management fees. We can sell or transfer our interest in any of these funds with the written consent of a majority of the fund’s investors. In one instance, the other co-manager of the fund must consent to the sale or transfer of our interest in the fund. The funds will mature over a period of one to two years. The purpose of KREEC’s funding is to allow funds to make additional investments and keep a certain market value threshold in the funds. KREEC is obligated to provide financial support, as all investors are required, to fund based on their ownership percentage, as noted in the Limited Partnership Agreements.

Principal Investments [Member]

Fair Value of Direct and Indirect Investments, Related Unfunded Commitments and Financial Support Provided

The following table presents the fair value of our direct and indirect principal investments and related unfunded commitments at March 31, 2015, as well as financial support provided for the three months ended March 31, 2015, and March 31, 2014:

					Financial support provided
					Three months ended March 31,
	March 31, 2015				2015				2014
in millions	Fair Value		Unfunded Commitments		Funded Commitments		Funded Other		Funded Commitments		Funded Other
INVESTMENT TYPE
Direct investments (a)	$	74		—		—	$	1		—	$	1
Indirect investments (b)		301	$	57	$	2		—	$	2		—
Total	$	375	$	57	$	2	$	1	$	2	$	1

(a) Our direct investments consist of equity and debt investments directly in independent business enterprises. Operations of the business enterprises are handled by management of the portfolio company. The purpose of funding these enterprises is to provide financial support for business development and acquisition strategies. We infuse equity capital based on an initial contractual cash contribution and later from additional requests on behalf of the companies’ management.

(b) Our indirect investments consist of buyout funds, venture capital funds, and fund of funds. These investments are generally not redeemable. Instead, distributions are received through the liquidation of the underlying investments of the fund. An investment in any one of these funds typically can be sold only with the approval of the fund’s general partners. We estimate that the underlying investments of the funds will be liquidated over a period of one to nine years. The purpose of funding our capital commitments to these investments is to allow the funds to make additional follow-on investments and pay fund expenses until the fund dissolves. We, and all other investors in the fund, are obligated to fund the full amount of our respective capital commitments to the fund based on our and their respective ownership percentages, as noted in the applicable Limited Partnership Agreement.

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Securities - Available for Sale Securities (Unrealized Loss Position) (Detail) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014	Mar. 31, 2014
Schedule of Available-for-sale Securities [Line Items]
Held-to-maturity Securities, Gross unrealized losses	$ 30	$ 57	$ 102
Fair value less than 12 months, total temporarily impaired securities	2,405	4,028	8,693
Gross unrealized losses less than 12 months, total temporarily impaired securities	33	63	275
Fair value 12 months or longer, total temporarily impaired securities	4,072	5,006	880
Gross unrealized losses 12 months or longer, total temporarily impaired securities	74	131	45
Fair value, total temporarily impaired securities	6,477	9,034	9,573
Gross unrealized losses, total temporarily impaired securities	107	194	320
Other Mortgage-Backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Fair value, less than 12 months	39		1,153
Gross unrealized losses, less than 12 months			10
Fair value, 12 months or longer		78
Gross unrealized losses, 12 months or longer		1
Fair Value	39	78	1,153
Gross unrealized losses, Total		1	10
Collateralized Mortgage Obligations [Member]
Schedule of Available-for-sale Securities [Line Items]
Fair value, less than 12 months	1,722	3,019	4,401
Gross unrealized losses, less than 12 months	25	52	173
Fair value, 12 months or longer	2,722	2,932	678
Gross unrealized losses, 12 months or longer	52	84	35
Fair Value	4,444	5,951	5,079
Gross unrealized losses, Total	77	136	208
Held-to-maturity Securities, Fair Value less than 12 months	637	1,005	3,139
Held-to-maturity Securities, Gross unrealized losses, less than 12 months	8	11	92
Held-to-maturity Securities, Fair Value 12 months or longer	1,348	1,994	200
Held-to-maturity Securities, Gross unrealized losses, 12 months or longer	22	46	10
Held-to-maturity Securities, Fair Value	1,985	2,999	3,339
Held-to-maturity Securities, Gross unrealized losses	30	57	102
Other Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Fair value, less than 12 months	3	4
Fair value, 12 months or longer	2	2	2
Fair Value	5	6	2
Held-to-maturity Securities, Fair Value less than 12 months	4
Held-to-maturity Securities, Fair Value	$ 4

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Acquisitions and Discontinued Operations - Combined Assets and Liabilities of Discontinued Operations (Parenthetical) (Detail) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014	Mar. 31, 2014
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Unearned income on loans	$ 665	$ 682	$ 776
Maximum [Member] | Discontinued Operations [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Unearned income on loans	$ 1	$ 1	$ 1

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Contingent Liabilities and Guarantees - Additional Information (Detail) (USD $)	3 Months Ended
	Mar. 31, 2015 Guarantee
Commitments Contingencies And Guarantees [Line Items]
Weighted-average remaining term for outstanding commercial mortgage loans in years	7 years 6 months
Unpaid principal balance outstanding of loans sold	$ 5,100,000,000
Potential undiscounted future payments maximum limit	One-third of the principal balance of loans outstanding
Obligations under guarantees	200,000,000
Number of default guarantees	0
Written Put Options [Member]
Commitments Contingencies And Guarantees [Line Items]
Obligations under guarantees	128,000,000
Weighted average life of written put options	2 years
Return Guarantee Agreement with LIHTC Investors [Member]
Commitments Contingencies And Guarantees [Line Items]
Compliance period of property	15 years
Obligations under guarantees	4,000,000
Expiration of guarantees	Extend through 2018
Standby Letters of Credit [Member]
Commitments Contingencies And Guarantees [Line Items]
Remaining weighted-average life of standby letters of credit in years	3 years
Remaining actual life letters of credit in years	From less than one year to as many as 12 years
Obligations under guarantees	$ 64,000,000
Minimum [Member] | Low [Member]
Commitments Contingencies And Guarantees [Line Items]
Guarantee Obligations	0.00%
Minimum [Member] | Moderate [Member]
Commitments Contingencies And Guarantees [Line Items]
Guarantee Obligations	31.00%
Minimum [Member] | High [Member]
Commitments Contingencies And Guarantees [Line Items]
Guarantee Obligations	71.00%
Maximum [Member] | Low [Member]
Commitments Contingencies And Guarantees [Line Items]
Guarantee Obligations	30.00%
Maximum [Member] | Moderate [Member]
Commitments Contingencies And Guarantees [Line Items]
Guarantee Obligations	70.00%
Maximum [Member] | High [Member]
Commitments Contingencies And Guarantees [Line Items]
Guarantee Obligations	100.00%

XML

Fair Value Measurements - Assets Measured at Fair Value on Nonrecurring Basis (Detail) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014	Mar. 31, 2014
ASSETS MEASURED ON A NONRECURRING BASIS
Loans held for sale	$ 0	$ 0	$ 0
Nonrecurring [Member]
ASSETS MEASURED ON A NONRECURRING BASIS
Impaired loans	15	5	1
Loans held for sale	0	0	0
Accrued income and other assets	18	13	13
Total assets at fair value	33	18	14
Level 1 [Member] | Nonrecurring [Member]
ASSETS MEASURED ON A NONRECURRING BASIS
Loans held for sale	0	0	0
Level 2 [Member] | Nonrecurring [Member]
ASSETS MEASURED ON A NONRECURRING BASIS
Loans held for sale	0	0	0
Level 3 [Member] | Nonrecurring [Member]
ASSETS MEASURED ON A NONRECURRING BASIS
Impaired loans	15	5	1
Loans held for sale	0	0	0
Accrued income and other assets	18	13	13
Total assets at fair value	$ 33	$ 18	$ 14

XML

Derivatives and Hedging Activities - After-Tax Change in AOCI Resulting from Cash Flow Hedges (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract]
December 31, 2014	$ (8)
2015 Hedging Activity	45
Reclassification of Gains to Net Income	(13)
March 31, 2015	$ 24

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Asset Quality - Post-Modification Outstanding Recorded Investment by Concession Type for Our Commercial Accruing and Nonaccruing TDRs (Parenthetical) (Detail) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014	Mar. 31, 2014
Receivables [Abstract]
Additional funds to borrowers related to lending related commitments	$ 5	$ 5	$ 2

XML

Acquisitions and Discontinued Operations - Consolidated Trusts' Assets and Liabilities at Fair Value and Contractual Values (Detail) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014	Mar. 31, 2014
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Trust loans accounted for at fair value	$ 187	$ 191	$ 143
Discontinued Operations [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Trust fair value of securities			1,796
Discontinued Operations [Member] | Trust [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Trust loans accounted for at fair value			1,893
Trust fair value of other assets			19
Discontinued Operations [Member] | Trust [Member] | Education Lending [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Portfolio contractual amount of loans	186	192	136
Trust contractual amount of loans			1,889
Trust contractual amount of other assets			19
Trust contractual amount of securities			1,904
Trust contractual amount of other liabilities			20
Portfolio fair value of loans	187	191	143
Trust loans accounted for at fair value			1,893
Trust fair value of other assets			19
Trust fair value of securities			1,796
Trust fair value of other liabilities			$ 20

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Fair Value Measurements - Quantitative Information about Level 3 Fair Value Measurements (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Dec. 31, 2014	Mar. 31, 2014
Fair Value, Option, Quantitative Disclosures [Line Items]
Other investments	730	$ 760	$ 899
Goodwill	1,057	1,057	979
Nonrecurring [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Impaired loans	15	5	1
Level 3 [Member] | Recurring [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Other investments	73	102	141
Level 3 [Member] | Nonrecurring [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Impaired loans	15	5	1
Goodwill	1,057	$ 1,057	$ 979
Level 3 [Member] | EBITDA Multiple [Member] | Recurring [Member] | Minimum [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Percentage of significant unobservable inputs	5.40%	5.40%	5.40%
Level 3 [Member] | EBITDA Multiple [Member] | Recurring [Member] | Maximum [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Percentage of significant unobservable inputs	6.00%	6.00%	6.00%
Level 3 [Member] | EBITDA Multiple [Member] | Recurring [Member] | Weighted Average [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Percentage of significant unobservable inputs	5.50%	5.50%	5.90%
Level 3 [Member] | EBITDA Multiple (Where Applicable) [Member] | Recurring [Member] | Minimum [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Percentage of significant unobservable inputs		5.50%	4.90%
Level 3 [Member] | EBITDA Multiple (Where Applicable) [Member] | Recurring [Member] | Maximum [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Percentage of significant unobservable inputs		6.20%	10.00%
Level 3 [Member] | EBITDA Multiple (Where Applicable) [Member] | Recurring [Member] | Weighted Average [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Percentage of significant unobservable inputs	5.80%	5.80%	5.90%
Level 3 [Member] | Revenue Multiple (Where Applicable) [Member] | Recurring [Member] | Minimum [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Percentage of significant unobservable inputs		4.30%	0.80%
Level 3 [Member] | Revenue Multiple (Where Applicable) [Member] | Recurring [Member] | Maximum [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Percentage of significant unobservable inputs		4.30%	4.50%
Level 3 [Member] | Revenue Multiple (Where Applicable) [Member] | Recurring [Member] | Weighted Average [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Percentage of significant unobservable inputs	4.30%	4.30%	4.10%
Level 3 [Member] | Discount [Member] | Nonrecurring [Member] | Minimum [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Percentage of significant unobservable inputs	0.00%	10.00%	0.00%
Level 3 [Member] | Discount [Member] | Nonrecurring [Member] | Maximum [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Percentage of significant unobservable inputs	100.00%	64.00%	80.00%
Level 3 [Member] | Discount [Member] | Nonrecurring [Member] | Weighted Average [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Percentage of significant unobservable inputs	36.00%	62.00%	25.00%
Level 3 [Member] | Earnings Multiple of Peers [Member] | Nonrecurring [Member] | Minimum [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Significant unobservable input	11.40%	11.40%	10.10%
Level 3 [Member] | Earnings Multiple of Peers [Member] | Nonrecurring [Member] | Maximum [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Significant unobservable input	15.90%	15.90%	14.40%
Level 3 [Member] | Earnings Multiple of Peers [Member] | Nonrecurring [Member] | Weighted Average [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Significant unobservable input	12.92%	12.92%	11.59%
Level 3 [Member] | Equity Multiple of Peers [Member] | Nonrecurring [Member] | Minimum [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Significant unobservable input	1.20%	1.20%	1.17%
Level 3 [Member] | Equity Multiple of Peers [Member] | Nonrecurring [Member] | Maximum [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Significant unobservable input	1.22%	1.22%	1.29%
Level 3 [Member] | Equity Multiple of Peers [Member] | Nonrecurring [Member] | Weighted Average [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Significant unobservable input	1.21%	1.21%	1.24%
Level 3 [Member] | Control Premium [Member] | Nonrecurring [Member] | Minimum [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Percentage of significant unobservable inputs	10.00%	10.00%
Level 3 [Member] | Control Premium [Member] | Nonrecurring [Member] | Maximum [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Percentage of significant unobservable inputs	30.00%	30.00%
Level 3 [Member] | Control Premium [Member] | Nonrecurring [Member] | Weighted Average [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Percentage of significant unobservable inputs	19.70%	19.70%	35.00%
Level 3 [Member] | Weighted-average Cost of Capital [Member] | Nonrecurring [Member] | Minimum [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Percentage of significant unobservable inputs	13.00%	13.00%
Level 3 [Member] | Weighted-average Cost of Capital [Member] | Nonrecurring [Member] | Maximum [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Percentage of significant unobservable inputs	14.00%	14.00%
Level 3 [Member] | Weighted-average Cost of Capital [Member] | Nonrecurring [Member] | Weighted Average [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Percentage of significant unobservable inputs	13.52%	13.52%	13.00%
Level 3 [Member] | Impaired Loans [Member] | Nonrecurring [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Fair value measurement, valuation technique	Fair value of underlying collateral
Level 3 [Member] | Goodwill [Member] | Nonrecurring [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Fair value measurement, valuation technique	Discounted cash flow and market data
Level 3 [Member] | Other Investments [Member] | Recurring [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Fair value measurement, valuation technique	Individual analysis of the condition of each investment

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Derivatives and Hedging Activities - Fair Values, Volume of Activity and Gain (Loss) Information Related to Derivative Instruments (Detail) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014	Mar. 31, 2014
Derivatives, Fair Value [Line Items]
Notional Amount	$ 66,737	$ 65,317	$ 66,102
Derivative Assets	585	454	366
Derivative Liabilities	581	543	83
Derivative Asset, Netting adjustments	(1,071)	(1,034)	(713)
Derivative Liability, Netting adjustments	(588)	(542)	(448)
Derivatives Designated as Hedging Instruments [Member]
Derivatives, Fair Value [Line Items]
Notional Amount	17,141	15,466	14,791
Derivative assets	335	280	282
Derivative liabilities	14	26	41
Derivatives Not Designated as Hedging Instruments [Member]
Derivatives, Fair Value [Line Items]
Notional Amount	49,596	49,851	51,311
Derivative assets	1,467	1,363	858
Derivative liabilities	1,399	1,300	815
Interest Rate [Member] | Derivatives Designated as Hedging Instruments [Member]
Derivatives, Fair Value [Line Items]
Notional Amount	16,802	15,095	14,479
Derivative assets	315	272	277
Derivative liabilities	14	26	40
Interest Rate [Member] | Derivatives Not Designated as Hedging Instruments [Member]
Derivatives, Fair Value [Line Items]
Notional Amount	41,913	43,771	44,156
Derivative assets	728	665	688
Derivative liabilities	678	618	647
Foreign Exchange [Member] | Derivatives Designated as Hedging Instruments [Member]
Derivatives, Fair Value [Line Items]
Notional Amount	339	371	312
Derivative assets	20	8	5
Derivative liabilities			1
Foreign Exchange [Member] | Derivatives Not Designated as Hedging Instruments [Member]
Derivatives, Fair Value [Line Items]
Notional Amount	5,544	4,024	4,653
Derivative assets	152	85	55
Derivative liabilities	147	81	51
Commodity [Member] | Derivatives Not Designated as Hedging Instruments [Member]
Derivatives, Fair Value [Line Items]
Notional Amount	1,553	1,544	1,597
Derivative assets	582	608	110
Derivative liabilities	567	594	105
Credit [Member] | Derivatives Not Designated as Hedging Instruments [Member]
Derivatives, Fair Value [Line Items]
Notional Amount	586	512	905
Derivative assets	5	5	5
Derivative liabilities	7	7	12
Net Derivatives [Member]
Derivatives, Fair Value [Line Items]
Notional Amount	66,737	65,317	66,102
Derivative Assets	731	609	427
Derivative Liabilities	825	784	408
Other Collateral [Member]
Derivatives, Fair Value [Line Items]
Derivative Assets	(146)	(155)	(61)
Derivative Liabilities	$ (244)	$ (241)	$ (325)

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Securities - Additional Information (Detail) (USD $)	3 Months Ended
	Mar. 31, 2015 MortgageLoan	Mar. 31, 2014
Schedule of Available-for-sale Securities [Line Items]
Gross unrealized loss attributable to collateralized mortgage obligations	$ 77,000,000
Number of fixed rate collateralized mortgage obligations	56
Weighted-average maturity collateralized mortgage, in years	3 years 10 months 24 days
Impairment recognized in earnings		0
Pledged available for sale and held-to-maturity securities	8,000,000,000
Maximum [Member]
Schedule of Available-for-sale Securities [Line Items]
Impairment recognized in earnings	$ 1,000,000

XML

Derivatives and Hedging Activities - Pre-Tax Net Gains (Losses) on Fair Value Hedges (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Derivatives, Fair Value [Line Items]
Net Gains (Losses) on Derivative	$ 70	$ 33
Net Gains (Losses) on Hedged Item	(41)
Other Income [Member] | Interest Rate [Member]
Derivatives, Fair Value [Line Items]
Net Gains (Losses) on Derivative	41
Net Gains (Losses) on Hedged Item	(41)
Interest Expense [Member] | Interest Rate [Member]
Derivatives, Fair Value [Line Items]
Net Gains (Losses) on Derivative	$ 29	$ 33

XML

Fair Value Measurements - Fair Value Disclosures of Financial Instruments (Detail) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Mar. 31, 2014	Dec. 31, 2013
ASSETS
Trading account assets	$ 789	$ 750		$ 840
Securities available for sale	13,120	13,360		12,359
Held-to-maturity securities	5,003	4,974		4,733
Held-to-maturity securities	5,005	5,015		4,826
Other investments	730	760		899
Loans, net of allowance	187	191		143
Loans, net of allowance	57,159	56,587		54,611
Loans held for sale	0	0		0
Loans held for sale	1,649	734	784	401	611
Derivative assets	731	609		427
LIABILITIES
Long-term debt	8,713	7,875		7,712
Derivative liabilities	825	784		408
Carrying Amount [Member]
ASSETS
Cash and short-term investments	3,884	4,922		3,331
Trading account assets	789	750		840
Securities available for sale	13,120	13,360		12,359
Held-to-maturity securities	5,005	5,015		4,826
Other investments	730	760		899
Loans, net of allowance	57,159	56,587		54,611
Loans held for sale	1,649	734		401
Derivative assets	731	609		427
LIABILITIES
Deposits with no stated maturity	65,984	66,135		60,130
Time deposits	5,638	5,863		7,136
Short-term borrowings	1,125	998		1,181
Long-term debt	8,713	7,875		7,712
Derivative liabilities	825	784		408
Fair Value [Member]
ASSETS
Cash and short-term investments	3,884	4,922		3,331
Trading account assets	789	750		840
Securities available for sale	13,120	13,360		12,359
Held-to-maturity securities	5,003	4,974		4,733
Other investments	730	760		899
Loans, net of allowance	55,702	54,993		53,211
Loans held for sale	1,649	734		401
Derivative assets	731	609		427
LIABILITIES
Deposits with no stated maturity	65,984	66,135		60,130
Time deposits	5,698	5,925		7,216
Short-term borrowings	1,125	998		1,181
Long-term debt	9,108	8,251		8,069
Derivative liabilities	825	784		408
Fair Value [Member] | Level 1 [Member]
ASSETS
Cash and short-term investments	3,884	4,922		3,331
Trading account assets	5	2		4
Securities available for sale	23	22		21
Other investments	1	2
Derivative assets	164	91		51
LIABILITIES
Time deposits	488	564		617
Short-term borrowings				3
Long-term debt	8,559	7,625		7,610
Derivative liabilities	138	77		43
Fair Value [Member] | Level 2 [Member]
ASSETS
Trading account assets	784	748		836
Securities available for sale	13,087	13,328		12,338
Held-to-maturity securities	5,003	4,974		4,733
Other investments	346	344		335
Derivative assets	1,625	1,536		1,063
LIABILITIES
Deposits with no stated maturity	65,984	66,135		60,130
Time deposits	5,210	5,361		6,599
Short-term borrowings	1,125	998		1,178
Long-term debt	549	626		459
Derivative liabilities	1,274	1,248		812
Fair Value [Member] | Level 3 [Member]
ASSETS
Securities available for sale	10	10
Other investments	383	414		564
Loans, net of allowance	55,702	54,993		53,211
Loans held for sale	1,649	734		401
Derivative assets	13	16		26
LIABILITIES
Derivative liabilities	1	1		1
Fair Value [Member] | Netting Adjustment [Member]
ASSETS
Derivative assets	(1,071)
Derivative assets, netting adjustment		(1,034)		(713)
LIABILITIES
Derivative liabilities	(588)
Derivative liabilities, netting adjustment		(542)		(448)
Derivative liabilities, netting adjustment		$ (542)		$ (448)

XML

Fair Value Measurements - Change in Fair Values of Level 3 Financial Instruments (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Securities Available for Sale [Member] | Other Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Beginning Balance			$ 10
Ending Balance	10		10
Other Investments [Member] | Principal Investments Direct [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Beginning Balance	102	141
Gains (Losses) Included in Earnings	13	4
Purchases	1
Sales	(43)	(4)
Ending Balance	73	141
Unrealized Gains (Losses) Included in Earnings		6
Other Investments [Member] | Principal Investments Indirect [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Beginning Balance	302	413
Gains (Losses) Included in Earnings	17	20
Purchases	1	1
Sales	(19)	(31)
Ending Balance	301	403
Unrealized Gains (Losses) Included in Earnings	(8)	9
Other Investments [Member] | Equity and Mezzanine Investments Direct [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Gains (Losses) Included in Earnings	2
Sales	(2)
Unrealized Gains (Losses) Included in Earnings	2
Other Investments [Member] | Equity and Mezzanine Investments Indirect [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Beginning Balance	10	23
Gains (Losses) Included in Earnings		(1)
Sales		(2)
Ending Balance	9	20
Unrealized Gains (Losses) Included in Earnings	(1)	(1)
Interest Rate [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Beginning Balance	13	25
Gains (Losses) Included in Earnings	2	1
Purchases		2
Sales		(1)
Transfers into Level 3		3
Transfers out of Level 3	(5)	(8)
Ending Balance	10	22
Credit [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Beginning Balance	2	3
Gains (Losses) Included in Earnings	(3)	(2)
Settlements	3	2
Ending Balance	$ 2	$ 3

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Contingent Liabilities and Guarantees

3 Months Ended

Mar. 31, 2015

Commitments and Contingencies Disclosure [Abstract]

Contingent Liabilities and Guarantees

15. Contingent Liabilities and Guarantees

Legal Proceedings

See Note 20 (“Commitments, Contingent Liabilities and Guarantees”) under the heading “Legal Proceedings” on page 206 of our 2014 Form 10-K for a description of a proceeding styled In re: Checking Account Overdraft Litigation.

Other litigation. From time to time, in the ordinary course of business, we and our subsidiaries are subject to various other litigation, investigations, and administrative proceedings. Private, civil litigations may range from individual actions involving a single plaintiff to putative class action lawsuits with potentially thousands of class members. Investigations may involve both formal and informal proceedings, by both government agencies and self-regulatory bodies. These other matters may involve claims for substantial monetary relief. At times, these matters may present novel claims or legal theories. Due to the complex nature of these various other matters, it may be years before some matters are resolved. While it is impossible to ascertain the ultimate resolution or range of financial liability, based on information presently known to us, we do not believe there is any other matter to which we are a party, or involving any of our properties that, individually or in the aggregate, would reasonably be expected to have a material adverse effect on our financial condition. We continually monitor and reassess the potential materiality of these other litigation matters. We note, however, that in light of the inherent uncertainty in legal proceedings there can be no assurance that the ultimate resolution will not exceed established reserves. As a result, the outcome of a particular matter, or a combination of matters, may be material to our results of operations for a particular period, depending upon the size of the loss or our income for that particular period.

Guarantees

We are a guarantor in various agreements with third parties. The following table shows the types of guarantees that we had outstanding at March 31, 2015. Information pertaining to the basis for determining the liabilities recorded in connection with these guarantees is included in Note 1 (“Summary of Significant Accounting Policies”) under the heading “Guarantees” beginning on page 124 of our 2014 Form 10-K.

March 31, 2015 in millions	Maximum Potential Undiscounted Future Payments		Liability Recorded
Financial guarantees:
Standby letters of credit	$	11,426	$	64
Recourse agreement with FNMA		1,547		4
Return guarantee agreement with LIHTC investors		4		4
Written put options (a)		2,139		128
Total	$	15,116	$	200

(a) The maximum potential undiscounted future payments represent notional amounts of derivatives qualifying as guarantees.

We determine the payment/performance risk associated with each type of guarantee described below based on the probability that we could be required to make the maximum potential undiscounted future payments shown in the preceding table. We use a scale of low (0-30% probability of payment), moderate (31-70% probability of payment), or high (71-100% probability of payment) to assess the payment/performance risk, and have determined that the payment/performance risk associated with each type of guarantee outstanding at March 31, 2015, is low.

Standby letters of credit. KeyBank issues standby letters of credit to address clients’ financing needs. These instruments obligate us to pay a specified third party when a client fails to repay an outstanding loan or debt instrument or fails to perform some contractual nonfinancial obligation. Any amounts drawn under standby letters of credit are treated as loans to the client; they bear interest (generally at variable rates) and pose the same credit risk to us as a loan. At March 31, 2015, our standby letters of credit had a remaining weighted-average life of 3 years, with remaining actual lives ranging from less than one year to as many as 12 years.

Recourse agreement with FNMA. We participate as a lender in the FNMA Delegated Underwriting and Servicing program. FNMA delegates responsibility for originating, underwriting, and servicing mortgages, and we assume a limited portion of the risk of loss during the remaining term on each commercial mortgage loan that we sell to FNMA. We maintain a reserve for such potential losses in an amount that we believe approximates the fair value of our liability. At March 31, 2015, the outstanding commercial mortgage loans in this program had a weighted-average remaining term of 7.5 years, and the unpaid principal balance outstanding of loans sold by us as a participant was $5.1 billion. As shown in the preceding table, the maximum potential amount of undiscounted future payments that we could be required to make under this program is equal to approximately one-third of the principal balance of loans outstanding at March 31, 2015. If we are required to make a payment, we would have an interest in the collateral underlying the related commercial mortgage loan; any loss we incur could be offset by the amount of any recovery from the collateral.

Return guarantee agreement with LIHTC investors. KAHC, a subsidiary of KeyBank, offered limited partnership interests to qualified investors. Partnerships formed by KAHC invested in low-income residential rental properties that qualify for federal low-income housing tax credits under Section 42 of the Internal Revenue Code. In certain partnerships, investors paid a fee to KAHC for a guaranteed return that is based on the financial performance of the property and the property’s confirmed LIHTC status throughout a 15-year compliance period. Typically, KAHC fulfills these guaranteed returns by distributing tax credits and deductions associated with the specific properties. If KAHC defaults on its obligation to provide the guaranteed return, KeyBank is obligated to make any necessary payments to investors. No recourse or collateral is available to offset our guarantee obligation other than the underlying income streams from the properties and the residual value of the operating partnership interests.

As shown in the previous table, KAHC maintained a reserve in the amount of $4 million at March 31, 2015, which is sufficient to cover estimated future obligations under the guarantees. The maximum exposure to loss reflected in the table represents undiscounted future payments due to investors for the return on and of their investments.

These guarantees have expiration dates that extend through 2018, but KAHC has not formed any new partnerships under this program since October 2003. Additional information regarding these partnerships is included in Note 9 (“Variable Interest Entities”).

Written put options. In the ordinary course of business, we “write” put options for clients that wish to mitigate their exposure to changes in interest rates and commodity prices. At March 31, 2015, our written put options had an average life of 2 years. These instruments are considered to be guarantees, as we are required to make payments to the counterparty (the client) based on changes in an underlying variable that is related to an asset, a liability, or an equity security that the client holds. We are obligated to pay the client if the applicable benchmark interest rate or commodity price is above or below a specified level (known as the “strike rate”). These written put options are accounted for as derivatives at fair value, as further discussed in Note 7 (“Derivatives and Hedging Activities”). We mitigate our potential future payment obligations by entering into offsetting positions with third parties.

Written put options where the counterparty is a broker-dealer or bank are accounted for as derivatives at fair value but are not considered guarantees since these counterparties typically do not hold the underlying instruments. In addition, we are a purchaser and seller of credit derivatives, which are further discussed in Note 7.

Default guarantees. Some lines of business participate in guarantees that obligate us to perform if the debtor (typically a client) fails to satisfy all of its payment obligations to third parties. We generally undertake these guarantees for one of two possible reasons: (i) either the risk profile of the debtor should provide an investment return, or (ii) we are supporting our underlying investment in the debtor. We do not hold collateral for the default guarantees. If we were required to make a payment under a guarantee, we would receive a pro rata share should the third party collect some or all of the amounts due from the debtor. At March 31, 2015, we did not have any default guarantees.

Other Off-Balance Sheet Risk

Other off-balance sheet risk stems from financial instruments that do not meet the definition of a guarantee as specified in the applicable accounting guidance, and from other relationships.

Indemnifications provided in the ordinary course of business. We provide certain indemnifications, primarily through representations and warranties in contracts that we execute in the ordinary course of business in connection with loan and lease sales and other ongoing activities, as well as in connection with purchases and sales of businesses. We maintain reserves, when appropriate, with respect to liability that reasonably could arise as a result of these indemnities.

Intercompany guarantees. KeyCorp, KeyBank, and certain of our affiliates are parties to various guarantees that facilitate the ongoing business activities of other affiliates. These business activities encompass issuing debt, assuming certain lease and insurance obligations, purchasing or issuing investments and securities, and engaging in certain leasing transactions involving clients.

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Loans and Loans Held for Sale - Summary of Changes in Loans Held for Sale (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Dec. 31, 2014	Mar. 31, 2014
Loans Receivables [Abstract]
Balance at beginning of the period	$ 734	$ 784	$ 611
New originations	2,130	2,465	645
Transfers from (to) held to maturity, net	10	2	3
Loan sales	(1,204)	(2,516)	(596)
Loan draws (payments), net	(21)	(1)	(262)
Balance at end of period	$ 1,649	$ 734	$ 401

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Contingent Liabilities and Guarantees (Tables)

3 Months Ended

Mar. 31, 2015

Commitments and Contingencies Disclosure [Abstract]

Guarantees

The following table shows the types of guarantees that we had outstanding at March 31, 2015. Information pertaining to the basis for determining the liabilities recorded in connection with these guarantees is included in Note 1 (“Summary of Significant Accounting Policies”) under the heading “Guarantees” beginning on page 124 of our 2014 Form 10-K.

March 31, 2015 in millions	Maximum Potential Undiscounted Future Payments		Liability Recorded
Financial guarantees:
Standby letters of credit	$	11,426	$	64
Recourse agreement with FNMA		1,547		4
Return guarantee agreement with LIHTC investors		4		4
Written put options (a)		2,139		128
Total	$	15,116	$	200

(a) The maximum potential undiscounted future payments represent notional amounts of derivatives qualifying as guarantees.

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Fair Value Measurements - Additional Information (Detail) (USD $)	3 Months Ended
	Mar. 31, 2015	Dec. 31, 2014	Mar. 31, 2014
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Loans held for sale adjusted to fair value	$ 0	$ 0	$ 0
Fair value of OREO property re-evaluated period	90 days
Loan, net of allowance	57,159,000,000	56,587,000,000	54,611,000,000
Loans in portfolio	187,000,000
Average maturity of short-term financial instruments	Less than six months
Residential Real Estate Mortgage Loans [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Loan, net of allowance	2,200,000,000	2,200,000,000	2,200,000,000
Fair Value [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Loans held for sale adjusted to fair value	1,649,000,000	734,000,000	401,000,000
Fair Value [Member] | Discontinued Operations [Member] | Education Lending [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Loan, net of allowance	2,000,000,000	1,800,000,000	1,900,000,000
Loans in portfolio	187,000,000	191,000,000	143,000,000
Loans in the trusts			1,900,000,000
Securities issued by the education lending securitization trusts			1,800,000,000
Carrying Amount [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Loan, net of allowance	57,159,000,000	56,587,000,000	54,611,000,000
Carrying Amount [Member] | Discontinued Operations [Member] | Education Lending [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Loan, net of allowance	$ 1,700,000,000	$ 2,100,000,000	$ 2,300,000,000

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Mortgage Servicing Assets - Schedule of Range and Weighted-Average of Significant Unobservable Inputs (Detail) (Discounted Cash Flow [Member], USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Servicing Assets at Fair Value [Line Items]
Prepayment speed	4.80%	4.90%
Expected defaults	1.80%	2.00%
Residual cash flows discount rate	7.80%	7.80%
Escrow earn rate	1.90%	1.80%
Servicing cost	$ 1,059,000,000	$ 963,000,000
Loan assumption rate	1.43%	1.58%
Percentage late	0.33%	0.33%
Minimum [Member]
Servicing Assets at Fair Value [Line Items]
Prepayment speed	1.60%	1.90%
Expected defaults	1.00%	1.00%
Residual cash flows discount rate	7.00%	7.00%
Escrow earn rate	0.70%	0.40%
Servicing cost	150,000,000	150,000,000
Loan assumption rate	0.20%	0.20%
Percentage late	0.00%	0.00%
Maximum [Member]
Servicing Assets at Fair Value [Line Items]
Prepayment speed	13.10%	11.30%
Expected defaults	3.00%	3.00%
Residual cash flows discount rate	15.00%	14.00%
Escrow earn rate	3.10%	3.10%
Servicing cost	$ 2,735,000,000	$ 2,600,000,000
Loan assumption rate	3.00%	3.00%
Percentage late	2.00%	2.00%

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Variable Interest Entities (Tables)

3 Months Ended

Mar. 31, 2015

Equity Method Investments and Joint Ventures [Abstract]

Variable Interest Entities Information

Further information regarding these education loan securitization trusts is provided in Note 11 (“Acquisitions and Discontinued Operations”) under the heading “Education lending.”

	Consolidated VIEs				Unconsolidated VIEs
	Total		Total		Total		Total		Maximum
in millions	Assets		Liabilities		Assets		Liabilities		Exposure to Loss
March 31, 2015
LIHTC funds	$	1	$	2	$	55		—		—
LIHTC investments		N/A		N/A		1,355	$	4	$	509
December 31, 2014
LIHTC funds	$	1	$	1	$	55		—		—
LIHTC investments		N/A		N/A		1,234	$	4	$	521
March 31, 2014
LIHTC funds	$	15	$	15	$	97		—		—
Education loan securitization trusts		1,912		1,816		N/A		N/A		N/A
LIHTC investments		N/A		N/A		1,595	$	5	$	492

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Asset Quality - Nonperforming Assets and Past Due Loans (Parenthetical) (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Dec. 31, 2014	Mar. 31, 2014
Financing Receivable, Recorded Investment, Past Due [Line Items]
Purchased credit impaired loans	$ 12	$ 13	$ 16
Restructured loans	18	17	15
Residential Mortgage [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Carrying value of foreclosed residential real estate	119
Residential Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Carrying value of foreclosed residential real estate	$ 17

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Asset Quality - Changes in Liability for Credit Losses on Lending Related Commitments (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Receivables [Abstract]
Balance at beginning of period	$ 35	$ 37
Provision (credit) for losses on lending-related commitments	6	(2)
Balance at end of period	$ 41	$ 35

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Acquisitions and Discontinued Operations - Change in Fair Values of Level 3 Consolidated Education Loan Securitization Trusts and Portfolio Loans (Detail) (Discontinued Operations [Member], Education Lending [Member], USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Portfolio Student Loans [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Beginning Balance	$ 191	$ 147
Gains (losses) recognized in earnings	3
Purchases	0	0
Sales	0	0
Settlements	(7)	(4)
Ending Balance	187	143
Trust Student Loans [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Beginning Balance		1,960
Gains (losses) recognized in earnings		2
Purchases	0	0
Sales	0	0
Settlements		(69)
Ending Balance		1,893
Trust Other Assets [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Beginning Balance		20
Purchases	0	0
Sales	0	0
Settlements		(1)
Ending Balance		19
Trust Securities [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Beginning Balance		1,834
Gains (losses) recognized in earnings		16
Purchases	0	0
Sales	0	0
Settlements		(54)
Ending Balance		1,796
Trust Other Liabilities [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Beginning Balance		20
Purchases	0	0
Sales	0	0
Ending Balance		$ 20

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Asset Quality - Credit Risk Profile Based on Payment Activity (Detail) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014	Mar. 31, 2014
Financing Receivable, Recorded Investment [Line Items]
Credit risk profile based on payment	$ 57,953	$ 57,381	$ 55,445
Consumer Other - Key Community Bank [Member]
Financing Receivable, Recorded Investment [Line Items]
Credit risk profile based on payment	1,547	1,560	1,436
Consumer Other - Key Community Bank [Member] | Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Credit risk profile based on payment	1,545		1,434
Consumer Other - Key Community Bank [Member] | Nonperforming [Member]
Financing Receivable, Recorded Investment [Line Items]
Credit risk profile based on payment	2		2
Consumer Credit Card Financing Receivable [Member]
Financing Receivable, Recorded Investment [Line Items]
Credit risk profile based on payment	727	754	698
Consumer Credit Card Financing Receivable [Member] | Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Credit risk profile based on payment	725		697
Consumer Credit Card Financing Receivable [Member] | Nonperforming [Member]
Financing Receivable, Recorded Investment [Line Items]
Credit risk profile based on payment	2		1
Consumer Marine [Member]
Financing Receivable, Recorded Investment [Line Items]
Credit risk profile based on payment	730	779	965
Consumer Marine [Member] | Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Credit risk profile based on payment	721		950
Consumer Marine [Member] | Nonperforming [Member]
Financing Receivable, Recorded Investment [Line Items]
Credit risk profile based on payment	9		15
Consumer Others [Member]
Financing Receivable, Recorded Investment [Line Items]
Credit risk profile based on payment	44	49	63
Consumer Others [Member] | Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Credit risk profile based on payment	43		62
Consumer Others [Member] | Nonperforming [Member]
Financing Receivable, Recorded Investment [Line Items]
Credit risk profile based on payment	1		1
Consumer Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Credit risk profile based on payment	15,802	16,000	15,941
Consumer Loans [Member] | Credit Risk Profile [Member]
Financing Receivable, Recorded Investment [Line Items]
Credit risk profile based on payment	3,048		3,162
Consumer Loans [Member] | Performing [Member] | Credit Risk Profile [Member]
Financing Receivable, Recorded Investment [Line Items]
Credit risk profile based on payment	3,034		3,143
Consumer Loans [Member] | Nonperforming [Member] | Credit Risk Profile [Member]
Financing Receivable, Recorded Investment [Line Items]
Credit risk profile based on payment	$ 14		$ 19

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Loans and Loans Held for Sale - Loans by Category (Detail) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014	Mar. 31, 2014
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial, financial and agricultural	$ 28,783	$ 27,982	$ 26,224
Commercial real estate:
Commercial mortgage	8,162	8,047	7,877
Construction	1,142	1,100	1,007
Total commercial real estate loans	9,304	9,147	8,884
Commercial lease financing	4,064	4,252	4,396
Total commercial loans	42,151	41,381	39,504
Residential - prime loans:
Real estate - residential mortgage	2,231	2,225	2,183
Home equity loans	10,523	10,633	10,596
Total residential - prime loans	12,754	12,858	12,779
Credit cards	727	754	698
Consumer other	774	828	1,028
Total consumer loans	15,802	16,000	15,941
Total Loans	57,953	57,381	55,445
Key Community Bank [Member]
Residential - prime loans:
Home equity loans	10,270	10,366	10,281
Consumer other	1,547	1,560	1,436
Other loans [Member]
Residential - prime loans:
Home equity loans	253	267	315
Consumer other	44	49	63
Marine loans [Member]
Residential - prime loans:
Consumer other	$ 730	$ 779	$ 965

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Consolidated Statements of Changes in Equity (Unaudited) (Parenthetical) (USD $) In Millions, except Per Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Income taxes effect on net unrealized (losses) gains on securities available for sale	$ 33	$ 17
Income taxes effect on net unrealized gains (losses) on derivative financial instruments	19	(1)
Income taxes effect on foreign currency translation adjustments	(8)	(4)
Income taxes effect on net pension and postretirement benefit costs	1	2
Cash dividends declared on common shares, per share	$ 0.065	$ 0.055
Retained Earnings [Member]
Cash dividends declared on common shares, per share	$ 0.065	$ 0.055
Accumulated Other Comprehensive Income (Loss) [Member]
Income taxes effect on net unrealized (losses) gains on securities available for sale	33	17
Income taxes effect on net unrealized gains (losses) on derivative financial instruments	19	(1)
Income taxes effect on foreign currency translation adjustments	(8)	(4)
Income taxes effect on net pension and postretirement benefit costs	$ 1	$ 2
Series A Preferred Stock [Member] | Retained Earnings [Member]
Cash dividends declared on Preferred Stock, per share	$ 1.9375	$ 1.9375

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Acquisitions and Discontinued Operations - Combined Results of Discontinued Operations (Parenthetical) (Detail) (Discontinued Operations [Member], USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Discontinued Operations [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Charges determined by applying a matched funds transfer pricing methodology to the liabilities assumed necessary to support the discontinued operations, after tax	$ 6	$ 9

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Asset Quality - Allowance for Loan and Lease Losses (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Financing Receivable, Recorded Investment [Line Items]
Beginning balance	$ 823	$ 887
Charge-offs	(57)	(70)
Recoveries	(23)	(41)
Provision for loan and lease losses from continuing operations	6	2
Foreign currency translation adjustment	(1)
Ending balance	819	868
Continuing Operations [Member]
Financing Receivable, Recorded Investment [Line Items]
Beginning balance	794	848
Charge-offs	(47)	(57)
Recoveries	19	37
Net loans and leases charged off	(28)	(20)
Provision for loan and lease losses from continuing operations	29	6
Foreign currency translation adjustment	(1)
Ending balance	$ 794	$ 834

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Accumulated Other Comprehensive Income - Changes in AOCI (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	$ (356)	$ (352)
Other comprehensive income before reclassification, net of income taxes	87	36
Amounts reclassified from accumulated other comprehensive income, net of income taxes (a)	(10)	(8)
Net current-period other comprehensive income, net of income taxes	77	28
Ending balance	(279)	(324)
Unrealized Gains (Losses) on Securities Available for Sale [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(4)	(63)
Other comprehensive income before reclassification, net of income taxes	55	29
Net current-period other comprehensive income, net of income taxes	55	29
Ending balance	51	(34)
Unrealized Gains (Losses) on Derivative Financial Instruments [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(8)	(11)
Other comprehensive income before reclassification, net of income taxes	45	7
Amounts reclassified from accumulated other comprehensive income, net of income taxes (a)	(13)	(8)
Net current-period other comprehensive income, net of income taxes	32	(1)
Ending balance	24	(12)
Foreign Currency Translation Adjustment [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	22	42
Other comprehensive income before reclassification, net of income taxes	(13)
Amounts reclassified from accumulated other comprehensive income, net of income taxes (a)		(2)
Net current-period other comprehensive income, net of income taxes	(13)	(2)
Ending balance	9	40
Net Pension and Postretirement Benefit Costs [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(366)	(320)
Amounts reclassified from accumulated other comprehensive income, net of income taxes (a)	3	2
Net current-period other comprehensive income, net of income taxes	3	2
Ending balance	$ (363)	$ (318)

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Accumulated Other Comprehensive Income (Tables)

3 Months Ended

Mar. 31, 2015

Equity [Abstract]

Changes in AOCI

Our changes in AOCI for the three months ended March 31, 2015, and March 31, 2014, are as follows:

in millions	Unrealized gains (losses) on securities available for sale			Unrealized gains (losses) on derivative financial instruments			Foreign currency translation adjustment			Net pension and postretirement benefit costs			Total
Balance at December 31, 2014	$	(4	)	$	(8	)	$	22		$	(366	)	$	(356	)
Other comprehensive income before reclassification, net of income taxes		55			45			(13	)		—			87
Amounts reclassified from accumulated other comprehensive income, net of income taxes (a)		—			(13	)		—			3			(10	)
Net current-period other comprehensive income, net of income taxes		55			32			(13	)		3			77
Balance at March 31, 2015	$	51		$	24		$	9		$	(363	)	$	(279	)
Balance at December 31, 2013	$	(63	)	$	(11	)	$	42		$	(320	)	$	(352	)
Other comprehensive income before reclassification, net of income taxes		29			7			—			—			36
Amounts reclassified from accumulated other comprehensive income, net of income taxes (a)		—			(8	)		(2	)		2			(8	)
Net current-period other comprehensive income, net of income taxes		29			(1	)		(2	)		2			28
Balance at March 31, 2014	$	(34	)	$	(12	)	$	40		$	(318	)	$	(324	)

(a) See table below for details about these reclassifications.

Reclassifications Out of AOCI

Our reclassifications out of AOCI for the three months ended March 31, 2015, and March 31, 2014, are as follows:

Three months ended March 31, 2015 in millions	Amount Reclassified from Accumulated Other Comprehensive Income			Affected Line Item in the Statement Where Net Income is Presented
Unrealized gains (losses) on derivative financial instruments
Interest rate	$	22		Interest income — Loans
Interest rate		(1	)	Interest expense — Long term debt
		21		Income (loss) from continuing operations before income taxes
		8		Income taxes
	$	13		Income (loss) from continuing operations
Net pension and postretirement benefit costs
Amortization of losses	$	(4	)	Personnel expense
		(4	)	Income (loss) from continuing operations before income taxes
		(1	)	Income taxes
	$	(3	)	Income (loss) from continuing operations
Three months ended March 31, 2014 in millions	Amount Reclassified from Accumulated Other Comprehensive Income			Affected Line Item in the Statement Where Net Income is Presented
Unrealized gains (losses) on derivative financial instruments
Interest rate	$	15		Interest income — Loans
Interest rate		(1	)	Interest expense — Long term debt
		14		Income (loss) from continuing operations before income taxes
		6		Income taxes
	$	8		Income (loss) from continuing operations
Foreign currency translation adjustment
	$	3		Corporate services income
		3		Income (loss) from continuing operations before income taxes
		1		Income taxes
	$	2		Income (loss) from continuing operations
Net pension and postretirement benefit costs
Amortization of losses	$	(4	)	Personnel expense
		(4	)	Income (loss) from continuing operations before income taxes
		(2	)	Income taxes
	$	(2	)	Income (loss) from continuing operations

XML

Basis of Presentation (Policies)

3 Months Ended

Mar. 31, 2015

Accounting Policies [Abstract]

Cloud Computing Fees

Cloud computing fees. In April 2015, the FASB issued new accounting guidance that clarifies a customer’s accounting for fees paid in a cloud computing arrangement. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. This accounting guidance will be effective for interim and annual reporting periods beginning after December 15, 2015 (effective January 1, 2016, for us) and can be implemented using either a prospective method or a retrospective method. Early adoption is permitted. The adoption of this accounting guidance is not expected to have a material effect on our financial condition or results of operations.

Offsetting Derivative Positions

Offsetting Derivative Positions

In accordance with the applicable accounting guidance, we take into account the impact of bilateral collateral and master netting agreements that allow us to settle all derivative contracts held with a single counterparty on a net basis, and to offset the net derivative position with the related cash collateral when recognizing derivative assets and liabilities. Additional information regarding derivative offsetting is provided in Note 7 (“Derivatives and Hedging Activities”).

Troubled Debt Restructurings

Troubled debt restructurings. In August 2014, the FASB issued new accounting guidance that clarifies how to account for certain government-guaranteed mortgage loans upon foreclosure. This accounting guidance was effective for reporting periods beginning after December 15, 2014 (effective January 1, 2015, for us) and could be implemented using either a modified retrospective method or a prospective method. Early adoption was permitted. We elected to implement the new accounting guidance using a prospective approach. The adoption of this accounting guidance did not have a material effect on our financial condition or results of operations.

In January 2014, the FASB issued new accounting guidance that clarifies the definition of when an in substance repossession or foreclosure occurs for purposes of creditor reclassification of residential real estate collateralized consumer mortgage loans by derecognizing the loan and recognizing the collateral asset. This accounting guidance was effective for reporting periods beginning after December 15, 2014 (effective January 1, 2015, for us) and can be implemented using either a modified retrospective method or prospective method. Early adoption is permitted. We have elected to implement the new accounting guidance using a prospective approach. The adoption of this accounting guidance did not have a material effect on our financial condition or results of operations.

Transfers and Servicing of Financial Assets

Transfers and servicing of financial assets. In June 2014, the FASB issued new accounting guidance that applies secured borrowing accounting to repurchase-to-maturity transactions and linked repurchase financings and expands disclosure requirements. This accounting guidance was effective for interim and annual reporting periods beginning after December 15, 2014 (effective January 1, 2015, for us) and was implemented using a cumulative-effect approach to transactions outstanding as of the effective date with no adjustment to prior periods. The disclosure for secured borrowings will be presented for annual periods beginning after December 15, 2014, and for interim periods beginning after March 15, 2015 (June 30, 2015, for us). Early adoption was not permitted. The adoption of this accounting guidance did not have a material effect on our financial condition or results of operations.

Discontinued Operations

Discontinued operations. In April 2014, the FASB issued new accounting guidance that revises the criteria for determining when disposals should be reported as discontinued operations and modifies the disclosure requirements. This accounting guidance was effective prospectively for reporting periods beginning after December 15, 2014 (effective January 1, 2015, for us). Early adoption was permitted. The adoption of this accounting guidance did not have a material effect on our financial condition or results of operations.

Investments in Qualified Affordable Housing Projects

Investments in qualified affordable housing projects. In January 2014, the FASB issued new accounting guidance that modifies the conditions that must be met to make an election to account for investments in qualified affordable housing projects using the proportional amortization method or the practical expedient method to the proportional amortization method. This accounting guidance was effective retrospectively for reporting periods beginning after December 15, 2014 (effective January 1, 2015, for us). Early adoption was permitted. We elected to amortize our LIHTCs under the practical expedient method to the proportional amortization method. As our LIHTCs were previously accounted for under the effective yield method and related amortization expense was previously classified as income taxes in our Consolidated Statements of Income, the adoption of this accounting guidance did not have a material effect on our financial condition or results of operations. We provide additional information regarding our LIHTCs in Note 9 (“Variable Interest Entities”).

Imputation of Interest

Imputation of interest. In April 2015, the FASB issued new accounting guidance that requires debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. This accounting guidance will be effective for interim and annual reporting periods beginning after December 15, 2015 (effective January 1, 2016, for us) and should be implemented using a retrospective method. Early adoption is permitted. The adoption of this accounting guidance is not expected to have a material effect on our financial condition or results of operations.

Consolidation

Consolidation. In February 2015, the FASB issued new accounting guidance that changes the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. The new guidance amends the current accounting guidance to address limited partnerships and similar legal entities, certain investment funds, fees paid to a decision maker or service provider, and the impact of fee arrangements and related parties on the primary beneficiary determination. This accounting guidance will be effective for interim and annual reporting periods beginning after December 15, 2015 (effective January 1, 2016, for us) and should be implemented using a modified retrospective basis. Retrospective application to all relevant prior periods and early adoption is permitted. We are currently evaluating the impact that this accounting guidance may have on our financial condition or results of operations.

In August 2014, the FASB issued new accounting guidance that clarifies how to measure the financial assets and the financial liabilities of a consolidated collateralized financing entity. This accounting guidance will be effective for interim and annual reporting periods beginning after December 15, 2015 (effective January 1, 2016, for us) and can be implemented using either a retrospective method or a cumulative-effect approach. Early adoption is permitted. The adoption of this accounting guidance is not expected to have a material effect on our financial condition or results of operations.

Derivatives and Hedging

Derivatives and hedging. In November 2014, the FASB issued new accounting guidance that clarifies how current guidance should be interpreted when evaluating the economic characteristics and risks of a host contract in a hybrid financial instrument that is issued in the form of a share. An entity should consider all relevant terms and features, including the embedded derivative feature being evaluated for bifurcation, when evaluating the nature of a host contract. This accounting guidance will be effective for interim and annual reporting periods beginning after December 15, 2015 (effective January 1, 2016, for us) and should be implemented using a modified retrospective basis. Retrospective application to all relevant prior periods and early adoption is permitted. The adoption of this accounting guidance is not expected to have a material effect on our financial condition or results of operations.

Going Concern

Going concern. In August 2014, the FASB issued new accounting guidance that requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date the financial statements are issued. Disclosure is required when conditions or events raise substantial doubt about an entity’s ability to continue as a going concern. This accounting guidance will be effective for interim and annual reporting periods beginning after December 15, 2016 (effective January 1, 2017, for us). Early adoption is permitted. The adoption of this accounting guidance is not expected to have a material effect on our financial condition or results of operations.

Stock-Based Compensation

Stock-based compensation. In June 2014, the FASB issued new accounting guidance that clarifies how to account for share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period. This accounting guidance will be effective for interim and annual reporting periods beginning after December 15, 2015 (effective January 1, 2016, for us) and can be implemented using either a retrospective method or a prospective method. Early adoption is permitted. The adoption of this accounting guidance is not expected to have a material effect on our financial condition or results of operations.

Revenue Recognition

Revenue recognition. In May 2014, the FASB issued new accounting guidance that revises the criteria for determining when to recognize revenue from contracts with customers and expands disclosure requirements. This accounting guidance will be effective for interim and annual reporting periods beginning after December 15, 2017 (effective January 1, 2018, for us) and can be implemented using either a retrospective method or a cumulative-effect approach. Early adoption is not permitted. We have elected to implement this new accounting guidance using a cumulative-effect approach. Our preliminary analysis suggests that the adoption of this accounting guidance is not expected to have a material effect on our financial condition or results of operations. There are many aspects of this new accounting guidance that are still being interpreted, and therefore, the results of our materiality analysis may change based on the conclusions reached as to the application of the new guidance.

XML

Line of Business Results

3 Months Ended

Mar. 31, 2015

Segment Reporting [Abstract]

Line of Business Results

18. Line of Business Results

The specific lines of business that constitute each of the major business segments (operating segments) are described below.

Key Community Bank

Key Community Bank serves individuals and small to mid-sized businesses through its 12-state branch network.

Individuals are provided branch-based deposit and investment products, personal finance services, and loans, including residential mortgages, home equity, credit card, and various types of installment loans. In addition, financial, estate and retirement planning, asset management services, and Delaware Trust capabilities are offered to assist high-net-worth clients with their banking, trust, portfolio management, insurance, charitable giving, and related needs.

Small businesses are provided deposit, investment and credit products, and business advisory services. Mid-sized businesses are provided products and services that include commercial lending, cash management, equipment leasing, investment and employee benefit programs, succession planning, access to capital markets, derivatives, and foreign exchange.

Key Corporate Bank

Key Corporate Bank is a full-service corporate and investment 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. Key Corporate Bank delivers a broad product 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. Key Corporate Bank is also a significant servicer of commercial mortgage loans and a significant special servicer of CMBS. Key Corporate Bank also delivers many of its product capabilities to clients of Key Community Bank.

Other Segments

Other Segments consist of Corporate Treasury, Principal Investing, and various exit portfolios.

Reconciling Items

Total assets included under “Reconciling Items” primarily represent 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 includes intercompany eliminations and certain items that are not allocated to the business segments because they do not reflect their normal operations.

The table on the following pages shows selected financial data for our major business segments for the three-month periods ended March 31, 2015, and March 31, 2014.

The information was derived from the internal financial reporting system that we use to monitor and manage our financial performance. GAAP guides financial accounting, but there is no authoritative guidance for “management accounting” — the way we use our judgment and experience to make reporting decisions. Consequently, the line of business results we report may not be comparable to line of business results presented by other companies.

The selected financial data is based on internal accounting policies designed to compile results on a consistent basis and in a manner that reflects the underlying economics of the businesses. In accordance with our policies:

• Net interest income is determined by assigning a standard cost for funds used or a standard credit for funds provided based on their assumed maturity, prepayment, and/or repricing characteristics.

• Indirect expenses, such as computer servicing costs and corporate overhead, are allocated based on assumptions regarding the extent to which each line of business actually uses the services.

• The consolidated provision for credit losses is allocated among the lines of business primarily based on their actual net loan charge-offs, adjusted periodically for loan growth and changes in risk profile. The amount of the consolidated provision is based on the methodology that we use to estimate our consolidated ALLL. This methodology is described in Note 1 (“Summary of Significant Accounting Policies”) under the heading “Allowance for Loan and Lease Losses” beginning on page 117 of our 2014 Form 10-K.

• Income taxes are allocated based on the statutory federal income tax rate of 35% and a blended state income tax rate (net of the federal income tax benefit) of 2.2%.

• Capital is assigned to each line of business based on economic equity.

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

Three months ended March 31,	Key Community Bank						Key Corporate Bank
dollars in millions	2015			2014			2015			2014
SUMMARY OF OPERATIONS
Net interest income (TE)	$	358		$	363		$	213		$	196
Noninterest income		191			183			188			196
Total revenue (TE) (a)		549			546			401			392
Provision for credit losses		29			11			8			(3	)
Depreciation and amortization expense		15			17			10			7
Other noninterest expense		425			419			207			195
Income (loss) from continuing operations before income taxes (TE)		80			99			176			193
Allocated income taxes and TE adjustments		30			37			49			57
Income (loss) from continuing operations		50			62			127			136
Income (loss) from discontinued operations, net of taxes		—			—			—			—
Net income (loss)		50			62			127			136
Less: Net income (loss) attributable to noncontrolling interests		—			—			1			—
Net income (loss) attributable to Key	$	50		$	62		$	126		$	136
AVERAGE BALANCES (b)
Loans and leases	$	30,662		$	29,797		$	24,722		$	21,991
Total assets (a)		32,716			31,918			30,297			27,171
Deposits		50,417			49,910			18,567			15,993
OTHER FINANCIAL DATA
Net loan charge-offs (b)	$	28		$	28		$	(4	)	$	(12	)
Return on average allocated equity (b)		7.38	%		8.97	%		27.44	%		35.65	%
Return on average allocated equity		7.38			8.97			27.44			35.65
Average full-time equivalent employees (c)		7,475			7,698			2,064			1,916

(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.

Other Segments						Total Segments						Reconciling Items						Key
2015			2014			2015			2014			2015			2014			2015			2014
$	4		$	10		$	575		$	569		$	2			—		$	577		$	569
	63			55			442			434			(5	)	$	1			437			435
	67			65			1,017			1,003			(3	)		1			1,014			1,004
	(3	)		(4	)		34			4			1			2			35			6
	2			3			27			27			37			38			64			65
	13			22			645			636			(40	)		(39	)		605			597
	55			44			311			336			(1	)		—			310			336
	9			7			88			101			(8	)		(3	)		80			98
	46			37			223			235			7			3			230			238
	—			—			—			—			5			4			5			4
	46			37			223			235			12			7			235			242
	1			—			2			—			—			—			2			—
$	45		$	37		$	221		$	235		$	12		$	7		$	233		$	242
$	2,044		$	2,913		$	57,428		$	54,701		$	84		$	45		$	57,512		$	54,746
	25,938			25,908			88,951			84,997			678			660			89,629			85,657
	466			575			69,450			66,478			(81	)		(184	)		69,369			66,294
$	4		$	4		$	28		$	20			—			—		$	28		$	20
	43.98	%		29.14	%		17.84	%		19.59	%		.51	%		.22	%		8.75	%		9.31	%
	43.98			29.14			17.84			19.59			.88			.52			8.94			9.46
	16			72			9,555			9,686			4,036			4,369			13,591			14,055

XML

Variable Interest Entities - Additional Information (Detail) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
LIHTC Funds [Member]
Variable Interest Entity [Line Items]
Variable Interest Entity, Carrying Amount of Assets, Consolidated VIEs	$ 1,000,000	$ 15,000,000	$ 1,000,000
Settlement value of third-party interests, reserves	5,000,000
Variable Interest Entity, Carrying Amount of Assets, Unconsolidated VIE	55,000,000	97,000,000	55,000,000
LIHTC Funds [Member] | Minimum [Member]
Variable Interest Entity [Line Items]
Settlement value of third-party interests, approximately	0
LIHTC Funds [Member] | Maximum [Member]
Variable Interest Entity [Line Items]
Settlement value of third-party interests, approximately	4,000,000
LIHTC Funds [Member] | Investments [Member]
Variable Interest Entity [Line Items]
Variable Interest Entity, Carrying Amount of Assets, Consolidated VIEs		12,000,000	5,000,000
LIHTC Funds [Member] | Investments [Member] | Maximum [Member]
Variable Interest Entity [Line Items]
Variable Interest Entity, Carrying Amount of Assets, Consolidated VIEs	1,000,000
LIHTC Investments [Member]
Variable Interest Entity [Line Items]
Variable Interest Entity, Carrying Amount of Assets, Unconsolidated VIE	1,355,000,000	1,595,000,000	1,234,000,000
Assets of unconsolidated LIHTC operating partnerships	885,000,000	826,000,000	764,000,000
Maximum exposure to loss, unconsolidated VIE	397,000,000
Recapture tax claim	108,000,000
Tax credit of investment	28,000,000	27,000,000
Additional investments in unconsolidated LIHTC operating partnerships held by consolidated LIHTC	470,000,000	769,000,000	470,000,000
Investment in LIHTC	1,000,000,000	960,000,000
LIHTC Investments [Member] | Return Guarantee Agreement with LIHTC Investors [Member]
Variable Interest Entity [Line Items]
Tax credit of investment	4,000,000
LIHTC Investments [Member] | Investments [Member]
Variable Interest Entity [Line Items]
Amortization of investment	$ 25,000,000	$ 24,000,000

XML

Asset Quality - Post-Modification Outstanding Recorded Investment by Concession Type for Our Commercial Accruing and Nonaccruing TDRs (Detail) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014	Mar. 31, 2014
Financing Receivable, Modifications [Line Items]
Total commercial and consumer TDRs	$ 268	$ 270	$ 294
Total Loans	57,953	57,381	55,445
Commercial Loans [Member]
Financing Receivable, Modifications [Line Items]
Interest rate reduction	12	13	49
Forgiveness of principal	2	2	5
Other	25	25	7
Total	39	40	61
Consumer Loans [Member]
Financing Receivable, Modifications [Line Items]
Interest rate reduction	140	140	142
Forgiveness of principal	4	4	5
Other	85	86	86
Total	$ 229	$ 230	$ 233

XML

Line of Business Results (Tables)

3 Months Ended

Mar. 31, 2015

Segment Reporting [Abstract]

Financial Information of Business Groups

Accordingly, financial results may be revised periodically to reflect enhanced alignment of expense base allocation drivers, changes in the risk profile of a particular business, or changes in our organizational structure.

Three months ended March 31,	Key Community Bank						Key Corporate Bank
dollars in millions	2015			2014			2015			2014
SUMMARY OF OPERATIONS
Net interest income (TE)	$	358		$	363		$	213		$	196
Noninterest income		191			183			188			196
Total revenue (TE) (a)		549			546			401			392
Provision for credit losses		29			11			8			(3	)
Depreciation and amortization expense		15			17			10			7
Other noninterest expense		425			419			207			195
Income (loss) from continuing operations before income taxes (TE)		80			99			176			193
Allocated income taxes and TE adjustments		30			37			49			57
Income (loss) from continuing operations		50			62			127			136
Income (loss) from discontinued operations, net of taxes		—			—			—			—
Net income (loss)		50			62			127			136
Less: Net income (loss) attributable to noncontrolling interests		—			—			1			—
Net income (loss) attributable to Key	$	50		$	62		$	126		$	136
AVERAGE BALANCES (b)
Loans and leases	$	30,662		$	29,797		$	24,722		$	21,991
Total assets (a)		32,716			31,918			30,297			27,171
Deposits		50,417			49,910			18,567			15,993
OTHER FINANCIAL DATA
Net loan charge-offs (b)	$	28		$	28		$	(4	)	$	(12	)
Return on average allocated equity (b)		7.38	%		8.97	%		27.44	%		35.65	%
Return on average allocated equity		7.38			8.97			27.44			35.65
Average full-time equivalent employees (c)		7,475			7,698			2,064			1,916

(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.

Other Segments						Total Segments						Reconciling Items						Key
2015			2014			2015			2014			2015			2014			2015			2014
$	4		$	10		$	575		$	569		$	2			—		$	577		$	569
	63			55			442			434			(5	)	$	1			437			435
	67			65			1,017			1,003			(3	)		1			1,014			1,004
	(3	)		(4	)		34			4			1			2			35			6
	2			3			27			27			37			38			64			65
	13			22			645			636			(40	)		(39	)		605			597
	55			44			311			336			(1	)		—			310			336
	9			7			88			101			(8	)		(3	)		80			98
	46			37			223			235			7			3			230			238
	—			—			—			—			5			4			5			4
	46			37			223			235			12			7			235			242
	1			—			2			—			—			—			2			—
$	45		$	37		$	221		$	235		$	12		$	7		$	233		$	242
$	2,044		$	2,913		$	57,428		$	54,701		$	84		$	45		$	57,512		$	54,746
	25,938			25,908			88,951			84,997			678			660			89,629			85,657
	466			575			69,450			66,478			(81	)		(184	)		69,369			66,294
$	4		$	4		$	28		$	20			—			—		$	28		$	20
	43.98	%		29.14	%		17.84	%		19.59	%		.51	%		.22	%		8.75	%		9.31	%
	43.98			29.14			17.84			19.59			.88			.52			8.94			9.46
	16			72			9,555			9,686			4,036			4,369			13,591			14,055

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Earnings Per Common Share (Tables)

3 Months Ended

Mar. 31, 2015

Earnings Per Share [Abstract]

Basic and Diluted Earnings Per Common Share

Our basic and diluted earnings per common share are calculated as follows:

	Three months ended March 31,
dollars in millions, except per share amounts	2015		2014
EARNINGS
Income (loss) from continuing operations	$	230	$	238
Less: Net income (loss) attributable to noncontrolling interests		2		—
Income (loss) from continuing operations attributable to Key		228		238
Less: Dividends on Series A Preferred Stock		6		6
Income (loss) from continuing operations attributable to Key common shareholders		222		232
Income (loss) from discontinued operations, net of taxes (a)		5		4
Net income (loss) attributable to Key common shareholders	$	227	$	236
WEIGHTED-AVERAGE COMMON SHARES
Weighted-average common shares outstanding (000)		848,580		884,727
Effect of convertible preferred stock		—		—
Effect of common share options and other stock awards		8,542		7,163
Weighted-average common shares and potential common shares outstanding (000)(b)		857,122		891,890
EARNINGS PER COMMON SHARE
Income (loss) from continuing operations attributable to Key common shareholders	$	.26	$	.26
Income (loss) from discontinued operations, net of taxes (a)		.01		—
Net income (loss) attributable to Key common shareholders (c)		.27		.27
Income (loss) from continuing operations attributable to Key common shareholders — assuming dilution	$	.26	$	.26
Income (loss) from discontinued operations, net of taxes (a)		.01		—
Net income (loss) attributable to Key common shareholders — assuming dilution(c)		.26		.26

(a) In April 2009, we decided to wind down the operations of Austin, a subsidiary that specialized in managing hedge fund investments for institutional customers. In September 2009, we decided to discontinue the education lending business conducted through Key Education Resources, the education payment and financing unit of KeyBank. In February 2013, we decided to sell Victory to a private equity fund. As a result of these decisions, we have accounted for these businesses as discontinued operations. For further discussion regarding the income (loss) from discontinued operations, see Note 11 (“Acquisitions and Discontinued Operations”).

(b) Assumes conversion of common share options and other stock awards and/or convertible preferred stock, as applicable.

(c) EPS may not foot due to rounding.

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Loans and Loans Held for Sale (Tables)

3 Months Ended

Mar. 31, 2015

Text Block [Abstract]

Loans by Category

Our loans by category are summarized as follows:

in millions	March 31, 2015		December 31, 2014		March 31, 2014
Commercial, financial and agricultural (a)	$	28,783	$	27,982	$	26,224
Commercial real estate:
Commercial mortgage		8,162		8,047		7,877
Construction		1,142		1,100		1,007
Total commercial real estate loans		9,304		9,147		8,884
Commercial lease financing (b)		4,064		4,252		4,396
Total commercial loans		42,151		41,381		39,504
Residential — prime loans:
Real estate — residential mortgage		2,231		2,225		2,183
Home equity:
Key Community Bank		10,270		10,366		10,281
Other		253		267		315
Total home equity loans		10,523		10,633		10,596
Total residential — prime loans		12,754		12,858		12,779
Consumer other — Key Community Bank		1,547		1,560		1,436
Credit cards		727		754		698
Consumer other:
Marine		730		779		965
Other		44		49		63
Total consumer other		774		828		1,028
Total consumer loans		15,802		16,000		15,941
Total loans (c) (d)	$	57,953	$	57,381	$	55,445

(a) Loan balances include $87 million, $88 million, and $95 million of commercial credit card balances at March 31, 2015, December 31, 2014, and March 31, 2014, respectively.

(b) Commercial lease financing includes receivables held as collateral for a secured borrowing of $230 million, $302 million, and $124 million at March 31, 2015, December 31, 2014, and March 31, 2014, respectively. Principal reductions are based on the cash payments received from these related receivables. Additional information pertaining to this secured borrowing is included in Note 18 (“Long-Term Debt”) beginning on page 202 of our 2014 Form 10-K.

(c) At March 31, 2015, total loans include purchased loans of $130 million, of which $12 million were PCI loans. At December 31, 2014, total loans include purchased loans of $138 million, of which $13 million were PCI loans. At March 31, 2014, total loans include purchased loans of $159 million, of which $16 million were PCI loans.

(d) Total loans exclude loans of $2.2 billion at March 31, 2015, $2.3 billion at December 31, 2014, and $4.4 billion at March 31, 2014, related to the discontinued operations of the education lending business.

Loans Held for Sale

Our loans held for sale are summarized as follows:

in millions	March 31, 2015		December 31, 2014		March 31, 2014
Commercial, financial and agricultural	$	183	$	63	$	44
Real estate — commercial mortgage		1,408		638		333
Commercial lease financing		14		15		8
Real estate — residential mortgage		44		18		16
Total loans held for sale	$	1,649	$	734	$	401

Summary of Changes in Loans Held for Sale

Our quarterly summary of changes in loans held for sale follows:

in millions	March 31, 2015			December 31, 2014			March 31, 2014
Balance at beginning of the period	$	734		$	784		$	611
New originations		2,130			2,465			645
Transfers from (to) held to maturity, net		10			2			3
Loan sales		(1,204	)		(2,516	)		(596	)
Loan draws (payments), net		(21	)		(1	)		(262	)
Balance at end of period	$	1,649		$	734		$	401

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Consolidated Statements of Changes in Equity (Unaudited) (USD $) In Millions, except Share data in Thousands, unless otherwise specified	Total USD ($)	Preferred Stock [Member] USD ($)	Preferred Stock [Member] Series A Preferred Stock [Member] USD ($)	Common Shares [Member] USD ($)	Common Shares [Member] Series A Preferred Stock [Member]	Capital Surplus [Member] USD ($)	Retained Earnings [Member] USD ($)	Retained Earnings [Member] Series A Preferred Stock [Member] USD ($)	Treasury Stock, at Cost [Member] USD ($)	Treasury Stock, at Cost [Member] Series A Preferred Stock [Member] USD ($)	Accumulated Other Comprehensive Income (Loss) [Member] USD ($)	Noncontrolling Interests [Member] USD ($)
Beginning Balance at Dec. 31, 2013		$ 291		$ 1,017		$ 4,022	$ 7,606		$ (2,281)		$ (352)	$ 17
Beginning Balance, Common Shares at Dec. 31, 2013				890,724
Beginning Balance, Preferred Shares at Dec. 31, 2013		2,905
Net income (loss)	242						242
Other comprehensive income (loss):
Net unrealized gains (losses) on securities available for sale, net of income taxes	29										29
Net unrealized gains (losses) on derivative financial instruments, net of income taxes	(1)										(1)
Foreign currency translation adjustments, net of income taxes	(2)										(2)
Net pension and postretirement benefit costs, net of income taxes	2										2
Deferred compensation						(4)
Cash dividends declared on common shares							(49)
Cash dividends declared on Noncumulative Series A Preferred Stock								(6)
Common shares repurchased, value									(130)
Common shares repurchased, shares				(9,845)
Common shares reissued (returned) for stock options and other employee benefit plans						(57)			76
Common shares reissued (returned) for stock options and other employee benefit plans, shares				3,990
Net contribution from (distribution to) noncontrolling interests												(1)
Ending Balance at Mar. 31, 2014	10,419	291		1,017		3,961	7,793		(2,335)		(324)	16
Ending Balance, Common Shares at Mar. 31, 2014				884,869
Ending Balance, Preferred Shares at Mar. 31, 2014		2,905
Beginning Balance at Dec. 31, 2014	10,542	291		1,017		3,986	8,273		(2,681)		(356)	12
Beginning Balance, Common Shares at Dec. 31, 2014				859,403
Beginning Balance, Preferred Shares at Dec. 31, 2014		2,905
Net income (loss)	235						233					2
Other comprehensive income (loss):
Net unrealized gains (losses) on securities available for sale, net of income taxes	55										55
Net unrealized gains (losses) on derivative financial instruments, net of income taxes	32										32
Foreign currency translation adjustments, net of income taxes	(13)										(13)
Net pension and postretirement benefit costs, net of income taxes	3										3
Deferred compensation						5
Cash dividends declared on common shares							(55)
Cash dividends declared on Noncumulative Series A Preferred Stock								(6)
Common shares repurchased, value									(197)
Common shares repurchased, shares				(14,087)
Common shares exchanged for Series A Preferred Stock			(1)							1
Common shares exchanged for Series A Preferred Stock, shares			(5)		33
Common shares reissued (returned) for stock options and other employee benefit plans						(81)			97
Common shares reissued (returned) for stock options and other employee benefit plans, shares				5,571
Net contribution from (distribution to) noncontrolling interests												(4)
Ending Balance at Mar. 31, 2015	$ 10,613	$ 290		$ 1,017		$ 3,910	$ 8,445		$ (2,780)		$ (279)	$ 10
Ending Balance, Common Shares at Mar. 31, 2015				850,920
Ending Balance, Preferred Shares at Mar. 31, 2015		2,900

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Asset Quality (Tables)

3 Months Ended

Mar. 31, 2015

Receivables [Abstract]

Nonperforming Assets and Past Due Loans

Our nonperforming assets and past due loans were as follows:

in millions	March 31, 2015		December 31, 2014		March 31, 2014
Total nonperforming loans (a), (b)	$	437	$	418	$	449
Nonperforming loans held for sale		—		—		1
OREO (c)		20		18		12
Other nonperforming assets		—		—		7
Total nonperforming assets	$	457	$	436	$	469
Nonperforming assets from discontinued operations—education lending (d)	$	8	$	11	$	20
Restructured loans included in nonperforming loans	$	141	$	157	$	178
Restructured loans with an allocated specific allowance (e)		70		82		51
Specifically allocated allowance for restructured loans (f)		39		34		32
Accruing loans past due 90 days or more	$	111	$	96	$	89
Accruing loans past due 30 through 89 days		216		235		267

(a) Loan balances exclude $12 million, $13 million, and $16 million of PCI loans at March 31, 2015, December 31, 2014, and March 31, 2014, respectively.

(b) Includes carrying value of consumer residential mortgage loans in the process of foreclosure of approximately $119 million at March 31, 2015.

(c) Includes carrying value of foreclosed residential real estate of approximately $17 million at March 31, 2015.

(d) Restructured loans of approximately $18 million, $17 million, and $15 million are included in discontinued operations at March 31, 2015, December 31, 2014, and March 31, 2014, respectively. See Note 11 (“Acquisitions and Discontinued Operations”) for further discussion.

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

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

Impaired Loans Evaluated for Specific Reserves

The following tables set forth a further breakdown of individually impaired loans as of March 31, 2015, December 31, 2014, and March 31, 2014:

March 31, 2015 in millions	Recorded Investment (a)		Unpaid Principal Balance (b)		Specific Allowance		Average Recorded Investment
With no related allowance recorded:
Commercial, financial and agricultural	$	20	$	51		—	$	13
Commercial real estate:
Commercial mortgage		14		19		—		14
Construction		7		7		—		6
Total commercial real estate loans		21		26		—		20
Total commercial loans		41		77		—		33
Real estate — residential mortgage		23		23		—		23
Home equity:
Key Community Bank		62		62		—		62
Other		1		2		—		1
Total home equity loans		63		64		—		63
Consumer other:
Marine		1		1		—		2
Total consumer other		1		1		—		2
Total consumer loans		87		88		—		88
Total loans with no related allowance recorded		128		165		—		121
With an allowance recorded:
Commercial, financial and agricultural		62		62	$	20		50
Commercial real estate:
Commercial mortgage		6		7		2		6
Construction		—		—		—		1
Total commercial real estate loans		6		7		2		7
Total commercial loans		68		69		22		57
Real estate — residential mortgage		32		32		5		32
Home equity:
Key Community Bank		49		49		16		48
Other		11		11		2		11
Total home equity loans		60		60		18		59
Consumer other — Key Community Bank		3		3		—		3
Credit cards		4		4		—		4
Consumer other:
Marine		41		41		4		42
Other		2		2		—		2
Total consumer other		43		43		4		44
Total consumer loans		142		142		27		142
Total loans with an allowance recorded		210		211		49		199
Total	$	338	$	376	$	49	$	320

(a) The Recorded Investment represents the face amount of the loan increased or decreased by applicable accrued interest, net deferred loan fees and costs, and 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, 2014 in millions	Recorded Investment (a)		Unpaid Principal Balance (b)		Specific Allowance		Average Recorded Investment
With no related allowance recorded:
Commercial, financial and agricultural	$	6	$	17		—	$	8
Commercial real estate:
Commercial mortgage		15		20		—		19
Construction		5		6		—		7
Total commercial real estate loans		20		26		—		26
Total commercial loans		26		43		—		34
Real estate — residential mortgage		24		24		—		30
Home equity:
Key Community Bank		62		63		—		63
Other		1		1		—		2
Total home equity loans		63		64		—		65
Consumer other:
Marine		2		2		—		2
Total consumer other		2		2		—		2
Total consumer loans		89		90		—		97
Total loans with no related allowance recorded		115		133		—		131
With an allowance recorded:
Commercial, financial and agricultural		37		37	$	9		28
Commercial real estate:
Commercial mortgage		6		6		2		6
Construction		3		3		1		2
Total commercial real estate loans		9		9		3		8
Total commercial loans		46		46		12		36
Real estate — residential mortgage		31		31		5		25
Home equity:
Key Community Bank		46		46		16		43
Other		11		11		2		11
Total home equity loans		57		57		18		54
Consumer other — Key Community Bank		4		4		—		3
Credit cards		4		4		—		4
Consumer other:
Marine		43		43		5		45
Other		2		2		—		2
Total consumer other		45		45		5		47
Total consumer loans		141		141		28		133
Total loans with an allowance recorded		187		187		40		169
Total	$	302	$	320	$	40	$	300

(a) The Recorded Investment represents the face amount of the loan increased or decreased by applicable accrued interest, net deferred loan fees and costs, and 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, 2014 in millions	Recorded Investment (a)		Unpaid Principal Balance (b)		Specific Allowance		Average Recorded Investment
With no related allowance recorded:
Commercial, financial and agricultural	$	33	$	60		—	$	33
Commercial real estate:
Commercial mortgage		23		28		—		22
Construction		7		17		—		27
Total commercial real estate loans		30		45		—		49
Total commercial loans		63		105		—		82
Real estate — residential mortgage		26		26		—		26
Home equity:
Key Community Bank		70		70		—		69
Other		2		2		—		2
Total home equity loans		72		72		—		71
Consumer other:
Marine		2		2		—		3
Total consumer other		2		2		—		3
Total consumer loans		100		100		—		100
Total loans with no related allowance recorded		163		205		—		182
With an allowance recorded:
Commercial, financial and agricultural		7		10	$	2		12
Commercial real estate:
Commercial mortgage		2		2		1		4
Construction		—		—		—		1
Total commercial real estate loans		2		2		1		5
Total commercial loans		9		12		3		17
Real estate — residential mortgage		28		28		5		28
Home equity:
Key Community Bank		36		36		16		36
Other		11		11		2		11
Total home equity loans		47		47		18		47
Consumer other — Key Community Bank		3		3		—		3
Credit cards		4		4		1		4
Consumer other:
Marine		49		49		7		49
Other		1		1		—		1
Total consumer other		50		50		7		50
Total consumer loans		132		132		31		132
Total loans with an allowance recorded		141		144		34		149
Total	$	304	$	349	$	34	$	331

(a) The Recorded Investment represents the face amount of the loan increased or decreased by applicable accrued interest, net deferred loan fees and costs, and 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

A further breakdown of TDRs included in nonperforming loans by loan category as of March 31, 2015, follows:

March 31, 2015 dollars in millions	Number of loans		Pre-modification Outstanding Recorded Investment		Post-modification Outstanding Recorded Investment
LOAN TYPE
Nonperforming:
Commercial, financial and agricultural		11	$	25	$	22
Commercial real estate:
Real estate — commercial mortgage		12		37		13
Total commercial real estate loans		12		37		13
Total commercial loans		23		62		35
Real estate — residential mortgage		383		22		22
Home equity:
Key Community Bank		1,071		76		70
Other		128		4		3
Total home equity loans		1,199		80		73
Consumer other — Key Community Bank		28		1		1
Credit cards		275		2		1
Consumer other:
Marine		117		8		8
Other		26		1		1
Total consumer other		143		9		9
Total consumer loans		2,028		114		106
Total nonperforming TDRs		2,051		176		141
Prior-year accruing (a)
Commercial, financial and agricultural		17		6		3
Commercial real estate:
Real estate — commercial mortgage		1		2		1
Total commercial real estate loans		1		2		1
Total commercial loans		18		8		4
Real estate — residential mortgage		454		34		34
Home equity:
Key Community Bank		803		47		41
Other		339		10		8
Total home equity loans		1,142		57		49
Consumer other — Key Community Bank		51		2		2
Credit cards		519		4		2
Consumer other:
Marine		429		60		35
Other		76		2		1
Total consumer other		505		62		36
Total consumer loans		2,671		159		123
Total prior-year accruing TDRs		2,689		167		127
Total TDRs		4,740	$	343	$	268

(a) All TDRs that were restructured prior to January 1, 2015, and are fully accruing.

A further breakdown of TDRs included in nonperforming loans by loan category as of December 31, 2014, follows:

December 31, 2014 dollars in millions	Number of loans		Pre-modification Outstanding Recorded Investment		Post-modification Outstanding Recorded Investment
LOAN TYPE
Nonperforming:
Commercial, financial and agricultural		14	$	25	$	23
Commercial real estate:
Real estate — commercial mortgage		10		38		13
Real estate — construction		1		5		—
Total commercial real estate loans		11		43		13
Total commercial loans		25		68		36
Real estate — residential mortgage		453		27		27
Home equity:
Key Community Bank		1,184		79		72
Other		158		4		4
Total home equity loans		1,342		83		76
Consumer other — Key Community Bank		37		2		1
Credit cards		290		2		2
Consumer other:
Marine		206		17		14
Other		38		1		1
Total consumer other		244		18		15
Total consumer loans		2,366		132		121
Total nonperforming TDRs		2,391		200		157
Prior-year accruing (a)
Commercial, financial and agricultural		20		6		3
Commercial real estate:
Real estate — commercial mortgage		1		2		1
Total commercial real estate loans		1		2		1
Total commercial loans		21		8		4
Real estate — residential mortgage		381		29		29
Home equity:
Key Community Bank		674		41		36
Other		310		9		8
Total home equity loans		984		50		44
Consumer other — Key Community Bank		45		2		2
Credit cards		514		4		2
Consumer other:
Marine		373		54		31
Other		67		2		1
Total consumer other		440		56		32
Total consumer loans		2,364		141		109
Total prior-year accruing TDRs		2,385		149		113
Total TDRs		4,776	$	349	$	270

(a) All TDRs that were restructured prior to January 1, 2014, and are fully accruing.

A further breakdown of TDRs included in nonperforming loans by loan category as of March 31, 2014, follows:

			Pre-modification		Post-modification
			Outstanding		Outstanding
March 31, 2014	Number		Recorded		Recorded
dollars in millions	of loans		Investment		Investment
LOAN TYPE
Nonperforming:
Commercial, financial and agricultural		28	$	58	$	33
Commercial real estate:
Real estate — commercial mortgage		11		40		14
Real estate — construction		5		16		2
Total commercial real estate loans		16		56		16
Total commercial loans		44		114		49
Real estate — residential mortgage		687		42		42
Home equity:
Key Community Bank		1,190		73		69
Other		132		4		4
Total home equity loans		1,322		77		73
Consumer other — Key Community Bank		33		1		1
Credit cards		10		—		—
Consumer other:
Marine		210		14		12
Other		41		1		1
Total consumer other		251		15		13
Total consumer loans		2,303		135		129
Total nonperforming TDRs		2,347		249		178
Prior-year accruing (a)
Commercial, financial and agricultural		42		7		4
Commercial real estate:
Real estate — commercial mortgage		4		18		8
Total commercial real estate loans		4		18		8
Total commercial loans		46		25		12
Real estate — residential mortgage		111		12		12
Home equity:
Key Community Bank		708		40		37
Other		312		9		8
Total home equity loans		1,020		49		45
Consumer other — Key Community Bank		51		2		2
Credit cards		785		5		5
Consumer other:
Marine		430		62		39
Other		68		2		1
Total consumer other		498		64		40
Total consumer loans		2,465		132		104
Total prior-year accruing TDRs		2,511		157		116
Total TDRs		4,858	$	406	$	294

(a) All TDRs that were restructured prior to January 1, 2014, and are fully accruing.

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 and other selected financial data.

	March 31,		December 31,		March 31,
in millions	2015		2014		2014
Commercial loans:
Interest rate reduction	$	12	$	13	$	49
Forgiveness of principal		2		2		5
Other		25		25		7
Total	$	39	$	40	$	61
Consumer loans:
Interest rate reduction	$	140	$	140	$	142
Forgiveness of principal		4		4		5
Other		85		86		86
Total	$	229	$	230	$	233
Total commercial and consumer TDRs (a)	$	268	$	270	$	294
Total loans		57,953		57,381		55,445

(a) Commitments outstanding to lend additional funds to borrowers whose loan terms have been modified in TDRs are $5 million, $5 million, and $2 million at March 31, 2015, December 31, 2014, and March 31, 2014, respectively.

Past Due Loans Including Current Loans

The following aging analysis of past due and current loans as of March 31, 2015, December 31, 2014, and March 31, 2014, provides further information regarding Key’s credit exposure.

							90 and				Total Past
			30-59		60-89		Greater				Due and		Purchased
March 31, 2015			Days Past		Days Past		Days Past		Nonperforming		Nonperforming		Credit		Total
in millions	Current		Due		Due		Due		Loans		Loans		Impaired		Loans
LOAN TYPE
Commercial, financial and agricultural	$	28,603	$	36	$	11	$	35	$	98	$	180		—	$	28,783
Commercial real estate:
Commercial mortgage		8,080		5		18		29		30		82		—		8,162
Construction		1,114		10		4		2		12		28		—		1,142
Total commercial real estate loans		9,194		15		22		31		42		110		—		9,304
Commercial lease financing		4,017		9		6		12		20		47		—		4,064
Total commercial loans	$	41,814	$	60	$	39	$	78	$	160	$	337		—	$	42,151
Real estate — residential mortgage	$	2,129	$	12	$	5	$	2	$	72	$	91	$	11	$	2,231
Home equity:
Key Community Bank		10,012		39		23		13		182		257		1		10,270
Other		238		4		1		1		9		15		—		253
Total home equity loans		10,250		43		24		14		191		272		1		10,523
Consumer other — Key Community Bank		1,527		8		4		6		2		20		—		1,547
Credit cards		708		5		3		9		2		19		—		727
Consumer other:
Marine		707		8		4		2		9		23		—		730
Other		42		1		—		—		1		2		—		44
Total consumer other		749		9		4		2		10		25		—		774
Total consumer loans	$	15,363	$	77	$	40	$	33	$	277	$	427	$	12	$	15,802
Total loans	$	57,177	$	137	$	79	$	111	$	437	$	764	$	12	$	57,953

							90 and				Total Past
			30-59		60-89		Greater				Due and		Purchased
December 31, 2014			Days Past		Days Past		Days Past		Nonperforming		Nonperforming		Credit		Total
in millions	Current		Due		Due		Due		Loans		Loans		Impaired		Loans
LOAN TYPE
Commercial, financial and agricultural	$	27,858	$	19	$	14	$	32	$	59	$	124		—	$	27,982
Commercial real estate:
Commercial mortgage		7,981		6		10		16		34		66		—		8,047
Construction		1,084		2		—		1		13		16		—		1,100
Total commercial real estate loans		9,065		8		10		17		47		82		—		9,147
Commercial lease financing		4,172		30		21		11		18		80		—		4,252
Total commercial loans	$	41,095	$	57	$	45	$	60	$	124	$	286		—	$	41,381
Real estate — residential mortgage	$	2,111	$	12	$	7	$	4	$	79	$	102	$	12	$	2,225
Home equity:
Key Community Bank		10,098		46		22		14		185		267		1		10,366
Other		249		5		2		1		10		18		—		267
Total home equity loans		10,347		51		24		15		195		285		1		10,633
Consumer other — Key Community Bank		1,541		9		3		5		2		19		—		1,560
Credit cards		733		6		4		9		2		21		—		754
Consumer other:
Marine		746		11		5		2		15		33		—		779
Other		46		1		—		1		1		3		—		49
Total consumer other		792		12		5		3		16		36		—		828
Total consumer loans	$	15,524	$	90	$	43	$	36	$	294	$	463	$	13	$	16,000
Total loans	$	56,619	$	147	$	88	$	96	$	418	$	749	$	13	$	57,381

			30-59		60-89		90 and Greater				Total Past Due and		Purchased
March 31, 2014			Days Past		Days Past		Days Past		Nonperforming		Nonperforming		Credit		Total
in millions	Current		Due		Due		Due		Loans		Loans		Impaired		Loans
LOAN TYPE
Commercial, financial and agricultural	$	26,071	$	67	$	8	$	18	$	60	$	153		—	$	26,224
Commercial real estate:
Commercial mortgage		7,806		9		7		17		37		70	$	1		7,877
Construction		987		3		5		1		11		20		—		1,007
Total commercial real estate loans		8,793		12		12		18		48		90		1		8,884
Commercial lease financing		4,338		15		12		13		18		58		—		4,396
Total commercial loans	$	39,202	$	94	$	32	$	49	$	126	$	301	$	1	$	39,504
Real estate — residential mortgage	$	2,043	$	13	$	6	$	3	$	105	$	127	$	13	$	2,183
Home equity:
Key Community Bank		10,010		45		25		11		188		269		2		10,281
Other		296		5		2		1		11		19		—		315
Total home equity loans		10,306		50		27		12		199		288		2		10,596
Consumer other — Key Community Bank		1,415		8		5		6		2		21		—		1,436
Credit cards		671		7		4		15		1		27		—		698
Consumer other:
Marine		928		12		6		4		15		37		—		965
Other		59		2		1		—		1		4		—		63
Total consumer other		987		14		7		4		16		41		—		1,028
Total consumer loans	$	15,422	$	92	$	49	$	40	$	323	$	504	$	15	$	15,941
Total loans	$	54,624	$	186	$	81	$	89	$	449	$	805	$	16	$	55,445

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)	2015		2014		2015		2014		2015		2014		2015		2014		2015		2014
AAA — AA	$	286	$	500	$	6	$	1	$	1	$	1	$	535	$	805	$	828	$	1,307
A		1,267		1,010		2		57		—		1		516		448		1,785		1,516
BBB — BB		25,684		23,361		7,604		7,267		992		826		2,842		2,964		37,122		34,418
B		648		551		325		337		127		84		104		101		1,204		1,073
CCC — C		898		802		225		214		22		95		67		78		1,212		1,189
Total	$	28,783	$	26,224	$	8,162	$	7,876	$	1,142	$	1,007	$	4,064	$	4,396	$	42,151	$	39,503

(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.

Consumer Credit Exposure

Credit Risk Profile by Regulatory Classifications ^{(a), (b)}

March 31,
in millions
	Residential — Prime
GRADE	2015		2014
Pass	$	12,463	$	12,445
Substandard		279		319
Total	$	12,742	$	12,764

Credit Risk Profile Based on Payment Activity ^(a)

March 31,	Consumer — Key Community Bank				Credit cards				Consumer — Marine				Consumer — Other				Total
in millions	2015		2014		2015		2014		2015		2014		2015		2014		2015		2014
Performing	$	1,545	$	1,434	$	725	$	697	$	721	$	950	$	43	$	62	$	3,034	$	3,143
Nonperforming		2		2		2		1		9		15		1		1		14		19
Total	$	1,547	$	1,436	$	727	$	698	$	730	$	965	$	44	$	63	$	3,048	$	3,162

(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 Allowance for Loan and Lease Losses

A summary of the changes in the ALLL for the periods indicated is presented in the table below:

	Three months ended March 31,
in millions	2015			2014
Balance at beginning of period — continuing operations	$	794		$	848
Charge-offs		(47	)		(57	)
Recoveries		19			37
Net loans and leases charged off		(28	)		(20	)
Provision for loan and lease losses from continuing operations		29			6
Foreign currency translation adjustment		(1	)		—
Balance at end of period — continuing operations	$	794		$	834

Changes in Allowance for Loan and Lease Losses by Loan Category

The changes in the ALLL by loan category for the periods indicated are as follows:

	December 31,										March 31,
in millions	2014		Provision			Charge-offs			Recoveries		2015
Commercial, financial and agricultural	$	391	$	21		$	(12	)	$	5	$	405
Real estate — commercial mortgage		148		—			(2	)		2		148
Real estate — construction		28		1			(1	)		—		28
Commercial lease financing		56		(3	)		(2	)		4		55
Total commercial loans		623		19			(17	)		11		636
Real estate — residential mortgage		23		—			(2	)		—		21
Home equity:
Key Community Bank		66		(3	)		(7	)		2		58
Other		5		—			(1	)		1		5
Total home equity loans		71		(3	)		(8	)		3		63
Consumer other — Key Community Bank		22		3			(6	)		2		21
Credit cards		33		7			(8	)		—		32
Consumer other:
Marine		21		1			(5	)		3		20
Other		1		1			(1	)		—		1
Total consumer other:		22		2			(6	)		3		21
Total consumer loans		171		9			(30	)		8		158
Total ALLL — continuing operations		794		28	(a)		(47	)		19		794
Discontinued operations		29		2			(10	)		4		25
Total ALLL — including discontinued operations	$	823	$	30		$	(57	)	$	23	$	819

(a) Includes $1 million of foreign currency translation adjustment. Excludes provision for losses on lending-related commitments of $6 million.

	December 31,										March 31,
in millions	2013		Provision			Charge-offs			Recoveries		2014
Commercial, financial and agricultural	$	362	$	13		$	(12	)	$	10	$	373
Real estate — commercial mortgage		165		(3	)		(2	)		1		161
Real estate — construction		32		(7	)		(2	)		14		37
Commercial lease financing		62		1			(3	)		2		62
Total commercial loans		621		4			(19	)		27		633
Real estate — residential mortgage		37		(8	)		(3	)		1		27
Home equity:
Key Community Bank		84		3			(10	)		3		80
Other		11		2			(3	)		1		11
Total home equity loans		95		5			(13	)		4		91
Consumer other — Key Community Bank		29		2			(8	)		2		25
Credit cards		34		4			(6	)		—		32
Consumer other:
Marine		29		(2	)		(7	)		3		23
Other		3		1			(1	)		—		3
Total consumer other:		32		(1	)		(8	)		3		26
Total consumer loans		227		2			(38	)		10		201
Total ALLL — continuing operations		848		6	(a)		(57	)		37		834
Discontinued operations		39		4			(13	)		4		34
Total ALLL — including discontinued operations	$	887	$	10		$	(70	)	$	41	$	868

(a) Excludes credit for losses on lending-related commitments of $2 million.

Allowance for Loan and Lease Losses and Corresponding Loan Balances

A breakdown of the individual and collective ALLL and the corresponding loan balances as of March 31, 2015, follows:

	Allowance						Outstanding
March 31, 2015 in millions	Individually Evaluated for Impairment		Collectively Evaluated for Impairment		Purchased Credit Impaired		Loans			Individually Evaluated for Impairment		Collectively Evaluated for Impairment			Purchased Credit Impaired
Commercial, financial and agricultural	$	20	$	385		—	$	28,783		$	82	$	28,701			—
Commercial real estate:
Commercial mortgage		2		146		—		8,162			20		8,142			—
Construction		—		28		—		1,142			7		1,135			—
Total commercial real estate loans		2		174		—		9,304			27		9,277			—
Commercial lease financing		—		55		—		4,064			—		4,064			—
Total commercial loans		22		614		—		42,151			109		42,042			—
Real estate — residential mortgage		5		15	$	1		2,231			55		2,165		$	11
Home equity:
Key Community Bank		16		42		—		10,270			111		10,158			1
Other		2		3		—		253			12		241			—
Total home equity loans		18		45		—		10,523			123		10,399			1
Consumer other — Key Community Bank		—		21		—		1,547			3		1,544			—
Credit cards		—		32		—		727			4		723			—
Consumer other:
Marine		4		16		—		730			42		688			—
Other		—		1		—		44			2		42			—
Total consumer other		4		17		—		774			44		730			—
Total consumer loans		27		130		1		15,802			229		15,561			12
Total ALLL — continuing operations		49		744		1		57,953			338		57,603			12
Discontinued operations		1		24		—		2,219	(a)		18		2,201	(a)		—
Total ALLL — including discontinued operations	$	50	$	768	$	1	$	60,172		$	356	$	59,804		$	12

(a) Amount includes $187 million of portfolio loans carried at fair value that are excluded from ALLL consideration.

A breakdown of the individual and collective ALLL and the corresponding loan balances as of December 31, 2014, follows:

	Allowance						Outstanding
December 31, 2014 in millions	Individually Evaluated for Impairment		Collectively Evaluated for Impairment		Purchased Credit Impaired		Loans			Individually Evaluated for Impairment		Collectively Evaluated for Impairment			Purchased Credit Impaired
Commercial, financial and agricultural	$	9	$	382		—	$	27,982		$	43	$	27,939			—
Commercial real estate:
Commercial mortgage		2		146		—		8,047			21		8,025		$	1
Construction		1		27		—		1,100			8		1,092			—
Total commercial real estate loans		3		173		—		9,147			29		9,117			1
Commercial lease financing		—		56		—		4,252			—		4,252			—
Total commercial loans		12		611		—		41,381			72		41,308			1
Real estate — residential mortgage		5		17	$	1		2,225			55		2,159			11
Home equity:
Key Community Bank		16		50		—		10,366			108		10,257			1
Other		2		3		—		267			12		255			—
Total home equity loans		18		53		—		10,633			120		10,512			1
Consumer other — Key Community Bank		—		22		—		1,560			4		1,556			—
Credit cards		—		33		—		754			4		750			—
Consumer other:
Marine		5		16		—		779			45		734			—
Other		—		1		—		49			2		47			—
Total consumer other		5		17		—		828			47		781			—
Total consumer loans		28		142		1		16,000			230		15,758			12
Total ALLL — continuing operations		40		753		1		57,381			302		57,066			13
Discontinued operations		1		28		—		2,295	(a)		17		2,278	(a)		—
Total ALLL — including discontinued operations	$	41	$	781	$	1	$	59,676		$	319	$	59,344		$	13

(a) Amount includes $191 million of loans carried at fair value that are excluded from ALLL consideration.

A breakdown of the individual and collective ALLL and the corresponding loan balances as of March 31, 2014, follows:

	Allowance						Outstanding
March 31, 2014 in millions	Individually Evaluated for Impairment		Collectively Evaluated for Impairment		Purchased Credit Impaired		Loans			Individually Evaluated for Impairment		Collectively Evaluated for Impairment		Purchased Credit Impaired
Commercial, financial and agricultural	$	2	$	371		—	$	26,224		$	40	$	26,184		—
Commercial real estate:
Commercial mortgage		1		160		—		7,877			25		7,851	$	1
Construction		—		37		—		1,007			6		1,001		—
Total commercial real estate loans		1		197		—		8,884			31		8,852		1
Commercial lease financing		—		62		—		4,396			—		4,396		—
Total commercial loans		3		630		—		39,504			71		39,432		1
Real estate — residential mortgage		4		22	$	1		2,183			54		2,116		13
Home equity:
Key Community Bank		16		64		—		10,281			105		10,174		2
Other		2		9		—		315			13		302		—
Total home equity loans		18		73		—		10,596			118		10,476		2
Consumer other — Key Community Bank		—		25		—		1,436			4		1,432		—
Credit cards		1		31		—		698			4		694		—
Consumer other:
Marine		7		16		—		965			52		913		—
Other		1		2		—		63			1		62		—
Total consumer other		8		18		—		1,028			53		975		—
Total consumer loans		31		169		1		15,941			233		15,693		15
Total ALLL — continuing operations		34		799		1		55,445			304		55,125		16
Discontinued operations		1		33		—		4,382	(a)		15		4,367		—
Total ALLL — including discontinued operations	$	35	$	832	$	1	$	59,827		$	319	$	59,492	$	16

(a) Amount includes $2.0 billion of loans carried at fair value that are excluded from ALLL consideration.

Changes in Liability for Credit Losses on Lending Related Commitments

Changes in the liability for credit losses on unfunded lending-related commitments are summarized as follows:

	Three months ended March 31,
in millions	2015		2014
Balance at beginning of period	$	35	$	37
Provision (credit) for losses on lending-related commitments		6		(2	)
Balance at end of period	$	41	$	35

XML

Securities - Available for Sale Securities Realized Gains and Losses (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015
Investments, Debt and Equity Securities [Abstract]
Realized gains	$ 0
Realized losses	0
Net securities gains (losses)	$ 0

XML

Acquisitions and Discontinued Operations - Components of Assets and Liabilities from Discontinued Operations (Detail) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014	Mar. 31, 2014	Dec. 31, 2013
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Cash and due from banks	$ 506	$ 653	$ 409	$ 617
Seller note	187	191	143
Total assets	2,246	2,324	4,427
Total liabilities		3	1,819
Discontinued Operations [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Cash and due from banks	15	19	19
Total assets	2,246	2,324	4,427
Total liabilities		3	1,819
Discontinued Operations [Member] | Victory Capital Management [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Total assets			28
Discontinued Operations [Member] | Austin Capital Management [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Cash and due from banks	15	19	19
Total assets	15	19	19
Accrued expense and other liabilities		3	3
Total liabilities		3	3
Discontinued Operations [Member] | Seller Note [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Seller note			28
Discontinued Operations [Member] | Seller Note [Member] | Victory Capital Management [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Seller note			$ 28

XML

Employee Benefits (Tables)

3 Months Ended

Mar. 31, 2015

Pension Plans [Member]

Summary of Defined Benefit Plans Cost (Benefit) for All Funded and Unfunded Plans

The components of net pension cost (benefit) for all funded and unfunded plans are as follows:

	Three months ended March 31,
in millions	2015			2014
Interest cost on PBO	$	10		$	12
Expected return on plan assets		(14	)		(17	)
Amortization of losses		4			4
Net pension cost (benefit)		—		$	(1	)

Other Postretirement Benefit Plans [Member]

Summary of Defined Benefit Plans Cost (Benefit) for All Funded and Unfunded Plans

The components of net postretirement benefit cost for all funded and unfunded plans are as follows:

	Three months ended March 31,
in millions	2015			2014
Interest cost on APBO	$	1		$	1
Expected return on plan assets		(1	)		(1	)
Net postretirement benefit cost		—			—

XML

Asset Quality - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		12 Months Ended
	Mar. 31, 2015 SecurityLoan	Mar. 31, 2014 SecurityLoan	Dec. 31, 2014	Dec. 31, 2013
Accounts, Notes, Loans and Financing Receivable [Line Items]
Estimated gross contractual amount receivable of PCI loans	$ 41
Estimated cash flows nonaccretable amount	11
Estimated cash flows accretable amount	5
Purchased Credit Impaired, Outstanding	12	16	13
Changes in the accretable yield, accretion	1
Changes in the accretable yield, net reclassifications	1
Accretable yield	5
Percentage of carrying amount of our commercial nonperforming loans outstanding	79.00%
Percentage of nonperforming loans outstanding face value	81.00%
Percentage of loans held for sale and other nonperforming assets	81.00%
Aggregate carrying amount of largest nonperforming loans		75
Number of largest nonperforming loans	20	20
Total loans on nonperforming status from continuing operations	123
Percentage of total loans on nonperforming status	28.00%	17.00%
Net reduction to interest income	4		16
Interest income recognized on outstanding balances	1	2
Total restructured loans	268	294	270
Addition in restructured loans	11
Restructured loans partially in payments and charge-offs	13
loans net of deferred income	57,953	55,445	57,381
Minimum outstanding impaired commercial loans	2.5
Number of days to designate commercial loans will be charged off in full or charged down to the fair value of the underlying collateral payment due period	180 days
Number of days to designate the charge-off policy for most consumer loans taking effect, payment due period	120 days
Number of days to designate home equity and residential mortgage loans to get charged down to the fair value of the underlying collateral payment due period	180 days
Number of days to designate the charge-off policy for credit card loans taking effect, payment due period	180 days
ALLL	794	834	794
ALLL percentage	1.37%	1.50%
ALLL of nonperforming loans percentage	181.70%	185.70%
Increase (decrease) in allowance for loan losses	(40)
Percentage decrease in allowance for loan losses	4.80%
Individually evaluated for impairment, outstanding	338	304	302
Individually evaluated for Impairment, corresponding allowance	49	34	40
Collectively Evaluated for Impairment, Outstanding	57,603	55,125	57,066
Collectively evaluated for current, corresponding allowance	744	799	753
Provision (credit) for loan and lease losses	6	2
Liability for credit losses on lending-related commitments	41	35	35	37
Percentage of total allowance for credit losses	1.44%	1.57%
Commercial Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Purchased Credit Impaired, Outstanding		1	1
Nature of default in repayment of loan TDRs	90 days past due
Number of loans		2
Financial receivable, modifications, subsequent default, recorded investment		11
loans net of deferred income	42,151	39,504	41,381
Individually evaluated for impairment, outstanding	109	71	72
Individually evaluated for Impairment, corresponding allowance	22	3	12
Collectively Evaluated for Impairment, Outstanding	42,042	39,432	41,308
Collectively evaluated for current, corresponding allowance	614	630	611
Consumer Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Purchased Credit Impaired, Outstanding	12	15	12
Nature of default in repayment of loan TDRs	More than 60 days past due
Number of loans	89	157
Financial receivable, modifications, subsequent default, recorded investment	4	4
loans net of deferred income	15,802	15,941	16,000
Individually evaluated for impairment, outstanding	229	233	230
Individually evaluated for Impairment, corresponding allowance	27	31	28
Collectively Evaluated for Impairment, Outstanding	15,561	15,693	15,758
Collectively evaluated for current, corresponding allowance	130	169	142
Purchase Credit Impaired Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Individually evaluated for Impairment, corresponding allowance	1	1
Collectively Evaluated for Impairment, Outstanding	12	16
Provision (credit) for loan and lease losses	0	0
Performing [Member] | Loans, Total [Member] | Credit Concentration Risk [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
loans net of deferred income	57,200
Concentration risk	98.70%
Nonperforming [Member] | Loans, Total [Member] | Credit Concentration Risk [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
loans net of deferred income	764
Concentration risk	1.30%
PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Purchased Credit Impaired, Outstanding	19
Purchased credit impaired loans carrying value	$ 12

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Fair Value Measurements - Change in Fair Values of Level 3 Financial Instruments (Parenthetical) (Detail) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Fair Value Disclosures [Abstract]
Issuance of financial instrument	$ 0	$ 0

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Consolidated Balance Sheets (USD $) In Millions, unless otherwise specified	Mar. 31, 2015		Dec. 31, 2014		Mar. 31, 2014
ASSETS
Cash and due from banks	$ 506		$ 653		$ 409
Short-term investments	3,378		4,269		2,922
Trading account assets	789		750		840
Securities available for sale	13,120		13,360		12,359
Held-to-maturity securities (fair value: $5,003, $4,974, and $4,733)	5,005		5,015		4,826
Other investments	730		760		899
Loans, net of unearned income of $665, $682, and $776	57,953		57,381		55,445
Less: Allowance for loan and lease losses	794		794		834
Net loans	57,159		56,587		54,611
Loans held for sale	1,649		734		401
Premises and equipment	806		841		862
Operating lease assets	306		330		294
Goodwill	1,057		1,057		979
Other intangible assets	92		101		117
Corporate-owned life insurance	3,488		3,479		3,425
Derivative assets	731		609		427
Accrued income and other assets (including $1 of consolidated LIHTC guaranteed funds VIEs, see Note 9)	3,144	[1]	2,952	[1]	3,004	[1]
Discontinued assets (including $187 of loans in portfolio at fair value)	2,246		2,324		4,427
Total assets	94,206		93,821		90,802
Deposits in domestic offices:
NOW and money market deposit accounts	35,623		34,536		34,373
Savings deposits	2,413		2,371		2,513
Certificates of deposit ($100,000 or more)	1,982		2,040		2,849
Other time deposits	3,182		3,259		3,682
Total interest-bearing deposits	43,200		42,206		43,417
Noninterest-bearing deposits	27,948		29,228		23,244
Deposits in foreign office - interest-bearing	474		564		605
Total deposits	71,622		71,998		67,266
Federal funds purchased and securities sold under repurchase agreements	517		575		1,417
Bank notes and other short-term borrowings	608		423		464
Derivative liabilities	825		784		408
Accrued expense and other liabilities	1,308		1,621		1,297
Long-term debt	8,713		7,875		7,712
Discontinued liabilities			3		1,819
Total liabilities	83,593		83,279		80,383
EQUITY
Common shares, $1 par value; authorized 1,400,000,000 shares; issued 1,016,969,905, 1,016,969,905, and 1,016,969,905 shares	1,017		1,017		1,017
Capital surplus	3,910		3,986		3,961
Retained earnings	8,445		8,273		7,793
Treasury stock, at cost (166,049,974, 157,566,493, and 132,100,665 shares)	(2,780)		(2,681)		(2,335)
Accumulated other comprehensive income (loss)	(279)		(356)		(324)
Key shareholders' equity	10,603		10,530		10,403
Noncontrolling interests	10		12		16
Total equity	10,613		10,542		10,419
Total liabilities and equity	94,206		93,821		90,802
Series A Preferred Stock [Member]
EQUITY
Preferred stock, $1 par value, authorized 25,000,000 shares: 7.75% Noncumulative Perpetual Convertible Preferred Stock, Series A, $100 liquidation preference; authorized 7,475,000 shares; issued 2,900,234, 2,904,839, and 2,904,839 shares	$ 290		$ 291		$ 291

[1] The assets of the VIEs can only be used by the particular VIE, and there is no recourse to Key with respect to the liabilities of the consolidated LIHTC VIEs.

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Basis of Presentation - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2015
Equity Method Investments [Member]
Accounting Policies [Line Items]
Economic interest in unconsolidated investments in voting rights entities, minimum	20.00%
Economic interest in unconsolidated investments in voting rights entities, maximum	50.00%
Cost Method Investments [Member]
Accounting Policies [Line Items]
Economic interest in unconsolidated investments in voting rights entities, Ownership less than	20.00%

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Mortgage Servicing Assets - Changes in Carrying Amount of Mortgage Servicing Assets (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Servicing Asset [Abstract]
Balance at beginning of period	$ 323	$ 332
Servicing retained from loan sales	10	6
Purchases	15	7
Amortization	(24)	(25)
Balance at end of period	324	320
Fair value at end of period	$ 423	$ 373

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Acquisitions and Discontinued Operations - Components of Income (Loss) from Discontinued Operations, Net of Taxes (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Income taxes	$ 3	$ 2
Income (loss) from discontinued operations, net of taxes	5	4
Discontinued Operations [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net interest income	10	24
Noninterest income	4	(4)
Noninterest expense	4	10
Income (loss) before income taxes	8	6
Income taxes	3	2
Income (loss) from discontinued operations, net of taxes	5	4
Discontinued Operations [Member] | Austin Capital Management [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Noninterest expense		4
Income (loss) before income taxes		(4)
Income taxes		(2)
Income (loss) from discontinued operations, net of taxes		(2)
Discontinued Operations [Member] | Victory Capital Management [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net interest income		1
Noninterest income		10
Income (loss) before income taxes		11
Income taxes		4
Income (loss) from discontinued operations, net of taxes		$ 7

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Consolidated Statements of Comprehensive Income (Unaudited) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 235	$ 242
Other comprehensive income (loss), net of tax:
Net unrealized gains (losses) on securities available for sale, net of income taxes of $33 and $17	55	29
Net unrealized gains (losses) on derivative financial instruments, net of income taxes of $19 and ($1)	32	(1)
Foreign currency translation adjustments, net of income taxes of ($8) and ($4)	(13)	(2)
Net pension and postretirement benefit costs, net of income taxes of $1 and $2	3	2
Net current-period other comprehensive income, net of income taxes	77	28
Comprehensive income (loss)	312	270
Less: Comprehensive income attributable to noncontrolling interests	2
Comprehensive income (loss) attributable to Key	$ 310	$ 270

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Derivatives and Hedging Activities - Credit Derivatives Sold and Held (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		12 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Credit Derivatives [Line Items]
Notional Amount	$ 13	$ 68	$ 11
Single Name Credit Default Swaps [Member]
Credit Derivatives [Line Items]
Notional Amount	5	55	5
Average Term (Years)	5 months 19 days	6 months 7 days	8 months 19 days
Payment / Performance Risk	0.87%	22.28%	0.87%
Other [Member]
Credit Derivatives [Line Items]
Notional Amount	$ 8	$ 13	$ 6
Average Term (Years)	3 years 15 days	4 years 9 months 18 days	2 years 10 months 21 days
Payment / Performance Risk	9.39%	8.23%	9.58%

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Asset Quality - Financing Receivable Credit Quality Indicators (Detail) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014	Mar. 31, 2014
Financing Receivable, Recorded Investment [Line Items]
Total Loans	$ 57,953	$ 57,381	$ 55,445
Commercial, Financial and Agricultural [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	28,783	27,982	26,224
Commercial, Financial and Agricultural [Member] | AAA-AA [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	286		500
Commercial, Financial and Agricultural [Member] | A [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	1,267		1,010
Commercial, Financial and Agricultural [Member] | BBB-BB [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	25,684		23,361
Commercial, Financial and Agricultural [Member] | B [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	648		551
Commercial, Financial and Agricultural [Member] | CCC-C [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	898		802
RE Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	8,162		7,876
RE Commercial [Member] | AAA-AA [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	6		1
RE Commercial [Member] | A [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	2		57
RE Commercial [Member] | BBB-BB [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	7,604		7,267
RE Commercial [Member] | B [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	325		337
RE Commercial [Member] | CCC-C [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	225		214
Commercial Real Estate Construction Financing Receivable [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	1,142		1,007
Commercial Real Estate Construction Financing Receivable [Member] | AAA-AA [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	1		1
Commercial Real Estate Construction Financing Receivable [Member] | A [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans			1
Commercial Real Estate Construction Financing Receivable [Member] | BBB-BB [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	992		826
Commercial Real Estate Construction Financing Receivable [Member] | B [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	127		84
Commercial Real Estate Construction Financing Receivable [Member] | CCC-C [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	22		95
Commercial Leases [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	4,064		4,396
Commercial Leases [Member] | AAA-AA [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	535		805
Commercial Leases [Member] | A [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	516		448
Commercial Leases [Member] | BBB-BB [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	2,842		2,964
Commercial Leases [Member] | B [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	104		101
Commercial Leases [Member] | CCC-C [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	67		78
Commercial Loan Portfolios [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	42,151		39,503
Commercial Loan Portfolios [Member] | AAA-AA [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	828		1,307
Commercial Loan Portfolios [Member] | A [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	1,785		1,516
Commercial Loan Portfolios [Member] | BBB-BB [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	37,122		34,418
Commercial Loan Portfolios [Member] | B [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	1,204		1,073
Commercial Loan Portfolios [Member] | CCC-C [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	$ 1,212		$ 1,189

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Variable Interest Entities - Variable Interest Entities Information (Detail) (USD $)	3 Months Ended		12 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
LIHTC Funds [Member]
Variable Interest Entity [Line Items]
Variable Interest Entity, Carrying Amount of Assets, Consolidated VIEs	$ 1,000,000	$ 15,000,000	$ 1,000,000
Variable Interest Entity, Carrying Amount of Liabilities, Consolidated VIEs	2,000,000	15,000,000	1,000,000
Variable Interest Entity, Carrying Amount of Assets, Unconsolidated VIEs	55,000,000	97,000,000	55,000,000
LIHTC Investments [Member]
Variable Interest Entity [Line Items]
Variable Interest Entity, Carrying Amount of Assets, Unconsolidated VIEs	1,355,000,000	1,595,000,000	1,234,000,000
Variable Interest Entity, Carrying Amount of Liabilities, Unconsolidated VIEs	4,000,000	5,000,000	4,000,000
Maximum Exposure to Loss, Unconsolidated VIEs	509,000,000	492,000,000	521,000,000
Education Loan Securitization Trusts [Member]
Variable Interest Entity [Line Items]
Variable Interest Entity, Carrying Amount of Assets, Consolidated VIEs		1,912,000,000
Variable Interest Entity, Carrying Amount of Liabilities, Consolidated VIEs		$ 1,816,000,000

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Derivatives and Hedging Activities (Tables)

3 Months Ended

Mar. 31, 2015

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Fair Values, Volume of Activity and Gain (Loss) Information Related to Derivative Instruments

Our derivative instruments are included in “derivative assets” or “derivative liabilities” on the balance sheet, as indicated in the following table:

	March 31, 2015								December 31, 2014								March 31, 2014
			Fair Value								Fair Value								Fair Value
in millions	Notional Amount		Derivative Assets			Derivative Liabilities			Notional Amount		Derivative Assets			Derivative Liabilities			Notional Amount		Derivative Assets			Derivative Liabilities
Derivatives designated as hedging instruments:
Interest rate	$	16,802	$	315		$	14		$	15,095	$	272		$	26		$	14,479	$	277		$	40
Foreign exchange		339		20			—			371		8			—			312		5			1
Total		17,141		335			14			15,466		280			26			14,791		282			41
Derivatives not designated as hedging instruments:
Interest rate		41,913		728			678			43,771		665			618			44,156		688			647
Foreign exchange		5,544		152			147			4,024		85			81			4,653		55			51
Commodity		1,553		582			567			1,544		608			594			1,597		110			105
Credit		586		5			7			512		5			7			905		5			12
Total		49,596		1,467			1,399			49,851		1,363			1,300			51,311		858			815
Netting adjustments (a)		—		(1,071	)		(588	)		—		(1,034	)		(542	)		—		(713	)		(448	)
Net derivatives in the balance sheet		66,737		731			825			65,317		609			784			66,102		427			408
Other collateral (b)		—		(146	)		(244	)		—		(155	)		(241	)		—		(61	)		(325	)
Net derivative amounts	$	66,737	$	585		$	581		$	65,317	$	454		$	543		$	66,102	$	366		$	83

(a) Netting adjustments represent the amounts recorded to convert our derivative assets and liabilities from a gross basis to a net basis in accordance with the applicable accounting guidance.

(b) Other collateral represents the amount that cannot be used to offset our derivative assets and liabilities from a gross basis to a net basis in accordance with the applicable accounting guidance. The other collateral consists of securities and is exchanged under bilateral collateral and master netting agreements that allow us to offset the net derivative position with the related collateral. The application of the other collateral cannot reduce the net derivative position below zero. Therefore, excess other collateral, if any, is not reflected above.

Pre-Tax Net Gains (Losses) on Fair Value Hedges

The following table summarizes the pre-tax net gains (losses) on our fair value hedges for the three-month periods ended March 31, 2015, and March 31, 2014, and where they are recorded on the income statement.

	Three months ended March 31, 2015
in millions	Income Statement Location of Net Gains (Losses) on Derivative	Net Gains (Losses) on Derivative		Hedged Item		Income Statement Location of Net Gains (Losses) on Hedged Item		Net Gains (Losses) on Hedged Item
Interest rate	Other income	$	41		Long-term debt		Other income	$	(41	) (a)
Interest rate	Interest expense – Long-term debt		29
Total		$	70					$	(41	)
	Three months ended March 31, 2014
in millions	Income Statement Location of Net Gains (Losses) on Derivative	Net Gains (Losses) on Derivative		Hedged Item		Income Statement Location of Net Gains (Losses) on Hedged Item		Net Gains (Losses) on Hedged Item
Interest rate	Other income		—		Long-term debt		Other income		—	(a)
Interest rate	Interest expense – Long-term debt	$	33
Total		$	33						—

(a) Net gains (losses) on hedged items represent the change in fair value caused by fluctuations in interest rates.

Derivative Instrument Cash Flow Hedge Earning Recognized by Income Statement Location

The following table summarizes the pre-tax net gains (losses) on our cash flow and net investment hedges for the three-month periods ended March 31, 2015, and March 31, 2014, and where they are recorded on the income statement. The table includes the effective portion of net gains (losses) recognized in OCI during the period, the effective portion of net gains (losses) reclassified from OCI into income during the current period, and the portion of net gains (losses) recognized directly in income, representing the amount of hedge ineffectiveness.

	Three months ended March 31, 2015
in millions	Net Gains (Losses) Recognized in OCI (Effective Portion)			Income Statement Location of Net Gains (Losses) Reclassified From OCI Into Income (Effective Portion)		Net Gains (Losses) Reclassified From OCI Into Income (Effective Portion)			Income Statement Location of Net Gains (Losses) Recognized in Income (Ineffective Portion)		Net Gains (Losses) Recognized in Income (Ineffective Portion)
Cash Flow Hedges
Interest rate	$	54			Interest income – Loans	$	22			Other income		—
Interest rate		(2	)		Interest expense – Long-term debt		(1	)		Other income		—
Interest rate		(4	)		Investment banking and debt placement fees		—			Other income		—
Net Investment Hedges
Foreign exchange contracts		24			Other Income		—			Other income		—
Total	$	72				$	21					—
	Three months ended March 31, 2014
in millions	Net Gains (Losses) Recognized in OCI (Effective Portion)			Income Statement Location of Net Gains (Losses) Reclassified From OCI Into Income (Effective Portion)		Net Gains (Losses) Reclassified From OCI Into Income (Effective Portion)			Income Statement Location of Net Gains (Losses) Recognized in Income (Ineffective Portion)		Net Gains (Losses) Recognized in Income (Ineffective Portion)
Cash Flow Hedges
Interest rate	$	9			Interest income – Loans	$	15			Other income		—
Interest rate		(2	)		Interest expense – Long-term debt		(1	)		Other income		—
Interest rate		—			Investment banking and debt placement fees		—			Other income		—
Net Investment Hedges
Foreign exchange contracts		5			Other Income		—			Other income		—
Total	$	12				$	14					—

After-Tax Change in AOCI Resulting from Cash Flow Hedges

The after-tax change in AOCI resulting from cash flow and net investment hedges is as follows:

in millions	December 31, 2014			2015 Hedging Activity		Reclassification of Gains to Net Income			March 31, 2015
AOCI resulting from cash flow and net investment hedges	$	(8	)	$	45	$	(13	)	$	24

Pre-Tax Net Gains (Losses) on Derivatives Not Designated as Hedging Instruments

The following table summarizes the pre-tax net gains (losses) on our derivatives that are not designated as hedging instruments for the three-month periods ended March 31, 2015, and March 31, 2014, and where they are recorded on the income statement.

	Three months ended March 31, 2015								Three months ended March 31, 2014
	Corporate								Corporate
	Services		Other						Services		Other
in millions	Income		Income			Total			Income		Income			Total
NET GAINS (LOSSES)
Interest rate	$	4		—		$	4		$	4		—		$	4
Foreign exchange		8		—			8			9		—			9
Commodity		2		—			2			1		—			1
Credit		—	$	(4	)		(4	)		—	$	(3	)		(3	)
Total net gains (losses)	$	14	$	(4	)	$	10		$	14	$	(3	)	$	11

Largest Exposure to Individual Counterparty

The following table summarizes our largest exposure to an individual counterparty at the dates indicated.

	March 31,		December 31,		March 31,
in millions	2015		2014		2014
Largest gross exposure (derivative asset) to an individual counterparty	$	122	$	133	$	118
Collateral posted by this counterparty		91		100		43
Derivative liability with this counterparty		28		31		108
Collateral pledged to this counterparty		—		—		40
Net exposure after netting adjustments and collateral		3		2		7

Fair Value of Derivative Assets by Type

The following table summarizes the fair value of our derivative assets by type at the dates indicated. These assets represent our gross exposure to potential loss after taking into account the effects of bilateral collateral and master netting agreements and other means used to mitigate risk.

	March 31,		December 31,		March 31,
in millions	2015		2014		2014
Interest rate	$	755	$	607	$	606
Foreign exchange		58		41		20
Commodity		431		478		72
Credit		1		1		(1	)
Derivative assets before collateral		1,245		1,127		697
Less: Related collateral		514		518		270
Total derivative assets	$	731	$	609	$	427

Fair Value of Credit Derivatives Purchased and Sold

The following table summarizes the fair value of our credit derivatives purchased and sold by type as of March 31, 2015, December 31, 2014, and March 31, 2014. The fair value of credit derivatives presented below does not take into account the effects of bilateral collateral or master netting agreements.

	March 31, 2015									December 31, 2014								March 31, 2014
in millions	Purchased			Sold			Net			Purchased			Sold		Net			Purchased			Sold		Net
Single-name credit default swaps	$	(3	)		—		$	(3	)	$	(3	)		—	$	(3	)	$	(6	)		—	$	(6	)
Traded credit default swap indices		1			—			1			1			—		1			(2	)		—		(2	)
Other		1		$	(1	)		—			—			—		—			—			—		—
Total credit derivatives	$	(1	)	$	(1	)	$	(2	)	$	(2	)		—	$	(2	)	$	(8	)		—	$	(8	)

Credit Derivatives Sold and Held

The following table provides information on the types of credit derivatives sold by us and held on the balance sheet at March 31, 2015, December 31, 2014, and March 31, 2014. The notional amount represents the maximum amount that the seller could be required to pay. The payment/performance risk assessment is based on the default probabilities for the underlying reference entities’ debt obligations using a Moody’s credit ratings matrix known as Moody’s “Idealized” Cumulative Default Rates. The payment/performance risk shown in the table represents a weighted-average of the default probabilities for all reference entities in the respective portfolios. These default probabilities are directly correlated to the probability that we will have to make a payment under the credit derivative contracts.

	March 31, 2015							December 31, 2014							March 31, 2014
			Average		Payment /					Average		Payment /					Average		Payment /
	Notional		Term		Performance			Notional		Term		Performance			Notional		Term		Performance
dollars in millions	Amount		(Years)		Risk			Amount		(Years)		Risk			Amount		(Years)		Risk
Single-name credit default swaps	$	5		.47		.87	%	$	5		.72		.87	%	$	55		.52		22.28	%
Other		8		3.04		9.39			6		2.89		9.58			13		4.80		8.23
Total credit derivatives sold	$	13		—		—		$	11		—		—		$	68		—		—

Credit Risk Contingent Feature

The following table summarizes the additional cash and securities collateral that KeyBank would have been required to deliver under the ISDA Master Agreements had the credit risk contingent features been triggered for the derivative contracts in a net liability position as of March 31, 2015, December 31, 2014, and March 31, 2014. The additional collateral amounts were calculated based on scenarios under which KeyBank’s ratings are downgraded one, two, or three ratings as of March 31, 2015, December 31, 2014, and March 31, 2014, and take into account all collateral already posted. A similar calculation was performed for KeyCorp, and no additional collateral would have been required as of March 31, 2015, while additional collateral of less than $1 million and $2 million would have been required as of December 31, 2014, and March 31, 2014, respectively. For more information about the credit ratings for KeyBank and KeyCorp, see the discussion under the heading “Factors affecting liquidity” in the section entitled “Liquidity risk management” in Item 2 of this report.

	March 31, 2015				December 31, 2014				March 31, 2014
in millions	Moody’s		S&P		Moody’s		S&P		Moody’s		S&P
KeyBank’s long-term senior unsecured credit ratings		A3		A-		A3		A-		A3		A-
One rating downgrade	$	4	$	4	$	1	$	1	$	6	$	6
Two rating downgrades		4		4		1		1		11		11
Three rating downgrades		6		6		3		3		11		11

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Line of Business Results - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2015 Branch Industry
Nature Of Operations [Abstract]
Number of state branch network	12
Number of business units	7
Federal income tax rate	35.00%
State income tax rate	2.20%

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Asset Quality - Allowance for Loan and Lease Losses and Corresponding Loan Balances (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		12 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Financing Receivable, Allowance for Credit Losses [Line Items]
Individually Evaluated for Impairment Allowance	$ 49	$ 34	$ 40
Collectively Evaluated for Impairment Allowance	744	799	753
Purchased Credit Impaired Allowance	1	1	1
Total Loans	57,953	55,445	57,381
Individually Evaluated for Impairment Outstanding, Discontinued Operations	338	304	302
Collectively Evaluated for Impairment Outstanding, Discontinued Operations	57,603	55,125	57,066
Purchase Credit Impairment Outstanding, Discontinued Operations	12	16	13
Individually Evaluated for Impairment Allowance, Total ALLL - Including Discontinued Operations	50	35	41
Collectively Evaluated for Impairment Allowance, Total ALLL - Including Discontinued Operations	768	832	781
Purchased Credit Impaired Allowance, Total ALLL - Including Discontinued Operations	1	1	1
Loans Outstanding, Total ALLL - Including Discontinued Operations	60,172	59,827	59,676
Individually Evaluated for Impairment Outstanding, Total ALLL - Including Discontinued Operations	356	319	319
Collectively Evaluated for Impairment Outstanding, Total ALLL - Including Discontinued Operations	59,804	59,492	59,344
Purchased Credit Impaired Outstanding, Total ALLL - Including Discontinued Operations	12	16	13
Discontinued Operations [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total Loans	2,032	2,318	2,104
Individually Evaluated for Impairment Outstanding, Discontinued Operations	18	15	17
Collectively Evaluated for Impairment Outstanding, Discontinued Operations	2,201	4,367	2,278
Individually Evaluated for Impairment Allowance, Discontinued Operations	1	1	1
Collectively Evaluated for Impairment Allowance, Discontinued Operations	24	33	28
Purchase Credit Impairment Allowance, Discontinued Operations	0	0	0
Loans Outstanding, Discontinued Operations	2,219	4,382	2,295
Commercial, Financial and Agricultural [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Individually Evaluated for Impairment Allowance	20	2	9
Collectively Evaluated for Impairment Allowance	385	371	382
Total Loans	28,783	26,224	27,982
Individually Evaluated for Impairment Outstanding, Discontinued Operations	82	40	43
Collectively Evaluated for Impairment Outstanding, Discontinued Operations	28,701	26,184	27,939
Commercial Real Estate: Commercial Mortgage [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Individually Evaluated for Impairment Allowance	2	1	2
Collectively Evaluated for Impairment Allowance	146	160	146
Total Loans	8,162	7,877	8,047
Individually Evaluated for Impairment Outstanding, Discontinued Operations	20	25	21
Collectively Evaluated for Impairment Outstanding, Discontinued Operations	8,142	7,851	8,025
Purchase Credit Impairment Outstanding, Discontinued Operations		1	1
Commercial Real Estate: Construction [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Individually Evaluated for Impairment Allowance			1
Collectively Evaluated for Impairment Allowance	28	37	27
Total Loans	1,142	1,007	1,100
Individually Evaluated for Impairment Outstanding, Discontinued Operations	7	6	8
Collectively Evaluated for Impairment Outstanding, Discontinued Operations	1,135	1,001	1,092
Commercial Real Estate Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Individually Evaluated for Impairment Allowance	2	1	3
Collectively Evaluated for Impairment Allowance	174	197	173
Total Loans	9,304	8,884	9,147
Individually Evaluated for Impairment Outstanding, Discontinued Operations	27	31	29
Collectively Evaluated for Impairment Outstanding, Discontinued Operations	9,277	8,852	9,117
Purchase Credit Impairment Outstanding, Discontinued Operations		1	1
Commercial Lease Financing [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Collectively Evaluated for Impairment Allowance	55	62	56
Total Loans	4,064	4,396	4,252
Collectively Evaluated for Impairment Outstanding, Discontinued Operations	4,064	4,396	4,252
Commercial Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Individually Evaluated for Impairment Allowance	22	3	12
Collectively Evaluated for Impairment Allowance	614	630	611
Total Loans	42,151	39,504	41,381
Individually Evaluated for Impairment Outstanding, Discontinued Operations	109	71	72
Collectively Evaluated for Impairment Outstanding, Discontinued Operations	42,042	39,432	41,308
Purchase Credit Impairment Outstanding, Discontinued Operations		1	1
Real Estate - Residential Mortgage [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Individually Evaluated for Impairment Allowance	5	4	5
Collectively Evaluated for Impairment Allowance	15	22	17
Purchased Credit Impaired Allowance	1	1	1
Total Loans	2,231	2,183	2,225
Individually Evaluated for Impairment Outstanding, Discontinued Operations	55	54	55
Collectively Evaluated for Impairment Outstanding, Discontinued Operations	2,165	2,116	2,159
Purchase Credit Impairment Outstanding, Discontinued Operations	11	13	11
Home Equity: Key Community Bank [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Individually Evaluated for Impairment Allowance	16	16	16
Collectively Evaluated for Impairment Allowance	42	64	50
Total Loans	10,270	10,281	10,366
Individually Evaluated for Impairment Outstanding, Discontinued Operations	111	105	108
Collectively Evaluated for Impairment Outstanding, Discontinued Operations	10,158	10,174	10,257
Purchase Credit Impairment Outstanding, Discontinued Operations	1	2	1
Home Equity: Other [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Individually Evaluated for Impairment Allowance	2	2	2
Collectively Evaluated for Impairment Allowance	3	9	3
Total Loans	253	315	267
Individually Evaluated for Impairment Outstanding, Discontinued Operations	12	13	12
Collectively Evaluated for Impairment Outstanding, Discontinued Operations	241	302	255
Home Equity Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Individually Evaluated for Impairment Allowance	18	18	18
Collectively Evaluated for Impairment Allowance	45	73	53
Total Loans	10,523	10,596	10,633
Individually Evaluated for Impairment Outstanding, Discontinued Operations	123	118	120
Collectively Evaluated for Impairment Outstanding, Discontinued Operations	10,399	10,476	10,512
Purchase Credit Impairment Outstanding, Discontinued Operations	1	2	1
Consumer Other - Key Community Bank [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Collectively Evaluated for Impairment Allowance	21	25	22
Total Loans	1,547	1,436	1,560
Individually Evaluated for Impairment Outstanding, Discontinued Operations	3	4	4
Collectively Evaluated for Impairment Outstanding, Discontinued Operations	1,544	1,432	1,556
Consumer Credit Card Financing Receivable [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Individually Evaluated for Impairment Allowance		1
Collectively Evaluated for Impairment Allowance	32	31	33
Total Loans	727	698	754
Individually Evaluated for Impairment Outstanding, Discontinued Operations	4	4	4
Collectively Evaluated for Impairment Outstanding, Discontinued Operations	723	694	750
Consumer Marine [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Individually Evaluated for Impairment Allowance	4	7	5
Collectively Evaluated for Impairment Allowance	16	16	16
Total Loans	730	965	779
Individually Evaluated for Impairment Outstanding, Discontinued Operations	42	52	45
Collectively Evaluated for Impairment Outstanding, Discontinued Operations	688	913	734
Consumer Others [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Individually Evaluated for Impairment Allowance		1
Collectively Evaluated for Impairment Allowance	1	2	1
Total Loans	44	63	49
Individually Evaluated for Impairment Outstanding, Discontinued Operations	2	1	2
Collectively Evaluated for Impairment Outstanding, Discontinued Operations	42	62	47
Consumer Other [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Individually Evaluated for Impairment Allowance	4	8	5
Collectively Evaluated for Impairment Allowance	17	18	17
Total Loans	774	1,028	828
Individually Evaluated for Impairment Outstanding, Discontinued Operations	44	53	47
Collectively Evaluated for Impairment Outstanding, Discontinued Operations	730	975	781
Consumer Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Individually Evaluated for Impairment Allowance	27	31	28
Collectively Evaluated for Impairment Allowance	130	169	142
Purchased Credit Impaired Allowance	1	1	1
Total Loans	15,802	15,941	16,000
Individually Evaluated for Impairment Outstanding, Discontinued Operations	229	233	230
Collectively Evaluated for Impairment Outstanding, Discontinued Operations	15,561	15,693	15,758
Purchase Credit Impairment Outstanding, Discontinued Operations	$ 12	$ 15	$ 12

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Securities Financing Activities

3 Months Ended

Mar. 31, 2015

Brokers and Dealers [Abstract]

Securities Financing Activities

12. Securities Financing Activities

We enter into repurchase and reverse repurchase agreements and securities borrowed transactions (securities financing agreements) primarily to finance our inventory positions, acquire securities to cover short positions, and to settle other securities obligations. We account for these securities financing agreements as collateralized financing transactions. Repurchase and reverse repurchase agreements are recorded on the balance sheet at the amounts at which the securities will be subsequently sold or repurchased. Securities borrowed transactions are recorded on the balance sheet at the amounts of cash collateral advanced. While our securities financing agreements incorporate a right of set off, the assets and liabilities are reported on a gross basis. Repurchase agreements and securities borrowed transactions are included in “Short-term investments” on the balance sheet; reverse repurchase agreements are included in “Federal funds purchased and securities sold under repurchase agreements.”

During the third quarter of 2014, our broker-dealer subsidiary, KeyBanc Capital Markets, Inc. (“KBCM”), moved from a self-clearing organization to using a third-party organization for clearing purposes. In connection with this change, KBCM became an introducing broker-dealer, whereby it no longer needs to fund its business operations by entering into repurchase, reverse repurchase, or securities borrowed agreements. KBCM had no securities financing agreements outstanding at March 31, 2015.

The following table summarizes our securities financing agreements at March 31, 2015, December 31, 2014, and March 31, 2014:

	March 31, 2015
in millions	Gross Amount Presented in Balance Sheet		Netting Adjustments (a)			Collateral (b)			Net Amounts
Offsetting of financial assets:
Reverse repurchase agreements	$	2	$	(2	)		—			—
Securities borrowed		—		—			—			—
Total	$	2	$	(2	)		—			—
Offsetting of financial liabilities:
Repurchase agreements	$	4	$	(2	)	$	(2	)		—
Total	$	4	$	(2	)	$	(2	)		—
	December 31, 2014
in millions	Gross Amount Presented in Balance Sheet		Netting Adjustments (a)			Collateral (b)			Net Amounts
Offsetting of financial assets:
Reverse repurchase agreements	$	3	$	(1	)	$	(2	)		—
Securities borrowed		—		—			—			—
Total	$	3	$	(1	)	$	(2	)		—
Offsetting of financial liabilities:
Repurchase agreements	$	1	$	(1	)		—			—
Total	$	1	$	(1	)		—			—
	March 31, 2014
in millions	Gross Amount Presented in Balance Sheet		Netting Adjustments (a)			Collateral (b)			Net Amounts
Offsetting of financial assets:
Reverse repurchase agreements	$	442	$	(306	)	$	(126	)	$	10
Securities borrowed		3		—			(3	)		—
Total	$	445	$	(306	)	$	(129	)	$	10
Offsetting of financial liabilities:
Repurchase agreements	$	568	$	(306	)	$	(262	)		—
Total	$	568	$	(306	)	$	(262	)		—

(a) Netting adjustments take into account the impact of master netting agreements that allow us to settle with a single counterparty on a net basis.

(b) These adjustments take into account the impact of bilateral collateral agreements that allow us to offset the net positions with the related collateral. The application of collateral cannot reduce the net position below zero. Therefore, excess collateral, if any, is not reflected above.

Like other financing transactions, securities financing agreements contain an element of credit risk. To mitigate and manage credit risk exposure, we generally enter into master netting agreements and other collateral arrangements that give us the right, in the event of default, to liquidate collateral held and to offset receivables and payables with the same counterparty. Additionally, we establish and monitor limits on our counterparty credit risk exposure by product type. For the reverse repurchase agreements, we monitor the value of the underlying securities we have received from counterparties and either request additional collateral or return a portion of the collateral based on the value of those securities. We generally hold collateral in the form of highly rated securities issued by the U.S. Treasury and fixed income securities. In addition, we may need to provide collateral to counterparties under our repurchase agreements and securities borrowed transactions. In general, the collateral we pledge and receive can be sold or repledged by the secured parties.

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Mortgage Servicing Assets (Tables)

3 Months Ended

Mar. 31, 2015

Text Block [Abstract]

Changes in Carrying Amount of Mortgage Servicing Assets

We originate and periodically sell commercial mortgage loans but continue to service those loans for the buyers. We also may purchase the right to service commercial mortgage loans for other lenders. We record a servicing asset if we purchase or retain the right to service loans in exchange for servicing fees that exceed the going market servicing rate and are considered more than adequate compensation for servicing. Changes in the carrying amount of mortgage servicing assets are summarized as follows:

	Three months ended March 31,
in millions	2015			2014
Balance at beginning of period	$	323		$	332
Servicing retained from loan sales		10			6
Purchases		15			7
Amortization		(24	)		(25	)
Balance at end of period	$	324		$	320
Fair value at end of period	$	423		$	373

Schedule of Range and Weighted-Average of Significant Unobservable Inputs

The range and weighted-average of the significant unobservable inputs used to fair value our mortgage servicing assets at March 31, 2015, and March 31, 2014, along with the valuation techniques, are shown in the following table:

March 31, 2015 dollars in millions	Valuation Technique	Significant Unobservable Input	Range (Weighted-Average)
Mortgage servicing assets	Discounted cash flow	Prepayment speed		1.60 - 13.10% (4.80%)
		Expected defaults		1.00 - 3.00% (1.80%)
		Residual cash flows discount rate		7.00 - 15.00% (7.80%)
		Escrow earn rate		0.70 - 3.10% (1.90%)
		Servicing cost		$150 - $2,735 ($1,059)
		Loan assumption rate		0.20 - 3.00% (1.43%)
		Percentage late		0.00 - 2.00% (0.33%)
March 31, 2014 dollars in millions	Valuation Technique	Significant Unobservable Input	Range (Weighted-Average)
Mortgage servicing assets	Discounted cash flow	Prepayment speed		1.90 - 11.30% (4.90%)
		Expected defaults		1.00 - 3.00% (2.00%)
		Residual cash flows discount rate		7.00 - 14.00% (7.80%)
		Escrow earn rate		0.40 - 3.10% (1.80%)
		Servicing cost		$150 - $2,600 ($963)
		Loan assumption rate		0.20 - 3.00% (1.58%)
		Percentage late		0.00 - 2.00% (0.33%)

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Mortgage Servicing Assets - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Servicing Asset [Abstract]
Increase (decrease) in value assigned to escrow deposits	(1.00%)
Increase (decrease) in the fair value of mortgage servicing assets	$ 54
Increase (decrease) in assumed default rate of commercial mortgage loans	1.00%
Increase (decrease) in the fair value of mortgage servicing assets due to change in the assumed default rate of commercial mortgage loans	7
Contractual fee income from servicing commercial mortgage loans	$ 13	$ 15

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Trust Preferred Securities Issued by Unconsolidated Subsidiaries - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015
Trust Preferred Securities [Abstract]
Percentage of trust preferred securities issued by the KeyCorp of Tier 1 capital	0.90%
Trust preferred securities issued by the KeyCorp of Tier 1 capital	$ 85

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Trust Preferred Securities Issued by Unconsolidated Subsidiaries

3 Months Ended

Mar. 31, 2015

Text Block [Abstract]

Trust Preferred Securities Issued by Unconsolidated Subsidiaries

14. Trust Preferred Securities Issued by Unconsolidated Subsidiaries

We own the outstanding common stock of business trusts formed by us that issued corporation-obligated mandatorily redeemable trust preferred securities. The trusts used the proceeds from the issuance of their trust preferred securities and common stock to buy debentures issued by KeyCorp. These debentures are the trusts’ only assets; the interest payments from the debentures finance the distributions paid on the mandatorily redeemable trust preferred securities.

We unconditionally guarantee the following payments or distributions on behalf of the trusts:

• required distributions on the trust preferred securities;

• the redemption price when a capital security is redeemed; and

• the amounts due if a trust is liquidated or terminated.

The Regulatory Capital Rules, discussed in “Supervision and regulation” in Item 2 of this report, implement a phase-out of trust preferred securities as Tier 1 capital, consistent with the requirements of the Dodd-Frank Act. For “standardized approach” banking organizations such as Key, the phase-out period began on January 1, 2015, and by 2016 will require us to treat our mandatorily redeemable trust preferred securities as Tier 2 capital.

As of March 31, 2015, the trust preferred securities issued by the KeyCorp capital trusts represent $85 million, or .9%, of our total qualifying Tier 1 capital, net of goodwill.

The trust preferred securities, common stock, and related debentures are summarized as follows:

dollars in millions	Trust Preferred Securities, Net of Discount (a)		Common Stock		Principal Amount of Debentures, Net of Discount (b)		Interest Rate of Trust Preferred Securities and Debentures (c)			Maturity of Trust Preferred Securities and Debentures
March 31, 2015
KeyCorp Capital I	$	156	$	6	$	162		.995	%		2028
KeyCorp Capital II		112		4		116		6.875			2029
KeyCorp Capital III		146		4		150		7.750			2029
Total	$	414	$	14	$	428		4.968	%		—
December 31, 2014	$	408	$	14	$	422		4.926	%		—
March 31, 2014	$	391	$	14	$	405		4.823	%		—

(a) The trust preferred securities must be redeemed when the related debentures mature, or earlier if provided in the governing indenture. Each issue of trust preferred securities carries an interest rate identical to that of the related debenture. Certain trust preferred securities include basis adjustments related to fair value hedges totaling $74 million at March 31, 2015, $68 million at December 31, 2014, and $51 million at March 31, 2014. See Note 7 (“Derivatives and Hedging Activities”) for an explanation of fair value hedges.

(b) We have the right to redeem these debentures. If the debentures purchased by KeyCorp Capital I are redeemed before they mature, the redemption price will be the principal amount, plus any accrued but unpaid interest. If the debentures purchased by KeyCorp Capital II or KeyCorp Capital III are redeemed before they mature, the redemption price will be the greater of: (i) the principal amount, plus any accrued but unpaid interest, or (ii) the sum of the present values of principal and interest payments discounted at the Treasury Rate (as defined in the applicable indenture), plus 20 basis points for KeyCorp Capital II or 25 basis points for KeyCorp Capital III or 50 basis points in the case of redemption upon either a tax or a capital treatment event for either KeyCorp Capital II or KeyCorp Capital III, plus any accrued but unpaid interest. The principal amount of certain debentures includes basis adjustments related to fair value hedges totaling $74 million at March 31, 2015, $68 million at December 31, 2014, and $51 million at March 31, 2014. See Note 7 for an explanation of fair value hedges. The principal amount of debentures, net of discounts, is included in “long-term debt” on the balance sheet.

(c) The interest rates for the trust preferred securities issued by KeyCorp Capital II and KeyCorp Capital III are fixed. KeyCorp Capital I has a floating interest rate, equal to three-month LIBOR plus 74 basis points, that reprices quarterly. The total interest rates are weighted-average rates.

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Fair Value Measurements - Fair Value of Direct and Indirect Investments, Related Unfunded Commitments and Financial Support Provided (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Indirect Investments [Member]
Fair Value, Estimate Not Practicable, Financial Statement Captions [Line Items]
Fair Value	$ 9
Unfunded Commitments	1
Indirect Investments [Member] | Passive Funds [Member]
Fair Value, Estimate Not Practicable, Financial Statement Captions [Line Items]
Fair Value	9
Unfunded Commitments	1
Principal Investments [Member]
Fair Value, Estimate Not Practicable, Financial Statement Captions [Line Items]
Fair Value	375
Unfunded Commitments	57
Funded Commitments	2	2
Funded Other	1	1
Principal Investments [Member] | Indirect Investments [Member]
Fair Value, Estimate Not Practicable, Financial Statement Captions [Line Items]
Fair Value	301
Unfunded Commitments	57
Funded Commitments	2	2
Principal Investments [Member] | Direct Investments [Member]
Fair Value, Estimate Not Practicable, Financial Statement Captions [Line Items]
Fair Value	74
Funded Other	$ 1	$ 1

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Acquisitions and Discontinued Operations - Principal and Fair Value Amounts for Trust Loans at Fair Value, Portfolio Loans at Fair Value, and Portfolio Loans at Carrying Value (Detail) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014	Mar. 31, 2014
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Accruing loans past due 90 days or more	$ 111	$ 96	$ 89
Trust [Member] | Fair Value [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Accruing loans past due 90 days or more			25
Loans placed on nonaccrual status			10
Accruing loans past due 90 days or more			25
Loans placed on nonaccrual status			10
Portfolio [Member] | Fair Value [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Accruing loans past due 90 days or more	5	5	7
Accruing loans past due 90 days or more	5	5	7
Portfolio [Member] | Carrying Amount [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Accruing loans past due 90 days or more	27	29	32
Loans placed on nonaccrual status	$ 8	$ 11	$ 8

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Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Statement of Comprehensive Income [Abstract]
Income taxes effect on net unrealized (losses) gains on securities available for sale	$ 33	$ 17
Income taxes effect on net unrealized (losses) gains on derivative financial instruments	19	(1)
Income taxes effect on foreign currency translation adjustments	(8)	(4)
Income taxes effect on net pension and postretirement benefit costs	$ 1	$ 2

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Consolidated Balance Sheets (Parenthetical) (USD $) In Millions, except Share data, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014	Mar. 31, 2014
Held-to-maturity securities, fair value	$ 5,003	$ 4,974	$ 4,733
Unearned income on loans	665	682	776
Consolidated guaranteed funds VIEs, for accrued income and other assets	1
Loan securitization trust VIEs	187
Aggregate amount of certificates of deposit, denominations	$ 100,000	$ 100,000	$ 100,000
Preferred stock, par value	$ 1	$ 1	$ 1
Preferred stock, shares authorized	25,000,000	25,000,000	25,000,000
Common shares, par value	$ 1	$ 1	$ 1
Common shares, shares authorized	1,400,000,000	1,400,000,000	1,400,000,000
Common shares, shares issued	1,016,969,905	1,016,969,905	1,016,969,905
Treasury stock, shares	166,049,974	157,566,493	132,100,665
Series A Preferred Stock [Member]
Preferred stock, liquidation preference	$ 100	$ 100	$ 100
Preferred stock, shares authorized	7,475,000	7,475,000	7,475,000
Preferred stock, shares issued, Total	2,900,234	2,904,839	2,904,839
Preferred stock, dividend rate	7.75%	7.75%	7.75%

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Derivatives and Hedging Activities

3 Months Ended

Mar. 31, 2015

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives and Hedging Activities

7. Derivatives and Hedging Activities

We are a party to various derivative instruments, mainly through our subsidiary, KeyBank. Derivative instruments are contracts between two or more parties that have a notional amount and an underlying variable, require a small or no net investment, and allow for the net settlement of positions. A derivative’s notional amount serves as the basis for the payment provision of the contract, and takes the form of units, such as shares or dollars. A derivative’s underlying variable is a specified interest rate, security price, commodity price, foreign exchange rate, index, or other variable. The interaction between the notional amount and the underlying variable determines the number of units to be exchanged between the parties and influences the fair value of the derivative contract.

The primary derivatives that we use are interest rate swaps, caps, floors, and futures; foreign exchange contracts; commodity derivatives; and credit derivatives. Generally, these instruments help us manage exposure to interest rate risk, mitigate the credit risk inherent in the loan portfolio, hedge against changes in foreign currency exchange rates, and meet client financing and hedging needs. As further discussed in this note:

• interest rate risk represents the possibility that the EVE or net interest income will be adversely affected by fluctuations in interest rates;

• credit risk is the risk of loss arising from an obligor’s inability or failure to meet contractual payment or performance terms; and

• foreign exchange risk is the risk that an exchange rate will adversely affect the fair value of a financial instrument.

Derivative assets and liabilities are recorded at fair value on the balance sheet, after taking into account the effects of bilateral collateral and master netting agreements. These agreements allow us to settle all derivative contracts held with a single counterparty on a net basis, and to offset net derivative positions with related cash collateral, where applicable. As a result, we could have derivative contracts with negative fair values included in derivative assets on the balance sheet and contracts with positive fair values included in derivative liabilities.

At March 31, 2015, after taking into account the effects of bilateral collateral and master netting agreements, we had $93 million of derivative assets and a positive $25 million of derivative liabilities that relate to contracts entered into for hedging purposes. Our hedging derivative liabilities are in an asset position largely because we have contracts with positive fair values as a result of master netting agreements. As of the same date, after taking into account the effects of bilateral collateral and master netting agreements and a reserve for potential future losses, we had derivative assets of $638 million and derivative liabilities of $850 million that were not designated as hedging instruments.

Additional information regarding our accounting policies for derivatives is provided in Note 1 (“Summary of Significant Accounting Policies”) under the heading “Derivatives” beginning on page 121 of our 2014 Form 10-K.

Derivatives Designated in Hedge Relationships

Net interest income and the EVE change in response to changes in the mix of assets, liabilities, and off-balance sheet instruments; associated interest rates tied to each instrument; differences in the repricing and maturity characteristics of interest-earning assets and interest-bearing liabilities; and changes in interest rates. We utilize derivatives that have been designated as part of a hedge relationship in accordance with the applicable accounting guidance to minimize the exposure and volatility of net interest income and EVE to interest rate fluctuations. The primary derivative instruments used to manage interest rate risk are interest rate swaps, which convert the contractual interest rate index of agreed-upon amounts of assets and liabilities (i.e., notional amounts) to another interest rate index.

We designate certain “receive fixed/pay variable” interest rate swaps as fair value hedges. These contracts convert certain fixed-rate long-term debt into variable-rate obligations, thereby modifying our exposure to changes in interest rates. As a result, we receive fixed-rate interest payments in exchange for making variable-rate payments over the lives of the contracts without exchanging the notional amounts.

Similarly, we designate certain “receive fixed/pay variable” interest rate swaps as cash flow hedges. These contracts effectively convert certain floating-rate loans into fixed-rate loans to reduce the potential adverse effect of interest rate decreases on future interest income. Again, we receive fixed-rate interest payments in exchange for making variable-rate payments over the lives of the contracts without exchanging the notional amounts.

We also designate certain “pay fixed/receive variable” interest rate swaps as cash flow hedges. These swaps convert certain floating-rate debt into fixed-rate debt. We also use these swaps to manage the interest rate risk associated with anticipated sales of certain commercial real estate loans. The swaps protect against the possible short-term decline in the value of the loans that could result from changes in interest rates between the time they are originated and the time they are sold.

Interest rate swaps are also used to hedge the floating-rate debt that funds fixed-rate leases entered into by our equipment finance line of business. These swaps are designated as cash flow hedges to mitigate the interest rate mismatch between the fixed-rate lease cash flows and the floating-rate payments on the debt. These hedge relationships were terminated during the quarter ended March 31, 2014.

We use foreign currency forward transactions to hedge the foreign currency exposure of our net investment in various foreign equipment finance entities. These entities are denominated in a non-U.S. currency. These swaps are designated as net investment hedges to mitigate the exposure of measuring the net investment at the spot foreign exchange rate.

Derivatives Not Designated in Hedge Relationships

On occasion, we enter into interest rate swap contracts to manage economic risks but do not designate the instruments in hedge relationships. Excluding contracts addressing customer exposures, the amount of derivatives hedging risks on an economic basis at March 31, 2015, was not significant.

Like other financial services institutions, we originate loans and extend credit, both of which expose us to credit risk. We actively manage our overall loan portfolio and the associated credit risk in a manner consistent with asset quality objectives and concentration risk tolerances to mitigate portfolio credit risk. Purchasing credit default swaps enables us to transfer to a third party a portion of the credit risk associated with a particular extension of credit, including situations where there is a forecasted sale of loans. Beginning in the first quarter of 2014, we began purchasing credit default swaps to reduce the credit risk associated with the debt securities held in our trading portfolio. We may also sell credit derivatives to offset our purchased credit default swap position prior to maturity. Although we use credit default swaps for risk management purposes, they are not treated as hedging instruments.

We also enter into derivative contracts for other purposes, including:

• interest rate swap, cap, and floor contracts entered into generally to accommodate the needs of commercial loan clients;

• energy and base metal swap and options contracts entered into to accommodate the needs of clients;

• futures contracts and positions with third parties that are intended to offset or mitigate the interest rate or market risk related to client positions discussed above; and

• foreign exchange forward contracts and options entered into primarily to accommodate the needs of clients.

These contracts are not designated as part of hedge relationships.

Fair Values, Volume of Activity, and Gain/Loss Information Related to Derivative Instruments

The following table summarizes the fair values of our derivative instruments on a gross and net basis as of March 31, 2015, December 31, 2014, and March 31, 2014. The change in the notional amounts of these derivatives by type from December 31, 2014, to March 31, 2015, indicates the volume of our derivative transaction activity during the first quarter of 2015. The notional amounts are not affected by bilateral collateral and master netting agreements. The derivative asset and liability balances are presented on a gross basis, prior to the application of bilateral collateral and master netting agreements. Total derivative assets and liabilities are adjusted to take into account the impact of legally enforceable master netting agreements that allow us to settle all derivative contracts with a single counterparty on a net basis and to offset the net derivative position with the related cash collateral. Where master netting agreements are not in effect or are not enforceable under bankruptcy laws, we do not adjust those derivative assets and liabilities with counterparties. Securities collateral related to legally enforceable master netting agreements is not offset on the balance sheet. Our derivative instruments are included in “derivative assets” or “derivative liabilities” on the balance sheet, as indicated in the following table:

	March 31, 2015								December 31, 2014								March 31, 2014
			Fair Value								Fair Value								Fair Value
in millions	Notional Amount		Derivative Assets			Derivative Liabilities			Notional Amount		Derivative Assets			Derivative Liabilities			Notional Amount		Derivative Assets			Derivative Liabilities
Derivatives designated as hedging instruments:
Interest rate	$	16,802	$	315		$	14		$	15,095	$	272		$	26		$	14,479	$	277		$	40
Foreign exchange		339		20			—			371		8			—			312		5			1
Total		17,141		335			14			15,466		280			26			14,791		282			41
Derivatives not designated as hedging instruments:
Interest rate		41,913		728			678			43,771		665			618			44,156		688			647
Foreign exchange		5,544		152			147			4,024		85			81			4,653		55			51
Commodity		1,553		582			567			1,544		608			594			1,597		110			105
Credit		586		5			7			512		5			7			905		5			12
Total		49,596		1,467			1,399			49,851		1,363			1,300			51,311		858			815
Netting adjustments (a)		—		(1,071	)		(588	)		—		(1,034	)		(542	)		—		(713	)		(448	)
Net derivatives in the balance sheet		66,737		731			825			65,317		609			784			66,102		427			408
Other collateral (b)		—		(146	)		(244	)		—		(155	)		(241	)		—		(61	)		(325	)
Net derivative amounts	$	66,737	$	585		$	581		$	65,317	$	454		$	543		$	66,102	$	366		$	83

(a) Netting adjustments represent the amounts recorded to convert our derivative assets and liabilities from a gross basis to a net basis in accordance with the applicable accounting guidance.

(b) Other collateral represents the amount that cannot be used to offset our derivative assets and liabilities from a gross basis to a net basis in accordance with the applicable accounting guidance. The other collateral consists of securities and is exchanged under bilateral collateral and master netting agreements that allow us to offset the net derivative position with the related collateral. The application of the other collateral cannot reduce the net derivative position below zero. Therefore, excess other collateral, if any, is not reflected above.

Fair value hedges. Instruments designated as fair value hedges are recorded at fair value and included in “derivative assets” or “derivative liabilities” on the balance sheet. The effective portion of a change in the fair value of an instrument designated as a fair value hedge is recorded in earnings at the same time as a change in fair value of the hedged item, resulting in no effect on net income. The ineffective portion of a change in the fair value of such a hedging instrument is recorded in “other income” on the income statement with no corresponding offset. During the three-month period ended March 31, 2015, we did not exclude any portion of these hedging instruments from the assessment of hedge effectiveness. While there is some immaterial ineffectiveness in our hedging relationships, all of our fair value hedges remained “highly effective” as of March 31, 2015.

The following table summarizes the pre-tax net gains (losses) on our fair value hedges for the three-month periods ended March 31, 2015, and March 31, 2014, and where they are recorded on the income statement.

	Three months ended March 31, 2015
in millions	Income Statement Location of Net Gains (Losses) on Derivative	Net Gains (Losses) on Derivative		Hedged Item		Income Statement Location of Net Gains (Losses) on Hedged Item		Net Gains (Losses) on Hedged Item
Interest rate	Other income	$	41		Long-term debt		Other income	$	(41	) (a)
Interest rate	Interest expense – Long-term debt		29
Total		$	70					$	(41	)
	Three months ended March 31, 2014
in millions	Income Statement Location of Net Gains (Losses) on Derivative	Net Gains (Losses) on Derivative		Hedged Item		Income Statement Location of Net Gains (Losses) on Hedged Item		Net Gains (Losses) on Hedged Item
Interest rate	Other income		—		Long-term debt		Other income		—	(a)
Interest rate	Interest expense – Long-term debt	$	33
Total		$	33						—

(a) Net gains (losses) on hedged items represent the change in fair value caused by fluctuations in interest rates.

Cash flow hedges. Instruments designated as cash flow hedges are recorded at fair value and included in “derivative assets” or “derivative liabilities” on the balance sheet. Initially, the effective portion of a gain or loss on a cash flow hedge is recorded as a component of AOCI on the balance sheet. This amount is subsequently reclassified into income when the hedged transaction affects earnings (e.g., when we pay variable-rate interest on debt, receive variable-rate interest on commercial loans, or sell commercial real estate loans). The ineffective portion of cash flow hedging transactions is included in “other income” on the income statement. During the three-month period ended March 31, 2015, we did not exclude any portion of these hedging instruments from the assessment of hedge effectiveness. While there is some immaterial ineffectiveness in our hedging relationships, all of our cash flow hedges remained “highly effective” as of March 31, 2015.

Considering the interest rates, yield curves, and notional amounts as of March 31, 2015, we would expect to reclassify an estimated $29 million of net losses on derivative instruments from AOCI to income during the next 12 months for our cash flow hedges. In addition, we expect to reclassify approximately $2 million of net gains related to terminated cash flow hedges from AOCI to income during the next 12 months. As of March 31, 2015, the maximum length of time over which we hedge forecasted transactions is 13 years.

Net investment hedges. We enter into foreign currency forward contracts to hedge our exposure to changes in the carrying value of our investments as a result of changes in the related foreign exchange rates. Instruments designated as net investment hedges are recorded at fair value and included in “derivative assets” or “derivative liabilities” on the balance sheet. Initially, the effective portion of a gain or loss on a net investment hedge is recorded as a component of AOCI on the balance sheet when the terms of the derivative match the notional and currency risk being hedged. The effective portion is subsequently reclassified into income when the hedged transaction affects earnings (e.g., when we dispose of or liquidate a foreign subsidiary). At March 31, 2015, AOCI reflected unrecognized after-tax gains totaling $33 million related to cumulative changes in the fair value of our net investment hedges, which offset the unrecognized after-tax foreign currency losses on net investment balances. The ineffective portion of net investment hedging transactions is included in “other income” on the income statement, but there was no net investment hedge ineffectiveness as of March 31, 2015. We did not exclude any portion of our hedging instruments from the assessment of hedge effectiveness during the three-month period ended March 31, 2015.

The following table summarizes the pre-tax net gains (losses) on our cash flow and net investment hedges for the three-month periods ended March 31, 2015, and March 31, 2014, and where they are recorded on the income statement. The table includes the effective portion of net gains (losses) recognized in OCI during the period, the effective portion of net gains (losses) reclassified from OCI into income during the current period, and the portion of net gains (losses) recognized directly in income, representing the amount of hedge ineffectiveness.

	Three months ended March 31, 2015
in millions	Net Gains (Losses) Recognized in OCI (Effective Portion)			Income Statement Location of Net Gains (Losses) Reclassified From OCI Into Income (Effective Portion)		Net Gains (Losses) Reclassified From OCI Into Income (Effective Portion)			Income Statement Location of Net Gains (Losses) Recognized in Income (Ineffective Portion)		Net Gains (Losses) Recognized in Income (Ineffective Portion)
Cash Flow Hedges
Interest rate	$	54			Interest income – Loans	$	22			Other income		—
Interest rate		(2	)		Interest expense – Long-term debt		(1	)		Other income		—
Interest rate		(4	)		Investment banking and debt placement fees		—			Other income		—
Net Investment Hedges
Foreign exchange contracts		24			Other Income		—			Other income		—
Total	$	72				$	21					—
	Three months ended March 31, 2014
in millions	Net Gains (Losses) Recognized in OCI (Effective Portion)			Income Statement Location of Net Gains (Losses) Reclassified From OCI Into Income (Effective Portion)		Net Gains (Losses) Reclassified From OCI Into Income (Effective Portion)			Income Statement Location of Net Gains (Losses) Recognized in Income (Ineffective Portion)		Net Gains (Losses) Recognized in Income (Ineffective Portion)
Cash Flow Hedges
Interest rate	$	9			Interest income – Loans	$	15			Other income		—
Interest rate		(2	)		Interest expense – Long-term debt		(1	)		Other income		—
Interest rate		—			Investment banking and debt placement fees		—			Other income		—
Net Investment Hedges
Foreign exchange contracts		5			Other Income		—			Other income		—
Total	$	12				$	14					—

The after-tax change in AOCI resulting from cash flow and net investment hedges is as follows:

in millions	December 31, 2014			2015 Hedging Activity		Reclassification of Gains to Net Income			March 31, 2015
AOCI resulting from cash flow and net investment hedges	$	(8	)	$	45	$	(13	)	$	24

Nonhedging instruments. Our derivatives that are not designated as hedging instruments are recorded at fair value in “derivative assets” and “derivative liabilities” on the balance sheet. Adjustments to the fair values of these instruments, as well as any premium paid or received, are included in “corporate services income” and “other income” on the income statement.

The following table summarizes the pre-tax net gains (losses) on our derivatives that are not designated as hedging instruments for the three-month periods ended March 31, 2015, and March 31, 2014, and where they are recorded on the income statement.

	Three months ended March 31, 2015								Three months ended March 31, 2014
	Corporate								Corporate
	Services		Other						Services		Other
in millions	Income		Income			Total			Income		Income			Total
NET GAINS (LOSSES)
Interest rate	$	4		—		$	4		$	4		—		$	4
Foreign exchange		8		—			8			9		—			9
Commodity		2		—			2			1		—			1
Credit		—	$	(4	)		(4	)		—	$	(3	)		(3	)
Total net gains (losses)	$	14	$	(4	)	$	10		$	14	$	(3	)	$	11

Counterparty Credit Risk

Like other financial instruments, derivatives contain an element of credit risk. This risk is measured as the expected positive replacement value of the contracts. We use several means to mitigate and manage exposure to credit risk on derivative contracts. We generally enter into bilateral collateral and master netting agreements that provide for the net settlement of all contracts with a single counterparty in the event of default. Additionally, we monitor counterparty credit risk exposure on each contract to determine appropriate limits on our total credit exposure across all product types. We review our collateral positions on a daily basis and exchange collateral with our counterparties in accordance with standard ISDA documentation, central clearing rules, and other related agreements. We generally hold collateral in the form of cash and highly rated securities issued by the U.S. Treasury, government-sponsored enterprises, or GNMA. The cash collateral netted against derivative assets on the balance sheet totaled $514 million at March 31, 2015, $518 million at December 31, 2014, and $270 million at March 31, 2014. The cash collateral netted against derivative liabilities totaled $31 million at March 31, 2015, $26 million at December 31, 2014, and $5 million at March 31, 2014. The relevant agreements that allow us to access the central clearing organizations to clear derivative transactions are not considered to be qualified master netting agreements. Therefore, we cannot net derivative contracts or offset those contracts with related cash collateral with these counterparties. At March 31, 2015, we posted $68 million of cash collateral with clearing organizations and held $7 million of cash collateral from clearing organizations. This additional cash collateral is included in “accrued income and other assets” and “accrued expense and other liabilities” on the balance sheet.

The following table summarizes our largest exposure to an individual counterparty at the dates indicated.

	March 31,		December 31,		March 31,
in millions	2015		2014		2014
Largest gross exposure (derivative asset) to an individual counterparty	$	122	$	133	$	118
Collateral posted by this counterparty		91		100		43
Derivative liability with this counterparty		28		31		108
Collateral pledged to this counterparty		—		—		40
Net exposure after netting adjustments and collateral		3		2		7

The following table summarizes the fair value of our derivative assets by type at the dates indicated. These assets represent our gross exposure to potential loss after taking into account the effects of bilateral collateral and master netting agreements and other means used to mitigate risk.

	March 31,		December 31,		March 31,
in millions	2015		2014		2014
Interest rate	$	755	$	607	$	606
Foreign exchange		58		41		20
Commodity		431		478		72
Credit		1		1		(1	)
Derivative assets before collateral		1,245		1,127		697
Less: Related collateral		514		518		270
Total derivative assets	$	731	$	609	$	427

We enter into derivative transactions with two primary groups: broker-dealers and banks, and clients. Since these groups have different economic characteristics, we have different methods for managing counterparty credit exposure and credit risk.

We enter into transactions with broker-dealers and banks for various risk management purposes. These types of transactions generally are high dollar volume. We generally enter into bilateral collateral and master netting agreements with these counterparties. We began clearing certain types of derivative transactions with these counterparties in June 2013, whereby the central clearing organizations become our counterparties subsequent to novation of the original derivative contracts. In addition, we began entering into derivative contracts through swap execution facilities during the quarter ended March 31, 2014. The swap clearing and swap trade execution requirements were mandated by the Dodd-Frank Act for the purpose of reducing counterparty credit risk and increasing transparency in the derivative market. At March 31, 2015, we had gross exposure of $946 million to broker-dealers and banks. We had net exposure of $243 million after the application of master netting agreements and cash collateral, where such qualifying agreements exist. We had net exposure of $74 million after considering $169 million of additional collateral held in the form of securities.

We enter into transactions with clients to accommodate their business needs. These types of transactions generally are low dollar volume. We generally enter into master netting agreements with these counterparties. In addition, we mitigate our overall portfolio exposure and market risk by buying and selling U.S. Treasuries and Eurodollar futures, and entering into offsetting positions and other derivative contracts, sometimes with entities other than broker-dealers and banks. Due to the smaller size and magnitude of the individual contracts with clients, we generally do not exchange collateral in connection with these derivative transactions. To address the risk of default associated with the uncollateralized contracts, we have established a credit valuation adjustment (included in “derivative assets”) in the amount of $8 million at March 31, 2015, which we estimate to be the potential future losses on amounts due from client counterparties in the event of default. At December 31, 2014, the credit valuation adjustment was $9 million. For the derivative counterparties that are not broker-dealers, banks, or clients, we generally exchange collateral. At March 31, 2015, we had gross exposure of $550 million to client counterparties and other entities that are not broker-dealers or banks for derivatives that have associated master netting agreements. We had net exposure of $488 million on our derivatives with these counterparties after the application of master netting agreements, collateral, and the related reserve. In addition, the derivatives for one counterparty were guaranteed by a third party with a letter of credit totaling $35 million.

Credit Derivatives

We are both a buyer and seller of credit protection through the credit derivative market. We purchase credit derivatives to manage the credit risk associated with specific commercial lending and swap obligations as well as exposures to debt securities. We may also sell credit derivatives, mainly single-name credit default swaps, to offset our purchased credit default swap position prior to maturity.

The following table summarizes the fair value of our credit derivatives purchased and sold by type as of March 31, 2015, December 31, 2014, and March 31, 2014. The fair value of credit derivatives presented below does not take into account the effects of bilateral collateral or master netting agreements.

	March 31, 2015									December 31, 2014								March 31, 2014
in millions	Purchased			Sold			Net			Purchased			Sold		Net			Purchased			Sold		Net
Single-name credit default swaps	$	(3	)		—		$	(3	)	$	(3	)		—	$	(3	)	$	(6	)		—	$	(6	)
Traded credit default swap indices		1			—			1			1			—		1			(2	)		—		(2	)
Other		1		$	(1	)		—			—			—		—			—			—		—
Total credit derivatives	$	(1	)	$	(1	)	$	(2	)	$	(2	)		—	$	(2	)	$	(8	)		—	$	(8	)

Single-name credit default swaps are bilateral contracts whereby the seller agrees, for a premium, to provide protection against the credit risk of a specific entity (the “reference entity”) in connection with a specific debt obligation. The protected credit risk is related to adverse credit events, such as bankruptcy, failure to make payments, and acceleration or restructuring of obligations, identified in the credit derivative contract. As the seller of a single-name credit derivative, we may settle in one of two ways if the underlying reference entity experiences a predefined credit event. We may be required to pay the purchaser the difference between the par value and the market price of the debt obligation (cash settlement) or receive the specified referenced asset in exchange for payment of the par value (physical settlement). If we effect a physical settlement and receive our portion of the related debt obligation, we will join other creditors in the liquidation process, which may enable us to recover a portion of the amount paid under the credit default swap contract. We also may purchase offsetting credit derivatives for the same reference entity from third parties that will permit us to recover the amount we pay should a credit event occur.

A traded credit default swap index represents a position on a basket or portfolio of reference entities. As a seller of protection on a credit default swap index, we would be required to pay the purchaser if one or more of the entities in the index had a credit event. Upon a credit event, the amount payable is based on the percentage of the notional amount allocated to the specific defaulting entity.

The majority of transactions represented by the “other” category shown in the above table are risk participation agreements. In these transactions, the lead participant has a swap agreement with a customer. The lead participant (purchaser of protection) then enters into a risk participation agreement with a counterparty (seller of protection), under which the counterparty receives a fee to accept a portion of the lead participant’s credit risk. If the customer defaults on the swap contract, the counterparty to the risk participation agreement must reimburse the lead participant for the counterparty’s percentage of the positive fair value of the customer swap as of the default date. If the customer swap has a negative fair value, the counterparty has no reimbursement requirements. If the customer defaults on the swap contract and the seller fulfills its payment obligations under the risk participation agreement, the seller is entitled to a pro rata share of the lead participant’s claims against the customer under the terms of the swap agreement.

The following table provides information on the types of credit derivatives sold by us and held on the balance sheet at March 31, 2015, December 31, 2014, and March 31, 2014. The notional amount represents the maximum amount that the seller could be required to pay. The payment/performance risk assessment is based on the default probabilities for the underlying reference entities’ debt obligations using a Moody’s credit ratings matrix known as Moody’s “Idealized” Cumulative Default Rates. The payment/performance risk shown in the table represents a weighted-average of the default probabilities for all reference entities in the respective portfolios. These default probabilities are directly correlated to the probability that we will have to make a payment under the credit derivative contracts.

	March 31, 2015							December 31, 2014							March 31, 2014
			Average		Payment /					Average		Payment /					Average		Payment /
	Notional		Term		Performance			Notional		Term		Performance			Notional		Term		Performance
dollars in millions	Amount		(Years)		Risk			Amount		(Years)		Risk			Amount		(Years)		Risk
Single-name credit default swaps	$	5		.47		.87	%	$	5		.72		.87	%	$	55		.52		22.28	%
Other		8		3.04		9.39			6		2.89		9.58			13		4.80		8.23
Total credit derivatives sold	$	13		—		—		$	11		—		—		$	68		—		—

Credit Risk Contingent Features

We have entered into certain derivative contracts that require us to post collateral to the counterparties when these contracts are in a net liability position. The amount of collateral to be posted is based on the amount of the net liability and thresholds generally related to our long-term senior unsecured credit ratings with Moody’s and S&P. Collateral requirements also are based on minimum transfer amounts, which are specific to each Credit Support Annex (a component of the ISDA Master Agreement) that we have signed with the counterparties. In a limited number of instances, counterparties have the right to terminate their ISDA Master Agreements with us if our ratings fall below a certain level, usually investment-grade level (i.e., “Baa3” for Moody’s and “BBB-” for S&P). At March 31, 2015, KeyBank’s ratings were “A3” with Moody’s and “A-” with S&P, and KeyCorp’s ratings were “Baa1” with Moody’s and “BBB+” with S&P. As of March 31, 2015, the aggregate fair value of all derivative contracts with credit risk contingent features (i.e., those containing collateral posting or termination provisions based on our ratings) held by KeyBank that were in a net liability position totaled $292 million, which includes $276 million in derivative assets and $568 million in derivative liabilities. We had $259 million in cash and securities collateral posted to cover those positions as of March 31, 2015. The aggregate fair value of all derivative contracts with credit risk contingent features held by KeyCorp as of March 31, 2015, that were in a net liability position totaled $9 million, which consists solely of derivative liabilities. We had $9 million in collateral posted to cover those positions as of March 31, 2015.

The following table summarizes the additional cash and securities collateral that KeyBank would have been required to deliver under the ISDA Master Agreements had the credit risk contingent features been triggered for the derivative contracts in a net liability position as of March 31, 2015, December 31, 2014, and March 31, 2014. The additional collateral amounts were calculated based on scenarios under which KeyBank’s ratings are downgraded one, two, or three ratings as of March 31, 2015, December 31, 2014, and March 31, 2014, and take into account all collateral already posted. A similar calculation was performed for KeyCorp, and no additional collateral would have been required as of March 31, 2015, while additional collateral of less than $1 million and $2 million would have been required as of December 31, 2014, and March 31, 2014, respectively. For more information about the credit ratings for KeyBank and KeyCorp, see the discussion under the heading “Factors affecting liquidity” in the section entitled “Liquidity risk management” in Item 2 of this report.

	March 31, 2015				December 31, 2014				March 31, 2014
in millions	Moody’s		S&P		Moody’s		S&P		Moody’s		S&P
KeyBank’s long-term senior unsecured credit ratings		A3		A-		A3		A-		A3		A-
One rating downgrade	$	4	$	4	$	1	$	1	$	6	$	6
Two rating downgrades		4		4		1		1		11		11
Three rating downgrades		6		6		3		3		11		11

KeyBank’s long-term senior unsecured credit rating is currently four ratings above noninvestment grade at Moody’s and S&P. If KeyBank’s ratings had been downgraded below investment grade as of March 31, 2015, payments of up to $8 million would have been required to either terminate the contracts or post additional collateral for those contracts in a net liability position, taking into account all collateral already posted. If KeyCorp’s ratings had been downgraded below investment grade as of March 31, 2015, payments of less than $1 million would have been required to either terminate the contracts or post additional collateral for those contracts in a net liability position, taking into account all collateral already posted.

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Acquisitions and Discontinued Operations - Components of Income (Loss) from Discontinued Operations, Net of Taxes for Education Lending Business (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Income taxes	$ 3	$ 2
Income (loss) from discontinued operations, net of taxes	5	4
Discontinued Operations [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net interest income	10	24
Provision for credit losses	2	4
Net interest income after provision for credit losses	8	20
Noninterest income	4	(4)
Noninterest expense	4	10
Income (loss) before income taxes	8	6
Income taxes	3	2
Income (loss) from discontinued operations, net of taxes	5	4
Education Lending [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Income (loss) before income taxes	8	(1)
Income taxes	3
Income (loss) from discontinued operations, net of taxes	5	(1)
Education Lending [Member] | Discontinued Operations [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net interest income	10	23
Provision for credit losses	2	4
Net interest income after provision for credit losses	8	19
Noninterest income	4	(14)
Noninterest expense	$ 4	$ 6

XML

Derivatives and Hedging Activities - Fair Value of Credit Derivatives Purchased and Sold (Detail) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014	Mar. 31, 2014
Credit Derivatives [Line Items]
Purchased	$ (1)	$ (2)	$ (8)
Sold	(1)
Credit derivatives, net	(2)	(2)	(8)
Single Name Credit Default Swaps [Member]
Credit Derivatives [Line Items]
Purchased	(3)	(3)	(6)
Credit derivatives, net	(3)	(3)	(6)
Traded Credit Default Swap Indices [Member]
Credit Derivatives [Line Items]
Purchased	1	1	(2)
Credit derivatives, net	1	1	(2)
Other [Member]
Credit Derivatives [Line Items]
Purchased	1
Sold	$ (1)

XML

Derivatives and Hedging Activities - Largest Exposure to Individual Counterparty (Detail) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014	Mar. 31, 2014
Derivative [Line Items]
Net exposure after netting adjustments and collateral	$ 731	$ 609	$ 427
Largest Individual Counterparty [Member]
Derivative [Line Items]
Largest gross exposure (derivative asset) to an individual counterparty	122	133	118
Collateral posted by this counterparty	91	100	43
Derivative liability with this counterparty	28	31	108
Collateral pledged to this counterparty			40
Net exposure after netting adjustments and collateral	$ 3	$ 2	$ 7

XML

Employee Benefits - Net Postretirement Benefit Cost for Funded and Unfunded Plans (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Compensation and Retirement Disclosure [Abstract]
Interest cost on APBO	$ 1	$ 1
Expected return on plan assets	(1)	(1)
Net benefit cost	$ 0	$ 0

XML

Line of Business Results - Financial Information of Business Groups (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Segment Reporting Information [Line Items]
Net interest income (TE)	$ 571	$ 563
Noninterest income	437	435
Provision (credit) for loan and lease losses	6	2
Other noninterest expense	84	77
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	304	330
Allocated income taxes and TE adjustments	74	92
Income (loss) from continuing operations	230	238
Income (loss) from discontinued operations, net of taxes	5	4
Net income (loss)	235	242
Less: Net income (loss) attributable to noncontrolling interests	2
Net income (loss) attributable to Key	233	242
Operating Segments [Member]
Segment Reporting Information [Line Items]
Net interest income (TE)	575	569
Noninterest income	442	434
Total revenue (TE)	1,017	1,003
Provision (credit) for loan and lease losses	34	4
Depreciation and amortization expense	27	27
Other noninterest expense	645	636
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	311	336
Allocated income taxes and TE adjustments	88	101
Income (loss) from continuing operations	223	235
Net income (loss)	223	235
Less: Net income (loss) attributable to noncontrolling interests	2
Net income (loss) attributable to Key	221	235
AVERAGE BALANCES
Loans and leases	57,428	54,701
Total assets	88,951	84,997
Deposits	69,450	66,478
OTHER FINANCIAL DATA
Net loan charge-offs	28	20
Return on average allocated equity	17.84%	19.59%
Return on average allocated equity	17.84%	19.59%
Average full-time equivalent employees	9,555	9,686
Operating Segments [Member] | Key Community Bank [Member]
Segment Reporting Information [Line Items]
Net interest income (TE)	358	363
Noninterest income	191	183
Total revenue (TE)	549	546
Provision (credit) for loan and lease losses	29	11
Depreciation and amortization expense	15	17
Other noninterest expense	425	419
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	80	99
Allocated income taxes and TE adjustments	30	37
Income (loss) from continuing operations	50	62
Net income (loss)	50	62
Net income (loss) attributable to Key	50	62
AVERAGE BALANCES
Loans and leases	30,662	29,797
Total assets	32,716	31,918
Deposits	50,417	49,910
OTHER FINANCIAL DATA
Net loan charge-offs	28	28
Return on average allocated equity	7.38%	8.97%
Return on average allocated equity	7.38%	8.97%
Average full-time equivalent employees	7,475	7,698
Operating Segments [Member] | Key Corporate Bank [Member]
Segment Reporting Information [Line Items]
Net interest income (TE)	213	196
Noninterest income	188	196
Total revenue (TE)	401	392
Provision (credit) for loan and lease losses	8	(3)
Depreciation and amortization expense	10	7
Other noninterest expense	207	195
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	176	193
Allocated income taxes and TE adjustments	49	57
Income (loss) from continuing operations	127	136
Net income (loss)	127	136
Less: Net income (loss) attributable to noncontrolling interests	1
Net income (loss) attributable to Key	126	136
AVERAGE BALANCES
Loans and leases	24,722	21,991
Total assets	30,297	27,171
Deposits	18,567	15,993
OTHER FINANCIAL DATA
Net loan charge-offs	(4)	(12)
Return on average allocated equity	27.44%	35.65%
Return on average allocated equity	27.44%	35.65%
Average full-time equivalent employees	2,064	1,916
Operating Segments [Member] | Other Segments [Member]
Segment Reporting Information [Line Items]
Net interest income (TE)	4	10
Noninterest income	63	55
Total revenue (TE)	67	65
Provision (credit) for loan and lease losses	(3)	(4)
Depreciation and amortization expense	2	3
Other noninterest expense	13	22
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	55	44
Allocated income taxes and TE adjustments	9	7
Income (loss) from continuing operations	46	37
Net income (loss)	46	37
Less: Net income (loss) attributable to noncontrolling interests	1
Net income (loss) attributable to Key	45	37
AVERAGE BALANCES
Loans and leases	2,044	2,913
Total assets	25,938	25,908
Deposits	466	575
OTHER FINANCIAL DATA
Net loan charge-offs	4	4
Return on average allocated equity	43.98%	29.14%
Return on average allocated equity	43.98%	29.14%
Average full-time equivalent employees	16	72
Segment Reconciling Items [Member]
Segment Reporting Information [Line Items]
Net interest income (TE)	2
Noninterest income	(5)	1
Total revenue (TE)	(3)	1
Provision (credit) for loan and lease losses	1	2
Depreciation and amortization expense	37	38
Other noninterest expense	(40)	(39)
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	(1)
Allocated income taxes and TE adjustments	(8)	(3)
Income (loss) from continuing operations	7	3
Income (loss) from discontinued operations, net of taxes	5	4
Net income (loss)	12	7
Net income (loss) attributable to Key	12	7
AVERAGE BALANCES
Loans and leases	84	45
Total assets	678	660
Deposits	(81)	(184)
OTHER FINANCIAL DATA
Return on average allocated equity	0.51%	0.22%
Return on average allocated equity	0.88%	0.52%
Average full-time equivalent employees	4,036	4,369
Operating Segments and Reconciling Items [Member]
Segment Reporting Information [Line Items]
Net interest income (TE)	577	569
Noninterest income	437	435
Total revenue (TE)	1,014	1,004
Provision (credit) for loan and lease losses	35	6
Depreciation and amortization expense	64	65
Other noninterest expense	605	597
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	310	336
Allocated income taxes and TE adjustments	80	98
Income (loss) from continuing operations	230	238
Income (loss) from discontinued operations, net of taxes	5	4
Net income (loss)	235	242
Less: Net income (loss) attributable to noncontrolling interests	2
Net income (loss) attributable to Key	233	242
AVERAGE BALANCES
Loans and leases	57,512	54,746
Total assets	89,629	85,657
Deposits	69,369	66,294
OTHER FINANCIAL DATA
Net loan charge-offs	$ 28	$ 20
Return on average allocated equity	8.75%	9.31%
Return on average allocated equity	8.94%	9.46%
Average full-time equivalent employees	13,591	14,055

XML

Securities Financing Activities - Summarized Securities Financing Agreements (Detail) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014	Mar. 31, 2014
Securities Financing Transaction [Line Items]
Reverse repurchase agreements			$ 10
Total offsetting of financial assets			10
Collateral [Member]
Securities Financing Transaction [Line Items]
Reverse repurchase agreements		(2)	(126)
Securities borrowed			(3)
Total offsetting of financial assets		(2)	(129)
Repurchase agreements	(2)		(262)
Total offsetting of financial liabilities	(2)		(262)
Gross Amount Presented in Balance Sheet [Member]
Securities Financing Transaction [Line Items]
Reverse repurchase agreements	2	3	442
Securities borrowed			3
Total offsetting of financial assets	2	3	445
Repurchase agreements	4	1	568
Total offsetting of financial liabilities	4	1	568
Netting Adjustments [Member]
Securities Financing Transaction [Line Items]
Reverse repurchase agreements	(2)	(1)	(306)
Total offsetting of financial assets	(2)	(1)	(306)
Repurchase agreements	(2)	(1)	(306)
Total offsetting of financial liabilities	$ (2)	$ (1)	$ (306)

XML

Document and Entity Information	3 Months Ended
	Mar. 31, 2015	Apr. 30, 2015
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2015
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q1
Trading Symbol	KEY
Entity Registrant Name	KEYCORP /NEW/
Entity Central Index Key	0000091576
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		848,305,592

XML

Trust Preferred Securities Issued by Unconsolidated Subsidiaries - Summary of Trust Preferred Securities, Common Stock and Related Debentures (Parenthetical) (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		12 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Trust preferred securities adjustments related to fair value hedges	$ 74	$ 51	$ 68
Redemption price as the sum of the present values of principal and interest payments, if redeemed before maturity	The greater of: (i) the principal amount, plus any accrued but unpaid interest, or (ii) the sum of the present values of principal and interest payments discounted at the Treasury Rate (as defined in the applicable indenture), plus 20 basis points for KeyCorp Capital II or 25 basis points for KeyCorp Capital III or 50 basis points in the case of redemption upon either a tax or a capital treatment event for either KeyCorp Capital II or KeyCorp Capital III, plus any accrued but unpaid interest.
Debentures adjustments related to financial instrument hedging	$ 74	$ 51	$ 68
KeyCorp Capital I [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Floating interest rate	KeyCorp Capital II and KeyCorp Capital III are fixed. KeyCorp Capital I has a floating interest rate, equal to three-month LIBOR plus 74 basis points, that reprices quarterly.
Floating interest rate equal to three-month LIBOR plus percentage	0.74%

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Mortgage Servicing Assets

3 Months Ended

Mar. 31, 2015

Text Block [Abstract]

Mortgage Servicing Assets

8. Mortgage Servicing Assets

We originate and periodically sell commercial mortgage loans but continue to service those loans for the buyers. We also may purchase the right to service commercial mortgage loans for other lenders. We record a servicing asset if we purchase or retain the right to service loans in exchange for servicing fees that exceed the going market servicing rate and are considered more than adequate compensation for servicing. Changes in the carrying amount of mortgage servicing assets are summarized as follows:

	Three months ended March 31,
in millions	2015			2014
Balance at beginning of period	$	323		$	332
Servicing retained from loan sales		10			6
Purchases		15			7
Amortization		(24	)		(25	)
Balance at end of period	$	324		$	320
Fair value at end of period	$	423		$	373

The fair value of mortgage servicing assets is determined by calculating the present value of future cash flows associated with servicing the loans. This calculation uses a number of assumptions that are based on current market conditions. The range and weighted-average of the significant unobservable inputs used to fair value our mortgage servicing assets at March 31, 2015, and March 31, 2014, along with the valuation techniques, are shown in the following table:

March 31, 2015 dollars in millions	Valuation Technique	Significant Unobservable Input	Range (Weighted-Average)
Mortgage servicing assets	Discounted cash flow	Prepayment speed		1.60 - 13.10% (4.80%)
		Expected defaults		1.00 - 3.00% (1.80%)
		Residual cash flows discount rate		7.00 - 15.00% (7.80%)
		Escrow earn rate		0.70 - 3.10% (1.90%)
		Servicing cost		$150 - $2,735 ($1,059)
		Loan assumption rate		0.20 - 3.00% (1.43%)
		Percentage late		0.00 - 2.00% (0.33%)
March 31, 2014 dollars in millions	Valuation Technique	Significant Unobservable Input	Range (Weighted-Average)
Mortgage servicing assets	Discounted cash flow	Prepayment speed		1.90 - 11.30% (4.90%)
		Expected defaults		1.00 - 3.00% (2.00%)
		Residual cash flows discount rate		7.00 - 14.00% (7.80%)
		Escrow earn rate		0.40 - 3.10% (1.80%)
		Servicing cost		$150 - $2,600 ($963)
		Loan assumption rate		0.20 - 3.00% (1.58%)
		Percentage late		0.00 - 2.00% (0.33%)

If these economic assumptions change or prove incorrect, the fair value of mortgage servicing assets may also change. The volume of loans serviced, expected credit losses, and the value assigned to escrow deposits are critical to the valuation of servicing assets. At March 31, 2015, a 1.00% decrease in the value assigned to the escrow deposits would cause a $54 million decrease in the fair value of our mortgage servicing assets. An increase in the assumed default rate of commercial mortgage loans of 1.00% would cause a $7 million decrease in the fair value of our mortgage servicing assets.

Contractual fee income from servicing commercial mortgage loans totaled $13 million for the three-month period ended March 31, 2015, and $15 million for the three-month period ended March 31, 2014. We have elected to account for servicing assets using the amortization method. The amortization of servicing assets is determined in proportion to, and over the period of, the estimated net servicing income. The amortization of servicing assets for each period, as shown in the table at the beginning of this note, is recorded as a reduction to fee income. Both the contractual fee income and the amortization are recorded in “mortgage servicing fees” on the income statement.

Additional information pertaining to the accounting for mortgage and other servicing assets is included in Note 1 (“Summary of Significant Accounting Policies”) under the heading “Servicing Assets” on page 122 of our 2014 Form 10-K.

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Securities - Available for Sale Securities (Unrealized Loss Position) (Parenthetical) (Detail) (Maximum [Member], USD $)	3 Months Ended		12 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Other Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Gross unrealized losses, available for sale securities	$ 1,000,000	$ 1,000,000	$ 1,000,000
Gross unrealized losses, held-to-maturity securities	1,000,000	1,000,000
Other Mortgage-Backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Gross unrealized losses, available for sale securities	$ 1,000,000

XML

Derivatives and Hedging Activities - Pre-Tax Net Gains (Losses) on Derivatives Not Designated as Hedging Instruments (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Instruments Not Designated as Hedging Instruments, Gains (Losses), Net	$ 10	$ 11
Interest Rate [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Instruments Not Designated as Hedging Instruments, Gains (Losses), Net	4	4
Foreign Exchange [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Instruments Not Designated as Hedging Instruments, Gains (Losses), Net	8	9
Commodity [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Instruments Not Designated as Hedging Instruments, Gains (Losses), Net	2	1
Credit [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Instruments Not Designated as Hedging Instruments, Gains (Losses), Net	(4)	(3)
Corporate Services Income [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Instruments Not Designated as Hedging Instruments, Gains (Losses), Net	14	14
Corporate Services Income [Member] | Interest Rate [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Instruments Not Designated as Hedging Instruments, Gains (Losses), Net	4	4
Corporate Services Income [Member] | Foreign Exchange [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Instruments Not Designated as Hedging Instruments, Gains (Losses), Net	8	9
Corporate Services Income [Member] | Commodity [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Instruments Not Designated as Hedging Instruments, Gains (Losses), Net	2	1
Other Income [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Instruments Not Designated as Hedging Instruments, Gains (Losses), Net	(4)	(3)
Other Income [Member] | Credit [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Instruments Not Designated as Hedging Instruments, Gains (Losses), Net	$ (4)	$ (3)

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Consolidated Statements of Income (Unaudited) (USD $) In Millions, except Share data in Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015		Mar. 31, 2014
INTEREST INCOME
Loans	$ 523		$ 519
Loans held for sale	7		4
Securities available for sale	70		72
Held-to-maturity securities	24		22
Trading account assets	5		6
Short-term investments	2		1
Other investments	5		6
Total interest income	636		630
INTEREST EXPENSE
Deposits	26		32
Federal funds purchased and securities sold under repurchase agreements			1
Bank notes and other short-term borrowings	2		2
Long-term debt	37		32
Total interest expense	65		67
NET INTEREST INCOME	571		563
Provision for credit losses	35		4
Net interest income after provision for credit losses	536		559
NONINTEREST INCOME
Trust and investment services income	109		98
Investment banking and debt placement fees	68		84
Service charges on deposit accounts	61		63
Operating lease income and other leasing gains	19		29
Corporate services income	43		42
Cards and payments income	42		38
Corporate-owned life insurance income	31		26
Consumer mortgage income	3		2
Mortgage servicing fees	13		15
Net gains (losses) from principal investing	29		24
Other income	19	[1]	14	[1]
Total noninterest income	437		435
NONINTEREST EXPENSE
Personnel	389		388
Net occupancy	65		64
Computer processing	38		38
Business services and professional fees	33		41
Equipment	22		24
Operating lease expense	11		10
Marketing	8		5
FDIC assessment	8		6
Intangible asset amortization	9		10
OREO expense, net	2		1
Other expense	84		77
Total noninterest expense	669		664
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	304		330
Income taxes	74		92
INCOME (LOSS) FROM CONTINUING OPERATIONS	230		238
Income (loss) from discontinued operations, net of taxes of $3 and $2 (see Note 11)	5		4
NET INCOME (LOSS)	235		242
Less: Net income (loss) attributable to noncontrolling interests	2
NET INCOME (LOSS) ATTRIBUTABLE TO KEY	233		242
Income (loss) from continuing operations attributable to Key common shareholders	222		232
Net income (loss) attributable to Key common shareholders	$ 227		$ 236
Per common share:
Income (loss) from continuing operations attributable to Key common shareholders	$ 0.26		$ 0.26
Income (loss) from discontinued operations, net of taxes	$ 0.01
Net income (loss) attributable to Key common shareholders	$ 0.27	[2]	$ 0.27	[2]
Per common share - assuming dilution:
Income (loss) from continuing operations attributable to Key common shareholders	$ 0.26		$ 0.26
Income (loss) from discontinued operations, net of taxes	$ 0.01
Net income (loss) attributable to Key common shareholders	$ 0.26	[2]	$ 0.26	[2]
Cash dividends declared per common share	$ 0.065		$ 0.055
Weighted-average common shares outstanding (000)	848,580		884,727
Effect of convertible preferred stock	0		0
Effect of common share options and other stock awards	8,542		7,163
Weighted-average common shares and potential common shares outstanding (000)	857,122	[3]	891,890	[3]

[1] For each of the three months ended March 31, 2015, and March 31, 2014, net securities gains (losses) totaled less than $1 million. For the three months ended March 31, 2015, impairment losses related to securities totaled less than $1 million. For the three months ended March 31, 2014, we did not have any impairment losses related to securities.

[2] EPS may not foot due to rounding.

[3] Assumes conversion of common share options and other stock awards and/or convertible preferred stock, as applicable.

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Earnings Per Common Share

3 Months Ended

Mar. 31, 2015

Earnings Per Share [Abstract]

Earnings Per Common Share

2. Earnings Per Common Share

Basic earnings per share is the amount of earnings (adjusted for dividends declared on our preferred stock) available to each common share outstanding during the reporting periods. Diluted earnings per share is the amount of earnings available to each common share outstanding during the reporting periods adjusted to include the effects of potentially dilutive common shares. Potentially dilutive common shares include incremental shares issued for the conversion of our convertible Series A Preferred Stock, stock options, and other stock-based awards. Potentially dilutive common shares are excluded from the computation of diluted earnings per share in the periods where the effect would be antidilutive. For diluted earnings per share, net income available to common shareholders can be affected by the conversion of our convertible Series A Preferred Stock. Where the effect of this conversion would be dilutive, net income available to common shareholders is adjusted by the amount of preferred dividends associated with our Series A Preferred Stock.

Our basic and diluted earnings per common share are calculated as follows:

	Three months ended March 31,
dollars in millions, except per share amounts	2015		2014
EARNINGS
Income (loss) from continuing operations	$	230	$	238
Less: Net income (loss) attributable to noncontrolling interests		2		—
Income (loss) from continuing operations attributable to Key		228		238
Less: Dividends on Series A Preferred Stock		6		6
Income (loss) from continuing operations attributable to Key common shareholders		222		232
Income (loss) from discontinued operations, net of taxes (a)		5		4
Net income (loss) attributable to Key common shareholders	$	227	$	236
WEIGHTED-AVERAGE COMMON SHARES
Weighted-average common shares outstanding (000)		848,580		884,727
Effect of convertible preferred stock		—		—
Effect of common share options and other stock awards		8,542		7,163
Weighted-average common shares and potential common shares outstanding (000)(b)		857,122		891,890
EARNINGS PER COMMON SHARE
Income (loss) from continuing operations attributable to Key common shareholders	$	.26	$	.26
Income (loss) from discontinued operations, net of taxes (a)		.01		—
Net income (loss) attributable to Key common shareholders (c)		.27		.27
Income (loss) from continuing operations attributable to Key common shareholders — assuming dilution	$	.26	$	.26
Income (loss) from discontinued operations, net of taxes (a)		.01		—
Net income (loss) attributable to Key common shareholders — assuming dilution(c)		.26		.26

(a) In April 2009, we decided to wind down the operations of Austin, a subsidiary that specialized in managing hedge fund investments for institutional customers. In September 2009, we decided to discontinue the education lending business conducted through Key Education Resources, the education payment and financing unit of KeyBank. In February 2013, we decided to sell Victory to a private equity fund. As a result of these decisions, we have accounted for these businesses as discontinued operations. For further discussion regarding the income (loss) from discontinued operations, see Note 11 (“Acquisitions and Discontinued Operations”).

(b) Assumes conversion of common share options and other stock awards and/or convertible preferred stock, as applicable.

(c) EPS may not foot due to rounding.

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Basis of Presentation

3 Months Ended

Mar. 31, 2015

Accounting Policies [Abstract]

Basis of Presentation

1. Basis of Presentation

As used in these Notes, references to “Key,” “we,” “our,” “us,” and similar terms refer to the consolidated entity consisting of KeyCorp and its subsidiaries. KeyCorp refers solely to the parent holding company, and KeyBank refers to KeyCorp’s subsidiary, KeyBank National Association.

The acronyms and abbreviations identified below are used in the Notes to Consolidated Financial Statements (Unaudited) as well as in the Management’s Discussion & Analysis of Financial Condition & Results of Operations. You may find it helpful to refer back to this page as you read this report.

References to our “2014 Form 10-K” refer to our Form 10-K for the year ended December 31, 2014, that has been filed with the U.S. Securities and Exchange Commission and is available on its website (www.sec.gov) or on our website (www.key.com/ir).

AICPA: American Institute of Certified Public Accountants.	Moody’s: Moody’s Investor Services, Inc.
ALCO: Asset/Liability Management Committee.	MSRs: Mortgage servicing rights.
ALLL: Allowance for loan and lease losses.	N/A: Not applicable.
A/LM: Asset/liability management.	NASDAQ: The NASDAQ Stock Market LLC.
AOCI: Accumulated other comprehensive income (loss).	N/M: Not meaningful.
APBO: Accumulated postretirement benefit obligation.	NOW: Negotiable Order of Withdrawal.
Austin: Austin Capital Management, Ltd.	NYSE: New York Stock Exchange.
BHCs: Bank holding companies.	OCC: Office of the Comptroller of the Currency.
CCAR: Comprehensive Capital Analysis and Review.	OCI: Other comprehensive income (loss).
CMBS: Commercial mortgage-backed securities.	OREO: Other real estate owned.
CMO: Collateralized mortgage obligation.	OTTI: Other-than-temporary impairment.
Common shares: KeyCorp common shares, $1 par value.	QSPE: Qualifying special purpose entity.
Dodd-Frank Act: Dodd-Frank Wall Street Reform and	PBO: Projected benefit obligation.
Consumer Protection Act of 2010.	PCI: Purchased credit impaired.
EPS: Earnings per share.	S&P: Standard and Poor’s Ratings Services, a Division of The
ERM: Enterprise risk management.	McGraw-Hill Companies, Inc.
EVE: Economic value of equity.	SEC: U.S. Securities & Exchange Commission.
FASB: Financial Accounting Standards Board.	Series A Preferred Stock: KeyCorp’s 7.750% Noncumulative
FDIC: Federal Deposit Insurance Corporation.	Perpetual Convertible Preferred Stock, Series A.
Federal Reserve: Board of Governors of the Federal Reserve	SIFIs: Systemically important financial institutions, including
System.	BHCs with total consolidated assets of at least $50 billion
FHLMC: Federal Home Loan Mortgage Corporation.	and nonbank financial companies designated by FSOC for
FSOC: Financial Stability Oversight Council.	supervision by the Federal Reserve.
GAAP: U.S. generally accepted accounting principles.	TDR: Troubled debt restructuring.
GNMA: Government National Mortgage Association.	TE: Taxable-equivalent.
ISDA: International Swaps and Derivatives Association.	U.S. Treasury: United States Department of the Treasury.
KAHC: Key Affordable Housing Corporation.	VaR: Value at risk.
KEF: Key Equipment Finance.	VEBA: Voluntary Employee Beneficiary Association.
KREEC: Key Real Estate Equity Capital, Inc.	Victory: Victory Capital Management and/or
LIBOR: London Interbank Offered Rate.	Victory Capital Advisors.
LIHTC: Low-income housing tax credit.	VIE: Variable interest entity.

The consolidated financial statements include the accounts of KeyCorp and its subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. Some previously reported amounts have been reclassified to conform to current reporting practices.

The consolidated financial statements include any voting rights entities in which we have a controlling financial interest. In accordance with the applicable accounting guidance for consolidations, we consolidate a VIE if we have: (i) a variable interest in the entity; (ii) the power to direct activities of the VIE that most significantly impact the entity’s economic performance; and (iii) the obligation to absorb losses of the entity or the right to receive benefits from the entity that could potentially be significant to the VIE (i.e., we are considered to be the primary beneficiary). Variable interests can include equity interests, subordinated debt, derivative contracts, leases, service agreements, guarantees, standby letters of credit, loan commitments, and other contracts, agreements, and financial instruments. See Note 9 (“Variable Interest Entities”) for information on our involvement with VIEs.

We use the equity method to account for unconsolidated investments in voting rights entities or VIEs if we have significant influence over the entity’s operating and financing decisions (usually defined as a voting or economic interest of 20% to 50%, but not controlling). Unconsolidated investments in voting rights entities or VIEs in which we have a voting or economic interest of less than 20% generally are carried at cost. Investments held by our registered broker-dealer and investment company subsidiaries (principal investing entities and Real Estate Capital line of business) are carried at fair value.

We believe that the unaudited consolidated interim financial statements reflect all adjustments of a normal recurring nature and disclosures that are necessary for a fair presentation of the results for the interim periods presented. The results of operations for the interim period are not necessarily indicative of the results of operations to be expected for the full year. The interim financial statements should be read in conjunction with the audited consolidated financial statements and related notes included in our 2014 Form 10-K.

In preparing these financial statements, subsequent events were evaluated through the time the financial statements were issued. Financial statements are considered issued when they are widely distributed to all shareholders and other financial statement users, or filed with the SEC.

Offsetting Derivative Positions

In accordance with the applicable accounting guidance, we take into account the impact of bilateral collateral and master netting agreements that allow us to settle all derivative contracts held with a single counterparty on a net basis, and to offset the net derivative position with the related cash collateral when recognizing derivative assets and liabilities. Additional information regarding derivative offsetting is provided in Note 7 (“Derivatives and Hedging Activities”).

Accounting Guidance Adopted in 2015

Troubled debt restructurings. In August 2014, the FASB issued new accounting guidance that clarifies how to account for certain government-guaranteed mortgage loans upon foreclosure. This accounting guidance was effective for reporting periods beginning after December 15, 2014 (effective January 1, 2015, for us) and could be implemented using either a modified retrospective method or a prospective method. Early adoption was permitted. We elected to implement the new accounting guidance using a prospective approach. The adoption of this accounting guidance did not have a material effect on our financial condition or results of operations.

Transfers and servicing of financial assets. In June 2014, the FASB issued new accounting guidance that applies secured borrowing accounting to repurchase-to-maturity transactions and linked repurchase financings and expands disclosure requirements. This accounting guidance was effective for interim and annual reporting periods beginning after December 15, 2014 (effective January 1, 2015, for us) and was implemented using a cumulative-effect approach to transactions outstanding as of the effective date with no adjustment to prior periods. The disclosure for secured borrowings will be presented for annual periods beginning after December 15, 2014, and for interim periods beginning after March 15, 2015 (June 30, 2015, for us). Early adoption was not permitted. The adoption of this accounting guidance did not have a material effect on our financial condition or results of operations.

Discontinued operations. In April 2014, the FASB issued new accounting guidance that revises the criteria for determining when disposals should be reported as discontinued operations and modifies the disclosure requirements. This accounting guidance was effective prospectively for reporting periods beginning after December 15, 2014 (effective January 1, 2015, for us). Early adoption was permitted. The adoption of this accounting guidance did not have a material effect on our financial condition or results of operations.

Investments in qualified affordable housing projects. In January 2014, the FASB issued new accounting guidance that modifies the conditions that must be met to make an election to account for investments in qualified affordable housing projects using the proportional amortization method or the practical expedient method to the proportional amortization method. This accounting guidance was effective retrospectively for reporting periods beginning after December 15, 2014 (effective January 1, 2015, for us). Early adoption was permitted. We elected to amortize our LIHTCs under the practical expedient method to the proportional amortization method. As our LIHTCs were previously accounted for under the effective yield method and related amortization expense was previously classified as income taxes in our Consolidated Statements of Income, the adoption of this accounting guidance did not have a material effect on our financial condition or results of operations. We provide additional information regarding our LIHTCs in Note 9 (“Variable Interest Entities”).

Troubled debt restructurings. In January 2014, the FASB issued new accounting guidance that clarifies the definition of when an in substance repossession or foreclosure occurs for purposes of creditor reclassification of residential real estate collateralized consumer mortgage loans by derecognizing the loan and recognizing the collateral asset. This accounting guidance was effective for reporting periods beginning after December 15, 2014 (effective January 1, 2015, for us) and could be implemented using either a modified retrospective method or prospective method. Early adoption was permitted. We elected to implement the new accounting guidance using a prospective approach. The adoption of this accounting guidance did not have a material effect on our financial condition or results of operations. We provide the disclosure related to consumer residential mortgages required by this new accounting guidance in Note 4 (“Asset Quality”).

Accounting Guidance Pending Adoption at March 31, 2015

Cloud computing fees. In April 2015, the FASB issued new accounting guidance that clarifies a customer’s accounting for fees paid in a cloud computing arrangement. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. This accounting guidance will be effective for interim and annual reporting periods beginning after December 15, 2015 (effective January 1, 2016, for us) and can be implemented using either a prospective method or a retrospective method. Early adoption is permitted. The adoption of this accounting guidance is not expected to have a material effect on our financial condition or results of operations.

Imputation of interest. In April 2015, the FASB issued new accounting guidance that requires debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. This accounting guidance will be effective for interim and annual reporting periods beginning after December 15, 2015 (effective January 1, 2016, for us) and should be implemented using a retrospective method. Early adoption is permitted. The adoption of this accounting guidance is not expected to have a material effect on our financial condition or results of operations.

Consolidation. In February 2015, the FASB issued new accounting guidance that changes the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. The new guidance amends the current accounting guidance to address limited partnerships and similar legal entities, certain investment funds, fees paid to a decision maker or service provider, and the impact of fee arrangements and related parties on the primary beneficiary determination. This accounting guidance will be effective for interim and annual reporting periods beginning after December 15, 2015 (effective January 1, 2016, for us) and should be implemented using a modified retrospective basis. Retrospective application to all relevant prior periods and early adoption is permitted. We are currently evaluating the impact that this accounting guidance may have on our financial condition or results of operations.

Derivatives and hedging. In November 2014, the FASB issued new accounting guidance that clarifies how current guidance should be interpreted when evaluating the economic characteristics and risks of a host contract in a hybrid financial instrument that is issued in the form of a share. An entity should consider all relevant terms and features, including the embedded derivative feature being evaluated for bifurcation, when evaluating the nature of a host contract. This accounting guidance will be effective for interim and annual reporting periods beginning after December 15, 2015 (effective January 1, 2016, for us) and should be implemented using a modified retrospective basis. Retrospective application to all relevant prior periods and early adoption is permitted. The adoption of this accounting guidance is not expected to have a material effect on our financial condition or results of operations.

Going concern. In August 2014, the FASB issued new accounting guidance that requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date the financial statements are issued. Disclosure is required when conditions or events raise substantial doubt about an entity’s ability to continue as a going concern. This accounting guidance will be effective for interim and annual reporting periods beginning after December 15, 2016 (effective January 1, 2017, for us). Early adoption is permitted. The adoption of this accounting guidance is not expected to have a material effect on our financial condition or results of operations.

Consolidation. In August 2014, the FASB issued new accounting guidance that clarifies how to measure the financial assets and the financial liabilities of a consolidated collateralized financing entity. This accounting guidance will be effective for interim and annual reporting periods beginning after December 15, 2015 (effective January 1, 2016, for us) and can be implemented using either a retrospective method or a cumulative-effect approach. Early adoption is permitted. The adoption of this accounting guidance is not expected to have a material effect on our financial condition or results of operations.

Stock-based compensation. In June 2014, the FASB issued new accounting guidance that clarifies how to account for share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period. This accounting guidance will be effective for interim and annual reporting periods beginning after December 15, 2015 (effective January 1, 2016, for us) and can be implemented using either a retrospective method or a prospective method. Early adoption is permitted. The adoption of this accounting guidance is not expected to have a material effect on our financial condition or results of operations.

Revenue recognition. In May 2014, the FASB issued new accounting guidance that revises the criteria for determining when to recognize revenue from contracts with customers and expands disclosure requirements. This accounting guidance will be effective for interim and annual reporting periods beginning after December 15, 2017 (effective January 1, 2018, for us) and can be implemented using either a retrospective method or a cumulative-effect approach. Early adoption is not permitted. We have elected to implement this new accounting guidance using a cumulative-effect approach. Our preliminary analysis suggests that the adoption of this accounting guidance is not expected to have a material effect on our financial condition or results of operations. There are many aspects of this new accounting guidance that are still being interpreted, and therefore, the results of our materiality analysis may change based on the conclusions reached as to the application of the new guidance.

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Employee Benefits

3 Months Ended

Mar. 31, 2015

Compensation and Retirement Disclosure [Abstract]

Employee Benefits

13. Employee Benefits

Pension Plans

Effective December 31, 2009, we amended our cash balance pension plan and other defined benefit plans to freeze all benefit accruals and close the plans to new employees. We will continue to credit participants’ existing account balances for interest until they receive their plan benefits. We changed certain pension plan assumptions after freezing the plans.

The components of net pension cost (benefit) for all funded and unfunded plans are as follows:

	Three months ended March 31,
in millions	2015			2014
Interest cost on PBO	$	10		$	12
Expected return on plan assets		(14	)		(17	)
Amortization of losses		4			4
Net pension cost (benefit)		—		$	(1	)

Other Postretirement Benefit Plans

We sponsor a retiree healthcare plan in which all employees age 55 with five years of service (or employees age 50 with 15 years of service who are terminated under conditions that entitle them to a severance benefit) are eligible to participate. Participant contributions are adjusted annually. We may provide a subsidy toward the cost of coverage for certain employees hired before 2001 with a minimum of 15 years of service at the time of termination. We use a separate VEBA trust to fund the retiree healthcare plan.

The components of net postretirement benefit cost for all funded and unfunded plans are as follows:

	Three months ended March 31,
in millions	2015			2014
Interest cost on APBO	$	1		$	1
Expected return on plan assets		(1	)		(1	)
Net postretirement benefit cost		—			—

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Variable Interest Entities

3 Months Ended

Mar. 31, 2015

Equity Method Investments and Joint Ventures [Abstract]

Variable Interest Entities

9. Variable Interest Entities

A VIE is a partnership, limited liability company, trust, or other legal entity that meets any one of the following criteria:

• The entity does not have sufficient equity to conduct its activities without additional subordinated financial support from another party.

• The entity’s investors lack the power to direct the activities that most significantly impact the entity’s economic performance.

• The entity’s equity at risk holders do not have the obligation to absorb losses or the right to receive residual returns.

• The voting rights of some investors are not proportional to their economic interests in the entity, and substantially all of the entity’s activities involve, or are conducted on behalf of, investors with disproportionately few voting rights.

Our VIEs are summarized below. We define a “significant interest” in a VIE as a subordinated interest that exposes us to a significant portion, but not the majority, of the VIE’s expected losses or residual returns, even though we do not have the power to direct the activities that most significantly impact the entity’s economic performance.

On September 30, 2014, we sold the residual interests in all of our outstanding education loan securitization trusts and therefore no longer have a significant interest in those trusts. We deconsolidated the securitization trusts as of September 30, 2014, and removed the trust assets and liabilities from our balance sheet. Further information regarding these education loan securitization trusts is provided in Note 11 (“Acquisitions and Discontinued Operations”) under the heading “Education lending.”

	Consolidated VIEs				Unconsolidated VIEs
	Total		Total		Total		Total		Maximum
in millions	Assets		Liabilities		Assets		Liabilities		Exposure to Loss
March 31, 2015
LIHTC funds	$	1	$	2	$	55		—		—
LIHTC investments		N/A		N/A		1,355	$	4	$	509
December 31, 2014
LIHTC funds	$	1	$	1	$	55		—		—
LIHTC investments		N/A		N/A		1,234	$	4	$	521
March 31, 2014
LIHTC funds	$	15	$	15	$	97		—		—
Education loan securitization trusts		1,912		1,816		N/A		N/A		N/A
LIHTC investments		N/A		N/A		1,595	$	5	$	492

Our involvement with VIEs is described below.

Consolidated VIEs

LIHTC guaranteed funds. KAHC formed limited partnership funds that invested in LIHTC operating partnerships. Interests in these funds were offered in syndication to qualified investors who paid a fee to KAHC for a guaranteed return. We also earned syndication fees from the guaranteed funds and continue to earn asset management fees. The guaranteed funds’ assets, primarily investments in LIHTC operating partnerships, totaled less than $1 million at March 31, 2015, $5 million at December 31, 2014, and $12 million at March 31, 2014. These investments are recorded in “accrued income and other assets” on the balance sheet and serve as collateral for the guaranteed funds’ limited obligations.

We have not formed new guaranteed funds or added LIHTC partnerships since October 2003. However, we continue to act as asset manager and to provide occasional funding for existing funds under a guarantee obligation. As a result of this guarantee obligation, we have determined that we are the primary beneficiary of these guaranteed funds. Additional information on return guarantee agreements with LIHTC investors is presented in Note 15 (“Contingent Liabilities and Guarantees”) under the heading “Guarantees.”

In accordance with the applicable accounting guidance for distinguishing liabilities from equity, third-party interests associated with our LIHTC guaranteed funds are considered mandatorily redeemable instruments and are recorded in “accrued expense and other liabilities” on the balance sheet. However, the FASB has indefinitely deferred the measurement and recognition provisions of this accounting guidance for mandatorily redeemable third-party interests associated with finite-lived subsidiaries, such as our LIHTC guaranteed funds. We adjust our financial statements each period for the third-party investors’ share of the guaranteed funds’ profits and losses. At March 31, 2015, we estimated the settlement value of these third-party interests to be between zero and $4 million, while the recorded value, including reserves, totaled $5 million. The partnership agreement for each of our guaranteed funds requires the fund to be dissolved by a certain date.

Unconsolidated VIEs

LIHTC nonguaranteed funds. Although we hold interests in certain nonguaranteed funds that we formed and funded, we have determined that we are not the primary beneficiary because we do not absorb the majority of the funds’ expected losses and do not have the power to direct activities that most significantly influence the economic performance of these entities. Assets of these unconsolidated nonguaranteed funds totaled $55 million at March 31, 2015, and December 31, 2014, and $97 million at March 31, 2014. Our maximum exposure to loss in connection with these funds is minimal, and we do not have any liability recorded related to the funds. We have not formed nonguaranteed funds since October 2003.

LIHTC investments. Through Key Community Bank, we have made investments directly in LIHTC operating partnerships formed by third parties. As a limited partner in these operating partnerships, we are allocated tax credits and deductions associated with the underlying properties. We have determined that we are not the primary beneficiary of these investments because the general partners have the power to direct the activities that most significantly influence the economic performance of their respective partnerships and have the obligation to absorb expected losses and the right to receive benefits. Assets of these unconsolidated LIHTC operating partnerships totaled approximately $885 million at March 31, 2015, $764 million at December 31, 2014, and $826 million at March 31, 2014. At March 31, 2015, our maximum exposure to loss in connection with these partnerships is the unamortized investment balance of $397 million plus $108 million of tax credits claimed but subject to recapture and $4 million of tax credits with a return guarantee agreement with LIHTC investors. We do not have any liability recorded related to these investments because we believe the likelihood of any loss is remote. We have not obtained any significant direct investments (either individually or in the aggregate) in LIHTC operating partnerships since September 2003.

We have additional investments in unconsolidated LIHTC operating partnerships that are held by the consolidated LIHTC guaranteed funds. Total assets of these operating partnerships were approximately $470 million at March 31, 2015, and December 31, 2014, and $769 million at March 31, 2014. The tax credits and deductions associated with these properties are allocated to the funds’ investors based on their ownership percentages. We have determined that we are not the primary beneficiary of these partnerships because the general partners have the power to direct the activities that most significantly impact their economic performance, and the obligation to absorb expected losses and right to receive residual returns. Information regarding our exposure to loss in connection with these guaranteed funds is included in Note 15 under the heading “Return guarantee agreement with LIHTC investors.”

We amortize these investments over the period that we expect to receive the tax benefits. During the first three months of 2015, we recognized $25 million of amortization and $28 million of tax credits associated with these investments within income taxes on our Consolidated Statements of Income. During the first three months of 2014, we recognized $24 million of amortization and $27 million of tax credits associated with these investments within income taxes on our Consolidated Statements of Income. At March 31, 2015, and March 31, 2014, we had $1 billion and $960 million of investments in LIHTC, respectively. These investments are reflected in accrued income and other assets on our Consolidated Balance Sheets.

Commercial and residential real estate investments and principal investments. Our Principal Investing unit and the Real Estate Capital line of business make equity and mezzanine investments, some of which are in VIEs. These investments are held by nonregistered investment companies subject to the provisions of the AICPA Audit and Accounting Guide, “Audits of Investment Companies.” We currently are not applying the accounting or disclosure provisions in the applicable accounting guidance for consolidations to these investments, which remain unconsolidated. The FASB had previously deferred the effective date of this guidance for such nonregistered investment companies. New accounting guidance was issued in February 2015 that removes this deferral. The effective date for this guidance is January 1, 2016 for us. Additional information regarding this new accounting guidance is provided in Note 1 (“Summary of Significant Accounting Policies”).

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Securities - Securities by Maturity (Detail) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014	Mar. 31, 2014
Investments, Debt and Equity Securities [Abstract]
Amortized Cost of Securities Available for sale, Due in one year or less	$ 288
Amortized Cost of Securities Available for sale, Due after one through five years	12,599
Amortized Cost of Securities Available for sale, Due after five through ten years	147
Amortized Cost of Securities Available for sale, Due after ten years	3
Total Amortized Cost of Securities Available for sale	13,037
Fair Value of Securities Available for sale, Due in one year or less	292
Fair Value of Securities Available for sale, Due after one through five years	12,676
Fair Value of Securities Available for sale, Due after five through ten years	149
Fair Value of Securities Available for sale, Due after ten years	3
Total Fair Value of Securities Available for sale	13,120
Amortized Cost of Held-to-Maturity Securities, Due in one year or less	9
Amortized Cost of Held-to-Maturity Securities, Due after one through five years	4,504
Amortized Cost of Held-to-Maturity Securities, Due after five through ten years	492
Amortized Cost of Held-to-Maturity Securities, Due after ten years	0
Held to maturities, Amortized Cost	5,005	5,015	4,826
Fair Value of Held-to-Maturity Securities, Due in one year or less	9
Fair Value of Held-to-Maturity Securities, Due after one through five years	4,498
Fair Value of Held-to-Maturity Securities, Due after five through ten years	496
Fair Value of Held-to-Maturity Securities, Due after ten years	0
Total Fair Value of Held-to-Maturity Securities	$ 5,003	$ 4,974	$ 4,733

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Fair Value Measurements

3 Months Ended

Mar. 31, 2015

Fair Value Disclosures [Abstract]

Fair Value Measurements

5. Fair Value Measurements

Fair Value Determination

As defined in the applicable accounting guidance, fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants in our principal market. We have established and documented our process for determining the fair values of our assets and liabilities, where applicable. Fair value is based on quoted market prices, when available, for identical or similar assets or liabilities. In the absence of quoted market prices, we determine the fair value of our assets and liabilities using valuation models or third-party pricing services. Both of these approaches rely on market-based parameters, when available, such as interest rate yield curves, option volatilities, and credit spreads, or unobservable inputs. Unobservable inputs may be based on our judgment, assumptions, and estimates related to credit quality, liquidity, interest rates, and other relevant inputs.

Valuation adjustments, such as those pertaining to counterparty and our own credit quality and liquidity, may be necessary to ensure that assets and liabilities are recorded at fair value. Credit valuation adjustments are made when market pricing does not accurately reflect the counterparty’s or our own credit quality. We make liquidity valuation adjustments to the fair value of certain assets to reflect the uncertainty in the pricing and trading of the instruments when we are unable to observe recent market transactions for identical or similar instruments. Liquidity valuation adjustments are based on the following factors:

• the amount of time since the last relevant valuation;

• whether there is an actual trade or relevant external quote available at the measurement date; and

• volatility associated with the primary pricing components.

We ensure that our fair value measurements are accurate and appropriate by relying upon various controls, including:

• an independent review and approval of valuation models and assumptions;

• recurring detailed reviews of profit and loss; and

• a validation of valuation model components against benchmark data and similar products, where possible.

We recognize transfers between levels of the fair value hierarchy at the end of the reporting period. Quarterly, we review any changes to our valuation methodologies to ensure they are appropriate and justified, and refine our valuation methodologies if more market-based data becomes available. The Fair Value Committee, which is governed by ALCO, oversees the valuation process for all lines of business and support areas, as applicable. Various Working Groups that report to the Fair Value Committee analyze and approve the underlying assumptions and valuation adjustments. Changes in valuation methodologies for Level 1 and Level 2 instruments are presented to the Accounting Policy group for approval. Changes in valuation methodologies for Level 3 instruments are presented to the Fair Value Committee for approval. The Working Groups are discussed in more detail in the qualitative disclosures within this note and in Note 11 (“Acquisitions and Discontinued Operations”). Formal documentation of the fair valuation methodologies is prepared by the lines of business and support areas as appropriate. The documentation details the asset or liability class and related general ledger accounts, valuation techniques, fair value hierarchy level, market participants, accounting methods, valuation methodology, group responsible for valuations, and valuation inputs.

Additional information regarding our accounting policies for determining fair value is provided in Note 1 (“Summary of Significant Accounting Policies”) under the heading “Fair Value Measurements” beginning on page 118 of our 2014 Form 10-K.

Qualitative Disclosures of Valuation Techniques

Loans. Most loans recorded as trading account assets are valued based on market spreads for similar assets since they are actively traded. Therefore, these loans are classified as Level 2 because the fair value recorded is based on observable market data for similar assets.

Securities (trading and available for sale). We own several types of securities, requiring a range of valuation methods:

• Securities are classified as Level 1 when quoted market prices are available in an active market for the identical securities. Level 1 instruments include exchange-traded equity securities.

• Securities are classified as Level 2 if quoted prices for identical securities are not available, and fair value is determined using pricing models (either by a third-party pricing service or internally) or quoted prices of similar securities. These instruments include municipal bonds; bonds backed by the U.S. government; corporate bonds; certain mortgage-backed securities; securities issued by the U.S. Treasury; money markets; and certain agency and corporate CMOs. Inputs to the pricing models include: standard inputs, such as yields, benchmark securities, bids, and offers; actual trade data (i.e., spreads, credit ratings, and interest rates) for comparable assets; spread tables; matrices; high-grade scales; and option-adjusted spreads.

• Securities are classified as Level 3 when there is limited activity in the market for a particular instrument. To determine fair value in such cases, depending on the complexity of the valuations required, we use internal models based on certain assumptions or a third-party valuation service. At March 31, 2015, our Level 3 instruments consist of a convertible preferred security. Our Strategy group is responsible for reviewing the valuation model and determining the fair value of this investment on a quarterly basis. The security is valued using a cash flow analysis of the associated private company issuer. The valuation of the security is negatively impacted by a projected net loss of the associated private company and positively impacted by a projected net gain.

The fair values of our Level 2 securities available for sale are determined by a third-party pricing service. The valuations provided by the third-party pricing service are based on observable market inputs, which include benchmark yields, reported trades, issuer spreads, benchmark securities, bids, offers, and reference data obtained from market research publications. Inputs used by the third-party pricing service in valuing CMOs and other mortgage-backed securities also include new issue data, monthly payment information, whole loan collateral performance, and “To Be Announced” prices. In valuations of securities issued by state and political subdivisions, inputs used by the third-party pricing service also include material event notices.

On a monthly basis, we validate the pricing methodologies utilized by our third-party pricing service to ensure the fair value determination is consistent with the applicable accounting guidance and that our assets are properly classified in the fair value hierarchy. To perform this validation, we:

• review documentation received from our third-party pricing service regarding the inputs used in their valuations and determine a level assessment for each category of securities;

• substantiate actual inputs used for a sample of securities by comparing the actual inputs used by our third-party pricing service to comparable inputs for similar securities; and

• substantiate the fair values determined for a sample of securities by comparing the fair values provided by our third-party pricing service to prices from other independent sources for the same and similar securities. We analyze variances and conduct additional research with our third-party pricing service and take appropriate steps based on our findings.

Private equity and mezzanine investments. Private equity and mezzanine investments consist of investments in debt and equity securities through our Real Estate Capital line of business. They include direct investments made in specific properties, as well as indirect investments made in funds that pool assets of many investors to invest in properties. There is no active market for these investments, so we employ other valuation methods. The portion of our Real Estate Capital line of business involved with private equity and mezzanine investments is accounted for as an investment company in accordance with the applicable accounting guidance, whereby all investments are recorded at fair value.

Private equity and mezzanine investments are classified as Level 3 assets since our judgment significantly influences the determination of fair value. Our Fund Management, Asset Management, and Accounting groups are responsible for reviewing the valuation models and determining the fair value of these investments on a quarterly basis. Direct investments in properties are initially valued based upon the transaction price. This amount is then adjusted to fair value based on current market conditions using the discounted cash flow method based on the expected investment exit date. The fair values of the assets are reviewed and adjusted quarterly. Periodically, we obtain a third-party appraisal for the investments to validate the specific inputs for determining fair value. Inputs used in calculating future cash flows include the cost of build-out, future selling prices, current market outlook, and operating performance of the investment. Investment income and expense assumptions are based on market inputs, such as rental/leasing rates and vacancy rates for the geographic- and property type-specific markets. For investments under construction, investment income and expense assumptions are determined using expected future build-out costs and anticipated future rental prices based on current market conditions, discount rates, holding period, the terminal cap rate, and sales commissions paid in the terminal cap year. For investments that are in lease-up or are fully leased, income and expense assumptions are based on the geographic market’s current lease rates, underwritten expenses, market lease terms, and historical vacancy rates. Asset Management validates these inputs on a quarterly basis through the use of industry publications, third-party broker opinions, and comparable property sales, where applicable. Changes in the significant inputs (rental/leasing rates, vacancy rates, valuation capitalization rate, discount rate, and terminal cap rate) would significantly affect the fair value measurement. Increases in rental/leasing rates would increase fair value while increases in the vacancy rates, the valuation capitalization rate, the discount rate, and the terminal cap rate would decrease fair value.

Consistent with accounting guidance, indirect investments are valued using a methodology that allows the use of statements from the investment manager to calculate net asset value per share. A primary input used in estimating fair value is the most recent value of the capital accounts as reported by the general partners of the funds in which we invest. The calculation to determine the investment’s fair value is based on our percentage ownership in the fund multiplied by the net asset value of the fund, as provided by the fund manager. Under the requirements of the Volcker Rule, we will be required to dispose of some or all of our indirect investments. As of March 31, 2015, management has not committed to a plan to sell these investments. Therefore, these investments continue to be valued using the net asset value per share methodology. For more information about the Volcker Rule, see the discussion under the heading “Other Regulatory Developments under the Dodd-Frank Act – ‘Volcker Rule’” in the section entitled “Supervision and Regulation” beginning on page 16 of our 2014 Form 10-K.

Investments in real estate private equity funds are included within private equity and mezzanine investments. The main purpose of these funds is to acquire a portfolio of real estate investments that provides attractive risk-adjusted returns and current income for investors. Certain of these investments do not have readily determinable fair values and represent our ownership interest in an entity that follows measurement principles under investment company accounting.

The following table presents the fair value of our indirect investments and related unfunded commitments at March 31, 2015. We did not provide any financial support to investees related to our direct and indirect investments for the three months ended March 31, 2015, and March 31, 2014.

March 31, 2015			Unfunded
in millions	Fair Value		Commitments
INVESTMENT TYPE
Indirect investments
Passive funds (a)	$	9	$	1
Co-managed funds (b)		—		—
Total	$	9	$	1

(a) We invest in passive funds, which are multi-investor private equity funds. These investments can never be redeemed. Instead, distributions are received through the liquidation of the underlying investments in the funds. Some funds have no restrictions on sale, while others require investors to remain in the fund until maturity. The funds will be liquidated over a period of one to four years. The purpose of KREEC’s funding is to allow funds to make additional investments and keep a certain market value threshold in the funds. KREEC is obligated to provide financial support, as all investors are required, to fund based on their ownership percentage, as noted in the Limited Partnership Agreements.

(b) We are a manager or co-manager of these funds, which have been written down to zero. These investments can never be redeemed. Instead, distributions are received through the liquidation of the underlying investments in the funds. In addition, we receive management fees. We can sell or transfer our interest in any of these funds with the written consent of a majority of the fund’s investors. In one instance, the other co-manager of the fund must consent to the sale or transfer of our interest in the fund. The funds will mature over a period of one to two years. The purpose of KREEC’s funding is to allow funds to make additional investments and keep a certain market value threshold in the funds. KREEC is obligated to provide financial support, as all investors are required, to fund based on their ownership percentage, as noted in the Limited Partnership Agreements.

Principal investments. Principal investments consist of investments in equity and debt instruments made by our principal investing entities. They include direct investments (investments made in a particular company) and indirect investments (investments made through funds that include other investors). Our principal investing entities are accounted for as investment companies in accordance with the applicable accounting guidance, whereby each investment is adjusted to fair value with any net realized or unrealized gain/loss recorded in the current period’s earnings. This process is a coordinated and documented effort by the Principal Investing Entities Deal Team (individuals from one of the independent investment managers who oversee these instruments), accounting staff, and the Investment Committee (individual employees and a former employee of Key and one of the independent investment managers). This process involves an in-depth review of the condition of each investment depending on the type of investment.

Our direct investments include investments in debt and equity instruments of both private and public companies. When quoted prices are available in an active market for the identical direct investment, we use the quoted prices in the valuation process, and the related investments are classified as Level 1 assets. However, in most cases, quoted market prices are not available for our direct investments, and we must perform valuations using other methods. These direct investment valuations are an in-depth analysis of the condition of each investment and are based on the unique facts and circumstances related to each individual investment. There is a certain amount of subjectivity surrounding the valuation of these investments due to the combination of quantitative and qualitative factors that are used in the valuation models. Therefore, these direct investments are classified as Level 3 assets. The specific inputs used in the valuations of each type of direct investment are described below.

Interest-bearing securities (i.e., loans) are valued on a quarterly basis. Valuation adjustments are determined by the Principal Investing Entities Deal Team and are subject to approval by the Investment Committee. Valuations of debt instruments are based on the Principal Investing Entities Deal Team’s knowledge of the current financial status of the subject company, which is regularly monitored throughout the term of the investment. Significant unobservable inputs used in the valuations of these investments include the company’s payment history, adequacy of cash flows from operations, and current operating results, including market multiples and historical and forecast earnings before interest, taxation, depreciation, and amortization (EBITDA). Inputs can also include the seniority of the debt, the nature of any pledged collateral, the extent to which the security interest is perfected, and the net liquidation value of collateral.

Valuations of equity instruments of private companies, which are prepared on a quarterly basis, are based on current market conditions and the current financial status of each company. A valuation analysis is performed to value each investment. The valuation analysis is reviewed by the Principal Investing Entities Deal Team Member, and reviewed and approved by the Chief Administrative Officer of one of the independent investment managers. Significant unobservable inputs used in these valuations include adequacy of the company’s cash flows from operations, any significant change in the company’s performance since the prior valuation, and any significant equity issuances by the company. Equity instruments of public companies are valued using quoted prices in an active market for the identical security. If the instrument is restricted, the fair value is determined considering the number of shares traded daily, the number of the company’s total restricted shares, and price volatility.

Our indirect investments are classified as Level 3 assets since our significant inputs are not observable in the marketplace. Indirect investments include primary and secondary investments in private equity funds engaged mainly in venture- and growth-oriented investing. These investments do not have readily determinable fair values. Indirect investments are valued using a methodology that is consistent with accounting guidance that allows us to estimate fair value based upon net asset value per share (or its equivalent, such as member units or an ownership interest in partners’ capital to which a proportionate share of net assets is attributed). The significant unobservable input used in estimating fair value is primarily the most recent value of the capital accounts as reported by the general partners of the funds in which we invest. Under the requirements of the Volcker Rule, we will be required to dispose of some or all of our indirect investments. As of March 31, 2015, management has not committed to a plan to sell these investments. Therefore, these investments continue to be valued using the net asset value per share methodology.

For indirect investments, management may make adjustments it deems appropriate to the net asset value if it is determined that the net asset value does not properly reflect fair value. In determining the need for an adjustment to net asset value, management performs an analysis of the private equity funds based on the independent fund manager’s valuations as well as management’s own judgment. Significant unobservable inputs used in these analyses include current fund financial information provided by the fund manager, an estimate of future proceeds expected to be received on the investment, and market multiples. Management also considers whether the independent fund manager adequately marks down an impaired investment, maintains financial statements in accordance with GAAP, or follows a practice of holding all investments at cost.

The following table presents the fair value of our direct and indirect principal investments and related unfunded commitments at March 31, 2015, as well as financial support provided for the three months ended March 31, 2015, and March 31, 2014:

					Financial support provided
					Three months ended March 31,
	March 31, 2015				2015				2014
in millions	Fair Value		Unfunded Commitments		Funded Commitments		Funded Other		Funded Commitments		Funded Other
INVESTMENT TYPE
Direct investments (a)	$	74		—		—	$	1		—	$	1
Indirect investments (b)		301	$	57	$	2		—	$	2		—
Total	$	375	$	57	$	2	$	1	$	2	$	1

(a) Our direct investments consist of equity and debt investments directly in independent business enterprises. Operations of the business enterprises are handled by management of the portfolio company. The purpose of funding these enterprises is to provide financial support for business development and acquisition strategies. We infuse equity capital based on an initial contractual cash contribution and later from additional requests on behalf of the companies’ management.

(b) Our indirect investments consist of buyout funds, venture capital funds, and fund of funds. These investments are generally not redeemable. Instead, distributions are received through the liquidation of the underlying investments of the fund. An investment in any one of these funds typically can be sold only with the approval of the fund’s general partners. We estimate that the underlying investments of the funds will be liquidated over a period of one to nine years. The purpose of funding our capital commitments to these investments is to allow the funds to make additional follow-on investments and pay fund expenses until the fund dissolves. We, and all other investors in the fund, are obligated to fund the full amount of our respective capital commitments to the fund based on our and their respective ownership percentages, as noted in the applicable Limited Partnership Agreement.

Derivatives. Exchange-traded derivatives are valued using quoted prices and, therefore, are classified as Level 1 instruments. However, only a few types of derivatives are exchange-traded. The majority of our derivative positions are valued using internally developed models based on market convention that use observable market inputs, such as interest rate curves, yield curves, LIBOR and Overnight Index Swap (OIS) discount rates and curves, index pricing curves, foreign currency curves, and volatility surfaces (a three-dimensional graph of implied volatility against strike price and maturity). These derivative contracts, which are classified as Level 2 instruments, include interest rate swaps, certain options, cross currency swaps, and credit default swaps.

In addition, we have several customized derivative instruments and risk participations that are classified as Level 3 instruments. These derivative positions are valued using internally developed models, with inputs consisting of available market data, such as bond spreads and asset values, as well as unobservable internally derived assumptions, such as loss probabilities and internal risk ratings of customers. These derivatives are priced monthly by our Market Risk Management group using a credit valuation adjustment methodology. Swap details with the customer and our related participation percentage, if applicable, are obtained from our derivatives accounting system, which is the system of record. Applicable customer rating information is obtained from the particular loan system and represents an unobservable input to this valuation process. Using these various inputs, a valuation of these Level 3 derivatives is performed using a model that was acquired from a third party. In summary, the fair value represents an estimate of the amount that the risk participation counterparty would need to pay/receive as of the measurement date based on the probability of customer default on the swap transaction and the fair value of the underlying customer swap. Therefore, a higher loss probability and a lower credit rating would negatively affect the fair value of the risk participations and a lower loss probability and higher credit rating would positively affect the fair value of the risk participations.

Market convention implies a credit rating of “AA” equivalent in the pricing of derivative contracts, which assumes all counterparties have the same creditworthiness. To reflect the actual exposure on our derivative contracts related to both counterparty and our own creditworthiness, we record a fair value adjustment in the form of a credit valuation adjustment. The credit component is determined by individual counterparty based on the probability of default and considers master netting and collateral agreements. The credit valuation adjustment is classified as Level 3. Our Market Risk Management group is responsible for the valuation policies and procedures related to this credit valuation adjustment. A weekly reconciliation process is performed to ensure that all applicable derivative positions are covered in the calculation, which includes transmitting customer exposures and reserve reports to trading management, derivative traders and marketers, derivatives middle office, and corporate accounting personnel. On a quarterly basis, Market Risk Management prepares the credit valuation adjustment calculation, which includes a detailed reserve comparison with the previous quarter, an analysis for change in reserve, and a reserve forecast to ensure that the credit valuation adjustment recorded at period end is sufficient.

Other assets and liabilities. The value of our short positions is driven by the valuation of the underlying securities. If quoted prices for identical securities are not available, fair value is determined by using pricing models or quoted prices of similar securities, resulting in a Level 2 classification. For the interest rate-driven products, such as government bonds, U.S. Treasury bonds and other products backed by the U.S. government, inputs include spreads, credit ratings, and interest rates. For the credit-driven products, such as corporate bonds and mortgage-backed securities, inputs include actual trade data for comparable assets and bids and offers.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

Certain assets and liabilities are measured at fair value on a recurring basis in accordance with GAAP. The following tables present these assets and liabilities at March 31, 2015, December 31, 2014, and March 31, 2014.

March 31, 2015
in millions	Level 1		Level 2		Level 3		Total
ASSETS MEASURED ON A RECURRING BASIS
Trading account assets:
U.S. Treasury, agencies and corporations		—	$	668		—	$	668
States and political subdivisions		—		35		—		35
Collateralized mortgage obligations		—		—		—		—
Other mortgage-backed securities		—		51		—		51
Other securities	$	5		25		—		30
Total trading account securities		5		779		—		784
Commercial loans		—		5		—		5
Total trading account assets		5		784		—		789
Securities available for sale:
States and political subdivisions		—		22		—		22
Collateralized mortgage obligations		—		11,163		—		11,163
Other mortgage-backed securities		—		1,902		—		1,902
Other securities		23		—	$	10		33
Total securities available for sale		23		13,087		10		13,120
Other investments:
Principal investments:
Direct		1		—		73		74
Indirect		—		—		301		301
Total principal investments		1		—		374		375
Equity and mezzanine investments:
Direct		—		—		—		—
Indirect		—		—		9		9
Total equity and mezzanine investments		—		—		9		9
Total other investments		1		—		383		384
Derivative assets:
Interest rate		—		1,034		10		1,044
Foreign exchange		164		8		—		172
Commodity		—		581		—		581
Credit		—		2		3		5
Derivative assets		164		1,625		13		1,802
Netting adjustments (a)		—		—		—		(1,071	)
Total derivative assets		164		1,625		13		731
Accrued income and other assets		—		2		—		2
Total assets on a recurring basis at fair value	$	193	$	15,498	$	406	$	15,026
LIABILITIES MEASURED ON A RECURRING BASIS
Bank notes and other short-term borrowings:
Short positions		—	$	607		—	$	607
Derivative liabilities:
Interest rate		—		692		—		692
Foreign exchange	$	138		9		—		147
Commodity		—		567		—		567
Credit		—		6	$	1		7
Derivative liabilities		138		1,274		1		1,413
Netting adjustments (a)		—		—		—		(588	)
Total derivative liabilities		138		1,274		1		825
Accrued expense and other liabilities		—		2		—		2
Total liabilities on a recurring basis at fair value	$	138	$	1,883	$	1	$	1,434

(a) Netting adjustments represent the amounts recorded to convert our derivative assets and liabilities from a gross basis to a net basis in accordance with applicable accounting guidance. The net basis takes into account the impact of bilateral collateral and master netting agreements that allow us to settle all derivative contracts with a single counterparty on a net basis and to offset the net derivative position with the related cash collateral. Total derivative assets and liabilities include these netting adjustments.

December 31, 2014
in millions	Level 1		Level 2		Level 3		Total
ASSETS MEASURED ON A RECURRING BASIS
Trading account assets:
U.S. Treasury, agencies and corporations		—	$	555		—	$	555
States and political subdivisions		—		38		—		38
Collateralized mortgage obligations		—		—		—		—
Other mortgage-backed securities		—		124		—		124
Other securities	$	2		29		—		31
Total trading account securities		2		746		—		748
Commercial loans		—		2		—		2
Total trading account assets		2		748		—		750
Securities available for sale:
States and political subdivisions		—		23		—		23
Collateralized mortgage obligations		—		11,270		—		11,270
Other mortgage-backed securities		—		2,035		—		2,035
Other securities		22		—	$	10		32
Total securities available for sale		22		13,328		10		13,360
Other investments:
Principal investments:
Direct		2		—		102		104
Indirect		—		—		302		302
Total principal investments		2		—		404		406
Equity and mezzanine investments:
Direct		—		—		—		—
Indirect		—		—		10		10
Total equity and mezzanine investments		—		—		10		10
Total other investments		2		—		414		416
Derivative assets:
Interest rate		—		924		13		937
Foreign exchange		91		2		—		93
Commodity		—		608		—		608
Credit		—		2		3		5
Derivative assets		91		1,536		16		1,643
Netting adjustments (a)		—		—		—		(1,034	)
Total derivative assets		91		1,536		16		609
Accrued income and other assets		—		—		—		—
Total assets on a recurring basis at fair value	$	117	$	15,612	$	440	$	15,135
LIABILITIES MEASURED ON A RECURRING BASIS
Bank notes and other short-term borrowings:
Short positions		—	$	423		—	$	423
Derivative liabilities:
Interest rate		—		644		—		644
Foreign exchange	$	77		4		—		81
Commodity		—		594		—		594
Credit		—		6	$	1		7
Derivative liabilities		77		1,248		1		1,326
Netting adjustments (a)		—		—		—		(542	)
Total derivative liabilities		77		1,248		1		784
Accrued expense and other liabilities		—		—		—		—
Total liabilities on a recurring basis at fair value	$	77	$	1,671	$	1	$	1,207

(a) Netting adjustments represent the amounts recorded to convert our derivative assets and liabilities from a gross basis to a net basis in accordance with applicable accounting guidance. The net basis takes into account the impact of bilateral collateral and master netting agreements that allow us to settle all derivative contracts with a single counterparty on a net basis and to offset the net derivative position with the related cash collateral. Total derivative assets and liabilities include these netting adjustments.

March 31, 2014
in millions	Level 1		Level 2		Level 3		Total
ASSETS MEASURED ON A RECURRING BASIS
Trading account assets:
U.S. Treasury, agencies and corporations		—	$	533		—	$	533
States and political subdivisions		—		46		—		46
Collateralized mortgage obligations		—		9		—		9
Other mortgage-backed securities		—		199		—		199
Other securities	$	4		47		—		51
Total trading account securities		4		834		—		838
Commercial loans		—		2		—		2
Total trading account assets		4		836		—		840
Securities available for sale:
States and political subdivisions		—		37		—		37
Collateralized mortgage obligations		—		10,469		—		10,469
Other mortgage-backed securities		—		1,832		—		1,832
Other securities		21		—		—		21
Total securities available for sale		21		12,338		—		12,359
Other investments:
Principal investments:
Direct		—		—	$	141		141
Indirect		—		—		403		403
Total principal investments		—		—		544		544
Equity and mezzanine investments:
Direct		—		—		—		—
Indirect		—		—		20		20
Total equity and mezzanine investments		—		—		20		20
Total other investments		—		—		564		564
Derivative assets:
Interest rate		—		943		22		965
Foreign exchange		51		9		—		60
Commodity		—		110		—		110
Credit		—		1		4		5
Derivative assets		51		1,063		26		1,140
Netting adjustments (a)		—		—		—		(713	)
Total derivative assets		51		1,063		26		427
Accrued income and other assets		—		—		—		—
Total assets on a recurring basis at fair value	$	76	$	14,237	$	590	$	14,190
LIABILITIES MEASURED ON A RECURRING BASIS
Bank notes and other short-term borrowings:
Short positions	$	3	$	460		—	$	463
Derivative liabilities:
Interest rate		—		687		—		687
Foreign exchange		43		9		—		52
Commodity		—		105		—		105
Credit		—		11	$	1		12
Derivative liabilities		43		812		1		856
Netting adjustments (a)		—		—		—		(448	)
Total derivative liabilities		43		812		1		408
Accrued expense and other liabilities		—		—		—		—
Total liabilities on a recurring basis at fair value	$	46	$	1,272	$	1	$	871

(a) Netting adjustments represent the amounts recorded to convert our derivative assets and liabilities from a gross basis to a net basis in accordance with applicable accounting guidance. The net basis takes into account the impact of bilateral collateral and master netting agreements that allow us to settle all derivative contracts with a single counterparty on a net basis and to offset the net derivative position with the related cash collateral. Total derivative assets and liabilities include these netting adjustments.

Changes in Level 3 Fair Value Measurements

The following table shows the change in the fair values of our Level 3 financial instruments for the three months ended March 31, 2015, and March 31, 2014. We mitigate the credit risk, interest rate risk, and risk of loss related to many of these Level 3 instruments by using securities and derivative positions classified as Level 1 or Level 2. Level 1 and Level 2 instruments are not included in the following table. Therefore, the gains or losses shown do not include the impact of our risk management activities.

in millions	Beginning of Period Balance		Gains (Losses) Included in Earnings			Purchases		Sales			Settlements		Transfers into Level 3 (d)			Transfers out of Level 3 (d)			End of Period Balance (f)		Unrealized Gains (Losses) Included in Earnings
March 31, 2015
Securities available for sale
Other securities	$	10		—			—		—			—		—			—		$	10		—
Other investments
Principal investments
Direct		102	$	13	(b)	$	1	$	(43	)		—		—			—			73	$	—
Indirect		302		17	(b)		1		(19	)		—		—			—			301		(8	) (b)
Equity and mezzanine investments
Direct		—		2	(b)		—		(2	)		—		—			—			—		2	(b)
Indirect		10		(1	) (b)		—		—			—		—			—			9		(1	) (b)
Derivative instruments (a)
Interest rate		13		2	(c)		—		—			—		—		$	(5	) (e)		10		—
Commodity		—		—			—		—			—		—			—			—		—
Credit		2		(3	) (c)		—		—		$	3		—			—			2		—
in millions	Beginning of Period Balance		Gains (Losses) Included in Earnings			Purchases		Sales			Settlements		Transfers into Level 3 (d)			Transfers out of Level 3 (d)			End of Period Balance (f)		Unrealized Gains (Losses) Included in Earnings
March 31, 2014
Other investments
Principal investments
Direct	$	141	$	4	(b)		—	$	(4	)		—		—			—		$	141	$	6	(b)
Indirect		413		20	(b)	$	1		(31	)		—		—			—			403		9	(b)
Equity and mezzanine investments
Direct		—		—			—		—			—		—			—			—		—
Indirect		23		(1	) (b)		—		(2	)				—			—			20		(1	) (b)
Derivative instruments (a)
Interest rate		25		1	(c)		2		(1	)		—	$	3	(e)	$	(8	) (e)		22		—
Commodity		—		—			—		—			—		—			—			—		—
Credit		3		(2	) (c)		—		—		$	2		—			—			3		—

(a) Amounts represent Level 3 derivative assets less Level 3 derivative liabilities.

(b) Realized and unrealized gains and losses on principal investments are reported in “net gains (losses) from principal investing” on the income statement. Realized and unrealized losses on private equity and mezzanine investments are reported in “other income” on the income statement.

(c) Realized and unrealized gains and losses on derivative instruments are reported in “corporate services income” and “other income” on the income statement.

(d) Our policy is to recognize transfers into and transfers out of Level 3 as of the end of the reporting period.

(e) Certain derivatives previously classified as Level 2 were transferred to Level 3 because Level 3 unobservable inputs became significant. Certain derivatives previously classified as Level 3 were transferred to Level 2 because Level 3 unobservable inputs became less significant.

(f) There were no issuances for the three-month periods ended March 31, 2015, and March 31, 2014.

Assets Measured at Fair Value on a Nonrecurring Basis

Certain assets and liabilities are measured at fair value on a nonrecurring basis in accordance with GAAP. The adjustments to fair value generally result from the application of accounting guidance that requires assets and liabilities to be recorded at the lower of cost or fair value, or assessed for impairment. The following table presents our assets measured at fair value on a nonrecurring basis at March 31, 2015, December 31, 2014, and March 31, 2014:

	March 31, 2015
in millions	Level 1		Level 2		Level 3		Total
ASSETS MEASURED ON A NONRECURRING BASIS
Impaired loans		—		—	$	15	$	15
Loans held for sale (a)		—		—		—		—
Accrued income and other assets		—		—		18		18
Total assets on a nonrecurring basis at fair value		—		—	$	33	$	33
	December 31, 2014
in millions	Level 1		Level 2		Level 3		Total
ASSETS MEASURED ON A NONRECURRING BASIS
Impaired loans		—		—	$	5	$	5
Loans held for sale (a)		—		—		—		—
Accrued income and other assets		—		—		13		13
Total assets on a nonrecurring basis at fair value		—		—	$	18	$	18
	March 31, 2014
in millions	Level 1		Level 2		Level 3		Total
ASSETS MEASURED ON A NONRECURRING BASIS
Impaired loans		—		—	$	1	$	1
Loans held for sale (a)		—		—		—		—
Accrued income and other assets		—		—		13		13
Total assets on a nonrecurring basis at fair value		—		—	$	14	$	14

(a) During the first quarter of 2015, we transferred $10 million of commercial and consumer loans and leases at their current fair value from held-for-sale status to the held-to-maturity portfolio, compared to $11 million during 2014, and $2 million during the first quarter of 2014.

Impaired loans. We typically adjust the carrying amount of our impaired loans when there is evidence of probable loss and the expected fair value of the loan is less than its contractual amount. The amount of the impairment may be determined based on the estimated present value of future cash flows, the fair value of the underlying collateral, or the loan’s observable market price. Impaired loans with a specifically allocated allowance based on cash flow analysis or the value of the underlying collateral are classified as Level 3 assets. Impaired loans with a specifically allocated allowance based on an observable market price that reflects recent sale transactions for similar loans and collateral are classified as Level 2 assets.

The evaluations for impairment are prepared by the responsible relationship managers in our Asset Recovery Group and are reviewed and approved by the Asset Recovery Group Executive. The Asset Recovery Group is part of the Risk Management Group and reports to our Chief Credit Officer. These evaluations are performed in conjunction with the quarterly ALLL process.

Loans are evaluated for impairment on a quarterly basis. Loans included in the previous quarter’s review are re-evaluated and if their values have changed materially, the underlying information (loan balance and in most cases, collateral value) is compared. Material differences are evaluated for reasonableness, and the relationship managers and their senior managers consider these differences and determine if any adjustment is necessary. The inputs are developed and substantiated on a quarterly basis based on current borrower developments, market conditions, and collateral values.

The following two internal methods are used to value impaired loans:

• Cash flow analysis considers internally developed inputs, such as discount rates, default rates, costs of foreclosure, and changes in collateral values.

• The fair value of the collateral, which may take the form of real estate or personal property, is based on internal estimates, field observations, and assessments provided by third-party appraisers. We perform or reaffirm appraisals of collateral-dependent impaired loans at least annually. Appraisals may occur more frequently if the most recent appraisal does not accurately reflect the current market, the debtor is seriously delinquent or chronically past due, or there has been a material deterioration in the performance of the project or condition of the property. Adjustments to outdated appraisals that result in an appraisal value less than the carrying amount of a collateral-dependent impaired loan are reflected in the ALLL.

Impairment valuations are back-tested each quarter, based on a look-back of actual incurred losses on closed deals previously evaluated for impairment. The overall percent variance of actual net loan charge-offs on closed deals compared to the specific allocations on such deals is considered in determining each quarter’s specific allocations.

Loans held for sale. Through a quarterly analysis of our loan portfolios held for sale, which include both performing and nonperforming loans, we determine any adjustments necessary to record the portfolios at the lower of cost or fair value in accordance with GAAP. Our analysis concluded that there were no loans held for sale adjusted to fair value at March 31, 2015, December 31, 2014, or March 31, 2014.

Market inputs, including updated collateral values, and reviews of each borrower’s financial condition influenced the inputs used in our internal models and other valuation methodologies. The valuations are prepared by the responsible relationship managers or analysts in our Asset Recovery Group and are reviewed and approved by the Asset Recovery Group Executive. Actual gains or losses realized on the sale of various loans held for sale provide a back-testing mechanism for determining whether our valuations of these loans held for sale that are adjusted to fair value are appropriate.

Valuations of performing commercial mortgage and construction loans held for sale are conducted using internal models that rely on market data from sales or nonbinding bids on similar assets, including credit spreads, treasury rates, interest rate curves, and risk profiles. These internal models also rely on our own assumptions about the exit market for the loans and details about individual loans within the respective portfolios. Therefore, we classify these loans as Level 3 assets. The inputs related to our assumptions and other internal loan data include changes in real estate values, costs of foreclosure, prepayment rates, default rates, and discount rates.

Valuations of nonperforming commercial mortgage and construction loans held for sale are based on current agreements to sell the loans or approved discounted payoffs. If a negotiated value is not available, we use third-party appraisals, adjusted for current market conditions. Since valuations are based on unobservable data, these loans are classified as Level 3 assets.

Direct financing leases and operating lease assets held for sale. Our KEF Accounting and Capital Markets groups are responsible for the valuation policies and procedures related to these assets. The Managing Director of the KEF Capital Markets group reports to the President of the KEF line of business. A weekly report is distributed to both groups that lists all equipment finance deals booked in the warehouse portfolio. On a quarterly basis, the KEF Accounting group prepares a detailed held-for-sale roll-forward schedule that is reconciled to the general ledger and the above mentioned weekly report. KEF management uses the held-for-sale roll-forward schedule to determine if an impairment adjustment is necessary in accordance with lower of cost or fair value guidelines.

Valuations of direct financing leases and operating lease assets held for sale are performed using an internal model that relies on market data, such as swap rates and bond ratings, as well as our own assumptions about the exit market for the leases and details about the individual leases in the portfolio. The inputs based on our assumptions include changes in the value of leased items and internal credit ratings. These leases have been classified as Level 3 assets. KEF has master sale and assignment agreements with numerous institutional investors. Historically, multiple quotes are obtained, with the most reasonable formal quotes retained. These nonbinding quotes generally lead to a sale to one of the parties who provided the quote. Leases for which we receive a current nonbinding bid, and the sale is considered probable, may be classified as Level 2. The validity of these quotes is supported by historical and continued dealings with these institutions that have fulfilled the nonbinding quote in the past. In a distressed market where market data is not available, an estimate of the fair value of the leased asset may be used to value the lease, resulting in a Level 3 classification. In an inactive market, the market value of the assets held for sale is determined as the present value of the future cash flows discounted at the current buy rate. KEF Accounting calculates an estimated fair value buy rate based on the credit premium inherent in the relevant bond index and the appropriate swap rate on the measurement date. The amount of the adjustment is calculated as book value minus the present value of future cash flows discounted at the calculated buy rate.

Goodwill and other intangible assets. On a quarterly basis, we review impairment indicators to determine whether we need to evaluate the carrying amount of goodwill and other intangible assets assigned to Key Community Bank and Key Corporate Bank. We also perform an annual impairment test for goodwill. Accounting guidance permits an entity to first assess qualitative factors to determine whether additional goodwill impairment testing is required. However, we did not choose to utilize a qualitative assessment in our annual goodwill impairment testing performed during the fourth quarter of 2014. Fair value of our reporting units is determined using both an income approach (discounted cash flow method) and a market approach (using publicly traded company and recent transactions data), which are weighted equally.

Inputs used include market-available data, such as industry, historical, and expected growth rates, and peer valuations, as well as internally driven inputs, such as forecasted earnings and market participant insights. Since this valuation relies on a significant number of unobservable inputs, we have classified goodwill as Level 3. We use a third-party valuation services provider to perform the annual, and if necessary, any interim, Step 1 valuation process, and to perform a Step 2 analysis, if needed, on our reporting units. Annual and any interim valuations prepared by the third-party valuation services provider are reviewed by the appropriate individuals within Key to ensure that the assumptions used in preparing the analysis are appropriate and properly supported. For additional information on the results of recent goodwill impairment testing, see Note 10 (“Goodwill and Other Intangible Assets”) beginning on page 173 of our 2014 Form 10-K.

The fair value of other intangible assets is calculated using a cash flow approach. While the calculation to test for recoverability uses a number of assumptions that are based on current market conditions, the calculation is based primarily on unobservable assumptions. Accordingly, these assets are classified as Level 3. Our lines of business, with oversight from our Accounting group, are responsible for routinely, at least quarterly, assessing whether impairment indicators are present. All indicators that signal impairment may exist are appropriately considered in this analysis. An impairment loss is only recognized for a held-and-used long-lived asset if the sum of its estimated future undiscounted cash flows used to test for recoverability is less than its carrying value.

Our primary assumptions include attrition rates, alternative costs of funds, and rates paid on deposits. For additional information on the results of other intangible assets impairment testing, see Note 10 (“Goodwill and Other Intangible Assets”) beginning on page 173 of our 2014 Form 10-K.

Other assets. OREO and other repossessed properties are valued based on inputs such as appraisals and third-party price opinions, less estimated selling costs. Generally, we classify these assets as Level 3, but OREO and other repossessed properties for which we receive binding purchase agreements are classified as Level 2. Returned lease inventory is valued based on market data for similar assets and is classified as Level 2. Assets that are acquired through, or in lieu of, loan foreclosures are recorded initially as held for sale at fair value less estimated selling costs at the date of foreclosure. After foreclosure, valuations are updated periodically, and current market conditions may require the assets to be marked down further to a new cost basis.

• Commercial Real Estate Valuation Process: When a loan is reclassified from loan status to OREO because we took possession of the collateral, the Asset Recovery Group Loan Officer, in consultation with our OREO group, obtains a broker price opinion or a third-party appraisal, which is used to establish the fair value of the underlying collateral. The determined fair value of the underlying collateral less estimated selling costs becomes the carrying value of the OREO asset. In addition to valuations from independent third-party sources, our OREO group also writes down the carrying balance of OREO assets once a bona fide offer is contractually accepted, where the accepted price is lower than the current balance of the particular OREO asset. The fair value of OREO property is re-evaluated every 90 days and the OREO asset is adjusted as necessary.

• Consumer Real Estate Valuation Process: The Asset Management team within our Risk Operations group is responsible for valuation policies and procedures in this area. The current vendor partner provides monthly reporting of all broker price opinion evaluations, appraisals, and the monthly market plans. Market plans are reviewed monthly, and valuations are reviewed and tested monthly to ensure proper pricing has been established and guidelines are being met. Risk Operations Compliance validates and provides periodic testing of the valuation process. The Asset Management team reviews changes in fair value measurements. Third-party broker price opinions are reviewed every 180 days, and the fair value is written down based on changes to the valuation. External factors are documented and monitored as appropriate.

Quantitative Information about Level 3 Fair Value Measurements

The range and weighted-average of the significant unobservable inputs used to fair value our material Level 3 recurring and nonrecurring assets at March 31, 2015, December 31, 2014, and March 31, 2014, along with the valuation techniques used, are shown in the following table:

March 31, 2015	Fair Value of			Significant	Range
dollars in millions	Level 3 Assets		Valuation Technique	Unobservable Input	(Weighted-Average)
Recurring
Other investments — principal investments — direct:	$	73	Individual analysis of the condition of each investment
Debt instruments				EBITDA multiple		5.40 - 6.00 (5.50)
Equity instruments of private companies				EBITDA multiple (where applicable)		N/A (6.00)
				Revenue multiple (where applicable)		N/A (4.30)
Nonrecurring
Impaired loans		15	Fair value of underlying collateral	Discount		00.00 - 100.00% (36.00%)
Goodwill		1,057	Discounted cash flow and market data	Earnings multiple of peers		11.40 - 15.90 (12.92)
				Equity multiple of peers		1.20 - 1.22 (1.21)
				Control premium		10.00 - 30.00% (19.70%)
				Weighted-average cost of capital		13.00 - 14.00% (13.52%)
December 31, 2014 dollars in millions	Fair Value of Level 3 Assets		Valuation Technique	Significant Unobservable Input	Range (Weighted-Average)
Recurring
Other investments — principal investments — direct:	$	102	Individual analysis of the condition of each investment
Debt instruments				EBITDA multiple		5.40 - 6.00 (5.50)
Equity instruments of private companies				EBITDA multiple (where applicable)		5.50 - 6.20 (5.80)
				Revenue multiple (where applicable)		4.30 - 4.30 (4.30)
Nonrecurring
Impaired loans		5	Fair value of underlying collateral	Discount		10.00 - 64.00% (62.00%)
Goodwill		1,057	Discounted cash flow and market data	Earnings multiple of peers		11.40 - 15.90 (12.92)
				Equity multiple of peers		1.20 - 1.22 (1.21)
				Control premium		10.00 - 30.00% (19.70%)
				Weighted-average cost of capital		13.00 - 14.00% (13.52%)
March 31, 2014	Fair Value of			Significant	Range
dollars in millions	Level 3 Assets		Valuation Technique	Unobservable Input	(Weighted-Average)
Recurring
Other investments — principal investments — direct:	$	141	Individual analysis of the condition of each investment
Debt instruments				EBITDA multiple		5.40 - 6.00 (5.90)
Equity instruments of private companies				EBITDA multiple (where applicable)		4.90 - 10.00 (5.90)
				Revenue multiple (where applicable)		0.80 - 4.50 (4.10)
Nonrecurring
Impaired loans		1	Fair value of underlying collateral	Discount		0.00 - 80.00% (25.00%)
Goodwill		979	Discounted cash flow and market data	Earnings multiple of peers		10.10 - 14.40 (11.59)
				Equity multiple of peers		1.17 - 1.29 (1.24)
				Control premium		N/A (35.00 %)
				Weighted-average cost of capital		N/A (13.00%)

Fair Value Disclosures of Financial Instruments

The levels in the fair value hierarchy ascribed to our financial instruments and the related carrying amounts at March 31, 2015, December 31, 2014 and March 31, 2014, are shown in the following table.

	March 31, 2015
			Fair Value
in millions	Carrying Amount		Level 1		Level 2		Level 3		Netting Adjustment			Total
ASSETS
Cash and short-term investments (a)	$	3,884	$	3,884		—		—		—		$	3,884
Trading account assets (b)		789		5	$	784		—		—			789
Securities available for sale (b)		13,120		23		13,087	$	10		—			13,120
Held-to-maturity securities (c)		5,005		—		5,003		—		—			5,003
Other investments (b)		730		1		346		383		—			730
Loans, net of allowance (d)		57,159		—		—		55,702		—			55,702
Loans held for sale (b)		1,649		—		—		1,649		—			1,649
Derivative assets (b)		731		164		1,625		13	$	(1,071	) (f)		731
LIABILITIES
Deposits with no stated maturity (a)	$	65,984		—	$	65,984		—		—		$	65,984
Time deposits (e)		5,638	$	488		5,210		—		—			5,698
Short-term borrowings (a)		1,125		—		1,125		—		—			1,125
Long-term debt (e)		8,713		8,559		549		—		—			9,108
Derivative liabilities (b)		825		138		1,274	$	1	$	(588	) (f)		825
	December 31, 2014
			Fair Value
in millions	Carrying Amount		Level 1		Level 2		Level 3		Netting Adjustment			Total
ASSETS
Cash and short-term investments (a)	$	4,922	$	4,922		—		—		—		$	4,922
Trading account assets (b)		750		2	$	748		—		—			750
Securities available for sale (b)		13,360		22		13,328	$	10		—			13,360
Held-to-maturity securities (c)		5,015		—		4,974		—		—			4,974
Other investments (b)		760		2		344		414		—			760
Loans, net of allowance (d)		56,587		—		—		54,993		—			54,993
Loans held for sale (b)		734		—		—		734		—			734
Derivative assets (b)		609		91		1,536		16	$	(1,034	) (f)		609
LIABILITIES
Deposits with no stated maturity (a)	$	66,135		—	$	66,135		—		—		$	66,135
Time deposits (e)		5,863	$	564		5,361		—		—			5,925
Short-term borrowings (a)		998		—		998		—		—			998
Long-term debt (e)		7,875		7,625		626		—		—			8,251
Derivative liabilities (b)		784		77		1,248	$	1	$	(542	) (f)		784
	March 31, 2014
			Fair Value
in millions	Carrying Amount		Level 1		Level 2		Level 3		Netting Adjustment			Total
ASSETS
Cash and short-term investments (a)	$	3,331	$	3,331		—		—		—		$	3,331
Trading account assets (b)		840		4	$	836		—		—			840
Securities available for sale (b)		12,359		21		12,338		—		—			12,359
Held-to-maturity securities (c)		4,826		—		4,733		—		—			4,733
Other investments (b)		899		—		335	$	564		—			899
Loans, net of allowance (d)		54,611		—		—		53,211		—			53,211
Loans held for sale (b)		401		—		—		401		—			401
Derivative assets (b)		427		51		1,063		26	$	(713	) (f)		427
LIABILITIES
Deposits with no stated maturity (a)	$	60,130		—	$	60,130		—		—		$	60,130
Time deposits (e)		7,136	$	617		6,599		—		—			7,216
Short-term borrowings (a)		1,181		3		1,178		—		—			1,181
Long-term debt (e)		7,712		7,610		459		—		—			8,069
Derivative liabilities (b)		408		43		812	$	1	$	(448	) (f)		408

Valuation Methods and Assumptions

(a) Fair value equals or approximates carrying amount. The fair value of deposits with no stated maturity does not take into consideration the value ascribed to core deposit intangibles.

(b) Information pertaining to our methodology for measuring the fair values of these assets and liabilities is included in the sections entitled “Qualitative Disclosures of Valuation Techniques” and “Assets Measured at Fair Value on a Nonrecurring Basis” in this note.

(c) Fair values of held-to-maturity securities are determined by using models that are based on security-specific details, as well as relevant industry and economic factors. The most significant of these inputs are quoted market prices, interest rate spreads on relevant benchmark securities, and certain prepayment assumptions. We review the valuations derived from the models to ensure they are reasonable and consistent with the values placed on similar securities traded in the secondary markets.

(d) The fair value of loans is based on the present value of the expected cash flows. The projected cash flows are based on the contractual terms of the loans, adjusted for prepayments and use of a discount rate based on the relative risk of the cash flows, taking into account the loan type, maturity of the loan, liquidity risk, servicing costs, and a required return on debt and capital. In addition, an incremental liquidity discount is applied to certain loans, using historical sales of loans during periods of similar economic conditions as a benchmark. The fair value of loans includes lease financing receivables at their aggregate carrying amount, which is equivalent to their fair value.

(e) Fair values of time deposits and long-term debt are based on discounted cash flows utilizing relevant market inputs.

(f) Netting adjustments represent the amounts recorded to convert our derivative assets and liabilities from a gross basis to a net basis in accordance with applicable accounting guidance. The net basis takes into account the impact of bilateral collateral and master netting agreements that allow us to settle all derivative contracts with a single counterparty on a net basis and to offset the net derivative position with the related cash collateral. Total derivative assets and liabilities include these netting adjustments.

We use valuation methods based on exit market prices in accordance with applicable accounting guidance. We determine fair value based on assumptions pertaining to the factors that a market participant would consider in valuing the asset. A substantial portion of our fair value adjustments are related to liquidity. During 2014 and the first quarter of 2015, the fair values of our loan portfolios have generally remained stable, primarily due to increasing liquidity in the loan markets. If we were to use different assumptions, the fair values shown in the preceding table could change. Also, because the applicable accounting guidance for financial instruments excludes certain financial instruments and all nonfinancial instruments from its disclosure requirements, the fair value amounts shown in the table above do not, by themselves, represent the underlying value of our company as a whole.

Education lending business. The discontinued education lending business consists of assets and liabilities (recorded at fair value) in the securitization trusts, as well as loans in portfolio (recorded at fair value), and loans in portfolio (recorded at carrying value with appropriate valuation reserves) that are outside the trusts. All of these loans were excluded from the table above as follows:

• Loans at carrying value, net of allowance, of $2.0 billion ($1.7 billion at fair value) at March 31, 2015, $2.1 billion ($1.8 billion at fair value) at December 31, 2014, and $2.3 billion ($1.9 billion at fair value) at March 31, 2014;

• Portfolio loans at fair value of $187 million at March 31, 2015, $191 million at December 31, 2014, and $143 million at March 31, 2014; and

• Loans in the trusts at fair value of $1.9 billion at March 31, 2014.

Securities issued by the education lending securitization trusts, which are the primary liabilities of the trusts, totaling $1.8 billion in fair value at March 31, 2014, are also excluded from the above table.

These loans and securities are classified as Level 3 because we rely on unobservable inputs when determining fair value since observable market data is not available.

On September 30, 2014, we sold the residual interests in all of our outstanding education loan securitization trusts to a third party. With that transaction, in accordance with the applicable accounting guidance, we deconsolidated the securitization trusts and removed the trust assets and liabilities from our balance sheet at September 30, 2014. Additional information regarding the sale of the residual interests and deconsolidation of the securitization trusts is provided in Note 11 (“Acquisitions and Discontinued Operations”).

Residential real estate mortgage loans. Residential real estate mortgage loans with carrying amounts of $2.2 billion at March 31, 2015, December 31, 2014, and March 31, 2014, are included in “Loans, net of allowance” in the previous table.

Short-term financial instruments. For financial instruments with a remaining average life to maturity of less than six months, carrying amounts were used as an approximation of fair values.

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Asset Quality - Credit Risk Profile by Regulatory Classifications (Detail) (Residential - Prime, Financing Receivable [Member], USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Financing Receivable, Recorded Investment [Line Items]
Total	$ 12,742	$ 12,764
Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	12,463	12,445
Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	$ 279	$ 319

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Acquisitions and Discontinued Operations - Consolidated Assets and Liabilities at Fair Value on Recurring Basis (Detail) (Recurring [Member], USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014	Mar. 31, 2014
ASSETS MEASURED ON A RECURRING BASIS
Total assets at fair value	$ 15,026	$ 15,135	$ 14,190
LIABILITIES MEASURED ON A RECURRING BASIS
Total liabilities on a recurring basis at fair value	1,434	1,207	871
Trust [Member] | Education Lending [Member]
ASSETS MEASURED ON A RECURRING BASIS
Portfolio loans	187	191	143
Trust loans			1,893
Trust other assets			19
Total assets at fair value	187	191	2,055
LIABILITIES MEASURED ON A RECURRING BASIS
Trust securities			1,796
Trust other liabilities			20
Total liabilities on a recurring basis at fair value			1,816
Level 3 [Member]
ASSETS MEASURED ON A RECURRING BASIS
Total assets at fair value	406	440	590
LIABILITIES MEASURED ON A RECURRING BASIS
Total liabilities on a recurring basis at fair value	1	1	1
Level 3 [Member] | Trust [Member] | Education Lending [Member]
ASSETS MEASURED ON A RECURRING BASIS
Portfolio loans	187	191	143
Trust loans			1,893
Trust other assets			19
Total assets at fair value	187	191	2,055
LIABILITIES MEASURED ON A RECURRING BASIS
Trust securities			1,796
Trust other liabilities			20
Total liabilities on a recurring basis at fair value			$ 1,816

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Loans and Loans Held for Sale

3 Months Ended

Mar. 31, 2015

Text Block [Abstract]

Loans and Loans Held for Sale

3. Loans and Loans Held for Sale

Our loans by category are summarized as follows:

in millions	March 31, 2015		December 31, 2014		March 31, 2014
Commercial, financial and agricultural (a)	$	28,783	$	27,982	$	26,224
Commercial real estate:
Commercial mortgage		8,162		8,047		7,877
Construction		1,142		1,100		1,007
Total commercial real estate loans		9,304		9,147		8,884
Commercial lease financing (b)		4,064		4,252		4,396
Total commercial loans		42,151		41,381		39,504
Residential — prime loans:
Real estate — residential mortgage		2,231		2,225		2,183
Home equity:
Key Community Bank		10,270		10,366		10,281
Other		253		267		315
Total home equity loans		10,523		10,633		10,596
Total residential — prime loans		12,754		12,858		12,779
Consumer other — Key Community Bank		1,547		1,560		1,436
Credit cards		727		754		698
Consumer other:
Marine		730		779		965
Other		44		49		63
Total consumer other		774		828		1,028
Total consumer loans		15,802		16,000		15,941
Total loans (c) (d)	$	57,953	$	57,381	$	55,445

(a) Loan balances include $87 million, $88 million, and $95 million of commercial credit card balances at March 31, 2015, December 31, 2014, and March 31, 2014, respectively.

(b) Commercial lease financing includes receivables held as collateral for a secured borrowing of $230 million, $302 million, and $124 million at March 31, 2015, December 31, 2014, and March 31, 2014, respectively. Principal reductions are based on the cash payments received from these related receivables. Additional information pertaining to this secured borrowing is included in Note 18 (“Long-Term Debt”) beginning on page 202 of our 2014 Form 10-K.

(c) At March 31, 2015, total loans include purchased loans of $130 million, of which $12 million were PCI loans. At December 31, 2014, total loans include purchased loans of $138 million, of which $13 million were PCI loans. At March 31, 2014, total loans include purchased loans of $159 million, of which $16 million were PCI loans.

(d) Total loans exclude loans of $2.2 billion at March 31, 2015, $2.3 billion at December 31, 2014, and $4.4 billion at March 31, 2014, related to the discontinued operations of the education lending business.

Our loans held for sale are summarized as follows:

in millions	March 31, 2015		December 31, 2014		March 31, 2014
Commercial, financial and agricultural	$	183	$	63	$	44
Real estate — commercial mortgage		1,408		638		333
Commercial lease financing		14		15		8
Real estate — residential mortgage		44		18		16
Total loans held for sale	$	1,649	$	734	$	401

Our quarterly summary of changes in loans held for sale follows:

in millions	March 31, 2015			December 31, 2014			March 31, 2014
Balance at beginning of the period	$	734		$	784		$	611
New originations		2,130			2,465			645
Transfers from (to) held to maturity, net		10			2			3
Loan sales		(1,204	)		(2,516	)		(596	)
Loan draws (payments), net		(21	)		(1	)		(262	)
Balance at end of period	$	1,649		$	734		$	401

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Asset Quality

3 Months Ended

Mar. 31, 2015

Receivables [Abstract]

Asset Quality

4. Asset Quality

We assess the credit quality of the loan portfolio by monitoring net credit losses, levels of nonperforming assets and delinquencies, and credit quality ratings as defined by management.

Our nonperforming assets and past due loans were as follows:

in millions	March 31, 2015		December 31, 2014		March 31, 2014
Total nonperforming loans (a), (b)	$	437	$	418	$	449
Nonperforming loans held for sale		—		—		1
OREO (c)		20		18		12
Other nonperforming assets		—		—		7
Total nonperforming assets	$	457	$	436	$	469
Nonperforming assets from discontinued operations—education lending (d)	$	8	$	11	$	20
Restructured loans included in nonperforming loans	$	141	$	157	$	178
Restructured loans with an allocated specific allowance (e)		70		82		51
Specifically allocated allowance for restructured loans (f)		39		34		32
Accruing loans past due 90 days or more	$	111	$	96	$	89
Accruing loans past due 30 through 89 days		216		235		267

(a) Loan balances exclude $12 million, $13 million, and $16 million of PCI loans at March 31, 2015, December 31, 2014, and March 31, 2014, respectively.

(b) Includes carrying value of consumer residential mortgage loans in the process of foreclosure of approximately $119 million at March 31, 2015.

(c) Includes carrying value of foreclosed residential real estate of approximately $17 million at March 31, 2015.

(d) Restructured loans of approximately $18 million, $17 million, and $15 million are included in discontinued operations at March 31, 2015, December 31, 2014, and March 31, 2014, respectively. See Note 11 (“Acquisitions and Discontinued Operations”) for further discussion.

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

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

We evaluate purchased loans for impairment in accordance with the applicable accounting guidance. Purchased loans that have evidence of deterioration in credit quality since origination and for which it is probable, at acquisition, that all contractually required payments will not be collected are deemed PCI and initially recorded at fair value without recording an allowance for loan losses. At the date of acquisition, the estimated gross contractual amount receivable of all PCI loans totaled $41 million. The estimated cash flows not expected to be collected (the nonaccretable amount) were $11 million, and the accretable amount was approximately $5 million. The difference between the fair value and the cash flows expected to be collected from the purchased loans is accreted to interest income over the remaining term of the loans.

At March 31, 2015, the outstanding unpaid principal balance and carrying value of all PCI loans was $19 million and $12 million, respectively. Changes in the accretable yield during the first quarter of 2015 included accretion and net reclassifications of less than $1 million, resulting in an ending balance of $5 million at March 31, 2015.

At March 31, 2015, the approximate carrying amount of our commercial nonperforming loans outstanding represented 79% of their original contractual amount, total nonperforming loans outstanding represented 81% of their original contractual amount owed, and nonperforming assets in total were carried at 81% of their original contractual amount.

At March 31, 2015, our 20 largest nonperforming loans totaled $123 million, representing 28% of total loans on nonperforming status. At March 31, 2014, our 20 largest nonperforming loans totaled $75 million, representing 17% of total loans on nonperforming status.

Nonperforming loans and loans held for sale reduced expected interest income by $4 million for the three months ended March 31, 2015, and $16 million for the year ended December 31, 2014.

The following tables set forth a further breakdown of individually impaired loans as of March 31, 2015, December 31, 2014, and March 31, 2014:

March 31, 2015 in millions	Recorded Investment (a)		Unpaid Principal Balance (b)		Specific Allowance		Average Recorded Investment
With no related allowance recorded:
Commercial, financial and agricultural	$	20	$	51		—	$	13
Commercial real estate:
Commercial mortgage		14		19		—		14
Construction		7		7		—		6
Total commercial real estate loans		21		26		—		20
Total commercial loans		41		77		—		33
Real estate — residential mortgage		23		23		—		23
Home equity:
Key Community Bank		62		62		—		62
Other		1		2		—		1
Total home equity loans		63		64		—		63
Consumer other:
Marine		1		1		—		2
Total consumer other		1		1		—		2
Total consumer loans		87		88		—		88
Total loans with no related allowance recorded		128		165		—		121
With an allowance recorded:
Commercial, financial and agricultural		62		62	$	20		50
Commercial real estate:
Commercial mortgage		6		7		2		6
Construction		—		—		—		1
Total commercial real estate loans		6		7		2		7
Total commercial loans		68		69		22		57
Real estate — residential mortgage		32		32		5		32
Home equity:
Key Community Bank		49		49		16		48
Other		11		11		2		11
Total home equity loans		60		60		18		59
Consumer other — Key Community Bank		3		3		—		3
Credit cards		4		4		—		4
Consumer other:
Marine		41		41		4		42
Other		2		2		—		2
Total consumer other		43		43		4		44
Total consumer loans		142		142		27		142
Total loans with an allowance recorded		210		211		49		199
Total	$	338	$	376	$	49	$	320

(a) The Recorded Investment represents the face amount of the loan increased or decreased by applicable accrued interest, net deferred loan fees and costs, and 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, 2014 in millions	Recorded Investment (a)		Unpaid Principal Balance (b)		Specific Allowance		Average Recorded Investment
With no related allowance recorded:
Commercial, financial and agricultural	$	6	$	17		—	$	8
Commercial real estate:
Commercial mortgage		15		20		—		19
Construction		5		6		—		7
Total commercial real estate loans		20		26		—		26
Total commercial loans		26		43		—		34
Real estate — residential mortgage		24		24		—		30
Home equity:
Key Community Bank		62		63		—		63
Other		1		1		—		2
Total home equity loans		63		64		—		65
Consumer other:
Marine		2		2		—		2
Total consumer other		2		2		—		2
Total consumer loans		89		90		—		97
Total loans with no related allowance recorded		115		133		—		131
With an allowance recorded:
Commercial, financial and agricultural		37		37	$	9		28
Commercial real estate:
Commercial mortgage		6		6		2		6
Construction		3		3		1		2
Total commercial real estate loans		9		9		3		8
Total commercial loans		46		46		12		36
Real estate — residential mortgage		31		31		5		25
Home equity:
Key Community Bank		46		46		16		43
Other		11		11		2		11
Total home equity loans		57		57		18		54
Consumer other — Key Community Bank		4		4		—		3
Credit cards		4		4		—		4
Consumer other:
Marine		43		43		5		45
Other		2		2		—		2
Total consumer other		45		45		5		47
Total consumer loans		141		141		28		133
Total loans with an allowance recorded		187		187		40		169
Total	$	302	$	320	$	40	$	300

(a) The Recorded Investment represents the face amount of the loan increased or decreased by applicable accrued interest, net deferred loan fees and costs, and 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, 2014 in millions	Recorded Investment (a)		Unpaid Principal Balance (b)		Specific Allowance		Average Recorded Investment
With no related allowance recorded:
Commercial, financial and agricultural	$	33	$	60		—	$	33
Commercial real estate:
Commercial mortgage		23		28		—		22
Construction		7		17		—		27
Total commercial real estate loans		30		45		—		49
Total commercial loans		63		105		—		82
Real estate — residential mortgage		26		26		—		26
Home equity:
Key Community Bank		70		70		—		69
Other		2		2		—		2
Total home equity loans		72		72		—		71
Consumer other:
Marine		2		2		—		3
Total consumer other		2		2		—		3
Total consumer loans		100		100		—		100
Total loans with no related allowance recorded		163		205		—		182
With an allowance recorded:
Commercial, financial and agricultural		7		10	$	2		12
Commercial real estate:
Commercial mortgage		2		2		1		4
Construction		—		—		—		1
Total commercial real estate loans		2		2		1		5
Total commercial loans		9		12		3		17
Real estate — residential mortgage		28		28		5		28
Home equity:
Key Community Bank		36		36		16		36
Other		11		11		2		11
Total home equity loans		47		47		18		47
Consumer other — Key Community Bank		3		3		—		3
Credit cards		4		4		1		4
Consumer other:
Marine		49		49		7		49
Other		1		1		—		1
Total consumer other		50		50		7		50
Total consumer loans		132		132		31		132
Total loans with an allowance recorded		141		144		34		149
Total	$	304	$	349	$	34	$	331

(a) The Recorded Investment represents the face amount of the loan increased or decreased by applicable accrued interest, net deferred loan fees and costs, and 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.

For the three months ended March 31, 2015, and March 31, 2014, interest income recognized on the outstanding balances of accruing impaired loans totaled $1 million and $2 million, respectively.

At March 31, 2015, aggregate restructured loans (accrual and nonaccrual loans) totaled $268 million, compared to $270 million at December 31, 2014, and $294 million at March 31, 2014. We added $11 million in restructured loans during the first three months of 2015, which were offset by $13 million in payments and charge-offs.

A further breakdown of TDRs included in nonperforming loans by loan category as of March 31, 2015, follows:

March 31, 2015 dollars in millions	Number of loans		Pre-modification Outstanding Recorded Investment		Post-modification Outstanding Recorded Investment
LOAN TYPE
Nonperforming:
Commercial, financial and agricultural		11	$	25	$	22
Commercial real estate:
Real estate — commercial mortgage		12		37		13
Total commercial real estate loans		12		37		13
Total commercial loans		23		62		35
Real estate — residential mortgage		383		22		22
Home equity:
Key Community Bank		1,071		76		70
Other		128		4		3
Total home equity loans		1,199		80		73
Consumer other — Key Community Bank		28		1		1
Credit cards		275		2		1
Consumer other:
Marine		117		8		8
Other		26		1		1
Total consumer other		143		9		9
Total consumer loans		2,028		114		106
Total nonperforming TDRs		2,051		176		141
Prior-year accruing (a)
Commercial, financial and agricultural		17		6		3
Commercial real estate:
Real estate — commercial mortgage		1		2		1
Total commercial real estate loans		1		2		1
Total commercial loans		18		8		4
Real estate — residential mortgage		454		34		34
Home equity:
Key Community Bank		803		47		41
Other		339		10		8
Total home equity loans		1,142		57		49
Consumer other — Key Community Bank		51		2		2
Credit cards		519		4		2
Consumer other:
Marine		429		60		35
Other		76		2		1
Total consumer other		505		62		36
Total consumer loans		2,671		159		123
Total prior-year accruing TDRs		2,689		167		127
Total TDRs		4,740	$	343	$	268

(a) All TDRs that were restructured prior to January 1, 2015, and are fully accruing.

A further breakdown of TDRs included in nonperforming loans by loan category as of December 31, 2014, follows:

December 31, 2014 dollars in millions	Number of loans		Pre-modification Outstanding Recorded Investment		Post-modification Outstanding Recorded Investment
LOAN TYPE
Nonperforming:
Commercial, financial and agricultural		14	$	25	$	23
Commercial real estate:
Real estate — commercial mortgage		10		38		13
Real estate — construction		1		5		—
Total commercial real estate loans		11		43		13
Total commercial loans		25		68		36
Real estate — residential mortgage		453		27		27
Home equity:
Key Community Bank		1,184		79		72
Other		158		4		4
Total home equity loans		1,342		83		76
Consumer other — Key Community Bank		37		2		1
Credit cards		290		2		2
Consumer other:
Marine		206		17		14
Other		38		1		1
Total consumer other		244		18		15
Total consumer loans		2,366		132		121
Total nonperforming TDRs		2,391		200		157
Prior-year accruing (a)
Commercial, financial and agricultural		20		6		3
Commercial real estate:
Real estate — commercial mortgage		1		2		1
Total commercial real estate loans		1		2		1
Total commercial loans		21		8		4
Real estate — residential mortgage		381		29		29
Home equity:
Key Community Bank		674		41		36
Other		310		9		8
Total home equity loans		984		50		44
Consumer other — Key Community Bank		45		2		2
Credit cards		514		4		2
Consumer other:
Marine		373		54		31
Other		67		2		1
Total consumer other		440		56		32
Total consumer loans		2,364		141		109
Total prior-year accruing TDRs		2,385		149		113
Total TDRs		4,776	$	349	$	270

(a) All TDRs that were restructured prior to January 1, 2014, and are fully accruing.

A further breakdown of TDRs included in nonperforming loans by loan category as of March 31, 2014, follows:

			Pre-modification		Post-modification
			Outstanding		Outstanding
March 31, 2014	Number		Recorded		Recorded
dollars in millions	of loans		Investment		Investment
LOAN TYPE
Nonperforming:
Commercial, financial and agricultural		28	$	58	$	33
Commercial real estate:
Real estate — commercial mortgage		11		40		14
Real estate — construction		5		16		2
Total commercial real estate loans		16		56		16
Total commercial loans		44		114		49
Real estate — residential mortgage		687		42		42
Home equity:
Key Community Bank		1,190		73		69
Other		132		4		4
Total home equity loans		1,322		77		73
Consumer other — Key Community Bank		33		1		1
Credit cards		10		—		—
Consumer other:
Marine		210		14		12
Other		41		1		1
Total consumer other		251		15		13
Total consumer loans		2,303		135		129
Total nonperforming TDRs		2,347		249		178
Prior-year accruing (a)
Commercial, financial and agricultural		42		7		4
Commercial real estate:
Real estate — commercial mortgage		4		18		8
Total commercial real estate loans		4		18		8
Total commercial loans		46		25		12
Real estate — residential mortgage		111		12		12
Home equity:
Key Community Bank		708		40		37
Other		312		9		8
Total home equity loans		1,020		49		45
Consumer other — Key Community Bank		51		2		2
Credit cards		785		5		5
Consumer other:
Marine		430		62		39
Other		68		2		1
Total consumer other		498		64		40
Total consumer loans		2,465		132		104
Total prior-year accruing TDRs		2,511		157		116
Total TDRs		4,858	$	406	$	294

(a) All TDRs that were restructured prior to January 1, 2014, and are fully accruing.

We classify loan modifications as TDRs when a borrower is experiencing financial difficulties and we have granted a concession without commensurate financial, structural, or legal consideration. All commercial and consumer loan TDRs, regardless of size, are individually evaluated for impairment to determine the probable loss content and are assigned a specific loan allowance if deemed appropriate. This designation has the effect of moving the loan from the general reserve methodology (i.e., collectively evaluated) to the specific reserve methodology (i.e., individually evaluated) and may impact the ALLL through a charge-off or increased loan loss provision. These components affect the ultimate allowance level. Additional information regarding TDRs for discontinued operations is provided in Note 11 (“Acquisitions and Discontinued Operations”).

Commercial loan TDRs are considered defaulted when principal and interest payments are 90 days past due. Consumer loan TDRs are considered defaulted when principal and interest payments are more than 60 days past due. During the first three months of 2015, there were no significant commercial loan TDRs, and 89 consumer loan TDRs with a combined recorded investment of $4 million that experienced payment defaults from modifications resulting in TDR status during 2014. During the first three months of 2014, two commercial loan TDRs with a combined recorded investment of $11 million, and 157 consumer loan TDRs with a combined recorded investment of $4 million experienced payment defaults from modifications resulting in TDR status during 2013. As TDRs are individually evaluated for impairment under the specific reserve methodology, subsequent defaults do not generally have a significant additional impact on the ALLL.

Our loan modifications are handled on a case-by-case basis and are negotiated to achieve mutually agreeable terms that maximize loan collectability and meet the borrower’s financial needs. Our concession types are primarily interest rate reductions, forgiveness of principal, and other modifications. The commercial TDR other concession category includes modification of loan terms, covenants, or conditions. The consumer TDR other concession category primarily includes those borrowers that are discharged through Chapter 7 bankruptcy and have not been formally re-affirmed.

The following table shows the post-modification outstanding recorded investment by concession type for our commercial and consumer accruing and nonaccruing TDRs and other selected financial data.

	March 31,		December 31,		March 31,
in millions	2015		2014		2014
Commercial loans:
Interest rate reduction	$	12	$	13	$	49
Forgiveness of principal		2		2		5
Other		25		25		7
Total	$	39	$	40	$	61
Consumer loans:
Interest rate reduction	$	140	$	140	$	142
Forgiveness of principal		4		4		5
Other		85		86		86
Total	$	229	$	230	$	233
Total commercial and consumer TDRs (a)	$	268	$	270	$	294
Total loans		57,953		57,381		55,445

(a) Commitments outstanding to lend additional funds to borrowers whose loan terms have been modified in TDRs are $5 million, $5 million, and $2 million at March 31, 2015, December 31, 2014, and March 31, 2014, respectively.

Our policies for determining past due loans, placing loans on nonaccrual, applying payments on nonaccrual loans, and resuming accrual of interest for our commercial and consumer loan portfolios are disclosed in Note 1 (“Summary of Significant Accounting Policies”) under the heading “Nonperforming Loans” beginning on page 116 of our 2014 Form 10-K.

At March 31, 2015, approximately $57.2 billion, or 98.7%, of our total loans were current. At March 31, 2015, total past due loans and nonperforming loans of $764 million represented approximately 1.3% of total loans.

The following aging analysis of past due and current loans as of March 31, 2015, December 31, 2014, and March 31, 2014, provides further information regarding Key’s credit exposure.

							90 and				Total Past
			30-59		60-89		Greater				Due and		Purchased
March 31, 2015			Days Past		Days Past		Days Past		Nonperforming		Nonperforming		Credit		Total
in millions	Current		Due		Due		Due		Loans		Loans		Impaired		Loans
LOAN TYPE
Commercial, financial and agricultural	$	28,603	$	36	$	11	$	35	$	98	$	180		—	$	28,783
Commercial real estate:
Commercial mortgage		8,080		5		18		29		30		82		—		8,162
Construction		1,114		10		4		2		12		28		—		1,142
Total commercial real estate loans		9,194		15		22		31		42		110		—		9,304
Commercial lease financing		4,017		9		6		12		20		47		—		4,064
Total commercial loans	$	41,814	$	60	$	39	$	78	$	160	$	337		—	$	42,151
Real estate — residential mortgage	$	2,129	$	12	$	5	$	2	$	72	$	91	$	11	$	2,231
Home equity:
Key Community Bank		10,012		39		23		13		182		257		1		10,270
Other		238		4		1		1		9		15		—		253
Total home equity loans		10,250		43		24		14		191		272		1		10,523
Consumer other — Key Community Bank		1,527		8		4		6		2		20		—		1,547
Credit cards		708		5		3		9		2		19		—		727
Consumer other:
Marine		707		8		4		2		9		23		—		730
Other		42		1		—		—		1		2		—		44
Total consumer other		749		9		4		2		10		25		—		774
Total consumer loans	$	15,363	$	77	$	40	$	33	$	277	$	427	$	12	$	15,802
Total loans	$	57,177	$	137	$	79	$	111	$	437	$	764	$	12	$	57,953

							90 and				Total Past
			30-59		60-89		Greater				Due and		Purchased
December 31, 2014			Days Past		Days Past		Days Past		Nonperforming		Nonperforming		Credit		Total
in millions	Current		Due		Due		Due		Loans		Loans		Impaired		Loans
LOAN TYPE
Commercial, financial and agricultural	$	27,858	$	19	$	14	$	32	$	59	$	124		—	$	27,982
Commercial real estate:
Commercial mortgage		7,981		6		10		16		34		66		—		8,047
Construction		1,084		2		—		1		13		16		—		1,100
Total commercial real estate loans		9,065		8		10		17		47		82		—		9,147
Commercial lease financing		4,172		30		21		11		18		80		—		4,252
Total commercial loans	$	41,095	$	57	$	45	$	60	$	124	$	286		—	$	41,381
Real estate — residential mortgage	$	2,111	$	12	$	7	$	4	$	79	$	102	$	12	$	2,225
Home equity:
Key Community Bank		10,098		46		22		14		185		267		1		10,366
Other		249		5		2		1		10		18		—		267
Total home equity loans		10,347		51		24		15		195		285		1		10,633
Consumer other — Key Community Bank		1,541		9		3		5		2		19		—		1,560
Credit cards		733		6		4		9		2		21		—		754
Consumer other:
Marine		746		11		5		2		15		33		—		779
Other		46		1		—		1		1		3		—		49
Total consumer other		792		12		5		3		16		36		—		828
Total consumer loans	$	15,524	$	90	$	43	$	36	$	294	$	463	$	13	$	16,000
Total loans	$	56,619	$	147	$	88	$	96	$	418	$	749	$	13	$	57,381

			30-59		60-89		90 and Greater				Total Past Due and		Purchased
March 31, 2014			Days Past		Days Past		Days Past		Nonperforming		Nonperforming		Credit		Total
in millions	Current		Due		Due		Due		Loans		Loans		Impaired		Loans
LOAN TYPE
Commercial, financial and agricultural	$	26,071	$	67	$	8	$	18	$	60	$	153		—	$	26,224
Commercial real estate:
Commercial mortgage		7,806		9		7		17		37		70	$	1		7,877
Construction		987		3		5		1		11		20		—		1,007
Total commercial real estate loans		8,793		12		12		18		48		90		1		8,884
Commercial lease financing		4,338		15		12		13		18		58		—		4,396
Total commercial loans	$	39,202	$	94	$	32	$	49	$	126	$	301	$	1	$	39,504
Real estate — residential mortgage	$	2,043	$	13	$	6	$	3	$	105	$	127	$	13	$	2,183
Home equity:
Key Community Bank		10,010		45		25		11		188		269		2		10,281
Other		296		5		2		1		11		19		—		315
Total home equity loans		10,306		50		27		12		199		288		2		10,596
Consumer other — Key Community Bank		1,415		8		5		6		2		21		—		1,436
Credit cards		671		7		4		15		1		27		—		698
Consumer other:
Marine		928		12		6		4		15		37		—		965
Other		59		2		1		—		1		4		—		63
Total consumer other		987		14		7		4		16		41		—		1,028
Total consumer loans	$	15,422	$	92	$	49	$	40	$	323	$	504	$	15	$	15,941
Total loans	$	54,624	$	186	$	81	$	89	$	449	$	805	$	16	$	55,445

The prevalent risk characteristic for both commercial and consumer loans is the risk of loss arising from an obligor’s inability or failure to meet contractual payment or performance terms. Evaluation of this risk is stratified and monitored by the loan risk rating grades assigned for the commercial loan portfolios and the regulatory risk ratings assigned for the consumer loan portfolios.

Most extensions of credit are subject to loan grading or scoring. Loan grades are assigned at the time of origination, verified by credit risk management, and periodically re-evaluated thereafter. This risk rating methodology blends our judgment with quantitative modeling. Commercial loans generally are assigned two internal risk ratings. The first rating reflects the probability that the borrower will default on an obligation; the second rating reflects expected recovery rates on the credit facility. Default probability is determined based on, among other factors, the financial strength of the borrower, an assessment of the borrower’s management, the borrower’s competitive position within its industry sector, and our view of industry risk in the context of the general economic outlook. Types of exposure, transaction structure, and collateral, including credit risk mitigants, affect the expected recovery assessment.

Credit quality indicators for loans are updated on an ongoing basis. Bond rating classifications are indicative of the credit quality of our commercial loan portfolios and are determined by converting our internally assigned risk rating grades to bond rating categories. Payment activity and the regulatory classifications of pass and substandard are indicators of the credit quality of our consumer loan portfolios.

Credit quality indicators for our commercial and consumer loan portfolios, excluding $12 million and $16 million of PCI loans at March 31, 2015, and March 31, 2014, respectively, based on bond rating, regulatory classification, and payment activity as of March 31, 2015, and March 31, 2014, are as follows:

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)	2015		2014		2015		2014		2015		2014		2015		2014		2015		2014
AAA — AA	$	286	$	500	$	6	$	1	$	1	$	1	$	535	$	805	$	828	$	1,307
A		1,267		1,010		2		57		—		1		516		448		1,785		1,516
BBB — BB		25,684		23,361		7,604		7,267		992		826		2,842		2,964		37,122		34,418
B		648		551		325		337		127		84		104		101		1,204		1,073
CCC — C		898		802		225		214		22		95		67		78		1,212		1,189
Total	$	28,783	$	26,224	$	8,162	$	7,876	$	1,142	$	1,007	$	4,064	$	4,396	$	42,151	$	39,503

(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.

Consumer Credit Exposure

Credit Risk Profile by Regulatory Classifications ^{(a), (b)}

March 31,
in millions
	Residential — Prime
GRADE	2015		2014
Pass	$	12,463	$	12,445
Substandard		279		319
Total	$	12,742	$	12,764

Credit Risk Profile Based on Payment Activity ^(a)

March 31,	Consumer — Key Community Bank				Credit cards				Consumer — Marine				Consumer — Other				Total
in millions	2015		2014		2015		2014		2015		2014		2015		2014		2015		2014
Performing	$	1,545	$	1,434	$	725	$	697	$	721	$	950	$	43	$	62	$	3,034	$	3,143
Nonperforming		2		2		2		1		9		15		1		1		14		19
Total	$	1,547	$	1,436	$	727	$	698	$	730	$	965	$	44	$	63	$	3,048	$	3,162

(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.

We determine the appropriate level of the ALLL on at least a quarterly basis. The methodology is described in Note 1 (“Summary of Significant Accounting Policies”) under the heading “Allowance for Loan and Lease Losses” beginning on page 117 of our 2014 Form 10-K. We apply expected loss rates to existing loans with similar risk characteristics as noted in the credit quality indicator table above and exercise judgment to assess the impact of factors such as changes in economic conditions, changes in credit policies or underwriting standards, and changes in the level of credit risk associated with specific industries and markets.

For all commercial and consumer loan TDRs, regardless of size, as well as impaired commercial loans with an outstanding balance of $2.5 million or greater, we conduct further analysis to determine the probable loss content and assign a specific allowance to the loan if deemed appropriate. We estimate the extent of the individual impairment for commercial loans and TDRs by comparing the recorded investment of the loan with the estimated present value of its future cash flows, the fair value of its underlying collateral, or the loan’s observable market price. Secured consumer loan TDRs that are discharged through Chapter 7 bankruptcy and not formally re-affirmed are adjusted to reflect the fair value of the underlying collateral, less costs to sell. Non-Chapter 7 consumer loan TDRs are combined in homogenous pools and assigned a specific allocation based on the estimated present value of future cash flows using the loan’s effective interest rate. A specific allowance also may be assigned — even when sources of repayment appear sufficient — if we remain uncertain about whether the loan will be repaid in full. On at least a quarterly basis, we evaluate the appropriateness of our loss estimation methods to reduce differences between estimated incurred losses and actual losses. The ALLL at March 31, 2015, represents our best estimate of the probable credit losses inherent in the loan portfolio at that date.

Although quantitative modeling factors such as default probability and expected recovery rates are constantly changing as the financial strength of the borrower and overall economic conditions change, we have not changed the accounting policies or methodology that we use to estimate the ALLL.

Commercial loans generally are charged off in full or charged down to the fair value of the underlying collateral when the borrower’s payment is 180 days past due. Most consumer loans are charged off when payments are 120 days past due. Home equity and residential mortgage loans generally are charged down to the fair value of the underlying collateral when payment is 180 days past due. Credit card loans, and similar unsecured products, are charged off when payments are 180 days past due.

At March 31, 2015, the ALLL was $794 million, or 1.37% of loans, compared to $834 million, or 1.50% of loans, at March 31, 2014. At March 31, 2015, the ALLL was 181.7% of nonperforming loans, compared to 185.7% at March 31, 2014.

A summary of the changes in the ALLL for the periods indicated is presented in the table below:

	Three months ended March 31,
in millions	2015			2014
Balance at beginning of period — continuing operations	$	794		$	848
Charge-offs		(47	)		(57	)
Recoveries		19			37
Net loans and leases charged off		(28	)		(20	)
Provision for loan and lease losses from continuing operations		29			6
Foreign currency translation adjustment		(1	)		—
Balance at end of period — continuing operations	$	794		$	834

The changes in the ALLL by loan category for the periods indicated are as follows:

	December 31,										March 31,
in millions	2014		Provision			Charge-offs			Recoveries		2015
Commercial, financial and agricultural	$	391	$	21		$	(12	)	$	5	$	405
Real estate — commercial mortgage		148		—			(2	)		2		148
Real estate — construction		28		1			(1	)		—		28
Commercial lease financing		56		(3	)		(2	)		4		55
Total commercial loans		623		19			(17	)		11		636
Real estate — residential mortgage		23		—			(2	)		—		21
Home equity:
Key Community Bank		66		(3	)		(7	)		2		58
Other		5		—			(1	)		1		5
Total home equity loans		71		(3	)		(8	)		3		63
Consumer other — Key Community Bank		22		3			(6	)		2		21
Credit cards		33		7			(8	)		—		32
Consumer other:
Marine		21		1			(5	)		3		20
Other		1		1			(1	)		—		1
Total consumer other:		22		2			(6	)		3		21
Total consumer loans		171		9			(30	)		8		158
Total ALLL — continuing operations		794		28	(a)		(47	)		19		794
Discontinued operations		29		2			(10	)		4		25
Total ALLL — including discontinued operations	$	823	$	30		$	(57	)	$	23	$	819

(a) Includes $1 million of foreign currency translation adjustment. Excludes provision for losses on lending-related commitments of $6 million.

	December 31,										March 31,
in millions	2013		Provision			Charge-offs			Recoveries		2014
Commercial, financial and agricultural	$	362	$	13		$	(12	)	$	10	$	373
Real estate — commercial mortgage		165		(3	)		(2	)		1		161
Real estate — construction		32		(7	)		(2	)		14		37
Commercial lease financing		62		1			(3	)		2		62
Total commercial loans		621		4			(19	)		27		633
Real estate — residential mortgage		37		(8	)		(3	)		1		27
Home equity:
Key Community Bank		84		3			(10	)		3		80
Other		11		2			(3	)		1		11
Total home equity loans		95		5			(13	)		4		91
Consumer other — Key Community Bank		29		2			(8	)		2		25
Credit cards		34		4			(6	)		—		32
Consumer other:
Marine		29		(2	)		(7	)		3		23
Other		3		1			(1	)		—		3
Total consumer other:		32		(1	)		(8	)		3		26
Total consumer loans		227		2			(38	)		10		201
Total ALLL — continuing operations		848		6	(a)		(57	)		37		834
Discontinued operations		39		4			(13	)		4		34
Total ALLL — including discontinued operations	$	887	$	10		$	(70	)	$	41	$	868

(a) Excludes credit for losses on lending-related commitments of $2 million.

Our ALLL from continuing operations decreased by $40 million, or 4.8%, from the first quarter of 2014 primarily because of the improvement in the credit quality of our loan portfolios. The quality of new loan originations as well as decreasing levels of classified and nonperforming loans also resulted in a reduction in our general allowance. Our general allowance applies expected loss rates to our existing loans with similar risk characteristics as well as any adjustments to reflect our current assessment of qualitative factors such as changes in economic conditions, underwriting standards, and concentrations of credit. Our delinquency trends declined during 2014 and into 2015 due to continued improved credit quality, solid loan growth, relatively stable economic conditions, and continued run-off in our exit loan portfolio, reflecting our effort to maintain a moderate enterprise risk tolerance.

For continuing operations, the loans outstanding individually evaluated for impairment totaled $338 million, with a corresponding allowance of $49 million at March 31, 2015. Loans outstanding collectively evaluated for impairment totaled $57.6 billion, with a corresponding allowance of $744 million at March 31, 2015. At March 31, 2015, PCI loans evaluated for impairment totaled $12 million, with a corresponding allowance of $1 million. There was no provision for loan and lease losses on these PCI loans during the quarter ended March 31, 2015. At March 31, 2014, the loans outstanding individually evaluated for impairment totaled $304 million, with a corresponding allowance of $34 million. Loans outstanding collectively evaluated for impairment totaled $55.1 billion, with a corresponding allowance of $799 million at March 31, 2014. At March 31, 2014, PCI loans evaluated for impairment totaled $16 million, with a corresponding allowance of $1 million. There was no provision for loan and lease losses on these PCI loans during the quarter ended March 31, 2014.

A breakdown of the individual and collective ALLL and the corresponding loan balances as of March 31, 2015, follows:

	Allowance						Outstanding
March 31, 2015 in millions	Individually Evaluated for Impairment		Collectively Evaluated for Impairment		Purchased Credit Impaired		Loans			Individually Evaluated for Impairment		Collectively Evaluated for Impairment			Purchased Credit Impaired
Commercial, financial and agricultural	$	20	$	385		—	$	28,783		$	82	$	28,701			—
Commercial real estate:
Commercial mortgage		2		146		—		8,162			20		8,142			—
Construction		—		28		—		1,142			7		1,135			—
Total commercial real estate loans		2		174		—		9,304			27		9,277			—
Commercial lease financing		—		55		—		4,064			—		4,064			—
Total commercial loans		22		614		—		42,151			109		42,042			—
Real estate — residential mortgage		5		15	$	1		2,231			55		2,165		$	11
Home equity:
Key Community Bank		16		42		—		10,270			111		10,158			1
Other		2		3		—		253			12		241			—
Total home equity loans		18		45		—		10,523			123		10,399			1
Consumer other — Key Community Bank		—		21		—		1,547			3		1,544			—
Credit cards		—		32		—		727			4		723			—
Consumer other:
Marine		4		16		—		730			42		688			—
Other		—		1		—		44			2		42			—
Total consumer other		4		17		—		774			44		730			—
Total consumer loans		27		130		1		15,802			229		15,561			12
Total ALLL — continuing operations		49		744		1		57,953			338		57,603			12
Discontinued operations		1		24		—		2,219	(a)		18		2,201	(a)		—
Total ALLL — including discontinued operations	$	50	$	768	$	1	$	60,172		$	356	$	59,804		$	12

(a) Amount includes $187 million of portfolio loans carried at fair value that are excluded from ALLL consideration.

A breakdown of the individual and collective ALLL and the corresponding loan balances as of December 31, 2014, follows:

	Allowance						Outstanding
December 31, 2014 in millions	Individually Evaluated for Impairment		Collectively Evaluated for Impairment		Purchased Credit Impaired		Loans			Individually Evaluated for Impairment		Collectively Evaluated for Impairment			Purchased Credit Impaired
Commercial, financial and agricultural	$	9	$	382		—	$	27,982		$	43	$	27,939			—
Commercial real estate:
Commercial mortgage		2		146		—		8,047			21		8,025		$	1
Construction		1		27		—		1,100			8		1,092			—
Total commercial real estate loans		3		173		—		9,147			29		9,117			1
Commercial lease financing		—		56		—		4,252			—		4,252			—
Total commercial loans		12		611		—		41,381			72		41,308			1
Real estate — residential mortgage		5		17	$	1		2,225			55		2,159			11
Home equity:
Key Community Bank		16		50		—		10,366			108		10,257			1
Other		2		3		—		267			12		255			—
Total home equity loans		18		53		—		10,633			120		10,512			1
Consumer other — Key Community Bank		—		22		—		1,560			4		1,556			—
Credit cards		—		33		—		754			4		750			—
Consumer other:
Marine		5		16		—		779			45		734			—
Other		—		1		—		49			2		47			—
Total consumer other		5		17		—		828			47		781			—
Total consumer loans		28		142		1		16,000			230		15,758			12
Total ALLL — continuing operations		40		753		1		57,381			302		57,066			13
Discontinued operations		1		28		—		2,295	(a)		17		2,278	(a)		—
Total ALLL — including discontinued operations	$	41	$	781	$	1	$	59,676		$	319	$	59,344		$	13

(a) Amount includes $191 million of loans carried at fair value that are excluded from ALLL consideration.

A breakdown of the individual and collective ALLL and the corresponding loan balances as of March 31, 2014, follows:

	Allowance						Outstanding
March 31, 2014 in millions	Individually Evaluated for Impairment		Collectively Evaluated for Impairment		Purchased Credit Impaired		Loans			Individually Evaluated for Impairment		Collectively Evaluated for Impairment		Purchased Credit Impaired
Commercial, financial and agricultural	$	2	$	371		—	$	26,224		$	40	$	26,184		—
Commercial real estate:
Commercial mortgage		1		160		—		7,877			25		7,851	$	1
Construction		—		37		—		1,007			6		1,001		—
Total commercial real estate loans		1		197		—		8,884			31		8,852		1
Commercial lease financing		—		62		—		4,396			—		4,396		—
Total commercial loans		3		630		—		39,504			71		39,432		1
Real estate — residential mortgage		4		22	$	1		2,183			54		2,116		13
Home equity:
Key Community Bank		16		64		—		10,281			105		10,174		2
Other		2		9		—		315			13		302		—
Total home equity loans		18		73		—		10,596			118		10,476		2
Consumer other — Key Community Bank		—		25		—		1,436			4		1,432		—
Credit cards		1		31		—		698			4		694		—
Consumer other:
Marine		7		16		—		965			52		913		—
Other		1		2		—		63			1		62		—
Total consumer other		8		18		—		1,028			53		975		—
Total consumer loans		31		169		1		15,941			233		15,693		15
Total ALLL — continuing operations		34		799		1		55,445			304		55,125		16
Discontinued operations		1		33		—		4,382	(a)		15		4,367		—
Total ALLL — including discontinued operations	$	35	$	832	$	1	$	59,827		$	319	$	59,492	$	16

(a) Amount includes $2.0 billion of loans carried at fair value that are excluded from ALLL consideration.

The liability for credit losses inherent in lending-related unfunded commitments, such as letters of credit and unfunded loan commitments, is included in “accrued expense and other liabilities” on the balance sheet. We establish the amount of this reserve by considering both historical trends and current market conditions quarterly, or more often if deemed necessary. Our liability for credit losses on lending-related commitments is $41 million at March 31, 2015. When combined with our ALLL, our total allowance for credit losses represented 1.44% of loans at March 31, 2015, compared to 1.57% at March 31, 2014.

Changes in the liability for credit losses on unfunded lending-related commitments are summarized as follows:

	Three months ended March 31,
in millions	2015		2014
Balance at beginning of period	$	35	$	37
Provision (credit) for losses on lending-related commitments		6		(2	)
Balance at end of period	$	41	$	35

XML

Securities

3 Months Ended

Mar. 31, 2015

Investments, Debt and Equity Securities [Abstract]

Securities

6. Securities

Securities available for sale. These are securities that we intend to hold for an indefinite period of time but that may be sold in response to changes in interest rates, prepayment risk, liquidity needs or other factors. Securities available for sale are reported at fair value. Unrealized gains and losses (net of income taxes) deemed temporary are recorded in equity as a component of AOCI on the balance sheet. Unrealized losses on equity securities deemed to be “other-than-temporary,” and realized gains and losses resulting from sales of securities using the specific identification method, are included in “other income” on the income statement. Unrealized losses on debt securities deemed to be “other-than-temporary” are included in “other income” on the income statement or in AOCI in accordance with the applicable accounting guidance related to the recognition of OTTI of debt securities.

“Other securities” held in the available-for-sale portfolio consist of marketable equity securities that are traded on a public exchange such as the NYSE or NASDAQ and convertible preferred stock of a privately held company.

Held-to-maturity securities. These are debt securities that we have the intent and ability to hold until maturity. Debt securities are carried at cost and adjusted for amortization of premiums and accretion of discounts using the interest method. This method produces a constant rate of return on the adjusted carrying amount.

“Other securities” held in the held-to-maturity portfolio consist of foreign bonds and capital securities.

Unrealized losses on equity securities deemed to be “other-than-temporary,” and realized gains and losses resulting from sales of securities using the specific identification method, are included in “other income” on the income statement. Unrealized losses on debt securities deemed to be “other-than-temporary” are included in “other income” on the income statement or in AOCI in accordance with the applicable accounting guidance related to the recognition of OTTI of debt securities.

The amortized cost, unrealized gains and losses, and approximate fair value of our securities available for sale and held-to-maturity securities are presented in the following tables. Gross unrealized gains and losses represent the difference between the amortized cost and the fair value of securities on the balance sheet as of the dates indicated. Accordingly, the amount of these gains and losses may change in the future as market conditions change.

	March 31, 2015
in millions	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
SECURITIES AVAILABLE FOR SALE
States and political subdivisions	$	21	$	1		—	$	22
Collateralized mortgage obligations		11,116		124	$	77		11,163
Other mortgage-backed securities		1,870		32		—		1,902
Other securities		30		3		—		33
Total securities available for sale	$	13,037	$	160	$	77	$	13,120
HELD-TO-MATURITY SECURITIES
Collateralized mortgage obligations	$	4,749	$	26	$	30	$	4,745
Other mortgage-backed securities		234		2		—		236
Other securities		22		—		—		22
Total held-to-maturity securities	$	5,005	$	28	$	30	$	5,003
	December 31, 2014
in millions	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
SECURITIES AVAILABLE FOR SALE
States and political subdivisions	$	22	$	1		—	$	23
Collateralized mortgage obligations		11,310		96	$	136		11,270
Other mortgage-backed securities		2,004		32		1		2,035
Other securities		29		3		—		32
Total securities available for sale	$	13,365	$	132	$	137	$	13,360
HELD-TO-MATURITY SECURITIES
Collateralized mortgage obligations	$	4,755	$	15	$	57	$	4,713
Other mortgage-backed securities		240		1		—		241
Other securities		20		—		—		20
Total held-to-maturity securities	$	5,015	$	16	$	57	$	4,974
	March 31, 2014
in millions	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
SECURITIES AVAILABLE FOR SALE
States and political subdivisions	$	37		—		—	$	37
Collateralized mortgage obligations		10,541	$	136	$	208		10,469
Other mortgage-backed securities		1,817		25		10		1,832
Other securities		17		4		—		21
Total securities available for sale	$	12,412	$	165	$	218	$	12,359
HELD-TO-MATURITY SECURITIES
Collateralized mortgage obligations	$	4,806	$	9	$	102	$	4,713
Other securities		20		—		—		20
Total held-to-maturity securities	$	4,826	$	9	$	102	$	4,733

The following table summarizes our securities that were in an unrealized loss position as of March 31, 2015, December 31, 2014, and March 31, 2014.

	Duration of Unrealized Loss Position
	Less than 12 Months				12 Months or Longer				Total
in millions	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
March 31, 2015
Securities available for sale:
Collateralized mortgage obligations	$	1,722	$	25	$	2,722	$	52	$	4,444	$	77
Other mortgage-backed securities (a)		39		—		—		—		39		—
Other securities (b)		3		—		2		—		5		—
Held-to-maturity:
Collateralized mortgage obligations		637		8		1,348		22		1,985		30
Other securities (c)		4		—		—		—		4		—
Total temporarily impaired securities	$	2,405	$	33	$	4,072	$	74	$	6,477	$	107
December 31, 2014
Securities available for sale:
Collateralized mortgage obligations	$	3,019	$	52	$	2,932	$	84	$	5,951	$	136
Other mortgage-backed securities		—		—		78		1		78		1
Other securities (b)		4		—		2		—		6		—
Held-to-maturity:
Collateralized mortgage obligations		1,005		11		1,994		46		2,999		57
Total temporarily impaired securities	$	4,028	$	63	$	5,006	$	131	$	9,034	$	194
March 31, 2014
Securities available for sale:
Collateralized mortgage obligations	$	4,401	$	173	$	678	$	35	$	5,079	$	208
Other mortgage-backed securities		1,153		10		—		—		1,153		10
Other securities (b)		—		—		2		—		2		—
Held-to-maturity:
Collateralized mortgage obligations		3,139		92		200		10		3,339		102
Other securities (c)		—		—		—		—		—		—
Total temporarily impaired securities	$	8,693	$	275	$	880	$	45	$	9,573	$	320

(a) Gross unrealized losses totaled less than $1 million for other mortgage-backed securities available sale for the three-month period ended March 31, 2015.

(b) Gross unrealized losses totaled less than $1 million for other securities available sale for the three-month period ended March 31, 2015, the year ended December 31, 2014, and the three-month period ended March 31, 2014.

(c) Gross unrealized losses totaled less than $1 million for other securities held-to-maturity for the three-month periods ended March 31, 2015, and March 31, 2014.

At March 31, 2015, we had $77 million of gross unrealized losses related to 56 fixed-rate CMOs that we invested in as part of our overall A/LM strategy. These securities had a weighted-average maturity of 3.9 years at March 31, 2015. Since these securities have a fixed interest rate, their fair value is sensitive to movements in market interest rates. These unrealized losses are considered temporary since we expect to collect all contractually due amounts from these securities. Accordingly, these investments were reduced to their fair value through OCI, not earnings.

We regularly assess our securities portfolio for OTTI. The assessments are based on the nature of the securities, the underlying collateral, the financial condition of the issuer, the extent and duration of the loss, our intent related to the individual securities, and the likelihood that we will have to sell securities prior to expected recovery.

The debt securities identified to have OTTI are written down to their current fair value. For those debt securities that we intend to sell, or more-likely-than-not will be required to sell, prior to the expected recovery of the amortized cost, the entire impairment (i.e., the difference between amortized cost and the fair value) is recognized in earnings. For those debt securities that we do not intend to sell, or more-likely-than-not will not be required to sell, prior to expected recovery, the credit portion of OTTI is recognized in earnings, while the remaining OTTI is recognized in equity as a component of AOCI on the balance sheet. As shown in the following table, we had less than $1 million of impairment losses recognized in earnings for the three months ended March 31, 2015.

Three months ended March 31, 2015
in millions
Balance at December 31, 2014	$	4
Impairment recognized in earnings		—
Balance at March 31, 2015	$	4

Realized gains and losses related to securities available for sale were as follows:

Three months ended March 31, 2015
in millions
Realized gains	—
Realized losses	—
Net securities gains (losses)	—

At March 31, 2015, securities available for sale and held-to-maturity securities totaling $8 billion were pledged to secure securities sold under repurchase agreements, to secure public and trust deposits, to facilitate access to secured funding, and for other purposes required or permitted by law.

The following table shows securities by remaining maturity. CMOs and other mortgage-backed securities (both of which are included in the securities available-for-sale portfolio) as well as the CMOs in the held-to-maturity portfolio are presented based on their expected average lives. The remaining securities, in both the available-for-sale and held-to-maturity portfolios, are presented based on their remaining contractual maturity. Actual maturities may differ from expected or contractual maturities since borrowers have the right to prepay obligations with or without prepayment penalties.

	Securities				Held-to-Maturity
	Available for Sale				Securities
March 31, 2015	Amortized		Fair		Amortized		Fair
in millions	Cost		Value		Cost		Value
Due in one year or less	$	288	$	292	$	9	$	9
Due after one through five years		12,599		12,676		4,504		4,498
Due after five through ten years		147		149		492		496
Due after ten years		3		3		—		—
Total	$	13,037	$	13,120	$	5,005	$	5,003

XML

Asset Quality - Changes in Allowance for Loan and Lease Losses by Loan Category (Parenthetical) (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Receivables [Abstract]
Foreign currency translation adjustment	$ 1
Provision/Credit for losses on lending-related commitments	$ 6	$ 2

XML

Employee Benefits - Net Pension Cost (Benefit) for Funded and Unfunded Plans (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Defined Benefit Plan Disclosure [Line Items]
Interest cost on PBO	$ 1	$ 1
Expected return on plan assets	(1)	(1)
Net benefit cost	0	0
Pension Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Interest cost on PBO	10	12
Expected return on plan assets	(14)	(17)
Amortization of losses	4	4
Net benefit cost		$ (1)

XML

Derivatives and Hedging Activities - Additional Information (Detail) (USD $)	3 Months Ended
	Mar. 31, 2015 Counterparty	Dec. 31, 2014	Mar. 31, 2014
Credit Derivatives [Line Items]
Derivative assets after effects of bilateral collateral and master netting agreements	$ 93,000,000
Derivative liabilities after effects of bilateral collateral and master netting agreements	25,000,000
Derivative assets not designated as hedging instruments after effects of bilateral collateral and master netting agreements, and a reserve for potential future losses	638,000,000
Derivative liabilities not designated as hedging instruments after effects of bilateral collateral and master netting agreements, and a reserve for potential future losses	850,000,000
Reclassify of net losses on derivative instruments from AOCI	29,000,000
Length of time hedge in cash flow hedge	12 months
Reclassification of net gains related to terminated cash flow hedges from AOCI to income	2,000,000
Maximum length of time over which forecasted transactions are hedged, years	13 years
Other Comprehensive income unrealized gain on derivatives arising during period net of tax	33,000,000
Cash collateral netted against derivative assets	514,000,000	518,000,000	270,000,000
Collateral netted against derivative liabilities	31,000,000	26,000,000	5,000,000
Cash collateral not netted transferred with clearing organization	68,000,000
Cash collateral not netted transferred from clearing organization	7,000,000
Gross exposure on derivatives, after taking into account the effects of bilateral collateral and master netting agreements	946,000,000
Net exposure on derivatives, after taking into account, the effects of bilateral collateral and master netting agreements	243,000,000
Over-collateralization on derivatives to broker-dealers and banks, after the application of master netting agreements and collateral	74,000,000
Additional collateral held in the form of securities	169,000,000
Default reserve associated with uncollateralized contracts	8,000,000	9,000,000
Gross exposure on derivatives after taking into account effects of master netting agreements	550,000,000
Net exposure on derivatives with clients after application of master netting agreements collateral and related reserve	488,000,000
Letter of credit	35,000,000
Number of counter parties guaranteed	1
Key Corp [Member]
Credit Derivatives [Line Items]
Net liability position totaled	9,000,000
Cash and securities collateral posted	9,000,000
Key Corp [Member] | Maximum [Member]
Credit Derivatives [Line Items]
Additional collateral amount		1,000,000	2,000,000
Key Corp [Member] | Maximum [Member] | Unsecured Debt [Member]
Credit Derivatives [Line Items]
Payments to terminate contracts	1,000,000
KeyBank (consolidated) [Member]
Credit Derivatives [Line Items]
Net liability position totaled	292,000,000
Derivative assets included in net liability position	276,000,000
Derivative liabilities included in net liability position	568,000,000
Cash and securities collateral posted	259,000,000
Number of ratings above noninvestment	4
KeyBank (consolidated) [Member] | Maximum [Member] | Unsecured Debt [Member]
Credit Derivatives [Line Items]
Payments to terminate contracts	$ 8,000,000

XML

Asset Quality - Allowance for Loan and Lease Losses and Corresponding Loan Balances (Parenthetical) (Detail) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014	Mar. 31, 2014
Receivables [Abstract]
Loans carried at fair value	$ 0	$ 191	$ 2,000

XML

Acquisitions and Discontinued Operations - Additional Information (Detail) (USD $)	3 Months Ended		12 Months Ended	9 Months Ended	3 Months Ended
	Mar. 31, 2015 SecurityLoan Trust	Mar. 31, 2014 SecurityLoan	Dec. 31, 2014 SecurityLoan	Sep. 30, 2014 Trust	Jun. 30, 2014	Dec. 31, 2009 Trust
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Estimated goodwill	$ 1,057,000,000	$ 979,000,000	$ 1,057,000,000
Trust assets removed	2,246,000,000	4,427,000,000	2,324,000,000
Trust liabilities removed		1,819,000,000	3,000,000
Allowance for loan held as investment	794,000,000	834,000,000	794,000,000
Number of TDRs	4,740	4,858	4,776
Loans purchased	186,000,000
Loans at fair value	187,000,000	143,000,000	191,000,000
Number of outstanding securitizations trusts	3
Cash portion in gain		6,000,000
Pacific Crest Securities [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Business acquisition, date of acquisition	Sep. 03, 2014
Business acquisition intangible asset			13,000,000
Estimated goodwill			78,000,000
Number of outstanding securitization trusts				3
Proceeds from sale of residual interests				57,000,000
After tax loss recognized				25,000,000
Estimated fair value of the assets and deposits acquired				1,000,000
Number of continuing securitization trusts				8
Trust [Member] | Pacific Crest Securities [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Trust assets removed				1,700,000,000
Trust liabilities removed				1,600,000,000
Discontinued Operations [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of outstanding securitization trusts						10
Trust assets removed	2,246,000,000	4,427,000,000	2,324,000,000
Trust liabilities removed		1,819,000,000	3,000,000
Economic interest or risk of loss associated with education loan securitization trusts	0
Fair value of loans and securities in securitization trusts after tax loss					22,000,000
Discontinued Operations [Member] | Trust [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Loans at fair value		1,893,000,000
Education Loans [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Investment recorded	1,604,000,000
Allowance for loan held as investment	$ 18,000,000
Number of TDRs	1

XML

Asset Quality - Changes in Allowance for Loan and Lease Losses by Loan Category (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance	$ 823	$ 887
Provision	30	10
Charge-offs	(57)	(70)
Recoveries	(23)	(41)
Ending balance	819	868
Continuing Operations [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance	794	848
Provision	28	6
Charge-offs	(47)	(57)
Recoveries	19	37
Ending balance	794	834
Continuing Operations [Member] | Commercial, Financial and Agricultural [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance	391	362
Provision	21	13
Charge-offs	(12)	(12)
Recoveries	5	10
Ending balance	405	373
Continuing Operations [Member] | Commercial Real Estate: Commercial Mortgage [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance	148	165
Provision		(3)
Charge-offs	(2)	(2)
Recoveries	2	1
Ending balance	148	161
Continuing Operations [Member] | Commercial Real Estate Construction Financing Receivable [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance	28	32
Provision	1	(7)
Charge-offs	(1)	(2)
Recoveries		14
Ending balance	28	37
Continuing Operations [Member] | Commercial Lease Financing [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance	56	62
Provision	(3)	1
Charge-offs	(2)	(3)
Recoveries	4	2
Ending balance	55	62
Continuing Operations [Member] | Commercial Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance	623	621
Provision	19	4
Charge-offs	(17)	(19)
Recoveries	11	27
Ending balance	636	633
Continuing Operations [Member] | Real Estate - Residential Mortgage [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance	23	37
Provision		(8)
Charge-offs	(2)	(3)
Recoveries		1
Ending balance	21	27
Continuing Operations [Member] | Home Equity: Key Community Bank [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance	66	84
Provision	(3)	3
Charge-offs	(7)	(10)
Recoveries	2	3
Ending balance	58	80
Continuing Operations [Member] | Home Equity: Other [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance	5	11
Provision		2
Charge-offs	(1)	(3)
Recoveries	1	1
Ending balance	5	11
Continuing Operations [Member] | Home Equity Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance	71	95
Provision	(3)	5
Charge-offs	(8)	(13)
Recoveries	3	4
Ending balance	63	91
Continuing Operations [Member] | Consumer Other - Key Community Bank [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance	22	29
Provision	3	2
Charge-offs	(6)	(8)
Recoveries	2	2
Ending balance	21	25
Continuing Operations [Member] | Credit Cards [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance	33	34
Provision	7	4
Charge-offs	(8)	(6)
Ending balance	32	32
Continuing Operations [Member] | Consumer Marine [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance	21	29
Provision	1	(2)
Charge-offs	(5)	(7)
Recoveries	3	3
Ending balance	20	23
Continuing Operations [Member] | Consumer Others [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance	1	3
Provision	1	1
Charge-offs	(1)	(1)
Ending balance	1	3
Continuing Operations [Member] | Consumer Other - Key Corporate Bank [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance	22	32
Provision	2	(1)
Charge-offs	(6)	(8)
Recoveries	3	3
Ending balance	21	26
Continuing Operations [Member] | Consumer Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance	171	227
Provision	9	2
Charge-offs	(30)	(38)
Recoveries	8	10
Ending balance	158	201
Discontinued Operations [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance	29	39
Provision	2	4
Charge-offs		(13)
Charge-offs	(10)
Recoveries	(4)	(4)
Ending balance	$ 25	$ 34

XML

Derivatives and Hedging Activities - Fair Value of Derivative Assets by Type (Detail) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014	Mar. 31, 2014
Credit Derivatives [Line Items]
Derivative assets before collateral	$ 1,245	$ 1,127	$ 697
Less: Related collateral	514	518	270
Total derivative assets	731	609	427
Interest Rate [Member]
Credit Derivatives [Line Items]
Derivative assets before collateral	755	607	606
Foreign Exchange [Member]
Credit Derivatives [Line Items]
Derivative assets before collateral	58	41	20
Commodity [Member]
Credit Derivatives [Line Items]
Derivative assets before collateral	431	478	72
Credit [Member]
Credit Derivatives [Line Items]
Derivative assets before collateral	$ 1	$ 1	$ (1)

XML

Accumulated Other Comprehensive Income - Reclassifications Out of AOCI (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Corporate services income	$ 43	$ 42
Interest income - Loans	523	519
Interest expense - Long term debt	(37)	(32)
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	304	330
Income taxes	(74)	(92)
Income (loss) from continuing operations	230	238
Personnel expense	(389)	(388)
Unrealized Gains (Losses) on Derivative Financial Instruments [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	21	14
Income taxes	8	6
Income (loss) from continuing operations	13	8
Unrealized Gains (Losses) on Derivative Financial Instruments [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Interest Rate [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Interest income - Loans	22	15
Interest expense - Long term debt	(1)	(1)
Foreign Currency Translation Adjustment [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Corporate services income		3
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		3
Income taxes		1
Income (loss) from continuing operations		2
Net Pension and Postretirement Benefit Costs [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	(4)	(4)
Income taxes	(1)	(2)
Income (loss) from continuing operations	(3)	(2)
Net Pension and Postretirement Benefit Costs [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Amortization of Losses [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Personnel expense	$ (4)	$ (4)

XML

Securities (Tables)

3 Months Ended

Mar. 31, 2015

Investments, Debt and Equity Securities [Abstract]

Details of Securities

The amortized cost, unrealized gains and losses, and approximate fair value of our securities available for sale and held-to-maturity securities are presented in the following tables. Gross unrealized gains and losses represent the difference between the amortized cost and the fair value of securities on the balance sheet as of the dates indicated. Accordingly, the amount of these gains and losses may change in the future as market conditions change.

	March 31, 2015
in millions	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
SECURITIES AVAILABLE FOR SALE
States and political subdivisions	$	21	$	1		—	$	22
Collateralized mortgage obligations		11,116		124	$	77		11,163
Other mortgage-backed securities		1,870		32		—		1,902
Other securities		30		3		—		33
Total securities available for sale	$	13,037	$	160	$	77	$	13,120
HELD-TO-MATURITY SECURITIES
Collateralized mortgage obligations	$	4,749	$	26	$	30	$	4,745
Other mortgage-backed securities		234		2		—		236
Other securities		22		—		—		22
Total held-to-maturity securities	$	5,005	$	28	$	30	$	5,003

	December 31, 2014
in millions	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
SECURITIES AVAILABLE FOR SALE
States and political subdivisions	$	22	$	1		—	$	23
Collateralized mortgage obligations		11,310		96	$	136		11,270
Other mortgage-backed securities		2,004		32		1		2,035
Other securities		29		3		—		32
Total securities available for sale	$	13,365	$	132	$	137	$	13,360
HELD-TO-MATURITY SECURITIES
Collateralized mortgage obligations	$	4,755	$	15	$	57	$	4,713
Other mortgage-backed securities		240		1		—		241
Other securities		20		—		—		20
Total held-to-maturity securities	$	5,015	$	16	$	57	$	4,974

	March 31, 2014
in millions	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
SECURITIES AVAILABLE FOR SALE
States and political subdivisions	$	37		—		—	$	37
Collateralized mortgage obligations		10,541	$	136	$	208		10,469
Other mortgage-backed securities		1,817		25		10		1,832
Other securities		17		4		—		21
Total securities available for sale	$	12,412	$	165	$	218	$	12,359
HELD-TO-MATURITY SECURITIES
Collateralized mortgage obligations	$	4,806	$	9	$	102	$	4,713
Other securities		20		—		—		20
Total held-to-maturity securities	$	4,826	$	9	$	102	$	4,733

Available for Sale Securities (Unrealized Loss Position)

The following table summarizes our securities that were in an unrealized loss position as of March 31, 2015, December 31, 2014, and March 31, 2014.

	Duration of Unrealized Loss Position
	Less than 12 Months				12 Months or Longer				Total
in millions	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
March 31, 2015
Securities available for sale:
Collateralized mortgage obligations	$	1,722	$	25	$	2,722	$	52	$	4,444	$	77
Other mortgage-backed securities (a)		39		—		—		—		39		—
Other securities (b)		3		—		2		—		5		—
Held-to-maturity:
Collateralized mortgage obligations		637		8		1,348		22		1,985		30
Other securities (c)		4		—		—		—		4		—
Total temporarily impaired securities	$	2,405	$	33	$	4,072	$	74	$	6,477	$	107
December 31, 2014
Securities available for sale:
Collateralized mortgage obligations	$	3,019	$	52	$	2,932	$	84	$	5,951	$	136
Other mortgage-backed securities		—		—		78		1		78		1
Other securities (b)		4		—		2		—		6		—
Held-to-maturity:
Collateralized mortgage obligations		1,005		11		1,994		46		2,999		57
Total temporarily impaired securities	$	4,028	$	63	$	5,006	$	131	$	9,034	$	194
March 31, 2014
Securities available for sale:
Collateralized mortgage obligations	$	4,401	$	173	$	678	$	35	$	5,079	$	208
Other mortgage-backed securities		1,153		10		—		—		1,153		10
Other securities (b)		—		—		2		—		2		—
Held-to-maturity:
Collateralized mortgage obligations		3,139		92		200		10		3,339		102
Other securities (c)		—		—		—		—		—		—
Total temporarily impaired securities	$	8,693	$	275	$	880	$	45	$	9,573	$	320

(a) Gross unrealized losses totaled less than $1 million for other mortgage-backed securities available sale for the three-month period ended March 31, 2015.

(b) Gross unrealized losses totaled less than $1 million for other securities available sale for the three-month period ended March 31, 2015, the year ended December 31, 2014, and the three-month period ended March 31, 2014.

(c) Gross unrealized losses totaled less than $1 million for other securities held-to-maturity for the three-month periods ended March 31, 2015, and March 31, 2014.

Cumulative Credit Portion of Impairments on Debt Securities

As shown in the following table, we had less than $1 million of impairment losses recognized in earnings for the three months ended March 31, 2015.

Three months ended March 31, 2015
in millions
Balance at December 31, 2014	$	4
Impairment recognized in earnings		—
Balance at March 31, 2015	$	4

Available for Sale Securities Realized Gains and Losses

Realized gains and losses related to securities available for sale were as follows:

Three months ended March 31, 2015
in millions
Realized gains	—
Realized losses	—
Net securities gains (losses)	—

Securities by Maturity

 Actual maturities may differ from expected or contractual maturities since borrowers have the right to prepay obligations with or without prepayment penalties.

	Securities				Held-to-Maturity
	Available for Sale				Securities
March 31, 2015	Amortized		Fair		Amortized		Fair
in millions	Cost		Value		Cost		Value
Due in one year or less	$	288	$	292	$	9	$	9
Due after one through five years		12,599		12,676		4,504		4,498
Due after five through ten years		147		149		492		496
Due after ten years		3		3		—		—
Total	$	13,037	$	13,120	$	5,005	$	5,003

XML

Asset Quality - Nonperforming Assets and Past Due Loans (Detail) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014	Mar. 31, 2014
Receivables [Abstract]
Total nonperforming loans	$ 437	$ 418	$ 449
Nonperforming loans held for sale			1
OREO	20	18	12
Other nonperforming assets			7
Total nonperforming assets	457	436	469
Nonperforming assets from discontinued operations-education lending	8	11	20
Restructured loans included in nonperforming loans	141	157	178
Restructured loans with an allocated specific allowance	70	82	51
Specifically allocated allowance for restructured loans	39	34	32
Accruing loans past due 90 days or more	111	96	89
Accruing loans past due 30 through 89 days	$ 216	$ 235	$ 267

XML

Acquisitions and Discontinued Operations

3 Months Ended

Mar. 31, 2015

Business Combinations [Abstract]

Acquisitions and Discontinued Operations

11. Acquisitions and Discontinued Operations

Acquisitions

Pacific Crest Securities. On September 3, 2014, we acquired Pacific Crest Securities, a leading technology-focused investment bank and capital markets firm based in Portland, Oregon. This acquisition, which is being accounted for as a business combination, expands our corporate and investment banking business unit and adds technology to our other industry verticals. During the fourth quarter of 2014, we recorded identifiable intangible assets of $13 million and goodwill of $78 million in Key Corporate Bank for this acquisition. The identifiable intangible assets and the goodwill related to this acquisition are non-deductible for tax purposes. Additional information regarding the identifiable intangible assets and the goodwill related to this acquisition is provided in Note 10 (“Goodwill and Other Intangible Assets”) beginning on page 173 of our 2014 Form 10-K.

Discontinued operations

Education lending. In September 2009, we decided to exit the government-guaranteed education lending business. As a result, we have accounted for this business as a discontinued operation.

As of January 1, 2010, we consolidated our 10 outstanding education lending securitization trusts since we held the residual interests and are the master servicer with the power to direct the activities that most significantly influence the economic performance of the trusts.

On September 30, 2014, we sold the residual interests in all of our outstanding education lending securitization trusts to a third party for $57 million. In selling the residual interests, we no longer have the obligation to absorb losses or the right to receive benefits related to the securitization trusts. Therefore, in accordance with the applicable accounting guidance, we deconsolidated the securitization trusts and removed trust assets of $1.7 billion and trust liabilities of $1.6 billion from our balance sheet at September 30, 2014. As part of the sale and deconsolidation, we recognized an after-tax loss of $25 million, which is recorded in “income (loss) from discontinued operations, net of tax” on our income statement. We continue to service the securitized loans in eight of the securitization trusts and receive servicing fees, whereby we are adequately compensated, as well as remain a counterparty to derivative contracts with three of the securitization trusts. We have retained interests in the securitization trusts through our ownership of an insignificant percentage of certificates in two of the securitization trusts and two interest-only strips in one of the securitization trusts. These retained interests were remeasured at fair value on September 30, 2014, and their fair value of $1 million was recorded in “discontinued assets” on our balance sheet. These assets were valued using a similar approach and inputs that have been used to value the education loan securitization trust loans and securities, which are further discussed later in this note.

“Income (loss) from discontinued operations, net of taxes” on the income statement includes (i) the changes in fair value of the assets and liabilities of the education loan securitization trusts and the loans at fair value in portfolio (discussed later in this note), and (ii) the interest income and expense from the loans and the securities of the trusts and the loans in portfolio at both amortized cost and fair value. These amounts are shown separately in the following table. Gains and losses attributable to changes in fair value are recorded as a component of “noninterest income” or “noninterest expense.” Interest income and expense related to the loans and securities are shown as a component of “net interest income.”

The components of “income (loss) from discontinued operations, net of taxes” for the education lending business are as follows:

	Three months ended March 31,
in millions	2015		2014
Net interest income	$	10	$	23
Provision for credit losses		2		4
Net interest income after provision for credit losses		8		19
Noninterest income		4		(14	)
Noninterest expense		4		6
Income (loss) before income taxes		8		(1	)
Income taxes		3		—
Income (loss) from discontinued operations, net of taxes (a)	$	5	$	(1	)

(a) Includes after-tax charges of $6 million and $9 million for the three-month periods ended March 31, 2015, and March 31, 2014, respectively, determined by applying a matched funds transfer pricing methodology to the liabilities assumed necessary to support the discontinued operations.

The discontinued assets and liabilities of our education lending business included on the balance sheet are as follows:

in millions	March 31, 2015		December 31, 2014		March 31, 2014
Held-to-maturity securities	$	1	$	1		—
Trust loans at fair value		—		—	$	1,893
Portfolio loans at fair value		187		191		143
Loans, net of unearned income (a)		2,032		2,104		2,318
Less: Allowance for loan and lease losses		25		29		34
Net loans		2,194		2,266		4,320
Trust accrued income and other assets at fair value		—		—		19
Accrued income and other assets		36		38		41
Total assets	$	2,231	$	2,305	$	4,380
Trust accrued expense and other liabilities at fair value		—		—	$	20
Trust securities at fair value		—		—		1,796
Total liabilities		—		—	$	1,816

(a) At March 31, 2015, December 31, 2014, and March 31, 2014, unearned income was less than $1 million.

The discontinued education lending business consists of loans in portfolio (recorded at fair value) and loans in portfolio (recorded at carrying value with appropriate valuation reserves). The assets and liabilities in the securitization trusts (recorded at fair value) were removed with the deconsolidation of the securitization trusts on September 30, 2014.

At March 31, 2015, education loans include 1,604 TDRs with a recorded investment of approximately $18 million (pre-modification and post-modification). A specifically allocated allowance of $1 million was assigned to these loans as of March 31, 2015. There have been no significant payment defaults. There are no significant commitments outstanding to lend additional funds to these borrowers. Additional information regarding TDR classification and ALLL methodology is provided in Note 4 (“Asset Quality”).

In the past, as part of our education lending business model, we originated and securitized education loans. The process of securitization involved taking a pool of loans from our balance sheet and selling them to a bankruptcy-remote QSPE, or trust. This trust then issued securities to investors in the capital markets to raise funds to pay for the loans. The cash flows generated from the loans pays holders of the securities issued. As the transferor, we retained a portion of the risk in the form of a residual interest and also retained the right to service the securitized loans and receive servicing fees.

The trust assets can be used only to settle the obligations or securities the trusts issue; the assets cannot be sold and the liabilities cannot be transferred. The loans in the trusts consist of both private and government-guaranteed loans. The security holders or beneficial interest holders do not have recourse to Key. We no longer have economic interest or risk of loss associated with these education loan securitization trusts as of September 30, 2014, and therefore, the securitization trusts were deconsolidated. During the second quarter of 2014, additional market information became available. Based on this information and our related internal analysis, we adjusted certain assumptions related to valuing the loans in the securitization trusts. As a result, we recognized a net after-tax loss of $22 million during the second quarter of 2014 related to the fair value of the loans and securities in the securitization trusts. These losses resulted in a reduction in the value of our economic interest in these trusts. We record all income and expense (including fair value adjustments) through “income (loss) from discontinued operations, net of tax” on our income statement.

On June 27, 2014, we purchased the private loans from one of the education loan securitization trusts through the execution of a clean-up call option. The trust used the cash proceeds from the sale of these loans to retire the outstanding securities related to these private loans, and there are no future commitments or obligations to the holders of the securities. The trust no longer has any loans or securities and will remain in existence for one year from the time the clean-up call was exercised. The portfolio loans were valued using an internal discounted cash flow method, which was affected by assumptions for defaults, expected credit losses, discount rates, and prepayments. The portfolio loans are considered to be Level 3 assets since we rely on unobservable inputs when determining fair value.

At March 31, 2015, there were $186 million of loans that were previously purchased from three of the outstanding securitizations trusts pursuant to the legal terms of these particular trusts. These loans are held as portfolio loans and continue to be accounted for at fair value. These portfolio loans were valued using an internal discounted cash flow model, which was affected by assumptions for defaults, loss severity, discount rates, and prepayments. These portfolio loans are considered Level 3 assets since we rely on unobservable inputs when determining fair value. Our valuation process for these loans as well as the trust loans and securities is discussed in more detail below. Portfolio loans accounted for at fair value had a value of $187 million at March 31, 2015, $191 million at December 31, 2014, and $143 million at March 31, 2014.

When we first consolidated the education loan securitization trusts, we made an election to record them at fair value. Carrying the assets and liabilities of the trusts at fair value better depicted our economic interest. The fair value of the assets and liabilities of the trusts was determined by calculating the present value of the future expected cash flows. We relied on unobservable inputs (Level 3) when determining the fair value of the assets and liabilities of the trusts because observable market data was not available. Our valuation process is described in more detail below.

Corporate Treasury, within our Finance area, is responsible for the quarterly valuation process that determines the fair value of our student loans held in portfolio that are accounted for at fair value and previously for our loans and securities in our education loan securitization trusts. Corporate Treasury provides these fair values to a Working Group Committee (the “Working Group”) comprising representatives from the line of business, Credit and Market Risk Management, Accounting, Business Finance (part of our Finance area), and Corporate Treasury. The Working Group is a subcommittee of the Fair Value Committee that is discussed in more detail in Note 5 (“Fair Value Measurements”). The Working Group reviews all significant inputs and assumptions and approves the resulting fair values.

The Working Group reviews actual performance trends of the loans on a quarterly basis and uses statistical analysis and qualitative measures to determine assumptions for future performance. Predictive models that incorporate delinquency and charge-off trends along with economic outlooks assist the Working Group to forecast future defaults. The Working Group uses this information to formulate the credit outlook related to the loans. Higher projected defaults, fewer expected recoveries, elevated prepayment speeds, and higher discount rates would be expected to result in a lower fair value of the portfolio loans at fair value. Default expectations and discount rate changes have the most significant impact on the fair values of the loans. Increased cash flow uncertainty, whether through higher defaults and prepayments or fewer recoveries, can result in higher discount rates for use in the fair value process for these loans. This process was previously used in the valuation of the education loan securitization trust loans.

The valuation process for the portfolio loans that are accounted for at fair value is based on a discounted cash flow analysis using a model purchased from a third party that is maintained by Corporate Treasury. The valuation process begins with loan-by-loan level data that is aggregated into pools based on underlying loan structural characteristics (i.e., current unpaid principal balance, contractual term, interest rate). Cash flows for these loan pools are developed using a financial model that reflects certain assumptions for defaults, recoveries, status changes, and prepayments. A net earnings stream, taking into account cost of funding, is calculated and discounted back to the measurement date using an appropriate discount rate. This resulting amount is used to determine the present value of the loans, which represents their fair value to a market participant.

The unobservable inputs set forth in the following table are reviewed and approved by the Working Group on a quarterly basis. The Working Group determines these assumptions based on available data, discussions with appropriate individuals within and outside of Key, and the knowledge and experience of the Working Group members.

A similar discounted cash flow approach to that described above was used on a quarterly basis by Corporate Treasury to determine the fair value of the trust securities. In valuing these securities, the discount rates used were provided by a third-party valuation consultant. These discount rates were based primarily on secondary market spread indices for similar student loans and asset-backed securities and were developed by the consultant using market-based data. On a quarterly basis, the Working Group reviewed the discount rate inputs used in the valuation process for reasonableness.

A quarterly variance analysis reconciles valuation changes in the model used to calculate the fair value of the trust loans and securities and the portfolio loans at fair value. This quarterly analysis considers loan and securities run-off, yields, future default and recovery changes, and the timing of cash releases to us from the trusts. We also perform back-testing to compare expected defaults to actual experience; the impact of future defaults can significantly affect the fair value of these loans and securities over time. In addition, our internal model validation group periodically performs a review to ensure the accuracy and validity of the model for determining the fair value of these loans and securities.

The following table shows the significant unobservable inputs used to measure the fair value of the education loan securitization trust loans and securities and the portfolio loans accounted for at fair value as of March 31, 2015, December 31, 2014, and March 31, 2014:

March 31, 2015 dollars in millions	Fair Value of Level 3 Assets and Liabilities		Valuation Technique	Significant Unobservable Input	Range (Weighted-Average)
Portfolio loans accounted for at fair value	$	187	Discounted cash flow	Prepayment speed		5.40 - 10.20% (7.04%)
				Loss severity		2.00 - 77.00% (27.66%)
				Discount rate		3.70 - 3.80% (3.71%)
				Default rate		1.40 - 1.70% (1.60%)
December 31, 2014 dollars in millions	Fair Value of Level 3 Assets and Liabilities		Valuation Technique	Significant Unobservable Input	Range (Weighted-Average)
Portfolio loans accounted for at fair value	$	191	Discounted cash flow	Prepayment speed		5.40 - 5.60% (5.50%)
				Loss severity		2.00 - 77.00% (25.66%)
				Discount rate		3.90 - 4.00% (3.92%)
				Default rate		.86 - 1.70% (1.12%)
March 31, 2014 dollars in millions	Fair Value of Level 3 Assets and Liabilities		Valuation Technique	Significant Unobservable Input	Range (Weighted-Average)
Trust loans and portfolio loans accounted for at fair value	$	2,036	Discounted cash flow	Prepayment speed		4.00 - 13.50% (6.62%)
				Loss severity		2.00 - 79.50% (53.89%)
				Discount rate		2.40 - 10.50% (3.51%)
				Default rate		8.05 - 23.87% (18.65%)
Trust securities		1,796	Discounted cash flow	Discount rate		1.60 - 3.50% (2.55%)

The following table shows the principal and fair value amounts for our trust loans at fair value, portfolio loans at fair value, and portfolio loans at carrying value at March 31, 2015, December 31, 2014, and March 31, 2014. Our policies for determining past due loans, placing loans on nonaccrual, applying payments on nonaccrual loans, and resuming accrual of interest are disclosed in Note 1 (“Summary of Significant Accounting Policies”) under the heading “Nonperforming Loans” beginning on page 116 of our 2014 Form 10-K.

	March 31, 2015				December 31, 2014				March 31, 2014
in millions	Principal		Fair Value		Principal		Fair Value		Principal		Fair Value
Trust loans at fair value
Accruing loans past due 90 days or more		—		—		—		—	$	25	$	25
Loans placed on nonaccrual status		—		—		—		—		10		10
Portfolio loans at fair value
Accruing loans past due 90 days or more	$	5	$	5	$	5	$	5	$	7	$	7
Loans placed on nonaccrual status		—		—		—		—		—		—
Portfolio loans at carrying value
Accruing loans past due 90 days or more	$	27		N/A	$	29		N/A	$	32		N/A
Loans placed on nonaccrual status		8		N/A		11		N/A		8		N/A

The following table shows the consolidated trusts’ assets and liabilities at fair value and the portfolio loans at fair value and their related contractual values as of March 31, 2015, December 31, 2014, and March 31, 2014.

	March 31, 2015				December 31, 2014				March 31, 2014
in millions	Contractual Amount		Fair Value		Contractual Amount		Fair Value		Contractual Amount		Fair Value
ASSETS
Portfolio loans	$	186	$	187	$	192	$	191	$	136	$	143
Trust loans		—		—		—		—		1,889		1,893
Trust other assets		—		—		—		—		19		19
LIABILITIES
Trust securities		—		—		—		—	$	1,904	$	1,796
Trust other liabilities		—		—		—		—		20		20

The following tables present the assets and liabilities of the consolidated education loan securitization trusts measured at fair value as well as the portfolio loans that are measured at fair value on a recurring basis at March 31, 2015, December 31, 2014, and March 31, 2014.

March 31, 2015 in millions	Level 1		Level 2		Level 3		Total
ASSETS MEASURED ON A RECURRING BASIS
Portfolio loans		—		—	$	187	$	187
Total assets on a recurring basis at fair value		—		—	$	187	$	187
December 31, 2014 in millions	Level 1		Level 2		Level 3		Total
ASSETS MEASURED ON A RECURRING BASIS
Portfolio loans		—		—	$	191	$	191
Total assets on a recurring basis at fair value		—		—	$	191	$	191
March 31, 2014 in millions	Level 1		Level 2		Level 3		Total
ASSETS MEASURED ON A RECURRING BASIS
Portfolio loans		—		—	$	143	$	143
Trust loans		—		—		1,893		1,893
Trust other assets		—		—		19		19
Total assets on a recurring basis at fair value		—		—	$	2,055	$	2,055
LIABILITIES MEASURED ON A RECURRING BASIS
Trust securities		—		—	$	1,796	$	1,796
Trust other liabilities		—		—		20		20
Total liabilities on a recurring basis at fair value		—		—	$	1,816	$	1,816

The following table shows the change in the fair values of the Level 3 consolidated education loan securitization trusts and portfolio loans for the three-month periods ended March 31, 2015, and March 31, 2014.

in millions	Portfolio Student Loans			Trust Student Loans			Trust Other Assets			Trust Securities			Trust Other Liabilities
Balance at December 31, 2014	$	191			—			—			—			—
Gains (losses) recognized in earnings (a)		3			—			—			—			—
Purchases		—			—			—			—			—
Sales		—			—			—			—			—
Settlements		(7	)		—			—			—			—
Balance at March 31, 2015 (b)	$	187			—			—			—			—
Balance at December 31, 2013	$	147		$	1,960		$	20		$	1,834		$	20
Gains (losses) recognized in earnings (a)		—			2			—			16			—
Purchases		—			—			—			—			—
Sales		—			—			—			—			—
Settlements		(4	)		(69	)		(1	)		(54	)		—
Balance at March 31, 2014 (b)	$	143		$	1,893		$	19		$	1,796		$	20

(a) Gains (losses) were driven primarily by fair value adjustments.

(b) There were no issuances, transfers into Level 3, or transfers out of Level 3 for the three-month periods ended March 31, 2015, and March 31, 2014.

Victory Capital Management and Victory Capital Advisors. On July 31, 2013, we completed the sale of Victory to a private equity fund. During March 2014, client consents were secured and assets under management were finalized and, as a result, we recorded an additional after-tax cash gain of $6 million as of March 31, 2014. Since February 21, 2013, when we agreed to sell Victory, we have accounted for this business as a discontinued operation.

The results of this discontinued business are included in “income (loss) from discontinued operations, net of taxes” on the income statement. The components of “income (loss) from discontinued operations, net of taxes” for Victory, which includes the additional gain recorded as of March 31, 2014, on the sale of this business, are as follows:

	Three months ended March 31,
in millions	2015		2014
Net interest income		—	$	1
Noninterest income		—		10
Noninterest expense		—		—
Income (loss) before income taxes		—		11
Income taxes		—		4
Income (loss) from discontinued operations, net of taxes		—	$	7

The discontinued assets and liabilities of Victory included on the balance sheet are as follows:

in millions	March 31, 2015		December 31, 2014		March 31, 2014
Seller note (a)		—		—	$	28
Total assets		—		—	$	28
Accrued expense and other liabilities		—		—		—
Total liabilities		—		—		—

(a) At March 31, 2014, the only remaining asset of Victory was the Seller note. The Seller note was paid off during the fourth quarter of 2014.

Austin Capital Management, Ltd. In April 2009, we decided to wind down the operations of Austin, a subsidiary that specialized in managing hedge fund investments for institutional customers. As a result, we have accounted for this business as a discontinued operation.

The results of this discontinued business are included in “income (loss) from discontinued operations, net of taxes” on the income statement. The components of “income (loss) from discontinued operations, net of taxes” for Austin are as follows:

	Three months ended March 31,
in millions	2015		2014
Noninterest expense		—	$	4
Income (loss) before income taxes		—		(4	)
Income taxes		—		(2	)
Income (loss) from discontinued operations, net of taxes		—	$	(2	)

The discontinued assets and liabilities of Austin included on the balance sheet are as follows:

in millions	March 31, 2015		December 31, 2014		March 31, 2014
Cash and due from banks	$	15	$	19	$	19
Total assets	$	15	$	19	$	19
Accrued expense and other liabilities		—	$	3	$	3
Total liabilities		—	$	3	$	3

Combined discontinued operations. The combined results of the discontinued operations are as follows:

	Three months ended March 31,
in millions	2015		2014
Net interest income	$	10	$	24
Provision for credit losses		2		4
Net interest income after provision for credit losses		8		20
Noninterest income		4		(4	)
Noninterest expense		4		10
Income (loss) before income taxes		8		6
Income taxes		3		2
Income (loss) from discontinued operations, net of taxes (a)	$	5	$	4

(a) Includes after-tax charges of $6 million and $9 million for the three-month periods ended March 31, 2015, and March 31, 2014, respectively, determined by applying a matched funds transfer pricing methodology to the liabilities assumed necessary to support the discontinued operations.

The combined assets and liabilities of the discontinued operations are as follows:

in millions	March 31, 2015		December 31, 2014		March 31, 2014
Cash and due from banks	$	15	$	19	$	19
Held-to-maturity securities		1		1		—
Seller note		—		—		28
Trust loans at fair value		—		—		1,893
Portfolio loans at fair value		187		191		143
Loans, net of unearned income (a)		2,032		2,104		2,318
Less: Allowance for loan and lease losses		25		29		34
Net loans		2,194		2,266		4,320
Trust accrued income and other assets at fair value		—		—		19
Accrued income and other assets		36		38		41
Total assets	$	2,246	$	2,324	$	4,427
Trust accrued expense and other liabilities at fair value		—		—	$	20
Accrued expense and other liabilities		—	$	3		3
Trust securities at fair value		—		—		1,796
Total liabilities		—	$	3	$	1,819

(a) At March 31, 2015, December 31, 2014, and March 31, 2014, unearned income was less than $1 million.

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Acquisitions and Discontinued Operations - Combined Results of Discontinued Operations (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Income taxes	$ 3	$ 2
Income (loss) from discontinued operations, net of taxes	5	4
Discontinued Operations [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net interest income	10	24
Provision for credit losses	2	4
Net interest income after provision for credit losses	8	20
Noninterest income	4	(4)
Noninterest expense	4	10
Income (loss) before income taxes	8	6
Income taxes	3	2
Income (loss) from discontinued operations, net of taxes	$ 5	$ 4

XML

Accumulated Other Comprehensive Income

3 Months Ended

Mar. 31, 2015

Equity [Abstract]

Accumulated Other Comprehensive Income

16. Accumulated Other Comprehensive Income

Our changes in AOCI for the three months ended March 31, 2015, and March 31, 2014, are as follows:

in millions	Unrealized gains (losses) on securities available for sale			Unrealized gains (losses) on derivative financial instruments			Foreign currency translation adjustment			Net pension and postretirement benefit costs			Total
Balance at December 31, 2014	$	(4	)	$	(8	)	$	22		$	(366	)	$	(356	)
Other comprehensive income before reclassification, net of income taxes		55			45			(13	)		—			87
Amounts reclassified from accumulated other comprehensive income, net of income taxes (a)		—			(13	)		—			3			(10	)
Net current-period other comprehensive income, net of income taxes		55			32			(13	)		3			77
Balance at March 31, 2015	$	51		$	24		$	9		$	(363	)	$	(279	)
Balance at December 31, 2013	$	(63	)	$	(11	)	$	42		$	(320	)	$	(352	)
Other comprehensive income before reclassification, net of income taxes		29			7			—			—			36
Amounts reclassified from accumulated other comprehensive income, net of income taxes (a)		—			(8	)		(2	)		2			(8	)
Net current-period other comprehensive income, net of income taxes		29			(1	)		(2	)		2			28
Balance at March 31, 2014	$	(34	)	$	(12	)	$	40		$	(318	)	$	(324	)

(a) See table below for details about these reclassifications.

Our reclassifications out of AOCI for the three months ended March 31, 2015, and March 31, 2014, are as follows:

Three months ended March 31, 2015 in millions	Amount Reclassified from Accumulated Other Comprehensive Income			Affected Line Item in the Statement Where Net Income is Presented
Unrealized gains (losses) on derivative financial instruments
Interest rate	$	22		Interest income — Loans
Interest rate		(1	)	Interest expense — Long term debt
		21		Income (loss) from continuing operations before income taxes
		8		Income taxes
	$	13		Income (loss) from continuing operations
Net pension and postretirement benefit costs
Amortization of losses	$	(4	)	Personnel expense
		(4	)	Income (loss) from continuing operations before income taxes
		(1	)	Income taxes
	$	(3	)	Income (loss) from continuing operations
Three months ended March 31, 2014 in millions	Amount Reclassified from Accumulated Other Comprehensive Income			Affected Line Item in the Statement Where Net Income is Presented
Unrealized gains (losses) on derivative financial instruments
Interest rate	$	15		Interest income — Loans
Interest rate		(1	)	Interest expense — Long term debt
		14		Income (loss) from continuing operations before income taxes
		6		Income taxes
	$	8		Income (loss) from continuing operations
Foreign currency translation adjustment
	$	3		Corporate services income
		3		Income (loss) from continuing operations before income taxes
		1		Income taxes
	$	2		Income (loss) from continuing operations
Net pension and postretirement benefit costs
Amortization of losses	$	(4	)	Personnel expense
		(4	)	Income (loss) from continuing operations before income taxes
		(2	)	Income taxes
	$	(2	)	Income (loss) from continuing operations

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Derivatives and Hedging Activities - Credit Risk Contingent Feature (Detail) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014	Mar. 31, 2014
Credit Derivatives [Line Items]
Additional collateral aggregate fair value	$ 169
Moody's, A3 Rating [Member] | One Rating Downgrade [Member]
Credit Derivatives [Line Items]
Additional collateral aggregate fair value	4	1	6
Moody's, A3 Rating [Member] | Two Rating Downgrades [Member]
Credit Derivatives [Line Items]
Additional collateral aggregate fair value	4	1	11
Moody's, A3 Rating [Member] | Three Rating Downgrades [Member]
Credit Derivatives [Line Items]
Additional collateral aggregate fair value	6	3	11
Standard & Poor's, A- Rating [Member] | One Rating Downgrade [Member]
Credit Derivatives [Line Items]
Additional collateral aggregate fair value	4	1	6
Standard & Poor's, A- Rating [Member] | Two Rating Downgrades [Member]
Credit Derivatives [Line Items]
Additional collateral aggregate fair value	4	1	11
Standard & Poor's, A- Rating [Member] | Three Rating Downgrades [Member]
Credit Derivatives [Line Items]
Additional collateral aggregate fair value	$ 6	$ 3	$ 11

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Loans and Loans Held for Sale - Loans Held for Sale (Detail) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Mar. 31, 2014	Dec. 31, 2013
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial, financial and agricultural	$ 183	$ 63		$ 44
Commercial lease financing	14	15		8
Total loans held for sale	1,649	734	784	401	611
Commercial Mortgage [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Real estate - mortgage	1,408	638		333
Residential Mortgage [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Real estate - mortgage	$ 44	$ 18		$ 16

XML

Acquisitions and Discontinued Operations - Components of Assets and Liabilities of Education Lending Business (Detail) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014	Mar. 31, 2014
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Loans at fair value	$ 187	$ 191	$ 143
Loans, net of unearned income	57,953	57,381	55,445
Total assets	2,246	2,324	4,427
Trust accrued expense and other liabilities at fair value	1,308	1,621	1,297
Total liabilities		3	1,819
Discontinued Operations [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Loans, net of unearned income	2,032	2,104	2,318
Less: Allowance for loan and lease losses	25	29	34
Net loans	2,194	2,266	4,320
Accrued income and other assets	36	38	41
Total assets	2,246	2,324	4,427
Trust securities at fair value			1,796
Total liabilities		3	1,819
Trust [Member] | Discontinued Operations [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Loans at fair value			1,893
Trust accrued income and other assets at fair value			19
Trust accrued expense and other liabilities at fair value			20
Portfolio [Member] | Discontinued Operations [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Loans at fair value	187	191	143
Education Lending [Member] | Discontinued Operations [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Held-to-maturity securities	1	1
Loans, net of unearned income	2,032	2,104	2,318
Less: Allowance for loan and lease losses	25	29	34
Net loans	2,194	2,266	4,320
Accrued income and other assets	36	38	41
Total assets	2,231	2,305	4,380
Total liabilities			1,816
Education Lending [Member] | Trust [Member] | Discontinued Operations [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Loans at fair value			1,893
Trust accrued income and other assets at fair value			19
Trust accrued expense and other liabilities at fair value			20
Trust securities at fair value			1,796
Education Lending [Member] | Portfolio [Member] | Discontinued Operations [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Loans at fair value	$ 187	$ 191	$ 143

XML

Trust Preferred Securities Issued by Unconsolidated Subsidiaries (Tables)

3 Months Ended

Mar. 31, 2015

Text Block [Abstract]

Summary of Trust Preferred Securities, Common Stock and Related Debentures

The trust preferred securities, common stock, and related debentures are summarized as follows:

dollars in millions	Trust Preferred Securities, Net of Discount (a)		Common Stock		Principal Amount of Debentures, Net of Discount (b)		Interest Rate of Trust Preferred Securities and Debentures (c)			Maturity of Trust Preferred Securities and Debentures
March 31, 2015
KeyCorp Capital I	$	156	$	6	$	162		.995	%		2028
KeyCorp Capital II		112		4		116		6.875			2029
KeyCorp Capital III		146		4		150		7.750			2029
Total	$	414	$	14	$	428		4.968	%		—
December 31, 2014	$	408	$	14	$	422		4.926	%		—
March 31, 2014	$	391	$	14	$	405		4.823	%		—

(a) The trust preferred securities must be redeemed when the related debentures mature, or earlier if provided in the governing indenture. Each issue of trust preferred securities carries an interest rate identical to that of the related debenture. Certain trust preferred securities include basis adjustments related to fair value hedges totaling $74 million at March 31, 2015, $68 million at December 31, 2014, and $51 million at March 31, 2014. See Note 7 (“Derivatives and Hedging Activities”) for an explanation of fair value hedges.

(b) We have the right to redeem these debentures. If the debentures purchased by KeyCorp Capital I are redeemed before they mature, the redemption price will be the principal amount, plus any accrued but unpaid interest. If the debentures purchased by KeyCorp Capital II or KeyCorp Capital III are redeemed before they mature, the redemption price will be the greater of: (i) the principal amount, plus any accrued but unpaid interest, or (ii) the sum of the present values of principal and interest payments discounted at the Treasury Rate (as defined in the applicable indenture), plus 20 basis points for KeyCorp Capital II or 25 basis points for KeyCorp Capital III or 50 basis points in the case of redemption upon either a tax or a capital treatment event for either KeyCorp Capital II or KeyCorp Capital III, plus any accrued but unpaid interest. The principal amount of certain debentures includes basis adjustments related to fair value hedges totaling $74 million at March 31, 2015, $68 million at December 31, 2014, and $51 million at March 31, 2014. See Note 7 for an explanation of fair value hedges. The principal amount of debentures, net of discounts, is included in “long-term debt” on the balance sheet.

(c) The interest rates for the trust preferred securities issued by KeyCorp Capital II and KeyCorp Capital III are fixed. KeyCorp Capital I has a floating interest rate, equal to three-month LIBOR plus 74 basis points, that reprices quarterly. The total interest rates are weighted-average rates.

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Acquisitions and Discontinued Operations - Quantitative Information about Level 3 Fair Value Measurements (Detail) (Level 3 [Member], USD $) In Millions, unless otherwise specified	3 Months Ended	12 Months Ended	3 Months Ended
	Mar. 31, 2015	Dec. 31, 2014	Mar. 31, 2014
Portfolio Loans [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Trust loans and portfolio loans accounted for at fair value	$ 187	$ 191
Valuation Techniques	Discounted cash flow	Discounted cash flow
Trust and Portfolio Loans [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Trust loans and portfolio loans accounted for at fair value			2,036
Valuation Techniques			Discounted cash flow
Trust Securities [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Trust loans and portfolio loans accounted for at fair value			$ 1,796
Valuation Techniques			Discounted cash flow
Minimum [Member] | Prepayment Speed Trust Loans and Portfolio Loans [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Percentage of significant unobservable inputs	5.40%	5.40%	4.00%
Minimum [Member] | Loss Severity [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Percentage of significant unobservable inputs	2.00%	2.00%	2.00%
Minimum [Member] | Loan Discount Rates [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Percentage of significant unobservable inputs	3.70%	3.90%	2.40%
Minimum [Member] | Loan Default Rate [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Percentage of significant unobservable inputs	1.40%	0.86%	8.05%
Minimum [Member] | Discount Rate Trust Securities [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Percentage of significant unobservable inputs			1.60%
Maximum [Member] | Prepayment Speed Trust Loans and Portfolio Loans [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Percentage of significant unobservable inputs	10.20%	5.60%	13.50%
Maximum [Member] | Loss Severity [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Percentage of significant unobservable inputs	77.00%	77.00%	79.50%
Maximum [Member] | Loan Discount Rates [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Percentage of significant unobservable inputs	3.80%	4.00%	10.50%
Maximum [Member] | Loan Default Rate [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Percentage of significant unobservable inputs	1.70%	1.70%	23.87%
Maximum [Member] | Discount Rate Trust Securities [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Percentage of significant unobservable inputs			3.50%
Weighted Average [Member] | Prepayment Speed Trust Loans and Portfolio Loans [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Percentage of significant unobservable inputs	7.04%	5.50%	6.62%
Weighted Average [Member] | Loss Severity [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Percentage of significant unobservable inputs	27.66%	25.66%	53.89%
Weighted Average [Member] | Loan Discount Rates [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Percentage of significant unobservable inputs	3.71%	3.92%	3.51%
Weighted Average [Member] | Loan Default Rate [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Percentage of significant unobservable inputs	1.60%	1.12%	18.65%
Weighted Average [Member] | Discount Rate Trust Securities [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Percentage of significant unobservable inputs			2.55%

XML

Consolidated Statements of Income (Unaudited) (Parenthetical) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Net tax effect on income (loss) from discontinued operations	$ 3,000,000	$ 2,000,000
Impairment losses related to securities		0
Maximum [Member]
Net securities gains (losses)	1,000,000	1,000,000
Impairment losses related to securities	$ 1,000,000

XML

Derivatives and Hedging Activities - Derivative Instrument Cash Flow Hedge Earning Recognized by Income Statement Location (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Derivatives, Fair Value [Line Items]
Net Gains (Losses) Recognized in OCI (Effective Portion)	$ 72	$ 12
Net Gains (Losses) Reclassified From OCI Into Income (Effective Portion)	21	14
Net Gains (Losses) Recognized in Income (Ineffective Portion)	0	0
Other Income [Member] | Interest Rate [Member] | Cash Flow Hedges [Member]
Derivatives, Fair Value [Line Items]
Net Gains (Losses) Recognized in Income (Ineffective Portion)	0	0
Other Income [Member] | Foreign Exchange [Member] | Net Investment Hedges [Member]
Derivatives, Fair Value [Line Items]
Net Gains (Losses) Recognized in OCI (Effective Portion)	24	5
Net Gains (Losses) Recognized in Income (Ineffective Portion)	0	0
Interest Income [Member] | Interest Rate [Member] | Cash Flow Hedges [Member]
Derivatives, Fair Value [Line Items]
Net Gains (Losses) Recognized in OCI (Effective Portion)	54	9
Net Gains (Losses) Reclassified From OCI Into Income (Effective Portion)	22	15
Interest Expense [Member] | Interest Rate [Member] | Cash Flow Hedges [Member]
Derivatives, Fair Value [Line Items]
Net Gains (Losses) Recognized in OCI (Effective Portion)	(2)	(2)
Net Gains (Losses) Reclassified From OCI Into Income (Effective Portion)	(1)	(1)
Investment Banking and Debt Placement Fees [Member] | Interest Rate [Member] | Cash Flow Hedges [Member]
Derivatives, Fair Value [Line Items]
Net Gains (Losses) Recognized in OCI (Effective Portion)	$ (4)

XML

Consolidated Statements of Cash Flows (Unaudited) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
OPERATING ACTIVITIES
Net income (loss)	$ 235	$ 242
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Provision for credit losses	35	4
Provision (credit) for losses on LIHTC guaranteed funds		(6)
Depreciation, amortization and accretion expense, net	50	52
Increase in cash surrender value of corporate-owned life insurance	(25)	(24)
Stock-based compensation expense	13	11
Deferred income taxes (benefit)	50	40
Proceeds from sales of loans held for sale	1,225	611
Originations of loans held for sale, net of repayments	(2,109)	(383)
Net losses (gains) on sales of loans held for sale	(20)	(15)
Net losses (gains) from principal investing	(29)	(24)
Net losses (gains) on leased equipment	(3)	(14)
Net decrease (increase) in trading account assets	(39)	(102)
Other operating activities, net	(485)	(236)
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES	(1,102)	156
INVESTING ACTIVITIES
Net decrease (increase) in short-term investments, excluding acquisitions	891	2,668
Purchases of securities available for sale	(403)	(618)
Proceeds from prepayments and maturities of securities available for sale	724	650
Proceeds from prepayments and maturities of held-to-maturity securities	266	180
Purchases of held-to-maturity securities	(257)	(250)
Purchases of other investments	(13)	(17)
Proceeds from sales of other investments	32	122
Proceeds from prepayments and maturities of other investments	4	2
Net decrease (increase) in loans, excluding acquisitions, sales and transfers	(727)	(1,029)
Proceeds from sales of portfolio loans	47	21
Proceeds from corporate-owned life insurance	15	6
Purchases of premises, equipment, and software	(3)	(11)
Proceeds from sales of premises and equipment		1
Proceeds from sales of other real estate owned	6	5
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES	582	1,730
FINANCING ACTIVITIES
Net increase (decrease) in deposits, excluding acquisitions	(376)	(1,996)
Net increase (decrease) in short-term borrowings	127	4
Net proceeds from issuance of long-term debt	1,000	78
Payments on long-term debt	(129)	(10)
Repurchase of common shares	(197)	(130)
Net proceeds from reissuance of common shares	9	15
Cash dividends paid	(61)	(55)
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES	373	(2,094)
NET INCREASE (DECREASE) IN CASH AND DUE FROM BANKS	(147)	(208)
CASH AND DUE FROM BANKS AT BEGINNING OF PERIOD	653	617
CASH AND DUE FROM BANKS AT END OF PERIOD	506	409
Additional disclosures relative to cash flows:
Interest paid	89	103
Income taxes paid (refunded)	19	10
Noncash items:
Reduction of secured borrowing and related collateral	72	6
Loans transferred to portfolio from held for sale		2
Loans transferred to held for sale from portfolio	10	5
Loans transferred to other real estate owned	$ 7	$ 3

XML

Asset Quality - Past Due Loans Including Current Loans (Detail) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014	Mar. 31, 2014
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	$ 57,177	$ 56,619	$ 54,624
30 - 59 Days Past Due	137	147	186
60 - 89 Days Past Due	79	88	81
90 and Greater Days Past Due	111	96	89
Nonperforming Loans	437	418	449
Total Past Due and Nonperforming Loans	764	749	805
Purchased Credit Impaired	12	13	16
Total Loans	57,953	57,381	55,445
Commercial, Financial and Agricultural [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	28,603	27,858	26,071
30 - 59 Days Past Due	36	19	67
60 - 89 Days Past Due	11	14	8
90 and Greater Days Past Due	35	32	18
Nonperforming Loans	98	59	60
Total Past Due and Nonperforming Loans	180	124	153
Total Loans	28,783	27,982	26,224
Commercial Real Estate: Commercial Mortgage [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	8,080	7,981	7,806
30 - 59 Days Past Due	5	6	9
60 - 89 Days Past Due	18	10	7
90 and Greater Days Past Due	29	16	17
Nonperforming Loans	30	34	37
Total Past Due and Nonperforming Loans	82	66	70
Purchased Credit Impaired			1
Total Loans	8,162	8,047	7,877
Construction [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	1,114	1,084	987
30 - 59 Days Past Due	10	2	3
60 - 89 Days Past Due	4		5
90 and Greater Days Past Due	2	1	1
Nonperforming Loans	12	13	11
Total Past Due and Nonperforming Loans	28	16	20
Total Loans	1,142	1,100	1,007
Commercial Real Estate Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	9,194	9,065	8,793
30 - 59 Days Past Due	15	8	12
60 - 89 Days Past Due	22	10	12
90 and Greater Days Past Due	31	17	18
Nonperforming Loans	42	47	48
Total Past Due and Nonperforming Loans	110	82	90
Purchased Credit Impaired			1
Total Loans	9,304	9,147	8,884
Commercial Lease Financing [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	4,017	4,172	4,338
30 - 59 Days Past Due	9	30	15
60 - 89 Days Past Due	6	21	12
90 and Greater Days Past Due	12	11	13
Nonperforming Loans	20	18	18
Total Past Due and Nonperforming Loans	47	80	58
Total Loans	4,064	4,252	4,396
Commercial Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	41,814	41,095	39,202
30 - 59 Days Past Due	60	57	94
60 - 89 Days Past Due	39	45	32
90 and Greater Days Past Due	78	60	49
Nonperforming Loans	160	124	126
Total Past Due and Nonperforming Loans	337	286	301
Purchased Credit Impaired			1
Total Loans	42,151	41,381	39,504
Real Estate - Residential Mortgage [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	2,129	2,111	2,043
30 - 59 Days Past Due	12	12	13
60 - 89 Days Past Due	5	7	6
90 and Greater Days Past Due	2	4	3
Nonperforming Loans	72	79	105
Total Past Due and Nonperforming Loans	91	102	127
Purchased Credit Impaired	11	12	13
Total Loans	2,231	2,225	2,183
Home Equity: Key Community Bank [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	10,012	10,098	10,010
30 - 59 Days Past Due	39	46	45
60 - 89 Days Past Due	23	22	25
90 and Greater Days Past Due	13	14	11
Nonperforming Loans	182	185	188
Total Past Due and Nonperforming Loans	257	267	269
Purchased Credit Impaired	1	1	2
Total Loans	10,270	10,366	10,281
Home Equity: Other [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	238	249	296
30 - 59 Days Past Due	4	5	5
60 - 89 Days Past Due	1	2	2
90 and Greater Days Past Due	1	1	1
Nonperforming Loans	9	10	11
Total Past Due and Nonperforming Loans	15	18	19
Total Loans	253	267	315
Home Equity Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	10,250	10,347	10,306
30 - 59 Days Past Due	43	51	50
60 - 89 Days Past Due	24	24	27
90 and Greater Days Past Due	14	15	12
Nonperforming Loans	191	195	199
Total Past Due and Nonperforming Loans	272	285	288
Purchased Credit Impaired	1	1	2
Total Loans	10,523	10,633	10,596
Consumer Other - Key Community Bank [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	1,527	1,541	1,415
30 - 59 Days Past Due	8	9	8
60 - 89 Days Past Due	4	3	5
90 and Greater Days Past Due	6	5	6
Nonperforming Loans	2	2	2
Total Past Due and Nonperforming Loans	20	19	21
Total Loans	1,547	1,560	1,436
Consumer Credit Card Financing Receivable [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	708	733	671
30 - 59 Days Past Due	5	6	7
60 - 89 Days Past Due	3	4	4
90 and Greater Days Past Due	9	9	15
Nonperforming Loans	2	2	1
Total Past Due and Nonperforming Loans	19	21	27
Total Loans	727	754	698
Consumer Marine [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	707	746	928
30 - 59 Days Past Due	8	11	12
60 - 89 Days Past Due	4	5	6
90 and Greater Days Past Due	2	2	4
Nonperforming Loans	9	15	15
Total Past Due and Nonperforming Loans	23	33	37
Total Loans	730	779	965
Consumer Others [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	42	46	59
30 - 59 Days Past Due	1	1	2
60 - 89 Days Past Due			1
90 and Greater Days Past Due		1
Nonperforming Loans	1	1	1
Total Past Due and Nonperforming Loans	2	3	4
Total Loans	44	49	63
Consumer Other [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	749	792	987
30 - 59 Days Past Due	9	12	14
60 - 89 Days Past Due	4	5	7
90 and Greater Days Past Due	2	3	4
Nonperforming Loans	10	16	16
Total Past Due and Nonperforming Loans	25	36	41
Total Loans	774	828	1,028
Consumer Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	15,363	15,524	15,422
30 - 59 Days Past Due	77	90	92
60 - 89 Days Past Due	40	43	49
90 and Greater Days Past Due	33	36	40
Nonperforming Loans	277	294	323
Total Past Due and Nonperforming Loans	427	463	504
Purchased Credit Impaired	12	13	15
Total Loans	$ 15,802	$ 16,000	$ 15,941

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Securities - Cumulative Credit Portion of Impairments on Debt Securities (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015
Investments, Debt and Equity Securities [Abstract]
Cumulative Impairments on Debt Securities, Beginning Balance	$ 4
Impairment recognized in earnings	0
Cumulative Impairments on Debt Securities, Ending Balance	$ 4

XML

Acquisitions and Discontinued Operations - Components of Assets and Liabilities of Education Lending Business (Parenthetical) (Detail) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014	Mar. 31, 2014
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Unearned income on loans	$ 665	$ 682	$ 776
Maximum [Member] | Education Lending [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Unearned income on loans	$ 1	$ 1	$ 1

XML

Fair Value Measurements - Fair Value of Direct and Indirect Investments, Related Unfunded Commitments and Financial Support Provided (Parenthetical) (Detail)	3 Months Ended
	Mar. 31, 2015
Minimum [Member] | Indirect Investments [Member]
Fair Value, Estimate Not Practicable, Financial Statement Captions [Line Items]
Liquidation period of funds	1 year
Minimum [Member] | Passive Funds [Member]
Fair Value, Estimate Not Practicable, Financial Statement Captions [Line Items]
Liquidation period of funds	1 year
Minimum [Member] | Co-Managed Funds [Member]
Fair Value, Estimate Not Practicable, Financial Statement Captions [Line Items]
Liquidation period of funds	1 year
Maximum [Member] | Indirect Investments [Member]
Fair Value, Estimate Not Practicable, Financial Statement Captions [Line Items]
Liquidation period of funds	9 years
Maximum [Member] | Passive Funds [Member]
Fair Value, Estimate Not Practicable, Financial Statement Captions [Line Items]
Liquidation period of funds	4 years
Maximum [Member] | Co-Managed Funds [Member]
Fair Value, Estimate Not Practicable, Financial Statement Captions [Line Items]
Liquidation period of funds	2 years

XML

Shareholder' Equity

3 Months Ended

Mar. 31, 2015

Equity [Abstract]

Shareholder' Equity

17. Shareholders’ Equity

Comprehensive Capital Plan

During the first quarter of 2015, we completed $208 million of common share repurchases under our 2014 capital plan, which expired on March 31, 2015. On March 11, 2015, the Federal Reserve announced that it did not object to our 2015 capital plan submitted as part of the annual CCAR process. The 2015 capital plan includes a common share repurchase program of up to $725 million. Share repurchases under the capital plan have been authorized by our Board and include repurchases to offset issuances of common shares under our employee compensation plans. Common share repurchases under the 2015 capital plan, which began in the second quarter of 2015, are expected to be executed through the second quarter of 2016.

Our 2015 capital plan also proposed an increase in our quarterly common share dividend from $.065 to $.075 per share, which will be evaluated by our Board in May. An additional potential increase in our quarterly common share dividend, up to $.085 per share, will be considered by the Board in 2016 for the fifth quarter of the 2015 capital plan.

XML

Acquisitions and Discontinued Operations - Combined Assets and Liabilities of Discontinued Operations (Detail) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014	Mar. 31, 2014	Dec. 31, 2013
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Cash and due from banks	$ 506	$ 653	$ 409	$ 617
Held-to-maturity securities	5,005	5,015	4,826
Portfolio loans at fair value	187	191	143
Loans, net of unearned income	57,953	57,381	55,445
Total assets	2,246	2,324	4,427
Trust accrued expense and other liabilities at fair value	1,308	1,621	1,297
Total liabilities		3	1,819
Discontinued Operations [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Cash and due from banks	15	19	19
Held-to-maturity securities	1	1
Loans, net of unearned income	2,032	2,104	2,318
Less: Allowance for loan and lease losses	25	29	34
Net loans	2,194	2,266	4,320
Accrued income and other assets	36	38	41
Total assets	2,246	2,324	4,427
Trust securities at fair value			1,796
Total liabilities		3	1,819
Discontinued Operations [Member] | Seller Note [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Portfolio loans at fair value			28
Discontinued Operations [Member] | Trust [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Portfolio loans at fair value			1,893
Trust accrued income and other assets at fair value			19
Trust accrued expense and other liabilities at fair value			20
Accrued expense and other liabilities		3	3
Discontinued Operations [Member] | Portfolio [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Portfolio loans at fair value	$ 187	$ 191	$ 143

XML

Shareholders' Equity - Additional Information (Detail) (USD $) In Millions, except Per Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Cash dividends declared on common shares, per share	$ 0.065	$ 0.055
2015 Capital Plan [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Repurchase of common stock	$ 725
Cash dividends declared on common shares, per share	$ 0.065
Cash dividends declared on common shares, per share	$ 0.075
2014 Capital Plan [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Repurchase of common stock	$ 208
2016 [Member] | 2015 Capital Plan [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Cash dividends declared on common shares, per share	$ 0.085

XML

Contingent Liabilities and Guarantees - Guarantees (Detail) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015
Guarantor Obligations [Line Items]
Maximum Potential Undiscounted Future Payments	$ 15,116
Liability Recorded	200
Written Put Options [Member]
Guarantor Obligations [Line Items]
Maximum Potential Undiscounted Future Payments	2,139
Liability Recorded	128
Standby Letters of Credit [Member]
Guarantor Obligations [Line Items]
Maximum Potential Undiscounted Future Payments	11,426
Liability Recorded	64
Recourse Agreement with FNMA [Member]
Guarantor Obligations [Line Items]
Maximum Potential Undiscounted Future Payments	1,547
Liability Recorded	4
Return Guarantee Agreement with LIHTC Investors [Member]
Guarantor Obligations [Line Items]
Maximum Potential Undiscounted Future Payments	4
Liability Recorded	$ 4

XML

Fair Value Measurements - Assets Measured at Fair Value on Nonrecurring Basis (Parenthetical) (Detail) (Nonrecurring [Member], USD $) In Millions, unless otherwise specified	3 Months Ended		12 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Nonrecurring [Member]
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items]
Transfer of commercial and consumer loans from held-for-sale to held-to-maturity, current fair value	$ 10	$ 2	$ 11

XML

Acquisitions and Discontinued Operations (Tables)

3 Months Ended

Mar. 31, 2015

Business Combinations [Abstract]

Components of Income (Loss) from Discontinued Operations, Net of Taxes for Education Lending Business

The components of “income (loss) from discontinued operations, net of taxes” for the education lending business are as follows:

	Three months ended March 31,
in millions	2015		2014
Net interest income	$	10	$	23
Provision for credit losses		2		4
Net interest income after provision for credit losses		8		19
Noninterest income		4		(14	)
Noninterest expense		4		6
Income (loss) before income taxes		8		(1	)
Income taxes		3		—
Income (loss) from discontinued operations, net of taxes (a)	$	5	$	(1	)

(a) Includes after-tax charges of $6 million and $9 million for the three-month periods ended March 31, 2015, and March 31, 2014, respectively, determined by applying a matched funds transfer pricing methodology to the liabilities assumed necessary to support the discontinued operations.

Components of Assets and Liabilities of Education Lending Business

The discontinued assets and liabilities of our education lending business included on the balance sheet are as follows:

in millions	March 31, 2015		December 31, 2014		March 31, 2014
Held-to-maturity securities	$	1	$	1		—
Trust loans at fair value		—		—	$	1,893
Portfolio loans at fair value		187		191		143
Loans, net of unearned income (a)		2,032		2,104		2,318
Less: Allowance for loan and lease losses		25		29		34
Net loans		2,194		2,266		4,320
Trust accrued income and other assets at fair value		—		—		19
Accrued income and other assets		36		38		41
Total assets	$	2,231	$	2,305	$	4,380
Trust accrued expense and other liabilities at fair value		—		—	$	20
Trust securities at fair value		—		—		1,796
Total liabilities		—		—	$	1,816

(a) At March 31, 2015, December 31, 2014, and March 31, 2014, unearned income was less than $1 million.

Quantitative Information about Level 3 Fair Value Measurements

The following table shows the significant unobservable inputs used to measure the fair value of the education loan securitization trust loans and securities and the portfolio loans accounted for at fair value as of March 31, 2015, December 31, 2014, and March 31, 2014:

March 31, 2015 dollars in millions	Fair Value of Level 3 Assets and Liabilities		Valuation Technique	Significant Unobservable Input	Range (Weighted-Average)
Portfolio loans accounted for at fair value	$	187	Discounted cash flow	Prepayment speed		5.40 - 10.20% (7.04%)
				Loss severity		2.00 - 77.00% (27.66%)
				Discount rate		3.70 - 3.80% (3.71%)
				Default rate		1.40 - 1.70% (1.60%)
December 31, 2014 dollars in millions	Fair Value of Level 3 Assets and Liabilities		Valuation Technique	Significant Unobservable Input	Range (Weighted-Average)
Portfolio loans accounted for at fair value	$	191	Discounted cash flow	Prepayment speed		5.40 - 5.60% (5.50%)
				Loss severity		2.00 - 77.00% (25.66%)
				Discount rate		3.90 - 4.00% (3.92%)
				Default rate		.86 - 1.70% (1.12%)
March 31, 2014 dollars in millions	Fair Value of Level 3 Assets and Liabilities		Valuation Technique	Significant Unobservable Input	Range (Weighted-Average)
Trust loans and portfolio loans accounted for at fair value	$	2,036	Discounted cash flow	Prepayment speed		4.00 - 13.50% (6.62%)
				Loss severity		2.00 - 79.50% (53.89%)
				Discount rate		2.40 - 10.50% (3.51%)
				Default rate		8.05 - 23.87% (18.65%)
Trust securities		1,796	Discounted cash flow	Discount rate		1.60 - 3.50% (2.55%)

Principal and Fair Value Amounts for Trust Loans at Fair Value, Portfolio Loans at Fair Value, and Portfolio Loans at Carrying Value

The following table shows the principal and fair value amounts for our trust loans at fair value, portfolio loans at fair value, and portfolio loans at carrying value at March 31, 2015, December 31, 2014, and March 31, 2014. Our policies for determining past due loans, placing loans on nonaccrual, applying payments on nonaccrual loans, and resuming accrual of interest are disclosed in Note 1 (“Summary of Significant Accounting Policies”) under the heading “Nonperforming Loans” beginning on page 116 of our 2014 Form 10-K.

	March 31, 2015				December 31, 2014				March 31, 2014
in millions	Principal		Fair Value		Principal		Fair Value		Principal		Fair Value
Trust loans at fair value
Accruing loans past due 90 days or more		—		—		—		—	$	25	$	25
Loans placed on nonaccrual status		—		—		—		—		10		10
Portfolio loans at fair value
Accruing loans past due 90 days or more	$	5	$	5	$	5	$	5	$	7	$	7
Loans placed on nonaccrual status		—		—		—		—		—		—
Portfolio loans at carrying value
Accruing loans past due 90 days or more	$	27		N/A	$	29		N/A	$	32		N/A
Loans placed on nonaccrual status		8		N/A		11		N/A		8		N/A

Consolidated Trusts' Assets and Liabilities at Fair Value and Contractual Values

The following table shows the consolidated trusts’ assets and liabilities at fair value and the portfolio loans at fair value and their related contractual values as of March 31, 2015, December 31, 2014, and March 31, 2014.

	March 31, 2015				December 31, 2014				March 31, 2014
in millions	Contractual Amount		Fair Value		Contractual Amount		Fair Value		Contractual Amount		Fair Value
ASSETS
Portfolio loans	$	186	$	187	$	192	$	191	$	136	$	143
Trust loans		—		—		—		—		1,889		1,893
Trust other assets		—		—		—		—		19		19
LIABILITIES
Trust securities		—		—		—		—	$	1,904	$	1,796
Trust other liabilities		—		—		—		—		20		20

Consolidated Assets and Liabilities at Fair Value on Recurring Basis

The following tables present the assets and liabilities of the consolidated education loan securitization trusts measured at fair value as well as the portfolio loans that are measured at fair value on a recurring basis at March 31, 2015, December 31, 2014, and March 31, 2014.

March 31, 2015 in millions	Level 1		Level 2		Level 3		Total
ASSETS MEASURED ON A RECURRING BASIS
Portfolio loans		—		—	$	187	$	187
Total assets on a recurring basis at fair value		—		—	$	187	$	187
December 31, 2014 in millions	Level 1		Level 2		Level 3		Total
ASSETS MEASURED ON A RECURRING BASIS
Portfolio loans		—		—	$	191	$	191
Total assets on a recurring basis at fair value		—		—	$	191	$	191
March 31, 2014 in millions	Level 1		Level 2		Level 3		Total
ASSETS MEASURED ON A RECURRING BASIS
Portfolio loans		—		—	$	143	$	143
Trust loans		—		—		1,893		1,893
Trust other assets		—		—		19		19
Total assets on a recurring basis at fair value		—		—	$	2,055	$	2,055
LIABILITIES MEASURED ON A RECURRING BASIS
Trust securities		—		—	$	1,796	$	1,796
Trust other liabilities		—		—		20		20
Total liabilities on a recurring basis at fair value		—		—	$	1,816	$	1,816

Change in Fair Values of Level 3 Consolidated Education Loan Securitization Trusts and Portfolio Loans

The following table shows the change in the fair values of the Level 3 consolidated education loan securitization trusts and portfolio loans for the three-month periods ended March 31, 2015, and March 31, 2014.

in millions	Portfolio Student Loans			Trust Student Loans			Trust Other Assets			Trust Securities			Trust Other Liabilities
Balance at December 31, 2014	$	191			—			—			—			—
Gains (losses) recognized in earnings (a)		3			—			—			—			—
Purchases		—			—			—			—			—
Sales		—			—			—			—			—
Settlements		(7	)		—			—			—			—
Balance at March 31, 2015 (b)	$	187			—			—			—			—
Balance at December 31, 2013	$	147		$	1,960		$	20		$	1,834		$	20
Gains (losses) recognized in earnings (a)		—			2			—			16			—
Purchases		—			—			—			—			—
Sales		—			—			—			—			—
Settlements		(4	)		(69	)		(1	)		(54	)		—
Balance at March 31, 2014 (b)	$	143		$	1,893		$	19		$	1,796		$	20

(a) Gains (losses) were driven primarily by fair value adjustments.

(b) There were no issuances, transfers into Level 3, or transfers out of Level 3 for the three-month periods ended March 31, 2015, and March 31, 2014.

Components of Income (Loss) from Discontinued Operations, Net of Taxes

The components of “income (loss) from discontinued operations, net of taxes” for Victory, which includes the additional gain recorded as of March 31, 2014, on the sale of this business, are as follows:

	Three months ended March 31,
in millions	2015		2014
Net interest income		—	$	1
Noninterest income		—		10
Noninterest expense		—		—
Income (loss) before income taxes		—		11
Income taxes		—		4
Income (loss) from discontinued operations, net of taxes		—	$	7

The components of “income (loss) from discontinued operations, net of taxes” for Austin are as follows:

	Three months ended March 31,
in millions	2015		2014
Noninterest expense		—	$	4
Income (loss) before income taxes		—		(4	)
Income taxes		—		(2	)
Income (loss) from discontinued operations, net of taxes		—	$	(2	)

Components of Assets and Liabilities from Discontinued Operations

The discontinued assets and liabilities of Victory included on the balance sheet are as follows:

in millions	March 31, 2015		December 31, 2014		March 31, 2014
Seller note (a)		—		—	$	28
Total assets		—		—	$	28
Accrued expense and other liabilities		—		—		—
Total liabilities		—		—		—

The discontinued assets and liabilities of Austin included on the balance sheet are as follows:

in millions	March 31, 2015		December 31, 2014		March 31, 2014
Cash and due from banks	$	15	$	19	$	19
Total assets	$	15	$	19	$	19
Accrued expense and other liabilities		—	$	3	$	3
Total liabilities		—	$	3	$	3

Combined Results of Discontinued Operations

Combined discontinued operations. The combined results of the discontinued operations are as follows:

	Three months ended March 31,
in millions	2015		2014
Net interest income	$	10	$	24
Provision for credit losses		2		4
Net interest income after provision for credit losses		8		20
Noninterest income		4		(4	)
Noninterest expense		4		10
Income (loss) before income taxes		8		6
Income taxes		3		2
Income (loss) from discontinued operations, net of taxes (a)	$	5	$	4

(a) Includes after-tax charges of $6 million and $9 million for the three-month periods ended March 31, 2015, and March 31, 2014, respectively, determined by applying a matched funds transfer pricing methodology to the liabilities assumed necessary to support the discontinued operations.

Combined Assets and Liabilities of Discontinued Operations

The combined assets and liabilities of the discontinued operations are as follows:

in millions	March 31, 2015		December 31, 2014		March 31, 2014
Cash and due from banks	$	15	$	19	$	19
Held-to-maturity securities		1		1		—
Seller note		—		—		28
Trust loans at fair value		—		—		1,893
Portfolio loans at fair value		187		191		143
Loans, net of unearned income (a)		2,032		2,104		2,318
Less: Allowance for loan and lease losses		25		29		34
Net loans		2,194		2,266		4,320
Trust accrued income and other assets at fair value		—		—		19
Accrued income and other assets		36		38		41
Total assets	$	2,246	$	2,324	$	4,427
Trust accrued expense and other liabilities at fair value		—		—	$	20
Accrued expense and other liabilities		—	$	3		3
Trust securities at fair value		—		—		1,796
Total liabilities		—	$	3	$	1,819

(a) At March 31, 2015, December 31, 2014, and March 31, 2014, unearned income was less than $1 million.

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Income Taxes

3 Months Ended

Mar. 31, 2015

Income Tax Disclosure [Abstract]

Income Taxes

10. Income Taxes

Income Tax Provision

In accordance with the applicable accounting guidance, the principal method established for computing the provision for income taxes in interim periods requires us to make our best estimate of the effective tax rate expected to be applicable for the full year. This estimated effective tax rate is then applied to interim consolidated pre-tax operating income to determine the interim provision for income taxes.

The effective tax rate, which is the provision for income taxes as a percentage of income from continuing operations before income taxes, was 24.4% for the first quarter of 2015 and 27.8% for the first quarter of 2014. The effective tax rates are below our combined federal and state statutory tax rate of 37.2% primarily due to income from investments in tax-advantaged assets such as corporate-owned life insurance and credits associated with investments in low-income housing projects. In addition, during the first quarter of 2015, our effective tax rate was reduced by additional federal tax credit refunds filed for prior years.

Deferred Tax Asset

At March 31, 2015, from continuing operations, we had a net federal deferred tax asset of $88 million and a net state deferred tax asset of $13 million compared to a net federal deferred tax asset of $174 million and a net state deferred tax asset of $20 million at December 31, 2014, and a net federal deferred tax asset of $148 million and a net state deferred tax asset of $4 million at March 31, 2014, included in “accrued income and other assets” on the balance sheet. To determine the amount of deferred tax assets that are more-likely-than-not to be realized, and therefore recorded, we conduct a quarterly assessment of all available evidence. This evidence includes, but is not limited to, taxable income in prior periods, projected future taxable income, and projected future reversals of deferred tax items. These assessments involve a degree of subjectivity and may undergo change. Based on these criteria, we had a valuation allowance of less than $1 million at March 31, 2015, and at December 31, 2014, and $1 million at March 31, 2014, associated with certain state net operating loss carryforwards and state credit carryforwards.

Unrecognized Tax Benefits

As permitted under the applicable accounting guidance for income taxes, it is our policy to recognize interest and penalties related to unrecognized tax benefits in income tax expense.

Deferred tax assets were reduced in the financial statements for unrecognized tax benefits by $1 million at March 31, 2015, December 31, 2014, and March 31, 2014.

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Income Taxes - Additional Information (Detail) (USD $)	3 Months Ended		12 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Income Taxes [Line Items]
Total income tax expense (benefit), rate	24.40%	27.80%
Combined federal and state statutory tax rate	37.20%
Federal deferred tax asset	$ 88,000,000	$ 148,000,000	$ 174,000,000
State deferred tax asset	13,000,000	4,000,000	20,000,000
Valuation allowance		1,000,000
Reduction in deferred tax assets	1,000,000	1,000,000	1,000,000
Maximum [Member]
Income Taxes [Line Items]
Valuation allowance	$ 1,000,000		$ 1,000,000