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 September 30, 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	835,366,925 Shares
Title of class	Outstanding at October 29, 2015

KEYCORP

TABLE OF CONTENTS

		Page Number
Item 1.	Financial Statements
	Consolidated Balance Sheets — September 30, 2015 (Unaudited), December  31, 2014, and September 30, 2014 (Unaudited)		5
	Consolidated Statements of Income (Unaudited) — Three and nine months ended September 30, 2015, and September 30, 2014		6
	Consolidated Statements of Comprehensive Income (Unaudited) — Three and nine months ended September 30, 2015, and September 30, 2014		7
	Consolidated Statements of Changes in Equity (Unaudited) — Nine months ended September 30, 2015, and September 30, 2014		8
	Consolidated Statements of Cash Flows (Unaudited) — Nine months ended September 30, 2015, and September 30, 2014		9
	Notes to Consolidated Financial Statements (Unaudited)
	Note 1.   Basis of Presentation and Accounting Policies		10
	Note 2.   Earnings Per Common Share		15
	Note 3.   Loans and Loans Held for Sale		16
	Note 4.   Asset Quality		18
	Note 5.   Fair Value Measurements		33
	Note 6.   Securities		49
	Note 7.   Derivatives and Hedging Activities		53
	Note 8.   Mortgage Servicing Assets		61
	Note 9.   Variable Interest Entities		62
	Note 10. Income Taxes		64
	Note 11. Acquisitions and Discontinued Operations		65
	Note 12. Securities Financing Activities		73
	Note 13. Employee Benefits		75
	Note 14. Trust Preferred Securities Issued by Unconsolidated Subsidiaries		76
	Note 15. Contingent Liabilities and Guarantees		77
	Note 16. Accumulated Other Comprehensive Income		79
	Note 17. Shareholders’ Equity		82
	Note 18. Line of Business Results		83
	Note 19. Subsequent Event		87
	Report of Ernst & Young LLP, Independent Registered Public Accounting Firm		88

2

Item 2.	Management’s Discussion & Analysis of Financial Condition & Results of Operations	89
	Introduction	89
	Terminology	89
	Selected financial data	90
	Forward-looking statements	91
	Economic overview	92
	Long-term financial goals	93
	Strategic developments	93
	Demographics	94
	Supervision and regulation	95
	Highlights of Our Performance	97
	Financial performance	97
	Results of Operations	101
	Net interest income	101
	Noninterest income	104
	Noninterest expense	106
	Income taxes	108
	Line of Business Results	109
	Key Community Bank summary of operations	109
	Key Corporate Bank summary of operations	110
	Other Segments	111
	Financial Condition	112
	Loans and loans held for sale	112
	Securities	118
	Other investments	121
	Deposits and other sources of funds	121
	Capital	122
	Risk Management	126
	Overview	126
	Market risk management	127
	Liquidity risk management	132
	Credit risk management	135
	Operational and compliance risk management	142
	Critical Accounting Policies and Estimates	143
	European Sovereign and Non-Sovereign Debt Exposures	144
Item 3.	Quantitative and Qualitative Disclosure about Market Risk	145
Item 4.	Controls and Procedures	145

3

	PART II. OTHER INFORMATION
Item 1.	Legal Proceedings	145
Item 1A.	Risk Factors	145
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	146
Item 6.	Exhibits	146
	Signature	147
	Exhibits	148

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 and Accounting Policies”) that begins on page 10.

4

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

Consolidated Balance Sheets

in millions, except per share data	September 30, 2015			December 31, 2014			September 30, 2014
	(Unaudited)						(Unaudited)
ASSETS
Cash and due from banks	$	470		$	653		$	651
Short-term investments		1,964			4,269			2,342
Trading account assets		811			750			965
Securities available for sale		14,376			13,360			12,245
Held-to-maturity securities (fair value: $4,940, $4,974, and $4,911)		4,936			5,015			4,997
Other investments		691			760			822
Loans, net of unearned income of $645, $682, and $685		60,085			57,381			56,155
Less: Allowance for loan and lease losses		790			794			804
Net loans		59,295			56,587			55,351
Loans held for sale		916			734			784
Premises and equipment		771			841			832
Operating lease assets		315			330			304
Goodwill		1,060			1,057			1,051
Other intangible assets		74			101			126
Corporate-owned life insurance		3,516			3,479			3,456
Derivative assets		793			609			413
Accrued income and other assets (including $1, $1, and $1 of consolidated LIHTC guaranteed funds VIEs, see Note 9) (a)		3,348			2,952			3,024
Discontinued assets (including $169 of portfolio loans held for sale at fair value and $191 and $201 of portfolio loans at fair value, see Note 11)		2,086			2,324			2,421
Total assets	$	95,422		$	93,821		$	89,784
LIABILITIES
Deposits in domestic offices:
NOW and money market deposit accounts	$	37,301		$	34,536		$	33,941
Savings deposits		2,338			2,371			2,390
Certificates of deposit ($100,000 or more)		2,001			2,040			2,533
Other time deposits		3,020			3,259			3,338
Total interest-bearing deposits		44,660			42,206			42,202
Noninterest-bearing deposits		25,985			29,228			25,697
Deposits in foreign office — interest-bearing		428			564			557
Total deposits		71,073			71,998			68,456
Federal funds purchased and securities sold under repurchase agreements		407			575			657
Bank notes and other short-term borrowings		677			423			996
Derivative liabilities		676			784			384
Accrued expense and other liabilities (including $1, $1, and $2 of consolidated LIHTC guaranteed funds VIEs, see Note 9) (a)		1,562			1,621			1,613
Long-term debt		10,310			7,875			7,172
Discontinued liabilities		—			3			3
Total liabilities		84,705			83,279			79,281
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		3,914			3,986			3,984
Retained earnings		8,764			8,273			8,082
Treasury stock, at cost (181,685,035, 157,566,493, and 148,492,881 shares)		(3,008	)		(2,681	)		(2,563	)
Accumulated other comprehensive income (loss)		(272	)		(356	)		(325	)
Key shareholders’ equity		10,705			10,530			10,486
Noncontrolling interests		12			12			17
Total equity		10,717			10,542			10,503
Total liabilities and equity	$	95,422		$	93,821		$	89,784

(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 September 30,						Nine months ended September 30,
dollars in millions, except per share amounts	2015			2014			2015		2014
INTEREST INCOME
Loans	$	542		$	531		$	1,597	$	1,576
Loans held for sale		10			4			29		13
Securities available for sale		75			67			217		210
Held-to-maturity securities		24			25			72		70
Trading account assets		5			6			15		19
Short-term investments		1			2			5		4
Other investments		4			4			14		16
Total interest income		661			639			1,949		1,908
INTEREST EXPENSE
Deposits		27			28			79		91
Federal funds purchased and securities sold under repurchase agreements		—			1			—		2
Bank notes and other short-term borrowings		2			2			6		6
Long-term debt		41			33			118		98
Total interest expense		70			64			203		197
NET INTEREST INCOME		591			575			1,746		1,711
Provision for credit losses		45			19			121		35
Net interest income after provision for credit losses		546			556			1,625		1,676
NONINTEREST INCOME
Trust and investment services income		108			99			328		291
Investment banking and debt placement fees		109			88			318		271
Service charges on deposit accounts		68			68			192		197
Operating lease income and other leasing gains		15			17			58		81
Corporate services income		57			42			143		125
Cards and payments income		47			42			136		123
Corporate-owned life insurance income		30			26			91		80
Consumer mortgage income		3			3			10		7
Mortgage servicing fees		11			9			33		35
Net gains (losses) from principal investing		11			9			51		60
Other income (a)		11			14			35		37
Total noninterest income		470			417			1,395		1,307
NONINTEREST EXPENSE
Personnel		426			405			1,223		1,182
Net occupancy		60			66			191		198
Computer processing		41			39			121		118
Business services and professional fees		40			36			115		118
Equipment		22			25			66		73
Operating lease expense		11			11			34		31
Marketing		17			15			40		33
FDIC assessment		8			9			24		21
Intangible asset amortization		9			10			27		29
OREO expense, net		2			1			5		3
Other expense		88			89			258		251
Total noninterest expense		724			706			2,104		2,057
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		292			267			916		926
Income taxes		72			64			230		232
INCOME (LOSS) FROM CONTINUING OPERATIONS		220			203			686		694
Income (loss) from discontinued operations, net of taxes of ($2), ($10), $3, and ($24) (see Note 11)		(3	)		(17	)		5		(41	)
NET INCOME (LOSS)		217			186			691		653
Less: Net income (loss) attributable to noncontrolling interests		(2	)		—			1		6
NET INCOME (LOSS) ATTRIBUTABLE TO KEY	$	219		$	186		$	690	$	647
Income (loss) from continuing operations attributable to Key common shareholders	$	216		$	197		$	668	$	671
Net income (loss) attributable to Key common shareholders		213			180			673		630
Per common share:
Income (loss) from continuing operations attributable to Key common shareholders	$	.26		$	.23		$	.79	$	.77
Income (loss) from discontinued operations, net of taxes		—			(.02	)		.01		(.05	)
Net income (loss) attributable to Key common shareholders (b)		.26			.21			.80		.72
Per common share — assuming dilution:
Income (loss) from continuing operations attributable to Key common shareholders	$	.26		$	.23		$	.78	$	.76
Income (loss) from discontinued operations, net of taxes		—			(.02	)		.01		(.05	)
Net income (loss) attributable to Key common shareholders (b)		.25			.21			.79		.71
Cash dividends declared per common share	$	.075		$	.065		$	.215	$	.185
Weighted-average common shares outstanding (000)		831,430			867,350			839,758		875,728
Effect of convertible preferred stock		—			—			—		—
Effect of common share options and other stock awards		7,450			6,772			7,613		6,723
Weighted-average common shares and potential common shares outstanding (000) (c)		838,880			874,122			847,371		882,451

(a) For each of the three months ended September 30, 2015, and September 30, 2014, net securities gains (losses) totaled less than $1 million. For the three months ended September 30, 2015, and September 30, 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).

6

Consolidated Statements of Comprehensive Income (Unaudited)

	Three months ended September 30,						Nine months ended September 30,
in millions	2015			2014			2015			2014
Net income (loss)	$	217		$	186		$	691		$	653
Other comprehensive income (loss), net of tax:
Net unrealized gains (losses) on securities available for sale, net of income taxes of $33, ($20), $35, and $14		54			(33	)		58			24
Net unrealized gains (losses) on derivative financial instruments, net of income taxes of $28, ($6), $37, and ($3)		48			(8	)		63			(4	)
Foreign currency translation adjustments, net of income taxes of ($3), ($3), ($11), and ($3)		(5	)		(9	)		(18	)		(12	)
Net pension and postretirement benefit costs, net of income taxes of ($15), $10, ($12), and $13		(24	)		14			(19	)		19
Total other comprehensive income (loss), net of tax		73			(36	)		84			27
Comprehensive income (loss)		290			150			775			680
Less: Comprehensive income attributable to noncontrolling interests		(2	)		—			1			6
Comprehensive income (loss) attributable to Key	$	292		$	150		$	774		$	674

See Notes to Consolidated Financial Statements (Unaudited).

7

Consolidated Statements of Changes in Equity (Unaudited)

	Key Shareholders’ Equity
dollars in millions, except per share amounts	Preferred Shares Outstanding (000)			Common Shares Outstanding (000)			Preferred Stock			Common Shares		Capital Surplus			Retained Earnings			Treasury Stock, at Cost			Accumulated Other Comprehensive Income (Loss)			Noncontrolling Interests
BALANCE AT DECEMBER 31, 2013		2,905			890,724		$	291		$	1,017	$	4,022		$	7,606		$	(2,281	)	$	(352	)	$	17
Net income (loss)																647									6
Other comprehensive income (loss):
Net unrealized gains (losses) on securities available for sale, net of income taxes of $14																						24
Net unrealized gains (losses) on derivative financial instruments, net of income taxes of ($3)																						(4	)
Foreign currency translation adjustments, net of income taxes of ($3)																						(12	)
Net pension and postretirement benefit costs, net of income taxes of $13																						19
Deferred compensation
Cash dividends declared on common shares ($.185 per share)																(161	)
Cash dividends declared on Noncumulative Series A Preferred Stock ($5.8125 per share)																(17	)
Common shares repurchased					(26,499	)													(355	)
Common shares reissued (returned) for stock options and other employee benefit plans					4,252								(38	)					73
LIHTC guaranteed funds put																7
Net contribution from (distribution to) noncontrolling interests																									(6	)
BALANCE AT SEPTEMBER 30, 2014		2,905			868,477		$	291		$	1,017	$	3,984		$	8,082		$	(2,563	)	$	(325	)	$	17
BALANCE AT DECEMBER 31, 2014		2,905			859,403		$	291		$	1,017	$	3,986		$	8,273		$	(2,681	)	$	(356	)	$	12
Net income (loss)																690									1
Other comprehensive income (loss):
Net unrealized gains (losses) on securities available for sale, net of income taxes of $35																						58
Net unrealized gains (losses) on derivative financial instruments, net of income taxes of $37																						63
Foreign currency translation adjustments, net of income taxes of ($11)																						(18	)
Net pension and postretirement benefit costs, net of income taxes of ($12)																						(19	)
Deferred compensation													13
Cash dividends declared on common shares ($.215 per share)																(182	)
Cash dividends declared on Noncumulative Series A Preferred Stock ($5.8125 per share)																(17	)
Common shares repurchased					(31,267	)													(448	)
Series A Preferred Stock exchanged for common shares		(5	)		33			(1	)										1
Common shares reissued (returned) for stock options and other employee benefit plans					7,116								(85	)					120
Net contribution from (distribution to) noncontrolling interests																									(1	)
BALANCE AT SEPTEMBER 30, 2015		2,900			835,285		$	290		$	1,017	$	3,914		$	8,764		$	(3,008	)	$	(272	)	$	12

See Notes to Consolidated Financial Statements (Unaudited).

8

Consolidated Statements of Cash Flows (Unaudited)

	Nine months ended September 30,
in millions	2015			2014
OPERATING ACTIVITIES
Net income (loss)	$	691		$	653
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Provision for credit losses		121			35
Provision (credit) for losses on LIHTC guaranteed funds		—			(6	)
Depreciation, amortization and accretion expense, net		176			185
Increase in cash surrender value of corporate-owned life insurance		(75	)		(73	)
Stock-based compensation expense		47			31
FDIC reimbursement (payments), net of FDIC expense		(1	)		1
Deferred income taxes (benefit)		(70	)		(29	)
Proceeds from sales of loans held for sale		5,362			2,832
Originations of loans held for sale, net of repayments		(5,428	)		(2,951	)
Net losses (gains) on sales of loans held for sale		(75	)		(59	)
Net losses (gains) from principal investing		(51	)		(60	)
Net losses (gains) and writedown on OREO		2			3
Net losses (gains) on leased equipment		(8	)		(35	)
Net securities losses (gains)		1			—
Net losses (gains) on sales of fixed assets		6			5
Gain on sale of Victory		—			(10	)
Loss on sale of residual interests and deconsolidation of securitization trusts		—			40
Net decrease (increase) in trading account assets		(61	)		(227	)
Other operating activities, net		(388	)		130
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES		249			465
INVESTING ACTIVITIES
Cash received (used) in acquisitions, net of cash acquired		—			(113	)
Proceeds from sale of residual interests		—			57
Proceeds from sale of Victory		—			10
Net decrease (increase) in short-term investments, excluding acquisitions		2,305			3,285
Purchases of securities available for sale		(3,314	)		(1,993	)
Proceeds from sales of securities available for sale		11			—
Proceeds from prepayments and maturities of securities available for sale		2,357			2,123
Proceeds from prepayments and maturities of held-to-maturity securities		846			628
Purchases of held-to-maturity securities		(770	)		(869	)
Purchases of other investments		(24	)		(42	)
Proceeds from sales of other investments		107			266
Proceeds from prepayments and maturities of other investments		2			3
Net decrease (increase) in loans, excluding acquisitions, sales and transfers		(3,061	)		(1,936	)
Proceeds from sales of portfolio loans		89			91
Proceeds from corporate-owned life insurance		38			24
Purchases of premises, equipment, and software		(40	)		(53	)
Proceeds from sales of premises and equipment		1			1
Proceeds from sales of OREO		16			13
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES		(1,437	)		1,495
FINANCING ACTIVITIES
Net increase (decrease) in deposits, excluding acquisitions		(925	)		(806	)
Net increase (decrease) in short-term borrowings		86			(224	)
Net proceeds from issuance of long-term debt		4,054			648
Payments on long-term debt		(1,582	)		(1,034	)
Repurchase of common shares		(448	)		(355	)
Net proceeds from reissuance of common shares		19			23
Cash dividends paid		(199	)		(178	)
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES		1,005			(1,926	)
NET INCREASE (DECREASE) IN CASH AND DUE FROM BANKS		(183	)		34
CASH AND DUE FROM BANKS AT BEGINNING OF PERIOD		653			617
CASH AND DUE FROM BANKS AT END OF PERIOD	$	470		$	651
Additional disclosures relative to cash flows:
Interest paid	$	221		$	250
Income taxes paid (refunded)		173			109
Noncash items:
Reduction of secured borrowing and related collateral	$	132		$	78
Loans transferred to portfolio from held for sale		1			10
Loans transferred to held for sale from portfolio		41			5
Loans transferred to OREO		16			16
LIHTC guaranteed funds put		—			7
Assets acquired		—			35
Liabilities assumed		—			22

See Notes to Consolidated Financial Statements (Unaudited).

9

Notes to Consolidated Financial Statements (Unaudited)

1. Basis of Presentation and Accounting Policies

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, which was filed with the U.S. Securities and Exchange Commission and is available on its website (www.sec.gov) and on our website (www.key.com/ir).

AICPA: American Institute of Certified Public Accountants.	KREEC: Key Real Estate Equity Capital, Inc.
ALCO: Asset/Liability Management Committee.	LCR: Liquidity coverage ratio.
ALLL: Allowance for loan and lease losses.	LIBOR: London Interbank Offered Rate.
A/LM: Asset/liability management.	LIHTC: Low-income housing tax credit.
AOCI: Accumulated other comprehensive income (loss).	Moody’s: Moody’s Investor Services, Inc.
APBO: Accumulated postretirement benefit obligation.	MRM: Market Risk Management group.
Austin: Austin Capital Management, Ltd.	N/A: Not applicable.
BHCs: Bank holding companies.	NASDAQ: The NASDAQ Stock Market LLC.
Board: KeyCorp Board of Directors.	N/M: Not meaningful.
CCAR: Comprehensive Capital Analysis and Review.	NOW: Negotiable Order of Withdrawal.
CMBS: Commercial mortgage-backed securities.	NYSE: New York Stock Exchange.
CMO: Collateralized mortgage obligation.	OCC: Office of the Comptroller of the Currency.
Common shares: KeyCorp common shares, $1 par value.	OCI: Other comprehensive income (loss).
Dodd-Frank Act: Dodd-Frank Wall Street Reform and	OREO: Other real estate owned.
Consumer Protection Act of 2010.	OTTI: Other-than-temporary impairment.
EBITDA: Earnings before interest, taxes, depreciation, and	PBO: Projected benefit obligation.
amortization.	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 and 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
FHLB: Federal Home Loan Bank of Cincinnati.	and nonbank financial companies designated by FSOC for
FHLMC: Federal Home Loan Mortgage Corporation.	supervision by the Federal Reserve.
FNMA: Federal National Mortgage Association, or Fannie Mae.	TDR: Troubled debt restructuring.
FSOC: Financial Stability Oversight Council.	TE: Taxable-equivalent.
GAAP: U.S. generally accepted accounting principles.	U.S. Treasury: United States Department of the Treasury.
GNMA: Government National Mortgage Association.	VaR: Value at risk.
ISDA: International Swaps and Derivatives Association.	VEBA: Voluntary Employee Beneficiary Association.
KAHC: Key Affordable Housing Corporation.	Victory: Victory Capital Management and/or
KBCM: KeyBanc Capital Markets, Inc.	Victory Capital Advisors.
KCDC: Key Community Development Corporation.	VIE: Variable interest entity.
KEF: Key Equipment Finance.

10

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”).

Allowance for Loan and Lease Losses

In the third quarter of 2015, we enhanced the approach used to determine the commercial reserve factors used in estimating the commercial ALLL, which had the effect of capturing certain elements in the commercial quantitative reserve component that had formerly been included in the commercial qualitative component. Under the enhanced methodology, we began utilizing more refined commercial estimated loss rates that represent cumulative losses over the estimated average time period from the onset of credit deterioration to the initial loss recorded for an individual loan. In addition, we began utilizing an enhanced framework to quantify commercial ALLL adjustments resulting from qualitative factors that may not be fully captured within the statistical analysis of incurred loss. The impact of these changes was largely neutral to the total ALLL at September 30, 2015. However, because the quantitative reserve is allocated to the business segments at a loan level, while the qualitative portion is allocated at the portfolio level, the impact of the methodology enhancements on the allowance for each business segment and each portfolio caused the business segment and commercial portfolio reserves to increase or decrease accordingly. The impact of the increases and decreases on the business segment and commercial portfolio reserves was not significant.

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.

11

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 has been presented 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.

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 September 30, 2015

Business combinations. In September 2015, the FASB issued new accounting guidance that obligates an acquirer in a business combination to recognize adjustments to provisional amounts in the reporting period that the amounts were determined, eliminating the requirement for retrospective adjustments. The acquirer should record in the current period any income effects that resulted from the change in provisional amounts, calculated as if the accounting were completed at the acquisition date. 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 the 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.

Fair value measurement. In May 2015, the FASB issued new disclosure guidance that eliminates the requirement to categorize investments measured using the net asset value practical expedient in the fair value hierarchy table. Entities will be required to disclose the fair value of investments measured using the net asset value practical expedient so that financial statement users can reconcile amounts reported in the fair value hierarchy table to amounts reported on the balance sheet. This disclosure will be presented for interim and annual reporting periods beginning after December 15, 2015 (March 31, 2016, for us) on a retrospective basis. Early adoption is permitted. The adoption of this disclosure guidance will not affect our financial condition or results of operations.

12

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. We have elected to implement this new accounting guidance using a prospective approach. 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. 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. 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. We have elected to implement this new accounting guidance using a prospective approach. The adoption of this accounting guidance is not expected to have a material effect on our financial condition or results of operations.

13

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 can be implemented using either a retrospective method or a cumulative-effect approach. In August 2015, the FASB issued an update that defers the effective date of the revenue recognition guidance by one year. This new guidance will be effective for interim and annual reporting periods beginning after December 15, 2017 (effective January 1, 2018, for us). Early adoption is permitted but only for interim and annual reporting periods beginning after December 15, 2016. 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 the FASB has recently issued and proposed updates to certain aspects of the guidance. 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 September 30,						Nine months ended September 30,
dollars in millions, except per share amounts	2015			2014			2015		2014
EARNINGS
Income (loss) from continuing operations	$	220		$	203		$	686	$	694
Less: Net income (loss) attributable to noncontrolling interests		(2	)		—			1		6
Income (loss) from continuing operations attributable to Key		222			203			685		688
Less: Dividends on Series A Preferred Stock		6			6			17		17
Income (loss) from continuing operations attributable to Key common shareholders		216			197			668		671
Income (loss) from discontinued operations, net of taxes (a)		(3	)		(17	)		5		(41	)
Net income (loss) attributable to Key common shareholders	$	213		$	180		$	673	$	630
WEIGHTED-AVERAGE COMMON SHARES
Weighted-average common shares outstanding (000)		831,430			867,350			839,758		875,728
Effect of convertible preferred stock		—			—			—		—
Effect of common share options and other stock awards		7,450			6,772			7,613		6,723
Weighted-average common shares and potential common shares outstanding (000) (b)		838,880			874,122			847,371		882,451
EARNINGS PER COMMON SHARE
Income (loss) from continuing operations attributable to Key common shareholders	$	.26		$	.23		$	.79	$	.77
Income (loss) from discontinued operations, net of taxes (a)		—			(.02	)		.01		(.05	)
Net income (loss) attributable to Key common shareholders (c)		.26			.21			.80		.72
Income (loss) from continuing operations attributable to Key common shareholders — assuming dilution	$	.26		$	.23		$	.78	$	.76
Income (loss) from discontinued operations, net of taxes (a)		—			(.02	)		.01		(.05	)
Net income (loss) attributable to Key common shareholders — assuming dilution (c)		.25			.21			.79		.71

(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	September 30, 2015		December 31, 2014		September 30, 2014
Commercial, financial and agricultural (a)	$	31,095	$	27,982	$	26,683
Commercial real estate:
Commercial mortgage		8,180		8,047		8,276
Construction		1,070		1,100		1,036
Total commercial real estate loans		9,250		9,147		9,312
Commercial lease financing (b)		3,929		4,252		4,135
Total commercial loans		44,274		41,381		40,130
Residential — prime loans:
Real estate — residential mortgage		2,267		2,225		2,213
Home equity:
Key Community Bank		10,282		10,366		10,380
Other		222		267		283
Total home equity loans		10,504		10,633		10,663
Total residential — prime loans		12,771		12,858		12,876
Consumer other — Key Community Bank		1,612		1,560		1,546
Credit cards		770		754		724
Consumer other:
Marine		620		779		828
Other		38		49		51
Total consumer other		658		828		879
Total consumer loans		15,811		16,000		16,025
Total loans (c) (d)	$	60,085	$	57,381	$	56,155

(a) Loan balances include $88 million, $88 million, and $90 million of commercial credit card balances at September 30, 2015, December 31, 2014, and September 30, 2014, respectively.

(b) Commercial lease financing includes receivables held as collateral for a secured borrowing of $162 million, $302 million, and $367 million at September 30, 2015, December 31, 2014, and September 30, 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 September 30, 2015, total loans include purchased loans of $119 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 September 30, 2014, total loans include purchased loans of $143 million, of which $14 million were PCI loans.

(d) Total loans exclude loans of $1.9 billion at September 30, 2015, $2.3 billion at December 31, 2014, and $2.4 billion at September 30, 2014, related to the discontinued operations of the education lending business. Additional information pertaining to these loans is provided in Note 11 (“Acquisitions and Discontinued Operations”).

Our loans held for sale are summarized as follows:

in millions	September 30, 2015		December 31, 2014		September 30, 2014
Commercial, financial and agricultural	$	74	$	63	$	30
Real estate — commercial mortgage		806		638		725
Commercial lease financing		10		15		10
Real estate — residential mortgage		26		18		19
Total loans held for sale (a)	$	916	$	734	$	784

(a) Total loans held for sale exclude loans held for sale of $169 million at September 30, 2015, related to the discontinued operations of the education lending business. Additional information pertaining to these loans is provided in Note 11.

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

in millions	September 30, 2015			December 31, 2014			September 30, 2014
Balance at beginning of the period	$	835		$	784		$	435
New originations		1,673			2,465			1,593
Transfers from (to) held to maturity, net		24			2			—
Loan sales		(1,616	)		(2,516	)		(1,243	)
Loan draws (payments), net		—			(1	)		(1	)
Balance at end of period (a)	$	916		$	734		$	784

(a) Total loans held for sale exclude loans held for sale of $169 million at September 30, 2015, related to the discontinued operations of the education lending business. Additional information pertaining to these loans is provided in Note 11.

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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.

Nonperforming loans are loans for which we do not accrue interest income, and include commercial and consumer loans and leases, as well as current year TDRs and nonaccruing TDR loans from prior years. Nonperforming loans do not include loans held for sale or PCI loans. Nonperforming assets include nonperforming loans, nonperforming loans held for sale, OREO, and other nonperforming assets.

Our nonperforming assets and past due loans were as follows:

in millions	September 30, 2015		December 31, 2014		September 30, 2014
Total nonperforming loans (a), (b)	$	400	$	418	$	401
Nonperforming loans held for sale		—		—		—
OREO (c)		17		18		16
Other nonperforming assets		—		—		1
Total nonperforming assets	$	417	$	436	$	418
Nonperforming assets from discontinued operations—education lending (d)	$	8	$	11	$	9
Restructured loans included in nonperforming loans	$	159	$	157	$	137
Restructured loans with an allocated specific allowance (e)		71		82		115
Specifically allocated allowance for restructured loans (f)		29		34		30
Accruing loans past due 90 days or more	$	54	$	96	$	71
Accruing loans past due 30 through 89 days		271		235		340

(a) Loan balances exclude $12 million, $13 million, and $14 million of PCI loans at September 30, 2015, December 31, 2014, and September 30, 2014, respectively.

(b) Includes carrying value of consumer residential mortgage loans in the process of foreclosure of approximately $114 million at September 30, 2015.

(c) Includes carrying value of foreclosed residential real estate of approximately $13 million at September 30, 2015.

(d) Restructured loans of approximately $20 million, $17 million, and $16 million are included in discontinued operations at September 30, 2015, December 31, 2014, and September 30, 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 2012 acquisition date, 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 September 30, 2015, the outstanding unpaid principal balance and carrying value of all PCI loans was $18 million and $12 million, respectively. Changes in the accretable yield during the first nine months of 2015 included accretion and net reclassifications of less than $1 million, resulting in an ending balance of $5 million at September 30, 2015.

At September 30, 2015, the approximate carrying amount of our commercial nonperforming loans outstanding represented 74% of their original contractual amount owed, total nonperforming loans outstanding represented 79% of their original contractual amount owed, and nonperforming assets in total were carried at 79% of their original contractual amount owed.

At September 30, 2015, our 20 largest nonperforming loans totaled $112 million, representing 28% of total loans on nonperforming status. At September 30, 2014, our 20 largest nonperforming loans totaled $72 million, representing 18% of total loans on nonperforming status.

18

Nonperforming loans and loans held for sale reduced expected interest income by $12 million for the nine months ended September 30, 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 September 30, 2015, December 31, 2014, and September 30, 2014:

			Unpaid				Average
September 30, 2015	Recorded		Principal		Specific		Recorded
in millions	Investment (a)		Balance (b)		Allowance		Investment
With no related allowance recorded:
Commercial, financial and agricultural	$	30	$	54		—	$	19
Commercial real estate:
Commercial mortgage		9		12		—		10
Construction		5		5		—		6
Total commercial real estate loans		14		17		—		16
Total commercial loans		44		71		—		35
Real estate — residential mortgage		22		22		—		22
Home equity:
Key Community Bank		58		58		—		59
Other		2		2		—		2
Total home equity loans		60		60		—		61
Consumer other:
Marine		1		1		—		1
Total consumer other		1		1		—		1
Total consumer loans		83		83		—		84
Total loans with no related allowance recorded		127		154		—		119
With an allowance recorded:
Commercial, financial and agricultural		43		56	$	9		58
Commercial real estate:
Commercial mortgage		5		6		1		6
Total commercial real estate loans		5		6		1		6
Total commercial loans		48		62		10		64
Real estate — residential mortgage		33		33		5		33
Home equity:
Key Community Bank		54		54		17		53
Other		10		10		1		10
Total home equity loans		64		64		18		63
Consumer other — Key Community Bank		3		3		—		3
Credit cards		3		3		1		3
Consumer other:
Marine		38		38		2		39
Other		2		2		—		2
Total consumer other		40		40		2		41
Total consumer loans		143		143		26		143
Total loans with an allowance recorded		191		205		36		207
Total	$	318	$	359	$	36	$	326

(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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			Unpaid				Average
December 31, 2014	Recorded		Principal		Specific		Recorded
in millions	Investment (a)		Balance (b)		Allowance		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.

20

			Unpaid				Average
September 30, 2014	Recorded		Principal		Specific		Recorded
in millions	Investment (a)		Balance (b)		Allowance		Investment
With no related allowance recorded:
Commercial, financial and agricultural	$	11	$	20		—	$	12
Commercial real estate:
Commercial mortgage		22		27		—		23
Construction		9		20		—		7
Total commercial real estate loans		31		47		—		30
Total commercial loans		42		67		—		42
Real estate — residential mortgage		36		36		—		30
Home equity:
Key Community Bank		64		64		—		65
Other		2		2		—		2
Total home equity loans		66		66		—		67
Consumer other:
Marine		2		2		—		2
Total consumer other		2		2		—		2
Total consumer loans		104		104		—		99
Total loans with no related allowance recorded		146		171		—		141
With an allowance recorded:
Commercial, financial and agricultural		20		21	$	7		12
Commercial real estate:
Commercial mortgage		7		7		2		5
Total commercial real estate loans		7		7		2		5
Total commercial loans		27		28		9		17
Real estate — residential mortgage		19		19		4		24
Home equity:
Key Community Bank		41		41		16		39
Other		11		11		2		11
Total home equity loans		52		52		18		50
Consumer other — Key Community Bank		3		3		—		3
Credit cards		3		3		1		3
Consumer other:
Marine		46		46		5		47
Other		2		2		1		2
Total consumer other		48		48		6		49
Total consumer loans		125		125		29		129
Total loans with an allowance recorded		152		153		38		146
Total	$	298	$	324	$	38	$	287

(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 each of the nine months ended September 30, 2015, and September 30, 2014, interest income recognized on the outstanding balances of accruing impaired loans totaled $5 million.

At September 30, 2015, aggregate restructured loans (accrual and nonaccrual loans) totaled $287 million, compared to $270 million at December 31, 2014, and $264 million at September 30, 2014. We added $87 million in restructured loans during the first nine months of 2015, which were partially offset by $70 million in payments and charge-offs.

21

A further breakdown of TDRs included in nonperforming loans by loan category as of September 30, 2015, follows:

			Pre-modification		Post-modification
			Outstanding		Outstanding
September 30, 2015	Number		Recorded		Recorded
dollars in millions	of Loans		Investment		Investment
LOAN TYPE
Nonperforming:
Commercial, financial and agricultural		12	$	56	$	50
Commercial real estate:
Real estate — commercial mortgage		11		30		7
Total commercial real estate loans		11		30		7
Total commercial loans		23		86		57
Real estate — residential mortgage		356		21		21
Home equity:
Key Community Bank		1,093		79		70
Other		122		3		3
Total home equity loans		1,215		82		73
Consumer other — Key Community Bank		26		1		1
Credit cards		314		2		2
Consumer other:
Marine		92		6		5
Other		16		—		—
Total consumer other		108		6		5
Total consumer loans		2,019		112		102
Total nonperforming TDRs		2,042		198		159
Prior-year accruing: (a)
Commercial, financial and agricultural		12		6		3
Commercial real estate:
Real estate — commercial mortgage		1		2		1
Total commercial real estate loans		1		2		1
Total commercial loans		13		8		4
Real estate — residential mortgage		499		36		36
Home equity:
Key Community Bank		794		49		42
Other		327		10		8
Total home equity loans		1,121		59		50
Consumer other — Key Community Bank		45		2		1
Credit cards		473		2		2
Consumer other:
Marine		398		59		33
Other		68		2		2
Total consumer other		466		61		35
Total consumer loans		2,604		160		124
Total prior-year accruing TDRs		2,617		168		128
Total TDRs		4,659	$	366	$	287

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

22

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

			Pre-modification		Post-modification
			Outstanding		Outstanding
December 31, 2014	Number		Recorded		Recorded
dollars in millions	of Loans		Investment		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.

23

A further breakdown of TDRs included in nonperforming loans by loan category as of September 30, 2014, follows:

			Pre-modification		Post-modification
			Outstanding		Outstanding
September 30, 2014	Number		Recorded		Recorded
dollars in millions	of Loans		Investment		Investment
LOAN TYPE
Nonperforming:
Commercial, financial and agricultural		20	$	16	$	9
Commercial real estate:
Real estate — commercial mortgage		12		39		14
Real estate — construction		3		15		1
Total commercial real estate loans		15		54		15
Total commercial loans		35		70		24
Real estate — residential mortgage		464		28		28
Home equity:
Key Community Bank		1,125		70		64
Other		133		4		4
Total home equity loans		1,258		74		68
Consumer other — Key Community Bank		31		1		1
Credit cards		156		1		1
Consumer other:
Marine		211		16		14
Other		40		1		1
Total consumer other		251		17		15
Total consumer loans		2,160		121		113
Total nonperforming TDRs		2,195		191		137
Prior-year accruing: (a)
Commercial, financial and agricultural		25		6		3
Commercial real estate:
Real estate — commercial mortgage		4		18		8
Total commercial real estate loans		4		18		8
Total commercial loans		29		24		11
Real estate — residential mortgage		359		28		28
Home equity:
Key Community Bank		731		45		40
Other		325		10		8
Total home equity loans		1,056		55		48
Consumer other — Key Community Bank		53		2		2
Credit cards		564		4		3
Consumer other:
Marine		402		58		34
Other		72		2		1
Total consumer other		474		60		35
Total consumer loans		2,506		149		116
Total prior-year accruing TDRs		2,535		173		127
Total TDRs		4,730	$	364	$	264

(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.

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 three months ended September 30, 2015, there were no significant commercial loan TDRs, and 61 consumer loan TDRs with a combined recorded investment of $3 million that experienced payment defaults from modifications resulting in TDR status during 2014. During the three months ended September 30, 2014, there were no significant commercial loan TDRs, and 93 consumer loan TDRs with a combined recorded investment of $4 million that 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.

24

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’ debts 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.

in millions	September 30, 2015		December 31, 2014		September 30, 2014
Commercial loans:
Interest rate reduction	$	58	$	13	$	24
Forgiveness of principal		2		2		5
Other		1		25		6
Total	$	61	$	40	$	35
Consumer loans:
Interest rate reduction	$	139	$	140	$	140
Forgiveness of principal		4		4		4
Other		83		86		85
Total	$	226	$	230	$	229
Total commercial and consumer TDRs (a)	$	287	$	270	$	264
Total loans		60,085		57,381		56,155

(a) Commitments outstanding to lend additional funds to borrowers whose loan terms have been modified in TDRs are $8 million, $5 million, and $1 million at September 30, 2015, December 31, 2014, and September 30, 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 September 30, 2015, approximately $59.3 billion, or 98.8%, of our total loans were current, compared to $56.6 billion, or 98.7%, at December 31, 2014, and $55.3 billion, or 98.5%, at September 30, 2014. At September 30, 2015, total past due loans and nonperforming loans of $724 million represented approximately 1.2% of total loans, compared to $749 million, or 1.3%, at December 31, 2014, and $813 million, or 1.5% at September 30, 2014.

25

The following aging analysis of past due and current loans as of September 30, 2015, December 31, 2014, and September 30, 2014, provides further information regarding Key’s credit exposure.

							90 and				Total Past
			30-59		60-89		Greater				Due and		Purchased
September 30, 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	$	30,901	$	58	$	30	$	17	$	89	$	194		—	$	31,095
Commercial real estate:
Commercial mortgage		8,127		18		7		5		23		53		—		8,180
Construction		1,060		1		—		—		9		10		—		1,070
Total commercial real estate loans		9,187		19		7		5		32		63		—		9,250
Commercial lease financing		3,875		29		3		1		21		54		—		3,929
Total commercial loans	$	43,963	$	106	$	40	$	23	$	142	$	311		—	$	44,274
Real estate — residential mortgage	$	2,171	$	11	$	4	$	3	$	67	$	85	$	11	$	2,267
Home equity:
Key Community Bank		10,027		49		20		11		174		254		1		10,282
Other		208		4		2		1		7		14		—		222
Total home equity loans		10,235		53		22		12		181		268		1		10,504
Consumer other — Key Community Bank		1,595		7		4		5		1		17		—		1,612
Credit cards		750		6		4		8		2		20		—		770
Consumer other:
Marine		601		10		2		1		6		19		—		620
Other		34		1		1		1		1		4		—		38
Total consumer other		635		11		3		2		7		23		—		658
Total consumer loans	$	15,386	$	88	$	37	$	30	$	258	$	413	$	12	$	15,811
Total loans	$	59,349	$	194	$	77	$	53	$	400	$	724	$	12	$	60,085
							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

26

							90 and				Total Past
			30-59		60-89		Greater				Due and		Purchased
September 30, 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	$	26,534	$	50	$	34	$	18	$	47	$	149		—	$	26,683
Commercial real estate:
Commercial mortgage		8,201		17		7		9		41		74	$	1		8,276
Construction		1,017		3		2		—		14		19		—		1,036
Total commercial real estate loans		9,218		20		9		9		55		93		1		9,312
Commercial lease financing		4,017		74		24		6		14		118		—		4,135
Total commercial loans	$	39,769	$	144	$	67	$	33	$	116	$	360	$	1	$	40,130
Real estate — residential mortgage	$	2,091	$	17	$	7	$	5	$	81	$	110	$	12	$	2,213
Home equity:
Key Community Bank		10,124		46		19		16		174		255		1		10,380
Other		266		4		2		1		10		17		—		283
Total home equity loans		10,390		50		21		17		184		272		1		10,663
Consumer other — Key Community Bank		1,528		7		3		6		2		18		—		1,546
Credit cards		705		5		4		9		1		19		—		724
Consumer other:
Marine		796		11		4		1		16		32		—		828
Other		49		1		—		—		1		2		—		51
Total consumer other		845		12		4		1		17		34		—		879
Total consumer loans	$	15,559	$	91	$	39	$	38	$	285	$	453	$	13	$	16,025
Total loans	$	55,328	$	235	$	106	$	71	$	401	$	813	$	14	$	56,155

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 $14 million of PCI loans at September 30, 2015, and September 30, 2014, respectively, based on bond rating, regulatory classification, and payment activity as of September 30, 2015, and September 30, 2014, are as follows:

27

Commercial Credit Exposure

Credit Risk Profile by Creditworthiness Category ^(a)

September 30,
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	$	384	$	342	$	3	$	2		—	$	1	$	501	$	528	$	888	$	873
A		1,439		1,147		4		2		—		—		478		596		1,921		1,745
BBB — BB		27,438		23,822		7,690		7,736	$	935		895		2,808		2,848		38,871		35,301
B		639		594		272		298		89		100		88		75		1,088		1,067
CCC — C		1,195		778		211		238		46		40		54		88		1,506		1,144
Total	$	31,095	$	26,683	$	8,180	$	8,276	$	1,070	$	1,036	$	3,929	$	4,135	$	44,274	$	40,130

(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)}

September 30,
in millions
	Residential — Prime
GRADE	2015		2014
Pass	$	12,496	$	12,576
Substandard		263		287
Total	$	12,759	$	12,863

Credit Risk Profile Based on Payment Activity ^(a)

September 30,	Consumer — Key Community Bank				Credit cards				Consumer — Marine				Consumer — Other				Total
in millions	2015		2014		2015		2014		2015		2014		2015		2014		2015		2014
Performing	$	1,611	$	1,544	$	768	$	723	$	614	$	812	$	37	$	50	$	3,030	$	3,129
Nonperforming		1		2		2		1		6		16		1		1		10		20
Total	$	1,612	$	1,546	$	770	$	724	$	620	$	828	$	38	$	51	$	3,040	$	3,149

(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 qualitative 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.

In the third quarter of 2015, we enhanced the approach used to determine the commercial reserve factors used in estimating the commercial ALLL, which had the effect of capturing certain elements in the commercial quantitative reserve component that had formerly been included in the commercial qualitative component. Under the enhanced methodology, we began utilizing more refined commercial estimated loss rates that represent cumulative losses over the estimated average time period from the onset of credit deterioration to the initial loss recorded for an individual loan. In addition, we began utilizing an enhanced framework to quantify commercial ALLL adjustments resulting from qualitative factors that may not be fully captured within the statistical analysis of incurred loss. The impact of these changes was largely neutral to the total ALLL at September 30, 2015. However, because the quantitative reserve is allocated to the business segments at a loan level, while the qualitative portion is allocated at the portfolio level, the impact of the methodology enhancements on the allowance for each portfolio caused the commercial portfolio ALLL to increase or decrease accordingly. The impact of the increases and decreases on the commercial portfolio ALLL was not significant.

28

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 September 30, 2015, represents our best estimate of the probable credit losses inherent in the loan portfolio at that date.

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. Consumer loans generally are charged off when payments are 120 days past due. Home equity and residential mortgage loans generally are charged down to net realizable value 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 September 30, 2015, the ALLL was $790 million, or 1.31% of loans, compared to $804 million, or 1.43% of loans, at September 30, 2014. At September 30, 2015, the ALLL was 197.5% of nonperforming loans, compared to 200.5% at September 30, 2014.

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

	Three months ended September 30,						Nine months ended September 30,
in millions	2015			2014			2015			2014
Balance at beginning of period — continuing operations	$	796		$	814		$	794		$	848
Charge-offs		(53	)		(49	)		(152	)		(162	)
Recoveries		12			18			47			81
Net loans and leases charged off		(41	)		(31	)		(105	)		(81	)
Provision for loan and lease losses from continuing operations		36			21			102			37
Foreign currency translation adjustment		(1	)		—			(1	)		—
Balance at end of period — continuing operations	$	790		$	804		$	790		$	804

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

in millions	December 31, 2014		Provision			Charge-offs			Recoveries		September 30, 2015
Commercial, financial and agricultural	$	391	$	93		$	(59	)	$	13	$	438
Real estate — commercial mortgage		148		(9	)		(2	)		2		139
Real estate — construction		28		(3	)		(1	)		1		25
Commercial lease financing		56		(13	)		(5	)		7		45
Total commercial loans		623		68			(67	)		23		647
Real estate — residential mortgage		23		(1	)		(4	)		1		19
Home equity:
Key Community Bank		66		4			(21	)		5		54
Other		5		(1	)		(4	)		4		4
Total home equity loans		71		3			(25	)		9		58
Consumer other — Key Community Bank		22		11			(18	)		5		20
Credit cards		33		20			(23	)		2		32
Consumer other:
Marine		21		—			(14	)		6		13
Other		1		—			(1	)		1		1
Total consumer other:		22		—			(15	)		7		14
Total consumer loans		171		33			(85	)		24		143
Total ALLL — continuing operations		794		101	(a)		(152	)		47		790
Discontinued operations		29		9			(25	)		10		23
Total ALLL — including discontinued operations	$	823	$	110		$	(177	)	$	57	$	813

(a) Includes a $1 million foreign currency translation adjustment. Excludes a provision for losses on lending-related commitments of $19 million.

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in millions	December 31, 2013		Provision			Charge-offs			Recoveries		September 30, 2014
Commercial, financial and agricultural	$	362	$	32		$	(35	)	$	27	$	386
Real estate — commercial mortgage		165		(7	)		(3	)		4		159
Real estate — construction		32		(16	)		(4	)		16		28
Commercial lease financing		62		(9	)		(6	)		8		55
Total commercial loans		621		—			(48	)		55		628
Real estate — residential mortgage		37		(10	)		(7	)		2		22
Home equity:
Key Community Bank		84		9			(29	)		7		71
Other		11		(1	)		(8	)		4		6
Total home equity loans		95		8			(37	)		11		77
Consumer other — Key Community Bank		29		14			(23	)		4		24
Credit cards		34		24			(27	)		1		32
Consumer other:
Marine		29		1			(18	)		7		19
Other		3		—			(2	)		1		2
Total consumer other:		32		1			(20	)		8		21
Total consumer loans		227		37			(114	)		26		176
Total ALLL — continuing operations		848		37	(a)		(162	)		81		804
Discontinued operations		39		15			(34	)		11		31
Total ALLL — including discontinued operations	$	887	$	52		$	(196	)	$	92	$	835

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

Our ALLL from continuing operations decreased by $14 million, or 1.7%, from the third 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, 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 $318 million, with a corresponding allowance of $36 million at September 30, 2015. Loans outstanding collectively evaluated for impairment totaled $59.8 billion, with a corresponding allowance of $753 million at September 30, 2015. At September 30, 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 nine months ended September 30, 2015. At September 30, 2014, the loans outstanding individually evaluated for impairment totaled $299 million, with a corresponding allowance of $38 million. Loans outstanding collectively evaluated for impairment totaled $55.8 billion, with a corresponding allowance of $765 million at September 30, 2014. At September 30, 2014, PCI loans evaluated for impairment totaled $14 million, with a corresponding allowance of $1 million. There was no provision for loan and lease losses on these PCI loans during the nine months ended September 30, 2014.

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A breakdown of the individual and collective ALLL and the corresponding loan balances as of September 30, 2015, follows:

	Allowance						Outstanding
	Individually		Collectively		Purchased				Individually		Collectively		Purchased
September 30, 2015	Evaluated for		Evaluated for		Credit				Evaluated for		Evaluated for		Credit
in millions	Impairment		Impairment		Impaired		Loans		Impairment		Impairment		Impaired
Commercial, financial and agricultural	$	9	$	429		—	$	31,095	$	72	$	31,023		—
Commercial real estate:
Commercial mortgage		1		138		—		8,180		15		8,165		—
Construction		—		25		—		1,070		5		1,065		—
Total commercial real estate loans		1		163		—		9,250		20		9,230		—
Commercial lease financing		—		45		—		3,929		—		3,929		—
Total commercial loans		10		637		—		44,274		92		44,182		—
Real estate — residential mortgage		5		13	$	1		2,267		56		2,200	$	11
Home equity:
Key Community Bank		17		37		—		10,282		113		10,168		1
Other		2		2		—		222		11		211		—
Total home equity loans		19		39		—		10,504		124		10,379		1
Consumer other — Key Community Bank		—		20		—		1,612		3		1,609		—
Credit cards		—		32		—		770		3		767		—
Consumer other:
Marine		2		11		—		620		38		582		—
Other		—		1		—		38		2		36		—
Total consumer other		2		12		—		658		40		618		—
Total consumer loans		26		116		1		15,811		226		15,573		12
Total ALLL — continuing operations		36		753		1		60,085		318		59,755		12
Discontinued operations		2		21		—		1,891		20		1,871		—
Total ALLL — including discontinued operations	$	38	$	774	$	1	$	61,976	$	338	$	61,626	$	12

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

	Allowance						Outstanding
	Individually		Collectively		Purchased					Individually		Collectively			Purchased
December 31, 2014	Evaluated for		Evaluated for		Credit					Evaluated for		Evaluated for			Credit
in millions	Impairment		Impairment		Impaired		Loans			Impairment		Impairment			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 September 30, 2014, follows:

	Allowance						Outstanding
	Individually		Collectively		Purchased					Individually		Collectively			Purchased
September 30, 2014	Evaluated for		Evaluated for		Credit					Evaluated for		Evaluated for			Credit
in millions	Impairment		Impairment		Impaired		Loans			Impairment		Impairment			Impaired
Commercial, financial and agricultural	$	7	$	379		—	$	26,683		$	31	$	26,652			—
Commercial real estate:
Commercial mortgage		2		157		—		8,276			29		8,246		$	1
Construction		—		28		—		1,036			10		1,026			—
Total commercial real estate loans		2		185		—		9,312			39		9,272			1
Commercial lease financing		—		55		—		4,135			—		4,135			—
Total commercial loans		9		619		—		40,130			70		40,059			1
Real estate — residential mortgage		4		17	$	1		2,213			55		2,146			12
Home equity:
Key Community Bank		16		55		—		10,380			105		10,274			1
Other		2		4		—		283			12		271			—
Total home equity loans		18		59		—		10,663			117		10,545			1
Consumer other — Key Community Bank		—		24		—		1,546			4		1,542			—
Credit cards		1		31		—		724			3		721			—
Consumer other:
Marine		5		14		—		828			48		780			—
Other		1		1		—		51			2		49			—
Total consumer other		6		15		—		879			50		829			—
Total consumer loans		29		146		1		16,025			229		15,783			13
Total ALLL — continuing operations		38		765		1		56,155			299		55,842			14
Discontinued operations		1		30		—		2,392	(a)		16		2,376	(a)		—
Total ALLL — including discontinued operations	$	39	$	795	$	1	$	58,547		$	315	$	58,218		$	14

(a) Amount includes $201 million 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 was $54 million at September 30, 2015. When combined with our ALLL, our total allowance for credit losses represented 1.40% of loans at September 30, 2015, compared to 1.49% at September 30, 2014.

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

	Three months ended September 30,					Nine months ended September 30,
in millions	2015		2014			2015		2014
Balance at beginning of period	$	45	$	37		$	35	$	37
Provision (credit) for losses on lending-related commitments		9		(2	)		19		(2	)
Balance at end of period	$	54	$	35		$	54	$	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 September 30, 2015, our Level 3 instruments consist of two convertible preferred securities. Our Strategy group is responsible for reviewing the valuation model and determining the fair value of these investments on a quarterly basis. The securities are valued using a cash flow analysis of the associated private company issuers. The valuations of the securities are negatively impacted by projected net losses of the associated private companies and positively impacted by projected net gains.

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. There were no significant direct equity and mezzanine investments at September 30, 2015.

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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 September 30, 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 September 30, 2015. We did not provide any financial support to investees related to our direct and indirect investments for the nine months ended September 30, 2015, and September 30, 2014.

September 30, 2015			Unfunded
in millions	Fair Value		Commitments
INVESTMENT TYPE
Indirect investments
Passive funds (a)	$	9	$	1
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.

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 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.

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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 September 30, 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 September 30, 2015, as well as financial support provided for the three and nine months ended September 30, 2015, and September 30, 2014:

					Financial support provided
					Three months ended September 30,								Nine months ended September 30,
	September 30, 2015				2015				2014				2015				2014
	Fair		Unfunded		Funded		Funded		Funded		Funded		Funded		Funded		Funded		Funded
in millions	Value		Commitments		Commitments		Other		Commitments		Other		Commitments		Other		Commitments		Other
INVESTMENT TYPE
Direct investments (a)	$	66		—		—	$	—		—		—		—	$	2		—	$	2
Indirect investments (b)		271	$	53	$	2		—	$	3		—	$	7		—	$	10		—
Total	$	337	$	53	$	2	$	—	$	3		—	$	7	$	2	$	10	$	2

(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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Other. We have one indirect equity investment in the form of limited partnership units of less than five percent. The investment is classified as Level 3 asset since our significant inputs are not observable in the marketplace. This investment is 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 an ownership interest in partners’ capital to which a proportionate share of net asset is attributed). The significant unobservable input used in estimating fair value is primarily the most recent value of the capital account as reported by the general partner of the partnership in which we invest. Under the requirements of the Volcker Rule, we will be required to dispose of this investment. As of September 30, 2015, management has not committed to a plan to sell this investment. Therefore, the investment continues to be valued using the net asset value per share methodology.

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 MRM 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 MRM 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, MRM 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.

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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 September 30, 2015, December 31, 2014, and September 30, 2014.

September 30, 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		—	$	694		—	$	694
States and political subdivisions		—		35		—		35
Collateralized mortgage obligations		—		—		—		—
Other mortgage-backed securities		—		46		—		46
Other securities	$	4		23		—		27
Total trading account securities		4		798		—		802
Commercial loans		—		9		—		9
Total trading account assets		4		807		—		811
Securities available for sale:
States and political subdivisions		—		15		—		15
Collateralized mortgage obligations		—		12,003		—		12,003
Other mortgage-backed securities		—		2,330		—		2,330
Other securities		11		—	$	17		28
Total securities available for sale		11		14,348		17		14,376
Other investments:
Principal investments:
Direct		—		—		66		66
Indirect		—		—		271		271
Total principal investments		—		—		337		337
Equity and mezzanine investments:
Direct		—		—		—		—
Indirect		—		—		9		9
Total equity and mezzanine investments		—		—		9		9
Other		—		—		4		4
Total other investments		—		—		350		350
Derivative assets:
Interest rate		—		1,097		22		1,119
Foreign exchange		120		10		—		130
Commodity		—		482		—		482
Credit		—		4		3		7
Derivative assets		120		1,593		25		1,738
Netting adjustments (a)		—		—		—		(945	)
Total derivative assets		120		1,593		25		793
Accrued income and other assets		—		2		—		2
Total assets on a recurring basis at fair value	$	135	$	16,750	$	392	$	16,332
LIABILITIES MEASURED ON A RECURRING BASIS
Bank notes and other short-term borrowings:
Short positions		—	$	677		—	$	677
Derivative liabilities:
Interest rate		—		656		—		656
Foreign exchange	$	102		10		—		112
Commodity		—		469		—		469
Credit		—		5		—		5
Derivative liabilities		102		1,140		—		1,242
Netting adjustments (a)		—		—		—		(566	)
Total derivative liabilities		102		1,140		—		676
Accrued expense and other liabilities		—		2		—		2
Total liabilities on a recurring basis at fair value	$	102	$	1,819		—	$	1,355

(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
Other		—		—		4		4
Total other investments		2		—		418		420
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	$	444	$	15,139
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.

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September 30, 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		—	$	596		—	$	596
States and political subdivisions		—		24		—		24
Collateralized mortgage obligations		—		—		—		—
Other mortgage-backed securities		—		186		—		186
Other securities	$	13		145		—		158
Total trading account securities		13		951		—		964
Commercial loans		—		1		—		1
Total trading account assets		13		952		—		965
Securities available for sale:
States and political subdivisions		—		27		—		27
Collateralized mortgage obligations		—		10,009		—		10,009
Other mortgage-backed securities		—		2,177		—		2,177
Other securities		22		—	$	10		32
Total securities available for sale		22		12,213		10		12,245
Other investments:
Principal investments:
Direct		—		—		115		115
Indirect		—		—		353		353
Total principal investments		—		—		468		468
Equity and mezzanine investments:
Direct		—		—		—		—
Indirect		—		—		13		13
Total equity and mezzanine investments		—		—		13		13
Other		—		—		4		4
Total other investments		—		—		485		485
Derivative assets:
Interest rate		—		827		19		846
Foreign exchange		73		8		—		81
Commodity		—		95		—		95
Credit		—		1		3		4
Derivative assets		73		931		22		1,026
Netting adjustments (a)		—		—		—		(613	)
Total derivative assets		73		931		22		413
Accrued income and other assets		—		—		—		—
Total assets on a recurring basis at fair value	$	108	$	14,096	$	517	$	14,108
LIABILITIES MEASURED ON A RECURRING BASIS
Bank notes and other short-term borrowings:
Short positions	$	6	$	490		—	$	496
Derivative liabilities:
Interest rate		—		616		—		616
Foreign exchange		55		9		—		64
Commodity		—		89	$	1		90
Credit		—		7		—		7
Derivative liabilities		55		721		1		777
Netting adjustments (a)		—		—		—		(393	)
Total derivative liabilities		55		721		1		384
Accrued expense and other liabilities		—		—		—		—
Total liabilities on a recurring basis at fair value	$	61	$	1,211	$	1	$	880

(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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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 and nine months ended September 30, 2015, and September 30, 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
Nine months ended September 30, 2015
Securities available for sale
Other securities	$	10		—		$	7		—			—			—			—		$	17		—
Other investments
Principal investments
Direct		102	$	20	(b)		5	$	(61	)		—			—			—			66		—
Indirect		302		33	(b)		6		(70	)		—			—			—			271	$	(23	) (b)
Equity and mezzanine investments
Direct		—		2	(b)		—		(2	)		—			—			—			—		2	(b)
Indirect		10		6	(b)		—		(7	)		—			—			—			9		6	(b)
Other		4		—			—		—			—			—			—			4		—
Derivative instruments (a)
Interest rate		13		5	(c)		1		—			—		$	10	(e)	$	(7	) (e)		22		—
Commodity		—		—			—		—			—			—			—			—		—
Credit		2		(7	) (c)		—		8			—			—			—			3		—
Three months ended September 30, 2015
Securities available for sale
Other securities	$	10		—		$	7		—			—			—			—		$	17		—
Other investments
Principal investments
Direct		70	$	4	(b)		3	$	(11	)		—			—			—			66	$	3	(b)
Indirect		282		8	(b)		2		(21	)		—			—			—			271		(8	) (b)
Equity and mezzanine investments
Direct		—		—			—		—			—			—			—			—		—
Indirect		9		—			—		—			—			—			—			9		—
Other		4		—			—		—			—			—			—			4		—
Derivative instruments(a)
Interest rate		16		6	(c)		—		—			—		$	2	(e)	$	(2	) (e)		22		—
Commodity		—		—			—		—			—			—			—			—		—
Credit		3		(3	) (c)		—		8		$	(5	)		—			—			3		—

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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
Nine months ended September 30, 2014
Securities available for sale
Other securities		—		—		$	10			—			—		—			—		$	10			—
Other investments
Principal investments
Direct	$	141	$	9	(b)		1		$	(36	)		—		—			—			115		$	18	(b)
Indirect		413		49	(b)		8			(117	)		—		—			—			353			8	(b)
Equity and mezzanine investments
Direct		—		—			—			—			—		—			—			—			—
Indirect		23		(1	) (b)		—			(9	)		—		—			—			13			(1	) (b)
Other		4		—			—			—			—		—			—			4			—
Derivative instruments (a)
Interest rate		25		2	(c)		3			(2	)		—	$	7	(e)	$	(16	) (e)		19			—
Commodity		—		—			(1	)		—			—		1	(e)		(1	) (e)		(1	)		—
Credit		3		(7	) (c)		—			—		$	7		—			—			3			—
Three months ended September 30, 2014
Securities available for sale
Other securities		—		—		$	10			—			—		—			—		$	10			—
Other investments
Principal investments
Direct	$	146	$	(2	) (b)		—		$	(29	)		—		—			—			115		$	(2	) (b)
Indirect		399		9	(b)		3			(58	)		—		—			—			353			(4	) (b)
Equity and mezzanine investments
Direct		—		—			—			—			—		—			—			—			—
Indirect		16		—			—			(3	)		—		—			—			13			—
Other		4		—			—			—			—		—			—			4			—
Derivative instruments(a)
Interest rate		20		—			—			—			—	$	2	(e)	$	(3	) (e)		19			—
Commodity		1		—			(1	)		—			—		—			(1	) (e)		(1	)		—
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 other and 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 nine-month periods ended September 30, 2015, and September 30, 2014.

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Assets and Liabilities 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. There were no liabilities measured at fair value on a nonrecurring basis at September 30, 2015, December 31, 2014, and September 30, 2014. The following table presents our assets measured at fair value on a nonrecurring basis at September 30, 2015, December 31, 2014, and September 30, 2014:

	September 30, 2015
in millions	Level 1		Level 2		Level 3		Total
ASSETS MEASURED ON A NONRECURRING BASIS
Impaired loans		—		—	$	3	$	3
Loans held for sale (a)		—		—		—		—
Accrued income and other assets		—		—		6		6
Total assets on a nonrecurring basis at fair value		—		—	$	9	$	9
	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		—		—		7		7
Total assets on a nonrecurring basis at fair value		—		—	$	12	$	12
	September 30, 2014
in millions	Level 1		Level 2		Level 3		Total
ASSETS MEASURED ON A NONRECURRING BASIS
Impaired loans		—		—	$	6	$	6
Loans held for sale (a)		—		—		—		—
Accrued income and other assets		—		—		4		4
Total assets on a nonrecurring basis at fair value		—		—	$	10	$	10

(a) During the first nine months of 2015, we transferred $24 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 $10 million during the first nine months 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.

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• 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 September 30, 2015, December 31, 2014, or September 30, 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.

44

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 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.

45

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 September 30, 2015, December 31, 2014, and September 30, 2014, along with the valuation techniques used, are shown in the following table:

September 30, 2015 dollars in millions	Fair Value of Level 3 Assets		Valuation Technique	Significant Unobservable Input	Range (Weighted-Average)
Recurring
Other investments — principal investments — direct:	$	66	Individual analysis of the condition of each investment
Debt instruments				EBITDA multiple		N/A (5.40	)
Equity instruments of private companies				EBITDA multiple (where applicable)		5.40 - 6.50 (6.40	)
Equity instruments of public companies			Market approach	Discount		N/A (6.00	)
Nonrecurring
Impaired loans		3	Fair value of underlying collateral	Discount		00.00 - 50.00% (14.00%	)
Goodwill		1,060	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%	)
September 30, 2014 dollars in millions	Fair Value of Level 3 Assets		Valuation Technique	Significant Unobservable Input	Range (Weighted-Average)
Recurring
Other investments — principal investments — direct:	$	115	Individual analysis of the condition of each investment
Debt instruments				EBITDA multiple		6.00 - 6.40 (6.30	)
Equity instruments of private companies				EBITDA multiple (where applicable)		5.50 - 6.00 (5.70	)
				Revenue multiple (where applicable)		4.30 - 4.30 (4.30	)
Nonrecurring
Impaired loans		6	Fair value of underlying collateral	Discount		10.00 - 90.00% (24.00%	)
Goodwill		1,051	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%	)

46

Fair Value Disclosures of Financial Instruments

The levels in the fair value hierarchy ascribed to our financial instruments and the related carrying amounts at September 30, 2015, December 31, 2014, and September 30, 2014, are shown in the following table.

	September 30, 2015
			Fair Value
in millions	Carrying Amount		Level 1		Level 2		Level 3		Netting Adjustment			Total
ASSETS
Cash and short-term investments (a)	$	2,434	$	2,434		—		—		—		$	2,434
Trading account assets (b)		811		4	$	807		—		—			811
Securities available for sale (b)		14,376		11		14,348	$	17		—			14,376
Held-to-maturity securities (c)		4,936		—		4,940		—		—			4,940
Other investments (b)		691		—		—		691		—			691
Loans, net of allowance (d)		59,295		—		—		57,497		—			57,497
Loans held for sale (b)		916		—		—		916		—			916
Derivative assets (b)		793		120		1,593		25	$	(945	) (f)		793
LIABILITIES
Deposits with no stated maturity (a)	$	65,624		—	$	65,624		—		—		$	65,624
Time deposits (e)		5,449	$	427		5,075		—		—			5,502
Short-term borrowings (a)		1,084		—		677		—		—			677
Long-term debt (e)		10,310		10,146		463		—		—			10,609
Derivative liabilities (b)		676		102		1,140		—	$	(566	) (f)		676
	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		—		758		—			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
	September 30, 2014
			Fair Value
in millions	Carrying Amount		Level 1		Level 2		Level 3		Netting Adjustment			Total
ASSETS
Cash and short-term investments (a)	$	2,993	$	2,993		—		—		—		$	2,993
Trading account assets (b)		965		13	$	952		—		—			965
Securities available for sale (b)		12,245		22		12,213	$	10		—			12,245
Held-to-maturity securities (c)		4,997		—		4,911		—		—			4,911
Other investments (b)		822		—		—		822		—			822
Loans, net of allowance (d)		55,351		—		—		53,996		—			53,996
Loans held for sale (b)		784		—		—		784		—			784
Mortgage servicing assets (e)		308		—		—		370		—			370
Derivative assets (b)		413		73		931		22	$	(613	) (f)		413
LIABILITIES
Deposits with no stated maturity (a)	$	62,028		—	$	62,028		—		—		$	62,028
Time deposits (e)		6,428	$	556		5,937		—		—			6,493
Short-term borrowings (a)		1,653		6		1,647		—		—			1,653
Long-term debt (e)		7,172		6,854		1,202		—		—			8,056
Derivative liabilities (b)		384		55		721	$	1	$	(393	) (f)		384

47

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 nine months 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 loans in portfolio (recorded at carrying value with appropriate valuation reserves) and loans in portfolio held for sale (recorded at fair value). Prior periods included assets and liabilities (recorded at fair value) in the securitization trusts and loans in portfolio (recorded at fair value) that were outside the trusts. All of these loans were excluded from the table above as follows:

• Loans at carrying value, net of allowance, of $1.9 billion ($1.5 billion at fair value) at September 30, 2015, $2.1 billion ($1.8 billion at fair value) at December 31, 2014, and $2.1 billion ($1.9 billion at fair value) at September 30, 2014;

• Portfolio loans held for sale at fair value of $169 million at September 30, 2015; and

• Portfolio loans at fair value of $191 million at December 31, 2014, and $201 million at September 30, 2014.

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.

Residential real estate mortgage loans. Residential real estate mortgage loans with carrying amounts of $2.3 billion at September 30, 2015, and $2.2 billion at both December 31, 2014, and September 30, 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.

48

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 on the balance sheet 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 on the balance sheet 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.

49

	September 30, 2015
in millions	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
SECURITIES AVAILABLE FOR SALE
States and political subdivisions	$	14	$	1		—	$	15
Collateralized mortgage obligations		11,938		127	$	62		12,003
Other mortgage-backed securities		2,309		22		1		2,330
Other securities		27		1		—		28
Total securities available for sale	$	14,288	$	151	$	63	$	14,376
HELD-TO-MATURITY SECURITIES
Collateralized mortgage obligations	$	4,299	$	24		23	$	4,300
Other mortgage-backed securities		617		3		—		620
Other securities		20		—		—		20
Total held-to-maturity securities	$	4,936	$	27	$	23	$	4,940
	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
	September 30, 2014
in millions	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
SECURITIES AVAILABLE FOR SALE
States and political subdivisions	$	26	$	1		—	$	27
Collateralized mortgage obligations		10,096		109	$	196		10,009
Other mortgage-backed securities		2,156		24		3		2,177
Other securities		28		4		—		32
Total securities available for sale	$	12,306	$	138	$	199	$	12,245
HELD-TO-MATURITY SECURITIES
Collateralized mortgage obligations	$	4,977	$	10	$	96	$	4,891
Other securities		20		—		—		20
Total held-to-maturity securities	$	4,997	$	10	$	96	$	4,911

50

The following table summarizes our securities that were in an unrealized loss position as of September 30, 2015, December 31, 2014, and September 30, 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
September 30, 2015
Securities available for sale:
Collateralized mortgage obligations	$	770	$	3	$	3,348	$	59	$	4,118	$	62
Other mortgage-backed securities		420		1		—		—		420		1
Other securities (a)		2		—		3		—		5		—
Held-to-maturity:
Collateralized mortgage obligations		214		1		1,355		22		1,569		23
Other mortgage-backed securities		110		—		—		—		110		—
Other securities (b)		4		—		—		—		4		—
Total temporarily impaired securities	$	1,520	$	5	$	4,706	$	81	$	6,226	$	86
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 (a)		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
September 30, 2014
Securities available for sale:
Collateralized mortgage obligations	$	605	$	7	$	4,379	$	189	$	4,984	$	196
Other mortgage-backed securities		811		1		81		2		892		3
Other securities (a)		1		—		2		—		3		—
Held-to-maturity:
Collateralized mortgage obligations		1,288		13		2,342		83		3,630		96
Total temporarily impaired securities	$	2,705	$	21	$	6,804	$	274	$	9,509	$	295

(a) Gross unrealized losses totaled less than $1 million for other securities available for sale as of September 30, 2015, December 31, 2014, and September 30, 2014.

(b) Gross unrealized losses totaled less than $1 million for other securities held-to-maturity as of September 30, 2015.

At September 30, 2015, we had $62 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 4.2 years at September 30, 2015. We also had $1 million of gross unrealized losses related to 17 other mortgage-backed securities positions, which had a weighted-average maturity of 5.2 years at September 30, 2015. Because 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 as other-than-temporarily impaired 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 did not have any impairment losses recognized in earnings for the three months ended September 30, 2015.

51

Three months ended September 30, 2015
in millions
Balance at June 30, 2015	$	4
Impairment recognized in earnings		—
Balance at September 30, 2015	$	4

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

Nine months ended September 30, 2015
in millions
Realized gains		—
Realized losses	$	1
Net securities gains (losses)	$	(1	)

At September 30, 2015, securities available for sale and held-to-maturity securities totaling $6.5 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 Available for Sale				Held-to-Maturity Securities
September 30, 2015 in millions	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less	$	297	$	302	$	9	$	9
Due after one through five years		12,659		12,735		4,310		4,311
Due after five through ten years		1,329		1,336		617		620
Due after ten years		3		3		—		—
Total	$	14,288	$	14,376	$	4,936	$	4,940

52

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 September 30, 2015, after taking into account the effects of bilateral collateral and master netting agreements, we had $157 million of derivative assets and a positive $34 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 $636 million and derivative liabilities of $710 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 September 30, 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 September 30, 2015, December 31, 2014, and September 30, 2014. The change in the notional amounts of these derivatives by type from December 31, 2014, to September 30, 2015, indicates the volume of our derivative transaction activity during the first nine months 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:

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	September 30, 2015								December 31, 2014								September 30, 2014
			Fair Value								Fair Value								Fair Value
	Notional		Derivative			Derivative			Notional		Derivative			Derivative			Notional		Derivative			Derivative
in millions	Amount		Assets			Liabilities			Amount		Assets			Liabilities			Amount		Assets			Liabilities
Derivatives designated as hedging instruments:
Interest rate	$	17,910	$	394		$	12		$	15,095	$	272		$	26		$	13,946	$	237		$	44
Foreign exchange		319		11			—			371		8			—			413		13			—
Total		18,229		405			12			15,466		280			26			14,359		250			44
Derivatives not designated as hedging instruments:
Interest rate		57,006		725			644			43,771		665			618			42,088		608			572
Foreign exchange		6,161		119			112			4,024		85			81			4,433		69			64
Commodity		1,394		482			469			1,544		608			594			1,780		95			90
Credit		580		7			5			512		5			7			618		4			7
Total		65,141		1,333			1,230			49,851		1,363			1,300			48,919		776			733
Netting adjustments (a)		—		(945	)		(566	)		—		(1,034	)		(542	)		—		(613	)		(393	)
Net derivatives in the balance sheet		83,370		793			676			65,317		609			784			63,278		413			384
Other collateral (b)		—		(113	)		(232	)		—		(155	)		(241	)		—		(71	)		(268	)
Net derivative amounts	$	83,370	$	680		$	444		$	65,317	$	454		$	543		$	63,278	$	342		$	116

(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 nine-month period ended September 30, 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 September 30, 2015.

The following table summarizes the pre-tax net gains (losses) on our fair value hedges for the nine-month periods ended September 30, 2015, and September 30, 2014, and where they are recorded on the income statement.

	Nine months ended September 30, 2015
		Net Gains					Net Gains
	Income Statement Location of	(Losses) on				Income Statement Location of	(Losses) on
in millions	Net Gains (Losses) on Derivative	Derivative		Hedged Item		Net Gains (Losses) on Hedged Item	Hedged Item
Interest rate	Other income	$	66		Long-term debt	Other income	$	(66	) (a)
Interest rate	Interest expense – Long-term debt		91
Total		$	157				$	(66	)

	Nine months ended September 30, 2014
		Net Gains						Net Gains
	Income Statement Location of	(Losses) on					Income Statement Location of	(Losses) on
in millions	Net Gains (Losses) on Derivative	Derivative			Hedged Item		Net Gains (Losses) on Hedged Item	Hedged Item
Interest rate	Other income	$	(21	)		Long-term debt	Other income	$	21	(a)
Interest rate	Interest expense – Long-term debt		91
Total		$	70					$	21

(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 nine-month period ended September 30, 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 September 30, 2015.

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Considering the interest rates, yield curves, and notional amounts as of September 30, 2015, we would expect to reclassify an estimated $37 million of after-tax 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 $1 million of net losses related to terminated cash flow hedges from AOCI to income during the next 12 months. As of September 30, 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 September 30, 2015, AOCI reflected unrecognized after-tax gains totaling $35 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 September 30, 2015. We did not exclude any portion of our hedging instruments from the assessment of hedge effectiveness during the nine-month period ended September 30, 2015.

The following table summarizes the pre-tax net gains (losses) on our cash flow and net investment hedges for the nine-month periods ended September 30, 2015, and September 30, 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.

	Nine months ended September 30, 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	$	147		Interest income – Loans	$	73		Other income		—
Interest rate		(3	)	Interest expense – Long-term debt		(3	)	Other income		—
Interest rate		(3	)	Investment banking and debt placement fees		—		Other income		—
Net Investment Hedges
Foreign exchange contracts		29		Other Income		—		Other income		—
Total	$	170			$	70				—

	Nine months ended September 30, 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	$	27		Interest income – Loans	$	49		Other income		—
Interest rate		(5	)	Interest expense – Long-term debt		(3	)	Other income		—
Interest rate		(1	)	Investment banking and debt placement fees		—		Other income		—
Net Investment Hedges
Foreign exchange contracts		17		Other Income		—		Other income		—
Total	$	38			$	46				—

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			September 30, 2015
AOCI resulting from cash flow and net investment hedges	$	(8	)	$	107	$	(44	)	$	55

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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 nine-month periods ended September 30, 2015, and September 30, 2014, and where they are recorded on the income statement.

	Nine months ended September 30, 2015								Nine months ended September 30, 2014
	Corporate								Corporate
	Services		Other						Services		Other
in millions	Income		Income			Total			Income		Income			Total
NET GAINS (LOSSES)
Interest rate	$	18		—		$	18		$	11		—		$	11
Foreign exchange		27		—			27			25		—			25
Commodity		5		—			5			3		—			3
Credit		—	$	(10	)		(10	)		—	$	(16	)		(16	)
Total net gains (losses)	$	50	$	(10	)	$	40		$	39	$	(16	)	$	23

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 $394 million at September 30, 2015, $518 million at December 31, 2014, and $230 million at September 30, 2014. The cash collateral netted against derivative liabilities totaled $14 million at September 30, 2015, $26 million at December 31, 2014, and $10 million at September 30, 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 September 30, 2015, we posted $112 million of cash collateral with clearing organizations and held $105 million of cash collateral from clearing organizations. At December 31, 2014, we posted $56 million of cash collateral with clearing organizations and did not hold any cash collateral from clearing organizations. At September 30, 2014, we posted $51 million of cash collateral with clearing organizations and did not hold any 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.

in millions	September 30, 2015		December 31, 2014		September 30, 2014
Largest gross exposure (derivative asset) to an individual counterparty	$	137	$	133	$	106
Collateral posted by this counterparty		55		100		44
Derivative liability with this counterparty		78		31		103
Collateral pledged to this counterparty		—		—		47
Net exposure after netting adjustments and collateral		4		2		6

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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.

in millions	September 30, 2015		December 31, 2014		September 30, 2014
Interest rate	$	807	$	607	$	556
Foreign exchange		48		41		39
Commodity		328		478		47
Credit		4		1		1
Derivative assets before collateral		1,187		1,127		643
Less: Related collateral		394		518		230
Total derivative assets	$	793	$	609	$	413

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 September 30, 2015, we had gross exposure of $952 million to broker-dealers and banks. We had net exposure of $303 million after the application of master netting agreements and cash collateral, where such qualifying agreements exist. We had net exposure of $172 million after considering $131 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 September 30, 2015, which we estimate to be the potential future losses on amounts due from client counterparties in the event of default. At September 30, 2015, we had gross exposure of $525 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 $490 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 $30 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 September 30, 2015, December 31, 2014, and September 30, 2014. The fair value of credit derivatives presented below does not take into account the effects of bilateral collateral or master netting agreements.

	September 30, 2015								December 31, 2014								September 30, 2014
in millions	Purchased			Sold		Net			Purchased			Sold		Net			Purchased			Sold		Net
Single-name credit default swaps	$	(2	)		—	$	(2	)	$	(3	)		—	$	(3	)	$	(1	)		—	$	(1	)
Traded credit default swap indices		4			—		4			1			—		1			(2	)		—		(2	)
Other (a)		—			—		—			—			—		—			—			—		—
Total credit derivatives	$	2			—	$	2		$	(2	)		—	$	(2	)	$	(3	)		—	$	(3	)

(a) As of September 30, 2015, December 31, 2014, and September 30, 2014, the fair value of other credit derivatives sold totaled less than $1 million.

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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 September 30, 2015, December 31, 2014, and September 30, 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.

	September 30, 2015							December 31, 2014							September 30, 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		.72		.87	%	$	5		.97		.87	%
Other	$	9		2.95		7.45	%		6		2.89		9.58			6		2.92		5.59
Total credit derivatives sold	$	9		—		—		$	11		—		—		$	11		—		—

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 September 30, 2015, KeyBank’s rating was “A3” with Moody’s and “A-” with S&P, and KeyCorp’s rating was “Baa1” with Moody’s and “BBB+” with S&P. As of September 30, 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 $249 million, which includes $216 million in derivative assets and $465 million in derivative liabilities. We had $232 million in cash and securities collateral posted to cover those positions as of September 30, 2015. The aggregate fair value of all derivative contracts with credit risk contingent features held by KeyCorp as of September 30, 2015, that were in a net liability position totaled $8 million, which consists solely of derivative liabilities. We had $8 million in collateral posted to cover those positions as of September 30, 2015.

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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 September 30, 2015, December 31, 2014, and September 30, 2014. The additional collateral amounts were calculated based on scenarios under which KeyBank’s ratings are downgraded one, two, or three ratings as of September 30, 2015, December 31, 2014, and September 30, 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 September 30, 2015, while additional collateral of less than $1 million as of December 31, 2014, and $3 million as of September 30, 2014, would have been required. 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.

	September 30, 2015				December 31, 2014				September 30, 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	$	1	$	1
Two rating downgrades		5		5		1		1		4		4
Three rating downgrades		6		6		3		3		6		6

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 September 30, 2015, payments of up to $7 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 September 30, 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:

	Nine months ended September 30,
in millions	2015			2014
Balance at beginning of period	$	323		$	332
Servicing retained from loan sales		39			19
Purchases		29			33
Amortization		(71	)		(76	)
Balance at end of period	$	320		$	308
Fair value at end of period	$	427		$	370

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 September 30, 2015, and September 30, 2014, along with the valuation techniques, are shown in the following table:

September 30, 2015 dollars in millions	Valuation Technique	Significant Unobservable Input	Range (Weighted-Average)
Mortgage servicing assets	Discounted cash flow	Prepayment speed	1.70 - 16.30% (4.90%)
		Expected defaults	1.00 - 3.00% (1.70%)
		Residual cash flows discount rate	7.00 - 15.00% (7.80%)
		Escrow earn rate	0.90 - 3.50% (2.30%)
		Servicing cost	$150 - $2,719 ($1,151)
		Loan assumption rate	0.00 - 3.00% (1.37%)
		Percentage late	0.00 - 2.00% (0.33%)

September 30, 2014 dollars in millions	Valuation Technique	Significant Unobservable Input	Range (Weighted-Average)
Mortgage servicing assets	Discounted cash flow	Prepayment speed	1.90 - 12.30% (5.90%)
		Expected defaults	1.00 - 3.00% (1.90%)
		Residual cash flows discount rate	7.00 - 14.10% (7.80%)
		Escrow earn rate	0.50 - 3.10% (1.70%)
		Servicing cost	$150 - $2,700 ($1,053)
		Loan assumption rate	0.20 - 3.00% (1.52%)
		Percentage late	0.00 - 2.00% (0.32%)

If these economic assumptions change or prove incorrect, the fair value of mortgage servicing assets may also change. Expected credit losses, escrow earn rates, and discount rates are critical to the valuation of servicing assets. Estimates of these assumptions are based on how a market participant would view the respective rates and reflect historical data associated with the loans, industry trends, and other considerations. Actual rates may differ from those estimated due to changes in a variety of economic factors. A decrease in the value assigned to the escrow earn rates would cause a decrease in the fair value of our mortgage servicing assets. An increase in the assumed default rates of commercial mortgage loans or an increase in the assigned discount rates would cause a decrease in the fair value of our mortgage servicing assets.

Contractual fee income from servicing commercial mortgage loans totaled $33 million for the nine-month period ended September 30, 2015, and $35 million for the nine-month period ended September 30, 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 significant 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.”

During the third quarter of 2015, we noted that not all liabilities related to our unconsolidated VIEs were captured in the table below. The amounts in the “Total Liabilities” column for our unconsolidated VIEs were revised to incorporate all liabilities for the periods ended December 31, 2014, and September 30, 2014.

	Consolidated VIEs				Unconsolidated VIEs
	Total		Total		Total		Total		Maximum
in millions	Assets		Liabilities		Assets		Liabilities		Exposure to Loss
September 30, 2015
LIHTC funds	$	1	$	1	$	26	$	14		—
LIHTC investments
KCDC		N/A		N/A		834		271	$	543
KAHC		N/A		N/A		260		231		14
December 31, 2014
LIHTC funds	$	1	$	1	$	55	$	36		—
LIHTC investments
KCDC		N/A		N/A		764		258	$	507
KAHC		N/A		N/A		470		462		14
September 30, 2014
LIHTC funds	$	1	$	2	$	55	$	36		—
LIHTC investments
KCDC		N/A		N/A		775		263	$	498
KAHC		N/A		N/A		470		462		9

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 $1 million at September 30, 2015, December 31, 2014, and September 30, 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, which are recorded in “accrued expense and other liabilities” on the balance sheet.

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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 September 30, 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 $4 million. 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.” 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. Our maximum exposure to loss in connection with these funds is minimal and represents the remaining investment balance. We do not have any liability recorded related to the funds. We have not formed nonguaranteed funds since October 2003.

LIHTC investments. Through KCDC, 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. Our maximum exposure to loss in connection with these partnerships consists of our unamortized investment balance plus any unfunded equity commitments and tax credits claimed but subject to recapture. These investments are recorded in “other investments” on the balance sheet. We do not have any liability recorded related to these investments because we believe the likelihood of any loss is remote. We continue to invest in these LIHTC operating partnerships.

Through KAHC, we have additional investments in unconsolidated LIHTC operating partnerships that are held by the consolidated LIHTC guaranteed funds. 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 have the obligation to absorb expected losses and the right to receive residual returns. Our maximum exposure to loss in connection with these partnerships consists of our remaining investment balance. These investments are recorded in “other investments” on the balance sheet. Information regarding our exposure to loss in connection with these guaranteed funds is described above in the consolidated LIHTC guaranteed funds section and is also included in Note 15 under the heading “Return guarantee agreement with LIHTC investors.” We have not obtained any significant direct investments (either individually or in the aggregate) in LIHTC operating partnerships since September 2003.

We amortize our LIHTC investments over the period that we expect to receive the tax benefits. During the first nine months of 2015, we recognized $85 million of amortization and $99 million of tax credits associated with these investments within income taxes on our income statement. During the first nine months of 2014, we recognized $72 million of amortization and $84 million of tax credits associated with these investments within income taxes on our income statement. We had $1 billion and $926 million of investments in LIHTC operating partnerships at September 30, 2015, and September 30, 2014, respectively. These investments are recorded in “accrued income and other assets” on our balance sheet.

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 (“Basis of Presentation and 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 third quarter of 2015 and 24.1% for the third 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.

Deferred Tax Asset

At September 30, 2015, from continuing operations, we had a net federal deferred tax asset of $190 million and a net state deferred tax asset of $26 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 $153 million and a net state deferred tax asset of $19 million at September 30, 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 September 30, 2015, and at December 31, 2014, and $1 million at September 30, 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 $2.8 million at September 30, 2015, and by $1 million at both December 31, 2014, and September 30, 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 was accounted for as a business combination, expanded our corporate and investment banking business unit and added 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. During the third quarter of 2015, goodwill increased $3 million to account for a tax item associated with the business combination. 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 was 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 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, the loans at fair value in portfolio, and the loans held for sale 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, the loans in portfolio, and the loans held for sale 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 interest expense related to the loans and securities are included as components 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 September 30,						Nine months ended September 30,
in millions	2015			2014			2015		2014
Net interest income	$	9		$	21		$	29	$	67
Provision for credit losses		7			5			9		15
Net interest income after provision for credit losses		2			16			20		52
Noninterest income		(2	)		(41	)		1		(111	)
Noninterest expense		5			7			13		19
Income (loss) before income taxes		(5	)		(32	)		8		(78	)
Income taxes		(2	)		(12	)		3		(29	)
Income (loss) from discontinued operations, net of taxes (a)	$	(3	)	$	(20	)	$	5	$	(49	)

(a) Includes after-tax charges of $7 million and $9 million for the three-month periods ended September 30, 2015, and September 30, 2014, respectively, and $18 million and $26 million for the nine-month periods ended September 30, 2015, and September 30, 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 of our education lending business included on the balance sheet are as follows. There were no discontinued liabilities for the periods presented below.

	September 30,		December 31,		September 30,
in millions	2015		2014		2014
Held-to-maturity securities	$	1	$	1	$	1
Portfolio loans at fair value		—		191		201
Loans, net of unearned income (a)		1,891		2,104		2,174
Less: Allowance for loan and lease losses		23		29		31
Net loans		1,868		2,266		2,344
Portfolio loans held for sale at fair value		169		—		—
Accrued income and other assets		33		38		40
Total assets	$	2,071	$	2,305	$	2,385

(a) At September 30, 2015, December 31, 2014, and September 30, 2014, unearned income was less than $1 million.

The discontinued education lending business consisted of loans in portfolio (recorded at fair value) and loans in portfolio (recorded at carrying value with appropriate valuation reserves). As of June 30, 2015, we decided to sell the portfolio loans that are recorded at fair value, and these loans were reclassified to portfolio loans held for sale at fair value within discontinued operations. 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 September 30, 2015, education loans included 1,845 TDRs with a recorded investment of approximately $20 million (pre-modification and post-modification). A specifically allocated allowance of $2 million was assigned to these loans as of September 30, 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 qualifying special purpose entity, 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 had 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 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 September 30, 2015, there were loans held for sale with a contractual amount of $173 million that were previously purchased from three of the outstanding securitizations trusts pursuant to the legal terms of these particular trusts. These loans were transferred to held for sale in June 2015 and continue to be accounted for at fair value. As of September 30, 2015, the portfolio loans held for sale were valued based on indicative bids to sell the loans. These portfolio loans were previously

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valued using an internal discounted cash flow model, which was affected by assumptions for defaults, loss severity, discount rates, and prepayments. These 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 held for sale accounted for at fair value had a value of $169 million at September 30, 2015. On October 29, 2015, $117 million of these loans were sold. Portfolio loans accounted for at fair value had a value of $191 million at December 31, 2014, and $201 million at September 30, 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 previously determined the fair value of our student loans held in portfolio that were accounted for at fair value and for our loans and securities in our education loan securitization trusts. Corporate Treasury provided 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 reviewed all significant inputs and assumptions and approved the resulting fair values.

The Working Group reviewed actual performance trends of the loans on a quarterly basis and used statistical analysis and qualitative measures to determine assumptions for future performance. Predictive models that incorporate delinquency and charge-off trends along with economic outlooks assisted the Working Group to forecast future defaults. The Working Group used 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 had 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 were accounted for at fair value was based on a discounted cash flow analysis using a model purchased from a third party and maintained by Corporate Treasury. The valuation process began with loan-level data that was 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 were developed using a financial model that reflected certain assumptions for defaults, recoveries, status changes, and prepayments. A net earnings stream, taking into account cost of funding, was calculated and discounted back to the measurement date using an appropriate discount rate. This resulting amount was used to determine the present value of the loans, which represented 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 reconciled 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 considered loan and securities run-off, yields, future default and recovery changes, and the timing of cash releases to us from the trusts. We also performed back-testing to compare expected defaults to actual experience; the impact of future defaults could significantly affect the fair value of these loans and securities over time. In addition, our internal model validation group periodically performed 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 portfolio loans held for sale and portfolio loans accounted for at fair value at September 30, 2015, December 31, 2014, and September 30, 2014:

September 30, 2015 dollars in millions	Fair Value of Level 3 Assets and Liabilities		Valuation Technique		Significant Unobservable Input		Range
Portfolio loans held for sale accounted for at fair value	$	169		Market approach		Indicative bids		84.50 - 104.00%
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%)
September 30, 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	$	201		Discounted cash flow		Prepayment speed		5.00 - 5.80% (5.25%)
						Loss severity		2.00 - 77.00% (25.71%)
						Discount rate		3.60 - 3.90% (3.69%)
						Default rate		.93 - 1.91% (1.24%)

The following table shows the principal and fair value amounts for our portfolio loans held for sale at fair value, portfolio loans at carrying value, and portfolio loans at fair value at September 30, 2015, December 31, 2014, and September 30, 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.

	September 30, 2015				December 31, 2014				September 30, 2014
in millions	Principal		Fair Value		Principal		Fair Value		Principal		Fair Value
Portfolio loans held for sale at fair value
Accruing loans past due 90 days or more	$	5	$	4		—		—		—		—
Portfolio loans at carrying value
Accruing loans past due 90 days or more	$	26		N/A	$	29		N/A	$	31		N/A
Loans placed on nonaccrual status		8		N/A		11		N/A		9		N/A
Portfolio loans at fair value
Accruing loans past due 90 days or more		—		—	$	5	$	5	$	5	$	5

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The following table shows the portfolio loans held for sale at fair value and portfolio loans at fair value and their related contractual amounts at September 30, 2015, December 31, 2014, and September 30, 2014.

	September 30, 2015				December 31, 2014				September 30, 2014
in millions	Contractual Amount		Fair Value		Contractual Amount		Fair Value		Contractual Amount		Fair Value
ASSETS
Portfolio loans held for sale	$	173	$	169		—		—		—		—
Portfolio loans		—		—	$	192	$	191	$	199	$	201

The following tables present the assets of the portfolio loans held for sale and portfolio loans measured at fair value on a recurring basis at September 30, 2015, December 31, 2014, and September 30, 2014.

September 30, 2015 in millions	Level 1		Level 2		Level 3		Total
ASSETS MEASURED ON A RECURRING BASIS
Portfolio loans held for sale		—		—	$	169	$	169
Total assets on a recurring basis at fair value		—		—	$	169	$	169

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

September 30, 2014 in millions	Level 1		Level 2		Level 3		Total
ASSETS MEASURED ON A RECURRING BASIS
Portfolio loans		—		—	$	201	$	201
Total assets on a recurring basis at fair value		—		—	$	201	$	201

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The following table shows the change in the fair values of the Level 3 portfolio loans held for sale, portfolio loans, and consolidated education loan securitization trusts for the three- and nine-month periods ended September 30, 2015, and September 30, 2014.

	Portfolio
	Student			Portfolio			Trust			Trust						Trust
	Loans Held			Student			Student			Other			Trust			Other
in millions	For Sale			Loans			Loans			Assets			Securities			Liabilities
Balance at December 31, 2014		—		$	191			—			—			—			—
Gains (losses) recognized in earnings (a)	$	(4	)		1			—			—			—			—
Settlements		(6	)		(13	)		—			—			—			—
Loans transferred to held for sale		179			(179	)		—			—			—			—
Balance at September 30, 2015 (b)	$	169			—			—			—			—			—
Balance at June 30, 2015	$	179			—			—			—			—			—
Gains (losses) recognized in earnings (a)		(4	)		—			—			—			—			—
Settlements		(6	)		—			—			—			—			—
Balance at September 30, 2015 (b)	$	169			—			—			—			—			—
Balance at December 31, 2013		—		$	147		$	1,960		$	20		$	1,834		$	20
Gains (losses) recognized in earnings (a)		—			(4	)		(34	)		—			33			—
Purchases		—			74			—			—			—			—
Sales		—			—			(74	)		—			—			—
Settlements		—			(16	)		(202	)		(1	)		(278	)		(3	)
Transfers out due to deconsolidation		—			—			(1,650	)		(19	)		(1,589	)		(17	)
Balance at September 30, 2014 (b)		—		$	201			—			—			—			—
Balance at June 30, 2014		—		$	209		$	1,711		$	19		$	1,660		$	17
Gains (losses) recognized in earnings (a)		—			—			—			—			—			—
Purchases		—			—			—			—			—			—
Sales		—			—			—			—			—			—
Settlements		—			(8	)		(61	)		—			(71	)		—
Transfers out due to deconsolidation		—			—			(1,650	)		(19	)		(1,589	)		(17	)
Balance at September 30, 2014 (b)		—		$	201			—			—			—			—

(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- and nine-month periods ended September 30, 2015. There were no issuances or transfers into Level 3 for the three- and nine-month periods ended September 30, 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 September 30,				Nine months ended September 30,
in millions	2015		2014		2015		2014
Net interest income		—	$	5		—	$	7
Noninterest income		—		—		—		10
Noninterest expense		—		—		—		—
Income (loss) before income taxes		—		5		—		17
Income taxes		—		2		—		7
Income (loss) from discontinued operations, net of taxes		—	$	3		—	$	10

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The discontinued assets of Victory included on the balance sheet are as follows. There were no discontinued liabilities for the periods presented below.

	September 30,		December 31,		September 30,
in millions	2015		2014		2014
Seller note (a)		—		—	$	17
Total assets		—		—	$	17

(a) At September 30, 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 September 30,				Nine months ended September 30,
in millions	2015		2014		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:

	September 30,		December 31,		September 30,
in millions	2015		2014		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 September 30,						Nine months ended September 30,
in millions	2015			2014			2015		2014
Net interest income	$	9		$	26		$	29	$	74
Provision for credit losses		7			5			9		15
Net interest income after provision for credit losses		2			21			20		59
Noninterest income		(2	)		(41	)		1		(101	)
Noninterest expense		5			7			13		23
Income (loss) before income taxes		(5	)		(27	)		8		(65	)
Income taxes		(2	)		(10	)		3		(24	)
Income (loss) from discontinued operations, net of taxes (a)	$	(3	)	$	(17	)	$	5	$	(41	)

(a) Includes after-tax charges of $7 million and $9 million for the three-month periods ended September 30, 2015, and September 30, 2014, respectively, and $18 million and $26 million for the nine-month periods ended September 30, 2015, and September 30, 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:

	September 30,		December 31,		September 30,
in millions	2015		2014		2014
Cash and due from banks	$	15	$	19	$	19
Held-to-maturity securities		1		1		1
Seller note		—		—		17
Portfolio loans at fair value		—		191		201
Loans, net of unearned income (a)		1,891		2,104		2,174
Less: Allowance for loan and lease losses		23		29		31
Net loans		1,868		2,266		2,344
Portfolio loans held for sale at fair value		169		—		—
Accrued income and other assets		33		38		40
Total assets	$	2,086	$	2,324	$	2,421
Accrued expense and other liabilities		—	$	3	$	3
Total liabilities		—	$	3	$	3

(a) At September 30, 2015, December 31, 2014, and September 30, 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 that 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, 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. As a result, KBCM did not have any outstanding securities financing agreements at September 30, 2015, December 31, 2014, and September 30, 2014.

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The following table summarizes our securities financing agreements at September 30, 2015, December 31, 2014, and September 30, 2014:

	September 30, 2015
	Gross Amount
	Presented in		Netting						Net
in millions	Balance Sheet		Adjustments (a)			Collateral (b)			Amounts
Offsetting of financial assets:
Reverse repurchase agreements	$	4	$	(4	)		—			—
Total	$	4	$	(4	)		—			—
Offsetting of financial liabilities:
Repurchase agreements (c)	$	6	$	(4	)	$	(2	)		—
Total	$	6	$	(4	)	$	(2	)		—
	December 31, 2014
	Gross Amount
	Presented in		Netting						Net
in millions	Balance Sheet		Adjustments (a)			Collateral (b)			Amounts
Offsetting of financial assets:
Reverse repurchase agreements	$	3	$	(1	)	$	(2	)		—
Total	$	3	$	(1	)	$	(2	)		—
Offsetting of financial liabilities:
Repurchase agreements	$	1	$	(1	)		—			—
Total	$	1	$	(1	)		—			—
	September 30, 2014
	Gross Amount
	Presented in		Netting						Net
in millions	Balance Sheet		Adjustments (a)			Collateral (b)			Amounts
Offsetting of financial assets:
Reverse repurchase agreements	$	6	$	(4	)	$	(2	)		—
Total	$	6	$	(4	)	$	(2	)		—
Offsetting of financial liabilities:
Repurchase agreements	$	4	$	(4	)		—			—
Total	$	4	$	(4	)		—			—

(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.

(c) Repurchase agreements are collateralized by U.S. Treasury securities and contracted on an overnight basis.

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 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.

During the third quarters of 2015 and 2014, year-to-date lump sum payments made under certain pension plans triggered settlement accounting. In accordance with the applicable accounting guidance for defined benefit plans, we performed a remeasurement of the affected plans in conjunction with the settlement and recognized the settlement losses reflected in the following table. We will also recognize a settlement loss in the fourth quarter of 2015 related to additional lump sum payments made during the fourth quarter.

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

	Three months ended September 30,						Nine months ended September 30,
in millions	2015			2014			2015			2014
Interest cost on PBO	$	10		$	12		$	30		$	36
Expected return on plan assets		(14	)		(17	)		(42	)		(51	)
Amortization of losses		4			4			13			12
Settlement loss		19			20			19			20
Net pension cost	$	19		$	19		$	20		$	17

Other Postretirement Benefit Plans

We sponsor a retiree healthcare plan that 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 September 30,						Nine months ended September 30,
in millions	2015			2014			2015			2014
Interest cost on APBO	$	1		$	1		$	3		$	3
Expected return on plan assets		(1	)		(1	)		(2	)		(3	)
Amortization of unrecognized prior service credit		—			—			(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 September 30, 2015, the trust preferred securities issued by the KeyCorp capital trusts represent $85 million, or .8%, of our total qualifying Tier 1 capital, net of goodwill.

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

					Principal		Interest Rate			Maturity
	Trust Preferred				Amount of		of Trust Preferred			of Trust Preferred
	Securities,		Common		Debentures,		Securities and			Securities and
dollars in millions	Net of Discount (a)		Stock		Net of Discount (b)		Debentures (c)			Debentures
September 30, 2015
KeyCorp Capital I	$	156	$	6	$	162		1.024	%		2028
KeyCorp Capital II		111		4		115		6.875			2029
KeyCorp Capital III		145		4		149		7.750			2029
Total	$	412	$	14	$	426		4.968	%		—
December 31, 2014	$	408	$	14	$	422		4.926	%		—
September 30, 2014	$	397	$	14	$	411		4.856	%		—

(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 $72 million at September 30, 2015, $68 million at December 31, 2014, and $57 million at September 30, 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 $72 million at September 30, 2015, $68 million at December 31, 2014, and $57 million at September 30, 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 September 30, 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.

	Maximum Potential
September 30, 2015	Undiscounted		Liability
in millions	Future Payments		Recorded
Financial guarantees:
Standby letters of credit	$	11,498	$	63
Recourse agreement with FNMA		1,747		4
Return guarantee agreement with LIHTC investors		4		4
Written put options (a)		2,131		117
Total	$	15,380	$	188

(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% to 30% probability of payment), moderate (greater than 30% to 70% probability of payment), or high (greater than 70% 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 September 30, 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 September 30, 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 11 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 September 30, 2015, the outstanding commercial mortgage loans in this program had a weighted-average remaining term of 7.85 years, and the unpaid

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principal balance outstanding of loans sold by us as a participant was $6.1 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 September 30, 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 September 30, 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 September 30, 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 September 30, 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 and nine months ended September 30, 2015, and September 30, 2014, are as follows:

	Unrealized gains			Unrealized gains			Foreign currency			Net pension and
	(losses) on securities			(losses) on derivative			translation			postretirement
in millions	available for sale			financial instruments			adjustment			benefit costs			Total
Balance at December 31, 2014	$	(4	)	$	(8	)	$	22		$	(366	)	$	(356	)
Other comprehensive income before reclassification, net of income taxes		57			107			(19	)		(38	)		107
Amounts reclassified from accumulated other comprehensive income, net of income taxes (a)		1			(44	)		1			19			(23	)
Net current-period other comprehensive income, net of income taxes		58			63			(18	)		(19	)		84
Balance at September 30, 2015		54		$	55		$	4		$	(385	)	$	(272	)
Balance at June 30, 2015		—		$	7		$	9		$	(361	)	$	(345	)
Other comprehensive income before reclassification, net of income taxes	$	54			65			(5	)		(38	)		76
Amounts reclassified from accumulated other comprehensive income, net of income taxes (a)		—			(17	)		—			14			(3	)
Net current-period other comprehensive income, net of income taxes		54			48			(5	)		(24	)		73
Balance at September 30, 2015		54		$	55		$	4		$	(385	)	$	(272	)
Balance at December 31, 2013	$	(63	)	$	(11	)	$	42		$	(320	)	$	(352	)
Other comprehensive income before reclassification, net of income taxes		24			25			(9	)		—			40
Amounts reclassified from accumulated other comprehensive income, net of income taxes (a)		—			(29	)		(3	)		19			(13	)
Net current-period other comprehensive income, net of income taxes		24			(4	)		(12	)		19			27
Balance at September 30, 2014	$	(39	)	$	(15	)	$	30		$	(301	)	$	(325	)
Balance at June 30, 2014	$	(6	)	$	(7	)	$	39		$	(315	)	$	(289	)
Other comprehensive income before reclassification, net of income taxes		(33	)		3			(9	)		—			(39	)
Amounts reclassified from accumulated other comprehensive income, net of income taxes (a)		—			(11	)		—			14			3
Net current-period other comprehensive income, net of income taxes		(33	)		(8	)		(9	)		14			(36	)
Balance at September 30, 2014	$	(39	)	$	(15	)	$	30		$	(301	)	$	(325	)

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

79

Our reclassifications out of AOCI for the three and nine months ended September 30, 2015, and September 30, 2014, are as follows:

Nine months ended September 30, 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 available for sale securities
Realized losses	$	(1	)	Other income
		(1	)	Income (loss) from continuing operations before income taxes
		—		Income taxes
	$	(1	)	Income (loss) from continuing operations
Unrealized gains (losses) on derivative financial instruments
Interest rate	$	73		Interest income — Loans
Interest rate		(3	)	Interest expense — Long term debt
		70		Income (loss) from continuing operations before income taxes
		26		Income taxes
	$	44		Income (loss) from continuing operations
Foreign currency translation adjustment
	$	(2	)	Corporate services income
		(2	)	Income (loss) from continuing operations before income taxes
		(1	)	Income taxes
	$	(1	)	Income (loss) from continuing operations
Net pension and postretirement benefit costs
Amortization of losses	$	(13	)	Personnel expense
Settlement loss		(19	)	Personnel expense
Amortization of unrecognized prior service cost		1		Personnel expense
		(31	)	Income (loss) from continuing operations before income taxes
		(12	)	Income taxes
	$	(19	)	Income (loss) from continuing operations
Three months ended September 30, 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	$	28		Interest income — Loans
Interest rate		(1	)	Interest expense — Long term debt
		27		Income (loss) from continuing operations before income taxes
		10		Income taxes
	$	17		Income (loss) from continuing operations
Foreign currency translation adjustment
	$	(1	)	Corporate services income
		(1	)	Income (loss) from continuing operations before income taxes
		(1	)	Income taxes
		—		Income (loss) from continuing operations
Net pension and postretirement benefit costs
Amortization of losses	$	(4	)	Personnel expense
Settlement loss		(19	)	Personnel expense
		(23	)	Income (loss) from continuing operations before income taxes
		(9	)	Income taxes
	$	(14	)	Income (loss) from continuing operations

80

Nine months ended September 30, 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	$	49		Interest income — Loans
Interest rate		(3	)	Interest expense — Long term debt
		46		Income (loss) from continuing operations before income taxes
		17		Income taxes
	$	29		Income (loss) from continuing operations
Foreign currency translation adjustment
	$	3		Corporate services income
		3		Income (loss) from continuing operations before income taxes
		—		Income taxes
	$	3		Income (loss) from continuing operations
Net pension and postretirement benefit costs
Amortization of losses	$	(12	)	Personnel expense
Settlement loss		(20	)	Personnel expense
		(32	)	Income (loss) from continuing operations before income taxes
		(13	)	Income taxes
	$	(19	)	Income (loss) from continuing operations
Three months ended September 30, 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	$	18		Interest income — Loans
Interest rate		(1	)	Interest expense — Long term debt
Foreign exchange contracts		1		Other income
		18		Income (loss) from continuing operations before income taxes
		7		Income taxes
	$	11		Income (loss) from continuing operations
Net pension and postretirement benefit costs
Amortization of losses	$	(4	)	Personnel expense
Settlement loss		(20	)	Personnel expense
		(24	)	Income (loss) from continuing operations before income taxes
		(10	)	Income taxes
	$	(14	)	Income (loss) from continuing operations

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17. Shareholders’ Equity

Comprehensive Capital Plan

As previously reported and as authorized by the Board and pursuant to our 2015 capital plan submitted to and not objected to by the Federal Reserve, we have authority to repurchase up to $725 million of our common shares, which include repurchases to offset issuances of common shares under our employee compensation plans. During the third quarter of 2015, we completed $123 million of common share repurchases under this authorization.

Consistent with our 2015 capital plan, the Board declared a quarterly dividend of $.075 per common share for the third quarter of 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.

Preferred Stock

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

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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- and nine- month periods ended September 30, 2015, and September 30, 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 that 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.

83

In the third quarter of 2015, we enhanced the approach used to determine the commercial reserve factors used in estimating the quantitative component of the commercial ALLL. In addition, we began utilizing an enhanced framework to quantify commercial ALLL adjustments resulting from qualitative factors not fully captured within the statistical analysis of incurred loss. The enhancements of the methodology are described in Note 1 (“Basis of Presentation and Accounting Policies”) under the heading “Allowance for Loan and Lease Losses.” As a result of the methodology enhancements, the current period provision for credit losses within each business segment has increased or decreased accordingly. The impact of the increases and decreases on the business segment provision for credit losses was not significant.

• 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.

84

Three months ended September 30,	Key Community Bank						Key Corporate Bank
dollars in millions	2015			2014			2015			2014
SUMMARY OF OPERATIONS
Net interest income (TE)	$	379		$	359		$	220		$	215
Noninterest income		200			199			234			185
Total revenue (TE) (a)		579			558			454			400
Provision for credit losses		18			21			30			2
Depreciation and amortization expense		14			16			11			8
Other noninterest expense		434			425			235			205
Income (loss) from continuing operations before income taxes (TE)		113			96			178			185
Allocated income taxes and TE adjustments		42			36			42			51
Income (loss) from continuing operations		71			60			136			134
Income (loss) from discontinued operations, net of taxes		—			—			—			—
Net income (loss)		71			60			136			134
Less: Net income (loss) attributable to noncontrolling interests		—			—			(2	)		—
Net income (loss) attributable to Key	$	71		$	60		$	138		$	134
AVERAGE BALANCES (b)
Loans and leases	$	31,039		$	30,103		$	26,425		$	23,215
Total assets (a)		33,090			32,173			32,163			28,268
Deposits		51,234			50,303			18,809			17,599
OTHER FINANCIAL DATA
Net loan charge-offs (b)	$	21		$	28		$	20		$	(1	)
Return on average allocated equity (b)		10.49	%		8.89	%		28.65	%		31.59	%
Return on average allocated equity		10.49			8.89			28.65			31.59
Average full-time equivalent employees (c)		7,326			7,573			2,173			1,998
Nine months ended September 30,	Key Community Bank						Key Corporate Bank
dollars in millions	2015			2014			2015			2014
SUMMARY OF OPERATIONS
Net interest income (TE)	$	1,098		$	1,084		$	661		$	621
Noninterest income		589			574			671			566
Total revenue (TE) (a)		1,687			1,658			1,332			1,187
Provision for credit losses		50			48			77			7
Depreciation and amortization expense		42			49			31			22
Other noninterest expense		1,297			1,274			681			599
Income (loss) from continuing operations before income taxes (TE)		298			287			543			559
Allocated income taxes and TE adjustments		111			107			143			158
Income (loss) from continuing operations		187			180			400			401
Income (loss) from discontinued operations, net of taxes		—			—			—			—
Net income (loss)		187			180			400			401
Less: Net income (loss) attributable to noncontrolling interests		—			—			(1	)		2
Net income (loss) attributable to Key	$	187		$	180		$	401		$	399
AVERAGE BALANCES (b)
Loans and leases	$	30,804		$	29,979		$	25,488		$	22,702
Total assets (a)		32,853			32,063			31,236			27,829
Deposits		50,808			50,151			19,029			16,655
OTHER FINANCIAL DATA
Net loan charge-offs (b)	$	69		$	89		$	28		$	(15	)
Return on average allocated equity (b)		9.27	%		8.81	%		28.82	%		33.74	%
Return on average allocated equity		9.27			8.81			28.82			33.74
Average full-time equivalent employees (c)		7,392			7,613			2,096			1,952

(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	)	$	6		$	595		$	580		$	3		$	1		$	598		$	581
	39			38			473			422			(3	)		(5	)		470			417
	35			44			1,068			1,002			—			(4	)		1,068			998
	(4	)		(4	)		44			19			1			—			45			19
	2			3			27			27			35			38			62			65
	13			17			682			647			(20	)		(6	)		662			641
	24			28			315			309			(16	)		(36	)		299			273
	(2	)		1			82			88			(3	)		(18	)		79			70
	26			27			233			221			(13	)		(18	)		220			203
	—			—			—			—			(3	)		(17	)		(3	)		(17	)
	26			27			233			221			(16	)		(35	)		217			186
	—			—			(2	)		—			—			—			(2	)		—
$	26		$	27		$	235		$	221		$	(16	)	$	(35	)	$	219		$	186
$	1,780		$	2,396		$	59,244		$	55,714		$	37		$	82		$	59,281		$	55,796
	26,871			26,017			92,124			86,458			527			665			92,651			87,123
	455			564			70,498			68,466			(29	)		(130	)		70,469			68,336
$	1		$	4		$	42		$	31		$	(1	)		—		$	41		$	31
	33.27	%		24.63	%		19.00	%		18.28	%		(.90	)%		(1.26	)%		8.30	%		7.69	%
	33.27			24.63			19.00			18.28			(1.11	)		(2.45	)		8.19			7.05
	14			34			9,513			9,605			4,042			4,300			13,555			13,905
Other Segments						Total Segments						Reconciling Items						Key
2015			2014			2015			2014			2015			2014			2015			2014
	—		$	21		$	1,759		$	1,726		$	7		$	3		$	1,766		$	1,729
$	146			174			1,406			1,314			(11	)		(7	)		1,395			1,307
	146			195			3,165			3,040			(4	)		(4	)		3,161			3,036
	(7	)		(19	)		120			36			1			(1	)		121			35
	6			9			79			80			112			115			191			195
	38			54			2,016			1,927			(103	)		(65	)		1,913			1,862
	109			151			950			997			(14	)		(53	)		936			944
	7			27			261			292			(11	)		(42	)		250			250
	102			124			689			705			(3	)		(11	)		686			694
	—			—			—			—			5			(41	)		5			(41	)
	102			124			689			705			2			(52	)		691			653
	2			4			1			6			—			—			1			6
$	100		$	120		$	688		$	699		$	2		$	(52	)	$	690		$	647
$	1,908		$	2,639		$	58,200		$	55,320		$	63		$	68		$	58,263		$	55,388
	26,617			25,944			90,706			85,836			618			676			91,324			86,512
	454			591			70,291			67,397			(62	)		(138	)		70,229			67,259
$	8		$	8		$	105		$	82			—		$	(1	)	$	105		$	81
	40.39	%		36.38	%		18.81	%		19.66	%		(.05	)%		(.26	)%		6.48	%		6.59	%
	40.39			36.38			18.81			19.66			.07			(1.22	)		6.52			6.20
	15			50			9,503			9,615			4,022			4,327			13,525			13,942

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19. Subsequent Event

Planned Acquisition of First Niagara Financial Group, Inc.

On October 30, 2015, we announced that KeyCorp has entered into a definitive agreement and plan of merger (“Agreement”) pursuant to which it will acquire all of the outstanding capital stock of First Niagara Financial Group, Inc. (NASDAQ: FNFG) (“First Niagara”). Under the terms of the Agreement, at the effective time of the merger, each share of First Niagara common stock will be converted into the right to receive (i) 0.680 of a share of KeyCorp common stock and (ii) $2.30 in cash. The exchange ratio of KeyCorp stock for First Niagara stock is fixed and will not adjust based on changes in KeyCorp’s share trading price. First Niagara equity awards outstanding immediately prior to the effective time of the merger will be converted into equity awards for KeyCorp common stock as provided in the Agreement. Each share of First Niagara’s Fixed Rate-to-Floating Rate Perpetual Non-Cumulative Preferred Stock, Series B, will be converted into a share of a newly created series of preferred stock of KeyCorp having substantially the same terms as First Niagara’s preferred stock. Based on the closing price of KeyCorp common shares on Thursday, October 29, 2015, of $13.38 and assuming First Niagara has 356.272 million shares outstanding on a fully-diluted basis, the value of the total consideration to be paid by KeyCorp pursuant to the Agreement is approximately $4.1 billion.

The merger is currently expected to be completed during the third quarter of 2016 and is subject to customary closing conditions including the approval of regulators and the shareholders of both KeyCorp and First Niagara.

As of September 30, 2015, First Niagara, headquartered in Buffalo, New York, had 394 branches with approximately $39 billion of total assets and $29 billion of deposits.

87

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 September 30, 2015 and 2014, and the related consolidated statements of income and comprehensive income for the three- and nine-month periods ended September 30, 2015 and 2014, and the consolidated statements of changes in equity and cash flows for the nine-month periods ended September 30, 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
November 2, 2015	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 and year-to-date periods ended September 30, 2015, and September 30, 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 evaluated a component of Tier 1 capital, known as Tier 1 common equity, using the definitions of Tier 1 capital and total risk-weighted assets that were in effect in 2014, as well as a transition plan for full implementation of the Regulatory Capital Rules. The “Capital” section of this report under the heading “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 and Accounting Policies”).

89

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						Nine months ended September 30,
dollars in millions, except per share amounts	Third			Second			First			Fourth			Third			2015			2014
FOR THE PERIOD
Interest income	$	661		$	652		$	636		$	646		$	639		$	1,949		$	1,908
Interest expense		70			68			65			64			64			203			197
Net interest income		591			584			571			582			575			1,746			1,711
Provision for credit losses		45			41			35			22			19			121			35
Noninterest income		470			488			437			490			417			1,395			1,307
Noninterest expense		724			711			669			704			706			2,104			2,057
Income (loss) from continuing operations before income taxes		292			320			304			346			267			916			926
Income (loss) from continuing operations attributable to Key		222			235			228			251			203			685			688
Income (loss) from discontinued operations, net of taxes (a)		(3	)		3			5			2			(17	)		5			(41	)
Net income (loss) attributable to Key		219			238			233			253			186			690			647
Income (loss) from continuing operations attributable to Key common shareholders		216			230			222			246			197			668			671
Income (loss) from discontinued operations, net of taxes (a)		(3	)		3			5			2			(17	)		5			(41	)
Net income (loss) attributable to Key common shareholders		213			233			227			248			180			673			630
PER COMMON SHARE
Income (loss) from continuing operations attributable to Key common shareholders	$	.26		$	.27		$	.26		$	.29		$	.23		$	.79		$	.77
Income (loss) from discontinued operations, net of taxes (a)		—			—			.01			—			(.02	)		.01			(.05	)
Net income (loss) attributable to Key common shareholders (b)		.26			.28			.27			.29			.21			.80			.72
Income (loss) from continuing operations attributable to Key common shareholders — assuming dilution	$	.26		$	.27		$	.26		$	.28		$	.23		$	.78		$	.76
Income (loss) from discontinued operations, net of taxes — assuming dilution (a)		—			—			.01			—			(.02	)		.01			(.05	)
Net income (loss) attributable to Key common shareholders — assuming dilution (b)		.25			.27			.26			.28			.21			.79			.71
Cash dividends paid		.075			.075			.065			.065			.065			.215			.185
Book value at period end		12.47			12.21			12.12			11.91			11.74			12.47			11.74
Tangible book value at period end		11.17			10.92			10.84			10.65			10.47			11.17			10.47
Market price:
High		15.46			15.70			14.74			14.18			14.62			15.70			14.70
Low		12.65			13.90			12.04			11.55			12.97			12.04			12.25
Close		13.01			15.02			14.16			13.90			13.33			13.01			13.33
Weighted-average common shares outstanding (000)		831,430			839,454			848,580			858,811			867,350			839,758			875,728
Weighted-average common shares and potential common shares outstanding (000) (c)		838,880			846,312			857,122			886,186			874,122			847,371			882,451
AT PERIOD END
Loans	$	60,085		$	58,264		$	57,953		$	57,381		$	56,155		$	60,085		$	56,155
Earning assets		83,779			82,964			82,624			82,269			78,310			83,779			78,310
Total assets		95,422			94,606			94,206			93,821			89,784			95,422			89,784
Deposits		71,073			70,669			71,622			71,998			68,456			71,073			68,456
Long-term debt		10,310			10,267			8,713			7,875			7,172			10,310			7,172
Key common shareholders’ equity		10,415			10,300			10,313			10,239			10,195			10,415			10,195
Key shareholders’ equity		10,705			10,590			10,603			10,530			10,486			10,705			10,486
PERFORMANCE RATIOS — FROM CONTINUING OPERATIONS
Return on average total assets		.95	%		1.03	%		1.03	%		1.12	%		.92	%		1.00	%		1.06	%
Return on average common equity		8.30			8.96			8.76			9.50			7.68			8.67			8.84
Return on average tangible common equity (d)		9.27			10.01			9.80			10.64			8.55			9.69			9.83
Net interest margin (TE)		2.87			2.88			2.91			2.94			2.96			2.88			2.98
Cash efficiency ratio (d)		66.9			65.1			65.1			64.4			69.7			65.7			66.7
PERFORMANCE RATIOS — FROM CONSOLIDATED OPERATIONS
Return on average total assets		.92	%		1.02	%		1.03	%		1.10	%		.81	%		.99	%		.95	%
Return on average common equity		8.19			9.07			8.96			9.58			7.01			8.74			8.30
Return on average tangible common equity (d)		9.14			10.14			10.02			10.72			7.81			9.76			9.23
Net interest margin (TE)		2.84			2.85			2.88			2.93			2.94			2.85			2.94
Loan-to-deposit (e)		89.3			87.3			86.9			84.6			87.4			89.3			87.4
CAPITAL RATIOS AT PERIOD END
Key shareholders’ equity to assets		11.22	%		11.19	%		11.26	%		11.22	%		11.68	%		11.22	%		11.68	%
Key common shareholders’ equity to assets		10.91			10.89			10.95			10.91			11.36			10.91			11.36
Tangible common equity to tangible assets (d)		9.90			9.86			9.92			9.88			10.26			9.90			10.26
Common Equity Tier 1 (d)		10.47			10.71			10.64			N/A			N/A			10.47			N/A
Tier 1 common equity (d)		N/A			N/A			N/A			11.17			11.26			N/A			11.26
Tier 1 risk-based capital		10.87			11.11			11.04			11.90			12.01			10.87			12.01
Total risk-based capital		12.47			12.66			12.79			13.89			14.10			12.47			14.10
Leverage		10.68			10.74			10.91			11.26			11.15			10.68			11.15
TRUST AND BROKERAGE ASSETS
Assets under management	$	35,158		$	38,399		$	39,281		$	39,157		$	39,283		$	35,158		$	39,283
Nonmanaged and brokerage assets		46,796			48,789			49,508			49,147			48,273			46,796			48,273
OTHER DATA
Average full-time-equivalent employees		13,555			13,455			13,591			13,590			13,905			13,525			13,942
Branches		972			989			992			994			997			972			997

(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 slowed again in the third quarter of 2015, with real GDP tracking .9% after a second quarter rebound in real GDP of 3.9% on the heels of strong inventory investment. While confidence remains high, job growth has slowed, substantial wage growth has yet to materialize, and consumer spending remains modest. Additionally, housing market data has underwhelmed, with slow growth in single-family construction and only modest gains in existing home sales and home price appreciation in 2015. Concerns regarding the global economy, particularly slowing in emerging markets and the uncertainty around Chinese growth, as well as prospective Federal Reserve actions and mixed economic data in the U.S. have kept markets in check throughout the third quarter of 2015.

In the third quarter of 2015, weak income growth continued to be a constraint on consumption, although fundamentals appear to be strengthening. Real spending was modest, growing slowly at .4% in July and August. Vehicle sales continued their positive momentum, averaging a seasonally adjusted annual rate of 17.8 million units in the third quarter, up from an average seasonally adjusted annual rate of 17.2 million units during the second quarter. Consumer confidence was high, with the Conference Board measure ending the third quarter of 2015 at 103, up from 99.8 at the end of the second quarter and remaining at levels not seen since before the Great Recession. Inflation remains well below the Federal Reserve target, with the core personal consumption expenditure index up just 1.3% year-over-year as of August 2015.

In the labor market, average monthly job gains decreased to 167,000 during the third quarter of 2015, compared to the average of 231,000 in the second quarter of 2015. Gains were broad, with improvement across industry sectors. The unemployment rate declined, finishing the quarter at 5.1%; however, this decrease was driven in part by post-recession low labor force participation as 350,000 workers exited the labor force in September. In addition, wage growth has yet to accelerate, with average hourly earnings ending the quarter flat month-over-month after rising .4% in August and .2% in July.

The housing market was fairly sluggish in the third quarter of 2015, with different results between indicators on a month-to-month basis. Existing home sales increased, ending the third quarter of 2015 at 5.6 million units, or 1.3% quarter-over-quarter, and reversing a 5% month-over-month drop in August sales. New home sales ended the third quarter of 2015 flat from the second quarter as September sales dropped 11.5% from August. Additionally, housing starts were flat over the quarter, totaling a seasonally adjusted annual rate of 1.21 million in September 2015, as multi-family starts contracted 11.1% over the quarter. Permits ended the third quarter 17.5% lower, primarily due to a significant decline in multi-family dwelling permits of 37.1% over the quarter. Home price appreciation modestly increased, up 6.9% year-over-year in August 2015.

The Federal Reserve remained accommodative in the third 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, and global growth is slowing, particularly in emerging economies. Weaker economic data, geopolitical tensions, and cautious forward guidance have held rates in check. The yield on the 10-year U.S. Treasury declined 37 basis points during the third quarter of 2015 and finished the quarter at 2.06% as volatility in U.S. and global equity markets put downward pressure on yields.

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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-offs to average loans ratio and provision for credit losses to average loans 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 and nine months ended September 30, 2015.

Figure 2. Evaluation of Our Long-Term Financial Goals

KEY Business Model	Key Metrics (a)	3Q15			YTD 2015			Targets
Balance sheet efficiency	Loan-to-deposit ratio (b)		89	%		89	%		90 - 100	%
Moderate risk profile	Net loan charge-offs to average loans		.27	%		.24	%		.40 - .60	%
	Provision for credit losses to average loans		.30	%		.28	%
High quality, diverse revenue streams	Net interest margin		2.87	%		2.88	%		> 3.50	%
	Noninterest income to total revenue		44	%		44	%		> 40	%
Positive operating leverage	Cash efficiency ratio (c)		66.9	%		65.7	%		< 60	%
Disciplined capital management	Return on average assets		.95	%		1.00	%		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 measure: see Figure 7 for reconciliation.

Strategic developments

We initiated the following actions during the first nine 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. During the first nine months of 2015, we generated positive operating leverage, with revenue up 4.1% from 2014. Net interest income benefited from solid loan growth, driven by a 12% increase in average commercial, financial and agricultural loans. Noninterest income benefited from increases in several of our core fee-based businesses: investment banking and debt placement fees, which had record high fees in the second quarter of 2015 due to stronger financial advisory fees and loan syndications, trust and investment services income, corporate services income, and cards and payments income. Although noninterest expense increased from prior year, this increase was primarily due to higher performance-based compensation and 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 nine months ended September 30, 2015, net loan charge-offs were .24% of average loans and the provision for credit losses was .28% of average loans, both well below our targeted range.

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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 issuances of common shares under our employee compensation plans. Common share repurchases under the 2015 capital plan began in the second quarter of 2015. During the second and third quarters of 2015, we completed $252 million of common share repurchases under this authorization.

• Our 2015 capital plan also proposed a 15% increase in our quarterly common share dividend to $.075 per share, which was approved by our Board in May 2015. Consistent with our 2015 capital plan, we made a dividend payment of $.075 per common share for each of the second and third quarters of 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. 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.

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 September 30, 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	$	12,007		$	5,335		$	2,370		$	4,540		$	9,485		$	4,871		$	7,747		$	2,886		$	1,993		$	51,234
Percent of total		23.5	%		10.4	%		4.6	%		8.9	%		18.5	%		9.5	%		15.1	%		5.6	%		3.9	%		100.0	%
Average commercial loans	$	3,600		$	1,745		$	864		$	1,164		$	2,385		$	615		$	1,853		$	847		$	3,140		$	16,213
Percent of total		22.2	%		10.8	%		5.3	%		7.2	%		14.7	%		3.8	%		11.4	%		5.2	%		19.4	%		100.0	%
Average home equity loans	$	3,265		$	1,562		$	500		$	834		$	1,266		$	837		$	1,277		$	662		$	78		$	10,281
Percent of total		31.8	%		15.2	%		4.9	%		8.1	%		12.3	%		8.1	%		12.4	%		6.4	%		.8	%		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 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 September 30, 2015, Key had an estimated Common Equity Tier 1 Capital Ratio of 10.37% under the fully phased-in Regulatory Capital Rules. Also at September 30, 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 September 30, 2015 Estimated			Minimum January 1, 2015			Phase-in Period	Minimum January 1, 2019
Common Equity Tier 1 (a)		10.4	%		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		10.7			6.0		None		6.0
Tier 1 Capital + Capital conservation buffer		—			6.0		1/1/16 - 1/1/19		8.5
Total Capital		12.4			8.0		None		8.0
Total Capital + Capital conservation buffer		—			8.0		1/1/16 - 1/1/19		10.5
Leverage (c)		10.5			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.

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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 September 30, 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 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. For the third quarter of 2015, our estimated Modified LCR was above 100%. In the future, we may change the composition of our investment portfolio, increase the size of the overall investment portfolio, and modify product offerings to enhance or optimize our liquidity position.

KeyBank will not be subject to the LCR or the Modified LCR under the Liquidity Coverage Rules unless the OCC affirmatively determines that application of the LCR or the Modified LCR 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.

Net stable funding ratio

As previously disclosed in the “Supervision and Regulation” section of Item 1. Business of our 2014 Form 10-K under the heading “Basel III capital and liquidity frameworks,” the Basel Committee finalized the Basel III net stable funding ratio (“NSFR”) in October 2014. The Basel Committee published final Basel III NSFR disclosure standards in June 2015. The federal banking regulators, however, have yet to issue any proposal to implement either the final Basel III NSFR or the final Basel III NSFR disclosure standards.

Common equity surcharge

In July 2015, the Federal Reserve adopted a final rule to implement the common equity surcharge on U.S. global systemically important banks (“G-SIBs”). The final rule is effective December 1, 2015, although the surcharge, which will be added to the capital conservation buffer under the Regulatory Capital Rules, will be phased in during the January 1, 2016, through January 1, 2019, period. Notably this final rule applies to advanced approaches banking organizations, not “standardized approach” banking organizations like Key. In addition, unlike what was proposed under the U.S. G-SIB Notice of Proposed Rulemaking, the final rule does not require KeyCorp to determine annually whether it is a U.S. G-SIB unless it becomes an advanced approaches banking organization.

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Highlights of Our Performance

Financial performance

For the third quarter of 2015, we announced net income from continuing operations attributable to Key common shareholders of $216 million, or $.26 per common share. Our third quarter of 2015 results compare to net income from continuing operations attributable to Key common shareholders of $197 million, or $.23 per common share, for the third quarter of 2014.

Our taxable-equivalent net interest income was $598 million for the third quarter of 2015, and the net interest margin was 2.87%. These results compare to taxable-equivalent net interest income of $581 million and a net interest margin of 2.96% for the third quarter of 2014. The increase in net interest income reflects higher earning asset balances moderated by lower earning asset yields, which also drove the decline in the net interest margin. For the full year of 2015, without the benefit of higher rates, we expect low-single-digit growth in net interest income compared to the prior year. We expect the net interest margin to be relatively stable with the third quarter of 2015, reflecting continued elevated levels of liquidity.

Our noninterest income was $470 million for the third quarter of 2015, compared to $417 million for the year-ago quarter. The increase from the prior year was primarily attributable to strength in our core fee-based businesses, which included a full-quarter impact of the September 2014 acquisition of Pacific Crest Securities. The third quarter of 2015 included $21 million of higher investment banking and debt placement fees, $15 million of increased corporate services income, and $9 million of higher trust and investment services income. Additionally, cards and payments income increased $5 million due to higher revenue from credit card and merchant fees. For the full year of 2015, we expect mid-single-digit growth in our noninterest income compared to the prior year.

Our noninterest expense was $724 million for the third quarter of 2015, compared to $706 million in the third quarter of last year. Personnel costs increased $21 million year-over-year primarily due to increased performance-based compensation related to a strong capital markets business performance, along with a full-quarter impact of the September 2014 acquisition of Pacific Crest Securities. Nonpersonnel expense remained relatively stable as lower occupancy costs offset an increase in business services and professional fees. For the full year of 2015, we expect noninterest expense to be relatively stable with 2014.

Average loans were $59.3 billion for the third quarter of 2015, an increase of $3.5 billion compared to the third quarter of 2014. The loan growth occurred primarily in the commercial, financial and agricultural portfolio, which increased $3.9 billion and was broad-based across our commercial lines of business. Consumer loans declined $214 million as a result of the run-off in our consumer exit portfolios. Our core consumer loan portfolio remained relatively stable to the year-ago quarter. 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 $70 billion for the third quarter of 2015, an increase of $2.2 billion compared to the year-ago quarter. NOW and money market deposit accounts increased by $2.3 billion, and noninterest-bearing deposits increased by $966 million, reflecting continued growth in the commercial mortgage servicing business and inflows from commercial and consumer clients. These increases were partially offset by a decline in certificates of deposit.

Our provision for credit losses was $45 million for the third quarter of 2015, compared to $19 million for the year-ago quarter. Our ALLL was $790 million, or 1.31% of total period-end loans at September 30, 2015, compared to 1.43% at September 30, 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 third quarter of 2015 totaled $41 million, or .27% of average total loans, compared to .22% 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 September 30, 2015, our nonperforming loans totaled $400 million and represented .67% of period-end portfolio loans, compared to .71% at September 30, 2014. Nonperforming assets at September 30, 2015, totaled $417 million and represented .69% of period-end portfolio loans and OREO and other nonperforming assets, compared to .74% at September 30, 2014.

Our capital ratios remain strong. Our tangible common equity and Tier 1 risk-based capital ratios at September 30, 2015, are 9.90% and 10.87%, respectively, compared to 10.26% and 12.01%, respectively, at September 30, 2014. In addition, our Common Equity Tier 1 ratio is 10.47% at September 30, 2015. We continue to return capital to our shareholders by repurchasing common shares and through our quarterly common share dividend. In the third quarter of 2015, we repurchased $123 million of common shares and paid a cash dividend of $.075 per common share under our 2015 capital plan authorization.

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

Figure 6. Results of Operations

	Three months ended								Nine months ended
in millions, except per share amounts	9-30-15			6-30-15		9-30-14			9-30-15		9-30-14
Summary of operations
Income (loss) from continuing operations attributable to Key	$	222		$	235	$	203		$	685	$	688
Income (loss) from discontinued operations, net of taxes (a)		(3	)		3		(17	)		5		(41	)
Net income (loss) attributable to Key	$	219		$	238	$	186		$	690	$	647
Income (loss) from continuing operations attributable to Key	$	222		$	235	$	203		$	685	$	688
Less: Dividends on Series A Preferred Stock		6			5		6			17		17
Income (loss) from continuing operations attributable to Key common shareholders		216			230		197			668		671
Income (loss) from discontinued operations, net of taxes (a)		(3	)		3		(17	)		5		(41	)
Net income (loss) attributable to Key common shareholders	$	213		$	233	$	180		$	673	$	630
Per common share — assuming dilution
Income (loss) from continuing operations attributable to Key common shareholders	$	.26		$	.27	$	.23		$	.78	$	.76
Income (loss) from discontinued operations, net of taxes (a)		—			—		(.02	)		.01		(.05	)
Net income (loss) attributable to Key common shareholders (b)	$	.25		$	.27	$	.21		$	.79	$	.71

(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 and reconciliation of 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.

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Figure 7. GAAP to Non-GAAP Reconciliations

	Three months ended
dollars in millions	9-30-15			6-30-15			3-31-15			12-31-14			9-30-14
Tangible common equity to tangible assets at period end
Key shareholders’ equity (GAAP)	$	10,705		$	10,590		$	10,603		$	10,530		$	10,486
Less: Intangible assets (a)		1,084			1,085			1,088			1,090			1,105
Series A Preferred Stock (b)		281			281			281			282			282
Tangible common equity (non-GAAP)	$	9,340		$	9,224		$	9,234		$	9,158		$	9,099
Total assets (GAAP)	$	95,422		$	94,606		$	94,206		$	93,821		$	89,784
Less: Intangible assets (a)		1,084			1,085			1,088			1,090			1,105
Tangible assets (non-GAAP)	$	94,338		$	93,521		$	93,118		$	92,731		$	88,679
Tangible common equity to tangible assets ratio (non-GAAP)		9.90	%		9.86	%		9.92	%		9.88	%		10.26	%
Common Equity Tier 1 at period end
Key shareholders’ equity (GAAP)	$	10,705		$	10,590		$	10,603			—			—
Less: Series A Preferred Stock (b)		281			281			281			—			—
Common Equity Tier 1 capital before adjustments and deductions		10,424			10,309			10,322			—			—
Less: Goodwill, net of deferred taxes		1,036			1,034			1,036			—			—
Intangible assets, net of deferred taxes		29			33			36			—			—
Deferred tax assets		1			1			1			—			—
Net unrealized gains (losses) on available-for-sale securities, net of deferred taxes		54			—			52			—			—
Accumulated gains (losses) on cash flow hedges, net of deferred taxes		21			(20	)		(8	)		—			—
Amounts in AOCI attributed to pension and postretirement benefit costs, net of deferred taxes		(385	)		(361	)		(364	)		—			—
Total Common Equity Tier 1 capital	$	9,668		$	9,622		$	9,569			—			—
Net risk-weighted assets (regulatory)	$	92,307		$	89,851		$	89,967			—			—
Common Equity Tier 1 ratio (non-GAAP)		10.47	%		10.71	%		10.64	%		—			—
Tier 1 common equity at period end
Key shareholders’ equity (GAAP)		—			—			—		$	10,530		$	10,486
Qualifying capital securities		—			—			—			339			340
Less: Goodwill		—			—			—			1,057			1,051
Accumulated other comprehensive income (loss) (c)		—			—			—			(395	)		(366	)
Other assets (d)		—			—			—			83			110
Total Tier 1 capital (regulatory)		—			—			—			10,124			10,031
Less: Qualifying capital securities		—			—			—			339			340
Series A Preferred Stock (b)		—			—			—			282			282
Total Tier 1 common equity (non-GAAP)		—			—			—		$	9,503		$	9,409
Net risk-weighted assets (regulatory)		—			—			—		$	85,100		$	83,547
Tier 1 common equity ratio (non-GAAP)		—			—			—			11.17	%		11.26	%
Pre-provision net revenue
Net interest income (GAAP)	$	591		$	584		$	571		$	582		$	575
Plus: Taxable-equivalent adjustment		7			7			6			6			6
Noninterest income (GAAP)		470			488			437			490			417
Less: Noninterest expense (GAAP)		724			711			669			704			706
Pre-provision net revenue from continuing operations (non-GAAP)	$	344		$	368		$	345		$	374		$	292
Average tangible common equity
Average Key shareholders’ equity (GAAP)	$	10,614		$	10,590		$	10,570		$	10,562		$	10,473
Less: Intangible assets (average) (e)		1,083			1,086			1,089			1,096			1,037
Series A Preferred Stock (average)		290			290			290			291			291
Average tangible common equity (non-GAAP)	$	9,241		$	9,214		$	9,191		$	9,175		$	9,145
Return on average tangible common equity from continuing operations
Net income (loss) from continuing operations attributable to Key common shareholders (GAAP)	$	216		$	230		$	222		$	246		$	197
Average tangible common equity (non-GAAP)		9,241			9,214			9,191			9,175			9,145
Return on average tangible common equity from continuing operations (non-GAAP)		9.27	%		10.01	%		9.80	%		10.64	%		8.55	%
Return on average tangible common equity consolidated
Net income (loss) attributable to Key common shareholders (GAAP)	$	213		$	233		$	227		$	248		$	180
Average tangible common equity (non-GAAP)		9,241			9,214			9,191			9,175			9,145
Return on average tangible common equity consolidated (non-GAAP)		9.14	%		10.14	%		10.02	%		10.72	%		7.81	%
Cash efficiency ratio
Noninterest expense (GAAP)	$	724		$	711		$	669		$	704		$	706
Less: Intangible asset amortization (GAAP)		9			9			9			10			10
Adjusted noninterest expense (non-GAAP)	$	715		$	702		$	660		$	694		$	696
Net interest income (GAAP)	$	591		$	584		$	571		$	582		$	575
Plus: Taxable-equivalent adjustment		7			7			6			6			6
Noninterest income (GAAP)		470			488			437			490			417
Total taxable-equivalent revenue (non-GAAP)	$	1,068		$	1,079		$	1,014		$	1,078		$	998
Cash efficiency ratio (non-GAAP)		66.9	%		65.1	%		65.1	%		64.4	%		69.7	%

(a) For the three months ended September 30, 2015, June 30, 2015, March 31, 2015, December 31, 2014, and September 30, 2014, intangible assets exclude $50 million, $55 million, $61 million, $68 million, and $72 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.

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Figure 7. GAAP to Non-GAAP Reconciliations, continued

	Three months ended
dollars in millions	9-30-15
Common Equity Tier 1 under the Regulatory Capital Rules (estimates)
Common Equity Tier 1 under current Regulatory Capital Rules	$	9,668
Adjustments from current Regulatory Capital Rules to the fully phased-in Regulatory Capital Rules:
Deferred tax assets and other intangible assets (f)		(46	)
Common Equity Tier 1 anticipated under the fully phased-in Regulatory Capital Rules (g)	$	9,622
Net risk-weighted assets under current Regulatory Capital Rules	$	92,307
Adjustments from current Regulatory Capital Rules to the fully phased-in Regulatory Capital Rules:
Mortgage servicing assets (h)		479
All other assets (i)		1
Total risk-weighted assets anticipated under the fully phased-in Regulatory Capital Rules (g)	$	92,787
Common Equity Tier 1 ratio under the fully phased-in Regulatory Capital Rules (g)		10.37	%

	Nine months ended
dollars in millions	9-30-15			9-30-14
Pre-provision net revenue
Net interest income (GAAP)	$	1,746		$	1,711
Plus: Taxable-equivalent adjustment		20			18
Noninterest income (GAAP)		1,395			1,307
Less: Noninterest expense (GAAP)		2,104			2,057
Pre-provision net revenue from continuing operations (non-GAAP)	$	1,057		$	979
Average tangible common equity
Average Key shareholders’ equity (GAAP)	$	10,591		$	10,435
Less: Intangible assets (average) (j)		1,086			1,020
Preferred Stock, Series A (average)		290			291
Average tangible common equity (non-GAAP)	$	9,215		$	9,124
Return on average tangible common equity from continuing operations
Net income (loss) from continuing operations attributable to Key common shareholders (GAAP)	$	668		$	671
Average tangible common equity (non-GAAP)		9,215			9,124
Return on average tangible common equity from continuing operations (non-GAAP)		9.69	%		9.83	%
Return on average tangible common equity consolidated
Net income (loss) attributable to Key common shareholders (GAAP)	$	673		$	630
Average tangible common equity (non-GAAP)		9,215			9,124
Return on average tangible common equity consolidated (non-GAAP)		9.76	%		9.23	%
Cash efficiency ratio
Noninterest expense (GAAP)	$	2,104		$	2,057
Less: Intangible asset amortization (GAAP)		27			29
Adjusted noninterest expense (non-GAAP)	$	2,077		$	2,028
Net interest income (GAAP)	$	1,746		$	1,711
Plus: Taxable-equivalent adjustment		20			18
Noninterest income (GAAP)		1,395			1,307
Total taxable-equivalent revenue (non-GAAP)	$	3,161		$	3,036
Cash efficiency ratio (non-GAAP)		65.7	%		66.8	%

(e) For the three months ended September 30, 2015, June 30, 2015, March 31, 2015, December 31, 2014, and September 30, 2014, average intangible assets exclude $52 million, $58 million, $64 million, $69 million, and $76 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%.

(i) Includes the phase-in of deferred tax assets arising from temporary differences at 250% risk-weight. Additionally, under the fully implemented rule, certain deferred tax assets and intangible assets subject to the transition provision are no longer required to be risk-weighted because they are deducted directly from capital.

(j) For the nine months ended September 30, 2015, and September 30, 2014, average intangible assets exclude $58 million and $82 million, respectively, of average ending purchased credit card receivables.

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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 $598 million for the third quarter of 2015, and the net interest margin was 2.87%. These results compare to taxable-equivalent net interest income of $581 million and a net interest margin of 2.96% for the third quarter of 2014. The increase in net interest income reflects higher earning asset balances moderated by lower earning asset yields, which also drove the decline in the net interest margin.

For the nine months ended September 30, 2015, taxable-equivalent net interest income increased $37 million and the net interest margin declined by 10 basis points compared to the same period one year ago. The increase in net interest income was primarily attributable to earning asset growth while the decline in the net interest margin was the result of lower earning asset yields.

Average loans were $59.3 billion for the third quarter of 2015, an increase of $3.5 billion compared to the third quarter of 2014. The loan growth occurred primarily in the commercial, financial and agricultural portfolio, which increased $3.9 billion and was broad-based across our commercial lines of business. Consumer loans declined $214 million as a result of the run-off in our consumer exit portfolios. Our core consumer loan portfolio remained relatively stable to the year-ago quarter.

Our average securities available for sale portfolio increased $2.3 billion from the third quarter of 2014 due to higher levels of liquidity, driven by deposit growth and long-term debt issuances. These actions benefited KeyBank’s liquidity coverage ratio and credit ratings profile.

Average deposits, excluding deposits in foreign office, totaled $70 billion for the third quarter of 2015, an increase of $2.2 billion compared to the year-ago quarter. NOW and money market deposit accounts increased by $2.3 billion, and noninterest-bearing deposits increased by $966 million, reflecting continued growth in the commercial mortgage servicing business and inflows from commercial and consumer clients. These increases were partially offset by a decline in certificates of deposit.

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

	Third Quarter 2015								Second Quarter 2015
	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)	$	30,374		$	244		3.19	%	$	29,017		$	233		3.23	%
Real estate — commercial mortgage		7,988			73		3.65			7,981			74		3.70
Real estate — construction		1,164			11		3.78			1,199			11		3.60
Commercial lease financing		3,946			35		3.57			3,981			36		3.58
Total commercial loans		43,472			363		3.32			42,178			354		3.36
Real estate — residential mortgage		2,258			24		4.19			2,237			23		4.22
Home equity:
Key Community Bank		10,281			101		3.88			10,266			99		3.89
Other		229			4		7.87			244			5		7.86
Total home equity loans		10,510			105		3.96			10,510			104		3.98
Consumer other — Key Community Bank		1,597			26		6.51			1,571			26		6.52
Credit cards		759			21		10.74			737			19		10.57
Consumer other:
Marine		645			10		6.38			702			11		6.30
Other		40			1		8.00			43			1		7.77
Total consumer other		685			11		6.47			745			12		6.38
Total consumer loans		15,809			187		4.69			15,800			184		4.69
Total loans		59,281			550		3.69			57,978			538		3.72
Loans held for sale		939			10		3.96			1,263			12		3.91
Securities available for sale (b), (e)		14,247			74		2.11			13,360			73		2.17
Held-to-maturity securities (b)		4,923			24		1.95			4,965			24		1.91
Trading account assets		699			5		2.50			805			5		2.55
Short-term investments		2,257			1		.26			3,228			2		.26
Other investments (e)		696			4		2.52			713			5		2.48
Total earning assets		83,042			668		3.21			82,312			659		3.21
Allowance for loan and lease losses		(790	)							(793	)
Accrued income and other assets		10,399								10,140
Discontinued assets		2,118								2,194
Total assets	$	94,769							$	93,853
LIABILITIES
NOW and money market deposit accounts	$	36,289			15		.16		$	36,122			14		.16
Savings deposits		2,371			—		.02			2,393			—		.02
Certificates of deposit ($100,000 or more) (f)		1,985			6		1.27			2,010			6		1.25
Other time deposits		3,064			6		.70			3,136			5		.70
Deposits in foreign office		492			—		.23			583			1		.23
Total interest-bearing deposits		44,201			27		.24			44,244			26		.24
Federal funds purchased and securities sold under repurchase agreements		859			—		.08			557			—		.02
Bank notes and other short-term borrowings		567			2		1.51			657			2		1.39
Long-term debt (f), (g)		7,895			41		2.19			6,968			40		2.30
Total interest-bearing liabilities		53,522			70		.53			52,426			68		.52
Noninterest-bearing deposits		26,268								26,594
Accrued expense and other liabilities		2,236								2,039
Discontinued liabilities(g)		2,118								2,194
Total liabilities		84,144								83,253
EQUITY
Key shareholders’ equity		10,614								10,590
Noncontrolling interests		11								10
Total equity		10,625								10,600
Total liabilities and equity	$	94,769							$	93,853
Interest rate spread (TE)							2.68	%							2.69	%
Net interest income (TE) and net interest margin (TE)					598		2.87	%					591		2.88	%
TE adjustment (b)					7								7
Net interest income, GAAP basis				$	591							$	584

(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 $88 million, $88 million, $87 million, $90 million, and $92 million of assets from commercial credit cards for the three months ended September 30, 2015, June 30, 2015, March 31, 2015, December 31, 2014, and September 30, 2014, respectively.

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

First Quarter 2015								Fourth Quarter 2014								Third Quarter 2014
Average Balance			Interest (a)		Yield/ Rate (a)			Average Balance			Interest (a)		Yield/ Rate (a)			Average Balance			Interest (a)		Yield/ Rate (a)
$	28,321		$	223		3.18	%	$	27,188		$	223		3.24	%	$	26,456		$	218		3.28	%
	8,095			73		3.67			8,161			77		3.73			8,142			78		3.79
	1,139			11		3.90			1,077			10		3.90			1,030			10		3.78
	4,070			36		3.57			4,119			38		3.67			4,145			38		3.66
	41,625			343		3.33			40,545			348		3.40			39,773			344		3.44
	2,229			24		4.26			2,223			24		4.28			2,204			24		4.35
	10,316			99		3.89			10,365			103		3.91			10,368			102		3.91
	260			5		7.82			274			5		7.84			290			6		7.80
	10,576			104		3.99			10,639			108		4.01			10,658			108		4.01
	1,546			25		6.66			1,552			27		6.78			1,534			26		6.87
	732			20		11.01			728			20		11.02			716			20		11.12
	755			12		6.35			802			13		6.29			856			13		6.23
	49			1		7.32			52			—		7.52			55			2		7.63
	804			13		6.41			854			13		6.36			911			15		6.32
	15,887			186		4.74			15,996			192		4.76			16,023			193		4.78
	57,512			529		3.72			56,541			540		3.79			55,796			537		3.82
	795			7		3.33			871			8		3.72			502			4		3.87
	13,087			70		2.17			12,153			67		2.20			11,939			67		2.25
	4,947			24		1.93			4,947			23		1.91			5,108			25		1.90
	717			5		2.80			868			6		2.84			893			6		2.68
	2,399			2		.27			3,520			2		.27			3,048			2		.19
	742			5		2.79			792			6		2.77			847			4		2.12
	80,199			642		3.23			79,692			652		3.27			78,133			645		3.30
	(793	)							(798	)							(809	)
	10,223								9,868								9,799
	2,271								2,359								4,138
$	91,900							$	91,121							$	91,261
$	34,952			13		.15		$	34,811			13		.14		$	33,969			12		.14
	2,385			—		.02			2,388			—		.02			2,428			1		.02
	2,017			7		1.30			2,277			7		1.25			2,629			8		1.23
	3,217			6		.72			3,306			6		.76			3,413			7		.83
	529			—		.22			543			—		.24			595			—		.23
	43,100			26		.24			43,325			26		.24			43,034			28		.26
	720			—		.03			621			—		.02			1,176			1		.19
	506			2		1.56			772			3		1.17			484			2		1.79
	6,126			37		2.52			5,135			35		2.80			4,868			33		2.88
	50,452			65		.52			49,853			64		.51			49,562			64		.52
	26,269								26,342								25,302
	2,327								1,989								1,768
	2,271								2,359								4,138
	81,319								80,543								80,770
	10,570								10,562								10,473
	11								16								18
	10,581								10,578								10,491
$	91,900							$	91,121							$	91,261
						2.71	%							2.76	%							2.78	%
				577		2.91	%					588		2.94	%					581		2.96	%
				6								6								6
			$	571							$	582							$	575

(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.

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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 September 30, 2014 to three months ended September 30, 2015									From nine months ended September 30, 2014 to nine months ended September 30, 2015
in millions	Average Volume			Yield/ Rate			Net Change (a)			Average Volume			Yield/ Rate			Net Change (a)
INTEREST INCOME
Loans	$	33		$	(20	)	$	13		$	81		$	(58	)	$	23
Loans held for sale		4			2			6			15			1			16
Securities available for sale		12			(5	)		7			22			(15	)		7
Held-to-maturity securities		(1	)		—			(1	)		—			2			2
Trading account assets		(1	)		—			(1	)		(4	)		—			(4	)
Short-term investments		—			(1	)		(1	)		—			1			1
Other investments		(1	)		1			—			(3	)		1			(2	)
Total interest income (TE)		46			(23	)		23			111			(68	)		43
INTEREST EXPENSE
NOW and money market deposit accounts		1			2			3			2			5			7
Savings deposits		—			(1	)		(1	)		—			(1	)		(1	)
Certificates of deposit ($100,000 or more)		(2	)		—			(2	)		(7	)		(2	)		(9	)
Other time deposits		(1	)		—			(1	)		(3	)		(6	)		(9	)
Total interest-bearing deposits		(2	)		1			(1	)		(8	)		(4	)		(12	)
Federal funds purchased and securities sold under repurchase agreements		—			(1	)		(1	)		(1	)		(1	)		(2	)
Long-term debt		17			(9	)		8			32			(12	)		20
Total interest expense		15			(9	)		6			23			(17	)		6
Net interest income (TE)	$	31		$	(14	)	$	17		$	88		$	(51	)	$	37

(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 $470 million for the third quarter of 2015, compared to $417 million for the year-ago quarter, an increase of $53 million, or 12.7%. The increase from the prior year was primarily attributable to strength in our core fee-based businesses, which included a full-quarter impact of the September 2014 acquisition of Pacific Crest Securities. The third quarter of 2015 included $21 million of higher investment banking and debt placement fees, $15 million of increased corporate services income, and $9 million of higher trust and investment services income. Additionally, cards and payments income increased $5 million due to higher revenue from credit card and merchant fees.

For the nine months ended September 30, 2015, noninterest income increased $88 million, or 6.7%, from the same period one year ago. The increase was primarily attributable to strength in our core fee-based businesses: higher investment banking and debt placement fees of $47 million, trust and investment services income of $37 million, corporate services income of $18 million, and card and payments income of $13 million. These increases were partially offset by a decrease of $23 million in operating lease income and other leasing gains.

Figure 10. Noninterest Income

	Three months ended September 30,				Change						Nine months ended September 30,				Change
dollars in millions	2015		2014		Amount			Percent			2015		2014		Amount			Percent
Trust and investment services income	$	108	$	99	$	9			9.1	%	$	328	$	291	$	37			12.7	%
Investment banking and debt placement fees		109		88		21			23.9			318		271		47			17.3
Service charges on deposit accounts		68		68		—			—			192		197		(5	)		(2.5	)
Operating lease income and other leasing gains		15		17		(2	)		(11.8	)		58		81		(23	)		(28.4	)
Corporate services income		57		42		15			35.7			143		125		18			14.4
Cards and payments income		47		42		5			11.9			136		123		13			10.6
Corporate-owned life insurance income		30		26		4			15.4			91		80		11			13.8
Consumer mortgage income		3		3		—			—			10		7		3			42.9
Mortgage servicing fees		11		9		2			22.2			33		35		(2	)		(5.7	)
Net gains (losses) from principal investing		11		9		2			22.2			51		60		(9	)		(15.0	)
Other income (a)		11		14		(3	)		(21.4	)		35		37		(2	)		(5.4	)
Total noninterest income	$	470	$	417	$	53			12.7	%	$	1,395	$	1,307	$	88			6.7	%

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

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Figure 11. Dealer Trading and Derivatives Income (Loss)

	Three months ended September 30,						Change				Nine months ended September 30,						Change
dollars in millions	2015			2014			Amount		Percent		2015			2014			Amount		Percent
Dealer trading and derivatives income (loss), proprietary (a), (b)	$	(4	)	$	(5	)	$	1		N/M	$	(9	)	$	(13	)	$	4		N/M
Dealer trading and derivatives income (loss), nonproprietary (b)		11			(3	)		14		N/M		16			3			13		433.3	%
Total dealer trading and derivatives income (loss)	$	7		$	(8	)	$	15		N/M	$	7		$	(10	)	$	17		N/M

(a) For the quarter ended September 30, 2015, income of $1 million related to foreign exchange and commodity derivative trading was offset by losses related to fixed income, equity securities trading, interest rate, and credit portfolio management activities. For the quarter ended September 30, 2014, income of $1 million related to foreign exchange, interest rate and commodity derivative trading was offset by losses related to equity securities trading, fixed income, 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. Prohibitions and restrictions on proprietary trading activities imposed by the Volcker Rule 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 one of our largest sources 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 and nine months ended September 30, 2015, trust and investment services income increased $9 million, or 9.1%, and $37 million, or 12.7%, respectively, compared to the same periods one year ago. These increases were primarily attributable to the full-period impact of the September 2014 Pacific Crest Securities acquisition as well as an increase in our brokerage commissions.

A significant portion of our trust and investment services income depends on the value and mix of assets under management. At September 30, 2015, our bank, trust, and registered investment advisory subsidiaries had assets under management of $35.2 billion, compared to $39.3 billion at September 30, 2014. As shown in Figure 12, decreases within all of the investment types were primarily attributable to market declines. Client attrition also contributed to the decrease in the securities lending portfolio.

Figure 12. Assets Under Management

	2015						2014
in millions	Third		Second		First		Fourth		Third
Assets under management by investment type:
Equity	$	19,728	$	21,226	$	21,681	$	21,393	$	21,035
Securities lending		2,872		4,438		4,625		4,835		5,514
Fixed income		9,823		9,899		10,127		10,023		9,975
Money market		2,735		2,836		2,848		2,906		2,759
Total	$	35,158	$	38,399	$	39,281	$	39,157	$	39,283

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. Investment banking and debt placement fees increased $21 million, or 23.9%, for the third quarter of 2015 and $47 million, or 17.3%, for the nine months ended September 30, 2015, compared to the same periods one year ago. These increases were primarily driven by strength in debt and equity financing fees as well as the full-period impact of the September 2014 acquisition of Pacific Crest Securities.

Service charges on deposit accounts

Service charges on deposit accounts were flat for the third quarter of 2015 compared to one year ago and decreased $5 million, or 2.5%, for the nine months ended September 30, 2015, compared to the year-ago period. This decrease was primarily due to a decline in overdraft fees.

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Operating lease income and other leasing gains

Operating lease income and other leasing gains decreased $2 million, or 11.8%, for the third quarter of 2015 compared to the year-ago quarter due to product run-off, partially offset by increased gains on lease syndications. For the nine months ended September 30, 2015, operating lease income and other leasing gains declined $23 million, or 28.4%, compared to the same period one year ago. The year-to-date decline was due to a $25 million gain on leveraged lease terminations in 2014. The 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 $5 million, or 11.9%, from the year-ago quarter, and $13 million, or 10.6%, for the nine months ended September 30, 2015, compared to the same period one year ago. The increases were due to higher credit card and merchant fees and increased usage of our corporate purchase and prepaid cards.

Consumer mortgage income

Consumer mortgage income was flat from the year-ago quarter, and increased $3 million, or 42.9%, for the nine months ended September 30, 2015, compared to the same period one year ago. This increase was primarily driven by gains on the sales of consumer mortgage loans.

Mortgage servicing fees

Mortgage servicing fees increased $2 million, or 22.2%, from the year-ago quarter due to higher transactional fees and decreased $2 million, or 5.7%, for the nine months ended September 30, 2015, compared to the same period one year ago due to lower special servicing fees.

Other income

Other income, which consists primarily of gain on sale of certain loans, other service charges, and certain dealer trading income, decreased $3 million, or 21.4%, from the year-ago quarter and decreased $2 million, or 5.4%, for the nine months ended September 30, 2015, compared to the same period one year ago, primarily attributable to changes in various miscellaneous income categories.

Noninterest expense

As shown in Figure 13, noninterest expense was $724 million for the third quarter of 2015, compared to $706 million for the year-ago quarter, representing an increase of $18 million, or 2.5%. Personnel costs increased $21 million year-over-year, primarily due to higher performance-based compensation related to a strong capital markets business performance, along with a full-quarter impact of the September 2014 acquisition of Pacific Crest Securities. Nonpersonnel expense remained relatively stable as lower occupancy costs offset an increase in business services and professional fees.

For the nine months ended September 30, 2015, noninterest expense increased $47 million, or 2.3%, compared to the same period one year ago. Personnel expense increased $41 million, primarily due to higher performance-based compensation, and nonpersonnel expense increased $6 million from one year ago due to changes in several expense categories. The full-period impact of the September 2014 acquisition of Pacific Crest Securities also contributed to these increases.

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Figure 13. Noninterest Expense

	Three months ended September 30,				Change						Nine months ended September 30,				Change
dollars in millions	2015		2014		Amount			Percent			2015		2014		Amount			Percent
Personnel	$	426	$	405	$	21			5.2	%	$	1,223	$	1,182	$	41			3.5	%
Net occupancy		60		66		(6	)		(9.1	)		191		198		(7	)		(3.5	)
Computer processing		41		39		2			5.1			121		118		3			2.5
Business services and professional fees		40		36		4			11.1			115		118		(3	)		(2.5	)
Equipment		22		25		(3	)		(12.0	)		66		73		(7	)		(9.6	)
Operating lease expense		11		11		—			—			34		31		3			9.7
Marketing		17		15		2			13.3			40		33		7			21.2
FDIC assessment		8		9		(1	)		(11.1	)		24		21		3			14.3
Intangible asset amortization		9		10		(1	)		(10.0	)		27		29		(2	)		(6.9	)
OREO expense, net		2		1		1			100.0			5		3		2			66.7
Other expense		88		89		(1	)		(1.1	)		258		251		7			2.8
Total noninterest expense	$	724	$	706	$	18			2.5	%	$	2,104	$	2,057	$	47			2.3	%
Average full-time equivalent employees (a)		13,555		13,905		(350	)		(2.5	)%		13,525		13,942		(417	)		(3.0	)%

(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.

Personnel

As shown in Figure 14, personnel expense, the largest category of our noninterest expense, increased by $21 million, or 5.2%, for the third quarter of 2015 compared to the year-ago quarter. For the nine months ended September 30, 2015, personnel expense increased $41 million, or 3.5%, from the same period one year ago. Salaries and incentive and stock-based compensation expenses increased from one year ago primarily due to higher performance-based compensation and the full-period impact of the September 2014 acquisition of Pacific Crest Securities. These expenses also increased from one year ago due to our investment in senior bankers and client-facing personnel in Key Community Bank and Key Corporate Bank. Employee benefits also increased from the same periods last year due to higher health care and pension costs. These increases were partially offset by a decrease in severance expense.

Figure 14. Personnel Expense

	Three months ended September 30,				Change						Nine months ended September 30,				Change
dollars in millions	2015		2014		Amount			Percent			2015		2014		Amount			Percent
Salaries	$	234	$	227	$	7			3.1	%	$	681	$	667	$	14			2.1	%
Technology contract labor, net		13		11		2			18.2			33		43		(10	)		(23.3	)
Incentive and stock-based compensation		103		89		14			15.7			295		263		32			12.2
Employee benefits		75		71		4			5.6			202		187		15			8.0
Severance		1		7		(6	)		(85.7	)		12		22		(10	)		(45.5	)
Total personnel expense	$	426	$	405	$	21			5.2	%	$	1,223	$	1,182	$	41			3.5	%

Net occupancy

Net occupancy expense decreased $6 million, or 9.1%, for the third quarter of 2015 and $7 million, or 3.5%, for the nine months ended September 30, 2015, compared to the same periods one year ago. These declines were primarily due to lower property reserve charges and rental expenses.

Operating lease expense

Operating lease expense was flat from the year-ago quarter and increased $3 million, or 9.7%, from the nine-month period ended one year ago 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.”

107

Other expense

Other expense comprises various miscellaneous expense items. The $1 million, or 1.1%, decrease in the current quarter and the $7 million, or 2.8%, increase in the first nine months of 2015 compared to the same periods one year ago reflect fluctuations in several of those line items.

Income taxes

We recorded tax expense from continuing operations of $72 million for the third quarter of 2015 and $64 million for the third quarter of 2014. For the first nine months of 2015, we recorded tax expense from continuing operations of $230 million, compared to $232 million for the same period last year.

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 nine months 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 is included in Note 12 (“Income Taxes”) beginning on page 177 of our 2014 Form 10-K.

108

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- and nine-month periods ended September 30, 2015, and September 30, 2014.

In the third quarter of 2015, we enhanced the approach used to determine the commercial reserve factors used in estimating the quantitative component of the commercial ALLL. In addition, we began utilizing an enhanced framework to quantify commercial ALLL adjustments resulting from qualitative factors not fully captured within the statistical analysis of incurred loss. The enhancements of the methodology are described in Note 1 (“Basis of Presentation and Accounting Policies”) under the heading “Allowance for Loan and Lease Losses.” As a result of these methodology enhancements, the current period provision for credit losses within each business segment has increased or decreased accordingly. The impact of the increases and decreases on the business segment provision for credit losses was not significant.

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

(Loss) from Continuing Operations Attributable to Key

	Three months ended September 30,						Change						Nine months ended September 30,						Change
dollars in millions	2015			2014			Amount			Percent			2015			2014			Amount			Percent
REVENUE FROM CONTINUING OPERATIONS (TE)
Key Community Bank	$	579		$	558		$	21			3.8	%	$	1,687		$	1,658		$	29			1.7	%
Key Corporate Bank		454			400			54			13.5			1,332			1,187			145			12.2
Other Segments		35			44			(9	)		(20.5	)		146			195			(49	)		(25.1	)
Total Segments		1,068			1,002			66			6.6			3,165			3,040			125			4.1
Reconciling Items		—			(4	)		4			N/M			(4	)		(4	)		—			N/M
Total	$	1,068		$	998		$	70			7.0	%	$	3,161		$	3,036		$	125			4.1	%
INCOME (LOSS) FROM CONTINUING OPERATIONS ATTRIBUTABLE TO KEY
Key Community Bank	$	71		$	60		$	11			18.3	%	$	187		$	180		$	7			3.9	%
Key Corporate Bank		138			134			4			3.0			401			399			2			.5
Other Segments		26			27			(1	)		(3.7	)		100			120			(20	)		(16.7	)
Total Segments		235			221			14			6.3			688			699			(11	)		(1.6	)
Reconciling Items		(13	)		(18	)		5			N/M			(3	)		(11	)		8			N/M
Total	$	222		$	203		$	19			9.4	%	$	685		$	688		$	(3	)		(.4	)%

Key Community Bank summary of operations

• Positive operating leverage from prior year

• Net income increased to $71 million, up 18.3% from prior year

• Commercial, financial and agricultural loan growth of $1 billion, or 8.7% from prior year

• Average deposits up $931 million, or 1.9% from the prior year

As shown in Figure 16, Key Community Bank recorded net income attributable to Key of $71 million for the third quarter of 2015, compared to net income attributable to Key of $60 million for the year-ago quarter.

Taxable-equivalent net interest income increased by $20 million, or 5.6%, from the third quarter of 2014 due to an increase in average loans and leases of 3.1%, including commercial, financial and agricultural loans, which grew by $1 billion, or 8.7%, from the prior year. Average deposits increased 1.9% from one year ago.

Noninterest income remained relatively stable from the year-ago quarter. Core revenue continues to improve, driven by growth in cards and payments income of $4 million, mostly offset by lower service charges on deposit accounts and a decrease in other income.

The provision for credit losses decreased by $3 million, or 14.3%, from the third quarter of 2014, due to the enhancements to the approach utilized to determine the allowance for loan and lease losses discussed above.

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Noninterest expense increased by $7 million, or 1.6%, from the year-ago quarter. Personnel expense increased $1 million while nonpersonnel expense increased by $6 million.

Figure 16. Key Community Bank

	Three months ended September 30,				Change						Nine months ended September 30,				Change
dollars in millions	2015		2014		Amount			Percent			2015		2014		Amount			Percent
SUMMARY OF OPERATIONS
Net interest income (TE)	$	379	$	359	$	20			5.6	%	$	1,098	$	1,084	$	14			1.3	%
Noninterest income		200		199		1			.5			589		574		15			2.6
Total revenue (TE)		579		558		21			3.8			1,687		1,658		29			1.7
Provision for credit losses		18		21		(3	)		(14.3	)		50		48		2			4.2
Noninterest expense		448		441		7			1.6			1,339		1,323		16			1.2
Income (loss) before income taxes (TE)		113		96		17			17.7			298		287		11			3.8
Allocated income taxes (benefit) and TE adjustments		42		36		6			16.7			111		107		4			3.7
Net income (loss) attributable to Key	$	71	$	60	$	11			18.3	%	$	187	$	180	$	7			3.9	%
AVERAGE BALANCES
Loans and leases	$	31,039	$	30,103	$	936			3.1	%	$	30,804	$	29,979	$	825			2.8	%
Total assets		33,090		32,173		917			2.9			32,853		32,063		790			2.5
Deposits		51,234		50,303		931			1.9			50,808		50,151		657			1.3
Assets under management at period end	$	35,158	$	39,249	$	(4,091	)		(10.4	)%	$	35,158	$	39,249	$	(4,091	)		(10.4	)%

ADDITIONAL KEY COMMUNITY BANK DATA

	Three months ended September 30,						Change						Nine months ended September 30,				Change
dollars in millions	2015			2014			Amount			Percent			2015		2014		Amount			Percent
NONINTEREST INCOME
Trust and investment services income	$	73		$	73			—			—		$	224	$	216	$	8			3.7	%
Services charges on deposit accounts		56			57		$	(1	)		(1.8	)%		159		164		(5	)		(3.0	)
Cards and payments income		43			39			4			10.3			124		113		11			9.7
Other noninterest income		28			30			(2	)		(6.7	)		82		81		1			1.2
Total noninterest income	$	200		$	199		$	1			.5	%	$	589	$	574	$	15			2.6	%
AVERAGE DEPOSITS OUTSTANDING
NOW and money market deposit accounts	$	28,568		$	27,403		$	1,165			4.3	%	$	28,244	$	27,471	$	773			2.8	%
Savings deposits		2,362			2,419			(57	)		(2.4	)		2,374		2,456		(82	)		(3.3	)
Certificates of deposits ($100,000 or more)		1,560			2,072			(512	)		(24.7	)		1,555		2,134		(579	)		(27.1	)
Other time deposits		3,061			3,406			(345	)		(10.1	)		3,134		3,552		(418	)		(11.8	)
Deposits in foreign office		271			320			(49	)		(15.3	)		301		308		(7	)		(2.3	)
Noninterest-bearing deposits		15,412			14,683			729			5.0			15,200		14,230		970			6.8
Total deposits	$	51,234		$	50,303		$	931			1.9	%	$	50,808	$	50,151	$	657			1.3	%
HOME EQUITY LOANS
Average balance	$	10,281		$	10,368
Weighted-average loan-to-value ratio (at date of origination)		71	%		71	%
Percent first lien positions		60			59
OTHER DATA
Branches		972			997
Automated teller machines		1,259			1,290

Key Corporate Bank summary of operations

• Investment banking and debt placement fees up 25.6% from the prior year

• Revenue up 13.5% from the prior year

• Average loan and lease balances up 13.8% from the prior year

As shown in Figure 17, Key Corporate Bank recorded net income attributable to Key of $138 million for the third quarter of 2015, an increase of $4 million, or 3%, from the same period one year ago.

Taxable-equivalent net interest income increased by $5 million, or 2.3%, compared to the third quarter of 2014. Average earning assets increased $3 billion, or 12.2%, from the year-ago quarter, primarily driven by growth in commercial, financial and agricultural loans. Average deposit balances increased $1.2 billion, or 6.9%, from the year-ago quarter, driven by commercial mortgage servicing deposits and other commercial client inflows.

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Noninterest income was up $49 million, or 26.5% from the prior year. Investment banking and debt placement fees increased $22 million, or 25.6%, driven by strength in syndications, debt underwriting, and financial advisory fees. Corporate services income increased $16 million, or 53.3%, due to higher derivatives income and loan commitment fees. Trust and investment services income increased $9 million, or 34.6%, primarily due to the full-quarter impact of the September 2014 acquisition of Pacific Crest Securities.

The provision for credit losses increased $28 million from the same period one year ago, primarily due to the enhancements to the approach utilized to determine the allowance for loan and lease losses discussed above, as well as a 13.8% increase in average loan balances.

Noninterest expense increased by $33 million, or 15.5%, from the third quarter of 2014. This increase was driven primarily by higher personnel expense, from increased performance-based compensation related to a strong capital markets business performance, along with a full-quarter impact of the September 2014 acquisition of Pacific Crest Securities.

Figure 17. Key Corporate Bank

	Three months ended September 30,					Change						Nine months ended September 30,					Change
dollars in millions	2015			2014		Amount			Percent			2015			2014		Amount			Percent
SUMMARY OF OPERATIONS
Net interest income (TE)	$	220		$	215	$	5			2.3	%	$	661		$	621	$	40			6.4	%
Noninterest income		234			185		49			26.5			671			566		105			18.6
Total revenue (TE)		454			400		54			13.5			1,332			1,187		145			12.2
Provision for credit losses		30			2		28			N/M			77			7		70			N/M
Noninterest expense		246			213		33			15.5			712			621		91			14.7
Income (loss) before income taxes (TE)		178			185		(7	)		(3.8	)		543			559		(16	)		(2.9	)
Allocated income taxes and TE adjustments		42			51		(9	)		(17.6	)		143			158		(15	)		(9.5	)
Net income (loss)		136			134		2			1.5			400			401		(1	)		(.2	)
Less: Net income (loss) attributable to noncontrolling interests		(2	)		—		(2	)		N/M			(1	)		2		(3	)		N/M
Net income (loss) attributable to Key	$	138		$	134	$	4			3.0	%	$	401		$	399	$	2			.5	%
AVERAGE BALANCES
Loans and leases	$	26,425		$	23,215	$	3,210			13.8	%	$	25,488		$	22,702	$	2,786			12.3	%
Loans held for sale		918			481		437			90.9			976			446		530			118.8
Total assets		32,163			28,268		3,895			13.8			31,236			27,829		3,407			12.2
Deposits		18,809			17,599		1,210			6.9			19,029			16,655		2,374			14.3
Assets under management at period end		—		$	34	$	(34	)		N/M			—		$	34	$	(34	)		N/M

ADDITIONAL KEY CORPORATE BANK DATA

	Three months ended September 30,				Change						Nine months ended September 30,				Change
dollars in millions	2015		2014		Amount			Percent			2015		2014		Amount			Percent
NONINTEREST INCOME
Trust and investment services income	$	35	$	26	$	9			34.6	%	$	104	$	75	$	29			38.7	%
Investment banking and debt placement fees		108		86		22			25.6			314		267		47			17.6
Operating lease income and other leasing gains		16		14		2			14.3			49		47		2			4.3
Corporate services income		46		30		16			53.3			110		88		22			25.0
Service charges on deposit accounts		11		11		—			—			32		33		(1	)		(3.0	)
Cards and payments income		4		3		1			33.3			12		11		1			9.1
Payments and services income		61		44		17			38.6			154		132		22			16.7
Mortgage servicing fees		11		9		2			22.2			34		35		(1	)		(2.9	)
Other noninterest income		3		6		(3	)		(50.0	)		16		10		6			60.0
Total noninterest income	$	234	$	185	$	49			26.5	%	$	671	$	566	$	105			18.6	%

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 $26 million for the third quarter of 2015, essentially unchanged compared to net income attributable to Key of $27 million for the same period last year.

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Financial Condition

Loans and loans held for sale

At September 30, 2015, total loans outstanding from continuing operations were $60.1 billion, compared to $57.4 billion at December 31, 2014, and $56.2 billion at September 30, 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 September 30, 2015, December 31, 2014, and September 30, 2014, totaled $1.9 billion, $2.3 billion, and $2.4 billion, respectively. 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 $44.3 billion at September 30, 2015, an increase of $4.1 billion, or 10.3%, compared to September 30, 2014.

Commercial, financial and agricultural. Our commercial, financial and agricultural loans, also referred to as “commercial and industrial,” represented 52% of our total loan portfolio at September 30, 2015, 49% at December 31, 2014, and 48% at September 30, 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 September 30, 2015, December 31, 2014, and September 30, 2014.

Figure 18. Commercial, Financial and Agricultural Loans

	September 30, 2015					December 31, 2014					September 30, 2014
dollars in millions	Amount		Percent of Total			Amount		Percent of Total			Amount		Percent of Total
Industry classification:
Services	$	6,509		20.9	%	$	6,053		21.6	%	$	6,011		22.5	%
Manufacturing		5,035		16.2			4,621		16.5			4,538		17.0
Public utilities		2,289		7.4			1,938		6.9			1,694		6.4
Financial services		2,980		9.6			2,844		10.2			2,752		10.3
Wholesale trade		2,456		7.9			2,294		8.2			2,172		8.1
Retail trade		1,274		4.1			1,089		3.9			981		3.7
Mining		796		2.6			946		3.4			733		2.7
Dealer floor plan		1,289		4.1			1,439		5.2			1,188		4.5
Property management		1,125		3.6			834		3.0			911		3.4
Transportation		1,805		5.8			1,407		5.0			1,183		4.4
Building contractors		665		2.1			683		2.4			590		2.2
Agriculture/forestry/fishing		692		2.2			675		2.4			550		2.1
Insurance		329		1.1			257		.9			210		.8
Public administration		744		2.4			501		1.8			556		2.1
Communications		237		.8			196		.7			168		.6
Other		2,870		9.2			2,205		7.9			2,446		9.2
Total	$	31,095		100.0	%	$	27,982		100.0	%	$	26,683		100.0	%

Commercial, financial and agricultural loans increased $4.4 billion, or 16.5% from the same period last year, with Key Corporate Bank increasing $3.8 billion and Key Community Bank up $718 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 8.3% and 11%, respectively, when compared to one year ago. The services and manufacturing industries represented approximately 21% and 16%, respectively, of the total commercial, financial and agricultural loan portfolio at September 30, 2015, and approximately 23% and 17%, respectively, at September 30, 2014. At the end of each period provided in Figure 18 above, loans in the services and manufacturing industry classifications accounted for approximately 37%, 38%, and 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 $498 million, or 8.3%, compared to last year. Loans in the manufacturing classification grew by $497 million, or 11% 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 increased by $595 million, or 35.1%, compared to the same period one year ago due to growth in the wind and solar electric power business.

Our loans in the financial services and transportation classifications increased 8.3% and 52.6%, respectively, compared to the prior year. The increase in financial services loans was primarily attributable to growth in real estate investment trust 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 approximately 2% of total loans outstanding at September 30, 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 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 commercial real estate 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 commercial real estate loans, compared to 59% one year ago. KeyBank Real Estate Capital generally focuses on larger owners and operators of commercial real estate.

Commercial real estate loans totaled $9.3 billion at both September 30, 2015, and September 30, 2014, and represented 15% and 17% of our total loan portfolio at September 30, 2015, and September 30, 2014, respectively. These loans, which include both owner- and nonowner-occupied properties, represented 21% and 23% of our commercial loan portfolio at September 30, 2015, and September 30, 2014, respectively. We continue to de-risk the portfolio by changing our focus from developers to owners of completed and stabilized commercial real estate.

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 September 30, 2015, our commercial real estate 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 September 30, 2015, nonowner-occupied loans represented 11% of our total loans and owner-occupied loans represented 4% of our total loans. The average size of mortgage loans originated during the third quarter of 2015 was $6.3 million, and our largest mortgage loan at September 30, 2015, had a balance of $75 million. At September 30, 2015, our average construction loan commitment was $8.3 million, our largest construction loan commitment was $48 million, and our largest construction loan amount outstanding was $42.5 million.

Also shown in Figure 19, 73% of our commercial real estate loans at September 30, 2015, were for nonowner-occupied properties compared to 71% at September 30, 2014. Approximately 15% of these loans were construction loans at September 30, 2015, compared to 14% at September 30, 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
September 30, 2015
Nonowner-occupied:
Retail properties	$	191	$	102	$	66	$	124	$	239	$	61	$	145	$	928		10.0	%	$	143	$	785
Multifamily properties		380		183		579		581		856		157		201		2,937		31.8			539		2,398
Health facilities		196		—		155		154		297		285		32		1,119		12.1			150		969
Office buildings		149		7		179		95		64		68		—		562		6.1			53		509
Warehouses		230		2		44		101		31		79		159		646		7.0			45		601
Manufacturing facilities		31		—		2		5		33		2		6		79		.9			25		54
Hotels/Motels		37		—		11		6		—		6		—		60		.6			—		60
Residential properties		1		—		26		2		2		12		—		43		.5			8		35
Land and development		14		—		6		11		11		9		—		51		.5			40		11
Other		64		12		3		20		32		80		86		297		3.2			15		282
Total nonowner-occupied		1,293		306		1,071		1,099		1,565		759		629		6,722		72.7			1,018		5,704
Owner-occupied		1,058		6		279		567		56		562		—		2,528		27.3			52		2,476
Total	$	2,351	$	312	$	1,350	$	1,666	$	1,621	$	1,321	$	629	$	9,250		100.0	%	$	1,070	$	8,180
December 31, 2014
Total	$	2,518	$	307	$	1,261	$	1,668	$	1,393	$	1,315	$	685	$	9,147				$	1,100	$	8,047
September 30, 2014
Total	$	2,426	$	360	$	1,293	$	1,695	$	1,453	$	1,261	$	824	$	9,312				$	1,036	$	8,276
September 30, 2015
Nonowner-occupied:
Nonperforming loans		—		—		—	$	7		—	$	9		—	$	16		N/M		$	7	$	9
Accruing loans past due 90 days or more		—		—		—		—		—		4		—		4		N/M			—		4
Accruing loans past due 30 through 89 days		—		—	$	3		3		—		—		—		6		N/M			—		6

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 nine months of 2015, nonperforming loans related to nonowner-occupied properties decreased by $5 million from December 31, 2014, to $16 million at September 30, 2015, and decreased by $9 million when compared to September 30, 2014. Our nonowner-occupied commercial real estate portfolio has increased by 2%, or approximately $108 million, since September 30, 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 9% of commercial loans at September 30, 2015, and 10% at September 30, 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 nine months of 2015, we had $51 million of new restructured commercial loans compared to $3 million of new restructured commercial loans in the first nine 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

in millions	September 30, 2015		June 30, 2015		March 31, 2015		December 31, 2014		September 30, 2014
Commercial TDRs by Note Type
Tranche A	$	61	$	70	$	39	$	40	$	35
Total Commercial TDRs	$	61	$	70	$	39	$	40	$	35
Commercial TDRs by Accrual Status
Nonaccruing	$	57	$	66	$	35	$	36	$	24
Accruing		4		4		4		4		11
Total Commercial TDRs	$	61	$	70	$	39	$	40	$	35

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, commercial real estate), 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.

Mortgage and construction loans with a loan-to-value ratio greater than 1.0 are 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. As of September 30, 2015, we did not have any mortgage and construction loans that had a loan-to-value ratio greater than 1.0.

Consumer loan portfolio

Consumer loans outstanding decreased by $214 million, or 1.3%, from one year ago. The home equity portfolio is the largest segment of our consumer loan portfolio. Approximately 98% of this portfolio at September 30, 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 $98 million, or .9%, 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 September 30, 2015, and 59% at September 30, 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 September 30, 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	Third			Second			First			Fourth			Third
SOURCES OF PERIOD-END LOANS
Key Community Bank	$	10,282		$	10,296		$	10,270		$	10,366		$	10,380
Other		222			236			253			267			283
Total	$	10,504		$	10,532		$	10,523		$	10,633		$	10,663
Nonperforming loans at period end	$	181		$	184		$	191		$	195		$	184
Net loan charge-offs for the period		3			8			5			6			7
Yield for the period		3.96	%		3.98	%		3.99	%		4.01	%		4.01	%

Loans held for sale

As shown in Note 3 (“Loans and Loans Held for Sale”), our loans held for sale increased to $916 million at September 30, 2015, from $734 million at December 31, 2014, and $784 million at September 30, 2014.

At September 30, 2015, loans held for sale included $74 million of commercial, financial and agricultural loans, which increased $44 million from September 30, 2014, $806 million of commercial mortgage loans, which increased $81 million from September 30, 2014, and $26 million of residential mortgage loans, which increased $7 million from September 30, 2014.

Loan sales

As shown in Figure 22, during the first nine months of 2015, we sold $4.5 billion of commercial real estate loans, $450 million of residential real estate loans, $249 million of commercial loans, and $211 million of commercial lease financing loans. Most of these sales came from the held-for-sale portfolio; however, $89 million of these loan sales related to the held-to-maturity portfolio.

Loan sales classified as held for sale generated net gains of $75 million in the first nine 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 nine months of 2015 and all of 2014.

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

in millions	Commercial		Commercial Real Estate		Commercial Lease Financing		Residential Real Estate		Total
2015
Third quarter	$	150	$	1,246	$	100	$	142	$	1,638
Second quarter		41		2,210		48		188		2,487
First quarter		58		1,010		63		120		1,251
Total	$	249	$	4,466	$	211	$	450	$	5,376
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

	September 30,		June 30,		March 31,		December 31,		September 30,
in millions	2015		2015		2015		2014		2014
Commercial real estate loans	$	206,893	$	203,315	$	201,397	$	191,407	$	179,293
Education loans (a)		1,398		1,459		1,521		1,589		1,655
Commercial lease financing		779		709		701		722		709
Commercial loans		340		337		347		344		340
Total	$	209,410	$	205,820	$	203,966	$	194,062	$	181,997

(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 $1.7 billion of the $209 billion of loans administered or serviced at September 30, 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 $19.3 billion at September 30, 2015, compared to $18.4 billion at December 31, 2014, and $17.2 billion at September 30, 2014. Available-for-sale securities were $14.4 billion at September 30, 2015, compared to $13.4 billion at December 31, 2014, and $12.2 billion at September 30, 2014. Held-to-maturity securities were $4.9 billion at September 30, 2015, compared to $5 billion at December 31, 2014, and $5 billion at September 30, 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

	September 30,		December 31,		September 30,
in millions	2015		2014		2014
FHLMC	$	4,694	$	5,666	$	5,988
FNMA		4,810		4,998		5,253
GNMA		9,749		7,636		5,922
Total (a)	$	19,253	$	18,300	$	17,163

(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 September 30, 2015, we had $14.3 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 $12.2 billion at September 30, 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 nine months 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 prepare 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

dollars in millions	States and Political Subdivisions			Collateralized Mortgage Obligations (a)			Other Mortgage- Backed Securities (a)			Other Securities (b)		Total			Weighted- Average Yield (c)
September 30, 2015
Remaining maturity:
One year or less	$	2		$	299		$	1			—	$	302			3.14	%
After one through five years		9			11,074			1,631		$	21		12,735			2.11
After five through ten years		4			630			695			7		1,336			2.13
After ten years		—			—			3			—		3			5.42
Fair value	$	15		$	12,003		$	2,330		$	28	$	14,376			—
Amortized cost		14			11,938			2,309			27		14,288			2.13	%
Weighted-average yield (c)		6.22	%		2.12	%		2.13	%		—		2.13	% (d)		—
Weighted-average maturity		3.3 years			3.8 years			3.9 years			4.1 years		3.8 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	%
September 30, 2014
Fair value	$	27		$	10,009		$	2,177		$	32	$	12,245			—
Amortized cost		26			10,096			2,156			28		12,306			2.28	%

(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 $28 million of securities at September 30, 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-
dollars in millions	Mortgage Obligations			Mortgage-backed Securities			Other Securities			Total			Average Yield (a)
September 30, 2015
Remaining maturity:
One year or less		—			—		$	9		$	9			2.34	%
After one through five years	$	4,299			—			11			4,310			1.89
After five through ten years		—		$	617			—			617			2.71
Amortized cost	$	4,299		$	617		$	20		$	4,936			1.99	%
Fair value		4,300			620			20			4,940			—
Weighted-average yield		1.89	%		2.71	%		2.64	%(b)		1.99	%(b)		—
Weighted-average maturity		3.3 years			6.2 years			1.9 years			3.7 years			—
December 31, 2014
Amortized cost	$	4,755		$	240		$	20		$	5,015			1.95	%
Fair value		4,713			241			20			4,974			—
September 30, 2014
Amortized cost	$	4,977			—		$	20		$	4,997			1.92	%
Fair value		4,891			—			20			4,911			—

(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 September 30, 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 49% of other investments at September 30, 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 $66 million at September 30, 2015, $104 million at December 31, 2014, and $115 million at September 30, 2014, while the fair value of the indirect investments was $271 million at September 30, 2015, $302 million at December 31, 2014, and $353 million at September 30, 2014. Under the requirements of the Volcker Rule, we will be required to dispose of some or all of our indirect principal investments. 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 September 30, 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 and an indirect ownership interest in a partnership, that are carried at fair value, as well as other types of investments that generally are carried at cost. The real-estate-related investments were valued at $9 million at September 30, 2015, $10 million at December 31, 2014, and $13 million at September 30, 2014. The indirect investment in a partnership was valued at $4 million at September 30, 2015, December 31, 2014, and September 30, 2014. These investments 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 nine months of 2015, net gains from our principal investing activities (including results attributable to noncontrolling interests) totaled $51 million, which includes $39 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. The composition of our average deposits is shown in Figure 8 in the section entitled “Net interest income.” During the third quarter of 2015, average domestic deposits were $70 billion and represented 84% of the funds we used to support loans and other earning assets, compared to $67.7 billion and 87% during the third quarter of 2014. NOW and money market deposit accounts increased $2.3 billion, and noninterest-bearing deposits increased $966 million, reflecting continued growth in the commercial mortgage servicing business and inflows from commercial and consumer clients. These increases were partially offset by a decline in certificates of deposit.

Wholesale funds, consisting of deposits in our foreign office and short-term borrowings, averaged $1.9 billion during the third quarter of 2015, compared to $2.3 billion during the third quarter of 2014. The change from the third quarter of 2014 was caused by a decrease of $317 million in federal funds purchased and securities sold under agreements to repurchase and a decline of $103 million in foreign office deposits, partially offset by an $83 million increase in bank notes and other short-term borrowings.

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Capital

At September 30, 2015, our shareholders’ equity was $10.7 billion, up $175 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.

During the third quarter of 2015, we repurchased $123 million of common shares under our 2015 capital plan authorization.

Dividends

As previously reported, our 2015 capital plan proposed an increase in our quarterly common share dividend from $.065 to $.075 per share, which was approved by our Board 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.

Consistent with the 2015 capital plan, we made a dividend payment of $.075 per share, or $63 million, on our common shares during the third 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 third quarter of 2015.

Common shares outstanding

Our common shares are traded on the NYSE under the symbol KEY with 27,385 holders of record at September 30, 2015. Our book value per common share was $12.47 based on 835.3 million shares outstanding at September 30, 2015, compared to $11.91 per common share based on 859.4 million shares outstanding at December 31, 2014, and $11.74 per common share based on 868.5 million shares outstanding at September 30, 2014. At September 30, 2015, our tangible book value per common share was $11.17, compared to $10.65 per common share at December 31, 2014, and $10.47 per common share at September 30, 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	Third			Second			First			Fourth			Third
Shares outstanding at beginning of period		843,608			850,920			859,403			868,477			876,823
Common shares repurchased		(8,386	)		(8,794	)		(14,087	)		(9,786	)		(8,830	)
Shares reissued (returned) under employee benefit plans		63			1,482			5,571			712			484
Series A Preferred Stock exchanged for common shares		—			—			33			—			—
Shares outstanding at end of period		835,285			843,608			850,920			859,403			868,477

As shown above, common shares outstanding decreased by 8.3 million shares during the third quarter of 2015 due to share repurchases under our 2015 capital plan, partially offset by the net activity in our employee benefit plans.

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At September 30, 2015, we had 181.7 million treasury shares, compared to 157.6 million treasury shares at December 31, 2014, and 148.5 million treasury shares at September 30, 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 September 30, 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 11.22% at September 30, 2015, compared to 11.22% at December 31, 2014, and 11.68% at September 30, 2014. Our tangible common equity to tangible assets ratio was 9.90% at September 30, 2015, compared to 9.88% at December 31, 2014, and 10.26% at September 30, 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 September 30, 2015, our Tier 1 risk-based capital ratio, total risk-based capital ratio, and Tier 1 leverage ratio were 10.87%, 12.47%, and 10.68%, respectively, compared to 11.90%, 13.89%, and 11.26%, respectively, at December 31, 2014, and 12.01%, 14.10%, and 11.15%, respectively, at September 30, 2014. In addition, as of January 1, 2015, Key and KeyBank (consolidated) were each required to maintain a minimum Common Equity Tier 1 capital ratio of 4.5%. At September 30, 2015, our Common Equity Tier 1 capital ratio was 10.47%.

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 basis points, to our Tier 1 risk-based capital ratio of 10.87% and Tier 1 leverage ratio of 10.68% at September 30, 2015. The trust preferred securities contribute $340 million, or 37 basis points, to our total risk-based capital ratio of 12.47% at September 30, 2015. The new minimum capital and leverage ratios under the Regulatory Capital Rules together with the estimated ratios of Key at September 30, 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 September 30, 2015. Moreover, after accounting for the phase-out of our trust preferred securities as Tier 1 eligible (and as Tier 2 instead) as of September 30, 2015, we estimate KeyCorp would still qualify for the “well capitalized” capital category under the Regulatory Capital Rules, with an estimated Tier 1 risk-based capital ratio, estimated Tier 1 leverage ratio, estimated Common Equity Tier 1 capital ratio, and estimated total risk-based capital ratio of 10.78%, 10.59%, 10.47%, and 12.47%, 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 SIFIs, 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

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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 10.47% at September 30, 2015.

At September 30, 2015, for Key’s consolidated operations, we had a federal net deferred tax asset of $211 million and a state deferred tax asset of $28 million, compared to a federal net deferred tax asset of $195 million and a state deferred tax asset of $22 million at December 31, 2014, and a federal net deferred tax asset of $176 million and a state deferred tax asset of $21 million at September 30, 2014. We had a valuation allowance against the gross deferred tax assets associated with certain state net operating loss carryforwards and state credit carryforwards of less than $1 million at September 30, 2015, and at December 31, 2014, and $1 million at September 30, 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 September 30, 2015, this balance was approximately $1 million.

Figure 28 represents the details of our regulatory capital position at September 30, 2015, under the Regulatory Capital Rules. Figure 29 represents the details of our regulatory capital position at December 31, 2014, and September 30, 2014.

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

dollars in millions	September 30, 2015
COMMON EQUITY TIER 1
Key shareholders’ equity (GAAP)	$	10,705
Less: Series A Preferred Stock (a)		281
Common Equity Tier 1 capital before adjustments and deductions		10,424
Less: Goodwill, net of deferred taxes		1,036
Intangible assets, net of deferred taxes		29
Deferred tax assets		1
Net unrealized gains (losses) on available-for-sale securities, net of deferred taxes		54
Accumulated gains (losses) on cash flow hedges, net of deferred taxes		21
Amounts in AOCI attributed to pension and postretirement benefit costs, net of deferred taxes		(385	)
Total Common Equity Tier 1 capital	$	9,668
TIER 1 CAPITAL
Common Equity Tier 1	$	9,668
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		10,033
TIER 2 CAPITAL
Tier 2 capital instruments and related surplus		614
Allowance for losses on loans and liability for losses on lending-related commitments (b)		868
Net unrealized gains on available-for-sale preferred stock classified as an equity security		—
Less: Deductions		—
Total Tier 2 capital		1,482
Total risk-based capital	$	11,515
RISK-WEIGHTED ASSETS
Risk-weighted assets on balance sheet	$	69,101
Risk-weighted off-balance sheet exposure		22,625
Market risk-equivalent assets		581
Gross risk-weighted assets		92,307
Less: Excess allowance for loan and lease losses		—
Net risk-weighted assets	$	92,307
AVERAGE QUARTERLY TOTAL ASSETS	$	93,982
CAPITAL RATIOS
Tier 1 risk-based capital		10.87	%
Total risk-based capital		12.47
Leverage (c)		10.68
Common Equity Tier 1		10.47

(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 $23 million of allowance classified as “discontinued assets” on the balance sheet at September 30, 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			September 30, 2014
TIER 1 CAPITAL
Key shareholders’ equity	$	10,530		$	10,486
Qualifying capital securities		339			340
Less: Goodwill		1,057			1,051
Accumulated other comprehensive income (a)		(395	)		(366	)
Other assets (b)		83			110
Total Tier 1 capital		10,124			10,031
TIER 2 CAPITAL
Allowance for losses on loans and liability for losses on lending-related commitments (c)		859			870
Net unrealized gains on equity securities available for sale		1			2
Qualifying long-term debt		840			880
Total Tier 2 capital		1,700			1,752
Total risk-based capital	$	11,824		$	11,783
TIER 1 COMMON EQUITY
Tier 1 capital	$	10,124		$	10,031
Less: Qualifying capital securities		339			340
Series A Preferred Stock (d)		282			282
Total Tier 1 common equity	$	9,503		$	9,409
RISK-WEIGHTED ASSETS
Risk-weighted assets on balance sheet	$	66,054		$	65,245
Risk-weighted off-balance sheet exposure		19,360			18,721
Less: Goodwill		1,057			1,051
Other assets (b)		120			295
Plus: Market risk-equivalent assets		863			927
Gross risk-weighted assets		85,100			83,547
Less: Excess allowance for loan and lease losses		—			—
Net risk-weighted assets	$	85,100		$	83,547
AVERAGE QUARTERLY TOTAL ASSETS	$	91,116		$	91,283
CAPITAL RATIOS
Tier 1 risk-based capital		11.90	%		12.01	%
Total risk-based capital		13.89			14.10
Leverage (e)		11.26			11.15
Tier 1 common equity		11.17			11.26

(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 September 30, 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 $31 million of allowance classified as “discontinued assets” on the balance sheet at December 31, 2014, and September 30, 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 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 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. The Risk Committee of our Board provides oversight of trading market risks. The ERM Committee and the Market Risk Committee regularly review and discuss market risk reports prepared by our 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.

The MRM is an independent risk management function that partners with the lines of business to identify, measure, and monitor market risks throughout our company. The 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. The 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” beginning on page 118 of our 2014 Form 10-K 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. The 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.

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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.

• 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 September 30, 2015, and September 30, 2014. The 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 $1.3 million at September 30, 2015, and $1.1 million at September 30, 2014. The increase in aggregate VaR was primarily due to the increased exposure in our credit derivative portfolio and the composition of our fixed income portfolio. Figure 30 summarizes our VaR at the 99% confidence level for significant portfolios of covered positions for the three months ended September 30, 2015, and September 30, 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 September 30,								Three months ended September 30,
in millions	High		Low		Mean		September 30,		High		Low		Mean		September 30,
Trading account assets:
Fixed income	$	.9	$	.3	$	.5	$	.6	$	.7	$	.3	$	.5	$	.4
Derivatives:
Interest rate	$	.1		—	$	.1	$	.1	$	.2	$	.1	$	.1	$	.1
Credit		.4	$	.1		.3		.4		.3		.1		.2		.3

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 $3.8 million at September 30, 2015, and $3.4 million at September 30, 2014. Figure 31 summarizes our stressed VaR for significant portfolios of covered positions for the three months ended September 30, 2015, and September 30, 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 September 30,								Three months ended September 30,
in millions	High		Low		Mean		September 30,		High		Low		Mean		September 30,
Trading account assets:
Fixed income	$	2.6	$	1.0	$	1.6	$	1.9	$	2.1	$	1.0	$	1.5	$	1.2
Derivatives:
Interest rate	$	.4	$	.1	$	.2	$	.2	$	.7	$	.2	$	.4	$	.2
Credit		1.3		.4		.8		1.3		1.0		.4		.6		1.0

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 the 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. The Risk Committee of our Board provides oversight of nontrading market risk. The ERM Committee and the ALCO 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 MRM, as the second line of defense, provides additional oversight.

• “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 (e.g., deposits used to fund loans) do not mature or reprice at the same time.

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• “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 September 30, 2015, and September 30, 2014. At September 30, 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 September 30, 2015.

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Figure 32. Simulated Change in Net Interest Income

September 30, 2015
Basis point change assumption (short-term rates)	-25		+200
Tolerance level	-4.00	%	-4.00	%
Interest rate risk assessment	-.54	%	2.39	%
September 30, 2014
Basis point change assumption (short-term rates)	-25		+200
Tolerance level	-4.00	%	-4.00	%
Interest rate risk assessment	-1.04	%	3.34	%

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 September 30, 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

	September 30, 2015
						Weighted-Average								September 30, 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)	$	10,705	$	74			2.5		1.0	%		.2	%	$	9,300	$	(10	)
Receive fixed/pay variable — conventional debt		7,004		275			3.8		2.0			.2			4,434		180
Pay fixed/receive variable — conventional debt		50		(8	)		12.8		.3			3.6			50		(4	)
Total portfolio swaps	$	17,759	$	341	(b)		3.0		1.4	%		.2	%	$	13,784	$	166	(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 $45 million and $28 million for September 30, 2015, and September 30, 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, 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 MRM, 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.

Our credit ratings at September 30, 2015, are shown in Figure 34. We believe these credit ratings, under normal conditions in the capital markets, will enable KeyCorp or KeyBank to issue fixed income securities to investors.

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Figure 34. Credit Ratings

September 30, 2015

Short-Term Borrowings

Long-Term Deposits

Senior Long-Term Debt

Subordinated Long-Term Debt

Capital Securities

Series A Preferred Stock

KEYCORP (THE PARENT COMPANY)

Standard & Poor’s

A-2

N/A

BBB+

BBB

BB+

BB+

Moody’s

P-2

N/A

Baa1

Baa1

Baa2

Baa3

Fitch

F1

N/A

A-

BBB+

BB+

BB

DBRS

R-2(high)

N/A

BBB(high)

BBB

BBB

N/A

KEYBANK

Standard & Poor’s

A-2

N/A

A-

BBB+

N/A

N/A

Moody’s

P-1

Aa3

A3

Baa1

N/A

N/A

Fitch

F1

A

A-

BBB+

N/A

N/A

DBRS

R-1(low)

A(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 on-balance sheet liquid reserves referred to as our liquid asset portfolio, which consists of high quality liquid assets. 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 September 30, 2015, totaled $14.7 billion, consisting of $12.8 billion of unpledged securities, $640 million of securities available for secured funding at the FHLB, and $1.3 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 September 30, 2015, our unused borrowing capacity secured by loan collateral was $19.5 billion at the Federal Reserve Bank of Cleveland and $2.9 billion at the FHLB. During the third quarter of 2015, Key’s outstanding FHLB advances were reduced by $12 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. For the third quarter of 2015, our estimated Modified LCR was above 100%. In the future, we may change the composition of our investment portfolio, increase the size of the overall investment portfolio, and modify product offerings to enhance or optimize our liquidity position.

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 September 30, 2015, our loan-to-deposit ratio was 89%), 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 and are renewed and replaced as necessary. There are no restrictive financial covenants in any of these programs.

On September 15, 2015, under its Medium-Term Note Program, KeyCorp issued $1 billion of 2.90% Senior Medium-Term Notes due September 15, 2020.

On September 29, 2015, we updated the KeyBank Global Note Program. This program has $20 billion authorized for issuance, separate from the $20 billion authorized for the 2012 program. There will be no additional notes issued under the 2012 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 September 30, 2015, KeyCorp held $2.7 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 third 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 third quarter of 2015. As of September 30, 2015, KeyBank had $903 million of capacity to pay dividends to KeyCorp without prior regulatory approval.

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Our liquidity position and recent activity

Over the past quarter, 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 offset by an increase 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.

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 $204 million of cash and cash equivalents and short-term investments in international tax jurisdictions as of September 30, 2015. As we consider alternative long-term strategic and liquidity plans, opportunities to repatriate these amounts would result in approximately $3 million in taxes to be paid. We have included the appropriate amount as a deferred tax liability at September 30, 2015.

The Consolidated Statements of Cash Flows (Unaudited) summarize our sources and uses of cash by type of activity for the nine-month periods ended September 30, 2015, and September 30, 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 mitigate concentration risk in our credit portfolios. For individual obligors, we employ a sliding scale of exposure, known as hold limits, which is dictated by the type of loan and 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 September 30, 2015, we had eight client relationships with loan commitments net of credit default swaps of more than $200 million. The average amount outstanding on these eight individual net obligor commitments was $45 million at September 30, 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 portfolio 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 September 30, 2015, we used credit default swaps with a notional amount of $357 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 September 30, 2015, we did not have any sold credit default swaps outstanding.

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.

Allowance for loan and lease losses

At September 30, 2015, the ALLL was $790 million, or 1.31% of period-end loans, compared to $794 million, or 1.38%, at December 31, 2014, and $804 million, or 1.43%, at September 30, 2014. The allowance includes $36 million that was specifically allocated for impaired loans of $318 million at September 30, 2015, compared to $40 million that was specifically allocated for impaired loans of $302 million at December 31, 2014, and $38 million that was specifically allocated for impaired loans of $299 million at September 30, 2014. For more information about impaired loans, see Note 4 (“Asset Quality”). At September 30, 2015, the ALLL was 197.5% of nonperforming loans, compared to 190.0% at December 31, 2014, and 200.5% at September 30, 2014.

Selected asset quality statistics for each of the past five quarters 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	Third			Second			First			Fourth			Third
Net loan charge-offs	$	41		$	36		$	28		$	32		$	31
Net loan charge-offs to average total loans		.27	%		.25	%		.20	%		.22	%		.22	%
Allowance for loan and lease losses	$	790		$	796		$	794		$	794		$	804
Allowance for credit losses (a)		844			841			835			829			839
Allowance for loan and lease losses to period-end loans		1.31	%		1.37	%		1.37	%		1.38	%		1.43	%
Allowance for credit losses to period-end loans		1.40			1.44			1.44			1.44			1.49
Allowance for loan and lease losses to nonperforming loans		197.5			190.0			181.7			190.0			200.5
Allowance for credit losses to nonperforming loans		211.0			200.7			191.1			198.3			209.2
Nonperforming loans at period end (b)	$	400		$	419		$	437		$	418		$	401
Nonperforming assets at period end		417			440			457			436			418
Nonperforming loans to period-end portfolio loans		.67	%		.72	%		.75	%		.73	%		.71	%
Nonperforming assets to period-end portfolio loans plus
OREO and other nonperforming assets		.69			.75			.79			.76			.74

(a) Includes the ALLL plus the liability for credit losses on lending-related unfunded commitments.

(b) Loan balances exclude $12 million, $12 million, $12 million, $13 million, and $14 million of PCI loans at September 30, 2015, June 30, 2015, March 31, 2015, December 31, 2014, and September 30, 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.

In the third quarter of 2015, we enhanced the approach used to determine the commercial reserve factors used in estimating the quantitative component of the commercial ALLL. In addition, we began utilizing an enhanced framework to quantify commercial ALLL adjustments resulting from qualitative factors not fully captured within the statistical analysis of incurred loss. The enhancements of the methodology are described in Note 1 (“Basis of Presentation and Accounting Policies”) under the heading “Allowance for Loan and Lease Losses.” As a result of the methodology enhancements, the current quarter ALLL within each commercial portfolio and the current quarter provision for credit losses within each business segment has increased or decreased accordingly. The impact of the increases and decreases in the commercial portfolio ALLL and the business segment provision for credit losses was not significant.

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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 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 September 30, 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 $14 million, or 1.7%, 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 $19 million to $54 million at September 30, 2015. When combined with our ALLL, our total allowance for credit losses represented 1.40% of period-end loans at September 30, 2015, compared to 1.44% at December 31, 2014, and 1.49% at September 30, 2014.

Figure 36. Allocation of the Allowance for Loan and Lease Losses

	September 30, 2015								December 31, 2014								September 30, 2014
dollars in millions	Amount		Percent of Allowance to Total Allowance			Percent of Loan Type to Total Loans			Amount		Percent of Allowance to Total Allowance			Percent of Loan Type to Total Loans			Amount		Percent of Allowance to Total Allowance			Percent of Loan Type to Total Loans
Commercial, financial and agricultural	$	438		55.4	%		51.8	%	$	391		49.2	%		48.8	%	$	386		48.0	%		47.5	%
Commercial real estate:
Commercial mortgage		139		17.6			13.6			148		18.7			14.0			159		19.8			14.7
Construction		25		3.2			1.8			28		3.5			1.9			28		3.5			1.9
Total commercial real estate loans		164		20.8			15.4			176		22.2			15.9			187		23.3			16.6
Commercial lease financing		45		5.7			6.5			56		7.1			7.4			55		6.8			7.4
Total commercial loans		647		81.9			73.7			623		78.5			72.1			628		78.1			71.5
Real estate — residential mortgage		19		2.4			3.7			23		2.9			3.9			22		2.7			3.9
Home equity:
Community Banking		54		6.8			17.1			66		8.3			18.1			71		8.8			18.5
Other		4		.5			.4			5		.6			.5			6		.8			.5
Total home equity loans		58		7.3			17.5			71		8.9			18.6			77		9.6			19.0
Consumer other — Community Banking		20		2.5			2.7			22		2.8			2.7			24		3.0			2.7
Credit cards		32		4.1			1.3			33		4.1			1.3			32		4.0			1.3
Consumer other:
Marine		13		1.7			1.0			21		2.7			1.3			19		2.4			1.5
Other		1		.1			.1			1		.1			.1			2		.2			.1
Total consumer other		14		1.8			1.1			22		2.8			1.4			21		2.6			1.6
Total consumer loans		143		18.1			26.3			171		21.5			27.9			176		21.9			28.5
Total loans (a)	$	790		100.0	%		100.0	%	$	794		100.0	%		100.0	%	$	804		100.0	%		100.0	%

(a) Excludes allocations of the ALLL related to the discontinued operations of the education lending business in the amount of $23 million, $29 million, and $31 million at September 30, 2015, December 31, 2014, and September 30, 2014, respectively.

Our provision for credit losses was $45 million for the third quarter of 2015, compared to $19 million for the third quarter of 2014. The increase in our provision is due to the growth in our loan portfolio over the past twelve months as well as lower recoveries in the third quarter of 2015 compared to the same period one year ago. 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 approximately 2% of total loans at September 30, 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 September 30, 2015.

The provision for credit losses and allowance for credit losses reflect the most recent review under the Shared National Credit Program, which did not have a material impact on our overall allowance for credit losses at September 30, 2015.

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Net loan charge-offs

Net loan charge-offs for the third quarter of 2015 totaled $41 million, or .27% of average loans, compared to net loan charge-offs of $31 million, or .22%, 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 $10 million. This increase is attributable to the growth in our loan portfolio over the same period. As shown in Figure 40, our exit loan portfolio did not contribute any net loan charge-offs for the third quarter of 2015, compared to $4 million in net loan charge-offs for the third quarter of 2014. The decrease in net loan charge-offs in our exit loan portfolio for the third quarter of 2015 was primarily driven by net recoveries in our commercial exit loan portfolio and lower levels of net loan charge-offs in our consumer exit loan portfolios.

Figure 37. Net Loan Charge-offs from Continuing Operations ^(a)

	2015									2014
dollars in millions	Third			Second			First			Fourth			Third
Commercial, financial and agricultural	$	24		$	15		$	7		$	4		$	6
Real estate — Commercial mortgage		—			—			—			3			(2	)
Real estate — Construction		—			(1	)		1			—			1
Commercial lease financing		—			—			(2	)		2			(1	)
Total commercial loans		24			14			6			9			4
Home equity — Key Community Bank		4			7			5			6			6
Home equity — Other		(1	)		1			—			—			1
Credit cards		6			7			8			7			9
Marine		3			3			2			3			2
Other		5			4			7			7			9
Total consumer loans		17			22			22			23			27
Total net loan charge-offs	$	41		$	36		$	28		$	32		$	31
Net loan charge-offs to average loans		.27	%		.25	%		.20	%		.22	%		.22	%
Net loan charge-offs from discontinued operations — education lending business	$	7		$	2		$	6		$	8		$	7

(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 September 30,						Nine months ended September 30,
dollars in millions	2015			2014			2015			2014
Average loans outstanding	$	59,281		$	55,796		$	58,263		$	55,388
Allowance for loan and lease losses at beginning of period	$	796		$	814		$	794		$	848
Loans charged off:
Commercial, financial and agricultural (a)		26			12			59			35
Real estate — commercial mortgage		—			—			2			3
Real estate — construction		—			2			1			4
Total commercial real estate loans (b)		—			2			3			7
Commercial lease financing		2			1			5			6
Total commercial loans		28			15			67			48
Real estate — residential mortgage		1			2			4			7
Home equity:
Key Community Bank		6			9			21			29
Other		1			2			4			8
Total home equity loans		7			11			25			37
Consumer other — Key Community Bank		6			7			18			23
Credit cards		7			9			23			27
Consumer other:
Marine		4			4			14			18
Other		—			1			1			2
Total consumer other		4			5			15			20
Total consumer loans		25			34			85			114
Total loans charged off		53			49			152			162
Recoveries:
Commercial, financial and agricultural (a)		2			6			13			27
Real estate — commercial mortgage		—			2			2			4
Real estate — construction		—			1			1			16
Total commercial real estate loans (b)		—			3			3			20
Commercial lease financing		2			2			7			8
Total commercial loans		4			11			23			55
Real estate — residential mortgage		—			—			1			2
Home equity:
Key Community Bank		2			3			5			7
Other		2			1			4			4
Total home equity loans		4			4			9			11
Consumer other — Key Community Bank		1			1			5			4
Credit cards		1			—			2			1
Consumer other:
Marine		1			2			6			7
Other		1			—			1			1
Total consumer other		2			2			7			8
Total consumer loans		8			7			24			26
Total recoveries		12			18			47			81
Net loan charge-offs		(41	)		(31	)		(105	)		(81	)
Provision (credit) for loan and lease losses		36			21			102			37
Foreign currency translation adjustment		(1	)		—			(1	)		—
Allowance for loan and lease losses at end of period	$	790		$	804		$	790		$	804
Liability for credit losses on lending-related commitments at beginning of period	$	45		$	37		$	35		$	37
Provision (credit) for losses on lending-related commitments		9			(2	)		19			(2	)
Liability for credit losses on lending-related commitments at end of period (c)	$	54		$	35		$	54		$	35
Total allowance for credit losses at end of period	$	844		$	839		$	844		$	839
Net loan charge-offs to average total loans		.27	%		.22	%		.24	%		.20	%
Allowance for loan and lease losses to period-end loans		1.31			1.43			1.31			1.43
Allowance for credit losses to period-end loans		1.40			1.49			1.40			1.49
Allowance for loan and lease losses to nonperforming loans		197.5			200.5			197.5			200.5
Allowance for credit losses to nonperforming loans		211.0			209.2			211.0			209.2
Discontinued operations — education lending business:
Loans charged off	$	9		$	10		$	25		$	34
Recoveries		2			3			10			11
Net loan charge-offs	$	(7	)	$	(7	)	$	(15	)	$	(23	)

(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 $417 million at September 30, 2015, and represented .69% of period-end portfolio loans, OREO and other nonperforming assets, compared to $436 million, or .76%, at December 31, 2014, and $418 million, or .74%, at September 30, 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

	September 30,			June 30,			March 31,			December 31,			September 30,
dollars in millions	2015			2015			2015			2014			2014
Commercial, financial and agricultural (a)	$	89		$	100		$	98		$	59		$	47
Real estate — commercial mortgage		23			26			30			34			41
Real estate — construction		9			12			12			13			14
Total commercial real estate loans (b)		32			38			42			47			55
Commercial lease financing		21			18			20			18			14
Total commercial loans		142			156			160			124			116
Real estate — residential mortgage		67			67			72			79			81
Home equity:
Key Community Bank		174			176			182			185			174
Other		7			8			9			10			10
Total home equity loans		181			184			191			195			184
Consumer other — Key Community Bank		1			1			2			2			2
Credit cards		2			2			2			2			1
Consumer other:
Marine		6			8			9			15			16
Other		1			1			1			1			1
Total consumer other		7			9			10			16			17
Total consumer loans		258			263			277			294			285
Total nonperforming loans (c)		400			419			437			418			401
Nonperforming loans held for sale		—			—			—			—			—
OREO		17			20			20			18			16
Other nonperforming assets		—			1			—			—			1
Total nonperforming assets	$	417		$	440		$	457		$	436		$	418
Accruing loans past due 90 days or more	$	54		$	66		$	111		$	96		$	71
Accruing loans past due 30 through 89 days		271			181			216			235			340
Restructured loans — accruing and nonaccruing (d)		287			300			268			270			264
Restructured loans included in nonperforming loans (d)		160			170			141			157			137
Nonperforming assets from discontinued operations — education lending business		8			6			8			11			9
Nonperforming loans to period-end portfolio loans		.67	%		.72	%		.75	%		.73	%		.71	%
Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets		.69			.75			.79			.76			.74

(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, $12 million, $12 million, $13 million, and $14 million of PCI loans at September 30, 2015, June 30, 2015, March 31, 2015, December 31, 2014, and September 30, 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 at September 30, 2015, decreased $1 million from one year ago. Increases in the commercial, financial and agricultural and commercial lease financing portfolios were offset by declines in the commercial real estate and consumer loan portfolios. As shown in Figure 40, our exit loan portfolio accounted for $19 million, or 5%, of our total nonperforming assets at September 30, 2015, compared to $43 million, or 10%, at September 30, 2014.

At September 30, 2015, the approximate carrying amount of our commercial nonperforming loans outstanding represented 74% of their contractual amount owed, total nonperforming loans outstanding represented 79% of their contractual amount owed, and nonperforming assets in total were carried at 79% of their original contractual amount owed.

At September 30, 2015, our 20 largest nonperforming loans totaled $112 million, representing 28% of total nonperforming loans. At September 30, 2014, our 20 largest nonperforming loans totaled $72 million, representing 18% of total nonperforming loans.

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Figure 40 shows the composition of our exit loan portfolio at September 30, 2015, and September 30, 2014, the net loan charge-offs recorded on this portfolio for the third quarters of 2015 and 2014, and the nonperforming status of these loans at September 30, 2015, and September 30, 2014. The exit loan portfolio represented 3% of total loans at September 30, 2015, and 4% of total loans at September 30, 2014.

Figure 40. Exit Loan Portfolio from Continuing Operations

	Balance Outstanding				Change 9-30-15 vs.			Net Loan Charge-offs						Balance on Nonperforming Status
in millions	9-30-15		9-30-14		9-30-14			9-30-15			9-30-14  (c)			9-30-15		9-30-14
Residential properties — homebuilder	$	6	$	11	$	(5	)		—		$	1		$	5	$	10
Marine and RV floor plan		1		7		(6	)		—			—			—		5
Commercial lease financing (a)		798		1,046		(248	)	$	(1	)		(1	)		—		1
Total commercial loans		805		1,064		(259	)		(1	)		—			5		16
Home equity — Other		222		283		(61	)		(1	)		1			7		10
Marine		620		828		(208	)		3			2			6		16
RV and other consumer		44		57		(13	)		(1	)		1			1		1
Total consumer loans		886		1,168		(282	)		1			4			14		27
Total exit loans in loan portfolio	$	1,691	$	2,232	$	(541	)		—		$	4		$	19	$	43
Discontinued operations — education lending business (not included in exit loans above) (b)	$	1,891	$	2,375	$	(484	)	$	7		$	7		$	8	$	9

(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) Excludes loans held for sale of $169 million at September 30, 2015.

(c) 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	Third			Second			First			Fourth			Third
Balance at beginning of period	$	419		$	437		$	418		$	401		$	396
Loans placed on nonaccrual status		81			92			123			103			109
Charge-offs		(53	)		(52	)		(47	)		(49	)		(49	)
Loans sold		(2	)		—			—			(2	)		—
Payments		(16	)		(25	)		(9	)		(17	)		(13	)
Transfers to OREO		(4	)		(5	)		(7	)		(6	)		(7	)
Loans returned to accrual status		(25	)		(28	)		(41	)		(12	)		(35	)
Balance at end of period (a)	$	400		$	419		$	437		$	418		$	401

(a) Loan balances exclude $12 million, $12 million, $12 million, $13 million, and $14 million of PCI loans at September 30, 2015, June 30, 2015, March 31, 2015, December 31, 2014, and September 30, 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	Third			Second			First			Fourth			Third
Balance at beginning of period	$	20		$	20		$	18		$	16		$	12
Properties acquired — nonperforming loans		4			5			7			6			7
Valuation adjustments		(2	)		(1	)		(1	)		(2	)		(1	)
Properties sold		(5	)		(4	)		(4	)		(2	)		(2	)
Balance at end of period	$	17		$	20		$	20		$	18		$	16

141

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. The Compliance Risk Committee serves the same function in managing compliance 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 and Compliance Risk Committee are senior management committees that oversee our level of operational and compliance risk and direct and support our operational and compliance infrastructure and related activities. These committees and the Operational Risk Management and Compliance functions are an integral part of our ERM Program. Our Risk Review function regularly assesses the overall effectiveness of our Operational Risk Management and Compliance Programs 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.

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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 September 30, 2015, $16 billion, or 17%, of our total assets were measured at fair value on a recurring basis. Approximately 98% of these assets, before netting adjustments, were classified as Level 1 or Level 2 within the fair value hierarchy. At September 30, 2015, $1 billion, or 2%, of our total liabilities were measured at fair value on a recurring basis. All of these liabilities were classified as Level 1 or Level 2.

During the third quarter of 2015, $9 million of our total assets were measured at fair value on a nonrecurring basis. All of these assets were classified as Level 3. At September 30, 2015, there were no liabilities measured at fair value on a nonrecurring basis.

During the first nine months of 2015, we did not significantly alter the manner in which we applied our critical accounting policies or developed related assumptions and estimates, except as discussed below.

Allowance for Loan and Lease Losses

In the third quarter of 2015, we enhanced the approach used to determine the commercial reserve factors used in estimating the commercial ALLL, which had the effect of capturing certain elements in the commercial quantitative reserve component that had formerly been included in the commercial qualitative component. Under the enhanced methodology, we began utilizing more refined commercial estimated loss rates that represent cumulative losses over the estimated average time period from the onset of credit deterioration loss to the initial loss recorded for an individual loan. In addition, we began utilizing an enhanced framework to quantify commercial ALLL adjustments resulting from qualitative factors that may not be fully captured within the statistical analysis of incurred loss. The enhanced framework utilizes the nine qualitative factors recommended within the OCC’s Interagency Policy Statement on the Allowance for Loan and Lease Losses (issued 12/13/2006) to quantify the commercial qualitative component. The impact of these changes was largely neutral to the total ALLL at September 30, 2015. However, because the quantitative reserve is allocated to the business segments at a loan level, while the qualitative portion is allocated at the portfolio level, the impact of the methodology enhancements on the allowance for each business segment and each portfolio caused the business segment and commercial portfolio reserves to increase or decrease accordingly. The impact of the increases and decreases on the business segment and commercial portfolio reserves was not significant.

For further discussion of the methodology used in the determination of the ALLL for areas not changed as part of the methodology enhancement, refer to 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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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
September 30, 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	$	20		—			20
Total		20		(1	)		19
Germany:
Sovereigns		—		—			—
Non-sovereign financial institutions		—		(2	)		(2	)
Non-sovereign non-financial institutions		193		—			193
Total		193		(2	)		191
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		39		—			39
Total		39		—			39
Netherlands:
Sovereigns		—		—			—
Non-sovereign financial institutions		—		—			—
Non-sovereign non-financial institutions		15		—			15
Total		15		—			15
Portugal:
Sovereigns		—		—			—
Non-sovereign financial institutions		—		—			—
Non-sovereign non-financial institutions		—		—			—
Total		—		—			—
Spain:
Sovereigns		—		—			—
Non-sovereign financial institutions		—		—			—
Non-sovereign non-financial institutions		24		—			24
Total		24		—			24
Switzerland:
Sovereigns		—		—			—
Non-sovereign financial institutions		—		(3	)		(3	)
Non-sovereign non-financial institutions		65		—			65
Total		65		(3	)		62
United Kingdom:
Sovereigns		—		—			—
Non-sovereign financial institutions		—		17			17
Non-sovereign non-financial institutions		90		—			90
Total		90		17			107
Other Europe: (c)
Sovereigns		—		—			—
Non-sovereign financial institutions		—		—			—
Non-sovereign non-financial institutions		73		—			73
Total		73		—			73
Total Europe:
Sovereigns		—		—			—
Non-sovereign financial institutions		—		11			11
Non-sovereign non-financial institutions		520		—			520
Total	$	520	$	11		$	531

(a) Represents our outstanding leases.

(b) 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. 100% 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.

144

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.

145

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 were 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 began in the second quarter of 2015.

We completed $123 million of common share repurchases during the third quarter of 2015 under this authorization.

The following table summarizes our repurchases of our common shares for the three months ended September 30, 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)
July 1—31		3,192,620	$	15.06		3,188,129		36,921,280
August 1—31		4,816,802		14.58		4,812,650		34,767,143
September 1—30		390,374		12.96		384,800		36,329,045
Total		8,399,796	$	14.68		8,385,579

(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 July 31, 2015, at $14.84; on August 31, 2015, at $13.74; and on September 30, 2015, at $13.01.

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 September 30, 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 Disclosures and Filings” 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.

146

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: November 2, 2015

/s/ Douglas M. Schosser

By: Douglas M. Schosser

Chief Accounting Officer

(Principal Accounting Officer)

147

EX-15

Exhibit 15

ACKNOWLEDGMENT OF ERNST & YOUNG LLP,

INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

November 2, 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. 333-70669

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 November 2, 2015 relating to the unaudited consolidated interim financial statements of KeyCorp that are included in its Form 10-Q for the quarter ended September 30, 2015.

Ernst & Young

Cleveland, Ohio

148

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: November 2, 2015

Beth E. Mooney

Chairman, Chief Executive Officer and President

149

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: November 2, 2015

Donald R. Kimble

Chief Financial Officer

150

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 September 30, 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: November 2, 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.

151

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 September 30, 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: November 2, 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.

152

XML

Acquisitions and Discontinued Operations (Tables)

9 Months Ended

Sep. 30, 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 September 30,						Nine months ended September 30,
in millions	2015			2014			2015		2014
Net interest income	$	9		$	21		$	29	$	67
Provision for credit losses		7			5			9		15
Net interest income after provision for credit losses		2			16			20		52
Noninterest income		(2	)		(41	)		1		(111	)
Noninterest expense		5			7			13		19
Income (loss) before income taxes		(5	)		(32	)		8		(78	)
Income taxes		(2	)		(12	)		3		(29	)
Income (loss) from discontinued operations, net of taxes (a)	$	(3	)	$	(20	)	$	5	$	(49	)

(a) Includes after-tax charges of $7 million and $9 million for the three-month periods ended September 30, 2015, and September 30, 2014, respectively, and $18 million and $26 million for the nine-month periods ended September 30, 2015, and September 30, 2014, respectively, determined by applying a matched funds transfer pricing methodology to the liabilities assumed necessary to support the discontinued operations.

Components of Assets of Education Lending Business

The discontinued assets of our education lending business included on the balance sheet are as follows. There were no discontinued liabilities for the periods presented below.

	September 30,		December 31,		September 30,
in millions	2015		2014		2014
Held-to-maturity securities	$	1	$	1	$	1
Portfolio loans at fair value		—		191		201
Loans, net of unearned income (a)		1,891		2,104		2,174
Less: Allowance for loan and lease losses		23		29		31
Net loans		1,868		2,266		2,344
Portfolio loans held for sale at fair value		169		—		—
Accrued income and other assets		33		38		40
Total assets	$	2,071	$	2,305	$	2,385

(a) At September 30, 2015, December 31, 2014, and September 30, 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 portfolio loans held for sale and portfolio loans accounted for at fair value at September 30, 2015, December 31, 2014, and September 30, 2014:

September 30, 2015 dollars in millions	Fair Value of Level 3 Assets and Liabilities		Valuation Technique		Significant Unobservable Input		Range
Portfolio loans held for sale accounted for at fair value	$	169		Market approach		Indicative bids		84.50 - 104.00%
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%)
September 30, 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	$	201		Discounted cash flow		Prepayment speed		5.00 - 5.80% (5.25%)
						Loss severity		2.00 - 77.00% (25.71%)
						Discount rate		3.60 - 3.90% (3.69%)
						Default rate		.93 - 1.91% (1.24%)

Principal and Fair Value Amounts for Portfolio Loans Held for Sale at Fair Value, Portfolio Loans at Carrying Value, and Portfolio Loans at Fair Value

The following table shows the principal and fair value amounts for our portfolio loans held for sale at fair value, portfolio loans at carrying value, and portfolio loans at fair value at September 30, 2015, December 31, 2014, and September 30, 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.

	September 30, 2015				December 31, 2014				September 30, 2014
in millions	Principal		Fair Value		Principal		Fair Value		Principal		Fair Value
Portfolio loans held for sale at fair value
Accruing loans past due 90 days or more	$	5	$	4		—		—		—		—
Portfolio loans at carrying value
Accruing loans past due 90 days or more	$	26		N/A	$	29		N/A	$	31		N/A
Loans placed on nonaccrual status		8		N/A		11		N/A		9		N/A
Portfolio loans at fair value
Accruing loans past due 90 days or more		—		—	$	5	$	5	$	5	$	5

Portfolio Loans Held for Sale at Fair Value and Portfolio Loans at Fair Value and Related Contractual Amounts

The following table shows the portfolio loans held for sale at fair value and portfolio loans at fair value and their related contractual amounts at September 30, 2015, December 31, 2014, and September 30, 2014.

	September 30, 2015				December 31, 2014				September 30, 2014
in millions	Contractual Amount		Fair Value		Contractual Amount		Fair Value		Contractual Amount		Fair Value
ASSETS
Portfolio loans held for sale	$	173	$	169		—		—		—		—
Portfolio loans		—		—	$	192	$	191	$	199	$	201

Consolidated Assets at Fair Value on Recurring Basis

The following tables present the assets of the portfolio loans held for sale and portfolio loans measured at fair value on a recurring basis at September 30, 2015, December 31, 2014, and September 30, 2014.

September 30, 2015 in millions	Level 1		Level 2		Level 3		Total
ASSETS MEASURED ON A RECURRING BASIS
Portfolio loans held for sale		—		—	$	169	$	169
Total assets on a recurring basis at fair value		—		—	$	169	$	169

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

September 30, 2014 in millions	Level 1		Level 2		Level 3		Total
ASSETS MEASURED ON A RECURRING BASIS
Portfolio loans		—		—	$	201	$	201
Total assets on a recurring basis at fair value		—		—	$	201	$	201

Change in Fair Values of Level 3 Portfolio Loans Held for Sale, Portfolio Loans, and Consolidated Education Loan Securitization Trusts

The following table shows the change in the fair values of the Level 3 portfolio loans held for sale, portfolio loans, and consolidated education loan securitization trusts for the three- and nine-month periods ended September 30, 2015, and September 30, 2014.

	Portfolio
	Student			Portfolio			Trust			Trust						Trust
	Loans Held			Student			Student			Other			Trust			Other
in millions	For Sale			Loans			Loans			Assets			Securities			Liabilities
Balance at December 31, 2014		—		$	191			—			—			—			—
Gains (losses) recognized in earnings (a)	$	(4	)		1			—			—			—			—
Settlements		(6	)		(13	)		—			—			—			—
Loans transferred to held for sale		179			(179	)		—			—			—			—
Balance at September 30, 2015 (b)	$	169			—			—			—			—			—
Balance at June 30, 2015	$	179			—			—			—			—			—
Gains (losses) recognized in earnings (a)		(4	)		—			—			—			—			—
Settlements		(6	)		—			—			—			—			—
Balance at September 30, 2015 (b)	$	169			—			—			—			—			—
Balance at December 31, 2013		—		$	147		$	1,960		$	20		$	1,834		$	20
Gains (losses) recognized in earnings (a)		—			(4	)		(34	)		—			33			—
Purchases		—			74			—			—			—			—
Sales		—			—			(74	)		—			—			—
Settlements		—			(16	)		(202	)		(1	)		(278	)		(3	)
Transfers out due to deconsolidation		—			—			(1,650	)		(19	)		(1,589	)		(17	)
Balance at September 30, 2014 (b)		—		$	201			—			—			—			—
Balance at June 30, 2014		—		$	209		$	1,711		$	19		$	1,660		$	17
Gains (losses) recognized in earnings (a)		—			—			—			—			—			—
Purchases		—			—			—			—			—			—
Sales		—			—			—			—			—			—
Settlements		—			(8	)		(61	)		—			(71	)		—
Transfers out due to deconsolidation		—			—			(1,650	)		(19	)		(1,589	)		(17	)
Balance at September 30, 2014 (b)		—		$	201			—			—			—			—

(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- and nine-month periods ended September 30, 2015. There were no issuances or transfers into Level 3 for the three- and nine-month periods ended September 30, 2014.

Components of Income (Loss) from Discontinued Operations, Net of Taxes

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 September 30,				Nine months ended September 30,
in millions	2015		2014		2015		2014
Net interest income		—	$	5		—	$	7
Noninterest income		—		—		—		10
Noninterest expense		—		—		—		—
Income (loss) before income taxes		—		5		—		17
Income taxes		—		2		—		7
Income (loss) from discontinued operations, net of taxes		—	$	3		—	$	10

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 September 30,				Nine months ended September 30,
in millions	2015		2014		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 of Victory included on the balance sheet are as follows. There were no discontinued liabilities for the periods presented below.

	September 30,		December 31,		September 30,
in millions	2015		2014		2014
Seller note (a)		—		—	$	17
Total assets		—		—	$	17

(a) At September 30, 2014, the only remaining asset of Victory was the Seller note. The Seller note was paid off during the fourth quarter of 2014.

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

	September 30,		December 31,		September 30,
in millions	2015		2014		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 September 30,						Nine months ended September 30,
in millions	2015			2014			2015		2014
Net interest income	$	9		$	26		$	29	$	74
Provision for credit losses		7			5			9		15
Net interest income after provision for credit losses		2			21			20		59
Noninterest income		(2	)		(41	)		1		(101	)
Noninterest expense		5			7			13		23
Income (loss) before income taxes		(5	)		(27	)		8		(65	)
Income taxes		(2	)		(10	)		3		(24	)
Income (loss) from discontinued operations, net of taxes (a)	$	(3	)	$	(17	)	$	5	$	(41	)

(a) Includes after-tax charges of $7 million and $9 million for the three-month periods ended September 30, 2015, and September 30, 2014, respectively, and $18 million and $26 million for the nine-month periods ended September 30, 2015, and September 30, 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:

	September 30,		December 31,		September 30,
in millions	2015		2014		2014
Cash and due from banks	$	15	$	19	$	19
Held-to-maturity securities		1		1		1
Seller note		—		—		17
Portfolio loans at fair value		—		191		201
Loans, net of unearned income (a)		1,891		2,104		2,174
Less: Allowance for loan and lease losses		23		29		31
Net loans		1,868		2,266		2,344
Portfolio loans held for sale at fair value		169		—		—
Accrued income and other assets		33		38		40
Total assets	$	2,086	$	2,324	$	2,421
Accrued expense and other liabilities		—	$	3	$	3
Total liabilities		—	$	3	$	3

(a) At September 30, 2015, December 31, 2014, and September 30, 2014, unearned income was less than $1 million.

XML

Acquisitions and Discontinued Operations - Principal and Fair Value Amounts for Portfolio Loans Held for Sale at Fair Value, Portfolio Loans at Carrying Value, and Portfolio Loans at Fair Value (Detail) - USD ($) $ in Millions	Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Accruing loans past due 90 days or more	$ 54	$ 96	$ 71
Portfolio Loans Held For Sale [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
Accruing loans past due 90 days or more	4
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
Accruing loans past due 90 days or more		5	5
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	26	29	31
Loans placed on nonaccrual status	$ 8	$ 11	$ 9

XML

Asset Quality - Nonperforming Assets and Past Due Loans (Detail) - USD ($) $ in Millions	Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014
Receivables [Abstract]
Total nonperforming loans	$ 400	$ 418	$ 401
Nonperforming loans held for sale	0	0	0
OREO	17	18	16
Other nonperforming assets			1
Total nonperforming assets	417	436	418
Nonperforming assets from discontinued operations-education lending	8	11	9
Restructured loans included in nonperforming loans	159	157	137
Restructured loans with an allocated specific allowance	71	82	115
Specifically allocated allowance for restructured loans	29	34	30
Accruing loans past due 90 days or more	54	96	71
Accruing loans past due 30 through 89 days	$ 271	$ 235	$ 340

XML

Loans and Loans Held for Sale - Loans by Category (Detail) - USD ($) $ in Millions	Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial, financial and agricultural	$ 31,095	$ 27,982	$ 26,683
Commercial real estate:
Commercial mortgage	8,180	8,047	8,276
Construction	1,070	1,100	1,036
Total commercial real estate loans	9,250	9,147	9,312
Commercial lease financing	3,929	4,252	4,135
Total commercial loans	44,274	41,381	40,130
Residential - prime loans:
Real estate - residential mortgage	2,267	2,225	2,213
Home equity loans	10,504	10,633	10,663
Total residential - prime loans	12,771	12,858	12,876
Credit cards	770	754	724
Consumer other	658	828	879
Total consumer loans	15,811	16,000	16,025
Loans Outstanding	60,085	57,381	56,155
Key Community Bank [Member]
Residential - prime loans:
Home equity loans	10,282	10,366	10,380
Consumer other	1,612	1,560	1,546
Other loans [Member]
Residential - prime loans:
Home equity loans	222	267	283
Consumer other	38	49	51
Marine loans [Member]
Residential - prime loans:
Consumer other	$ 620	$ 779	$ 828

XML

Acquisitions and Discontinued Operations - Combined Assets and Liabilities of Discontinued Operations (Detail) - USD ($)	Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014	Dec. 31, 2013
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Cash and due from banks	$ 470,000,000	$ 653,000,000	$ 651,000,000	$ 617,000,000
Held-to-maturity securities	4,936,000,000	5,015,000,000	4,997,000,000
Portfolio loans at fair value		191,000,000	201,000,000
Loans, net of unearned income	60,085,000,000	57,381,000,000	56,155,000,000
Portfolio loans held for sale at fair value	0	0	0
Total assets	2,086,000,000	2,324,000,000	2,421,000,000
Total liabilities	0	3,000,000	3,000,000
Portfolio [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Portfolio loans held for sale at fair value	169,000,000
Trust [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Portfolio loans held for sale at fair value	173,000,000
Discontinued Operations [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Cash and due from banks	15,000,000	19,000,000	19,000,000
Held-to-maturity securities	1,000,000	1,000,000	1,000,000
Loans, net of unearned income	1,891,000,000	2,104,000,000	2,174,000,000
Less: Allowance for loan and lease losses	23,000,000	29,000,000	31,000,000
Net loans	1,868,000,000	2,266,000,000	2,344,000,000
Accrued income and other assets	33,000,000	38,000,000	40,000,000
Total assets	2,086,000,000	2,324,000,000	2,421,000,000
Total liabilities		3,000,000	3,000,000
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			17,000,000
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		191,000,000	201,000,000
Portfolio loans held for sale at fair value	$ 169,000,000
Discontinued Operations [Member] | Trust [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Accrued expense and other liabilities		$ 3,000,000	$ 3,000,000

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Asset Quality - Changes in Liability for Credit Losses on Lending Related Commitments (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Receivables [Abstract]
Balance at beginning of period	$ 45	$ 37	$ 35	$ 37
Provision (credit) for losses on lending-related commitments	9	(2)	19	(2)
Balance at end of period	$ 54	$ 35	$ 54	$ 35

XML

Employee Benefits - Net Pension Cost (Benefit) for Funded and Unfunded Plans (Detail) - Pension Plans [Member] - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Defined Benefit Plan Disclosure [Line Items]
Interest cost on PBO	$ 10	$ 12	$ 30	$ 36
Expected return on plan assets	(14)	(17)	(42)	(51)
Amortization of losses	4	4	13	12
Settlement loss	19	20	19	20
Net benefit cost	$ 19	$ 19	$ 20	$ 17

XML

Asset Quality - Nonperforming Assets and Past Due Loans (Parenthetical) (Detail) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014
Financing Receivable, Recorded Investment, Past Due [Line Items]
Purchased credit impaired loans	$ 12	$ 13	$ 14
Restructured loans	20	$ 17	$ 16
Residential Mortgage [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Carrying value of foreclosed residential real estate	114
Foreclosed Residential Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Carrying value of foreclosed residential real estate	$ 13

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Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Nonrecurring Basis (Parenthetical) (Detail) - USD ($) $ in Millions	9 Months Ended		12 Months Ended
	Sep. 30, 2015	Sep. 30, 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	$ 24	$ 10	$ 11

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Variable Interest Entities - Additional Information (Detail) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
LIHTC Funds [Member]
Variable Interest Entity [Line Items]
Variable Interest Entity, Carrying Amount of Assets, Consolidated VIEs	$ 1	$ 1	$ 1
Settlement value of third-party interests, reserves	4
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
LIHTC Funds [Member] | Investments [Member]
Variable Interest Entity [Line Items]
Variable Interest Entity, Carrying Amount of Assets, Consolidated VIEs	1	1	$ 1
LIHTC Investments [Member]
Variable Interest Entity [Line Items]
Tax credit of investment	99	84
Investment in LIHTC	1,000	926
LIHTC Investments [Member] | Investments [Member]
Variable Interest Entity [Line Items]
Amortization of investment	$ 85	$ 72

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Basis of Presentation - Additional Information (Detail)	9 Months Ended
	Sep. 30, 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%

XML

Asset Quality (Tables)

9 Months Ended

Sep. 30, 2015

Receivables [Abstract]

Nonperforming Assets and Past Due Loans

Our nonperforming assets and past due loans were as follows:

in millions	September 30, 2015		December 31, 2014		September 30, 2014
Total nonperforming loans (a), (b)	$	400	$	418	$	401
Nonperforming loans held for sale		—		—		—
OREO (c)		17		18		16
Other nonperforming assets		—		—		1
Total nonperforming assets	$	417	$	436	$	418
Nonperforming assets from discontinued operations—education lending (d)	$	8	$	11	$	9
Restructured loans included in nonperforming loans	$	159	$	157	$	137
Restructured loans with an allocated specific allowance (e)		71		82		115
Specifically allocated allowance for restructured loans (f)		29		34		30
Accruing loans past due 90 days or more	$	54	$	96	$	71
Accruing loans past due 30 through 89 days		271		235		340

(a) Loan balances exclude $12 million, $13 million, and $14 million of PCI loans at September 30, 2015, December 31, 2014, and September 30, 2014, respectively.

(b) Includes carrying value of consumer residential mortgage loans in the process of foreclosure of approximately $114 million at September 30, 2015.

(c) Includes carrying value of foreclosed residential real estate of approximately $13 million at September 30, 2015.

(d) Restructured loans of approximately $20 million, $17 million, and $16 million are included in discontinued operations at September 30, 2015, December 31, 2014, and September 30, 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.

Breakdown of Individually Impaired Loans

The following tables set forth a further breakdown of individually impaired loans as of September 30, 2015, December 31, 2014, and September 30, 2014:

			Unpaid				Average
September 30, 2015	Recorded		Principal		Specific		Recorded
in millions	Investment (a)		Balance (b)		Allowance		Investment
With no related allowance recorded:
Commercial, financial and agricultural	$	30	$	54		—	$	19
Commercial real estate:
Commercial mortgage		9		12		—		10
Construction		5		5		—		6
Total commercial real estate loans		14		17		—		16
Total commercial loans		44		71		—		35
Real estate — residential mortgage		22		22		—		22
Home equity:
Key Community Bank		58		58		—		59
Other		2		2		—		2
Total home equity loans		60		60		—		61
Consumer other:
Marine		1		1		—		1
Total consumer other		1		1		—		1
Total consumer loans		83		83		—		84
Total loans with no related allowance recorded		127		154		—		119
With an allowance recorded:
Commercial, financial and agricultural		43		56	$	9		58
Commercial real estate:
Commercial mortgage		5		6		1		6
Total commercial real estate loans		5		6		1		6
Total commercial loans		48		62		10		64
Real estate — residential mortgage		33		33		5		33
Home equity:
Key Community Bank		54		54		17		53
Other		10		10		1		10
Total home equity loans		64		64		18		63
Consumer other — Key Community Bank		3		3		—		3
Credit cards		3		3		1		3
Consumer other:
Marine		38		38		2		39
Other		2		2		—		2
Total consumer other		40		40		2		41
Total consumer loans		143		143		26		143
Total loans with an allowance recorded		191		205		36		207
Total	$	318	$	359	$	36	$	326

(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.

			Unpaid				Average
December 31, 2014	Recorded		Principal		Specific		Recorded
in millions	Investment (a)		Balance (b)		Allowance		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.

			Unpaid				Average
September 30, 2014	Recorded		Principal		Specific		Recorded
in millions	Investment (a)		Balance (b)		Allowance		Investment
With no related allowance recorded:
Commercial, financial and agricultural	$	11	$	20		—	$	12
Commercial real estate:
Commercial mortgage		22		27		—		23
Construction		9		20		—		7
Total commercial real estate loans		31		47		—		30
Total commercial loans		42		67		—		42
Real estate — residential mortgage		36		36		—		30
Home equity:
Key Community Bank		64		64		—		65
Other		2		2		—		2
Total home equity loans		66		66		—		67
Consumer other:
Marine		2		2		—		2
Total consumer other		2		2		—		2
Total consumer loans		104		104		—		99
Total loans with no related allowance recorded		146		171		—		141
With an allowance recorded:
Commercial, financial and agricultural		20		21	$	7		12
Commercial real estate:
Commercial mortgage		7		7		2		5
Total commercial real estate loans		7		7		2		5
Total commercial loans		27		28		9		17
Real estate — residential mortgage		19		19		4		24
Home equity:
Key Community Bank		41		41		16		39
Other		11		11		2		11
Total home equity loans		52		52		18		50
Consumer other — Key Community Bank		3		3		—		3
Credit cards		3		3		1		3
Consumer other:
Marine		46		46		5		47
Other		2		2		1		2
Total consumer other		48		48		6		49
Total consumer loans		125		125		29		129
Total loans with an allowance recorded		152		153		38		146
Total	$	298	$	324	$	38	$	287

(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 September 30, 2015, follows:

			Pre-modification		Post-modification
			Outstanding		Outstanding
September 30, 2015	Number		Recorded		Recorded
dollars in millions	of Loans		Investment		Investment
LOAN TYPE
Nonperforming:
Commercial, financial and agricultural		12	$	56	$	50
Commercial real estate:
Real estate — commercial mortgage		11		30		7
Total commercial real estate loans		11		30		7
Total commercial loans		23		86		57
Real estate — residential mortgage		356		21		21
Home equity:
Key Community Bank		1,093		79		70
Other		122		3		3
Total home equity loans		1,215		82		73
Consumer other — Key Community Bank		26		1		1
Credit cards		314		2		2
Consumer other:
Marine		92		6		5
Other		16		—		—
Total consumer other		108		6		5
Total consumer loans		2,019		112		102
Total nonperforming TDRs		2,042		198		159
Prior-year accruing: (a)
Commercial, financial and agricultural		12		6		3
Commercial real estate:
Real estate — commercial mortgage		1		2		1
Total commercial real estate loans		1		2		1
Total commercial loans		13		8		4
Real estate — residential mortgage		499		36		36
Home equity:
Key Community Bank		794		49		42
Other		327		10		8
Total home equity loans		1,121		59		50
Consumer other — Key Community Bank		45		2		1
Credit cards		473		2		2
Consumer other:
Marine		398		59		33
Other		68		2		2
Total consumer other		466		61		35
Total consumer loans		2,604		160		124
Total prior-year accruing TDRs		2,617		168		128
Total TDRs		4,659	$	366	$	287

(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:

			Pre-modification		Post-modification
			Outstanding		Outstanding
December 31, 2014	Number		Recorded		Recorded
dollars in millions	of Loans		Investment		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 September 30, 2014, follows:

			Pre-modification		Post-modification
			Outstanding		Outstanding
September 30, 2014	Number		Recorded		Recorded
dollars in millions	of Loans		Investment		Investment
LOAN TYPE
Nonperforming:
Commercial, financial and agricultural		20	$	16	$	9
Commercial real estate:
Real estate — commercial mortgage		12		39		14
Real estate — construction		3		15		1
Total commercial real estate loans		15		54		15
Total commercial loans		35		70		24
Real estate — residential mortgage		464		28		28
Home equity:
Key Community Bank		1,125		70		64
Other		133		4		4
Total home equity loans		1,258		74		68
Consumer other — Key Community Bank		31		1		1
Credit cards		156		1		1
Consumer other:
Marine		211		16		14
Other		40		1		1
Total consumer other		251		17		15
Total consumer loans		2,160		121		113
Total nonperforming TDRs		2,195		191		137
Prior-year accruing: (a)
Commercial, financial and agricultural		25		6		3
Commercial real estate:
Real estate — commercial mortgage		4		18		8
Total commercial real estate loans		4		18		8
Total commercial loans		29		24		11
Real estate — residential mortgage		359		28		28
Home equity:
Key Community Bank		731		45		40
Other		325		10		8
Total home equity loans		1,056		55		48
Consumer other — Key Community Bank		53		2		2
Credit cards		564		4		3
Consumer other:
Marine		402		58		34
Other		72		2		1
Total consumer other		474		60		35
Total consumer loans		2,506		149		116
Total prior-year accruing TDRs		2,535		173		127
Total TDRs		4,730	$	364	$	264

(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.

in millions	September 30, 2015		December 31, 2014		September 30, 2014
Commercial loans:
Interest rate reduction	$	58	$	13	$	24
Forgiveness of principal		2		2		5
Other		1		25		6
Total	$	61	$	40	$	35
Consumer loans:
Interest rate reduction	$	139	$	140	$	140
Forgiveness of principal		4		4		4
Other		83		86		85
Total	$	226	$	230	$	229
Total commercial and consumer TDRs (a)	$	287	$	270	$	264
Total loans		60,085		57,381		56,155

(a) Commitments outstanding to lend additional funds to borrowers whose loan terms have been modified in TDRs are $8 million, $5 million, and $1 million at September 30, 2015, December 31, 2014, and September 30, 2014, respectively.

Past Due Loans Including Current Loans

The following aging analysis of past due and current loans as of September 30, 2015, December 31, 2014, and September 30, 2014, provides further information regarding Key’s credit exposure.

							90 and				Total Past
			30-59		60-89		Greater				Due and		Purchased
September 30, 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	$	30,901	$	58	$	30	$	17	$	89	$	194		—	$	31,095
Commercial real estate:
Commercial mortgage		8,127		18		7		5		23		53		—		8,180
Construction		1,060		1		—		—		9		10		—		1,070
Total commercial real estate loans		9,187		19		7		5		32		63		—		9,250
Commercial lease financing		3,875		29		3		1		21		54		—		3,929
Total commercial loans	$	43,963	$	106	$	40	$	23	$	142	$	311		—	$	44,274
Real estate — residential mortgage	$	2,171	$	11	$	4	$	3	$	67	$	85	$	11	$	2,267
Home equity:
Key Community Bank		10,027		49		20		11		174		254		1		10,282
Other		208		4		2		1		7		14		—		222
Total home equity loans		10,235		53		22		12		181		268		1		10,504
Consumer other — Key Community Bank		1,595		7		4		5		1		17		—		1,612
Credit cards		750		6		4		8		2		20		—		770
Consumer other:
Marine		601		10		2		1		6		19		—		620
Other		34		1		1		1		1		4		—		38
Total consumer other		635		11		3		2		7		23		—		658
Total consumer loans	$	15,386	$	88	$	37	$	30	$	258	$	413	$	12	$	15,811
Total loans	$	59,349	$	194	$	77	$	53	$	400	$	724	$	12	$	60,085
							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

							90 and				Total Past
			30-59		60-89		Greater				Due and		Purchased
September 30, 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	$	26,534	$	50	$	34	$	18	$	47	$	149		—	$	26,683
Commercial real estate:
Commercial mortgage		8,201		17		7		9		41		74	$	1		8,276
Construction		1,017		3		2		—		14		19		—		1,036
Total commercial real estate loans		9,218		20		9		9		55		93		1		9,312
Commercial lease financing		4,017		74		24		6		14		118		—		4,135
Total commercial loans	$	39,769	$	144	$	67	$	33	$	116	$	360	$	1	$	40,130
Real estate — residential mortgage	$	2,091	$	17	$	7	$	5	$	81	$	110	$	12	$	2,213
Home equity:
Key Community Bank		10,124		46		19		16		174		255		1		10,380
Other		266		4		2		1		10		17		—		283
Total home equity loans		10,390		50		21		17		184		272		1		10,663
Consumer other — Key Community Bank		1,528		7		3		6		2		18		—		1,546
Credit cards		705		5		4		9		1		19		—		724
Consumer other:
Marine		796		11		4		1		16		32		—		828
Other		49		1		—		—		1		2		—		51
Total consumer other		845		12		4		1		17		34		—		879
Total consumer loans	$	15,559	$	91	$	39	$	38	$	285	$	453	$	13	$	16,025
Total loans	$	55,328	$	235	$	106	$	71	$	401	$	813	$	14	$	56,155

Financing Receivable Credit Quality Indicators

Commercial Credit Exposure

Credit Risk Profile by Creditworthiness Category ^(a)

September 30,
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	$	384	$	342	$	3	$	2		—	$	1	$	501	$	528	$	888	$	873
A		1,439		1,147		4		2		—		—		478		596		1,921		1,745
BBB — BB		27,438		23,822		7,690		7,736	$	935		895		2,808		2,848		38,871		35,301
B		639		594		272		298		89		100		88		75		1,088		1,067
CCC — C		1,195		778		211		238		46		40		54		88		1,506		1,144
Total	$	31,095	$	26,683	$	8,180	$	8,276	$	1,070	$	1,036	$	3,929	$	4,135	$	44,274	$	40,130

(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)}

September 30,
in millions
	Residential — Prime
GRADE	2015		2014
Pass	$	12,496	$	12,576
Substandard		263		287
Total	$	12,759	$	12,863

Credit Risk Profile Based on Payment Activity ^(a)

September 30,	Consumer — Key Community Bank				Credit cards				Consumer — Marine				Consumer — Other				Total
in millions	2015		2014		2015		2014		2015		2014		2015		2014		2015		2014
Performing	$	1,611	$	1,544	$	768	$	723	$	614	$	812	$	37	$	50	$	3,030	$	3,129
Nonperforming		1		2		2		1		6		16		1		1		10		20
Total	$	1,612	$	1,546	$	770	$	724	$	620	$	828	$	38	$	51	$	3,040	$	3,149

(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 September 30,						Nine months ended September 30,
in millions	2015			2014			2015			2014
Balance at beginning of period — continuing operations	$	796		$	814		$	794		$	848
Charge-offs		(53	)		(49	)		(152	)		(162	)
Recoveries		12			18			47			81
Net loans and leases charged off		(41	)		(31	)		(105	)		(81	)
Provision for loan and lease losses from continuing operations		36			21			102			37
Foreign currency translation adjustment		(1	)		—			(1	)		—
Balance at end of period — continuing operations	$	790		$	804		$	790		$	804

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:

in millions	December 31, 2014		Provision			Charge-offs			Recoveries		September 30, 2015
Commercial, financial and agricultural	$	391	$	93		$	(59	)	$	13	$	438
Real estate — commercial mortgage		148		(9	)		(2	)		2		139
Real estate — construction		28		(3	)		(1	)		1		25
Commercial lease financing		56		(13	)		(5	)		7		45
Total commercial loans		623		68			(67	)		23		647
Real estate — residential mortgage		23		(1	)		(4	)		1		19
Home equity:
Key Community Bank		66		4			(21	)		5		54
Other		5		(1	)		(4	)		4		4
Total home equity loans		71		3			(25	)		9		58
Consumer other — Key Community Bank		22		11			(18	)		5		20
Credit cards		33		20			(23	)		2		32
Consumer other:
Marine		21		—			(14	)		6		13
Other		1		—			(1	)		1		1
Total consumer other:		22		—			(15	)		7		14
Total consumer loans		171		33			(85	)		24		143
Total ALLL — continuing operations		794		101	(a)		(152	)		47		790
Discontinued operations		29		9			(25	)		10		23
Total ALLL — including discontinued operations	$	823	$	110		$	(177	)	$	57	$	813

(a) Includes a $1 million foreign currency translation adjustment. Excludes a provision for losses on lending-related commitments of $19 million.

in millions	December 31, 2013		Provision			Charge-offs			Recoveries		September 30, 2014
Commercial, financial and agricultural	$	362	$	32		$	(35	)	$	27	$	386
Real estate — commercial mortgage		165		(7	)		(3	)		4		159
Real estate — construction		32		(16	)		(4	)		16		28
Commercial lease financing		62		(9	)		(6	)		8		55
Total commercial loans		621		—			(48	)		55		628
Real estate — residential mortgage		37		(10	)		(7	)		2		22
Home equity:
Key Community Bank		84		9			(29	)		7		71
Other		11		(1	)		(8	)		4		6
Total home equity loans		95		8			(37	)		11		77
Consumer other — Key Community Bank		29		14			(23	)		4		24
Credit cards		34		24			(27	)		1		32
Consumer other:
Marine		29		1			(18	)		7		19
Other		3		—			(2	)		1		2
Total consumer other:		32		1			(20	)		8		21
Total consumer loans		227		37			(114	)		26		176
Total ALLL — continuing operations		848		37	(a)		(162	)		81		804
Discontinued operations		39		15			(34	)		11		31
Total ALLL — including discontinued operations	$	887	$	52		$	(196	)	$	92	$	835

(a) Excludes a 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 September 30, 2015, follows:

	Allowance						Outstanding
	Individually		Collectively		Purchased				Individually		Collectively		Purchased
September 30, 2015	Evaluated for		Evaluated for		Credit				Evaluated for		Evaluated for		Credit
in millions	Impairment		Impairment		Impaired		Loans		Impairment		Impairment		Impaired
Commercial, financial and agricultural	$	9	$	429		—	$	31,095	$	72	$	31,023		—
Commercial real estate:
Commercial mortgage		1		138		—		8,180		15		8,165		—
Construction		—		25		—		1,070		5		1,065		—
Total commercial real estate loans		1		163		—		9,250		20		9,230		—
Commercial lease financing		—		45		—		3,929		—		3,929		—
Total commercial loans		10		637		—		44,274		92		44,182		—
Real estate — residential mortgage		5		13	$	1		2,267		56		2,200	$	11
Home equity:
Key Community Bank		17		37		—		10,282		113		10,168		1
Other		2		2		—		222		11		211		—
Total home equity loans		19		39		—		10,504		124		10,379		1
Consumer other — Key Community Bank		—		20		—		1,612		3		1,609		—
Credit cards		—		32		—		770		3		767		—
Consumer other:
Marine		2		11		—		620		38		582		—
Other		—		1		—		38		2		36		—
Total consumer other		2		12		—		658		40		618		—
Total consumer loans		26		116		1		15,811		226		15,573		12
Total ALLL — continuing operations		36		753		1		60,085		318		59,755		12
Discontinued operations		2		21		—		1,891		20		1,871		—
Total ALLL — including discontinued operations	$	38	$	774	$	1	$	61,976	$	338	$	61,626	$	12

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

	Allowance						Outstanding
	Individually		Collectively		Purchased					Individually		Collectively			Purchased
December 31, 2014	Evaluated for		Evaluated for		Credit					Evaluated for		Evaluated for			Credit
in millions	Impairment		Impairment		Impaired		Loans			Impairment		Impairment			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 September 30, 2014, follows:

	Allowance						Outstanding
	Individually		Collectively		Purchased					Individually		Collectively			Purchased
September 30, 2014	Evaluated for		Evaluated for		Credit					Evaluated for		Evaluated for			Credit
in millions	Impairment		Impairment		Impaired		Loans			Impairment		Impairment			Impaired
Commercial, financial and agricultural	$	7	$	379		—	$	26,683		$	31	$	26,652			—
Commercial real estate:
Commercial mortgage		2		157		—		8,276			29		8,246		$	1
Construction		—		28		—		1,036			10		1,026			—
Total commercial real estate loans		2		185		—		9,312			39		9,272			1
Commercial lease financing		—		55		—		4,135			—		4,135			—
Total commercial loans		9		619		—		40,130			70		40,059			1
Real estate — residential mortgage		4		17	$	1		2,213			55		2,146			12
Home equity:
Key Community Bank		16		55		—		10,380			105		10,274			1
Other		2		4		—		283			12		271			—
Total home equity loans		18		59		—		10,663			117		10,545			1
Consumer other — Key Community Bank		—		24		—		1,546			4		1,542			—
Credit cards		1		31		—		724			3		721			—
Consumer other:
Marine		5		14		—		828			48		780			—
Other		1		1		—		51			2		49			—
Total consumer other		6		15		—		879			50		829			—
Total consumer loans		29		146		1		16,025			229		15,783			13
Total ALLL — continuing operations		38		765		1		56,155			299		55,842			14
Discontinued operations		1		30		—		2,392	(a)		16		2,376	(a)		—
Total ALLL — including discontinued operations	$	39	$	795	$	1	$	58,547		$	315	$	58,218		$	14

(a) Amount includes $201 million 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 September 30,					Nine months ended September 30,
in millions	2015		2014			2015		2014
Balance at beginning of period	$	45	$	37		$	35	$	37
Provision (credit) for losses on lending-related commitments		9		(2	)		19		(2	)
Balance at end of period	$	54	$	35		$	54	$	35

XML

Fair Value Measurements - Quantitative Information about Level 3 Fair Value Measurements (Detail) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014
Fair Value, Option, Quantitative Disclosures [Line Items]
Other investments	$ 691	$ 760	$ 822
Goodwill	1,060	1,057	1,051
Nonrecurring [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Impaired loans	3	5	6
Level 3 [Member] | Recurring [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Other investments	66	102	115
Level 3 [Member] | Nonrecurring [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Impaired loans	3	5	6
Goodwill	$ 1,060	$ 1,057	$ 1,051
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
Level 3 [Member] | Discount [Member] | Recurring [Member] | Weighted Average [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Percentage of significant unobservable inputs	6.00%
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%	10.00%
Level 3 [Member] | Discount [Member] | Nonrecurring [Member] | Maximum [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Percentage of significant unobservable inputs	50.00%	64.00%	90.00%
Level 3 [Member] | Discount [Member] | Nonrecurring [Member] | Weighted Average [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Percentage of significant unobservable inputs	14.00%	62.00%	24.00%
Level 3 [Member] | Equity Instruments of Public Companies [Member] | Recurring [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Fair value measurement, valuation technique	Market approach
Level 3 [Member] | EBITDA Multiple [Member] | Recurring [Member] | Minimum [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Percentage of significant unobservable inputs		5.40%	6.00%
Level 3 [Member] | EBITDA Multiple [Member] | Recurring [Member] | Maximum [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Percentage of significant unobservable inputs		6.00%	6.40%
Level 3 [Member] | EBITDA Multiple [Member] | Recurring [Member] | Weighted Average [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Percentage of significant unobservable inputs	5.40%	5.50%	6.30%
Level 3 [Member] | EBITDA Multiple (Where Applicable) [Member] | Recurring [Member] | Minimum [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Percentage of significant unobservable inputs	5.40%	5.50%	5.50%
Level 3 [Member] | EBITDA Multiple (Where Applicable) [Member] | Recurring [Member] | Maximum [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Percentage of significant unobservable inputs	6.50%	6.20%	6.00%
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	6.40%	5.80%	5.70%
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] | Revenue Multiple (Where Applicable) [Member] | Recurring [Member] | Minimum [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Percentage of significant unobservable inputs		4.30%	4.30%
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%	4.30%
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%

XML

Acquisitions and Discontinued Operations - Components of Assets and Liabilities from Discontinued Operations (Detail) - USD ($)	Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014	Dec. 31, 2013
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Seller note		$ 191,000,000	$ 201,000,000
Cash and due from banks	$ 470,000,000	653,000,000	651,000,000	$ 617,000,000
Total assets	2,086,000,000	2,324,000,000	2,421,000,000
Total liabilities	0	3,000,000	3,000,000
Discontinued Operations [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Cash and due from banks	15,000,000	19,000,000	19,000,000
Total assets	2,086,000,000	2,324,000,000	2,421,000,000
Total liabilities		3,000,000	3,000,000
Discontinued Operations [Member] | Victory Capital Management [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Total assets			17,000,000
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	15,000,000	19,000,000	19,000,000
Total assets	$ 15,000,000	19,000,000	19,000,000
Accrued expense and other liabilities		3,000,000	3,000,000
Total liabilities		$ 3,000,000	3,000,000
Discontinued Operations [Member] | Seller Note [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Seller note			17,000,000
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			$ 17,000,000

XML

Trust Preferred Securities Issued by Unconsolidated Subsidiaries - Additional Information (Detail) $ in Millions	Sep. 30, 2015 USD ($)
Trust Preferred Securities [Abstract]
Percentage of trust preferred securities issued by the KeyCorp of Tier 1 capital	8.00%
Trust preferred securities issued by the KeyCorp of Tier 1 capital	$ 85

XML

Accumulated Other Comprehensive Income - Reclassifications Out of AOCI (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Corporate services income	$ 57	$ 42	$ 143	$ 125
Income taxes	72	64	230	232
Income (loss) from continuing operations	220	203	686	694
Personnel expense	(426)	(405)	(1,223)	(1,182)
Interest income - Loans	542	531	1,597	1,576
Interest expense - Long term debt	(41)	(33)	(118)	(98)
Reclassification out of Accumulated Other Comprehensive Income [Member] | Unrealized Gains (Losses) on Securities Available for Sale [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Income (loss) from continuing operations before income taxes			(1)
Income (loss) from continuing operations			(1)
Reclassification out of Accumulated Other Comprehensive Income [Member] | Unrealized Gains (Losses) on Securities Available for Sale [Member] | Realized Losses [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Other income			(1)
Reclassification out of Accumulated Other Comprehensive Income [Member] | Unrealized Gains (Losses) on Derivative Financial Instruments [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Income (loss) from continuing operations before income taxes	27	18	70	46
Income taxes	10	7	26	17
Income (loss) from continuing operations	17	11	44	29
Reclassification out of Accumulated Other Comprehensive Income [Member] | Unrealized Gains (Losses) on Derivative Financial Instruments [Member] | Interest Rate [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Interest income - Loans	28	18	73	49
Interest expense - Long term debt	(1)	(1)	(3)	(3)
Reclassification out of Accumulated Other Comprehensive Income [Member] | Unrealized Gains (Losses) on Derivative Financial Instruments [Member] | Foreign Exchange [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Other income		1
Reclassification out of Accumulated Other Comprehensive Income [Member] | Foreign Currency Translation Adjustment [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Corporate services income	(1)		(2)	3
Income (loss) from continuing operations before income taxes	(1)		(2)	3
Income taxes	1		1
Income (loss) from continuing operations			(1)	3
Reclassification out of Accumulated Other Comprehensive Income [Member] | Net Pension and Postretirement Benefit Costs [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Income (loss) from continuing operations before income taxes	(23)	(24)	(31)	32
Income taxes	(9)	(10)	12	(13)
Income (loss) from continuing operations	(14)	(14)	(19)	(19)
Reclassification out of Accumulated Other Comprehensive Income [Member] | Net Pension and Postretirement Benefit Costs [Member] | Amortization of Losses [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Personnel expense	(4)	(4)	(13)	(12)
Reclassification out of Accumulated Other Comprehensive Income [Member] | Net Pension and Postretirement Benefit Costs [Member] | Amortization Of Unrecognized Prior Service Cost [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Personnel expense	$ (19)		1
Reclassification out of Accumulated Other Comprehensive Income [Member] | Net Pension and Postretirement Benefit Costs [Member] | Settlement Loss [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Personnel expense		$ (20)	$ (19)	$ (20)

XML

Fair Value Measurements - Fair Value of Assets and Liabilities Measured on Recurring Basis (Detail) - USD ($) $ in Millions	Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014
ASSETS MEASURED ON A RECURRING BASIS
Total trading account securities	$ 811	$ 750	$ 965
Securities available for sale	14,376	13,360	12,245
Derivative asset netting adjustments	(945)	(1,034)	(613)
Total derivative assets	793	609	413
LIABILITIES MEASURED ON A RECURRING BASIS
Derivative liability netting adjustments	(566)	(542)	(393)
Total derivative liabilities	676	784	384
Collateralized Mortgage Obligations [Member]
ASSETS MEASURED ON A RECURRING BASIS
Securities available for sale	12,003	11,270	10,009
States and Political Subdivisions [Member]
ASSETS MEASURED ON A RECURRING BASIS
Securities available for sale	15	23	27
Other Securities [Member]
ASSETS MEASURED ON A RECURRING BASIS
Securities available for sale	28	32	32
Other Mortgage-Backed Securities [Member]
ASSETS MEASURED ON A RECURRING BASIS
Securities available for sale	2,330	2,035	2,177
Recurring [Member]
ASSETS MEASURED ON A RECURRING BASIS
Commercial loans	9	2	1
Total trading account assets	811	750	965
Securities available for sale	14,376	13,360	12,245
Total other investments	350	420	485
Derivative assets	1,738	1,643	1,026
Derivative asset netting adjustments	(945)	(1,034)	(613)
Total derivative assets	793	609	413
Accrued income and other assets	2
Total assets at fair value	16,332	15,139	14,108
LIABILITIES MEASURED ON A RECURRING BASIS
Derivative liabilities	1,242	1,326	777
Derivative liability netting adjustments	(566)	(542)	(393)
Total derivative liabilities	676	784	384
Accrued expense and other liabilities	2
Total liabilities on a recurring basis at fair value	1,355	1,207	880
Recurring [Member] | Collateralized Mortgage Obligations [Member]
ASSETS MEASURED ON A RECURRING BASIS
Securities available for sale	12,003	11,270	10,009
Recurring [Member] | Trading Account Assets [Member]
ASSETS MEASURED ON A RECURRING BASIS
Total trading account securities	802	748	964
Recurring [Member] | U.S. Treasury, Agencies and Corporations [Member]
ASSETS MEASURED ON A RECURRING BASIS
Total trading account securities	694	555	596
Recurring [Member] | States and Political Subdivisions [Member]
ASSETS MEASURED ON A RECURRING BASIS
Total trading account securities	35	38	24
Securities available for sale	15	23	27
Recurring [Member] | Other Securities [Member]
ASSETS MEASURED ON A RECURRING BASIS
Total trading account securities	27	31	158
Securities available for sale	28	32	32
Recurring [Member] | Principal Investments Direct [Member]
ASSETS MEASURED ON A RECURRING BASIS
Total other investments	66	104	115
Recurring [Member] | Principal Investments Indirect [Member]
ASSETS MEASURED ON A RECURRING BASIS
Total other investments	271	302	353
Recurring [Member] | Other [Member]
ASSETS MEASURED ON A RECURRING BASIS
Total other investments	4	4	4
Recurring [Member] | Principal Investments [Member]
ASSETS MEASURED ON A RECURRING BASIS
Total other investments	337	406	468
Recurring [Member] | Equity and Mezzanine Investments Indirect [Member]
ASSETS MEASURED ON A RECURRING BASIS
Total other investments	9	10	13
Recurring [Member] | Private Equity and Mezzanine Investments [Member]
ASSETS MEASURED ON A RECURRING BASIS
Total other investments	9	10	13
Recurring [Member] | Other Mortgage-Backed Securities [Member]
ASSETS MEASURED ON A RECURRING BASIS
Total trading account securities	46	124	186
Securities available for sale	2,330	2,035	2,177
Recurring [Member] | Short Positions [Member]
LIABILITIES MEASURED ON A RECURRING BASIS
Derivative liabilities	677	423	496
Recurring [Member] | Interest Rate [Member]
ASSETS MEASURED ON A RECURRING BASIS
Derivative assets	1,119	937	846
LIABILITIES MEASURED ON A RECURRING BASIS
Derivative liabilities	656	644	616
Recurring [Member] | Foreign Exchange [Member]
ASSETS MEASURED ON A RECURRING BASIS
Derivative assets	130	93	81
LIABILITIES MEASURED ON A RECURRING BASIS
Derivative liabilities	112	81	64
Recurring [Member] | Commodity [Member]
ASSETS MEASURED ON A RECURRING BASIS
Derivative assets	482	608	95
LIABILITIES MEASURED ON A RECURRING BASIS
Derivative liabilities	469	594	90
Recurring [Member] | Credit [Member]
ASSETS MEASURED ON A RECURRING BASIS
Derivative assets	7	5	4
LIABILITIES MEASURED ON A RECURRING BASIS
Derivative liabilities	5	7	7
Level 1 [Member] | Recurring [Member]
ASSETS MEASURED ON A RECURRING BASIS
Total trading account assets	4	2	13
Securities available for sale	11	22	22
Total other investments		2
Derivative assets	120	91	73
Total derivative assets	120	91	73
Total assets at fair value	135	117	108
LIABILITIES MEASURED ON A RECURRING BASIS
Derivative liabilities	102	77	55
Total derivative liabilities	102	77	55
Total liabilities on a recurring basis at fair value	102	77	61
Level 1 [Member] | Recurring [Member] | Trading Account Assets [Member]
ASSETS MEASURED ON A RECURRING BASIS
Total trading account securities	4	2	13
Level 1 [Member] | Recurring [Member] | Other Securities [Member]
ASSETS MEASURED ON A RECURRING BASIS
Total trading account securities	4	2	13
Securities available for sale	11	22	22
Level 1 [Member] | Recurring [Member] | Principal Investments Direct [Member]
ASSETS MEASURED ON A RECURRING BASIS
Total other investments		2
Level 1 [Member] | Recurring [Member] | Principal Investments [Member]
ASSETS MEASURED ON A RECURRING BASIS
Total other investments		2
Level 1 [Member] | Recurring [Member] | Short Positions [Member]
LIABILITIES MEASURED ON A RECURRING BASIS
Derivative liabilities			6
Level 1 [Member] | Recurring [Member] | Foreign Exchange [Member]
ASSETS MEASURED ON A RECURRING BASIS
Derivative assets	120	91	73
LIABILITIES MEASURED ON A RECURRING BASIS
Derivative liabilities	102	77	55
Level 2 [Member] | Recurring [Member]
ASSETS MEASURED ON A RECURRING BASIS
Commercial loans	9	2	1
Total trading account assets	807	748	952
Securities available for sale	14,348	13,328	12,213
Derivative assets	1,593	1,536	931
Total derivative assets	1,593	1,536	931
Accrued income and other assets	2
Total assets at fair value	16,750	15,612	14,096
LIABILITIES MEASURED ON A RECURRING BASIS
Derivative liabilities	1,140	1,248	721
Total derivative liabilities	1,140	1,248	721
Accrued expense and other liabilities	2
Total liabilities on a recurring basis at fair value	1,819	1,671	1,211
Level 2 [Member] | Recurring [Member] | Collateralized Mortgage Obligations [Member]
ASSETS MEASURED ON A RECURRING BASIS
Securities available for sale	12,003	11,270	10,009
Level 2 [Member] | Recurring [Member] | Trading Account Assets [Member]
ASSETS MEASURED ON A RECURRING BASIS
Total trading account securities	798	746	951
Level 2 [Member] | Recurring [Member] | U.S. Treasury, Agencies and Corporations [Member]
ASSETS MEASURED ON A RECURRING BASIS
Total trading account securities	694	555	596
Level 2 [Member] | Recurring [Member] | States and Political Subdivisions [Member]
ASSETS MEASURED ON A RECURRING BASIS
Total trading account securities	35	38	24
Securities available for sale	15	23	27
Level 2 [Member] | Recurring [Member] | Other Securities [Member]
ASSETS MEASURED ON A RECURRING BASIS
Total trading account securities	23	29	145
Level 2 [Member] | Recurring [Member] | Other Mortgage-Backed Securities [Member]
ASSETS MEASURED ON A RECURRING BASIS
Total trading account securities	46	124	186
Securities available for sale	2,330	2,035	2,177
Level 2 [Member] | Recurring [Member] | Short Positions [Member]
LIABILITIES MEASURED ON A RECURRING BASIS
Derivative liabilities	677	423	490
Level 2 [Member] | Recurring [Member] | Interest Rate [Member]
ASSETS MEASURED ON A RECURRING BASIS
Derivative assets	1,097	924	827
LIABILITIES MEASURED ON A RECURRING BASIS
Derivative liabilities	656	644	616
Level 2 [Member] | Recurring [Member] | Foreign Exchange [Member]
ASSETS MEASURED ON A RECURRING BASIS
Derivative assets	10	2	8
LIABILITIES MEASURED ON A RECURRING BASIS
Derivative liabilities	10	4	9
Level 2 [Member] | Recurring [Member] | Commodity [Member]
ASSETS MEASURED ON A RECURRING BASIS
Derivative assets	482	608	95
LIABILITIES MEASURED ON A RECURRING BASIS
Derivative liabilities	469	594	89
Level 2 [Member] | Recurring [Member] | Credit [Member]
ASSETS MEASURED ON A RECURRING BASIS
Derivative assets	4	2	1
LIABILITIES MEASURED ON A RECURRING BASIS
Derivative liabilities	5	6	7
Level 3 [Member] | Recurring [Member]
ASSETS MEASURED ON A RECURRING BASIS
Securities available for sale	17	10	10
Total other investments	350	418	485
Derivative assets	25	16	22
Total derivative assets	25	16	22
Total assets at fair value	392	444	517
LIABILITIES MEASURED ON A RECURRING BASIS
Derivative liabilities		1	1
Total derivative liabilities		1	1
Total liabilities on a recurring basis at fair value		1	1
Level 3 [Member] | Recurring [Member] | Other Securities [Member]
ASSETS MEASURED ON A RECURRING BASIS
Securities available for sale	17	10	10
Level 3 [Member] | Recurring [Member] | Principal Investments Direct [Member]
ASSETS MEASURED ON A RECURRING BASIS
Total other investments	66	102	115
Level 3 [Member] | Recurring [Member] | Principal Investments Indirect [Member]
ASSETS MEASURED ON A RECURRING BASIS
Total other investments	271	302	353
Level 3 [Member] | Recurring [Member] | Other [Member]
ASSETS MEASURED ON A RECURRING BASIS
Total other investments	4	4	4
Level 3 [Member] | Recurring [Member] | Principal Investments [Member]
ASSETS MEASURED ON A RECURRING BASIS
Total other investments	337	404	468
Level 3 [Member] | Recurring [Member] | Equity and Mezzanine Investments Indirect [Member]
ASSETS MEASURED ON A RECURRING BASIS
Total other investments	9	10	13
Level 3 [Member] | Recurring [Member] | Private Equity and Mezzanine Investments [Member]
ASSETS MEASURED ON A RECURRING BASIS
Total other investments	9	10	13
Level 3 [Member] | Recurring [Member] | Interest Rate [Member]
ASSETS MEASURED ON A RECURRING BASIS
Derivative assets	22	13	19
Level 3 [Member] | Recurring [Member] | Commodity [Member]
LIABILITIES MEASURED ON A RECURRING BASIS
Derivative liabilities			1
Level 3 [Member] | Recurring [Member] | Credit [Member]
ASSETS MEASURED ON A RECURRING BASIS
Derivative assets	$ 3	3	$ 3
LIABILITIES MEASURED ON A RECURRING BASIS
Derivative liabilities		$ 1

XML

Derivatives and Hedging Activities - Fair Values, Volume of Activity and Gain (Loss) Information Related to Derivative Instruments (Detail) - USD ($)	Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014
Derivatives, Fair Value [Line Items]
Notional Amount	$ 83,370,000,000	$ 65,317,000,000	$ 63,278,000,000
Derivative Assets	680,000,000	454,000,000	342,000,000
Derivative Liabilities	444,000,000	543,000,000	116,000,000
Derivative Asset, Netting adjustments	(945,000,000)	(1,034,000,000)	(613,000,000)
Derivative Liability, Netting adjustments	(566,000,000)	(542,000,000)	(393,000,000)
Derivative Assets	(113,000,000)	(155,000,000)	(71,000,000)
Derivative Liabilities	(232,000,000)	(241,000,000)	(268,000,000)
Derivatives Designated as Hedging Instruments [Member]
Derivatives, Fair Value [Line Items]
Notional Amount	18,229,000,000	15,466,000,000	14,359,000,000
Derivative assets	405,000,000	280,000,000	250,000,000
Derivative liabilities	12,000,000	26,000,000	44,000,000
Derivatives Not Designated as Hedging Instruments [Member]
Derivatives, Fair Value [Line Items]
Notional Amount	65,141,000,000	49,851,000,000	48,919,000,000
Derivative assets	1,333,000,000	1,363,000,000	776,000,000
Derivative liabilities	1,230,000,000	1,300,000,000	733,000,000
Net Derivatives [Member]
Derivatives, Fair Value [Line Items]
Notional Amount	83,370,000,000	65,317,000,000	63,278,000,000
Derivative Assets	793,000,000	609,000,000	413,000,000
Derivative Liabilities	676,000,000	784,000,000	384,000,000
Interest Rate [Member] | Derivatives Designated as Hedging Instruments [Member]
Derivatives, Fair Value [Line Items]
Notional Amount	17,910,000,000	15,095,000,000	13,946,000,000
Derivative assets	394,000,000	272,000,000	237,000,000
Derivative liabilities	12,000,000	26,000,000	44,000,000
Interest Rate [Member] | Derivatives Not Designated as Hedging Instruments [Member]
Derivatives, Fair Value [Line Items]
Notional Amount	57,006,000,000	43,771,000,000	42,088,000,000
Derivative assets	725,000,000	665,000,000	608,000,000
Derivative liabilities	644,000,000	618,000,000	572,000,000
Foreign Exchange [Member] | Derivatives Designated as Hedging Instruments [Member]
Derivatives, Fair Value [Line Items]
Notional Amount	319,000,000	371,000,000	413,000,000
Derivative assets	11,000,000	8,000,000	13,000,000
Foreign Exchange [Member] | Derivatives Not Designated as Hedging Instruments [Member]
Derivatives, Fair Value [Line Items]
Notional Amount	6,161,000,000	4,024,000,000	4,433,000,000
Derivative assets	119,000,000	85,000,000	69,000,000
Derivative liabilities	112,000,000	81,000,000	64,000,000
Commodity [Member] | Derivatives Not Designated as Hedging Instruments [Member]
Derivatives, Fair Value [Line Items]
Notional Amount	1,394,000,000	1,544,000,000	1,780,000,000
Derivative assets	482,000,000	608,000,000	95,000,000
Derivative liabilities	469,000,000	594,000,000	90,000,000
Credit [Member] | Derivatives Not Designated as Hedging Instruments [Member]
Derivatives, Fair Value [Line Items]
Notional Amount	580,000,000	512,000,000	618,000,000
Derivative assets	7,000,000	5,000,000	4,000,000
Derivative liabilities	$ 5,000,000	$ 7,000,000	$ 7,000,000

XML

Asset Quality - Breakdown of Individually Impaired Loans (Detail) - USD ($) $ in Millions	9 Months Ended		12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Financing Receivable, Impaired [Line Items]
With no related allowance recorded, Recorded Investment	$ 127	$ 146	$ 115
Recorded Investment	318	298	302
With no related allowance recorded, Unpaid Principal Balance	154	171	133
Unpaid Principal Balance	359	324	320
With no related allowance recorded, Specific Allowance	0
With no related allowance recorded, Average Recorded Investment	119	141	131
With related allowance recorded, Recorded Investment	191	152	187
With related allowance recorded, Unpaid Principal Balance	205	153	187
Specific Allowance	36	38	40
With related allowance recorded, Average Recorded Investment	207	146	169
Average Recorded Investment	326	287	300
Commercial, Financial and Agricultural [Member]
Financing Receivable, Impaired [Line Items]
With no related allowance recorded, Recorded Investment	30	11	6
With no related allowance recorded, Unpaid Principal Balance	54	20	17
With no related allowance recorded, Specific Allowance	0
With no related allowance recorded, Average Recorded Investment	19	12	8
With related allowance recorded, Recorded Investment	43	20	37
With related allowance recorded, Unpaid Principal Balance	56	21	37
Specific Allowance	9	7	9
With related allowance recorded, Average Recorded Investment	58	12	28
Commercial Real Estate: Commercial Mortgage [Member]
Financing Receivable, Impaired [Line Items]
With no related allowance recorded, Recorded Investment	9	22	15
With no related allowance recorded, Unpaid Principal Balance	12	27	20
With no related allowance recorded, Specific Allowance	0
With no related allowance recorded, Average Recorded Investment	10	23	19
With related allowance recorded, Recorded Investment	5	7	6
With related allowance recorded, Unpaid Principal Balance	6	7	6
Specific Allowance	1	2	2
With related allowance recorded, Average Recorded Investment	6	5	6
Commercial Real Estate: Construction [Member]
Financing Receivable, Impaired [Line Items]
With no related allowance recorded, Recorded Investment	5	9	5
With no related allowance recorded, Unpaid Principal Balance	5	20	6
With no related allowance recorded, Specific Allowance	0
With no related allowance recorded, Average Recorded Investment	6	7	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			2
Commercial Real Estate Loans [Member]
Financing Receivable, Impaired [Line Items]
With no related allowance recorded, Recorded Investment	14	31	20
With no related allowance recorded, Unpaid Principal Balance	17	47	26
With no related allowance recorded, Specific Allowance	0
With no related allowance recorded, Average Recorded Investment	16	30	26
With related allowance recorded, Recorded Investment	5	7	9
With related allowance recorded, Unpaid Principal Balance	6	7	9
Specific Allowance	1	2	3
With related allowance recorded, Average Recorded Investment	6	5	8
Commercial Loans [Member]
Financing Receivable, Impaired [Line Items]
With no related allowance recorded, Recorded Investment	44	42	26
With no related allowance recorded, Unpaid Principal Balance	71	67	43
With no related allowance recorded, Specific Allowance	0
With no related allowance recorded, Average Recorded Investment	35	42	34
With related allowance recorded, Recorded Investment	48	27	46
With related allowance recorded, Unpaid Principal Balance	62	28	46
Specific Allowance	10	9	12
With related allowance recorded, Average Recorded Investment	64	17	36
Real Estate - Residential Mortgage [Member]
Financing Receivable, Impaired [Line Items]
With no related allowance recorded, Recorded Investment	22	36	24
With no related allowance recorded, Unpaid Principal Balance	22	36	24
With no related allowance recorded, Specific Allowance	0
With no related allowance recorded, Average Recorded Investment	22	30	30
With related allowance recorded, Recorded Investment	33	19	31
With related allowance recorded, Unpaid Principal Balance	33	19	31
Specific Allowance	5	4	5
With related allowance recorded, Average Recorded Investment	33	24	25
Home Equity: Key Community Bank [Member]
Financing Receivable, Impaired [Line Items]
With no related allowance recorded, Recorded Investment	58	64	62
With no related allowance recorded, Unpaid Principal Balance	58	64	63
With no related allowance recorded, Specific Allowance	0
With no related allowance recorded, Average Recorded Investment	59	65	63
With related allowance recorded, Recorded Investment	54	41	46
With related allowance recorded, Unpaid Principal Balance	54	41	46
Specific Allowance	17	16	16
With related allowance recorded, Average Recorded Investment	53	39	43
Home Equity: Other [Member]
Financing Receivable, Impaired [Line Items]
With no related allowance recorded, Recorded Investment	2	2	1
With no related allowance recorded, Unpaid Principal Balance	2	2	1
With no related allowance recorded, Specific Allowance	0
With no related allowance recorded, Average Recorded Investment	2	2	2
With related allowance recorded, Recorded Investment	10	11	11
With related allowance recorded, Unpaid Principal Balance	10	11	11
Specific Allowance	1	2	2
With related allowance recorded, Average Recorded Investment	10	11	11
Home Equity Loans [Member]
Financing Receivable, Impaired [Line Items]
With no related allowance recorded, Recorded Investment	60	66	63
With no related allowance recorded, Unpaid Principal Balance	60	66	64
With no related allowance recorded, Specific Allowance	0
With no related allowance recorded, Average Recorded Investment	61	67	65
With related allowance recorded, Recorded Investment	64	52	57
With related allowance recorded, Unpaid Principal Balance	64	52	57
Specific Allowance	18	18	18
With related allowance recorded, Average Recorded Investment	63	50	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
With no related allowance recorded, Average Recorded Investment	1	2	2
With related allowance recorded, Recorded Investment	38	46	43
With related allowance recorded, Unpaid Principal Balance	38	46	43
Specific Allowance	2	5	5
With related allowance recorded, Average Recorded Investment	39	47	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
With no related allowance recorded, Average Recorded Investment	1	2	2
With related allowance recorded, Recorded Investment	40	48	45
With related allowance recorded, Unpaid Principal Balance	40	48	45
Specific Allowance	2	6	5
With related allowance recorded, Average Recorded Investment	41	49	47
Consumer Loans [Member]
Financing Receivable, Impaired [Line Items]
With no related allowance recorded, Recorded Investment	83	104	89
With no related allowance recorded, Unpaid Principal Balance	83	104	90
With no related allowance recorded, Specific Allowance	0
With no related allowance recorded, Average Recorded Investment	84	99	97
With related allowance recorded, Recorded Investment	143	125	141
With related allowance recorded, Unpaid Principal Balance	143	125	141
Specific Allowance	26	29	28
With related allowance recorded, Average Recorded Investment	143	129	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
Specific Allowance	0
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	3	3	4
With related allowance recorded, Unpaid Principal Balance	3	3	4
Specific Allowance	1	1
With related allowance recorded, Average Recorded Investment	3	3	4
Other Consumer [Member]
Financing Receivable, Impaired [Line Items]
With related allowance recorded, Recorded Investment	2	2	2
With related allowance recorded, Unpaid Principal Balance	2	2	2
Specific Allowance	0	1
With related allowance recorded, Average Recorded Investment	$ 2	$ 2	$ 2

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Acquisitions and Discontinued Operations - Components of Assets of Education Lending Business (Detail) - USD ($)	Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Loans at fair value		$ 191,000,000	$ 201,000,000
Loans, net of unearned income	$ 60,085,000,000	57,381,000,000	56,155,000,000
Loans held for sale at fair value	0	0	0
Total assets	2,086,000,000	2,324,000,000	2,421,000,000
Discontinued Operations [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Loans, net of unearned income	1,891,000,000	2,104,000,000	2,174,000,000
Less: Allowance for loan and lease losses	23,000,000	29,000,000	31,000,000
Net loans	1,868,000,000	2,266,000,000	2,344,000,000
Accrued income and other assets	33,000,000	38,000,000	40,000,000
Total assets	2,086,000,000	2,324,000,000	2,421,000,000
Portfolio [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Loans held for sale at fair value	169,000,000
Portfolio [Member] | Discontinued Operations [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Loans at fair value		191,000,000	201,000,000
Loans held for sale at fair value	169,000,000
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	1,000,000	1,000,000	1,000,000
Loans, net of unearned income	1,891,000,000	2,104,000,000	2,174,000,000
Less: Allowance for loan and lease losses	23,000,000	29,000,000	31,000,000
Net loans	1,868,000,000	2,266,000,000	2,344,000,000
Accrued income and other assets	33,000,000	38,000,000	40,000,000
Total assets	2,071,000,000	2,305,000,000	2,385,000,000
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		$ 191,000,000	$ 201,000,000
Loans held for sale at fair value	$ 169,000,000

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Shareholders' Equity - Additional Information (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Cash dividends declared on common shares, per share	$ 0.075	$ 0.065	$ 0.215	$ 0.185
Dividend payable			$ 199,000,000	$ 178,000,000
Series A Preferred Stock [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Dividend payable per share	$ 1.9375		$ 1.9375
Dividend payable	$ 5,600,000
2015 Capital Plan [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Repurchase of common stock	725,000,000		$ 725,000,000
Stock repurchase program authorized amount	$ 123,000,000
Cash dividends declared on common shares, per share	$ 0.075
2016 [Member] | 2015 Capital Plan [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Proposed increase in cash dividends declared on common shares, per share			$ 0.085

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Fair Value Measurements - Additional Information (Detail) - USD ($)	9 Months Ended
	Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Liabilities measured at fair value on non recurring basis	$ 0	$ 0	$ 0
Loans held for sale adjusted to fair value	$ 0	0	0
Fair value of OREO property re-evaluated period	90 days
Loans, net of allowance	$ 59,295,000,000	56,587,000,000	55,351,000,000
Loan securitization trust VIEs, fair value	$ 169,000,000
Loans in portfolio		191,000,000	201,000,000
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]
Loans, net of allowance	$ 2,300,000,000	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	916,000,000	734,000,000	784,000,000
Fair Value [Member] | Discontinued Operations [Member] | Education Lending [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Loans, net of allowance	1,500,000,000	1,800,000,000	1,900,000,000
Loans in portfolio		191,000,000	201,000,000
Carrying Amount [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Loans, net of allowance	59,295,000,000	56,587,000,000	55,351,000,000
Carrying Amount [Member] | Discontinued Operations [Member] | Education Lending [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Loans, net of allowance	$ 1,900,000,000	$ 2,100,000,000	$ 2,100,000,000

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Securities - Available for Sale Securities Realized Gains and Losses (Detail) $ in Millions	9 Months Ended
	Sep. 30, 2015 USD ($)
Investments, Debt and Equity Securities [Abstract]
Realized gains	$ 0
Realized losses	1
Net securities gains (losses)	$ (1)

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Securities - Details of Securities (Detail) - USD ($) $ in Millions	Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 14,288	$ 13,365	$ 12,306
Gross Unrealized Gains	151	132	138
Gross Unrealized Losses	63	137	199
Fair Value	14,376	13,360	12,245
Held to maturities, Amortized Cost	4,936	5,015	4,997
Held to maturities, Gross Unrealized Gains	27	16	10
Held to maturities, Gross Unrealized Losses	23	57	96
Held to maturities, Fair Value	4,940	4,974	4,911
Other Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	27	29	28
Gross Unrealized Gains	1	3	4
Fair Value	28	32	32
Held to maturities, Amortized Cost	20	20	20
Held to maturities, Fair Value	20	20	20
States and Political Subdivisions [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	14	22	26
Gross Unrealized Gains	1	1	1
Fair Value	15	23	27
Collateralized Mortgage Obligations [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	11,938	11,310	10,096
Gross Unrealized Gains	127	96	109
Gross Unrealized Losses	62	136	196
Fair Value	12,003	11,270	10,009
Held to maturities, Amortized Cost	4,299	4,755	4,977
Held to maturities, Gross Unrealized Gains	24	15	10
Held to maturities, Gross Unrealized Losses	23	57	96
Held to maturities, Fair Value	4,300	4,713	4,891
Other Mortgage-Backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	2,309	2,004	2,156
Gross Unrealized Gains	22	32	24
Gross Unrealized Losses	1	1	3
Fair Value	2,330	2,035	$ 2,177
Held to maturities, Amortized Cost	617	240
Held to maturities, Gross Unrealized Gains	3	1
Held to maturities, Fair Value	$ 620	$ 241

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Securities - Securities by Maturity (Detail) - USD ($) $ in Millions	Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014
Investments, Debt and Equity Securities [Abstract]
Amortized Cost of Securities Available for sale, Due in one year or less	$ 297
Amortized Cost of Securities Available for sale, Due after one through five years	12,659
Amortized Cost of Securities Available for sale, Due after five through ten years	1,329
Amortized Cost of Securities Available for sale, Due after ten years	3
Total Amortized Cost of Securities Available for sale	14,288
Fair Value of Securities Available for sale, Due in one year or less	302
Fair Value of Securities Available for sale, Due after one through five years	12,735
Fair Value of Securities Available for sale, Due after five through ten years	1,336
Fair Value of Securities Available for sale, Due after ten years	3
Total Fair Value of Securities Available for sale	14,376
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	4,310
Amortized Cost of Held-to-Maturity Securities, Due after five through ten years	617
Amortized Cost of Held-to-Maturity Securities, Due after ten years	0
Held to maturities, Amortized Cost	4,936	$ 5,015	$ 4,997
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	4,311
Fair Value of Held-to-Maturity Securities, Due after five through ten years	620
Fair Value of Held-to-Maturity Securities, Due after ten years	0
Total Fair Value of Held-to-Maturity Securities	$ 4,940	$ 4,974	$ 4,911

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Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Nonrecurring Basis (Detail) - USD ($)	Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014
ASSETS MEASURED ON A NONRECURRING BASIS
Loans held for sale	$ 0	$ 0	$ 0
Nonrecurring [Member]
ASSETS MEASURED ON A NONRECURRING BASIS
Impaired loans	3,000,000	5,000,000	6,000,000
Loans held for sale	0	0	0
Accrued income and other assets	6,000,000	7,000,000	4,000,000
Total assets at fair value	9,000,000	12,000,000	10,000,000
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	3,000,000	5,000,000	6,000,000
Loans held for sale	0	0	0
Accrued income and other assets	6,000,000	7,000,000	4,000,000
Total assets at fair value	$ 9,000,000	$ 12,000,000	$ 10,000,000

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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	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Indirect Investments [Member]
Fair Value, Estimate Not Practicable, Financial Statement Captions [Line Items]
Fair Value	$ 9		$ 9
Unfunded Commitments	1		1
Indirect Investments [Member] | Passive Funds [Member]
Fair Value, Estimate Not Practicable, Financial Statement Captions [Line Items]
Fair Value	9		9
Unfunded Commitments	1		1
Principal Investments [Member]
Fair Value, Estimate Not Practicable, Financial Statement Captions [Line Items]
Fair Value	337		337
Unfunded Commitments	53		53
Funded Commitments	2	$ 3	7	$ 10
Funded Other			2	2
Principal Investments [Member] | Indirect Investments [Member]
Fair Value, Estimate Not Practicable, Financial Statement Captions [Line Items]
Fair Value	271		271
Unfunded Commitments	53		53
Funded Commitments	2	$ 3	7	10
Principal Investments [Member] | Direct Investments [Member]
Fair Value, Estimate Not Practicable, Financial Statement Captions [Line Items]
Fair Value	$ 66		66
Funded Other			$ 2	$ 2

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Contingent Liabilities and Guarantees

9 Months Ended

Sep. 30, 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 September 30, 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.

	Maximum Potential
September 30, 2015	Undiscounted		Liability
in millions	Future Payments		Recorded
Financial guarantees:
Standby letters of credit	$	11,498	$	63
Recourse agreement with FNMA		1,747		4
Return guarantee agreement with LIHTC investors		4		4
Written put options (a)		2,131		117
Total	$	15,380	$	188

(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% to 30% probability of payment), moderate (greater than 30% to 70% probability of payment), or high (greater than 70% 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 September 30, 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 September 30, 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 11 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 September 30, 2015, the outstanding commercial mortgage loans in this program had a weighted-average remaining term of 7.85 years, and the unpaid principal balance outstanding of loans sold by us as a participant was $6.1 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 September 30, 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 September 30, 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 September 30, 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 September 30, 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 - Loans Held for Sale (Detail) - USD ($) $ in Millions	Sep. 30, 2015	Jun. 30, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial, financial and agricultural	$ 74		$ 63	$ 30
Commercial lease financing	10		15	10
Total loans held for sale	916	$ 835	734	784	$ 435
Commercial Mortgage [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Real estate - mortgage	806		638	725
Residential Mortgage [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Real estate - mortgage	$ 26		$ 18	$ 19

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Trust Preferred Securities Issued by Unconsolidated Subsidiaries (Tables)

9 Months Ended

Sep. 30, 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:

					Principal		Interest Rate			Maturity
	Trust Preferred				Amount of		of Trust Preferred			of Trust Preferred
	Securities,		Common		Debentures,		Securities and			Securities and
dollars in millions	Net of Discount (a)		Stock		Net of Discount (b)		Debentures (c)			Debentures
September 30, 2015
KeyCorp Capital I	$	156	$	6	$	162		1.024	%		2028
KeyCorp Capital II		111		4		115		6.875			2029
KeyCorp Capital III		145		4		149		7.750			2029
Total	$	412	$	14	$	426		4.968	%		—
December 31, 2014	$	408	$	14	$	422		4.926	%		—
September 30, 2014	$	397	$	14	$	411		4.856	%		—

(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 $72 million at September 30, 2015, $68 million at December 31, 2014, and $57 million at September 30, 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 $72 million at September 30, 2015, $68 million at December 31, 2014, and $57 million at September 30, 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 - Change in Fair Values of Level 3 Financial Instruments (Parenthetical) (Detail) - USD ($)	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Fair Value Disclosures [Abstract]
Issuance of financial instrument	$ 0	$ 0

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Derivatives and Hedging Activities - Fair Value of Credit Derivatives Purchased and Sold (Parenthetical) (Detail) - USD ($) $ in Millions	Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014
Maximum [Member] | Other [Member]
Credit Derivatives [Line Items]
Fair value of other credit derivatives sold	$ 1	$ 1	$ 1

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Mortgage Servicing Assets (Tables)

9 Months Ended

Sep. 30, 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:

	Nine months ended September 30,
in millions	2015			2014
Balance at beginning of period	$	323		$	332
Servicing retained from loan sales		39			19
Purchases		29			33
Amortization		(71	)		(76	)
Balance at end of period	$	320		$	308
Fair value at end of period	$	427		$	370

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 September 30, 2015, and September 30, 2014, along with the valuation techniques, are shown in the following table:

September 30, 2015 dollars in millions	Valuation Technique	Significant Unobservable Input	Range (Weighted-Average)
Mortgage servicing assets	Discounted cash flow	Prepayment speed	1.70 - 16.30% (4.90%)
		Expected defaults	1.00 - 3.00% (1.70%)
		Residual cash flows discount rate	7.00 - 15.00% (7.80%)
		Escrow earn rate	0.90 - 3.50% (2.30%)
		Servicing cost	$150 - $2,719 ($1,151)
		Loan assumption rate	0.00 - 3.00% (1.37%)
		Percentage late	0.00 - 2.00% (0.33%)

September 30, 2014 dollars in millions	Valuation Technique	Significant Unobservable Input	Range (Weighted-Average)
Mortgage servicing assets	Discounted cash flow	Prepayment speed	1.90 - 12.30% (5.90%)
		Expected defaults	1.00 - 3.00% (1.90%)
		Residual cash flows discount rate	7.00 - 14.10% (7.80%)
		Escrow earn rate	0.50 - 3.10% (1.70%)
		Servicing cost	$150 - $2,700 ($1,053)
		Loan assumption rate	0.20 - 3.00% (1.52%)
		Percentage late	0.00 - 2.00% (0.32%)

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Loans and Loans Held for Sale - Summary of Changes in Loans Held for Sale (Detail) - USD ($) $ in Millions	3 Months Ended
	Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014
Loans Receivables [Abstract]
Balance at beginning of the period	$ 835	$ 784	$ 435
New originations	1,673	2,465	1,593
Transfers from (to) held to maturity, net	24	2
Loan sales	(1,616)	(2,516)	(1,243)
Loan draws (payments), net		(1)	(1)
Balance at end of period	$ 916	$ 734	$ 784

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Asset Quality - Changes in Allowance for Loan and Lease Losses by Loan Category (Parenthetical) (Detail) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Receivables [Abstract]
Provision/Credit for losses on lending-related commitments	$ 110	$ 52
Foreign currency translation adjustment	$ 1

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Acquisitions and Discontinued Operations - Quantitative Information about Level 3 Fair Value Measurements (Detail) - USD ($)	9 Months Ended
	Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014
Fair Value, Option, Quantitative Disclosures [Line Items]
Portfolio loans held for sale accounted for at fair value	$ 0	$ 0	$ 0
Level 3 [Member] | Portfolio Loans [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Portfolio loans held for sale accounted for at fair value	$ 169,000,000
Portfolio loans accounted for at fair value		$ 191,000,000	$ 201,000,000
Valuation Techniques	Market approach for September 2015 and Discounted cash flow for September and December 2014
Minimum [Member] | Level 3 [Member] | Portfolio Loan Indicative Bids [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Percentage of significant unobservable inputs	84.50%
Minimum [Member] | Level 3 [Member] | Prepayment Speed Trust Loans and Portfolio Loans [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Percentage of significant unobservable inputs		5.40%	5.00%
Minimum [Member] | Level 3 [Member] | Loss Severity [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Percentage of significant unobservable inputs		2.00%	2.00%
Minimum [Member] | Level 3 [Member] | Loan Discount Rates [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Percentage of significant unobservable inputs		3.90%	3.60%
Minimum [Member] | Level 3 [Member] | Loan Default Rate [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Percentage of significant unobservable inputs		0.86%	0.93%
Maximum [Member] | Level 3 [Member] | Portfolio Loan Indicative Bids [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Percentage of significant unobservable inputs	104.00%
Maximum [Member] | Level 3 [Member] | Prepayment Speed Trust Loans and Portfolio Loans [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Percentage of significant unobservable inputs		5.60%	5.80%
Maximum [Member] | Level 3 [Member] | Loss Severity [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Percentage of significant unobservable inputs		77.00%	77.00%
Maximum [Member] | Level 3 [Member] | Loan Discount Rates [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Percentage of significant unobservable inputs		4.00%	3.90%
Maximum [Member] | Level 3 [Member] | Loan Default Rate [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Percentage of significant unobservable inputs		1.70%	1.91%
Weighted Average [Member] | Level 3 [Member] | Prepayment Speed Trust Loans and Portfolio Loans [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Percentage of significant unobservable inputs		5.50%	5.25%
Weighted Average [Member] | Level 3 [Member] | Loss Severity [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Percentage of significant unobservable inputs		25.66%	25.71%
Weighted Average [Member] | Level 3 [Member] | Loan Discount Rates [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Percentage of significant unobservable inputs		3.92%	3.69%
Weighted Average [Member] | Level 3 [Member] | Loan Default Rate [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Percentage of significant unobservable inputs		1.12%	1.24%

XML

Asset Quality - Past Due Loans Including Current Loans (Detail) - USD ($) $ in Millions	Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	$ 59,349	$ 56,619	$ 55,328
30-59 Days Past Due	194	147	235
60-89 Days Past Due	77	88	106
90 and Greater Days Past Due	53	96	71
Nonperforming Loans	400	418	401
Total Past Due and Nonperforming Loans	724	749	813
Purchased Credit Impaired	12	13	14
Loans Outstanding	60,085	57,381	56,155
Commercial, Financial and Agricultural [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	30,901	27,858	26,534
30-59 Days Past Due	58	19	50
60-89 Days Past Due	30	14	34
90 and Greater Days Past Due	17	32	18
Nonperforming Loans	89	59	47
Total Past Due and Nonperforming Loans	194	124	149
Loans Outstanding	31,095	27,982	26,683
Commercial Real Estate: Commercial Mortgage [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	8,127	7,981	8,201
30-59 Days Past Due	18	6	17
60-89 Days Past Due	7	10	7
90 and Greater Days Past Due	5	16	9
Nonperforming Loans	23	34	41
Total Past Due and Nonperforming Loans	53	66	74
Purchased Credit Impaired			1
Loans Outstanding	8,180	8,047	8,276
Construction [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	1,060	1,084	1,017
30-59 Days Past Due	1	2	3
60-89 Days Past Due			2
90 and Greater Days Past Due		1
Nonperforming Loans	9	13	14
Total Past Due and Nonperforming Loans	10	16	19
Loans Outstanding	1,070	1,100	1,036
Commercial Real Estate Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	9,187	9,065	9,218
30-59 Days Past Due	19	8	20
60-89 Days Past Due	7	10	9
90 and Greater Days Past Due	5	17	9
Nonperforming Loans	32	47	55
Total Past Due and Nonperforming Loans	63	82	93
Purchased Credit Impaired			1
Loans Outstanding	9,250	9,147	9,312
Commercial Lease Financing [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	3,875	4,172	4,017
30-59 Days Past Due	29	30	74
60-89 Days Past Due	3	21	24
90 and Greater Days Past Due	1	11	6
Nonperforming Loans	21	18	14
Total Past Due and Nonperforming Loans	54	80	118
Loans Outstanding	3,929	4,252	4,135
Commercial Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	43,963	41,095	39,769
30-59 Days Past Due	106	57	144
60-89 Days Past Due	40	45	67
90 and Greater Days Past Due	23	60	33
Nonperforming Loans	142	124	116
Total Past Due and Nonperforming Loans	311	286	360
Purchased Credit Impaired			1
Loans Outstanding	44,274	41,381	40,130
Real Estate - Residential Mortgage [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	2,171	2,111	2,091
30-59 Days Past Due	11	12	17
60-89 Days Past Due	4	7	7
90 and Greater Days Past Due	3	4	5
Nonperforming Loans	67	79	81
Total Past Due and Nonperforming Loans	85	102	110
Purchased Credit Impaired	11	12	12
Loans Outstanding	2,267	2,225	2,213
Home Equity: Key Community Bank [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	10,027	10,098	10,124
30-59 Days Past Due	49	46	46
60-89 Days Past Due	20	22	19
90 and Greater Days Past Due	11	14	16
Nonperforming Loans	174	185	174
Total Past Due and Nonperforming Loans	254	267	255
Purchased Credit Impaired	1	1	1
Loans Outstanding	10,282	10,366	10,380
Home Equity: Other [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	208	249	266
30-59 Days Past Due	4	5	4
60-89 Days Past Due	2	2	2
90 and Greater Days Past Due	1	1	1
Nonperforming Loans	7	10	10
Total Past Due and Nonperforming Loans	14	18	17
Loans Outstanding	222	267	283
Home Equity Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	10,235	10,347	10,390
30-59 Days Past Due	53	51	50
60-89 Days Past Due	22	24	21
90 and Greater Days Past Due	12	15	17
Nonperforming Loans	181	195	184
Total Past Due and Nonperforming Loans	268	285	272
Purchased Credit Impaired	1	1	1
Loans Outstanding	10,504	10,633	10,663
Consumer Other - Key Community Bank [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	1,595	1,541	1,528
30-59 Days Past Due	7	9	7
60-89 Days Past Due	4	3	3
90 and Greater Days Past Due	5	5	6
Nonperforming Loans	1	2	2
Total Past Due and Nonperforming Loans	17	19	18
Loans Outstanding	1,612	1,560	1,546
Consumer Credit Card Financing Receivable [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	750	733	705
30-59 Days Past Due	6	6	5
60-89 Days Past Due	4	4	4
90 and Greater Days Past Due	8	9	9
Nonperforming Loans	2	2	1
Total Past Due and Nonperforming Loans	20	21	19
Loans Outstanding	770	754	724
Consumer Marine [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	601	746	796
30-59 Days Past Due	10	11	11
60-89 Days Past Due	2	5	4
90 and Greater Days Past Due	1	2	1
Nonperforming Loans	6	15	16
Total Past Due and Nonperforming Loans	19	33	32
Loans Outstanding	620	779	828
Consumer Others [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	34	46	49
30-59 Days Past Due	1	1	1
60-89 Days Past Due	1
90 and Greater Days Past Due	1	1
Nonperforming Loans	1	1	1
Total Past Due and Nonperforming Loans	4	3	2
Loans Outstanding	38	49	51
Consumer Other [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	635	792	845
30-59 Days Past Due	11	12	12
60-89 Days Past Due	3	5	4
90 and Greater Days Past Due	2	3	1
Nonperforming Loans	7	16	17
Total Past Due and Nonperforming Loans	23	36	34
Loans Outstanding	658	828	879
Consumer Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	15,386	15,524	15,559
30-59 Days Past Due	88	90	91
60-89 Days Past Due	37	43	39
90 and Greater Days Past Due	30	36	38
Nonperforming Loans	258	294	285
Total Past Due and Nonperforming Loans	413	463	453
Purchased Credit Impaired	12	13	13
Loans Outstanding	$ 15,811	$ 16,000	$ 16,025

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Earnings Per Common Share - Basic and Diluted Earnings Per Common Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions		3 Months Ended		9 Months Ended
		Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
EARNINGS
Income (loss) from continuing operations		$ 220	$ 203	$ 686	$ 694
Less: Net income (loss) attributable to noncontrolling interests		(2)		1	6
Income (loss) from continuing operations attributable to Key		222	203	685	688
Income (loss) from continuing operations attributable to Key common shareholders		216	197	668	671
Income (loss) from discontinued operations, net of taxes		(3)	(17)	5	(41)
Net income (loss) attributable to Key common shareholders		$ 213	$ 180	$ 673	$ 630
WEIGHTED-AVERAGE COMMON SHARES
Weighted-average common shares outstanding		831,430	867,350	839,758	875,728
Effect of convertible preferred stock		0	0	0	0
Effect of common share options and other stock awards		7,450	6,772	7,613	6,723
Weighted-average common shares and potential common shares outstanding	[1]	838,880	874,122	847,371	882,451
EARNINGS PER COMMON SHARE
Income (loss) from continuing operations attributable to Key common shareholders		$ 0.26	$ 0.23	$ 0.79	$ 0.77
Income (loss) from discontinued operations, net of taxes			(0.02)	0.01	(0.05)
Net income (loss) attributable to Key common shareholders	[2]	0.26	0.21	0.80	0.72
Income (loss) from continuing operations attributable to Key common shareholders - assuming dilution		0.26	0.23	0.78	0.76
Income (loss) from discontinued operations, net of taxes			(0.02)	0.01	(0.05)
Net income (loss) attributable to Key common shareholders - assuming dilution	[2]	$ 0.25	$ 0.21	$ 0.79	$ 0.71
Series A Preferred Stock [Member]
EARNINGS
Less: Dividends on Series A Preferred Stock		$ 6	$ 6	$ 17	$ 17

[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.

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Consolidated Statements of Changes in Equity (Unaudited) (Parenthetical) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Income taxes effect on net unrealized (losses) gains on securities available for sale	$ 35	$ 14
Income taxes effect on net unrealized gains (losses) on derivative financial instruments	37	(3)
Income taxes effect on foreign currency translation adjustments	(11)	(3)
Income taxes effect on net pension and postretirement benefit costs	$ (12)	$ 13
Cash dividends declared on common shares, per share	$ 0.215	$ 0.185
Retained Earnings [Member]
Cash dividends declared on common shares, per share	$ 0.215	$ 0.185
Accumulated Other Comprehensive Income (Loss) [Member]
Income taxes effect on net unrealized (losses) gains on securities available for sale	$ 35	$ 14
Income taxes effect on net unrealized gains (losses) on derivative financial instruments	37	(3)
Income taxes effect on foreign currency translation adjustments	(11)	(3)
Income taxes effect on net pension and postretirement benefit costs	$ (12)	$ 13
Series A Preferred Stock [Member] | Retained Earnings [Member]
Cash dividends declared on Preferred Stock, per share	$ 5.8125	$ 5.8125

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Acquisitions and Discontinued Operations - Change in Fair Values of Level 3 Portfolio Loans Held for Sale, Portfolio Loans, and Consolidated Education Loan Securitization Trusts (Parenthetical) (Detail) - USD ($)	Sep. 30, 2015	Sep. 30, 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

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Asset Quality - Financing Receivable Credit Quality Indicators (Detail) - USD ($) $ in Millions	Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014
Financing Receivable, Recorded Investment [Line Items]
Total Loans	$ 60,085	$ 57,381	$ 56,155
Commercial, Financial and Agricultural [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	31,095	$ 27,982	26,683
Commercial, Financial and Agricultural [Member] | AAA-AA [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	384		342
Commercial, Financial and Agricultural [Member] | A [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	1,439		1,147
Commercial, Financial and Agricultural [Member] | BBB-BB [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	27,438		23,822
Commercial, Financial and Agricultural [Member] | B [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	639		594
Commercial, Financial and Agricultural [Member] | CCC-C [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	1,195		778
RE Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	8,180		8,276
RE Commercial [Member] | AAA-AA [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	3		2
RE Commercial [Member] | A [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	4		2
RE Commercial [Member] | BBB-BB [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	7,690		7,736
RE Commercial [Member] | B [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	272		298
RE Commercial [Member] | CCC-C [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	211		238
Commercial Real Estate Construction Financing Receivable [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	1,070		1,036
Commercial Real Estate Construction Financing Receivable [Member] | AAA-AA [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	935		895
Commercial Real Estate Construction Financing Receivable [Member] | B [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	89		100
Commercial Real Estate Construction Financing Receivable [Member] | CCC-C [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	46		40
Commercial Leases [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	3,929		4,135
Commercial Leases [Member] | AAA-AA [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	501		528
Commercial Leases [Member] | A [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	478		596
Commercial Leases [Member] | BBB-BB [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	2,808		2,848
Commercial Leases [Member] | B [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	88		75
Commercial Leases [Member] | CCC-C [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	54		88
Commercial Loan Portfolios [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	44,274		40,130
Commercial Loan Portfolios [Member] | AAA-AA [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	888		873
Commercial Loan Portfolios [Member] | A [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	1,921		1,745
Commercial Loan Portfolios [Member] | BBB-BB [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	38,871		35,301
Commercial Loan Portfolios [Member] | B [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	1,088		1,067
Commercial Loan Portfolios [Member] | CCC-C [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	$ 1,506		$ 1,144

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Trust Preferred Securities Issued by Unconsolidated Subsidiaries - Summary of Trust Preferred Securities, Common Stock and Related Debentures (Detail) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 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	1.024%
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	$ 111
Common Stock	4
Principal Amount of Debentures, Net of Discount	$ 115
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	$ 145
Common Stock	4
Principal Amount of Debentures, Net of Discount	$ 149
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	$ 412	408	397
Common Stock	14	14	14
Principal Amount of Debentures, Net of Discount	$ 426	$ 422	$ 411
Interest Rate of Trust Preferred Securities and Debentures	4.968%	4.926%	4.856%

XML

Line of Business Results - Financial Information of Business Groups (Detail) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015 USD ($) Employees	Sep. 30, 2014 USD ($) Employees	Sep. 30, 2015 USD ($) Employees	Sep. 30, 2014 USD ($) Employees
Segment Reporting Information [Line Items]
Net interest income (TE)	$ 591	$ 575	$ 1,746	$ 1,711
Noninterest income	470	417	1,395	1,307
Provision for credit losses			110	52
Other noninterest expense	88	89	258	251
Allocated income taxes and TE adjustments	72	64	230	232
Income (loss) from continuing operations	220	203	686	694
Income (loss) from discontinued operations, net of taxes	(3)	(17)	5	(41)
Net income (loss)	217	186	691	653
Less: Net income (loss) attributable to noncontrolling interests	(2)		1	6
Net income (loss) attributable to Key	219	186	690	647
Operating Segments [Member]
Segment Reporting Information [Line Items]
Net interest income (TE)	595	580	1,759	1,726
Noninterest income	473	422	1,406	1,314
Total revenue (TE)	1,068	1,002	3,165	3,040
Provision for credit losses	44	19	120	36
Depreciation and amortization expense	27	27	79	80
Other noninterest expense	682	647	2,016	1,927
Income (loss) from continuing operations before income taxes (TE)	315	309	950	997
Allocated income taxes and TE adjustments	82	88	261	292
Income (loss) from continuing operations	233	221	689	705
Net income (loss)	233	221	689	705
Less: Net income (loss) attributable to noncontrolling interests	(2)		1	6
Net income (loss) attributable to Key	235	221	688	699
AVERAGE BALANCES
Loans and leases	59,244	55,714	58,200	55,320
Total assets	92,124	86,458	90,706	85,836
Deposits	70,498	68,466	70,291	67,397
OTHER FINANCIAL DATA
Net loan charge-offs	$ 42	$ 31	$ 105	$ 82
Return on average allocated equity	19.00%	18.28%	18.81%	19.66%
Return on average allocated equity	19.00%	18.28%	18.81%	19.66%
Operating Segments [Member] | Weighted Average [Member]
OTHER FINANCIAL DATA
Average full-time equivalent employees | Employees	9,513	9,605	9,503	9,615
Operating Segments [Member] | Key Community Bank [Member]
Segment Reporting Information [Line Items]
Net interest income (TE)	$ 379	$ 359	$ 1,098	$ 1,084
Noninterest income	200	199	589	574
Total revenue (TE)	579	558	1,687	1,658
Provision for credit losses	18	21	50	48
Depreciation and amortization expense	14	16	42	49
Other noninterest expense	434	425	1,297	1,274
Income (loss) from continuing operations before income taxes (TE)	113	96	298	287
Allocated income taxes and TE adjustments	42	36	111	107
Income (loss) from continuing operations	71	60	187	180
Net income (loss)	71	60	187	180
Net income (loss) attributable to Key	71	60	187	180
AVERAGE BALANCES
Loans and leases	31,039	30,103	30,804	29,979
Total assets	33,090	32,173	32,853	32,063
Deposits	51,234	50,303	50,808	50,151
OTHER FINANCIAL DATA
Net loan charge-offs	$ 21	$ 28	$ 69	$ 89
Return on average allocated equity	10.49%	8.89%	9.27%	8.81%
Return on average allocated equity	10.49%	8.89%	9.27%	8.81%
Operating Segments [Member] | Key Community Bank [Member] | Weighted Average [Member]
OTHER FINANCIAL DATA
Average full-time equivalent employees | Employees	7,326	7,573	7,392	7,613
Operating Segments [Member] | Key Corporate Bank [Member]
Segment Reporting Information [Line Items]
Net interest income (TE)	$ 220	$ 215	$ 661	$ 621
Noninterest income	234	185	671	566
Total revenue (TE)	454	400	1,332	1,187
Provision for credit losses	30	2	77	7
Depreciation and amortization expense	11	8	31	22
Other noninterest expense	235	205	681	599
Income (loss) from continuing operations before income taxes (TE)	178	185	543	559
Allocated income taxes and TE adjustments	42	51	143	158
Income (loss) from continuing operations	136	134	400	401
Net income (loss)	136	134	400	401
Less: Net income (loss) attributable to noncontrolling interests	(2)		(1)	2
Net income (loss) attributable to Key	138	134	401	399
AVERAGE BALANCES
Loans and leases	26,425	23,215	25,488	22,702
Total assets	32,163	28,268	31,236	27,829
Deposits	18,809	17,599	19,029	16,655
OTHER FINANCIAL DATA
Net loan charge-offs	$ 20	$ (1)	$ 28	$ (15)
Return on average allocated equity	28.65%	31.59%	28.82%	33.74%
Return on average allocated equity	28.65%	31.59%	28.82%	33.74%
Operating Segments [Member] | Key Corporate Bank [Member] | Weighted Average [Member]
OTHER FINANCIAL DATA
Average full-time equivalent employees | Employees	2,173	1,998	2,096	1,952
Operating Segments [Member] | Other Segments [Member]
Segment Reporting Information [Line Items]
Net interest income (TE)	$ (4)	$ 6		$ 21
Noninterest income	39	38	$ 146	174
Total revenue (TE)	35	44	146	195
Provision for credit losses	(4)	(4)	(7)	(19)
Depreciation and amortization expense	2	3	6	9
Other noninterest expense	13	17	38	54
Income (loss) from continuing operations before income taxes (TE)	24	28	109	151
Allocated income taxes and TE adjustments	(2)	1	7	27
Income (loss) from continuing operations	26	27	102	124
Net income (loss)	26	27	102	124
Less: Net income (loss) attributable to noncontrolling interests			2	4
Net income (loss) attributable to Key	26	27	100	120
AVERAGE BALANCES
Loans and leases	1,780	2,396	1,908	2,639
Total assets	26,871	26,017	26,617	25,944
Deposits	455	564	454	591
OTHER FINANCIAL DATA
Net loan charge-offs	$ 1	$ 4	$ 8	$ 8
Return on average allocated equity	33.27%	24.63%	40.39%	36.38%
Return on average allocated equity	33.27%	24.63%	40.39%	36.38%
Operating Segments [Member] | Other Segments [Member] | Weighted Average [Member]
OTHER FINANCIAL DATA
Average full-time equivalent employees | Employees	14	34	15	50
Segment Reconciling Items [Member]
Segment Reporting Information [Line Items]
Net interest income (TE)	$ 3	$ 1	$ 7	$ 3
Noninterest income	(3)	(5)	(11)	(7)
Total revenue (TE)		(4)	(4)	(4)
Provision for credit losses	1		1	(1)
Depreciation and amortization expense	35	38	112	115
Other noninterest expense	(20)	(6)	(103)	(65)
Income (loss) from continuing operations before income taxes (TE)	(16)	(36)	(14)	(53)
Allocated income taxes and TE adjustments	(3)	(18)	(11)	(42)
Income (loss) from continuing operations	(13)	(18)	(3)	(11)
Income (loss) from discontinued operations, net of taxes	(3)	(17)	5	(41)
Net income (loss)	(16)	(35)	2	(52)
Net income (loss) attributable to Key	(16)	(35)	2	(52)
AVERAGE BALANCES
Loans and leases	37	82	63	68
Total assets	527	665	618	676
Deposits	(29)	$ (130)	$ (62)	(138)
OTHER FINANCIAL DATA
Net loan charge-offs	$ (1)			$ (1)
Return on average allocated equity	(0.90%)	(1.26%)	(0.05%)	(0.26%)
Return on average allocated equity	(1.11%)	(2.45%)	0.07%	(1.22%)
Segment Reconciling Items [Member] | Weighted Average [Member]
OTHER FINANCIAL DATA
Average full-time equivalent employees | Employees	4,042	4,300	4,022	4,327
Operating Segments and Reconciling Items [Member]
Segment Reporting Information [Line Items]
Net interest income (TE)	$ 598	$ 581	$ 1,766	$ 1,729
Noninterest income	470	417	1,395	1,307
Total revenue (TE)	1,068	998	3,161	3,036
Provision for credit losses	45	19	121	35
Depreciation and amortization expense	62	65	191	195
Other noninterest expense	662	641	1,913	1,862
Income (loss) from continuing operations before income taxes (TE)	299	273	936	944
Allocated income taxes and TE adjustments	79	70	250	250
Income (loss) from continuing operations	220	203	686	694
Income (loss) from discontinued operations, net of taxes	(3)	(17)	5	(41)
Net income (loss)	217	186	691	653
Less: Net income (loss) attributable to noncontrolling interests	(2)		1	6
Net income (loss) attributable to Key	219	186	690	647
AVERAGE BALANCES
Loans and leases	59,281	55,796	58,263	55,388
Total assets	92,651	87,123	91,324	86,512
Deposits	70,469	68,336	70,229	67,259
OTHER FINANCIAL DATA
Net loan charge-offs	$ 41	$ 31	$ 105	$ 81
Return on average allocated equity	8.30%	7.69%	6.48%	6.59%
Return on average allocated equity	8.19%	7.05%	6.52%	6.20%
Operating Segments and Reconciling Items [Member] | Weighted Average [Member]
OTHER FINANCIAL DATA
Average full-time equivalent employees | Employees	13,555	13,905	13,525	13,942

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Contingent Liabilities and Guarantees (Tables)

9 Months Ended

Sep. 30, 2015

Commitments and Contingencies Disclosure [Abstract]

Guarantees

The following table shows the types of guarantees that we had outstanding at September 30, 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.

	Maximum Potential
September 30, 2015	Undiscounted		Liability
in millions	Future Payments		Recorded
Financial guarantees:
Standby letters of credit	$	11,498	$	63
Recourse agreement with FNMA		1,747		4
Return guarantee agreement with LIHTC investors		4		4
Written put options (a)		2,131		117
Total	$	15,380	$	188

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

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Subsequent Event

9 Months Ended

Sep. 30, 2015

Subsequent Events [Abstract]

Subsequent Event

19. Subsequent Event

Planned Acquisition of First Niagara Financial Group, Inc.

On October 30, 2015, we announced that KeyCorp has entered into a definitive agreement and plan of merger (“Agreement”) pursuant to which it will acquire all of the outstanding capital stock of First Niagara Financial Group, Inc. (NASDAQ: FNFG) (“First Niagara”). Under the terms of the Agreement, at the effective time of the merger, each share of First Niagara common stock will be converted into the right to receive (i) 0.680 of a share of KeyCorp common stock and (ii) $2.30 in cash. The exchange ratio of KeyCorp stock for First Niagara stock is fixed and will not adjust based on changes in KeyCorp’s share trading price. First Niagara equity awards outstanding immediately prior to the effective time of the merger will be converted into equity awards for KeyCorp common stock as provided in the Agreement. Each share of First Niagara’s Fixed Rate-to-Floating Rate Perpetual Non-Cumulative Preferred Stock, Series B, will be converted into a share of a newly created series of preferred stock of KeyCorp having substantially the same terms as First Niagara’s preferred stock. Based on the closing price of KeyCorp common shares on Thursday, October 29, 2015, of $13.38 and assuming First Niagara has 356.272 million shares outstanding on a fully-diluted basis, the value of the total consideration to be paid by KeyCorp pursuant to the Agreement is approximately $4.1 billion.

The merger is currently expected to be completed during the third quarter of 2016 and is subject to customary closing conditions including the approval of regulators and the shareholders of both KeyCorp and First Niagara.

As of September 30, 2015, First Niagara, headquartered in Buffalo, New York, had 394 branches with approximately $39 billion of total assets and $29 billion of deposits.

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Line of Business Results

9 Months Ended

Sep. 30, 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- and nine- month periods ended September 30, 2015, and September 30, 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 that 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.

In the third quarter of 2015, we enhanced the approach used to determine the commercial reserve factors used in estimating the quantitative component of the commercial ALLL. In addition, we began utilizing an enhanced framework to quantify commercial ALLL adjustments resulting from qualitative factors not fully captured within the statistical analysis of incurred loss. The enhancements of the methodology are described in Note 1 (“Basis of Presentation and Accounting Policies”) under the heading “Allowance for Loan and Lease Losses.” As a result of the methodology enhancements, the current period provision for credit losses within each business segment has increased or decreased accordingly. The impact of the increases and decreases on the business segment provision for credit losses was not significant.

• 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 September 30,	Key Community Bank						Key Corporate Bank
dollars in millions	2015			2014			2015			2014
SUMMARY OF OPERATIONS
Net interest income (TE)	$	379		$	359		$	220		$	215
Noninterest income		200			199			234			185
Total revenue (TE) (a)		579			558			454			400
Provision for credit losses		18			21			30			2
Depreciation and amortization expense		14			16			11			8
Other noninterest expense		434			425			235			205
Income (loss) from continuing operations before income taxes (TE)		113			96			178			185
Allocated income taxes and TE adjustments		42			36			42			51
Income (loss) from continuing operations		71			60			136			134
Income (loss) from discontinued operations, net of taxes		—			—			—			—
Net income (loss)		71			60			136			134
Less: Net income (loss) attributable to noncontrolling interests		—			—			(2	)		—
Net income (loss) attributable to Key	$	71		$	60		$	138		$	134
AVERAGE BALANCES (b)
Loans and leases	$	31,039		$	30,103		$	26,425		$	23,215
Total assets (a)		33,090			32,173			32,163			28,268
Deposits		51,234			50,303			18,809			17,599
OTHER FINANCIAL DATA
Net loan charge-offs (b)	$	21		$	28		$	20		$	(1	)
Return on average allocated equity (b)		10.49	%		8.89	%		28.65	%		31.59	%
Return on average allocated equity		10.49			8.89			28.65			31.59
Average full-time equivalent employees (c)		7,326			7,573			2,173			1,998
Nine months ended September 30,	Key Community Bank						Key Corporate Bank
dollars in millions	2015			2014			2015			2014
SUMMARY OF OPERATIONS
Net interest income (TE)	$	1,098		$	1,084		$	661		$	621
Noninterest income		589			574			671			566
Total revenue (TE) (a)		1,687			1,658			1,332			1,187
Provision for credit losses		50			48			77			7
Depreciation and amortization expense		42			49			31			22
Other noninterest expense		1,297			1,274			681			599
Income (loss) from continuing operations before income taxes (TE)		298			287			543			559
Allocated income taxes and TE adjustments		111			107			143			158
Income (loss) from continuing operations		187			180			400			401
Income (loss) from discontinued operations, net of taxes		—			—			—			—
Net income (loss)		187			180			400			401
Less: Net income (loss) attributable to noncontrolling interests		—			—			(1	)		2
Net income (loss) attributable to Key	$	187		$	180		$	401		$	399
AVERAGE BALANCES (b)
Loans and leases	$	30,804		$	29,979		$	25,488		$	22,702
Total assets (a)		32,853			32,063			31,236			27,829
Deposits		50,808			50,151			19,029			16,655
OTHER FINANCIAL DATA
Net loan charge-offs (b)	$	69		$	89		$	28		$	(15	)
Return on average allocated equity (b)		9.27	%		8.81	%		28.82	%		33.74	%
Return on average allocated equity		9.27			8.81			28.82			33.74
Average full-time equivalent employees (c)		7,392			7,613			2,096			1,952

(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	)	$	6		$	595		$	580		$	3		$	1		$	598		$	581
	39			38			473			422			(3	)		(5	)		470			417
	35			44			1,068			1,002			—			(4	)		1,068			998
	(4	)		(4	)		44			19			1			—			45			19
	2			3			27			27			35			38			62			65
	13			17			682			647			(20	)		(6	)		662			641
	24			28			315			309			(16	)		(36	)		299			273
	(2	)		1			82			88			(3	)		(18	)		79			70
	26			27			233			221			(13	)		(18	)		220			203
	—			—			—			—			(3	)		(17	)		(3	)		(17	)
	26			27			233			221			(16	)		(35	)		217			186
	—			—			(2	)		—			—			—			(2	)		—
$	26		$	27		$	235		$	221		$	(16	)	$	(35	)	$	219		$	186
$	1,780		$	2,396		$	59,244		$	55,714		$	37		$	82		$	59,281		$	55,796
	26,871			26,017			92,124			86,458			527			665			92,651			87,123
	455			564			70,498			68,466			(29	)		(130	)		70,469			68,336
$	1		$	4		$	42		$	31		$	(1	)		—		$	41		$	31
	33.27	%		24.63	%		19.00	%		18.28	%		(.90	)%		(1.26	)%		8.30	%		7.69	%
	33.27			24.63			19.00			18.28			(1.11	)		(2.45	)		8.19			7.05
	14			34			9,513			9,605			4,042			4,300			13,555			13,905
Other Segments						Total Segments						Reconciling Items						Key
2015			2014			2015			2014			2015			2014			2015			2014
	—		$	21		$	1,759		$	1,726		$	7		$	3		$	1,766		$	1,729
$	146			174			1,406			1,314			(11	)		(7	)		1,395			1,307
	146			195			3,165			3,040			(4	)		(4	)		3,161			3,036
	(7	)		(19	)		120			36			1			(1	)		121			35
	6			9			79			80			112			115			191			195
	38			54			2,016			1,927			(103	)		(65	)		1,913			1,862
	109			151			950			997			(14	)		(53	)		936			944
	7			27			261			292			(11	)		(42	)		250			250
	102			124			689			705			(3	)		(11	)		686			694
	—			—			—			—			5			(41	)		5			(41	)
	102			124			689			705			2			(52	)		691			653
	2			4			1			6			—			—			1			6
$	100		$	120		$	688		$	699		$	2		$	(52	)	$	690		$	647
$	1,908		$	2,639		$	58,200		$	55,320		$	63		$	68		$	58,263		$	55,388
	26,617			25,944			90,706			85,836			618			676			91,324			86,512
	454			591			70,291			67,397			(62	)		(138	)		70,229			67,259
$	8		$	8		$	105		$	82			—		$	(1	)	$	105		$	81
	40.39	%		36.38	%		18.81	%		19.66	%		(.05	)%		(.26	)%		6.48	%		6.59	%
	40.39			36.38			18.81			19.66			.07			(1.22	)		6.52			6.20
	15			50			9,503			9,615			4,022			4,327			13,525			13,942

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Mortgage Servicing Assets - Changes in Carrying Amount of Mortgage Servicing Assets (Detail) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Servicing Asset [Abstract]
Balance at beginning of period	$ 323	$ 332
Servicing retained from loan sales	39	19
Purchases	29	33
Amortization	(71)	(76)
Balance at end of period	320	308
Fair value at end of period	$ 427	$ 370

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Asset Quality - Additional Information (Detail)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2015 USD ($) SecurityLoan	Sep. 30, 2014 USD ($) SecurityLoan	Sep. 30, 2015 USD ($) SecurityLoan	Sep. 30, 2014 USD ($) SecurityLoan	Dec. 31, 2014 USD ($)	Jun. 30, 2015 USD ($)	Jun. 30, 2014 USD ($)	Dec. 31, 2013 USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Estimated gross contractual amount receivable of PCI loans	$ 41,000,000		$ 41,000,000
Estimated cash flows nonaccretable amount			11,000,000
Estimated cash flows accretable amount	5,000,000		5,000,000
Purchased Credit Impaired, Outstanding	12,000,000	$ 14,000,000	12,000,000	$ 14,000,000	$ 13,000,000
Accretable yield	$ 5,000,000		$ 5,000,000
Percentage of carrying amount of our commercial nonperforming loans outstanding	74.00%		74.00%
Percentage of nonperforming loans outstanding face value	79.00%		79.00%
Percentage of loans held for sale and other nonperforming assets	79.00%		79.00%
Aggregate carrying amount of largest nonperforming loans	$ 112,000,000	$ 72,000,000	$ 112,000,000	$ 72,000,000
Number of largest nonperforming loans | SecurityLoan	20	20	20	20
Percentage of total loans on nonperforming status	28.00%	18.00%	28.00%	18.00%
Net reduction to interest income			$ 12,000,000		16,000,000
Interest income recognized on outstanding balances			5,000,000	$ 5,000,000
Total restructured loans	$ 287,000,000	$ 264,000,000	287,000,000	264,000,000	270,000,000
Addition in restructured loans			87,000,000
Restructured loans partially in payments and charge-offs			70,000,000
Loans net of deferred income	60,085,000,000	56,155,000,000	60,085,000,000	56,155,000,000	57,381,000,000
Minimum outstanding impaired commercial loans	2,500,000		$ 2,500,000
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 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 net realizable value 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	790,000,000	804,000,000	$ 790,000,000	$ 804,000,000	794,000,000
ALLL percentage			1.31%	1.43%
ALLL of nonperforming loans percentage			197.50%	200.50%
Provision (credit) for loan and lease losses			$ 110,000,000	$ 52,000,000
Liability for credit losses on lending-related commitments	$ 54,000,000	$ 35,000,000	$ 54,000,000	$ 35,000,000	35,000,000	$ 45,000,000	$ 37,000,000	$ 37,000,000
Percentage of total allowance for credit losses	1.40%	1.49%	1.40%	1.49%
Maximum [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Changes in the accretable yield, accretion			$ 1,000,000
Changes in the accretable yield, net reclassifications			$ 1,000,000
Commercial Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nature of default in repayment of loan TDRs			90 days past due
Number of loans | SecurityLoan	0	0
Loans net of deferred income	$ 44,274,000,000	$ 40,130,000,000	$ 44,274,000,000	$ 40,130,000,000	41,381,000,000
Consumer Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nature of default in repayment of loan TDRs			More than 60 days past due
Number of loans | SecurityLoan	61	93
Financial receivable, modifications, subsequent default, recorded investment	$ 3,000,000	$ 4,000,000
Loans net of deferred income	15,811,000,000	16,025,000,000	$ 15,811,000,000	16,025,000,000	16,000,000,000
Continuing Operations [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Purchased Credit Impaired, Outstanding	12,000,000	14,000,000	12,000,000	14,000,000	13,000,000
Loans net of deferred income	60,085,000,000	56,155,000,000	60,085,000,000	56,155,000,000	57,381,000,000
Increase (decrease) in allowance for loan losses			$ (14,000,000)
Percentage decrease in allowance for loan losses			1.70%
Individually evaluated for impairment, outstanding	318,000,000	299,000,000	$ 318,000,000	299,000,000	302,000,000
Individually evaluated for Impairment, corresponding allowance	36,000,000	38,000,000	36,000,000	38,000,000	40,000,000
Collectively Evaluated for Impairment, Outstanding	59,755,000,000	55,842,000,000	59,755,000,000	55,842,000,000	57,066,000,000
Collectively evaluated for current, corresponding allowance	753,000,000	765,000,000	753,000,000	765,000,000	753,000,000
Provision (credit) for loan and lease losses			101,000,000	37,000,000
Continuing Operations [Member] | Commercial Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Purchased Credit Impaired, Outstanding	0	1,000,000	0	1,000,000	1,000,000
Loans net of deferred income	44,274,000,000	40,130,000,000	44,274,000,000	40,130,000,000	41,381,000,000
Individually evaluated for impairment, outstanding	92,000,000	70,000,000	92,000,000	70,000,000	72,000,000
Individually evaluated for Impairment, corresponding allowance	10,000,000	9,000,000	10,000,000	9,000,000	12,000,000
Collectively Evaluated for Impairment, Outstanding	44,182,000,000	40,059,000,000	44,182,000,000	40,059,000,000	41,308,000,000
Collectively evaluated for current, corresponding allowance	637,000,000	619,000,000	637,000,000	619,000,000	611,000,000
Provision (credit) for loan and lease losses			68,000,000
Continuing Operations [Member] | Consumer Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Purchased Credit Impaired, Outstanding	12,000,000	13,000,000	12,000,000	13,000,000	12,000,000
Loans net of deferred income	15,811,000,000	16,025,000,000	15,811,000,000	16,025,000,000	16,000,000,000
Individually evaluated for impairment, outstanding	226,000,000	229,000,000	226,000,000	229,000,000	230,000,000
Individually evaluated for Impairment, corresponding allowance	26,000,000	29,000,000	26,000,000	29,000,000	28,000,000
Collectively Evaluated for Impairment, Outstanding	15,573,000,000	15,783,000,000	15,573,000,000	15,783,000,000	15,758,000,000
Collectively evaluated for current, corresponding allowance	116,000,000	146,000,000	116,000,000	146,000,000	142,000,000
Provision (credit) for loan and lease losses			33,000,000	37,000,000
Continuing Operations [Member] | Purchase Credit Impaired Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Individually evaluated for Impairment, corresponding allowance	1,000,000	1,000,000	1,000,000	1,000,000
Collectively Evaluated for Impairment, Outstanding	12,000,000	14,000,000	12,000,000	14,000,000
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	59,300,000,000	55,300,000,000	$ 59,300,000,000	$ 55,300,000,000	$ 56,600,000,000
Concentration risk			98.80%	98.50%	98.70%
Nonperforming [Member] | Loans, Total [Member] | Credit Concentration Risk [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans net of deferred income	724,000,000	$ 813,000,000	$ 724,000,000	$ 813,000,000	$ 749,000,000
Concentration risk			1.20%	1.50%	1.30%
PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Purchased Credit Impaired, Outstanding	18,000,000		$ 18,000,000
Purchased credit impaired loans carrying value	$ 12,000,000		$ 12,000,000

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Accumulated Other Comprehensive Income (Tables)

9 Months Ended

Sep. 30, 2015

Equity [Abstract]

Changes in AOCI

Our changes in AOCI for the three and nine months ended September 30, 2015, and September 30, 2014, are as follows:

	Unrealized gains			Unrealized gains			Foreign currency			Net pension and
	(losses) on securities			(losses) on derivative			translation			postretirement
in millions	available for sale			financial instruments			adjustment			benefit costs			Total
Balance at December 31, 2014	$	(4	)	$	(8	)	$	22		$	(366	)	$	(356	)
Other comprehensive income before reclassification, net of income taxes		57			107			(19	)		(38	)		107
Amounts reclassified from accumulated other comprehensive income, net of income taxes (a)		1			(44	)		1			19			(23	)
Net current-period other comprehensive income, net of income taxes		58			63			(18	)		(19	)		84
Balance at September 30, 2015		54		$	55		$	4		$	(385	)	$	(272	)
Balance at June 30, 2015		—		$	7		$	9		$	(361	)	$	(345	)
Other comprehensive income before reclassification, net of income taxes	$	54			65			(5	)		(38	)		76
Amounts reclassified from accumulated other comprehensive income, net of income taxes (a)		—			(17	)		—			14			(3	)
Net current-period other comprehensive income, net of income taxes		54			48			(5	)		(24	)		73
Balance at September 30, 2015		54		$	55		$	4		$	(385	)	$	(272	)
Balance at December 31, 2013	$	(63	)	$	(11	)	$	42		$	(320	)	$	(352	)
Other comprehensive income before reclassification, net of income taxes		24			25			(9	)		—			40
Amounts reclassified from accumulated other comprehensive income, net of income taxes (a)		—			(29	)		(3	)		19			(13	)
Net current-period other comprehensive income, net of income taxes		24			(4	)		(12	)		19			27
Balance at September 30, 2014	$	(39	)	$	(15	)	$	30		$	(301	)	$	(325	)
Balance at June 30, 2014	$	(6	)	$	(7	)	$	39		$	(315	)	$	(289	)
Other comprehensive income before reclassification, net of income taxes		(33	)		3			(9	)		—			(39	)
Amounts reclassified from accumulated other comprehensive income, net of income taxes (a)		—			(11	)		—			14			3
Net current-period other comprehensive income, net of income taxes		(33	)		(8	)		(9	)		14			(36	)
Balance at September 30, 2014	$	(39	)	$	(15	)	$	30		$	(301	)	$	(325	)

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

Reclassifications Out of AOCI

Our reclassifications out of AOCI for the three and nine months ended September 30, 2015, and September 30, 2014, are as follows:

Nine months ended September 30, 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 available for sale securities
Realized losses	$	(1	)	Other income
		(1	)	Income (loss) from continuing operations before income taxes
		—		Income taxes
	$	(1	)	Income (loss) from continuing operations
Unrealized gains (losses) on derivative financial instruments
Interest rate	$	73		Interest income — Loans
Interest rate		(3	)	Interest expense — Long term debt
		70		Income (loss) from continuing operations before income taxes
		26		Income taxes
	$	44		Income (loss) from continuing operations
Foreign currency translation adjustment
	$	(2	)	Corporate services income
		(2	)	Income (loss) from continuing operations before income taxes
		(1	)	Income taxes
	$	(1	)	Income (loss) from continuing operations
Net pension and postretirement benefit costs
Amortization of losses	$	(13	)	Personnel expense
Settlement loss		(19	)	Personnel expense
Amortization of unrecognized prior service cost		1		Personnel expense
		(31	)	Income (loss) from continuing operations before income taxes
		(12	)	Income taxes
	$	(19	)	Income (loss) from continuing operations
Three months ended September 30, 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	$	28		Interest income — Loans
Interest rate		(1	)	Interest expense — Long term debt
		27		Income (loss) from continuing operations before income taxes
		10		Income taxes
	$	17		Income (loss) from continuing operations
Foreign currency translation adjustment
	$	(1	)	Corporate services income
		(1	)	Income (loss) from continuing operations before income taxes
		(1	)	Income taxes
		—		Income (loss) from continuing operations
Net pension and postretirement benefit costs
Amortization of losses	$	(4	)	Personnel expense
Settlement loss		(19	)	Personnel expense
		(23	)	Income (loss) from continuing operations before income taxes
		(9	)	Income taxes
	$	(14	)	Income (loss) from continuing operations

Nine months ended September 30, 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	$	49		Interest income — Loans
Interest rate		(3	)	Interest expense — Long term debt
		46		Income (loss) from continuing operations before income taxes
		17		Income taxes
	$	29		Income (loss) from continuing operations
Foreign currency translation adjustment
	$	3		Corporate services income
		3		Income (loss) from continuing operations before income taxes
		—		Income taxes
	$	3		Income (loss) from continuing operations
Net pension and postretirement benefit costs
Amortization of losses	$	(12	)	Personnel expense
Settlement loss		(20	)	Personnel expense
		(32	)	Income (loss) from continuing operations before income taxes
		(13	)	Income taxes
	$	(19	)	Income (loss) from continuing operations
Three months ended September 30, 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	$	18		Interest income — Loans
Interest rate		(1	)	Interest expense — Long term debt
Foreign exchange contracts		1		Other income
		18		Income (loss) from continuing operations before income taxes
		7		Income taxes
	$	11		Income (loss) from continuing operations
Net pension and postretirement benefit costs
Amortization of losses	$	(4	)	Personnel expense
Settlement loss		(20	)	Personnel expense
		(24	)	Income (loss) from continuing operations before income taxes
		(10	)	Income taxes
	$	(14	)	Income (loss) from continuing operations

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Basis of Presentation and Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2015

Accounting Policies [Abstract]

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”).

Allowance for Loan and Lease Losses

Allowance for Loan and Lease Losses

In the third quarter of 2015, we enhanced the approach used to determine the commercial reserve factors used in estimating the commercial ALLL, which had the effect of capturing certain elements in the commercial quantitative reserve component that had formerly been included in the commercial qualitative component. Under the enhanced methodology, we began utilizing more refined commercial estimated loss rates that represent cumulative losses over the estimated average time period from the onset of credit deterioration to the initial loss recorded for an individual loan. In addition, we began utilizing an enhanced framework to quantify commercial ALLL adjustments resulting from qualitative factors that may not be fully captured within the statistical analysis of incurred loss. The impact of these changes was largely neutral to the total ALLL at September 30, 2015. However, because the quantitative reserve is allocated to the business segments at a loan level, while the qualitative portion is allocated at the portfolio level, the impact of the methodology enhancements on the allowance for each business segment and each portfolio caused the business segment and commercial portfolio reserves to increase or decrease accordingly. The impact of the increases and decreases on the business segment and commercial portfolio reserves was not significant.

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 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”).

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 has been presented 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.

Business combinations

Business combinations. In September 2015, the FASB issued new accounting guidance that obligates an acquirer in a business combination to recognize adjustments to provisional amounts in the reporting period that the amounts were determined, eliminating the requirement for retrospective adjustments. The acquirer should record in the current period any income effects that resulted from the change in provisional amounts, calculated as if the accounting were completed at the acquisition date. 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 the 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.

Fair Value Measurement

Fair value measurement. In May 2015, the FASB issued new disclosure guidance that eliminates the requirement to categorize investments measured using the net asset value practical expedient in the fair value hierarchy table. Entities will be required to disclose the fair value of investments measured using the net asset value practical expedient so that financial statement users can reconcile amounts reported in the fair value hierarchy table to amounts reported on the balance sheet. This disclosure will be presented for interim and annual reporting periods beginning after December 15, 2015 (March 31, 2016, for us) on a retrospective basis. Early adoption is permitted. The adoption of this disclosure guidance will not affect our financial condition or results of operations.

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. We have elected to implement this new accounting guidance using a prospective approach. 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

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. The adoption of this accounting guidance is not expected to have a material effect 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. We have elected to implement this new accounting guidance using a prospective approach. 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 can be implemented using either a retrospective method or a cumulative-effect approach. In August 2015, the FASB issued an update that defers the effective date of the revenue recognition guidance by one year. This new guidance will be effective for interim and annual reporting periods beginning after December 15, 2017 (effective January 1, 2018, for us). Early adoption is permitted but only for interim and annual reporting periods beginning after December 15, 2016. 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 the FASB has recently issued and proposed updates to certain aspects of the guidance. 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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Earnings Per Common Share (Tables)

9 Months Ended

Sep. 30, 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 September 30,						Nine months ended September 30,
dollars in millions, except per share amounts	2015			2014			2015		2014
EARNINGS
Income (loss) from continuing operations	$	220		$	203		$	686	$	694
Less: Net income (loss) attributable to noncontrolling interests		(2	)		—			1		6
Income (loss) from continuing operations attributable to Key		222			203			685		688
Less: Dividends on Series A Preferred Stock		6			6			17		17
Income (loss) from continuing operations attributable to Key common shareholders		216			197			668		671
Income (loss) from discontinued operations, net of taxes (a)		(3	)		(17	)		5		(41	)
Net income (loss) attributable to Key common shareholders	$	213		$	180		$	673	$	630
WEIGHTED-AVERAGE COMMON SHARES
Weighted-average common shares outstanding (000)		831,430			867,350			839,758		875,728
Effect of convertible preferred stock		—			—			—		—
Effect of common share options and other stock awards		7,450			6,772			7,613		6,723
Weighted-average common shares and potential common shares outstanding (000) (b)		838,880			874,122			847,371		882,451
EARNINGS PER COMMON SHARE
Income (loss) from continuing operations attributable to Key common shareholders	$	.26		$	.23		$	.79	$	.77
Income (loss) from discontinued operations, net of taxes (a)		—			(.02	)		.01		(.05	)
Net income (loss) attributable to Key common shareholders (c)		.26			.21			.80		.72
Income (loss) from continuing operations attributable to Key common shareholders — assuming dilution	$	.26		$	.23		$	.78	$	.76
Income (loss) from discontinued operations, net of taxes (a)		—			(.02	)		.01		(.05	)
Net income (loss) attributable to Key common shareholders — assuming dilution (c)		.25			.21			.79		.71

(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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Consolidated Statements of Changes in Equity (Unaudited) - USD ($) shares in Thousands, $ in Millions	Total	Preferred Stock [Member]	Common Shares [Member]	Capital Surplus [Member]	Retained Earnings [Member]	Treasury Stock, at Cost [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Noncontrolling Interests [Member]	Series A Preferred Stock [Member] Preferred Stock [Member]	Series A Preferred Stock [Member] Common Shares [Member]	Series A Preferred Stock [Member] Retained Earnings [Member]	Series A Preferred Stock [Member] Treasury Stock, at Cost [Member]
Beginning Balance at Dec. 31, 2013		$ 291	$ 1,017	$ 4,022	$ 7,606	$ (2,281)	$ (352)	$ 17
Beginning Balance, Preferred Shares at Dec. 31, 2013		2,905
Beginning Balance, Common Shares at Dec. 31, 2013			890,724
Net income (loss)	$ 653				647			6
Other comprehensive income (loss):
Net unrealized gains (losses) on securities available for sale, net of income taxes	24						24
Net unrealized gains (losses) on derivative financial instruments, net of income taxes	(4)						(4)
Foreign currency translation adjustments, net of income taxes	(12)						(12)
Net pension and postretirement benefit costs, net of income taxes	19						19
Cash dividends declared on common shares					(161)
Cash dividends declared on Noncumulative Series A Preferred Stock											$ (17)
Common shares repurchased, value						(355)
Common shares repurchased, shares			(26,499)
Common shares reissued (returned) for stock options and other employee benefit plans				(38)		73
Common shares reissued (returned) for stock options and other employee benefit plans, shares			4,252
LIHTC guaranteed funds put					7
Net contribution from (distribution to) noncontrolling interests								(6)
Ending Balance at Sep. 30, 2014	10,503	$ 291	$ 1,017	3,984	8,082	(2,563)	(325)	17
Ending Balance, Preferred Shares at Sep. 30, 2014		2,905
Ending Balance, Common Shares at Sep. 30, 2014			868,477
Beginning Balance at Dec. 31, 2014	10,542	$ 291	$ 1,017	3,986	8,273	(2,681)	(356)	12
Beginning Balance, Preferred Shares at Dec. 31, 2014		2,905
Beginning Balance, Common Shares at Dec. 31, 2014			859,403
Net income (loss)	691				690			1
Other comprehensive income (loss):
Net unrealized gains (losses) on securities available for sale, net of income taxes	58						58
Net unrealized gains (losses) on derivative financial instruments, net of income taxes	63						63
Foreign currency translation adjustments, net of income taxes	(18)						(18)
Net pension and postretirement benefit costs, net of income taxes	(19)						(19)
Deferred compensation				13
Cash dividends declared on common shares					(182)
Cash dividends declared on Noncumulative Series A Preferred Stock											$ (17)
Common shares repurchased, value						(448)
Common shares repurchased, shares			(31,267)
Series A Preferred Stock exchanged for common shares									$ (1)			$ 1
Series A Preferred Stock exchanged for common shares, shares									(5)	33
Common shares reissued (returned) for stock options and other employee benefit plans				(85)		120
Common shares reissued (returned) for stock options and other employee benefit plans, shares			7,116
Net contribution from (distribution to) noncontrolling interests								(1)
Ending Balance at Sep. 30, 2015	$ 10,717	$ 290	$ 1,017	$ 3,914	$ 8,764	$ (3,008)	$ (272)	$ 12
Ending Balance, Preferred Shares at Sep. 30, 2015		2,900
Ending Balance, Common Shares at Sep. 30, 2015			835,285

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Loans and Loans Held for Sale (Tables)

9 Months Ended

Sep. 30, 2015

Text Block [Abstract]

Loans by Category

Our loans by category are summarized as follows:

in millions	September 30, 2015		December 31, 2014		September 30, 2014
Commercial, financial and agricultural (a)	$	31,095	$	27,982	$	26,683
Commercial real estate:
Commercial mortgage		8,180		8,047		8,276
Construction		1,070		1,100		1,036
Total commercial real estate loans		9,250		9,147		9,312
Commercial lease financing (b)		3,929		4,252		4,135
Total commercial loans		44,274		41,381		40,130
Residential — prime loans:
Real estate — residential mortgage		2,267		2,225		2,213
Home equity:
Key Community Bank		10,282		10,366		10,380
Other		222		267		283
Total home equity loans		10,504		10,633		10,663
Total residential — prime loans		12,771		12,858		12,876
Consumer other — Key Community Bank		1,612		1,560		1,546
Credit cards		770		754		724
Consumer other:
Marine		620		779		828
Other		38		49		51
Total consumer other		658		828		879
Total consumer loans		15,811		16,000		16,025
Total loans (c) (d)	$	60,085	$	57,381	$	56,155

(a) Loan balances include $88 million, $88 million, and $90 million of commercial credit card balances at September 30, 2015, December 31, 2014, and September 30, 2014, respectively.

(b) Commercial lease financing includes receivables held as collateral for a secured borrowing of $162 million, $302 million, and $367 million at September 30, 2015, December 31, 2014, and September 30, 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 September 30, 2015, total loans include purchased loans of $119 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 September 30, 2014, total loans include purchased loans of $143 million, of which $14 million were PCI loans.

(d) Total loans exclude loans of $1.9 billion at September 30, 2015, $2.3 billion at December 31, 2014, and $2.4 billion at September 30, 2014, related to the discontinued operations of the education lending business. Additional information pertaining to these loans is provided in Note 11 (“Acquisitions and Discontinued Operations”).

Loans Held for Sale

Our loans held for sale are summarized as follows:

in millions	September 30, 2015		December 31, 2014		September 30, 2014
Commercial, financial and agricultural	$	74	$	63	$	30
Real estate — commercial mortgage		806		638		725
Commercial lease financing		10		15		10
Real estate — residential mortgage		26		18		19
Total loans held for sale (a)	$	916	$	734	$	784

(a) Total loans held for sale exclude loans held for sale of $169 million at September 30, 2015, related to the discontinued operations of the education lending business. Additional information pertaining to these loans is provided in Note 11.

Summary of Changes in Loans Held for Sale

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

in millions	September 30, 2015			December 31, 2014			September 30, 2014
Balance at beginning of the period	$	835		$	784		$	435
New originations		1,673			2,465			1,593
Transfers from (to) held to maturity, net		24			2			—
Loan sales		(1,616	)		(2,516	)		(1,243	)
Loan draws (payments), net		—			(1	)		(1	)
Balance at end of period (a)	$	916		$	734		$	784

(a) Total loans held for sale exclude loans held for sale of $169 million at September 30, 2015, related to the discontinued operations of the education lending business. Additional information pertaining to these loans is provided in Note 11.

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Securities - Available for Sale Securities (Unrealized Loss Position) (Parenthetical) (Detail) - Maximum [Member] - Other Securities [Member] - USD ($)	9 Months Ended		12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
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

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Acquisitions and Discontinued Operations - Consolidated Assets at Fair Value on Recurring Basis (Detail) - Recurring [Member] - USD ($) $ in Millions	Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014
ASSETS MEASURED ON A RECURRING BASIS
Total assets at fair value	$ 16,332	$ 15,139	$ 14,108
Trust [Member] | Education Lending [Member]
ASSETS MEASURED ON A RECURRING BASIS
Portfolio loans held for sale	169
Portfolio loans		191	201
Total assets at fair value	169	191	201
Level 3 [Member]
ASSETS MEASURED ON A RECURRING BASIS
Total assets at fair value	392	444	517
Level 3 [Member] | Trust [Member] | Education Lending [Member]
ASSETS MEASURED ON A RECURRING BASIS
Portfolio loans held for sale	169
Portfolio loans		191	201
Total assets at fair value	$ 169	$ 191	$ 201

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Securities Financing Activities (Tables)

9 Months Ended

Sep. 30, 2015

Brokers and Dealers [Abstract]

Summarized Securities Financing Agreements

The following table summarizes our securities financing agreements at September 30, 2015, December 31, 2014, and September 30, 2014:

	September 30, 2015
	Gross Amount
	Presented in		Netting						Net
in millions	Balance Sheet		Adjustments (a)			Collateral (b)			Amounts
Offsetting of financial assets:
Reverse repurchase agreements	$	4	$	(4	)		—			—
Total	$	4	$	(4	)		—			—
Offsetting of financial liabilities:
Repurchase agreements (c)	$	6	$	(4	)	$	(2	)		—
Total	$	6	$	(4	)	$	(2	)		—
	December 31, 2014
	Gross Amount
	Presented in		Netting						Net
in millions	Balance Sheet		Adjustments (a)			Collateral (b)			Amounts
Offsetting of financial assets:
Reverse repurchase agreements	$	3	$	(1	)	$	(2	)		—
Total	$	3	$	(1	)	$	(2	)		—
Offsetting of financial liabilities:
Repurchase agreements	$	1	$	(1	)		—			—
Total	$	1	$	(1	)		—			—
	September 30, 2014
	Gross Amount
	Presented in		Netting						Net
in millions	Balance Sheet		Adjustments (a)			Collateral (b)			Amounts
Offsetting of financial assets:
Reverse repurchase agreements	$	6	$	(4	)	$	(2	)		—
Total	$	6	$	(4	)	$	(2	)		—
Offsetting of financial liabilities:
Repurchase agreements	$	4	$	(4	)		—			—
Total	$	4	$	(4	)		—			—

(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.

(c) Repurchase agreements are collateralized by U.S. Treasury securities and contracted on an overnight basis.

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Loans and Loans Held for Sale - Summary of Changes in Loans Held for Sale (Parenthetical) (Detail) $ in Millions	Sep. 30, 2015 USD ($)
Loans Receivables [Abstract]
Loan securitization trust VIEs	$ 169

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Fair Value Measurements - Fair Value of Direct and Indirect Investments, Related Unfunded Commitments and Financial Support Provided (Parenthetical) (Detail)	9 Months Ended
	Sep. 30, 2015
Minimum [Member] | Passive Funds [Member]
Fair Value, Estimate Not Practicable, Financial Statement Captions [Line Items]
Liquidation period of funds	1 year
Minimum [Member] | Indirect Investments [Member]
Fair Value, Estimate Not Practicable, Financial Statement Captions [Line Items]
Liquidation period of funds	1 year
Maximum [Member] | Passive Funds [Member]
Fair Value, Estimate Not Practicable, Financial Statement Captions [Line Items]
Liquidation period of funds	4 years
Maximum [Member] | Indirect Investments [Member]
Fair Value, Estimate Not Practicable, Financial Statement Captions [Line Items]
Liquidation period of funds	9 years

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Consolidated Balance Sheets - USD ($)		Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014
ASSETS
Cash and due from banks		$ 470,000,000	$ 653,000,000	$ 651,000,000
Short-term investments		1,964,000,000	4,269,000,000	2,342,000,000
Trading account assets		811,000,000	750,000,000	965,000,000
Securities available for sale		14,376,000,000	13,360,000,000	12,245,000,000
Held-to-maturity securities (fair value: $4,940, $4,974, and $4,911)		4,936,000,000	5,015,000,000	4,997,000,000
Other investments		691,000,000	760,000,000	822,000,000
Loans, net of unearned income of $645, $682, and $685		60,085,000,000	57,381,000,000	56,155,000,000
Less: Allowance for loan and lease losses		790,000,000	794,000,000	804,000,000
Net loans		59,295,000,000	56,587,000,000	55,351,000,000
Loans held for sale		916,000,000	734,000,000	784,000,000
Premises and equipment		771,000,000	841,000,000	832,000,000
Operating lease assets		315,000,000	330,000,000	304,000,000
Goodwill		1,060,000,000	1,057,000,000	1,051,000,000
Other intangible assets		74,000,000	101,000,000	126,000,000
Corporate-owned life insurance		3,516,000,000	3,479,000,000	3,456,000,000
Derivative assets		793,000,000	609,000,000	413,000,000
Accrued income and other assets (including $1, $1, and $1 of consolidated LIHTC guaranteed funds VIEs, see Note 9) (a)	[1]	3,348,000,000	2,952,000,000	3,024,000,000
Discontinued assets (including $169 of portfolio loans held for sale at fair value and $191 and $201 of portfolio loans at fair value, see Note 11)		2,086,000,000	2,324,000,000	2,421,000,000
Total assets		95,422,000,000	93,821,000,000	89,784,000,000
Deposits in domestic offices:
NOW and money market deposit accounts		37,301,000,000	34,536,000,000	33,941,000,000
Savings deposits		2,338,000,000	2,371,000,000	2,390,000,000
Certificates of deposit ($100,000 or more)		2,001,000,000	2,040,000,000	2,533,000,000
Other time deposits		3,020,000,000	3,259,000,000	3,338,000,000
Total interest-bearing deposits		44,660,000,000	42,206,000,000	42,202,000,000
Noninterest-bearing deposits		25,985,000,000	29,228,000,000	25,697,000,000
Deposits in foreign office - interest-bearing		428,000,000	564,000,000	557,000,000
Total deposits		71,073,000,000	71,998,000,000	68,456,000,000
Federal funds purchased and securities sold under repurchase agreements		407,000,000	575,000,000	657,000,000
Bank notes and other short-term borrowings		677,000,000	423,000,000	996,000,000
Derivative liabilities		676,000,000	784,000,000	384,000,000
Accrued expense and other liabilities (including $1, $1, and $2 of consolidated LIHTC guaranteed funds VIEs, see Note 9) (a)		1,562,000,000	1,621,000,000	1,613,000,000
Long-term debt		10,310,000,000	7,875,000,000	7,172,000,000
Discontinued liabilities		0	3,000,000	3,000,000
Total liabilities		84,705,000,000	83,279,000,000	79,281,000,000
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		1,017,000,000	1,017,000,000	1,017,000,000
Capital surplus		3,914,000,000	3,986,000,000	3,984,000,000
Retained earnings		8,764,000,000	8,273,000,000	8,082,000,000
Treasury stock, at cost (181,685,035, 157,566,493, and 148,492,881 shares)		(3,008,000,000)	(2,681,000,000)	(2,563,000,000)
Accumulated other comprehensive income (loss)		(272,000,000)	(356,000,000)	(325,000,000)
Key shareholders' equity		10,705,000,000	10,530,000,000	10,486,000,000
Noncontrolling interests		12,000,000	12,000,000	17,000,000
Total equity		10,717,000,000	10,542,000,000	10,503,000,000
Total liabilities and equity		95,422,000,000	93,821,000,000	89,784,000,000
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		$ 290,000,000	$ 291,000,000	$ 291,000,000

[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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Line of Business Results (Tables)

9 Months Ended

Sep. 30, 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 September 30,	Key Community Bank						Key Corporate Bank
dollars in millions	2015			2014			2015			2014
SUMMARY OF OPERATIONS
Net interest income (TE)	$	379		$	359		$	220		$	215
Noninterest income		200			199			234			185
Total revenue (TE) (a)		579			558			454			400
Provision for credit losses		18			21			30			2
Depreciation and amortization expense		14			16			11			8
Other noninterest expense		434			425			235			205
Income (loss) from continuing operations before income taxes (TE)		113			96			178			185
Allocated income taxes and TE adjustments		42			36			42			51
Income (loss) from continuing operations		71			60			136			134
Income (loss) from discontinued operations, net of taxes		—			—			—			—
Net income (loss)		71			60			136			134
Less: Net income (loss) attributable to noncontrolling interests		—			—			(2	)		—
Net income (loss) attributable to Key	$	71		$	60		$	138		$	134
AVERAGE BALANCES (b)
Loans and leases	$	31,039		$	30,103		$	26,425		$	23,215
Total assets (a)		33,090			32,173			32,163			28,268
Deposits		51,234			50,303			18,809			17,599
OTHER FINANCIAL DATA
Net loan charge-offs (b)	$	21		$	28		$	20		$	(1	)
Return on average allocated equity (b)		10.49	%		8.89	%		28.65	%		31.59	%
Return on average allocated equity		10.49			8.89			28.65			31.59
Average full-time equivalent employees (c)		7,326			7,573			2,173			1,998
Nine months ended September 30,	Key Community Bank						Key Corporate Bank
dollars in millions	2015			2014			2015			2014
SUMMARY OF OPERATIONS
Net interest income (TE)	$	1,098		$	1,084		$	661		$	621
Noninterest income		589			574			671			566
Total revenue (TE) (a)		1,687			1,658			1,332			1,187
Provision for credit losses		50			48			77			7
Depreciation and amortization expense		42			49			31			22
Other noninterest expense		1,297			1,274			681			599
Income (loss) from continuing operations before income taxes (TE)		298			287			543			559
Allocated income taxes and TE adjustments		111			107			143			158
Income (loss) from continuing operations		187			180			400			401
Income (loss) from discontinued operations, net of taxes		—			—			—			—
Net income (loss)		187			180			400			401
Less: Net income (loss) attributable to noncontrolling interests		—			—			(1	)		2
Net income (loss) attributable to Key	$	187		$	180		$	401		$	399
AVERAGE BALANCES (b)
Loans and leases	$	30,804		$	29,979		$	25,488		$	22,702
Total assets (a)		32,853			32,063			31,236			27,829
Deposits		50,808			50,151			19,029			16,655
OTHER FINANCIAL DATA
Net loan charge-offs (b)	$	69		$	89		$	28		$	(15	)
Return on average allocated equity (b)		9.27	%		8.81	%		28.82	%		33.74	%
Return on average allocated equity		9.27			8.81			28.82			33.74
Average full-time equivalent employees (c)		7,392			7,613			2,096			1,952

(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	)	$	6		$	595		$	580		$	3		$	1		$	598		$	581
	39			38			473			422			(3	)		(5	)		470			417
	35			44			1,068			1,002			—			(4	)		1,068			998
	(4	)		(4	)		44			19			1			—			45			19
	2			3			27			27			35			38			62			65
	13			17			682			647			(20	)		(6	)		662			641
	24			28			315			309			(16	)		(36	)		299			273
	(2	)		1			82			88			(3	)		(18	)		79			70
	26			27			233			221			(13	)		(18	)		220			203
	—			—			—			—			(3	)		(17	)		(3	)		(17	)
	26			27			233			221			(16	)		(35	)		217			186
	—			—			(2	)		—			—			—			(2	)		—
$	26		$	27		$	235		$	221		$	(16	)	$	(35	)	$	219		$	186
$	1,780		$	2,396		$	59,244		$	55,714		$	37		$	82		$	59,281		$	55,796
	26,871			26,017			92,124			86,458			527			665			92,651			87,123
	455			564			70,498			68,466			(29	)		(130	)		70,469			68,336
$	1		$	4		$	42		$	31		$	(1	)		—		$	41		$	31
	33.27	%		24.63	%		19.00	%		18.28	%		(.90	)%		(1.26	)%		8.30	%		7.69	%
	33.27			24.63			19.00			18.28			(1.11	)		(2.45	)		8.19			7.05
	14			34			9,513			9,605			4,042			4,300			13,555			13,905
Other Segments						Total Segments						Reconciling Items						Key
2015			2014			2015			2014			2015			2014			2015			2014
	—		$	21		$	1,759		$	1,726		$	7		$	3		$	1,766		$	1,729
$	146			174			1,406			1,314			(11	)		(7	)		1,395			1,307
	146			195			3,165			3,040			(4	)		(4	)		3,161			3,036
	(7	)		(19	)		120			36			1			(1	)		121			35
	6			9			79			80			112			115			191			195
	38			54			2,016			1,927			(103	)		(65	)		1,913			1,862
	109			151			950			997			(14	)		(53	)		936			944
	7			27			261			292			(11	)		(42	)		250			250
	102			124			689			705			(3	)		(11	)		686			694
	—			—			—			—			5			(41	)		5			(41	)
	102			124			689			705			2			(52	)		691			653
	2			4			1			6			—			—			1			6
$	100		$	120		$	688		$	699		$	2		$	(52	)	$	690		$	647
$	1,908		$	2,639		$	58,200		$	55,320		$	63		$	68		$	58,263		$	55,388
	26,617			25,944			90,706			85,836			618			676			91,324			86,512
	454			591			70,291			67,397			(62	)		(138	)		70,229			67,259
$	8		$	8		$	105		$	82			—		$	(1	)	$	105		$	81
	40.39	%		36.38	%		18.81	%		19.66	%		(.05	)%		(.26	)%		6.48	%		6.59	%
	40.39			36.38			18.81			19.66			.07			(1.22	)		6.52			6.20
	15			50			9,503			9,615			4,022			4,327			13,525			13,942

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Derivatives and Hedging Activities - Fair Value of Credit Derivatives Purchased and Sold (Detail) - USD ($) $ in Millions	Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014
Credit Derivatives [Line Items]
Purchased	$ 2	$ (2)	$ (3)
Credit derivatives, net	2	(2)	(3)
Single Name Credit Default Swaps [Member]
Credit Derivatives [Line Items]
Purchased	(2)	(3)	(1)
Credit derivatives, net	(2)	(3)	(1)
Traded Credit Default Swap Indices [Member]
Credit Derivatives [Line Items]
Purchased	4	1	(2)
Credit derivatives, net	$ 4	$ 1	$ (2)

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Line of Business Results - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2015 Industry Branch
Nature Of Operations [Abstract]
Number of state branch network | Branch	12
Number of business units	7
Federal income tax rate	35.00%
State income tax rate	2.20%

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Acquisitions and Discontinued Operations - Portfolio Loans Held for Sale at Fair Value and Portfolio Loans at Fair Value and Related Contractual Amounts (Detail) - Discontinued Operations [Member] - Trust [Member] - Education Lending [Member] - USD ($) $ in Millions	Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Portfolio contractual amount of loans held for sale	$ 173
Portfolio contractual amount of loans		$ 192	$ 199
Portfolio fair value of loans held for sale	$ 169
Portfolio fair value of loans		$ 191	$ 201

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Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 217	$ 186	$ 691	$ 653
Other comprehensive income (loss), net of tax:
Net unrealized gains (losses) on securities available for sale, net of income taxes of $33, ($20), $35, and $14	54	(33)	58	24
Net unrealized gains (losses) on derivative financial instruments, net of income taxes of $28, ($6), $37, and ($3)	48	(8)	63	(4)
Foreign currency translation adjustments, net of income taxes of ($3), ($3), ($11), and ($3)	(5)	(9)	(18)	(12)
Net pension and postretirement benefit costs, net of income taxes of ($15), $10, ($12), and $13	(24)	14	(19)	19
Total other comprehensive income (loss), net of tax	73	(36)	84	27
Comprehensive income (loss)	290	150	775	680
Less: Comprehensive income attributable to noncontrolling interests	(2)		1	6
Comprehensive income (loss) attributable to Key	$ 292	$ 150	$ 774	$ 674

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Derivatives and Hedging Activities - Largest Exposure to Individual Counterparty (Detail) - USD ($) $ in Millions	Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014
Derivative [Line Items]
Net exposure after netting adjustments and collateral	$ 793	$ 609	$ 413
Largest Individual Counterparty [Member]
Derivative [Line Items]
Largest gross exposure (derivative asset) to an individual counterparty	137	133	106
Collateral posted by this counterparty	55	100	44
Derivative liability with this counterparty	78	31	103
Collateral pledged to this counterparty			47
Net exposure after netting adjustments and collateral	$ 4	$ 2	$ 6

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Asset Quality - Post-Modification Outstanding Recorded Investment by Concession Type for Our Commercial Accruing and Nonaccruing TDRs (Detail) - USD ($) $ in Millions	Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014
Financing Receivable, Modifications [Line Items]
Total commercial and consumer TDRs	$ 287	$ 270	$ 264
Total Loans	60,085	57,381	56,155
Commercial Loans [Member]
Financing Receivable, Modifications [Line Items]
Interest rate reduction	58	13	24
Forgiveness of principal	2	2	5
Other	1	25	6
Total	61	40	35
Total Loans	44,274	41,381	40,130
Consumer Loans [Member]
Financing Receivable, Modifications [Line Items]
Interest rate reduction	139	140	140
Forgiveness of principal	4	4	4
Other	83	86	85
Total	226	230	229
Total Loans	$ 15,811	$ 16,000	$ 16,025

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Derivatives and Hedging Activities - Credit Risk Contingent Feature (Detail) - USD ($) $ in Millions	Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014
Credit Derivatives [Line Items]
Additional collateral aggregate fair value	$ 131
Moody's, A3 Rating [Member] | One Rating Downgrade [Member]
Credit Derivatives [Line Items]
Additional collateral aggregate fair value	4	$ 1	$ 1
Moody's, A3 Rating [Member] | Two Rating Downgrades [Member]
Credit Derivatives [Line Items]
Additional collateral aggregate fair value	5	1	4
Moody's, A3 Rating [Member] | Three Rating Downgrades [Member]
Credit Derivatives [Line Items]
Additional collateral aggregate fair value	6	3	6
Standard & Poor's, A- Rating [Member] | One Rating Downgrade [Member]
Credit Derivatives [Line Items]
Additional collateral aggregate fair value	4	1	1
Standard & Poor's, A- Rating [Member] | Two Rating Downgrades [Member]
Credit Derivatives [Line Items]
Additional collateral aggregate fair value	5	1	4
Standard & Poor's, A- Rating [Member] | Three Rating Downgrades [Member]
Credit Derivatives [Line Items]
Additional collateral aggregate fair value	$ 6	$ 3	$ 6

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Securities (Tables)

9 Months Ended

Sep. 30, 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.

	September 30, 2015
in millions	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
SECURITIES AVAILABLE FOR SALE
States and political subdivisions	$	14	$	1		—	$	15
Collateralized mortgage obligations		11,938		127	$	62		12,003
Other mortgage-backed securities		2,309		22		1		2,330
Other securities		27		1		—		28
Total securities available for sale	$	14,288	$	151	$	63	$	14,376
HELD-TO-MATURITY SECURITIES
Collateralized mortgage obligations	$	4,299	$	24		23	$	4,300
Other mortgage-backed securities		617		3		—		620
Other securities		20		—		—		20
Total held-to-maturity securities	$	4,936	$	27	$	23	$	4,940
	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
	September 30, 2014
in millions	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
SECURITIES AVAILABLE FOR SALE
States and political subdivisions	$	26	$	1		—	$	27
Collateralized mortgage obligations		10,096		109	$	196		10,009
Other mortgage-backed securities		2,156		24		3		2,177
Other securities		28		4		—		32
Total securities available for sale	$	12,306	$	138	$	199	$	12,245
HELD-TO-MATURITY SECURITIES
Collateralized mortgage obligations	$	4,977	$	10	$	96	$	4,891
Other securities		20		—		—		20
Total held-to-maturity securities	$	4,997	$	10	$	96	$	4,911

Available for Sale Securities (Unrealized Loss Position)

The following table summarizes our securities that were in an unrealized loss position as of September 30, 2015, December 31, 2014, and September 30, 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
September 30, 2015
Securities available for sale:
Collateralized mortgage obligations	$	770	$	3	$	3,348	$	59	$	4,118	$	62
Other mortgage-backed securities		420		1		—		—		420		1
Other securities (a)		2		—		3		—		5		—
Held-to-maturity:
Collateralized mortgage obligations		214		1		1,355		22		1,569		23
Other mortgage-backed securities		110		—		—		—		110		—
Other securities (b)		4		—		—		—		4		—
Total temporarily impaired securities	$	1,520	$	5	$	4,706	$	81	$	6,226	$	86
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 (a)		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
September 30, 2014
Securities available for sale:
Collateralized mortgage obligations	$	605	$	7	$	4,379	$	189	$	4,984	$	196
Other mortgage-backed securities		811		1		81		2		892		3
Other securities (a)		1		—		2		—		3		—
Held-to-maturity:
Collateralized mortgage obligations		1,288		13		2,342		83		3,630		96
Total temporarily impaired securities	$	2,705	$	21	$	6,804	$	274	$	9,509	$	295

(a) Gross unrealized losses totaled less than $1 million for other securities available for sale as of September 30, 2015, December 31, 2014, and September 30, 2014.

(b) Gross unrealized losses totaled less than $1 million for other securities held-to-maturity as of September 30, 2015.

Cumulative Credit Portion of Impairments on Debt Securities

As shown in the following table, we did not have any impairment losses recognized in earnings for the three months ended September 30, 2015.

Three months ended September 30, 2015
in millions
Balance at June 30, 2015	$	4
Impairment recognized in earnings		—
Balance at September 30, 2015	$	4

Available for Sale Securities Realized Gains and Losses

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

Nine months ended September 30, 2015
in millions
Realized gains		—
Realized losses	$	1
Net securities gains (losses)	$	(1	)

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 Available for Sale				Held-to-Maturity Securities
September 30, 2015 in millions	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less	$	297	$	302	$	9	$	9
Due after one through five years		12,659		12,735		4,310		4,311
Due after five through ten years		1,329		1,336		617		620
Due after ten years		3		3		—		—
Total	$	14,288	$	14,376	$	4,936	$	4,940

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Contingent Liabilities and Guarantees - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2015 USD ($)
Commitments Contingencies And Guarantees [Line Items]
Weighted-average remaining term for outstanding commercial mortgage loans in years	7 years 10 months 6 days
Unpaid principal balance outstanding of loans sold	$ 6,100,000,000
Potential undiscounted future payments maximum limit	One-third of the principal balance of loans outstanding
Default guarantees, value	$ 188,000,000
Written Put Options [Member]
Commitments Contingencies And Guarantees [Line Items]
Default guarantees, value	$ 117,000,000
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
Default guarantees, value	$ 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 11 years
Default guarantees, value	$ 63,000,000
Default Guarantees [Member]
Commitments Contingencies And Guarantees [Line Items]
Default guarantees, value	$ 0
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	30.00%
Minimum [Member] | High [Member]
Commitments Contingencies And Guarantees [Line Items]
Guarantee Obligations	70.00%
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%

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Asset Quality - Summary of Allowance for Loan and Lease Losses (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Financing Receivable, Recorded Investment [Line Items]
Beginning balance			$ 823	$ 887
Charge-offs			(177)	(196)
Recoveries			57	92
Provision for loan and lease losses from continuing operations	$ 45	$ 19	121	35
Foreign currency translation adjustment			(1)
Ending balance	813	835	813	835
Continuing Operations [Member]
Financing Receivable, Recorded Investment [Line Items]
Beginning balance	796	814	794	848
Charge-offs	(53)	(49)	(152)	(162)
Recoveries	12	18	47	81
Net loans and leases charged off	(41)	(31)	(105)	(81)
Provision for loan and lease losses from continuing operations	36	21	102	37
Foreign currency translation adjustment	(1)		(1)
Ending balance	$ 790	$ 804	$ 790	$ 804

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Securities Financing Activities

9 Months Ended

Sep. 30, 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 that 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, 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. As a result, KBCM did not have any outstanding securities financing agreements at September 30, 2015, December 31, 2014, and September 30, 2014.

The following table summarizes our securities financing agreements at September 30, 2015, December 31, 2014, and September 30, 2014:

	September 30, 2015
	Gross Amount
	Presented in		Netting						Net
in millions	Balance Sheet		Adjustments (a)			Collateral (b)			Amounts
Offsetting of financial assets:
Reverse repurchase agreements	$	4	$	(4	)		—			—
Total	$	4	$	(4	)		—			—
Offsetting of financial liabilities:
Repurchase agreements (c)	$	6	$	(4	)	$	(2	)		—
Total	$	6	$	(4	)	$	(2	)		—
	December 31, 2014
	Gross Amount
	Presented in		Netting						Net
in millions	Balance Sheet		Adjustments (a)			Collateral (b)			Amounts
Offsetting of financial assets:
Reverse repurchase agreements	$	3	$	(1	)	$	(2	)		—
Total	$	3	$	(1	)	$	(2	)		—
Offsetting of financial liabilities:
Repurchase agreements	$	1	$	(1	)		—			—
Total	$	1	$	(1	)		—			—
	September 30, 2014
	Gross Amount
	Presented in		Netting						Net
in millions	Balance Sheet		Adjustments (a)			Collateral (b)			Amounts
Offsetting of financial assets:
Reverse repurchase agreements	$	6	$	(4	)	$	(2	)		—
Total	$	6	$	(4	)	$	(2	)		—
Offsetting of financial liabilities:
Repurchase agreements	$	4	$	(4	)		—			—
Total	$	4	$	(4	)		—			—

(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.

(c) Repurchase agreements are collateralized by U.S. Treasury securities and contracted on an overnight basis.

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 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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Derivatives and Hedging Activities (Tables)

9 Months Ended

Sep. 30, 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:

	September 30, 2015								December 31, 2014								September 30, 2014
			Fair Value								Fair Value								Fair Value
	Notional		Derivative			Derivative			Notional		Derivative			Derivative			Notional		Derivative			Derivative
in millions	Amount		Assets			Liabilities			Amount		Assets			Liabilities			Amount		Assets			Liabilities
Derivatives designated as hedging instruments:
Interest rate	$	17,910	$	394		$	12		$	15,095	$	272		$	26		$	13,946	$	237		$	44
Foreign exchange		319		11			—			371		8			—			413		13			—
Total		18,229		405			12			15,466		280			26			14,359		250			44
Derivatives not designated as hedging instruments:
Interest rate		57,006		725			644			43,771		665			618			42,088		608			572
Foreign exchange		6,161		119			112			4,024		85			81			4,433		69			64
Commodity		1,394		482			469			1,544		608			594			1,780		95			90
Credit		580		7			5			512		5			7			618		4			7
Total		65,141		1,333			1,230			49,851		1,363			1,300			48,919		776			733
Netting adjustments (a)		—		(945	)		(566	)		—		(1,034	)		(542	)		—		(613	)		(393	)
Net derivatives in the balance sheet		83,370		793			676			65,317		609			784			63,278		413			384
Other collateral (b)		—		(113	)		(232	)		—		(155	)		(241	)		—		(71	)		(268	)
Net derivative amounts	$	83,370	$	680		$	444		$	65,317	$	454		$	543		$	63,278	$	342		$	116

(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 nine-month periods ended September 30, 2015, and September 30, 2014, and where they are recorded on the income statement.

	Nine months ended September 30, 2015
		Net Gains						Net Gains
	Income Statement Location of	(Losses) on					Income Statement Location of	(Losses) on
in millions	Net Gains (Losses) on Derivative	Derivative			Hedged Item		Net Gains (Losses) on Hedged Item	Hedged Item
Interest rate	Other income	$	66			Long-term debt	Other income	$	(66	) (a)
Interest rate	Interest expense – Long-term debt		91
Total		$	157					$	(66	)
	Nine months ended September 30, 2014
		Net Gains						Net Gains
	Income Statement Location of	(Losses) on					Income Statement Location of	(Losses) on
in millions	Net Gains (Losses) on Derivative	Derivative			Hedged Item		Net Gains (Losses) on Hedged Item	Hedged Item
Interest rate	Other income	$	(21	)		Long-term debt	Other income	$	21	(a)
Interest rate	Interest expense – Long-term debt		91
Total		$	70					$	21

(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 nine-month periods ended September 30, 2015, and September 30, 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.

	Nine months ended September 30, 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	$	147		Interest income – Loans	$	73		Other income		—
Interest rate		(3	)	Interest expense – Long-term debt		(3	)	Other income		—
Interest rate		(3	)	Investment banking and debt placement fees		—		Other income		—
Net Investment Hedges
Foreign exchange contracts		29		Other Income		—		Other income		—
Total	$	170			$	70				—

	Nine months ended September 30, 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	$	27		Interest income – Loans	$	49		Other income		—
Interest rate		(5	)	Interest expense – Long-term debt		(3	)	Other income		—
Interest rate		(1	)	Investment banking and debt placement fees		—		Other income		—
Net Investment Hedges
Foreign exchange contracts		17		Other Income		—		Other income		—
Total	$	38			$	46				—

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			September 30, 2015
AOCI resulting from cash flow and net investment hedges	$	(8	)	$	107	$	(44	)	$	55

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 nine-month periods ended September 30, 2015, and September 30, 2014, and where they are recorded on the income statement.

	Nine months ended September 30, 2015								Nine months ended September 30, 2014
	Corporate								Corporate
	Services		Other						Services		Other
in millions	Income		Income			Total			Income		Income			Total
NET GAINS (LOSSES)
Interest rate	$	18		—		$	18		$	11		—		$	11
Foreign exchange		27		—			27			25		—			25
Commodity		5		—			5			3		—			3
Credit		—	$	(10	)		(10	)		—	$	(16	)		(16	)
Total net gains (losses)	$	50	$	(10	)	$	40		$	39	$	(16	)	$	23

Largest Exposure to Individual Counterparty

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

in millions	September 30, 2015		December 31, 2014		September 30, 2014
Largest gross exposure (derivative asset) to an individual counterparty	$	137	$	133	$	106
Collateral posted by this counterparty		55		100		44
Derivative liability with this counterparty		78		31		103
Collateral pledged to this counterparty		—		—		47
Net exposure after netting adjustments and collateral		4		2		6

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.

in millions	September 30, 2015		December 31, 2014		September 30, 2014
Interest rate	$	807	$	607	$	556
Foreign exchange		48		41		39
Commodity		328		478		47
Credit		4		1		1
Derivative assets before collateral		1,187		1,127		643
Less: Related collateral		394		518		230
Total derivative assets	$	793	$	609	$	413

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 September 30, 2015, December 31, 2014, and September 30, 2014. The fair value of credit derivatives presented below does not take into account the effects of bilateral collateral or master netting agreements.

	September 30, 2015								December 31, 2014								September 30, 2014
in millions	Purchased			Sold		Net			Purchased			Sold		Net			Purchased			Sold		Net
Single-name credit default swaps	$	(2	)		—	$	(2	)	$	(3	)		—	$	(3	)	$	(1	)		—	$	(1	)
Traded credit default swap indices		4			—		4			1			—		1			(2	)		—		(2	)
Other (a)		—			—		—			—			—		—			—			—		—
Total credit derivatives	$	2			—	$	2		$	(2	)		—	$	(2	)	$	(3	)		—	$	(3	)

(a) As of September 30, 2015, December 31, 2014, and September 30, 2014, the fair value of other credit derivatives sold totaled less than $1 million.

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 September 30, 2015, December 31, 2014, and September 30, 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.

	September 30, 2015							December 31, 2014							September 30, 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		.72		.87	%	$	5		.97		.87	%
Other	$	9		2.95		7.45	%		6		2.89		9.58			6		2.92		5.59
Total credit derivatives sold	$	9		—		—		$	11		—		—		$	11		—		—

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 September 30, 2015, December 31, 2014, and September 30, 2014. The additional collateral amounts were calculated based on scenarios under which KeyBank’s ratings are downgraded one, two, or three ratings as of September 30, 2015, December 31, 2014, and September 30, 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 September 30, 2015, while additional collateral of less than $1 million as of December 31, 2014, and $3 million as of September 30, 2014, would have been required. 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.

	September 30, 2015				December 31, 2014				September 30, 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	$	1	$	1
Two rating downgrades		5		5		1		1		4		4
Three rating downgrades		6		6		3		3		6		6

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Derivatives and Hedging Activities - Credit Derivatives Sold and Held (Detail) - USD ($)	9 Months Ended		12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Credit Derivatives [Line Items]
Notional Amount	$ 9,000,000	$ 11,000,000	$ 11,000,000
Single Name Credit Default Swaps [Member]
Credit Derivatives [Line Items]
Notional Amount		$ 5,000,000	$ 5,000,000
Average Term (Years)		11 months 19 days	8 months 19 days
Payment / Performance Risk		0.87%	0.87%
Other [Member]
Credit Derivatives [Line Items]
Notional Amount	$ 9,000,000	$ 6,000,000	$ 6,000,000
Average Term (Years)	2 years 11 months 12 days	2 years 11 months 1 day	2 years 10 months 21 days
Payment / Performance Risk	7.45%	5.59%	9.58%

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Securities Financing Activities - Summarized Securities Financing Agreements (Detail) - USD ($) $ in Millions	Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014
Collateral [Member]
Securities Financing Transaction [Line Items]
Reverse repurchase agreements		$ (2)	$ (2)
Total offsetting of financial assets		(2)	(2)
Repurchase agreements	$ (2)
Total offsetting of financial liabilities	(2)
Gross Amount Presented in Balance Sheet [Member]
Securities Financing Transaction [Line Items]
Reverse repurchase agreements	4	3	6
Total offsetting of financial assets	4	3	6
Repurchase agreements	6	1	4
Total offsetting of financial liabilities	6	1	4
Netting Adjustments [Member]
Securities Financing Transaction [Line Items]
Reverse repurchase agreements	(4)	(1)	(4)
Total offsetting of financial assets	(4)	(1)	(4)
Repurchase agreements	(4)	(1)	(4)
Total offsetting of financial liabilities	$ (4)	$ (1)	$ (4)

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Trust Preferred Securities Issued by Unconsolidated Subsidiaries

9 Months Ended

Sep. 30, 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 September 30, 2015, the trust preferred securities issued by the KeyCorp capital trusts represent $85 million, or .8%, of our total qualifying Tier 1 capital, net of goodwill.

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

					Principal		Interest Rate			Maturity
	Trust Preferred				Amount of		of Trust Preferred			of Trust Preferred
	Securities,		Common		Debentures,		Securities and			Securities and
dollars in millions	Net of Discount (a)		Stock		Net of Discount (b)		Debentures (c)			Debentures
September 30, 2015
KeyCorp Capital I	$	156	$	6	$	162		1.024	%		2028
KeyCorp Capital II		111		4		115		6.875			2029
KeyCorp Capital III		145		4		149		7.750			2029
Total	$	412	$	14	$	426		4.968	%		—
December 31, 2014	$	408	$	14	$	422		4.926	%		—
September 30, 2014	$	397	$	14	$	411		4.856	%		—

(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 $72 million at September 30, 2015, $68 million at December 31, 2014, and $57 million at September 30, 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 $72 million at September 30, 2015, $68 million at December 31, 2014, and $57 million at September 30, 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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Asset Quality - Allowance for Loan and Lease Losses and Corresponding Loan Balances (Detail) - USD ($) $ in Millions	Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans Outstanding	$ 60,085	$ 57,381	$ 56,155
Purchase Credit Impairment	12	13	14
Individually Evaluated for Impairment Allowance, Total ALLL - Including Discontinued Operations	38	41	39
Collectively Evaluated for Impairment Allowance, Total ALLL - Including Discontinued Operations	774	781	795
Purchased Credit Impaired Allowance, Total ALLL - Including Discontinued Operations	1	1	1
Loans Outstanding, Total ALLL - Including Discontinued Operations	61,976	59,676	58,547
Individually Evaluated for Impairment Outstanding, Total ALLL - Including Discontinued Operations	338	319	315
Collectively Evaluated for Impairment Outstanding, Total ALLL - Including Discontinued Operations	61,626	59,344	58,218
Purchased Credit Impaired Outstanding, Total ALLL - Including Discontinued Operations	12	13	14
Discontinued Operations [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Individually Evaluated for Impairment Allowance	2	1	1
Collectively Evaluated for Impairment Allowance	21	28	30
Purchase Credit Impairment Allowance	0
Loans Outstanding	1,891	2,104	2,174
Individually Evaluated for Impairment Outstanding	20	17	16
Collectively Evaluated for Impairment Outstanding	1,871	2,278	2,376
Purchase Credit Impairment	0
Loans Outstanding		2,295	2,392
Continuing Operations [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Individually Evaluated for Impairment Allowance	36	40	38
Collectively Evaluated for Impairment Allowance	753	753	765
Purchase Credit Impairment Allowance	1	1	1
Loans Outstanding	60,085	57,381	56,155
Individually Evaluated for Impairment Outstanding	318	302	299
Collectively Evaluated for Impairment Outstanding	59,755	57,066	55,842
Purchase Credit Impairment	12	13	14
Commercial, Financial and Agricultural [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans Outstanding	31,095	27,982	26,683
Commercial, Financial and Agricultural [Member] | Continuing Operations [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Individually Evaluated for Impairment Allowance	9	9	7
Collectively Evaluated for Impairment Allowance	429	382	379
Purchase Credit Impairment Allowance	0
Loans Outstanding	31,095	27,982	26,683
Individually Evaluated for Impairment Outstanding	72	43	31
Collectively Evaluated for Impairment Outstanding	31,023	27,939	26,652
Purchase Credit Impairment	0
Commercial Real Estate: Commercial Mortgage [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans Outstanding	8,180	8,047	8,276
Commercial Real Estate: Commercial Mortgage [Member] | Continuing Operations [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Individually Evaluated for Impairment Allowance	1	2	2
Collectively Evaluated for Impairment Allowance	138	146	157
Purchase Credit Impairment Allowance	0
Loans Outstanding	8,180	8,047	8,276
Individually Evaluated for Impairment Outstanding	15	21	29
Collectively Evaluated for Impairment Outstanding	8,165	8,025	8,246
Purchase Credit Impairment	0	1	1
Commercial Real Estate: Construction [Member] | Continuing Operations [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Individually Evaluated for Impairment Allowance	0	1
Collectively Evaluated for Impairment Allowance	25	27	28
Purchase Credit Impairment Allowance	0
Loans Outstanding	1,070	1,100	1,036
Individually Evaluated for Impairment Outstanding	5	8	10
Collectively Evaluated for Impairment Outstanding	1,065	1,092	1,026
Purchase Credit Impairment	0
Commercial Real Estate Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans Outstanding	9,250	9,147	9,312
Commercial Real Estate Loans [Member] | Continuing Operations [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Individually Evaluated for Impairment Allowance	1	3	2
Collectively Evaluated for Impairment Allowance	163	173	185
Purchase Credit Impairment Allowance	0
Loans Outstanding	9,250	9,147	9,312
Individually Evaluated for Impairment Outstanding	20	29	39
Collectively Evaluated for Impairment Outstanding	9,230	9,117	9,272
Purchase Credit Impairment	0	1	1
Commercial Lease Financing [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans Outstanding	3,929	4,252	4,135
Commercial Lease Financing [Member] | Continuing Operations [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Individually Evaluated for Impairment Allowance	0
Collectively Evaluated for Impairment Allowance	45	56	55
Purchase Credit Impairment Allowance	0
Loans Outstanding	3,929	4,252	4,135
Individually Evaluated for Impairment Outstanding	0
Collectively Evaluated for Impairment Outstanding	3,929	4,252	4,135
Purchase Credit Impairment	0
Commercial Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans Outstanding	44,274	41,381	40,130
Commercial Loans [Member] | Continuing Operations [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Individually Evaluated for Impairment Allowance	10	12	9
Collectively Evaluated for Impairment Allowance	637	611	619
Purchase Credit Impairment Allowance	0
Loans Outstanding	44,274	41,381	40,130
Individually Evaluated for Impairment Outstanding	92	72	70
Collectively Evaluated for Impairment Outstanding	44,182	41,308	40,059
Purchase Credit Impairment	0	1	1
Real Estate - Residential Mortgage [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans Outstanding	2,267	2,225	2,213
Real Estate - Residential Mortgage [Member] | Continuing Operations [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Individually Evaluated for Impairment Allowance	5	5	4
Collectively Evaluated for Impairment Allowance	13	17	17
Purchase Credit Impairment Allowance	1	1	1
Loans Outstanding	2,267	2,225	2,213
Individually Evaluated for Impairment Outstanding	56	55	55
Collectively Evaluated for Impairment Outstanding	2,200	2,159	2,146
Purchase Credit Impairment	11	11	12
Home Equity: Key Community Bank [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans Outstanding	10,282	10,366	10,380
Home Equity: Key Community Bank [Member] | Continuing Operations [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Individually Evaluated for Impairment Allowance	17	16	16
Collectively Evaluated for Impairment Allowance	37	50	55
Purchase Credit Impairment Allowance	0
Loans Outstanding	10,282	10,366	10,380
Individually Evaluated for Impairment Outstanding	113	108	105
Collectively Evaluated for Impairment Outstanding	10,168	10,257	10,274
Purchase Credit Impairment	1	1	1
Home Equity: Other [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans Outstanding	222	267	283
Home Equity: Other [Member] | Continuing Operations [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Individually Evaluated for Impairment Allowance	2	2	2
Collectively Evaluated for Impairment Allowance	2	3	4
Purchase Credit Impairment Allowance	0
Loans Outstanding	222	267	283
Individually Evaluated for Impairment Outstanding	11	12	12
Collectively Evaluated for Impairment Outstanding	211	255	271
Purchase Credit Impairment	0
Home Equity Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans Outstanding	10,504	10,633	10,663
Home Equity Loans [Member] | Continuing Operations [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Individually Evaluated for Impairment Allowance	19	18	18
Collectively Evaluated for Impairment Allowance	39	53	59
Purchase Credit Impairment Allowance	0
Loans Outstanding	10,504	10,633	10,663
Individually Evaluated for Impairment Outstanding	124	120	117
Collectively Evaluated for Impairment Outstanding	10,379	10,512	10,545
Purchase Credit Impairment	1	1	1
Consumer Other - Key Community Bank [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans Outstanding	1,612	1,560	1,546
Consumer Other - Key Community Bank [Member] | Continuing Operations [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Individually Evaluated for Impairment Allowance	0
Collectively Evaluated for Impairment Allowance	20	22	24
Purchase Credit Impairment Allowance	0
Loans Outstanding	1,612	1,560	1,546
Individually Evaluated for Impairment Outstanding	3	4	4
Collectively Evaluated for Impairment Outstanding	1,609	1,556	1,542
Purchase Credit Impairment	0
Consumer Credit Card Financing Receivable [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans Outstanding	770	754	724
Consumer Credit Card Financing Receivable [Member] | Continuing Operations [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Individually Evaluated for Impairment Allowance	0		1
Collectively Evaluated for Impairment Allowance	32	33	31
Purchase Credit Impairment Allowance	0
Loans Outstanding	770	754	724
Individually Evaluated for Impairment Outstanding	3	4	3
Collectively Evaluated for Impairment Outstanding	767	750	721
Purchase Credit Impairment	0
Consumer Marine [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans Outstanding	620	779	828
Consumer Marine [Member] | Continuing Operations [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Individually Evaluated for Impairment Allowance	2	5	5
Collectively Evaluated for Impairment Allowance	11	16	14
Purchase Credit Impairment Allowance	0
Loans Outstanding	620	779	828
Individually Evaluated for Impairment Outstanding	38	45	48
Collectively Evaluated for Impairment Outstanding	582	734	780
Purchase Credit Impairment	0
Consumer Others [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans Outstanding	38	49	51
Consumer Others [Member] | Continuing Operations [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Individually Evaluated for Impairment Allowance	0		1
Collectively Evaluated for Impairment Allowance	1	1	1
Purchase Credit Impairment Allowance	0
Loans Outstanding	38	49	51
Individually Evaluated for Impairment Outstanding	2	2	2
Collectively Evaluated for Impairment Outstanding	36	47	49
Purchase Credit Impairment	0
Consumer Other [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans Outstanding	658	828	879
Consumer Other [Member] | Continuing Operations [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Individually Evaluated for Impairment Allowance	2	5	6
Collectively Evaluated for Impairment Allowance	12	17	15
Purchase Credit Impairment Allowance	0
Loans Outstanding	658	828	879
Individually Evaluated for Impairment Outstanding	40	47	50
Collectively Evaluated for Impairment Outstanding	618	781	829
Purchase Credit Impairment	0
Consumer Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans Outstanding	15,811	16,000	16,025
Consumer Loans [Member] | Continuing Operations [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Individually Evaluated for Impairment Allowance	26	28	29
Collectively Evaluated for Impairment Allowance	116	142	146
Purchase Credit Impairment Allowance	1	1	1
Loans Outstanding	15,811	16,000	16,025
Individually Evaluated for Impairment Outstanding	226	230	229
Collectively Evaluated for Impairment Outstanding	15,573	15,758	15,783
Purchase Credit Impairment	$ 12	$ 12	$ 13

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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	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 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	$ 7	$ 9	$ 18	$ 26
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	$ 7	$ 9	$ 18	$ 26

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Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Statement of Comprehensive Income [Abstract]
Income taxes effect on net unrealized (losses) gains on securities available for sale	$ 33	$ (20)	$ 35	$ 14
Income taxes effect on net unrealized (losses) gains on derivative financial instruments	28	(6)	37	(3)
Income taxes effect on foreign currency translation adjustments	(3)	(3)	(11)	(3)
Income taxes effect on net pension and postretirement benefit costs	$ (15)	$ 10	$ (12)	$ 13

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Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions	Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014
Held-to-maturity securities, fair value	$ 4,940	$ 4,974	$ 4,911
Unearned income on loans	645	682	685
Consolidated guaranteed funds VIEs, for accrued income and other assets	1	1	1
Loan securitization trust VIEs		191	201
Loan securitization trust VIEs, fair value	169
Aggregate amount of certificates of deposit, denominations	100,000	100,000	100,000
Consolidated guaranteed funds VIEs, for accrued expenses and other liabilities	$ 1	$ 1	$ 2
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	181,685,035	157,566,493	148,492,881
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

9 Months Ended

Sep. 30, 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 September 30, 2015, after taking into account the effects of bilateral collateral and master netting agreements, we had $157 million of derivative assets and a positive $34 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 $636 million and derivative liabilities of $710 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 September 30, 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 September 30, 2015, December 31, 2014, and September 30, 2014. The change in the notional amounts of these derivatives by type from December 31, 2014, to September 30, 2015, indicates the volume of our derivative transaction activity during the first nine months 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:

	September 30, 2015								December 31, 2014								September 30, 2014
			Fair Value								Fair Value								Fair Value
	Notional		Derivative			Derivative			Notional		Derivative			Derivative			Notional		Derivative			Derivative
in millions	Amount		Assets			Liabilities			Amount		Assets			Liabilities			Amount		Assets			Liabilities
Derivatives designated as hedging instruments:
Interest rate	$	17,910	$	394		$	12		$	15,095	$	272		$	26		$	13,946	$	237		$	44
Foreign exchange		319		11			—			371		8			—			413		13			—
Total		18,229		405			12			15,466		280			26			14,359		250			44
Derivatives not designated as hedging instruments:
Interest rate		57,006		725			644			43,771		665			618			42,088		608			572
Foreign exchange		6,161		119			112			4,024		85			81			4,433		69			64
Commodity		1,394		482			469			1,544		608			594			1,780		95			90
Credit		580		7			5			512		5			7			618		4			7
Total		65,141		1,333			1,230			49,851		1,363			1,300			48,919		776			733
Netting adjustments (a)		—		(945	)		(566	)		—		(1,034	)		(542	)		—		(613	)		(393	)
Net derivatives in the balance sheet		83,370		793			676			65,317		609			784			63,278		413			384
Other collateral (b)		—		(113	)		(232	)		—		(155	)		(241	)		—		(71	)		(268	)
Net derivative amounts	$	83,370	$	680		$	444		$	65,317	$	454		$	543		$	63,278	$	342		$	116

(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 nine-month period ended September 30, 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 September 30, 2015.

The following table summarizes the pre-tax net gains (losses) on our fair value hedges for the nine-month periods ended September 30, 2015, and September 30, 2014, and where they are recorded on the income statement.

	Nine months ended September 30, 2015
		Net Gains						Net Gains
	Income Statement Location of	(Losses) on					Income Statement Location of	(Losses) on
in millions	Net Gains (Losses) on Derivative	Derivative			Hedged Item		Net Gains (Losses) on Hedged Item	Hedged Item
Interest rate	Other income	$	66			Long-term debt	Other income	$	(66	) (a)
Interest rate	Interest expense – Long-term debt		91
Total		$	157					$	(66	)
	Nine months ended September 30, 2014
		Net Gains						Net Gains
	Income Statement Location of	(Losses) on					Income Statement Location of	(Losses) on
in millions	Net Gains (Losses) on Derivative	Derivative			Hedged Item		Net Gains (Losses) on Hedged Item	Hedged Item
Interest rate	Other income	$	(21	)		Long-term debt	Other income	$	21	(a)
Interest rate	Interest expense – Long-term debt		91
Total		$	70					$	21

(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 nine-month period ended September 30, 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 September 30, 2015.

Considering the interest rates, yield curves, and notional amounts as of September 30, 2015, we would expect to reclassify an estimated $37 million of after-tax 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 $1 million of net losses related to terminated cash flow hedges from AOCI to income during the next 12 months. As of September 30, 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 September 30, 2015, AOCI reflected unrecognized after-tax gains totaling $35 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 September 30, 2015. We did not exclude any portion of our hedging instruments from the assessment of hedge effectiveness during the nine-month period ended September 30, 2015.

The following table summarizes the pre-tax net gains (losses) on our cash flow and net investment hedges for the nine-month periods ended September 30, 2015, and September 30, 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.

	Nine months ended September 30, 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	$	147		Interest income – Loans	$	73		Other income		—
Interest rate		(3	)	Interest expense – Long-term debt		(3	)	Other income		—
Interest rate		(3	)	Investment banking and debt placement fees		—		Other income		—
Net Investment Hedges
Foreign exchange contracts		29		Other Income		—		Other income		—
Total	$	170			$	70				—

	Nine months ended September 30, 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	$	27		Interest income – Loans	$	49		Other income		—
Interest rate		(5	)	Interest expense – Long-term debt		(3	)	Other income		—
Interest rate		(1	)	Investment banking and debt placement fees		—		Other income		—
Net Investment Hedges
Foreign exchange contracts		17		Other Income		—		Other income		—
Total	$	38			$	46				—

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			September 30, 2015
AOCI resulting from cash flow and net investment hedges	$	(8	)	$	107	$	(44	)	$	55

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 nine-month periods ended September 30, 2015, and September 30, 2014, and where they are recorded on the income statement.

	Nine months ended September 30, 2015								Nine months ended September 30, 2014
	Corporate								Corporate
	Services		Other						Services		Other
in millions	Income		Income			Total			Income		Income			Total
NET GAINS (LOSSES)
Interest rate	$	18		—		$	18		$	11		—		$	11
Foreign exchange		27		—			27			25		—			25
Commodity		5		—			5			3		—			3
Credit		—	$	(10	)		(10	)		—	$	(16	)		(16	)
Total net gains (losses)	$	50	$	(10	)	$	40		$	39	$	(16	)	$	23

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 $394 million at September 30, 2015, $518 million at December 31, 2014, and $230 million at September 30, 2014. The cash collateral netted against derivative liabilities totaled $14 million at September 30, 2015, $26 million at December 31, 2014, and $10 million at September 30, 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 September 30, 2015, we posted $112 million of cash collateral with clearing organizations and held $105 million of cash collateral from clearing organizations. At December 31, 2014, we posted $56 million of cash collateral with clearing organizations and did not hold any cash collateral from clearing organizations. At September 30, 2014, we posted $51 million of cash collateral with clearing organizations and did not hold any 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.

in millions	September 30, 2015		December 31, 2014		September 30, 2014
Largest gross exposure (derivative asset) to an individual counterparty	$	137	$	133	$	106
Collateral posted by this counterparty		55		100		44
Derivative liability with this counterparty		78		31		103
Collateral pledged to this counterparty		—		—		47
Net exposure after netting adjustments and collateral		4		2		6

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.

in millions	September 30, 2015		December 31, 2014		September 30, 2014
Interest rate	$	807	$	607	$	556
Foreign exchange		48		41		39
Commodity		328		478		47
Credit		4		1		1
Derivative assets before collateral		1,187		1,127		643
Less: Related collateral		394		518		230
Total derivative assets	$	793	$	609	$	413

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 September 30, 2015, we had gross exposure of $952 million to broker-dealers and banks. We had net exposure of $303 million after the application of master netting agreements and cash collateral, where such qualifying agreements exist. We had net exposure of $172 million after considering $131 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 September 30, 2015, which we estimate to be the potential future losses on amounts due from client counterparties in the event of default. At September 30, 2015, we had gross exposure of $525 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 $490 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 $30 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 September 30, 2015, December 31, 2014, and September 30, 2014. The fair value of credit derivatives presented below does not take into account the effects of bilateral collateral or master netting agreements.

	September 30, 2015								December 31, 2014								September 30, 2014
in millions	Purchased			Sold		Net			Purchased			Sold		Net			Purchased			Sold		Net
Single-name credit default swaps	$	(2	)		—	$	(2	)	$	(3	)		—	$	(3	)	$	(1	)		—	$	(1	)
Traded credit default swap indices		4			—		4			1			—		1			(2	)		—		(2	)
Other (a)		—			—		—			—			—		—			—			—		—
Total credit derivatives	$	2			—	$	2		$	(2	)		—	$	(2	)	$	(3	)		—	$	(3	)

(a) As of September 30, 2015, December 31, 2014, and September 30, 2014, the fair value of other credit derivatives sold totaled less than $1 million.

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 September 30, 2015, December 31, 2014, and September 30, 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.

	September 30, 2015							December 31, 2014							September 30, 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		.72		.87	%	$	5		.97		.87	%
Other	$	9		2.95		7.45	%		6		2.89		9.58			6		2.92		5.59
Total credit derivatives sold	$	9		—		—		$	11		—		—		$	11		—		—

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 September 30, 2015, KeyBank’s rating was “A3” with Moody’s and “A-” with S&P, and KeyCorp’s rating was “Baa1” with Moody’s and “BBB+” with S&P. As of September 30, 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 $249 million, which includes $216 million in derivative assets and $465 million in derivative liabilities. We had $232 million in cash and securities collateral posted to cover those positions as of September 30, 2015. The aggregate fair value of all derivative contracts with credit risk contingent features held by KeyCorp as of September 30, 2015, that were in a net liability position totaled $8 million, which consists solely of derivative liabilities. We had $8 million in collateral posted to cover those positions as of September 30, 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 September 30, 2015, December 31, 2014, and September 30, 2014. The additional collateral amounts were calculated based on scenarios under which KeyBank’s ratings are downgraded one, two, or three ratings as of September 30, 2015, December 31, 2014, and September 30, 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 September 30, 2015, while additional collateral of less than $1 million as of December 31, 2014, and $3 million as of September 30, 2014, would have been required. 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.

	September 30, 2015				December 31, 2014				September 30, 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	$	1	$	1
Two rating downgrades		5		5		1		1		4		4
Three rating downgrades		6		6		3		3		6		6

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 September 30, 2015, payments of up to $7 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 September 30, 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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Variable Interest Entities - Variable Interest Entities Information (Detail) - USD ($) $ in Millions	9 Months Ended		12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
LIHTC Funds [Member]
Variable Interest Entity [Line Items]
Variable Interest Entity, Carrying Amount of Assets, Consolidated VIEs	$ 1	$ 1	$ 1
Variable Interest Entity, Carrying Amount of Liabilities, Consolidated VIEs	1	2	1
Variable Interest Entity, Carrying Amount of Assets, Unconsolidated VIEs	26	55	55
Variable Interest Entity, Carrying Amount of Liabilities, Unconsolidated VIEs	14	36	36
LIHTC Investments, KCDC [Member]
Variable Interest Entity [Line Items]
Variable Interest Entity, Carrying Amount of Assets, Unconsolidated VIEs	834	775	764
Variable Interest Entity, Carrying Amount of Liabilities, Unconsolidated VIEs	271	263	258
Maximum Exposure to Loss, Unconsolidated VIEs	543	498	507
LIHTC Investments, KAHC [Member]
Variable Interest Entity [Line Items]
Variable Interest Entity, Carrying Amount of Assets, Unconsolidated VIEs	260	470	470
Variable Interest Entity, Carrying Amount of Liabilities, Unconsolidated VIEs	231	462	462
Maximum Exposure to Loss, Unconsolidated VIEs	$ 14	$ 9	$ 14

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Derivatives and Hedging Activities - Pre-Tax Net Gains (Losses) on Derivatives Not Designated as Hedging Instruments (Detail) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Instruments Not Designated as Hedging Instruments, Gains (Losses), Net	$ 40	$ 23
Interest Rate [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Instruments Not Designated as Hedging Instruments, Gains (Losses), Net	18	11
Foreign Exchange [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Instruments Not Designated as Hedging Instruments, Gains (Losses), Net	27	25
Commodity [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Instruments Not Designated as Hedging Instruments, Gains (Losses), Net	5	3
Credit [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Instruments Not Designated as Hedging Instruments, Gains (Losses), Net	(10)	(16)
Corporate Services Income [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Instruments Not Designated as Hedging Instruments, Gains (Losses), Net	50	39
Corporate Services Income [Member] | Interest Rate [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Instruments Not Designated as Hedging Instruments, Gains (Losses), Net	18	11
Corporate Services Income [Member] | Foreign Exchange [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Instruments Not Designated as Hedging Instruments, Gains (Losses), Net	27	25
Corporate Services Income [Member] | Commodity [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Instruments Not Designated as Hedging Instruments, Gains (Losses), Net	5	3
Other Income [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Instruments Not Designated as Hedging Instruments, Gains (Losses), Net	(10)	(16)
Other Income [Member] | Credit [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Instruments Not Designated as Hedging Instruments, Gains (Losses), Net	$ (10)	$ (16)

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Derivatives and Hedging Activities - Derivative Instrument Cash Flow Hedge Earning Recognized by Income Statement Location (Detail) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Derivatives, Fair Value [Line Items]
Net Gains (Losses) Recognized in OCI (Effective Portion)	$ 170	$ 38
Net Gains (Losses) Reclassified From OCI Into Income (Effective Portion)	70	46
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)	29	17
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)	147	27
Net Gains (Losses) Reclassified From OCI Into Income (Effective Portion)	73	49
Interest Expense [Member] | Interest Rate [Member] | Cash Flow Hedges [Member]
Derivatives, Fair Value [Line Items]
Net Gains (Losses) Recognized in OCI (Effective Portion)	(3)	(5)
Net Gains (Losses) Reclassified From OCI Into Income (Effective Portion)	(3)	(3)
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)	$ (3)	$ (1)

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Acquisitions and Discontinued Operations - Combined Assets and Liabilities of Discontinued Operations (Parenthetical) (Detail) - USD ($)	Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Unearned income on loans	$ 645,000,000	$ 682,000,000	$ 685,000,000
Maximum [Member] | Discontinued Operations [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Unearned income on loans	$ 1,000,000	$ 1,000,000	$ 1,000,000

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Accumulated Other Comprehensive Income - Changes in AOCI (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	$ (345)	$ (289)	$ (356)	$ (352)
Other comprehensive income before reclassification, net of income taxes	76	(39)	107	40
Amounts reclassified from accumulated other comprehensive income, net of income taxes	(3)	3	(23)	(13)
Total other comprehensive income (loss), net of tax	73	(36)	84	27
Ending balance	(272)	(325)	(272)	(325)
Unrealized Gains (Losses) on Securities Available for Sale [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance		(6)	(4)	(63)
Other comprehensive income before reclassification, net of income taxes	54	(33)	57	24
Amounts reclassified from accumulated other comprehensive income, net of income taxes			1
Total other comprehensive income (loss), net of tax	54	(33)	58	24
Ending balance	54	(39)	54	(39)
Unrealized Gains (Losses) on Derivative Financial Instruments [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	7	(7)	(8)	(11)
Other comprehensive income before reclassification, net of income taxes	65	3	107	25
Amounts reclassified from accumulated other comprehensive income, net of income taxes	(17)	(11)	(44)	(29)
Total other comprehensive income (loss), net of tax	48	(8)	63	(4)
Ending balance	55	(15)	55	(15)
Foreign Currency Translation Adjustment [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	9	39	22	42
Other comprehensive income before reclassification, net of income taxes	(5)	(9)	(19)	(9)
Amounts reclassified from accumulated other comprehensive income, net of income taxes			1	(3)
Total other comprehensive income (loss), net of tax	(5)	(9)	(18)	(12)
Ending balance	4	30	4	30
Net Pension and Postretirement Benefit Costs [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(361)	(315)	(366)	(320)
Other comprehensive income before reclassification, net of income taxes	(38)		(38)
Amounts reclassified from accumulated other comprehensive income, net of income taxes	14	14	19	19
Total other comprehensive income (loss), net of tax	(24)	14	(19)	19
Ending balance	$ (385)	$ (301)	$ (385)	$ (301)

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Acquisitions and Discontinued Operations - Combined Results of Discontinued Operations (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Income taxes	$ (2)	$ (10)	$ 3	$ (24)
Income (loss) from discontinued operations, net of taxes	(3)	(17)	5	(41)
Discontinued Operations [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net interest income	9	26	29	74
Provision for credit losses	7	5	9	15
Net interest income after provision for credit losses	2	21	20	59
Noninterest income	(2)	(41)	1	(101)
Noninterest expense	5	7	13	23
Income (loss) before income taxes	(5)	(27)	8	(65)
Income taxes	(2)	(10)	3	(24)
Income (loss) from discontinued operations, net of taxes	$ (3)	$ (17)	$ 5	$ (41)

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Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Oct. 29, 2015
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2015
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q3
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		835,366,925

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Employee Benefits - Additional Information (Detail) - Other Postretirement Benefit Plans [Member]	9 Months Ended
	Sep. 30, 2015
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 that 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.

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Mortgage Servicing Assets

9 Months Ended

Sep. 30, 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:

	Nine months ended September 30,
in millions	2015			2014
Balance at beginning of period	$	323		$	332
Servicing retained from loan sales		39			19
Purchases		29			33
Amortization		(71	)		(76	)
Balance at end of period	$	320		$	308
Fair value at end of period	$	427		$	370

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 September 30, 2015, and September 30, 2014, along with the valuation techniques, are shown in the following table:

September 30, 2015 dollars in millions	Valuation Technique	Significant Unobservable Input	Range (Weighted-Average)
Mortgage servicing assets	Discounted cash flow	Prepayment speed	1.70 - 16.30% (4.90%)
		Expected defaults	1.00 - 3.00% (1.70%)
		Residual cash flows discount rate	7.00 - 15.00% (7.80%)
		Escrow earn rate	0.90 - 3.50% (2.30%)
		Servicing cost	$150 - $2,719 ($1,151)
		Loan assumption rate	0.00 - 3.00% (1.37%)
		Percentage late	0.00 - 2.00% (0.33%)

September 30, 2014 dollars in millions	Valuation Technique	Significant Unobservable Input	Range (Weighted-Average)
Mortgage servicing assets	Discounted cash flow	Prepayment speed	1.90 - 12.30% (5.90%)
		Expected defaults	1.00 - 3.00% (1.90%)
		Residual cash flows discount rate	7.00 - 14.10% (7.80%)
		Escrow earn rate	0.50 - 3.10% (1.70%)
		Servicing cost	$150 - $2,700 ($1,053)
		Loan assumption rate	0.20 - 3.00% (1.52%)
		Percentage late	0.00 - 2.00% (0.32%)

If these economic assumptions change or prove incorrect, the fair value of mortgage servicing assets may also change. Expected credit losses, escrow earn rates, and discount rates are critical to the valuation of servicing assets. Estimates of these assumptions are based on how a market participant would view the respective rates and reflect historical data associated with the loans, industry trends, and other considerations. Actual rates may differ from those estimated due to changes in a variety of economic factors. A decrease in the value assigned to the escrow earn rates would cause a decrease in the fair value of our mortgage servicing assets. An increase in the assumed default rates of commercial mortgage loans or an increase in the assigned discount rates would cause a decrease in the fair value of our mortgage servicing assets.

Contractual fee income from servicing commercial mortgage loans totaled $33 million for the nine-month period ended September 30, 2015, and $35 million for the nine-month period ended September 30, 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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Fair Value Measurements - Fair Value Disclosures of Financial Instruments (Detail) - USD ($)	Sep. 30, 2015	Jun. 30, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014
ASSETS
Trading account assets	$ 811,000,000		$ 750,000,000	$ 965,000,000
Securities available for sale	14,376,000,000		13,360,000,000	12,245,000,000
Held-to-maturity securities	4,940,000,000		4,974,000,000	4,911,000,000
Held-to-maturity securities	4,936,000,000		5,015,000,000	4,997,000,000
Other investments	691,000,000		760,000,000	822,000,000
Loans, net of allowance			191,000,000	201,000,000
Loans, net of allowance	59,295,000,000		56,587,000,000	55,351,000,000
Loans held for sale	0		0	0
Loans held for sale	916,000,000	$ 835,000,000	734,000,000	784,000,000	$ 435,000,000
Derivative assets	793,000,000		609,000,000	413,000,000
LIABILITIES
Long-term debt	10,310,000,000		7,875,000,000	7,172,000,000
Derivative liabilities	676,000,000		784,000,000	384,000,000
Derivative liabilities, netting adjustment	0		0	0
Carrying Amount [Member]
ASSETS
Cash and short-term investments	2,434,000,000		4,922,000,000	2,993,000,000
Trading account assets	811,000,000		750,000,000	965,000,000
Securities available for sale	14,376,000,000		13,360,000,000	12,245,000,000
Held-to-maturity securities	4,936,000,000		5,015,000,000	4,997,000,000
Other investments	691,000,000		760,000,000	822,000,000
Loans, net of allowance	59,295,000,000		56,587,000,000	55,351,000,000
Loans held for sale	916,000,000		734,000,000	784,000,000
Mortgage servicing assets				308,000,000
Derivative assets	793,000,000		609,000,000	413,000,000
LIABILITIES
Deposits with no stated maturity	65,624,000,000		66,135,000,000	62,028,000,000
Time deposits	5,449,000,000		5,863,000,000	6,428,000,000
Short-term borrowings	1,084,000,000		998,000,000	1,653,000,000
Long-term debt	10,310,000,000		7,875,000,000	7,172,000,000
Derivative liabilities	676,000,000		784,000,000	384,000,000
Fair Value [Member]
ASSETS
Cash and short-term investments	2,434,000,000		4,922,000,000	2,993,000,000
Trading account assets	811,000,000		750,000,000	965,000,000
Securities available for sale	14,376,000,000		13,360,000,000	12,245,000,000
Held-to-maturity securities	4,940,000,000		4,974,000,000	4,911,000,000
Other investments	691,000,000		760,000,000	822,000,000
Loans, net of allowance	57,497,000,000		54,993,000,000	53,996,000,000
Loans held for sale	916,000,000		734,000,000	784,000,000
Mortgage servicing assets				370,000,000
Derivative assets	793,000,000		609,000,000	413,000,000
LIABILITIES
Deposits with no stated maturity	65,624,000,000		66,135,000,000	62,028,000,000
Time deposits	5,502,000,000		5,925,000,000	6,493,000,000
Short-term borrowings	677,000,000		998,000,000	1,653,000,000
Long-term debt	10,609,000,000		8,251,000,000	8,056,000,000
Derivative liabilities	676,000,000		784,000,000	384,000,000
Fair Value [Member] | Level 1 [Member]
ASSETS
Cash and short-term investments	2,434,000,000		4,922,000,000	2,993,000,000
Trading account assets	4,000,000		2,000,000	13,000,000
Securities available for sale	11,000,000		22,000,000	22,000,000
Other investments			2,000,000
Derivative assets	120,000,000		91,000,000	73,000,000
LIABILITIES
Time deposits	427,000,000		564,000,000	556,000,000
Short-term borrowings				6,000,000
Long-term debt	10,146,000,000		7,625,000,000	6,854,000,000
Derivative liabilities	102,000,000		77,000,000	55,000,000
Fair Value [Member] | Level 2 [Member]
ASSETS
Trading account assets	807,000,000		748,000,000	952,000,000
Securities available for sale	14,348,000,000		13,328,000,000	12,213,000,000
Held-to-maturity securities	4,940,000,000		4,974,000,000	4,911,000,000
Derivative assets	1,593,000,000		1,536,000,000	931,000,000
LIABILITIES
Deposits with no stated maturity	65,624,000,000		66,135,000,000	62,028,000,000
Time deposits	5,075,000,000		5,361,000,000	5,937,000,000
Short-term borrowings	677,000,000		998,000,000	1,647,000,000
Long-term debt	463,000,000		626,000,000	1,202,000,000
Derivative liabilities	1,140,000,000		1,248,000,000	721,000,000
Fair Value [Member] | Level 3 [Member]
ASSETS
Securities available for sale	17,000,000		10,000,000	10,000,000
Other investments	691,000,000		758,000,000	822,000,000
Loans, net of allowance	57,497,000,000		54,993,000,000	53,996,000,000
Loans held for sale	916,000,000		734,000,000	784,000,000
Mortgage servicing assets				370,000,000
Derivative assets	25,000,000		16,000,000	22,000,000
LIABILITIES
Derivative liabilities			1,000,000	1,000,000
Fair Value [Member] | Netting Adjustment [Member]
ASSETS
Derivative assets, netting adjustment	(945,000,000)		(1,034,000,000)	(613,000,000)
LIABILITIES
Derivative liabilities, netting adjustment	$ (566,000,000)		$ (542,000,000)	$ (393,000,000)

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Derivatives and Hedging Activities - Pre-Tax Net Gains (Losses) on Fair Value Hedges (Detail) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Derivatives, Fair Value [Line Items]
Net Gains (Losses) on Derivative	$ 157	$ 70
Net Gains (Losses) on Hedged Item	(66)	21
Other Income [Member] | Interest Rate [Member]
Derivatives, Fair Value [Line Items]
Net Gains (Losses) on Derivative	66	(21)
Net Gains (Losses) on Hedged Item	(66)	21
Interest Expense [Member] | Interest Rate [Member]
Derivatives, Fair Value [Line Items]
Net Gains (Losses) on Derivative	$ 91	$ 91

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Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Millions		3 Months Ended		9 Months Ended
		Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
INTEREST INCOME
Loans		$ 542	$ 531	$ 1,597	$ 1,576
Loans held for sale		10	4	29	13
Securities available for sale		75	67	217	210
Held-to-maturity securities		24	25	72	70
Trading account assets		5	6	15	19
Short-term investments		1	2	5	4
Other investments		4	4	14	16
Total interest income		661	639	1,949	1,908
INTEREST EXPENSE
Deposits		27	28	79	91
Federal funds purchased and securities sold under repurchase agreements			1		2
Bank notes and other short-term borrowings		2	2	6	6
Long-term debt		41	33	118	98
Total interest expense		70	64	203	197
NET INTEREST INCOME		591	575	1,746	1,711
Provision for credit losses		45	19	121	35
Net interest income after provision for credit losses		546	556	1,625	1,676
NONINTEREST INCOME
Trust and investment services income		108	99	328	291
Investment banking and debt placement fees		109	88	318	271
Service charges on deposit accounts		68	68	192	197
Operating lease income and other leasing gains		15	17	58	81
Corporate services income		57	42	143	125
Cards and payments income		47	42	136	123
Corporate-owned life insurance income		30	26	91	80
Consumer mortgage income		3	3	10	7
Mortgage servicing fees		11	9	33	35
Net gains (losses) from principal investing		11	9	51	60
Other income	[1]	11	14	35	37
Total noninterest income		470	417	1,395	1,307
NONINTEREST EXPENSE
Personnel		426	405	1,223	1,182
Net occupancy		60	66	191	198
Computer processing		41	39	121	118
Business services and professional fees		40	36	115	118
Equipment		22	25	66	73
Operating lease expense		11	11	34	31
Marketing		17	15	40	33
FDIC assessment		8	9	24	21
Intangible asset amortization		9	10	27	29
OREO expense, net		2	1	5	3
Other expense		88	89	258	251
Total noninterest expense		724	706	2,104	2,057
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		292	267	916	926
Income taxes		72	64	230	232
Income (loss) from continuing operations		220	203	686	694
Income (loss) from discontinued operations, net of taxes of ($2), ($10), $3, and ($24) (see Note 11)		(3)	(17)	5	(41)
NET INCOME (LOSS)		217	186	691	653
Less: Net income (loss) attributable to noncontrolling interests		(2)		1	6
NET INCOME (LOSS) ATTRIBUTABLE TO KEY		219	186	690	647
Income (loss) from continuing operations attributable to Key common shareholders		216	197	668	671
Net income (loss) attributable to Key common shareholders		$ 213	$ 180	$ 673	$ 630
Per common share:
Income (loss) from continuing operations attributable to Key common shareholders		$ 0.26	$ 0.23	$ 0.79	$ 0.77
Income (loss) from discontinued operations, net of taxes			(0.02)	0.01	(0.05)
Net income (loss) attributable to Key common shareholders	[2]	0.26	0.21	0.80	0.72
Per common share - assuming dilution:
Income (loss) from continuing operations attributable to Key common shareholders		0.26	0.23	0.78	0.76
Income (loss) from discontinued operations, net of taxes			(0.02)	0.01	(0.05)
Net income (loss) attributable to Key common shareholders	[2]	0.25	0.21	0.79	0.71
Cash dividends declared per common share		$ 0.075	$ 0.065	$ 0.215	$ 0.185
Weighted-average common shares outstanding (000)		831,430	867,350	839,758	875,728
Effect of convertible preferred stock		0	0	0	0
Effect of common share options and other stock awards		7,450	6,772	7,613	6,723
Weighted-average common shares and potential common shares outstanding (000)	[3]	838,880	874,122	847,371	882,451

[1] For each of the three months ended September 30, 2015, and September 30, 2014, net securities gains (losses) totaled less than $1 million. For the three months ended September 30, 2015, and September 30, 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

9 Months Ended

Sep. 30, 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 September 30,						Nine months ended September 30,
dollars in millions, except per share amounts	2015			2014			2015		2014
EARNINGS
Income (loss) from continuing operations	$	220		$	203		$	686	$	694
Less: Net income (loss) attributable to noncontrolling interests		(2	)		—			1		6
Income (loss) from continuing operations attributable to Key		222			203			685		688
Less: Dividends on Series A Preferred Stock		6			6			17		17
Income (loss) from continuing operations attributable to Key common shareholders		216			197			668		671
Income (loss) from discontinued operations, net of taxes (a)		(3	)		(17	)		5		(41	)
Net income (loss) attributable to Key common shareholders	$	213		$	180		$	673	$	630
WEIGHTED-AVERAGE COMMON SHARES
Weighted-average common shares outstanding (000)		831,430			867,350			839,758		875,728
Effect of convertible preferred stock		—			—			—		—
Effect of common share options and other stock awards		7,450			6,772			7,613		6,723
Weighted-average common shares and potential common shares outstanding (000) (b)		838,880			874,122			847,371		882,451
EARNINGS PER COMMON SHARE
Income (loss) from continuing operations attributable to Key common shareholders	$	.26		$	.23		$	.79	$	.77
Income (loss) from discontinued operations, net of taxes (a)		—			(.02	)		.01		(.05	)
Net income (loss) attributable to Key common shareholders (c)		.26			.21			.80		.72
Income (loss) from continuing operations attributable to Key common shareholders — assuming dilution	$	.26		$	.23		$	.78	$	.76
Income (loss) from discontinued operations, net of taxes (a)		—			(.02	)		.01		(.05	)
Net income (loss) attributable to Key common shareholders — assuming dilution (c)		.25			.21			.79		.71

(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 and Accounting Policies

9 Months Ended

Sep. 30, 2015

Accounting Policies [Abstract]

Basis of Presentation and Accounting Policies

1. Basis of Presentation and Accounting Policies

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, which was filed with the U.S. Securities and Exchange Commission and is available on its website (www.sec.gov) and on our website (www.key.com/ir).

AICPA: American Institute of Certified Public Accountants.	KREEC: Key Real Estate Equity Capital, Inc.
ALCO: Asset/Liability Management Committee.	LCR: Liquidity coverage ratio.
ALLL: Allowance for loan and lease losses.	LIBOR: London Interbank Offered Rate.
A/LM: Asset/liability management.	LIHTC: Low-income housing tax credit.
AOCI: Accumulated other comprehensive income (loss).	Moody’s: Moody’s Investor Services, Inc.
APBO: Accumulated postretirement benefit obligation.	MRM: Market Risk Management group.
Austin: Austin Capital Management, Ltd.	N/A: Not applicable.
BHCs: Bank holding companies.	NASDAQ: The NASDAQ Stock Market LLC.
Board: KeyCorp Board of Directors.	N/M: Not meaningful.
CCAR: Comprehensive Capital Analysis and Review.	NOW: Negotiable Order of Withdrawal.
CMBS: Commercial mortgage-backed securities.	NYSE: New York Stock Exchange.
CMO: Collateralized mortgage obligation.	OCC: Office of the Comptroller of the Currency.
Common shares: KeyCorp common shares, $1 par value.	OCI: Other comprehensive income (loss).
Dodd-Frank Act: Dodd-Frank Wall Street Reform and	OREO: Other real estate owned.
Consumer Protection Act of 2010.	OTTI: Other-than-temporary impairment.
EBITDA: Earnings before interest, taxes, depreciation, and	PBO: Projected benefit obligation.
amortization.	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 and 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
FHLB: Federal Home Loan Bank of Cincinnati.	and nonbank financial companies designated by FSOC for
FHLMC: Federal Home Loan Mortgage Corporation.	supervision by the Federal Reserve.
FNMA: Federal National Mortgage Association, or Fannie Mae.	TDR: Troubled debt restructuring.
FSOC: Financial Stability Oversight Council.	TE: Taxable-equivalent.
GAAP: U.S. generally accepted accounting principles.	U.S. Treasury: United States Department of the Treasury.
GNMA: Government National Mortgage Association.	VaR: Value at risk.
ISDA: International Swaps and Derivatives Association.	VEBA: Voluntary Employee Beneficiary Association.
KAHC: Key Affordable Housing Corporation.	Victory: Victory Capital Management and/or
KBCM: KeyBanc Capital Markets, Inc.	Victory Capital Advisors.
KCDC: Key Community Development Corporation.	VIE: Variable interest entity.
KEF: Key Equipment Finance.

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”).

Allowance for Loan and Lease Losses

In the third quarter of 2015, we enhanced the approach used to determine the commercial reserve factors used in estimating the commercial ALLL, which had the effect of capturing certain elements in the commercial quantitative reserve component that had formerly been included in the commercial qualitative component. Under the enhanced methodology, we began utilizing more refined commercial estimated loss rates that represent cumulative losses over the estimated average time period from the onset of credit deterioration to the initial loss recorded for an individual loan. In addition, we began utilizing an enhanced framework to quantify commercial ALLL adjustments resulting from qualitative factors that may not be fully captured within the statistical analysis of incurred loss. The impact of these changes was largely neutral to the total ALLL at September 30, 2015. However, because the quantitative reserve is allocated to the business segments at a loan level, while the qualitative portion is allocated at the portfolio level, the impact of the methodology enhancements on the allowance for each business segment and each portfolio caused the business segment and commercial portfolio reserves to increase or decrease accordingly. The impact of the increases and decreases on the business segment and commercial portfolio reserves was not significant.

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 has been presented 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.

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 September 30, 2015

Business combinations. In September 2015, the FASB issued new accounting guidance that obligates an acquirer in a business combination to recognize adjustments to provisional amounts in the reporting period that the amounts were determined, eliminating the requirement for retrospective adjustments. The acquirer should record in the current period any income effects that resulted from the change in provisional amounts, calculated as if the accounting were completed at the acquisition date. 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 the 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.

Fair value measurement. In May 2015, the FASB issued new disclosure guidance that eliminates the requirement to categorize investments measured using the net asset value practical expedient in the fair value hierarchy table. Entities will be required to disclose the fair value of investments measured using the net asset value practical expedient so that financial statement users can reconcile amounts reported in the fair value hierarchy table to amounts reported on the balance sheet. This disclosure will be presented for interim and annual reporting periods beginning after December 15, 2015 (March 31, 2016, for us) on a retrospective basis. Early adoption is permitted. The adoption of this disclosure guidance will not affect our financial condition or results of operations.

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. We have elected to implement this new accounting guidance using a prospective approach. 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. 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. 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. We have elected to implement this new accounting guidance using a prospective approach. 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 can be implemented using either a retrospective method or a cumulative-effect approach. In August 2015, the FASB issued an update that defers the effective date of the revenue recognition guidance by one year. This new guidance will be effective for interim and annual reporting periods beginning after December 15, 2017 (effective January 1, 2018, for us). Early adoption is permitted but only for interim and annual reporting periods beginning after December 15, 2016. 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 the FASB has recently issued and proposed updates to certain aspects of the guidance. 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

9 Months Ended

Sep. 30, 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.

During the third quarters of 2015 and 2014, year-to-date lump sum payments made under certain pension plans triggered settlement accounting. In accordance with the applicable accounting guidance for defined benefit plans, we performed a remeasurement of the affected plans in conjunction with the settlement and recognized the settlement losses reflected in the following table. We will also recognize a settlement loss in the fourth quarter of 2015 related to additional lump sum payments made during the fourth quarter.

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

	Three months ended September 30,						Nine months ended September 30,
in millions	2015			2014			2015			2014
Interest cost on PBO	$	10		$	12		$	30		$	36
Expected return on plan assets		(14	)		(17	)		(42	)		(51	)
Amortization of losses		4			4			13			12
Settlement loss		19			20			19			20
Net pension cost	$	19		$	19		$	20		$	17

Other Postretirement Benefit Plans

We sponsor a retiree healthcare plan that 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 September 30,						Nine months ended September 30,
in millions	2015			2014			2015			2014
Interest cost on APBO	$	1		$	1		$	3		$	3
Expected return on plan assets		(1	)		(1	)		(2	)		(3	)
Amortization of unrecognized prior service credit		—			—			(1	)		—
Net postretirement benefit cost		—			—			—			—

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Variable Interest Entities

9 Months Ended

Sep. 30, 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 significant 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.”

During the third quarter of 2015, we noted that not all liabilities related to our unconsolidated VIEs were captured in the table below. The amounts in the “Total Liabilities” column for our unconsolidated VIEs were revised to incorporate all liabilities for the periods ended December 31, 2014, and September 30, 2014.

	Consolidated VIEs				Unconsolidated VIEs
	Total		Total		Total		Total		Maximum
in millions	Assets		Liabilities		Assets		Liabilities		Exposure to Loss
September 30, 2015
LIHTC funds	$	1	$	1	$	26	$	14		—
LIHTC investments
KCDC		N/A		N/A		834		271	$	543
KAHC		N/A		N/A		260		231		14
December 31, 2014
LIHTC funds	$	1	$	1	$	55	$	36		—
LIHTC investments
KCDC		N/A		N/A		764		258	$	507
KAHC		N/A		N/A		470		462		14
September 30, 2014
LIHTC funds	$	1	$	2	$	55	$	36		—
LIHTC investments
KCDC		N/A		N/A		775		263	$	498
KAHC		N/A		N/A		470		462		9

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 $1 million at September 30, 2015, December 31, 2014, and September 30, 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, which are recorded in “accrued expense and other liabilities” on the balance sheet.

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 September 30, 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 $4 million. 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.” 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. Our maximum exposure to loss in connection with these funds is minimal and represents the remaining investment balance. We do not have any liability recorded related to the funds. We have not formed nonguaranteed funds since October 2003.

LIHTC investments. Through KCDC, 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. Our maximum exposure to loss in connection with these partnerships consists of our unamortized investment balance plus any unfunded equity commitments and tax credits claimed but subject to recapture. These investments are recorded in “other investments” on the balance sheet. We do not have any liability recorded related to these investments because we believe the likelihood of any loss is remote. We continue to invest in these LIHTC operating partnerships.

Through KAHC, we have additional investments in unconsolidated LIHTC operating partnerships that are held by the consolidated LIHTC guaranteed funds. 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 have the obligation to absorb expected losses and the right to receive residual returns. Our maximum exposure to loss in connection with these partnerships consists of our remaining investment balance. These investments are recorded in “other investments” on the balance sheet. Information regarding our exposure to loss in connection with these guaranteed funds is described above in the consolidated LIHTC guaranteed funds section and is also included in Note 15 under the heading “Return guarantee agreement with LIHTC investors.” We have not obtained any significant direct investments (either individually or in the aggregate) in LIHTC operating partnerships since September 2003.

We amortize our LIHTC investments over the period that we expect to receive the tax benefits. During the first nine months of 2015, we recognized $85 million of amortization and $99 million of tax credits associated with these investments within income taxes on our income statement. During the first nine months of 2014, we recognized $72 million of amortization and $84 million of tax credits associated with these investments within income taxes on our income statement. We had $1 billion and $926 million of investments in LIHTC operating partnerships at September 30, 2015, and September 30, 2014, respectively. These investments are recorded in “accrued income and other assets” on our balance sheet.

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 (“Basis of Presentation and Accounting Policies”).

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Securities - Additional Information (Detail)	3 Months Ended		9 Months Ended
	Sep. 30, 2015 USD ($) MortgageLoan Positions	Sep. 30, 2014 USD ($)	Sep. 30, 2015 USD ($) MortgageLoan Positions
Schedule of Available-for-sale Securities [Line Items]
Gross unrealized loss attributable to collateralized mortgage obligations	$ 62,000,000		$ 62,000,000
Number of fixed rate collateralized mortgage obligations | MortgageLoan	56		56
Weighted-average maturity collateralized mortgage, in years			4 years 2 months 12 days
Weighted-average maturity mortgage-backed securities, in years			5 years 2 months 12 days
Impairment recognized in earnings	$ 0	$ 0
Pledged available for sale and held-to-maturity securities	$ 6,500,000,000		$ 6,500,000,000
Other Mortgage-Backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Gross unrealized loss attributable to mortgage-backed securities			$ 1,000,000
Number of other mortgage-backed securities positions | Positions	17		17

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Fair Value Measurements

9 Months Ended

Sep. 30, 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 September 30, 2015, our Level 3 instruments consist of two convertible preferred securities. Our Strategy group is responsible for reviewing the valuation model and determining the fair value of these investments on a quarterly basis. The securities are valued using a cash flow analysis of the associated private company issuers. The valuations of the securities are negatively impacted by projected net losses of the associated private companies and positively impacted by projected net gains.

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. There were no significant direct equity and mezzanine investments at September 30, 2015.

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 September 30, 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 September 30, 2015. We did not provide any financial support to investees related to our direct and indirect investments for the nine months ended September 30, 2015, and September 30, 2014.

September 30, 2015			Unfunded
in millions	Fair Value		Commitments
INVESTMENT TYPE
Indirect investments
Passive funds (a)	$	9	$	1
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.

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 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 September 30, 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 September 30, 2015, as well as financial support provided for the three and nine months ended September 30, 2015, and September 30, 2014:

					Financial support provided
					Three months ended September 30,								Nine months ended September 30,
	September 30, 2015				2015				2014				2015				2014
	Fair		Unfunded		Funded		Funded		Funded		Funded		Funded		Funded		Funded		Funded
in millions	Value		Commitments		Commitments		Other		Commitments		Other		Commitments		Other		Commitments		Other
INVESTMENT TYPE
Direct investments (a)	$	66		—		—	$	—		—		—		—	$	2		—	$	2
Indirect investments (b)		271	$	53	$	2		—	$	3		—	$	7		—	$	10		—
Total	$	337	$	53	$	2	$	—	$	3		—	$	7	$	2	$	10	$	2

(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.

Other. We have one indirect equity investment in the form of limited partnership units of less than five percent. The investment is classified as Level 3 asset since our significant inputs are not observable in the marketplace. This investment is 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 an ownership interest in partners’ capital to which a proportionate share of net asset is attributed). The significant unobservable input used in estimating fair value is primarily the most recent value of the capital account as reported by the general partner of the partnership in which we invest. Under the requirements of the Volcker Rule, we will be required to dispose of this investment. As of September 30, 2015, management has not committed to a plan to sell this investment. Therefore, the investment continues to be valued using the net asset value per share methodology.

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 MRM 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 MRM 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, MRM 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 September 30, 2015, December 31, 2014, and September 30, 2014.

September 30, 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		—	$	694		—	$	694
States and political subdivisions		—		35		—		35
Collateralized mortgage obligations		—		—		—		—
Other mortgage-backed securities		—		46		—		46
Other securities	$	4		23		—		27
Total trading account securities		4		798		—		802
Commercial loans		—		9		—		9
Total trading account assets		4		807		—		811
Securities available for sale:
States and political subdivisions		—		15		—		15
Collateralized mortgage obligations		—		12,003		—		12,003
Other mortgage-backed securities		—		2,330		—		2,330
Other securities		11		—	$	17		28
Total securities available for sale		11		14,348		17		14,376
Other investments:
Principal investments:
Direct		—		—		66		66
Indirect		—		—		271		271
Total principal investments		—		—		337		337
Equity and mezzanine investments:
Direct		—		—		—		—
Indirect		—		—		9		9
Total equity and mezzanine investments		—		—		9		9
Other		—		—		4		4
Total other investments		—		—		350		350
Derivative assets:
Interest rate		—		1,097		22		1,119
Foreign exchange		120		10		—		130
Commodity		—		482		—		482
Credit		—		4		3		7
Derivative assets		120		1,593		25		1,738
Netting adjustments (a)		—		—		—		(945	)
Total derivative assets		120		1,593		25		793
Accrued income and other assets		—		2		—		2
Total assets on a recurring basis at fair value	$	135	$	16,750	$	392	$	16,332
LIABILITIES MEASURED ON A RECURRING BASIS
Bank notes and other short-term borrowings:
Short positions		—	$	677		—	$	677
Derivative liabilities:
Interest rate		—		656		—		656
Foreign exchange	$	102		10		—		112
Commodity		—		469		—		469
Credit		—		5		—		5
Derivative liabilities		102		1,140		—		1,242
Netting adjustments (a)		—		—		—		(566	)
Total derivative liabilities		102		1,140		—		676
Accrued expense and other liabilities		—		2		—		2
Total liabilities on a recurring basis at fair value	$	102	$	1,819		—	$	1,355

(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
Other		—		—		4		4
Total other investments		2		—		418		420
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	$	444	$	15,139
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.

September 30, 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		—	$	596		—	$	596
States and political subdivisions		—		24		—		24
Collateralized mortgage obligations		—		—		—		—
Other mortgage-backed securities		—		186		—		186
Other securities	$	13		145		—		158
Total trading account securities		13		951		—		964
Commercial loans		—		1		—		1
Total trading account assets		13		952		—		965
Securities available for sale:
States and political subdivisions		—		27		—		27
Collateralized mortgage obligations		—		10,009		—		10,009
Other mortgage-backed securities		—		2,177		—		2,177
Other securities		22		—	$	10		32
Total securities available for sale		22		12,213		10		12,245
Other investments:
Principal investments:
Direct		—		—		115		115
Indirect		—		—		353		353
Total principal investments		—		—		468		468
Equity and mezzanine investments:
Direct		—		—		—		—
Indirect		—		—		13		13
Total equity and mezzanine investments		—		—		13		13
Other		—		—		4		4
Total other investments		—		—		485		485
Derivative assets:
Interest rate		—		827		19		846
Foreign exchange		73		8		—		81
Commodity		—		95		—		95
Credit		—		1		3		4
Derivative assets		73		931		22		1,026
Netting adjustments (a)		—		—		—		(613	)
Total derivative assets		73		931		22		413
Accrued income and other assets		—		—		—		—
Total assets on a recurring basis at fair value	$	108	$	14,096	$	517	$	14,108
LIABILITIES MEASURED ON A RECURRING BASIS
Bank notes and other short-term borrowings:
Short positions	$	6	$	490		—	$	496
Derivative liabilities:
Interest rate		—		616		—		616
Foreign exchange		55		9		—		64
Commodity		—		89	$	1		90
Credit		—		7		—		7
Derivative liabilities		55		721		1		777
Netting adjustments (a)		—		—		—		(393	)
Total derivative liabilities		55		721		1		384
Accrued expense and other liabilities		—		—		—		—
Total liabilities on a recurring basis at fair value	$	61	$	1,211	$	1	$	880

(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 and nine months ended September 30, 2015, and September 30, 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
Nine months ended September 30, 2015
Securities available for sale
Other securities	$	10		—		$	7		—			—			—			—		$	17		—
Other investments
Principal investments
Direct		102	$	20	(b)		5	$	(61	)		—			—			—			66		—
Indirect		302		33	(b)		6		(70	)		—			—			—			271	$	(23	) (b)
Equity and mezzanine investments
Direct		—		2	(b)		—		(2	)		—			—			—			—		2	(b)
Indirect		10		6	(b)		—		(7	)		—			—			—			9		6	(b)
Other		4		—			—		—			—			—			—			4		—
Derivative instruments (a)
Interest rate		13		5	(c)		1		—			—		$	10	(e)	$	(7	) (e)		22		—
Commodity		—		—			—		—			—			—			—			—		—
Credit		2		(7	) (c)		—		8			—			—			—			3		—
Three months ended September 30, 2015
Securities available for sale
Other securities	$	10		—		$	7		—			—			—			—		$	17		—
Other investments
Principal investments
Direct		70	$	4	(b)		3	$	(11	)		—			—			—			66	$	3	(b)
Indirect		282		8	(b)		2		(21	)		—			—			—			271		(8	) (b)
Equity and mezzanine investments
Direct		—		—			—		—			—			—			—			—		—
Indirect		9		—			—		—			—			—			—			9		—
Other		4		—			—		—			—			—			—			4		—
Derivative instruments(a)
Interest rate		16		6	(c)		—		—			—		$	2	(e)	$	(2	) (e)		22		—
Commodity		—		—			—		—			—			—			—			—		—
Credit		3		(3	) (c)		—		8		$	(5	)		—			—			3		—

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
Nine months ended September 30, 2014
Securities available for sale
Other securities		—		—		$	10			—			—		—			—		$	10			—
Other investments
Principal investments
Direct	$	141	$	9	(b)		1		$	(36	)		—		—			—			115		$	18	(b)
Indirect		413		49	(b)		8			(117	)		—		—			—			353			8	(b)
Equity and mezzanine investments
Direct		—		—			—			—			—		—			—			—			—
Indirect		23		(1	) (b)		—			(9	)		—		—			—			13			(1	) (b)
Other		4		—			—			—			—		—			—			4			—
Derivative instruments (a)
Interest rate		25		2	(c)		3			(2	)		—	$	7	(e)	$	(16	) (e)		19			—
Commodity		—		—			(1	)		—			—		1	(e)		(1	) (e)		(1	)		—
Credit		3		(7	) (c)		—			—		$	7		—			—			3			—
Three months ended September 30, 2014
Securities available for sale
Other securities		—		—		$	10			—			—		—			—		$	10			—
Other investments
Principal investments
Direct	$	146	$	(2	) (b)		—		$	(29	)		—		—			—			115		$	(2	) (b)
Indirect		399		9	(b)		3			(58	)		—		—			—			353			(4	) (b)
Equity and mezzanine investments
Direct		—		—			—			—			—		—			—			—			—
Indirect		16		—			—			(3	)		—		—			—			13			—
Other		4		—			—			—			—		—			—			4			—
Derivative instruments(a)
Interest rate		20		—			—			—			—	$	2	(e)	$	(3	) (e)		19			—
Commodity		1		—			(1	)		—			—		—			(1	) (e)		(1	)		—
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 other and 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 nine-month periods ended September 30, 2015, and September 30, 2014.

Assets and Liabilities 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. There were no liabilities measured at fair value on a nonrecurring basis at September 30, 2015, December 31, 2014, and September 30, 2014. The following table presents our assets measured at fair value on a nonrecurring basis at September 30, 2015, December 31, 2014, and September 30, 2014:

	September 30, 2015
in millions	Level 1		Level 2		Level 3		Total
ASSETS MEASURED ON A NONRECURRING BASIS
Impaired loans		—		—	$	3	$	3
Loans held for sale (a)		—		—		—		—
Accrued income and other assets		—		—		6		6
Total assets on a nonrecurring basis at fair value		—		—	$	9	$	9
	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		—		—		7		7
Total assets on a nonrecurring basis at fair value		—		—	$	12	$	12
	September 30, 2014
in millions	Level 1		Level 2		Level 3		Total
ASSETS MEASURED ON A NONRECURRING BASIS
Impaired loans		—		—	$	6	$	6
Loans held for sale (a)		—		—		—		—
Accrued income and other assets		—		—		4		4
Total assets on a nonrecurring basis at fair value		—		—	$	10	$	10

(a) During the first nine months of 2015, we transferred $24 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 $10 million during the first nine months 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 September 30, 2015, December 31, 2014, or September 30, 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 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 September 30, 2015, December 31, 2014, and September 30, 2014, along with the valuation techniques used, are shown in the following table:

September 30, 2015 dollars in millions	Fair Value of Level 3 Assets		Valuation Technique	Significant Unobservable Input	Range (Weighted-Average)
Recurring
Other investments — principal investments — direct:	$	66	Individual analysis of the condition of each investment
Debt instruments				EBITDA multiple		N/A (5.40	)
Equity instruments of private companies				EBITDA multiple (where applicable)		5.40 - 6.50 (6.40	)
Equity instruments of public companies			Market approach	Discount		N/A (6.00	)
Nonrecurring
Impaired loans		3	Fair value of underlying collateral	Discount		00.00 - 50.00% (14.00%	)
Goodwill		1,060	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%	)
September 30, 2014 dollars in millions	Fair Value of Level 3 Assets		Valuation Technique	Significant Unobservable Input	Range (Weighted-Average)
Recurring
Other investments — principal investments — direct:	$	115	Individual analysis of the condition of each investment
Debt instruments				EBITDA multiple		6.00 - 6.40 (6.30	)
Equity instruments of private companies				EBITDA multiple (where applicable)		5.50 - 6.00 (5.70	)
				Revenue multiple (where applicable)		4.30 - 4.30 (4.30	)
Nonrecurring
Impaired loans		6	Fair value of underlying collateral	Discount		10.00 - 90.00% (24.00%	)
Goodwill		1,051	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 September 30, 2015, December 31, 2014, and September 30, 2014, are shown in the following table.

	September 30, 2015
			Fair Value
in millions	Carrying Amount		Level 1		Level 2		Level 3		Netting Adjustment			Total
ASSETS
Cash and short-term investments (a)	$	2,434	$	2,434		—		—		—		$	2,434
Trading account assets (b)		811		4	$	807		—		—			811
Securities available for sale (b)		14,376		11		14,348	$	17		—			14,376
Held-to-maturity securities (c)		4,936		—		4,940		—		—			4,940
Other investments (b)		691		—		—		691		—			691
Loans, net of allowance (d)		59,295		—		—		57,497		—			57,497
Loans held for sale (b)		916		—		—		916		—			916
Derivative assets (b)		793		120		1,593		25	$	(945	) (f)		793
LIABILITIES
Deposits with no stated maturity (a)	$	65,624		—	$	65,624		—		—		$	65,624
Time deposits (e)		5,449	$	427		5,075		—		—			5,502
Short-term borrowings (a)		1,084		—		677		—		—			677
Long-term debt (e)		10,310		10,146		463		—		—			10,609
Derivative liabilities (b)		676		102		1,140		—	$	(566	) (f)		676
	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		—		758		—			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
	September 30, 2014
			Fair Value
in millions	Carrying Amount		Level 1		Level 2		Level 3		Netting Adjustment			Total
ASSETS
Cash and short-term investments (a)	$	2,993	$	2,993		—		—		—		$	2,993
Trading account assets (b)		965		13	$	952		—		—			965
Securities available for sale (b)		12,245		22		12,213	$	10		—			12,245
Held-to-maturity securities (c)		4,997		—		4,911		—		—			4,911
Other investments (b)		822		—		—		822		—			822
Loans, net of allowance (d)		55,351		—		—		53,996		—			53,996
Loans held for sale (b)		784		—		—		784		—			784
Mortgage servicing assets (e)		308		—		—		370		—			370
Derivative assets (b)		413		73		931		22	$	(613	) (f)		413
LIABILITIES
Deposits with no stated maturity (a)	$	62,028		—	$	62,028		—		—		$	62,028
Time deposits (e)		6,428	$	556		5,937		—		—			6,493
Short-term borrowings (a)		1,653		6		1,647		—		—			1,653
Long-term debt (e)		7,172		6,854		1,202		—		—			8,056
Derivative liabilities (b)		384		55		721	$	1	$	(393	) (f)		384

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 nine months 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 loans in portfolio (recorded at carrying value with appropriate valuation reserves) and loans in portfolio held for sale (recorded at fair value). Prior periods included assets and liabilities (recorded at fair value) in the securitization trusts and loans in portfolio (recorded at fair value) that were outside the trusts. All of these loans were excluded from the table above as follows:

• Loans at carrying value, net of allowance, of $1.9 billion ($1.5 billion at fair value) at September 30, 2015, $2.1 billion ($1.8 billion at fair value) at December 31, 2014, and $2.1 billion ($1.9 billion at fair value) at September 30, 2014;

• Portfolio loans held for sale at fair value of $169 million at September 30, 2015; and

• Portfolio loans at fair value of $191 million at December 31, 2014, and $201 million at September 30, 2014.

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.

Residential real estate mortgage loans. Residential real estate mortgage loans with carrying amounts of $2.3 billion at September 30, 2015, and $2.2 billion at both December 31, 2014, and September 30, 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 - Post-Modification Outstanding Recorded Investment by Concession Type for Our Commercial Accruing and Nonaccruing TDRs (Parenthetical) (Detail) - USD ($) $ in Millions	Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014
Receivables [Abstract]
Additional funds to borrowers related to lending related commitments	$ 8	$ 5	$ 1

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Acquisitions and Discontinued Operations - Components of Assets of Education Lending Business (Parenthetical) (Detail) - USD ($)	Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Unearned income on loans	$ 645,000,000	$ 682,000,000	$ 685,000,000
Maximum [Member] | Education Lending [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Unearned income on loans	$ 1,000,000	$ 1,000,000	$ 1,000,000

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Loans and Loans Held for Sale

9 Months Ended

Sep. 30, 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	September 30, 2015		December 31, 2014		September 30, 2014
Commercial, financial and agricultural (a)	$	31,095	$	27,982	$	26,683
Commercial real estate:
Commercial mortgage		8,180		8,047		8,276
Construction		1,070		1,100		1,036
Total commercial real estate loans		9,250		9,147		9,312
Commercial lease financing (b)		3,929		4,252		4,135
Total commercial loans		44,274		41,381		40,130
Residential — prime loans:
Real estate — residential mortgage		2,267		2,225		2,213
Home equity:
Key Community Bank		10,282		10,366		10,380
Other		222		267		283
Total home equity loans		10,504		10,633		10,663
Total residential — prime loans		12,771		12,858		12,876
Consumer other — Key Community Bank		1,612		1,560		1,546
Credit cards		770		754		724
Consumer other:
Marine		620		779		828
Other		38		49		51
Total consumer other		658		828		879
Total consumer loans		15,811		16,000		16,025
Total loans (c) (d)	$	60,085	$	57,381	$	56,155

(a) Loan balances include $88 million, $88 million, and $90 million of commercial credit card balances at September 30, 2015, December 31, 2014, and September 30, 2014, respectively.

(b) Commercial lease financing includes receivables held as collateral for a secured borrowing of $162 million, $302 million, and $367 million at September 30, 2015, December 31, 2014, and September 30, 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 September 30, 2015, total loans include purchased loans of $119 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 September 30, 2014, total loans include purchased loans of $143 million, of which $14 million were PCI loans.

(d) Total loans exclude loans of $1.9 billion at September 30, 2015, $2.3 billion at December 31, 2014, and $2.4 billion at September 30, 2014, related to the discontinued operations of the education lending business. Additional information pertaining to these loans is provided in Note 11 (“Acquisitions and Discontinued Operations”).

Our loans held for sale are summarized as follows:

in millions	September 30, 2015		December 31, 2014		September 30, 2014
Commercial, financial and agricultural	$	74	$	63	$	30
Real estate — commercial mortgage		806		638		725
Commercial lease financing		10		15		10
Real estate — residential mortgage		26		18		19
Total loans held for sale (a)	$	916	$	734	$	784

(a) Total loans held for sale exclude loans held for sale of $169 million at September 30, 2015, related to the discontinued operations of the education lending business. Additional information pertaining to these loans is provided in Note 11.

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

in millions	September 30, 2015			December 31, 2014			September 30, 2014
Balance at beginning of the period	$	835		$	784		$	435
New originations		1,673			2,465			1,593
Transfers from (to) held to maturity, net		24			2			—
Loan sales		(1,616	)		(2,516	)		(1,243	)
Loan draws (payments), net		—			(1	)		(1	)
Balance at end of period (a)	$	916		$	734		$	784

(a) Total loans held for sale exclude loans held for sale of $169 million at September 30, 2015, related to the discontinued operations of the education lending business. Additional information pertaining to these loans is provided in Note 11.

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Asset Quality

9 Months Ended

Sep. 30, 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.

Nonperforming loans are loans for which we do not accrue interest income, and include commercial and consumer loans and leases, as well as current year TDRs and nonaccruing TDR loans from prior years. Nonperforming loans do not include loans held for sale or PCI loans. Nonperforming assets include nonperforming loans, nonperforming loans held for sale, OREO, and other nonperforming assets.

Our nonperforming assets and past due loans were as follows:

in millions	September 30, 2015		December 31, 2014		September 30, 2014
Total nonperforming loans (a), (b)	$	400	$	418	$	401
Nonperforming loans held for sale		—		—		—
OREO (c)		17		18		16
Other nonperforming assets		—		—		1
Total nonperforming assets	$	417	$	436	$	418
Nonperforming assets from discontinued operations—education lending (d)	$	8	$	11	$	9
Restructured loans included in nonperforming loans	$	159	$	157	$	137
Restructured loans with an allocated specific allowance (e)		71		82		115
Specifically allocated allowance for restructured loans (f)		29		34		30
Accruing loans past due 90 days or more	$	54	$	96	$	71
Accruing loans past due 30 through 89 days		271		235		340

(a) Loan balances exclude $12 million, $13 million, and $14 million of PCI loans at September 30, 2015, December 31, 2014, and September 30, 2014, respectively.

(b) Includes carrying value of consumer residential mortgage loans in the process of foreclosure of approximately $114 million at September 30, 2015.

(c) Includes carrying value of foreclosed residential real estate of approximately $13 million at September 30, 2015.

(d) Restructured loans of approximately $20 million, $17 million, and $16 million are included in discontinued operations at September 30, 2015, December 31, 2014, and September 30, 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 2012 acquisition date, 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 September 30, 2015, the outstanding unpaid principal balance and carrying value of all PCI loans was $18 million and $12 million, respectively. Changes in the accretable yield during the first nine months of 2015 included accretion and net reclassifications of less than $1 million, resulting in an ending balance of $5 million at September 30, 2015.

At September 30, 2015, the approximate carrying amount of our commercial nonperforming loans outstanding represented 74% of their original contractual amount owed, total nonperforming loans outstanding represented 79% of their original contractual amount owed, and nonperforming assets in total were carried at 79% of their original contractual amount owed.

At September 30, 2015, our 20 largest nonperforming loans totaled $112 million, representing 28% of total loans on nonperforming status. At September 30, 2014, our 20 largest nonperforming loans totaled $72 million, representing 18% of total loans on nonperforming status.

Nonperforming loans and loans held for sale reduced expected interest income by $12 million for the nine months ended September 30, 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 September 30, 2015, December 31, 2014, and September 30, 2014:

			Unpaid				Average
September 30, 2015	Recorded		Principal		Specific		Recorded
in millions	Investment (a)		Balance (b)		Allowance		Investment
With no related allowance recorded:
Commercial, financial and agricultural	$	30	$	54		—	$	19
Commercial real estate:
Commercial mortgage		9		12		—		10
Construction		5		5		—		6
Total commercial real estate loans		14		17		—		16
Total commercial loans		44		71		—		35
Real estate — residential mortgage		22		22		—		22
Home equity:
Key Community Bank		58		58		—		59
Other		2		2		—		2
Total home equity loans		60		60		—		61
Consumer other:
Marine		1		1		—		1
Total consumer other		1		1		—		1
Total consumer loans		83		83		—		84
Total loans with no related allowance recorded		127		154		—		119
With an allowance recorded:
Commercial, financial and agricultural		43		56	$	9		58
Commercial real estate:
Commercial mortgage		5		6		1		6
Total commercial real estate loans		5		6		1		6
Total commercial loans		48		62		10		64
Real estate — residential mortgage		33		33		5		33
Home equity:
Key Community Bank		54		54		17		53
Other		10		10		1		10
Total home equity loans		64		64		18		63
Consumer other — Key Community Bank		3		3		—		3
Credit cards		3		3		1		3
Consumer other:
Marine		38		38		2		39
Other		2		2		—		2
Total consumer other		40		40		2		41
Total consumer loans		143		143		26		143
Total loans with an allowance recorded		191		205		36		207
Total	$	318	$	359	$	36	$	326

(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.

			Unpaid				Average
December 31, 2014	Recorded		Principal		Specific		Recorded
in millions	Investment (a)		Balance (b)		Allowance		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.

			Unpaid				Average
September 30, 2014	Recorded		Principal		Specific		Recorded
in millions	Investment (a)		Balance (b)		Allowance		Investment
With no related allowance recorded:
Commercial, financial and agricultural	$	11	$	20		—	$	12
Commercial real estate:
Commercial mortgage		22		27		—		23
Construction		9		20		—		7
Total commercial real estate loans		31		47		—		30
Total commercial loans		42		67		—		42
Real estate — residential mortgage		36		36		—		30
Home equity:
Key Community Bank		64		64		—		65
Other		2		2		—		2
Total home equity loans		66		66		—		67
Consumer other:
Marine		2		2		—		2
Total consumer other		2		2		—		2
Total consumer loans		104		104		—		99
Total loans with no related allowance recorded		146		171		—		141
With an allowance recorded:
Commercial, financial and agricultural		20		21	$	7		12
Commercial real estate:
Commercial mortgage		7		7		2		5
Total commercial real estate loans		7		7		2		5
Total commercial loans		27		28		9		17
Real estate — residential mortgage		19		19		4		24
Home equity:
Key Community Bank		41		41		16		39
Other		11		11		2		11
Total home equity loans		52		52		18		50
Consumer other — Key Community Bank		3		3		—		3
Credit cards		3		3		1		3
Consumer other:
Marine		46		46		5		47
Other		2		2		1		2
Total consumer other		48		48		6		49
Total consumer loans		125		125		29		129
Total loans with an allowance recorded		152		153		38		146
Total	$	298	$	324	$	38	$	287

(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 each of the nine months ended September 30, 2015, and September 30, 2014, interest income recognized on the outstanding balances of accruing impaired loans totaled $5 million.

At September 30, 2015, aggregate restructured loans (accrual and nonaccrual loans) totaled $287 million, compared to $270 million at December 31, 2014, and $264 million at September 30, 2014. We added $87 million in restructured loans during the first nine months of 2015, which were partially offset by $70 million in payments and charge-offs.

A further breakdown of TDRs included in nonperforming loans by loan category as of September 30, 2015, follows:

			Pre-modification		Post-modification
			Outstanding		Outstanding
September 30, 2015	Number		Recorded		Recorded
dollars in millions	of Loans		Investment		Investment
LOAN TYPE
Nonperforming:
Commercial, financial and agricultural		12	$	56	$	50
Commercial real estate:
Real estate — commercial mortgage		11		30		7
Total commercial real estate loans		11		30		7
Total commercial loans		23		86		57
Real estate — residential mortgage		356		21		21
Home equity:
Key Community Bank		1,093		79		70
Other		122		3		3
Total home equity loans		1,215		82		73
Consumer other — Key Community Bank		26		1		1
Credit cards		314		2		2
Consumer other:
Marine		92		6		5
Other		16		—		—
Total consumer other		108		6		5
Total consumer loans		2,019		112		102
Total nonperforming TDRs		2,042		198		159
Prior-year accruing: (a)
Commercial, financial and agricultural		12		6		3
Commercial real estate:
Real estate — commercial mortgage		1		2		1
Total commercial real estate loans		1		2		1
Total commercial loans		13		8		4
Real estate — residential mortgage		499		36		36
Home equity:
Key Community Bank		794		49		42
Other		327		10		8
Total home equity loans		1,121		59		50
Consumer other — Key Community Bank		45		2		1
Credit cards		473		2		2
Consumer other:
Marine		398		59		33
Other		68		2		2
Total consumer other		466		61		35
Total consumer loans		2,604		160		124
Total prior-year accruing TDRs		2,617		168		128
Total TDRs		4,659	$	366	$	287

(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:

			Pre-modification		Post-modification
			Outstanding		Outstanding
December 31, 2014	Number		Recorded		Recorded
dollars in millions	of Loans		Investment		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 September 30, 2014, follows:

			Pre-modification		Post-modification
			Outstanding		Outstanding
September 30, 2014	Number		Recorded		Recorded
dollars in millions	of Loans		Investment		Investment
LOAN TYPE
Nonperforming:
Commercial, financial and agricultural		20	$	16	$	9
Commercial real estate:
Real estate — commercial mortgage		12		39		14
Real estate — construction		3		15		1
Total commercial real estate loans		15		54		15
Total commercial loans		35		70		24
Real estate — residential mortgage		464		28		28
Home equity:
Key Community Bank		1,125		70		64
Other		133		4		4
Total home equity loans		1,258		74		68
Consumer other — Key Community Bank		31		1		1
Credit cards		156		1		1
Consumer other:
Marine		211		16		14
Other		40		1		1
Total consumer other		251		17		15
Total consumer loans		2,160		121		113
Total nonperforming TDRs		2,195		191		137
Prior-year accruing: (a)
Commercial, financial and agricultural		25		6		3
Commercial real estate:
Real estate — commercial mortgage		4		18		8
Total commercial real estate loans		4		18		8
Total commercial loans		29		24		11
Real estate — residential mortgage		359		28		28
Home equity:
Key Community Bank		731		45		40
Other		325		10		8
Total home equity loans		1,056		55		48
Consumer other — Key Community Bank		53		2		2
Credit cards		564		4		3
Consumer other:
Marine		402		58		34
Other		72		2		1
Total consumer other		474		60		35
Total consumer loans		2,506		149		116
Total prior-year accruing TDRs		2,535		173		127
Total TDRs		4,730	$	364	$	264

(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.

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 three months ended September 30, 2015, there were no significant commercial loan TDRs, and 61 consumer loan TDRs with a combined recorded investment of $3 million that experienced payment defaults from modifications resulting in TDR status during 2014. During the three months ended September 30, 2014, there were no significant commercial loan TDRs, and 93 consumer loan TDRs with a combined recorded investment of $4 million that 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’ debts 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.

in millions	September 30, 2015		December 31, 2014		September 30, 2014
Commercial loans:
Interest rate reduction	$	58	$	13	$	24
Forgiveness of principal		2		2		5
Other		1		25		6
Total	$	61	$	40	$	35
Consumer loans:
Interest rate reduction	$	139	$	140	$	140
Forgiveness of principal		4		4		4
Other		83		86		85
Total	$	226	$	230	$	229
Total commercial and consumer TDRs (a)	$	287	$	270	$	264
Total loans		60,085		57,381		56,155

(a) Commitments outstanding to lend additional funds to borrowers whose loan terms have been modified in TDRs are $8 million, $5 million, and $1 million at September 30, 2015, December 31, 2014, and September 30, 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 September 30, 2015, approximately $59.3 billion, or 98.8%, of our total loans were current, compared to $56.6 billion, or 98.7%, at December 31, 2014, and $55.3 billion, or 98.5%, at September 30, 2014. At September 30, 2015, total past due loans and nonperforming loans of $724 million represented approximately 1.2% of total loans, compared to $749 million, or 1.3%, at December 31, 2014, and $813 million, or 1.5% at September 30, 2014.

The following aging analysis of past due and current loans as of September 30, 2015, December 31, 2014, and September 30, 2014, provides further information regarding Key’s credit exposure.

							90 and				Total Past
			30-59		60-89		Greater				Due and		Purchased
September 30, 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	$	30,901	$	58	$	30	$	17	$	89	$	194		—	$	31,095
Commercial real estate:
Commercial mortgage		8,127		18		7		5		23		53		—		8,180
Construction		1,060		1		—		—		9		10		—		1,070
Total commercial real estate loans		9,187		19		7		5		32		63		—		9,250
Commercial lease financing		3,875		29		3		1		21		54		—		3,929
Total commercial loans	$	43,963	$	106	$	40	$	23	$	142	$	311		—	$	44,274
Real estate — residential mortgage	$	2,171	$	11	$	4	$	3	$	67	$	85	$	11	$	2,267
Home equity:
Key Community Bank		10,027		49		20		11		174		254		1		10,282
Other		208		4		2		1		7		14		—		222
Total home equity loans		10,235		53		22		12		181		268		1		10,504
Consumer other — Key Community Bank		1,595		7		4		5		1		17		—		1,612
Credit cards		750		6		4		8		2		20		—		770
Consumer other:
Marine		601		10		2		1		6		19		—		620
Other		34		1		1		1		1		4		—		38
Total consumer other		635		11		3		2		7		23		—		658
Total consumer loans	$	15,386	$	88	$	37	$	30	$	258	$	413	$	12	$	15,811
Total loans	$	59,349	$	194	$	77	$	53	$	400	$	724	$	12	$	60,085
							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

							90 and				Total Past
			30-59		60-89		Greater				Due and		Purchased
September 30, 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	$	26,534	$	50	$	34	$	18	$	47	$	149		—	$	26,683
Commercial real estate:
Commercial mortgage		8,201		17		7		9		41		74	$	1		8,276
Construction		1,017		3		2		—		14		19		—		1,036
Total commercial real estate loans		9,218		20		9		9		55		93		1		9,312
Commercial lease financing		4,017		74		24		6		14		118		—		4,135
Total commercial loans	$	39,769	$	144	$	67	$	33	$	116	$	360	$	1	$	40,130
Real estate — residential mortgage	$	2,091	$	17	$	7	$	5	$	81	$	110	$	12	$	2,213
Home equity:
Key Community Bank		10,124		46		19		16		174		255		1		10,380
Other		266		4		2		1		10		17		—		283
Total home equity loans		10,390		50		21		17		184		272		1		10,663
Consumer other — Key Community Bank		1,528		7		3		6		2		18		—		1,546
Credit cards		705		5		4		9		1		19		—		724
Consumer other:
Marine		796		11		4		1		16		32		—		828
Other		49		1		—		—		1		2		—		51
Total consumer other		845		12		4		1		17		34		—		879
Total consumer loans	$	15,559	$	91	$	39	$	38	$	285	$	453	$	13	$	16,025
Total loans	$	55,328	$	235	$	106	$	71	$	401	$	813	$	14	$	56,155

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 $14 million of PCI loans at September 30, 2015, and September 30, 2014, respectively, based on bond rating, regulatory classification, and payment activity as of September 30, 2015, and September 30, 2014, are as follows:

Commercial Credit Exposure

Credit Risk Profile by Creditworthiness Category ^(a)

September 30,
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	$	384	$	342	$	3	$	2		—	$	1	$	501	$	528	$	888	$	873
A		1,439		1,147		4		2		—		—		478		596		1,921		1,745
BBB — BB		27,438		23,822		7,690		7,736	$	935		895		2,808		2,848		38,871		35,301
B		639		594		272		298		89		100		88		75		1,088		1,067
CCC — C		1,195		778		211		238		46		40		54		88		1,506		1,144
Total	$	31,095	$	26,683	$	8,180	$	8,276	$	1,070	$	1,036	$	3,929	$	4,135	$	44,274	$	40,130

(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)}

September 30,
in millions
	Residential — Prime
GRADE	2015		2014
Pass	$	12,496	$	12,576
Substandard		263		287
Total	$	12,759	$	12,863

Credit Risk Profile Based on Payment Activity ^(a)

September 30,	Consumer — Key Community Bank				Credit cards				Consumer — Marine				Consumer — Other				Total
in millions	2015		2014		2015		2014		2015		2014		2015		2014		2015		2014
Performing	$	1,611	$	1,544	$	768	$	723	$	614	$	812	$	37	$	50	$	3,030	$	3,129
Nonperforming		1		2		2		1		6		16		1		1		10		20
Total	$	1,612	$	1,546	$	770	$	724	$	620	$	828	$	38	$	51	$	3,040	$	3,149

(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 qualitative 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.

In the third quarter of 2015, we enhanced the approach used to determine the commercial reserve factors used in estimating the commercial ALLL, which had the effect of capturing certain elements in the commercial quantitative reserve component that had formerly been included in the commercial qualitative component. Under the enhanced methodology, we began utilizing more refined commercial estimated loss rates that represent cumulative losses over the estimated average time period from the onset of credit deterioration to the initial loss recorded for an individual loan. In addition, we began utilizing an enhanced framework to quantify commercial ALLL adjustments resulting from qualitative factors that may not be fully captured within the statistical analysis of incurred loss. The impact of these changes was largely neutral to the total ALLL at September 30, 2015. However, because the quantitative reserve is allocated to the business segments at a loan level, while the qualitative portion is allocated at the portfolio level, the impact of the methodology enhancements on the allowance for each portfolio caused the commercial portfolio ALLL to increase or decrease accordingly. The impact of the increases and decreases on the commercial portfolio ALLL was not significant.

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 September 30, 2015, represents our best estimate of the probable credit losses inherent in the loan portfolio at that date.

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. Consumer loans generally are charged off when payments are 120 days past due. Home equity and residential mortgage loans generally are charged down to net realizable value 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 September 30, 2015, the ALLL was $790 million, or 1.31% of loans, compared to $804 million, or 1.43% of loans, at September 30, 2014. At September 30, 2015, the ALLL was 197.5% of nonperforming loans, compared to 200.5% at September 30, 2014.

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

	Three months ended September 30,						Nine months ended September 30,
in millions	2015			2014			2015			2014
Balance at beginning of period — continuing operations	$	796		$	814		$	794		$	848
Charge-offs		(53	)		(49	)		(152	)		(162	)
Recoveries		12			18			47			81
Net loans and leases charged off		(41	)		(31	)		(105	)		(81	)
Provision for loan and lease losses from continuing operations		36			21			102			37
Foreign currency translation adjustment		(1	)		—			(1	)		—
Balance at end of period — continuing operations	$	790		$	804		$	790		$	804

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

in millions	December 31, 2014		Provision			Charge-offs			Recoveries		September 30, 2015
Commercial, financial and agricultural	$	391	$	93		$	(59	)	$	13	$	438
Real estate — commercial mortgage		148		(9	)		(2	)		2		139
Real estate — construction		28		(3	)		(1	)		1		25
Commercial lease financing		56		(13	)		(5	)		7		45
Total commercial loans		623		68			(67	)		23		647
Real estate — residential mortgage		23		(1	)		(4	)		1		19
Home equity:
Key Community Bank		66		4			(21	)		5		54
Other		5		(1	)		(4	)		4		4
Total home equity loans		71		3			(25	)		9		58
Consumer other — Key Community Bank		22		11			(18	)		5		20
Credit cards		33		20			(23	)		2		32
Consumer other:
Marine		21		—			(14	)		6		13
Other		1		—			(1	)		1		1
Total consumer other:		22		—			(15	)		7		14
Total consumer loans		171		33			(85	)		24		143
Total ALLL — continuing operations		794		101	(a)		(152	)		47		790
Discontinued operations		29		9			(25	)		10		23
Total ALLL — including discontinued operations	$	823	$	110		$	(177	)	$	57	$	813

(a) Includes a $1 million foreign currency translation adjustment. Excludes a provision for losses on lending-related commitments of $19 million.

in millions	December 31, 2013		Provision			Charge-offs			Recoveries		September 30, 2014
Commercial, financial and agricultural	$	362	$	32		$	(35	)	$	27	$	386
Real estate — commercial mortgage		165		(7	)		(3	)		4		159
Real estate — construction		32		(16	)		(4	)		16		28
Commercial lease financing		62		(9	)		(6	)		8		55
Total commercial loans		621		—			(48	)		55		628
Real estate — residential mortgage		37		(10	)		(7	)		2		22
Home equity:
Key Community Bank		84		9			(29	)		7		71
Other		11		(1	)		(8	)		4		6
Total home equity loans		95		8			(37	)		11		77
Consumer other — Key Community Bank		29		14			(23	)		4		24
Credit cards		34		24			(27	)		1		32
Consumer other:
Marine		29		1			(18	)		7		19
Other		3		—			(2	)		1		2
Total consumer other:		32		1			(20	)		8		21
Total consumer loans		227		37			(114	)		26		176
Total ALLL — continuing operations		848		37	(a)		(162	)		81		804
Discontinued operations		39		15			(34	)		11		31
Total ALLL — including discontinued operations	$	887	$	52		$	(196	)	$	92	$	835

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

Our ALLL from continuing operations decreased by $14 million, or 1.7%, from the third 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, 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 $318 million, with a corresponding allowance of $36 million at September 30, 2015. Loans outstanding collectively evaluated for impairment totaled $59.8 billion, with a corresponding allowance of $753 million at September 30, 2015. At September 30, 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 nine months ended September 30, 2015. At September 30, 2014, the loans outstanding individually evaluated for impairment totaled $299 million, with a corresponding allowance of $38 million. Loans outstanding collectively evaluated for impairment totaled $55.8 billion, with a corresponding allowance of $765 million at September 30, 2014. At September 30, 2014, PCI loans evaluated for impairment totaled $14 million, with a corresponding allowance of $1 million. There was no provision for loan and lease losses on these PCI loans during the nine months ended September 30, 2014.

A breakdown of the individual and collective ALLL and the corresponding loan balances as of September 30, 2015, follows:

	Allowance						Outstanding
	Individually		Collectively		Purchased				Individually		Collectively		Purchased
September 30, 2015	Evaluated for		Evaluated for		Credit				Evaluated for		Evaluated for		Credit
in millions	Impairment		Impairment		Impaired		Loans		Impairment		Impairment		Impaired
Commercial, financial and agricultural	$	9	$	429		—	$	31,095	$	72	$	31,023		—
Commercial real estate:
Commercial mortgage		1		138		—		8,180		15		8,165		—
Construction		—		25		—		1,070		5		1,065		—
Total commercial real estate loans		1		163		—		9,250		20		9,230		—
Commercial lease financing		—		45		—		3,929		—		3,929		—
Total commercial loans		10		637		—		44,274		92		44,182		—
Real estate — residential mortgage		5		13	$	1		2,267		56		2,200	$	11
Home equity:
Key Community Bank		17		37		—		10,282		113		10,168		1
Other		2		2		—		222		11		211		—
Total home equity loans		19		39		—		10,504		124		10,379		1
Consumer other — Key Community Bank		—		20		—		1,612		3		1,609		—
Credit cards		—		32		—		770		3		767		—
Consumer other:
Marine		2		11		—		620		38		582		—
Other		—		1		—		38		2		36		—
Total consumer other		2		12		—		658		40		618		—
Total consumer loans		26		116		1		15,811		226		15,573		12
Total ALLL — continuing operations		36		753		1		60,085		318		59,755		12
Discontinued operations		2		21		—		1,891		20		1,871		—
Total ALLL — including discontinued operations	$	38	$	774	$	1	$	61,976	$	338	$	61,626	$	12

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

	Allowance						Outstanding
	Individually		Collectively		Purchased					Individually		Collectively			Purchased
December 31, 2014	Evaluated for		Evaluated for		Credit					Evaluated for		Evaluated for			Credit
in millions	Impairment		Impairment		Impaired		Loans			Impairment		Impairment			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 September 30, 2014, follows:

	Allowance						Outstanding
	Individually		Collectively		Purchased					Individually		Collectively			Purchased
September 30, 2014	Evaluated for		Evaluated for		Credit					Evaluated for		Evaluated for			Credit
in millions	Impairment		Impairment		Impaired		Loans			Impairment		Impairment			Impaired
Commercial, financial and agricultural	$	7	$	379		—	$	26,683		$	31	$	26,652			—
Commercial real estate:
Commercial mortgage		2		157		—		8,276			29		8,246		$	1
Construction		—		28		—		1,036			10		1,026			—
Total commercial real estate loans		2		185		—		9,312			39		9,272			1
Commercial lease financing		—		55		—		4,135			—		4,135			—
Total commercial loans		9		619		—		40,130			70		40,059			1
Real estate — residential mortgage		4		17	$	1		2,213			55		2,146			12
Home equity:
Key Community Bank		16		55		—		10,380			105		10,274			1
Other		2		4		—		283			12		271			—
Total home equity loans		18		59		—		10,663			117		10,545			1
Consumer other — Key Community Bank		—		24		—		1,546			4		1,542			—
Credit cards		1		31		—		724			3		721			—
Consumer other:
Marine		5		14		—		828			48		780			—
Other		1		1		—		51			2		49			—
Total consumer other		6		15		—		879			50		829			—
Total consumer loans		29		146		1		16,025			229		15,783			13
Total ALLL — continuing operations		38		765		1		56,155			299		55,842			14
Discontinued operations		1		30		—		2,392	(a)		16		2,376	(a)		—
Total ALLL — including discontinued operations	$	39	$	795	$	1	$	58,547		$	315	$	58,218		$	14

(a) Amount includes $201 million 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 was $54 million at September 30, 2015. When combined with our ALLL, our total allowance for credit losses represented 1.40% of loans at September 30, 2015, compared to 1.49% at September 30, 2014.

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

	Three months ended September 30,					Nine months ended September 30,
in millions	2015		2014			2015		2014
Balance at beginning of period	$	45	$	37		$	35	$	37
Provision (credit) for losses on lending-related commitments		9		(2	)		19		(2	)
Balance at end of period	$	54	$	35		$	54	$	35

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Subsequent Event - Additional Information (Detail) $ / shares in Units, $ in Millions	Oct. 30, 2015 USD ($) $ / shares shares	Sep. 30, 2015 USD ($) Branches	Dec. 31, 2014 USD ($)	Sep. 30, 2014 USD ($)
Subsequent Event [Line Items]
Total assets		$ 95,422	$ 93,821	$ 89,784
Total deposits		$ 71,073	$ 71,998	$ 68,456
First Niagara Financial Group, Inc. [Member]
Subsequent Event [Line Items]
Number of branches | Branches		394
Total assets		$ 39,000
Total deposits		$ 29,000
Subsequent Event [Member]
Subsequent Event [Line Items]
Closing price of common shares | $ / shares	$ 13.38
Subsequent Event [Member] | First Niagara Financial Group, Inc. [Member]
Subsequent Event [Line Items]
Acquiree shares equivalent of acquirer common stock | shares	0.680
Cash payable per acquiree common stock | $ / shares	$ 2.30
Acquiree common stock shares outstanding fully diluted | shares	356,272,000
Total consideration to be paid	$ 4,100

XML

Securities

9 Months Ended

Sep. 30, 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 on the balance sheet 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 on the balance sheet 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.

	September 30, 2015
in millions	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
SECURITIES AVAILABLE FOR SALE
States and political subdivisions	$	14	$	1		—	$	15
Collateralized mortgage obligations		11,938		127	$	62		12,003
Other mortgage-backed securities		2,309		22		1		2,330
Other securities		27		1		—		28
Total securities available for sale	$	14,288	$	151	$	63	$	14,376
HELD-TO-MATURITY SECURITIES
Collateralized mortgage obligations	$	4,299	$	24		23	$	4,300
Other mortgage-backed securities		617		3		—		620
Other securities		20		—		—		20
Total held-to-maturity securities	$	4,936	$	27	$	23	$	4,940
	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
	September 30, 2014
in millions	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
SECURITIES AVAILABLE FOR SALE
States and political subdivisions	$	26	$	1		—	$	27
Collateralized mortgage obligations		10,096		109	$	196		10,009
Other mortgage-backed securities		2,156		24		3		2,177
Other securities		28		4		—		32
Total securities available for sale	$	12,306	$	138	$	199	$	12,245
HELD-TO-MATURITY SECURITIES
Collateralized mortgage obligations	$	4,977	$	10	$	96	$	4,891
Other securities		20		—		—		20
Total held-to-maturity securities	$	4,997	$	10	$	96	$	4,911

The following table summarizes our securities that were in an unrealized loss position as of September 30, 2015, December 31, 2014, and September 30, 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
September 30, 2015
Securities available for sale:
Collateralized mortgage obligations	$	770	$	3	$	3,348	$	59	$	4,118	$	62
Other mortgage-backed securities		420		1		—		—		420		1
Other securities (a)		2		—		3		—		5		—
Held-to-maturity:
Collateralized mortgage obligations		214		1		1,355		22		1,569		23
Other mortgage-backed securities		110		—		—		—		110		—
Other securities (b)		4		—		—		—		4		—
Total temporarily impaired securities	$	1,520	$	5	$	4,706	$	81	$	6,226	$	86
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 (a)		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
September 30, 2014
Securities available for sale:
Collateralized mortgage obligations	$	605	$	7	$	4,379	$	189	$	4,984	$	196
Other mortgage-backed securities		811		1		81		2		892		3
Other securities (a)		1		—		2		—		3		—
Held-to-maturity:
Collateralized mortgage obligations		1,288		13		2,342		83		3,630		96
Total temporarily impaired securities	$	2,705	$	21	$	6,804	$	274	$	9,509	$	295

(a) Gross unrealized losses totaled less than $1 million for other securities available for sale as of September 30, 2015, December 31, 2014, and September 30, 2014.

(b) Gross unrealized losses totaled less than $1 million for other securities held-to-maturity as of September 30, 2015.

At September 30, 2015, we had $62 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 4.2 years at September 30, 2015. We also had $1 million of gross unrealized losses related to 17 other mortgage-backed securities positions, which had a weighted-average maturity of 5.2 years at September 30, 2015. Because 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 as other-than-temporarily impaired 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 did not have any impairment losses recognized in earnings for the three months ended September 30, 2015.

Three months ended September 30, 2015
in millions
Balance at June 30, 2015	$	4
Impairment recognized in earnings		—
Balance at September 30, 2015	$	4

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

Nine months ended September 30, 2015
in millions
Realized gains		—
Realized losses	$	1
Net securities gains (losses)	$	(1	)

At September 30, 2015, securities available for sale and held-to-maturity securities totaling $6.5 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 Available for Sale				Held-to-Maturity Securities
September 30, 2015 in millions	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less	$	297	$	302	$	9	$	9
Due after one through five years		12,659		12,735		4,310		4,311
Due after five through ten years		1,329		1,336		617		620
Due after ten years		3		3		—		—
Total	$	14,288	$	14,376	$	4,936	$	4,940

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Asset Quality - Credit Risk Profile Based on Payment Activity (Detail) - USD ($) $ in Millions	Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014
Financing Receivable, Recorded Investment [Line Items]
Credit risk profile based on payment	$ 60,085	$ 57,381	$ 56,155
Consumer Other - Key Community Bank [Member]
Financing Receivable, Recorded Investment [Line Items]
Credit risk profile based on payment	1,612	1,560	1,546
Consumer Other - Key Community Bank [Member] | Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Credit risk profile based on payment	1,611		1,544
Consumer Other - Key Community Bank [Member] | Nonperforming [Member]
Financing Receivable, Recorded Investment [Line Items]
Credit risk profile based on payment	1		2
Consumer Credit Card Financing Receivable [Member]
Financing Receivable, Recorded Investment [Line Items]
Credit risk profile based on payment	770	754	724
Consumer Credit Card Financing Receivable [Member] | Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Credit risk profile based on payment	768		723
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	620	779	828
Consumer Marine [Member] | Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Credit risk profile based on payment	614		812
Consumer Marine [Member] | Nonperforming [Member]
Financing Receivable, Recorded Investment [Line Items]
Credit risk profile based on payment	6		16
Consumer Others [Member]
Financing Receivable, Recorded Investment [Line Items]
Credit risk profile based on payment	38	49	51
Consumer Others [Member] | Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Credit risk profile based on payment	37		50
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	15,811	$ 16,000	16,025
Consumer Loans [Member] | Credit Risk Profile [Member]
Financing Receivable, Recorded Investment [Line Items]
Credit risk profile based on payment	3,040		3,149
Consumer Loans [Member] | Performing [Member] | Credit Risk Profile [Member]
Financing Receivable, Recorded Investment [Line Items]
Credit risk profile based on payment	3,030		3,129
Consumer Loans [Member] | Nonperforming [Member] | Credit Risk Profile [Member]
Financing Receivable, Recorded Investment [Line Items]
Credit risk profile based on payment	$ 10		$ 20

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Acquisitions and Discontinued Operations - Combined Results of Discontinued Operations (Parenthetical) (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 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	$ 7	$ 9	$ 18	$ 26

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Securities - Cumulative Credit Portion of Impairments on Debt Securities (Detail) $ in Millions	3 Months Ended
	Sep. 30, 2015 USD ($)
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

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Asset Quality - Changes in Allowance for Loan and Lease Losses by Loan Category (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance			$ 823	$ 887
Provision			110	52
Charge-offs			(177)	(196)
Recoveries			57	92
Ending balance	$ 813	$ 835	813	835
Continuing Operations [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance	796	814	794	848
Provision			101	37
Charge-offs	(53)	(49)	(152)	(162)
Recoveries	12	18	47	81
Ending balance	790	804	790	804
Continuing Operations [Member] | Commercial, Financial and Agricultural [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance			391	362
Provision			93	32
Charge-offs			(59)	(35)
Recoveries			13	27
Ending balance	438	386	438	386
Continuing Operations [Member] | Commercial Real Estate: Commercial Mortgage [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance			148	165
Provision			(9)	(7)
Charge-offs			(2)	(3)
Recoveries			2	4
Ending balance	139	159	139	159
Continuing Operations [Member] | Commercial Real Estate Construction Financing Receivable [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance			28	32
Provision			(3)	(16)
Charge-offs			(1)	(4)
Recoveries			1	16
Ending balance	25	28	25	28
Continuing Operations [Member] | Commercial Lease Financing [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance			56	62
Provision			(13)	(9)
Charge-offs			(5)	(6)
Recoveries			7	8
Ending balance	45	55	45	55
Continuing Operations [Member] | Commercial Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance			623	621
Provision			68
Charge-offs			(67)	(48)
Recoveries			23	55
Ending balance	647	628	647	628
Continuing Operations [Member] | Real Estate - Residential Mortgage [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance			23	37
Provision			(1)	(10)
Charge-offs			(4)	(7)
Recoveries			1	2
Ending balance	19	22	19	22
Continuing Operations [Member] | Home Equity: Key Community Bank [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance			66	84
Provision			4	9
Charge-offs			(21)	(29)
Recoveries			5	7
Ending balance	54	71	54	71
Continuing Operations [Member] | Home Equity: Other [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance			5	11
Provision			(1)	(1)
Charge-offs			(4)	(8)
Recoveries			4	4
Ending balance	4	6	4	6
Continuing Operations [Member] | Home Equity Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance			71	95
Provision			3	8
Charge-offs			(25)	(37)
Recoveries			9	11
Ending balance	58	77	58	77
Continuing Operations [Member] | Consumer Other - Key Community Bank [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance			22	29
Provision			11	14
Charge-offs			(18)	(23)
Recoveries			5	4
Ending balance	20	24	20	24
Continuing Operations [Member] | Credit Cards [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance			33	34
Provision			20	24
Charge-offs			(23)	(27)
Recoveries			2	1
Ending balance	32	32	32	32
Continuing Operations [Member] | Consumer Marine [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance			21	29
Provision				1
Charge-offs			(14)	(18)
Recoveries			6	7
Ending balance	13	19	13	19
Continuing Operations [Member] | Consumer Others [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance			1	3
Charge-offs			(1)	(2)
Recoveries			1	1
Ending balance	1	2	1	2
Continuing Operations [Member] | Consumer Other - Key Corporate Bank [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance			22	32
Provision				1
Charge-offs			(15)	(20)
Recoveries			7	8
Ending balance	14	21	14	21
Continuing Operations [Member] | Consumer Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance			171	227
Provision			33	37
Charge-offs			(85)	(114)
Recoveries			24	26
Ending balance	143	176	143	176
Discontinued Operations [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance			29	39
Provision			9	15
Charge-offs				(34)
Charge-offs			(25)
Recoveries			10	11
Ending balance	$ 23	$ 31	$ 23	$ 31

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Mortgage Servicing Assets - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Servicing Asset [Abstract]
Contractual fee income from servicing commercial mortgage loans	$ 11	$ 9	$ 33	$ 35

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Asset Quality - Credit Risk Profile by Regulatory Classifications (Detail) - Residential - Prime, Financing Receivable [Member] - USD ($) $ in Millions	Sep. 30, 2015	Sep. 30, 2014
Financing Receivable, Recorded Investment [Line Items]
Total	$ 12,759	$ 12,863
Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	12,496	12,576
Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	$ 263	$ 287

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Derivatives and Hedging Activities - After-Tax Change in AOCI Resulting from Cash Flow Hedges (Detail) $ in Millions	9 Months Ended
	Sep. 30, 2015 USD ($)
Derivative Instruments and Hedging Activities Disclosure [Abstract]
December 31, 2014	$ (8)
2015 Hedging Activity	107
Reclassification of Gains to Net Income	(44)
September 30, 2015	$ 55

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Trust Preferred Securities Issued by Unconsolidated Subsidiaries - Summary of Trust Preferred Securities, Common Stock and Related Debentures (Parenthetical) (Detail) - USD ($) $ in Millions	9 Months Ended		12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Trust preferred securities adjustments related to fair value hedges	$ 72	$ 57	$ 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	$ 72	$ 57	$ 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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Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 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 September 30, 2015, December 31, 2014, and September 30, 2014.

September 30, 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		—	$	694		—	$	694
States and political subdivisions		—		35		—		35
Collateralized mortgage obligations		—		—		—		—
Other mortgage-backed securities		—		46		—		46
Other securities	$	4		23		—		27
Total trading account securities		4		798		—		802
Commercial loans		—		9		—		9
Total trading account assets		4		807		—		811
Securities available for sale:
States and political subdivisions		—		15		—		15
Collateralized mortgage obligations		—		12,003		—		12,003
Other mortgage-backed securities		—		2,330		—		2,330
Other securities		11		—	$	17		28
Total securities available for sale		11		14,348		17		14,376
Other investments:
Principal investments:
Direct		—		—		66		66
Indirect		—		—		271		271
Total principal investments		—		—		337		337
Equity and mezzanine investments:
Direct		—		—		—		—
Indirect		—		—		9		9
Total equity and mezzanine investments		—		—		9		9
Other		—		—		4		4
Total other investments		—		—		350		350
Derivative assets:
Interest rate		—		1,097		22		1,119
Foreign exchange		120		10		—		130
Commodity		—		482		—		482
Credit		—		4		3		7
Derivative assets		120		1,593		25		1,738
Netting adjustments (a)		—		—		—		(945	)
Total derivative assets		120		1,593		25		793
Accrued income and other assets		—		2		—		2
Total assets on a recurring basis at fair value	$	135	$	16,750	$	392	$	16,332
LIABILITIES MEASURED ON A RECURRING BASIS
Bank notes and other short-term borrowings:
Short positions		—	$	677		—	$	677
Derivative liabilities:
Interest rate		—		656		—		656
Foreign exchange	$	102		10		—		112
Commodity		—		469		—		469
Credit		—		5		—		5
Derivative liabilities		102		1,140		—		1,242
Netting adjustments (a)		—		—		—		(566	)
Total derivative liabilities		102		1,140		—		676
Accrued expense and other liabilities		—		2		—		2
Total liabilities on a recurring basis at fair value	$	102	$	1,819		—	$	1,355

(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
Other		—		—		4		4
Total other investments		2		—		418		420
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	$	444	$	15,139
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.

September 30, 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		—	$	596		—	$	596
States and political subdivisions		—		24		—		24
Collateralized mortgage obligations		—		—		—		—
Other mortgage-backed securities		—		186		—		186
Other securities	$	13		145		—		158
Total trading account securities		13		951		—		964
Commercial loans		—		1		—		1
Total trading account assets		13		952		—		965
Securities available for sale:
States and political subdivisions		—		27		—		27
Collateralized mortgage obligations		—		10,009		—		10,009
Other mortgage-backed securities		—		2,177		—		2,177
Other securities		22		—	$	10		32
Total securities available for sale		22		12,213		10		12,245
Other investments:
Principal investments:
Direct		—		—		115		115
Indirect		—		—		353		353
Total principal investments		—		—		468		468
Equity and mezzanine investments:
Direct		—		—		—		—
Indirect		—		—		13		13
Total equity and mezzanine investments		—		—		13		13
Other		—		—		4		4
Total other investments		—		—		485		485
Derivative assets:
Interest rate		—		827		19		846
Foreign exchange		73		8		—		81
Commodity		—		95		—		95
Credit		—		1		3		4
Derivative assets		73		931		22		1,026
Netting adjustments (a)		—		—		—		(613	)
Total derivative assets		73		931		22		413
Accrued income and other assets		—		—		—		—
Total assets on a recurring basis at fair value	$	108	$	14,096	$	517	$	14,108
LIABILITIES MEASURED ON A RECURRING BASIS
Bank notes and other short-term borrowings:
Short positions	$	6	$	490		—	$	496
Derivative liabilities:
Interest rate		—		616		—		616
Foreign exchange		55		9		—		64
Commodity		—		89	$	1		90
Credit		—		7		—		7
Derivative liabilities		55		721		1		777
Netting adjustments (a)		—		—		—		(393	)
Total derivative liabilities		55		721		1		384
Accrued expense and other liabilities		—		—		—		—
Total liabilities on a recurring basis at fair value	$	61	$	1,211	$	1	$	880

(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 and nine months ended September 30, 2015, and September 30, 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
Nine months ended September 30, 2015
Securities available for sale
Other securities	$	10		—		$	7		—			—			—			—		$	17		—
Other investments
Principal investments
Direct		102	$	20	(b)		5	$	(61	)		—			—			—			66		—
Indirect		302		33	(b)		6		(70	)		—			—			—			271	$	(23	) (b)
Equity and mezzanine investments
Direct		—		2	(b)		—		(2	)		—			—			—			—		2	(b)
Indirect		10		6	(b)		—		(7	)		—			—			—			9		6	(b)
Other		4		—			—		—			—			—			—			4		—
Derivative instruments (a)
Interest rate		13		5	(c)		1		—			—		$	10	(e)	$	(7	) (e)		22		—
Commodity		—		—			—		—			—			—			—			—		—
Credit		2		(7	) (c)		—		8			—			—			—			3		—
Three months ended September 30, 2015
Securities available for sale
Other securities	$	10		—		$	7		—			—			—			—		$	17		—
Other investments
Principal investments
Direct		70	$	4	(b)		3	$	(11	)		—			—			—			66	$	3	(b)
Indirect		282		8	(b)		2		(21	)		—			—			—			271		(8	) (b)
Equity and mezzanine investments
Direct		—		—			—		—			—			—			—			—		—
Indirect		9		—			—		—			—			—			—			9		—
Other		4		—			—		—			—			—			—			4		—
Derivative instruments(a)
Interest rate		16		6	(c)		—		—			—		$	2	(e)	$	(2	) (e)		22		—
Commodity		—		—			—		—			—			—			—			—		—
Credit		3		(3	) (c)		—		8		$	(5	)		—			—			3		—

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
Nine months ended September 30, 2014
Securities available for sale
Other securities		—		—		$	10			—			—		—			—		$	10			—
Other investments
Principal investments
Direct	$	141	$	9	(b)		1		$	(36	)		—		—			—			115		$	18	(b)
Indirect		413		49	(b)		8			(117	)		—		—			—			353			8	(b)
Equity and mezzanine investments
Direct		—		—			—			—			—		—			—			—			—
Indirect		23		(1	) (b)		—			(9	)		—		—			—			13			(1	) (b)
Other		4		—			—			—			—		—			—			4			—
Derivative instruments (a)
Interest rate		25		2	(c)		3			(2	)		—	$	7	(e)	$	(16	) (e)		19			—
Commodity		—		—			(1	)		—			—		1	(e)		(1	) (e)		(1	)		—
Credit		3		(7	) (c)		—			—		$	7		—			—			3			—
Three months ended September 30, 2014
Securities available for sale
Other securities		—		—		$	10			—			—		—			—		$	10			—
Other investments
Principal investments
Direct	$	146	$	(2	) (b)		—		$	(29	)		—		—			—			115		$	(2	) (b)
Indirect		399		9	(b)		3			(58	)		—		—			—			353			(4	) (b)
Equity and mezzanine investments
Direct		—		—			—			—			—		—			—			—			—
Indirect		16		—			—			(3	)		—		—			—			13			—
Other		4		—			—			—			—		—			—			4			—
Derivative instruments(a)
Interest rate		20		—			—			—			—	$	2	(e)	$	(3	) (e)		19			—
Commodity		1		—			(1	)		—			—		—			(1	) (e)		(1	)		—
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 other and 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 nine-month periods ended September 30, 2015, and September 30, 2014.

Assets and Liabilities Measured at Fair Value on Nonrecurring Basis

Assets and Liabilities 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. There were no liabilities measured at fair value on a nonrecurring basis at September 30, 2015, December 31, 2014, and September 30, 2014. The following table presents our assets measured at fair value on a nonrecurring basis at September 30, 2015, December 31, 2014, and September 30, 2014:

	September 30, 2015
in millions	Level 1		Level 2		Level 3		Total
ASSETS MEASURED ON A NONRECURRING BASIS
Impaired loans		—		—	$	3	$	3
Loans held for sale (a)		—		—		—		—
Accrued income and other assets		—		—		6		6
Total assets on a nonrecurring basis at fair value		—		—	$	9	$	9
	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		—		—		7		7
Total assets on a nonrecurring basis at fair value		—		—	$	12	$	12
	September 30, 2014
in millions	Level 1		Level 2		Level 3		Total
ASSETS MEASURED ON A NONRECURRING BASIS
Impaired loans		—		—	$	6	$	6
Loans held for sale (a)		—		—		—		—
Accrued income and other assets		—		—		4		4
Total assets on a nonrecurring basis at fair value		—		—	$	10	$	10

(a) During the first nine months of 2015, we transferred $24 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 $10 million during the first nine months 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 September 30, 2015, December 31, 2014, and September 30, 2014, along with the valuation techniques used, are shown in the following table:

September 30, 2015 dollars in millions	Fair Value of Level 3 Assets		Valuation Technique	Significant Unobservable Input	Range (Weighted-Average)
Recurring
Other investments — principal investments — direct:	$	66	Individual analysis of the condition of each investment
Debt instruments				EBITDA multiple		N/A (5.40	)
Equity instruments of private companies				EBITDA multiple (where applicable)		5.40 - 6.50 (6.40	)
Equity instruments of public companies			Market approach	Discount		N/A (6.00	)
Nonrecurring
Impaired loans		3	Fair value of underlying collateral	Discount		00.00 - 50.00% (14.00%	)
Goodwill		1,060	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%	)
September 30, 2014 dollars in millions	Fair Value of Level 3 Assets		Valuation Technique	Significant Unobservable Input	Range (Weighted-Average)
Recurring
Other investments — principal investments — direct:	$	115	Individual analysis of the condition of each investment
Debt instruments				EBITDA multiple		6.00 - 6.40 (6.30	)
Equity instruments of private companies				EBITDA multiple (where applicable)		5.50 - 6.00 (5.70	)
				Revenue multiple (where applicable)		4.30 - 4.30 (4.30	)
Nonrecurring
Impaired loans		6	Fair value of underlying collateral	Discount		10.00 - 90.00% (24.00%	)
Goodwill		1,051	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 September 30, 2015, December 31, 2014, and September 30, 2014, are shown in the following table.

	September 30, 2015
			Fair Value
in millions	Carrying Amount		Level 1		Level 2		Level 3		Netting Adjustment			Total
ASSETS
Cash and short-term investments (a)	$	2,434	$	2,434		—		—		—		$	2,434
Trading account assets (b)		811		4	$	807		—		—			811
Securities available for sale (b)		14,376		11		14,348	$	17		—			14,376
Held-to-maturity securities (c)		4,936		—		4,940		—		—			4,940
Other investments (b)		691		—		—		691		—			691
Loans, net of allowance (d)		59,295		—		—		57,497		—			57,497
Loans held for sale (b)		916		—		—		916		—			916
Derivative assets (b)		793		120		1,593		25	$	(945	) (f)		793
LIABILITIES
Deposits with no stated maturity (a)	$	65,624		—	$	65,624		—		—		$	65,624
Time deposits (e)		5,449	$	427		5,075		—		—			5,502
Short-term borrowings (a)		1,084		—		677		—		—			677
Long-term debt (e)		10,310		10,146		463		—		—			10,609
Derivative liabilities (b)		676		102		1,140		—	$	(566	) (f)		676
	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		—		758		—			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
	September 30, 2014
			Fair Value
in millions	Carrying Amount		Level 1		Level 2		Level 3		Netting Adjustment			Total
ASSETS
Cash and short-term investments (a)	$	2,993	$	2,993		—		—		—		$	2,993
Trading account assets (b)		965		13	$	952		—		—			965
Securities available for sale (b)		12,245		22		12,213	$	10		—			12,245
Held-to-maturity securities (c)		4,997		—		4,911		—		—			4,911
Other investments (b)		822		—		—		822		—			822
Loans, net of allowance (d)		55,351		—		—		53,996		—			53,996
Loans held for sale (b)		784		—		—		784		—			784
Mortgage servicing assets (e)		308		—		—		370		—			370
Derivative assets (b)		413		73		931		22	$	(613	) (f)		413
LIABILITIES
Deposits with no stated maturity (a)	$	62,028		—	$	62,028		—		—		$	62,028
Time deposits (e)		6,428	$	556		5,937		—		—			6,493
Short-term borrowings (a)		1,653		6		1,647		—		—			1,653
Long-term debt (e)		7,172		6,854		1,202		—		—			8,056
Derivative liabilities (b)		384		55		721	$	1	$	(393	) (f)		384

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 September 30, 2015. We did not provide any financial support to investees related to our direct and indirect investments for the nine months ended September 30, 2015, and September 30, 2014.

September 30, 2015			Unfunded
in millions	Fair Value		Commitments
INVESTMENT TYPE
Indirect investments
Passive funds (a)	$	9	$	1
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.

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 September 30, 2015, as well as financial support provided for the three and nine months ended September 30, 2015, and September 30, 2014:

					Financial support provided
					Three months ended September 30,								Nine months ended September 30,
	September 30, 2015				2015				2014				2015				2014
	Fair		Unfunded		Funded		Funded		Funded		Funded		Funded		Funded		Funded		Funded
in millions	Value		Commitments		Commitments		Other		Commitments		Other		Commitments		Other		Commitments		Other
INVESTMENT TYPE
Direct investments (a)	$	66		—		—	$	—		—		—		—	$	2		—	$	2
Indirect investments (b)		271	$	53	$	2		—	$	3		—	$	7		—	$	10		—
Total	$	337	$	53	$	2	$	—	$	3		—	$	7	$	2	$	10	$	2

(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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Loans and Loans Held for Sale - Loans Held for Sale (Parenthetical) (Detail) $ in Millions	Sep. 30, 2015 USD ($)
Loans Receivables [Abstract]
Loan securitization trust VIEs	$ 169

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Acquisitions and Discontinued Operations

9 Months Ended

Sep. 30, 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 was accounted for as a business combination, expanded our corporate and investment banking business unit and added 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. During the third quarter of 2015, goodwill increased $3 million to account for a tax item associated with the business combination. 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 was 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 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, the loans at fair value in portfolio, and the loans held for sale 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, the loans in portfolio, and the loans held for sale 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 interest expense related to the loans and securities are included as components 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 September 30,						Nine months ended September 30,
in millions	2015			2014			2015		2014
Net interest income	$	9		$	21		$	29	$	67
Provision for credit losses		7			5			9		15
Net interest income after provision for credit losses		2			16			20		52
Noninterest income		(2	)		(41	)		1		(111	)
Noninterest expense		5			7			13		19
Income (loss) before income taxes		(5	)		(32	)		8		(78	)
Income taxes		(2	)		(12	)		3		(29	)
Income (loss) from discontinued operations, net of taxes (a)	$	(3	)	$	(20	)	$	5	$	(49	)

(a) Includes after-tax charges of $7 million and $9 million for the three-month periods ended September 30, 2015, and September 30, 2014, respectively, and $18 million and $26 million for the nine-month periods ended September 30, 2015, and September 30, 2014, respectively, determined by applying a matched funds transfer pricing methodology to the liabilities assumed necessary to support the discontinued operations.

The discontinued assets of our education lending business included on the balance sheet are as follows. There were no discontinued liabilities for the periods presented below.

	September 30,		December 31,		September 30,
in millions	2015		2014		2014
Held-to-maturity securities	$	1	$	1	$	1
Portfolio loans at fair value		—		191		201
Loans, net of unearned income (a)		1,891		2,104		2,174
Less: Allowance for loan and lease losses		23		29		31
Net loans		1,868		2,266		2,344
Portfolio loans held for sale at fair value		169		—		—
Accrued income and other assets		33		38		40
Total assets	$	2,071	$	2,305	$	2,385

(a) At September 30, 2015, December 31, 2014, and September 30, 2014, unearned income was less than $1 million.

The discontinued education lending business consisted of loans in portfolio (recorded at fair value) and loans in portfolio (recorded at carrying value with appropriate valuation reserves). As of June 30, 2015, we decided to sell the portfolio loans that are recorded at fair value, and these loans were reclassified to portfolio loans held for sale at fair value within discontinued operations. 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 September 30, 2015, education loans included 1,845 TDRs with a recorded investment of approximately $20 million (pre-modification and post-modification). A specifically allocated allowance of $2 million was assigned to these loans as of September 30, 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 qualifying special purpose entity, 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 had 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 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 September 30, 2015, there were loans held for sale with a contractual amount of $173 million that were previously purchased from three of the outstanding securitizations trusts pursuant to the legal terms of these particular trusts. These loans were transferred to held for sale in June 2015 and continue to be accounted for at fair value. As of September 30, 2015, the portfolio loans held for sale were valued based on indicative bids to sell the loans. These portfolio loans were previously valued using an internal discounted cash flow model, which was affected by assumptions for defaults, loss severity, discount rates, and prepayments. These 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 held for sale accounted for at fair value had a value of $169 million at September 30, 2015. On October 29, 2015, $117 million of these loans were sold. Portfolio loans accounted for at fair value had a value of $191 million at December 31, 2014, and $201 million at September 30, 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 previously determined the fair value of our student loans held in portfolio that were accounted for at fair value and for our loans and securities in our education loan securitization trusts. Corporate Treasury provided 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 reviewed all significant inputs and assumptions and approved the resulting fair values.

The Working Group reviewed actual performance trends of the loans on a quarterly basis and used statistical analysis and qualitative measures to determine assumptions for future performance. Predictive models that incorporate delinquency and charge-off trends along with economic outlooks assisted the Working Group to forecast future defaults. The Working Group used 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 had 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 were accounted for at fair value was based on a discounted cash flow analysis using a model purchased from a third party and maintained by Corporate Treasury. The valuation process began with loan-level data that was 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 were developed using a financial model that reflected certain assumptions for defaults, recoveries, status changes, and prepayments. A net earnings stream, taking into account cost of funding, was calculated and discounted back to the measurement date using an appropriate discount rate. This resulting amount was used to determine the present value of the loans, which represented 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 reconciled 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 considered loan and securities run-off, yields, future default and recovery changes, and the timing of cash releases to us from the trusts. We also performed back-testing to compare expected defaults to actual experience; the impact of future defaults could significantly affect the fair value of these loans and securities over time. In addition, our internal model validation group periodically performed 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 portfolio loans held for sale and portfolio loans accounted for at fair value at September 30, 2015, December 31, 2014, and September 30, 2014:

September 30, 2015 dollars in millions	Fair Value of Level 3 Assets and Liabilities		Valuation Technique		Significant Unobservable Input		Range
Portfolio loans held for sale accounted for at fair value	$	169		Market approach		Indicative bids		84.50 - 104.00%
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%)
September 30, 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	$	201		Discounted cash flow		Prepayment speed		5.00 - 5.80% (5.25%)
						Loss severity		2.00 - 77.00% (25.71%)
						Discount rate		3.60 - 3.90% (3.69%)
						Default rate		.93 - 1.91% (1.24%)

The following table shows the principal and fair value amounts for our portfolio loans held for sale at fair value, portfolio loans at carrying value, and portfolio loans at fair value at September 30, 2015, December 31, 2014, and September 30, 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.

	September 30, 2015				December 31, 2014				September 30, 2014
in millions	Principal		Fair Value		Principal		Fair Value		Principal		Fair Value
Portfolio loans held for sale at fair value
Accruing loans past due 90 days or more	$	5	$	4		—		—		—		—
Portfolio loans at carrying value
Accruing loans past due 90 days or more	$	26		N/A	$	29		N/A	$	31		N/A
Loans placed on nonaccrual status		8		N/A		11		N/A		9		N/A
Portfolio loans at fair value
Accruing loans past due 90 days or more		—		—	$	5	$	5	$	5	$	5

The following table shows the portfolio loans held for sale at fair value and portfolio loans at fair value and their related contractual amounts at September 30, 2015, December 31, 2014, and September 30, 2014.

	September 30, 2015				December 31, 2014				September 30, 2014
in millions	Contractual Amount		Fair Value		Contractual Amount		Fair Value		Contractual Amount		Fair Value
ASSETS
Portfolio loans held for sale	$	173	$	169		—		—		—		—
Portfolio loans		—		—	$	192	$	191	$	199	$	201

The following tables present the assets of the portfolio loans held for sale and portfolio loans measured at fair value on a recurring basis at September 30, 2015, December 31, 2014, and September 30, 2014.

September 30, 2015 in millions	Level 1		Level 2		Level 3		Total
ASSETS MEASURED ON A RECURRING BASIS
Portfolio loans held for sale		—		—	$	169	$	169
Total assets on a recurring basis at fair value		—		—	$	169	$	169

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

September 30, 2014 in millions	Level 1		Level 2		Level 3		Total
ASSETS MEASURED ON A RECURRING BASIS
Portfolio loans		—		—	$	201	$	201
Total assets on a recurring basis at fair value		—		—	$	201	$	201

The following table shows the change in the fair values of the Level 3 portfolio loans held for sale, portfolio loans, and consolidated education loan securitization trusts for the three- and nine-month periods ended September 30, 2015, and September 30, 2014.

	Portfolio
	Student			Portfolio			Trust			Trust						Trust
	Loans Held			Student			Student			Other			Trust			Other
in millions	For Sale			Loans			Loans			Assets			Securities			Liabilities
Balance at December 31, 2014		—		$	191			—			—			—			—
Gains (losses) recognized in earnings (a)	$	(4	)		1			—			—			—			—
Settlements		(6	)		(13	)		—			—			—			—
Loans transferred to held for sale		179			(179	)		—			—			—			—
Balance at September 30, 2015 (b)	$	169			—			—			—			—			—
Balance at June 30, 2015	$	179			—			—			—			—			—
Gains (losses) recognized in earnings (a)		(4	)		—			—			—			—			—
Settlements		(6	)		—			—			—			—			—
Balance at September 30, 2015 (b)	$	169			—			—			—			—			—
Balance at December 31, 2013		—		$	147		$	1,960		$	20		$	1,834		$	20
Gains (losses) recognized in earnings (a)		—			(4	)		(34	)		—			33			—
Purchases		—			74			—			—			—			—
Sales		—			—			(74	)		—			—			—
Settlements		—			(16	)		(202	)		(1	)		(278	)		(3	)
Transfers out due to deconsolidation		—			—			(1,650	)		(19	)		(1,589	)		(17	)
Balance at September 30, 2014 (b)		—		$	201			—			—			—			—
Balance at June 30, 2014		—		$	209		$	1,711		$	19		$	1,660		$	17
Gains (losses) recognized in earnings (a)		—			—			—			—			—			—
Purchases		—			—			—			—			—			—
Sales		—			—			—			—			—			—
Settlements		—			(8	)		(61	)		—			(71	)		—
Transfers out due to deconsolidation		—			—			(1,650	)		(19	)		(1,589	)		(17	)
Balance at September 30, 2014 (b)		—		$	201			—			—			—			—

(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- and nine-month periods ended September 30, 2015. There were no issuances or transfers into Level 3 for the three- and nine-month periods ended September 30, 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 September 30,				Nine months ended September 30,
in millions	2015		2014		2015		2014
Net interest income		—	$	5		—	$	7
Noninterest income		—		—		—		10
Noninterest expense		—		—		—		—
Income (loss) before income taxes		—		5		—		17
Income taxes		—		2		—		7
Income (loss) from discontinued operations, net of taxes		—	$	3		—	$	10

The discontinued assets of Victory included on the balance sheet are as follows. There were no discontinued liabilities for the periods presented below.

	September 30,		December 31,		September 30,
in millions	2015		2014		2014
Seller note (a)		—		—	$	17
Total assets		—		—	$	17

(a) At September 30, 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 September 30,				Nine months ended September 30,
in millions	2015		2014		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:

	September 30,		December 31,		September 30,
in millions	2015		2014		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 September 30,						Nine months ended September 30,
in millions	2015			2014			2015		2014
Net interest income	$	9		$	26		$	29	$	74
Provision for credit losses		7			5			9		15
Net interest income after provision for credit losses		2			21			20		59
Noninterest income		(2	)		(41	)		1		(101	)
Noninterest expense		5			7			13		23
Income (loss) before income taxes		(5	)		(27	)		8		(65	)
Income taxes		(2	)		(10	)		3		(24	)
Income (loss) from discontinued operations, net of taxes (a)	$	(3	)	$	(17	)	$	5	$	(41	)

(a) Includes after-tax charges of $7 million and $9 million for the three-month periods ended September 30, 2015, and September 30, 2014, respectively, and $18 million and $26 million for the nine-month periods ended September 30, 2015, and September 30, 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:

	September 30,		December 31,		September 30,
in millions	2015		2014		2014
Cash and due from banks	$	15	$	19	$	19
Held-to-maturity securities		1		1		1
Seller note		—		—		17
Portfolio loans at fair value		—		191		201
Loans, net of unearned income (a)		1,891		2,104		2,174
Less: Allowance for loan and lease losses		23		29		31
Net loans		1,868		2,266		2,344
Portfolio loans held for sale at fair value		169		—		—
Accrued income and other assets		33		38		40
Total assets	$	2,086	$	2,324	$	2,421
Accrued expense and other liabilities		—	$	3	$	3
Total liabilities		—	$	3	$	3

(a) At September 30, 2015, December 31, 2014, and September 30, 2014, unearned income was less than $1 million.

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Acquisitions and Discontinued Operations - Change in Fair Values of Level 3 Portfolio Loans Held for Sale, Portfolio Loans, and Consolidated Education Loan Securitization Trusts (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Loans held for sale	$ 0	$ 0	$ 0	$ 0	$ 0
Discontinued Operations [Member] | Education Lending [Member] | Portfolio Student Loans Held For Sale [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Beginning Balance	179,000,000
Gains (losses) recognized in earnings	(4,000,000)		(4,000,000)
Settlements	(6,000,000)		(6,000,000)
Loans held for sale	179,000,000		179,000,000
Ending Balance	169,000,000		169,000,000
Discontinued Operations [Member] | Education Lending [Member] | Portfolio Student Loans [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Beginning Balance		209,000,000	191,000,000	147,000,000
Gains (losses) recognized in earnings			1,000,000	(4,000,000)
Purchases				74,000,000
Settlements		(8,000,000)	(13,000,000)	(16,000,000)
Loans held for sale	$ (179,000,000)		$ (179,000,000)
Ending Balance		201,000,000		201,000,000
Discontinued Operations [Member] | Education Lending [Member] | Trust Student Loans [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Beginning Balance		1,711,000,000		1,960,000,000
Gains (losses) recognized in earnings				(34,000,000)
Sales				(74,000,000)
Settlements		(61,000,000)		(202,000,000)
Transfers out due to deconsolidation		(1,650,000,000)		(1,650,000,000)
Discontinued Operations [Member] | Education Lending [Member] | Trust Other Assets [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Beginning Balance		19,000,000		20,000,000
Settlements				(1,000,000)
Transfers out due to deconsolidation		(19,000,000)		(19,000,000)
Discontinued Operations [Member] | Education Lending [Member] | Trust Other Liabilities [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Beginning Balance		17,000,000		20,000,000
Settlements				(3,000,000)
Transfers out due to deconsolidation		(17,000,000)		(17,000,000)
Discontinued Operations [Member] | Trust Securities [Member] | Education Lending [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Beginning Balance		1,660,000,000		1,834,000,000
Gains (losses) recognized in earnings				33,000,000
Settlements		(71,000,000)		(278,000,000)
Transfers out due to deconsolidation		$ (1,589,000,000)		$ (1,589,000,000)

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Accumulated Other Comprehensive Income

9 Months Ended

Sep. 30, 2015

Equity [Abstract]

Accumulated Other Comprehensive Income

16. Accumulated Other Comprehensive Income

Our changes in AOCI for the three and nine months ended September 30, 2015, and September 30, 2014, are as follows:

	Unrealized gains			Unrealized gains			Foreign currency			Net pension and
	(losses) on securities			(losses) on derivative			translation			postretirement
in millions	available for sale			financial instruments			adjustment			benefit costs			Total
Balance at December 31, 2014	$	(4	)	$	(8	)	$	22		$	(366	)	$	(356	)
Other comprehensive income before reclassification, net of income taxes		57			107			(19	)		(38	)		107
Amounts reclassified from accumulated other comprehensive income, net of income taxes (a)		1			(44	)		1			19			(23	)
Net current-period other comprehensive income, net of income taxes		58			63			(18	)		(19	)		84
Balance at September 30, 2015		54		$	55		$	4		$	(385	)	$	(272	)
Balance at June 30, 2015		—		$	7		$	9		$	(361	)	$	(345	)
Other comprehensive income before reclassification, net of income taxes	$	54			65			(5	)		(38	)		76
Amounts reclassified from accumulated other comprehensive income, net of income taxes (a)		—			(17	)		—			14			(3	)
Net current-period other comprehensive income, net of income taxes		54			48			(5	)		(24	)		73
Balance at September 30, 2015		54		$	55		$	4		$	(385	)	$	(272	)
Balance at December 31, 2013	$	(63	)	$	(11	)	$	42		$	(320	)	$	(352	)
Other comprehensive income before reclassification, net of income taxes		24			25			(9	)		—			40
Amounts reclassified from accumulated other comprehensive income, net of income taxes (a)		—			(29	)		(3	)		19			(13	)
Net current-period other comprehensive income, net of income taxes		24			(4	)		(12	)		19			27
Balance at September 30, 2014	$	(39	)	$	(15	)	$	30		$	(301	)	$	(325	)
Balance at June 30, 2014	$	(6	)	$	(7	)	$	39		$	(315	)	$	(289	)
Other comprehensive income before reclassification, net of income taxes		(33	)		3			(9	)		—			(39	)
Amounts reclassified from accumulated other comprehensive income, net of income taxes (a)		—			(11	)		—			14			3
Net current-period other comprehensive income, net of income taxes		(33	)		(8	)		(9	)		14			(36	)
Balance at September 30, 2014	$	(39	)	$	(15	)	$	30		$	(301	)	$	(325	)

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

Our reclassifications out of AOCI for the three and nine months ended September 30, 2015, and September 30, 2014, are as follows:

Nine months ended September 30, 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 available for sale securities
Realized losses	$	(1	)	Other income
		(1	)	Income (loss) from continuing operations before income taxes
		—		Income taxes
	$	(1	)	Income (loss) from continuing operations
Unrealized gains (losses) on derivative financial instruments
Interest rate	$	73		Interest income — Loans
Interest rate		(3	)	Interest expense — Long term debt
		70		Income (loss) from continuing operations before income taxes
		26		Income taxes
	$	44		Income (loss) from continuing operations
Foreign currency translation adjustment
	$	(2	)	Corporate services income
		(2	)	Income (loss) from continuing operations before income taxes
		(1	)	Income taxes
	$	(1	)	Income (loss) from continuing operations
Net pension and postretirement benefit costs
Amortization of losses	$	(13	)	Personnel expense
Settlement loss		(19	)	Personnel expense
Amortization of unrecognized prior service cost		1		Personnel expense
		(31	)	Income (loss) from continuing operations before income taxes
		(12	)	Income taxes
	$	(19	)	Income (loss) from continuing operations
Three months ended September 30, 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	$	28		Interest income — Loans
Interest rate		(1	)	Interest expense — Long term debt
		27		Income (loss) from continuing operations before income taxes
		10		Income taxes
	$	17		Income (loss) from continuing operations
Foreign currency translation adjustment
	$	(1	)	Corporate services income
		(1	)	Income (loss) from continuing operations before income taxes
		(1	)	Income taxes
		—		Income (loss) from continuing operations
Net pension and postretirement benefit costs
Amortization of losses	$	(4	)	Personnel expense
Settlement loss		(19	)	Personnel expense
		(23	)	Income (loss) from continuing operations before income taxes
		(9	)	Income taxes
	$	(14	)	Income (loss) from continuing operations

Nine months ended September 30, 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	$	49		Interest income — Loans
Interest rate		(3	)	Interest expense — Long term debt
		46		Income (loss) from continuing operations before income taxes
		17		Income taxes
	$	29		Income (loss) from continuing operations
Foreign currency translation adjustment
	$	3		Corporate services income
		3		Income (loss) from continuing operations before income taxes
		—		Income taxes
	$	3		Income (loss) from continuing operations
Net pension and postretirement benefit costs
Amortization of losses	$	(12	)	Personnel expense
Settlement loss		(20	)	Personnel expense
		(32	)	Income (loss) from continuing operations before income taxes
		(13	)	Income taxes
	$	(19	)	Income (loss) from continuing operations
Three months ended September 30, 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	$	18		Interest income — Loans
Interest rate		(1	)	Interest expense — Long term debt
Foreign exchange contracts		1		Other income
		18		Income (loss) from continuing operations before income taxes
		7		Income taxes
	$	11		Income (loss) from continuing operations
Net pension and postretirement benefit costs
Amortization of losses	$	(4	)	Personnel expense
Settlement loss		(20	)	Personnel expense
		(24	)	Income (loss) from continuing operations before income taxes
		(10	)	Income taxes
	$	(14	)	Income (loss) from continuing operations

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Derivatives and Hedging Activities - Fair Value of Derivative Assets by Type (Detail) - USD ($) $ in Millions	Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014
Credit Derivatives [Line Items]
Derivative assets before collateral	$ 1,187	$ 1,127	$ 643
Less: Related collateral	394	518	230
Total derivative assets	793	609	413
Interest Rate [Member]
Credit Derivatives [Line Items]
Derivative assets before collateral	807	607	556
Foreign Exchange [Member]
Credit Derivatives [Line Items]
Derivative assets before collateral	48	41	39
Commodity [Member]
Credit Derivatives [Line Items]
Derivative assets before collateral	328	478	47
Credit [Member]
Credit Derivatives [Line Items]
Derivative assets before collateral	$ 4	$ 1	$ 1

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Loans and Loans Held for Sale - Loans by Category (Parenthetical) (Detail) - USD ($) $ in Millions	9 Months Ended		12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial, financial and agricultural	$ 31,095	$ 26,683	$ 27,982
Commercial lease financing includes receivables held as collateral for secured borrowing	162	367	302
Purchased loans	119	143	138
Education Lending [Member] | Discontinued Operations [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	1,900	2,400	2,300
Commercial Credit Card [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial, financial and agricultural	88	90	88
PCI Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Purchased loans	$ 12	$ 14	$ 13

XML

Income Taxes - Additional Information (Detail) - USD ($)	3 Months Ended		9 Months Ended	12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Dec. 31, 2014
Income Taxes [Line Items]
Total income tax expense (benefit), rate	24.40%	24.10%
Combined federal and state statutory tax rate			37.20%
Federal deferred tax asset	$ 190,000,000	$ 153,000,000	$ 190,000,000	$ 174,000,000
State deferred tax asset	26,000,000	19,000,000	26,000,000	20,000,000
Valuation allowance		1,000,000
Reduction in deferred tax assets	2,800,000	$ 1,000,000		1,000,000
Maximum [Member]
Income Taxes [Line Items]
Valuation allowance	$ 1,000,000		$ 1,000,000	$ 1,000,000

XML

Employee Benefits (Tables)

9 Months Ended

Sep. 30, 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 September 30,						Nine months ended September 30,
in millions	2015			2014			2015			2014
Interest cost on PBO	$	10		$	12		$	30		$	36
Expected return on plan assets		(14	)		(17	)		(42	)		(51	)
Amortization of losses		4			4			13			12
Settlement loss		19			20			19			20
Net pension cost	$	19		$	19		$	20		$	17

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 September 30,						Nine months ended September 30,
in millions	2015			2014			2015			2014
Interest cost on APBO	$	1		$	1		$	3		$	3
Expected return on plan assets		(1	)		(1	)		(2	)		(3	)
Amortization of unrecognized prior service credit		—			—			(1	)		—
Net postretirement benefit cost		—			—			—			—

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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	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Income taxes	$ (2)	$ (10)	$ 3	$ (24)
Income (loss) from discontinued operations, net of taxes	(3)	(17)	5	(41)
Discontinued Operations [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net interest income	9	26	29	74
Provision for credit losses	7	5	9	15
Net interest income after provision for credit losses	2	21	20	59
Noninterest income	(2)	(41)	1	(101)
Noninterest expense	5	7	13	23
Income (loss) before income taxes	(5)	(27)	8	(65)
Income taxes	(2)	(10)	3	(24)
Income (loss) from discontinued operations, net of taxes	(3)	(17)	5	(41)
Education Lending [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Income (loss) before income taxes	(5)	(32)	8	(78)
Income taxes	(2)	(12)	3	(29)
Income (loss) from discontinued operations, net of taxes	(3)	(20)	5	(49)
Education Lending [Member] | Discontinued Operations [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net interest income	9	21	29	67
Provision for credit losses	7	5	9	15
Net interest income after provision for credit losses	2	16	20	52
Noninterest income	(2)	(41)	1	(111)
Noninterest expense	$ 5	$ 7	$ 13	$ 19

XML

Consolidated Statements of Income (Unaudited) (Parenthetical) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Income Statement [Abstract]
Net tax effect on income (loss) from discontinued operations	$ (2,000,000)	$ (10,000,000)	$ 3,000,000	$ (24,000,000)
Net securities gains (losses)	(1,000,000)	1,000,000	$ (1,000,000)
Impairment losses related to securities	$ 0	$ 0

XML

Derivatives and Hedging Activities - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2015 USD ($) Counterparty CreditRatings	Dec. 31, 2014 USD ($)	Sep. 30, 2014 USD ($)
Credit Derivatives [Line Items]
Derivative assets after effects of bilateral collateral and master netting agreements	$ 157,000,000
Derivative liabilities after effects of bilateral collateral and master netting agreements	34,000,000
Derivative assets not designated as hedging instruments after effects of bilateral collateral and master netting agreements, and a reserve for potential future losses	636,000,000
Derivative liabilities not designated as hedging instruments after effects of bilateral collateral and master netting agreements, and a reserve for potential future losses	710,000,000
Reclassify of after-tax net losses on derivative instruments from AOCI	$ 37,000,000
Length of time hedge in cash flow hedge	12 months
Reclassification of net losses related to terminated cash flow hedges from AOCI to income	$ 1,000,000
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	$ 35,000,000
Cash collateral netted against derivative assets	394,000,000	$ 518,000,000	$ 230,000,000
Collateral netted against derivative liabilities	14,000,000	26,000,000	10,000,000
Cash collateral not netted transferred with clearing organization	112,000,000	56,000,000	51,000,000
Cash collateral not netted transferred from clearing organization	105,000,000	0	0
Gross exposure on derivatives, after taking into account the effects of bilateral collateral and master netting agreements	952,000,000
Net exposure on derivatives, after taking into account, the effects of bilateral collateral and master netting agreements	303,000,000
Over-collateralization on derivatives to broker-dealers and banks, after the application of master netting agreements and collateral	172,000,000
Additional collateral held in the form of securities	131,000,000
Default reserve associated with uncollateralized contracts	8,000,000
Gross exposure on derivatives after taking into account effects of master netting agreements	525,000,000
Net exposure on derivatives with clients after application of master netting agreements collateral and related reserve	490,000,000
Letter of credit	$ 30,000,000
Number of counter parties guaranteed | Counterparty	1
Key Corp [Member]
Credit Derivatives [Line Items]
Net liability position totaled	$ 8,000,000
Cash and securities collateral posted	8,000,000
Key Corp [Member] | Maximum [Member]
Credit Derivatives [Line Items]
Additional collateral amount	0	$ 1,000,000	$ 3,000,000
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	249,000,000
Derivative assets included in net liability position	216,000,000
Derivative liabilities included in net liability position	465,000,000
Cash and securities collateral posted	$ 232,000,000
Number of ratings above noninvestment | CreditRatings	4
KeyBank (consolidated) [Member] | Maximum [Member] | Unsecured Debt [Member]
Credit Derivatives [Line Items]
Payments to terminate contracts	$ 7,000,000

XML

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
OPERATING ACTIVITIES
Net income (loss)	$ 691	$ 653
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Provision for credit losses	121	35
Provision (credit) for losses on LIHTC guaranteed funds		(6)
Depreciation, amortization and accretion expense, net	176	185
Increase in cash surrender value of corporate-owned life insurance	(75)	(73)
Stock-based compensation expense	47	31
FDIC reimbursement (payments), net of FDIC expense	(1)	1
Deferred income taxes (benefit)	(70)	(29)
Proceeds from sales of loans held for sale	5,362	2,832
Originations of loans held for sale, net of repayments	(5,428)	(2,951)
Net losses (gains) on sales of loans held for sale	(75)	(59)
Net losses (gains) from principal investing	(51)	(60)
Net losses (gains) and writedown on OREO	2	3
Net losses (gains) on leased equipment	(8)	(35)
Net securities losses (gains)	1
Net losses (gains) on sales of fixed assets	6	5
Gain on sale of Victory		(10)
Loss on sale of residual interests and deconsolidation of securitization trusts		40
Net decrease (increase) in trading account assets	(61)	(227)
Other operating activities, net	(388)	130
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES	249	465
INVESTING ACTIVITIES
Cash received (used) in acquisitions, net of cash acquired		(113)
Proceeds from sale of residual interests		57
Proceeds from sale of Victory		10
Net decrease (increase) in short-term investments, excluding acquisitions	2,305	3,285
Purchases of securities available for sale	(3,314)	(1,993)
Proceeds from sales of securities available for sale	11
Proceeds from prepayments and maturities of securities available for sale	2,357	2,123
Proceeds from prepayments and maturities of held-to-maturity securities	846	628
Purchases of held-to-maturity securities	(770)	(869)
Purchases of other investments	(24)	(42)
Proceeds from sales of other investments	107	266
Proceeds from prepayments and maturities of other investments	2	3
Net decrease (increase) in loans, excluding acquisitions, sales and transfers	(3,061)	(1,936)
Proceeds from sales of portfolio loans	89	91
Proceeds from corporate-owned life insurance	38	24
Purchases of premises, equipment, and software	(40)	(53)
Proceeds from sales of premises and equipment	1	1
Proceeds from sales of OREO	16	13
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES	(1,437)	1,495
FINANCING ACTIVITIES
Net increase (decrease) in deposits, excluding acquisitions	(925)	(806)
Net increase (decrease) in short-term borrowings	86	(224)
Net proceeds from issuance of long-term debt	4,054	648
Payments on long-term debt	(1,582)	(1,034)
Repurchase of common shares	(448)	(355)
Net proceeds from reissuance of common shares	19	23
Cash dividends paid	(199)	(178)
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES	1,005	(1,926)
NET INCREASE (DECREASE) IN CASH AND DUE FROM BANKS	(183)	34
CASH AND DUE FROM BANKS AT BEGINNING OF PERIOD	653	617
CASH AND DUE FROM BANKS AT END OF PERIOD	470	651
Additional disclosures relative to cash flows:
Interest paid	221	250
Income taxes paid (refunded)	173	109
Noncash items:
Reduction of secured borrowing and related collateral	132	78
Loans transferred to portfolio from held for sale	1	10
Loans transferred to held for sale from portfolio	41	5
Loans transferred to OREO	$ 16	16
LIHTC guaranteed funds put		7
Assets acquired		35
Liabilities assumed		$ 22

XML

Asset Quality - Breakdown of Nonperforming TDRs by Loans Category (Detail) $ in Millions	9 Months Ended		12 Months Ended
	Sep. 30, 2015 USD ($) SecurityLoan	Sep. 30, 2014 USD ($) SecurityLoan	Dec. 31, 2014 USD ($) SecurityLoan
Financing Receivable, Modifications [Line Items]
Number of Loans | SecurityLoan	4,659	4,730	4,776
Pre-modification Outstanding Recorded Investment	$ 366	$ 364	$ 349
Post-modification Outstanding Recorded Investment	$ 287	$ 264	$ 270
Nonperforming [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans | SecurityLoan	2,042	2,195	2,391
Pre-modification Outstanding Recorded Investment	$ 198	$ 191	$ 200
Post-modification Outstanding Recorded Investment	$ 159	$ 137	$ 157
Prior-Year Accruing [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans | SecurityLoan	2,617	2,535	2,385
Pre-modification Outstanding Recorded Investment	$ 168	$ 173	$ 149
Post-modification Outstanding Recorded Investment	$ 128	$ 127	$ 113
Commercial, Financial and Agricultural [Member] | Nonperforming [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans | SecurityLoan	12	20	14
Pre-modification Outstanding Recorded Investment	$ 56	$ 16	$ 25
Post-modification Outstanding Recorded Investment	$ 50	$ 9	$ 23
Commercial, Financial and Agricultural [Member] | Prior-Year Accruing [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans | SecurityLoan	12	25	20
Pre-modification Outstanding Recorded Investment	$ 6	$ 6	$ 6
Post-modification Outstanding Recorded Investment	$ 3	$ 3	$ 3
Commercial Real Estate: Commercial Mortgage [Member] | Nonperforming [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans | SecurityLoan	11	12	10
Pre-modification Outstanding Recorded Investment	$ 30	$ 39	$ 38
Post-modification Outstanding Recorded Investment	$ 7	$ 14	$ 13
Commercial Real Estate: Commercial Mortgage [Member] | Prior-Year Accruing [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans | SecurityLoan	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 | SecurityLoan		3	1
Pre-modification Outstanding Recorded Investment		$ 15	$ 5
Post-modification Outstanding Recorded Investment		$ 1
Commercial Real Estate Loans [Member] | Nonperforming [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans | SecurityLoan	11	15	11
Pre-modification Outstanding Recorded Investment	$ 30	$ 54	$ 43
Post-modification Outstanding Recorded Investment	$ 7	$ 15	$ 13
Commercial Real Estate Loans [Member] | Prior-Year Accruing [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans | SecurityLoan	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 | SecurityLoan	23	35	25
Pre-modification Outstanding Recorded Investment	$ 86	$ 70	$ 68
Post-modification Outstanding Recorded Investment	$ 57	$ 24	$ 36
Commercial Loans [Member] | Prior-Year Accruing [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans | SecurityLoan	13	29	21
Pre-modification Outstanding Recorded Investment	$ 8	$ 24	$ 8
Post-modification Outstanding Recorded Investment	$ 4	$ 11	$ 4
Real Estate - Residential Mortgage [Member] | Nonperforming [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans | SecurityLoan	356	464	453
Pre-modification Outstanding Recorded Investment	$ 21	$ 28	$ 27
Post-modification Outstanding Recorded Investment	$ 21	$ 28	$ 27
Real Estate - Residential Mortgage [Member] | Prior-Year Accruing [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans | SecurityLoan	499	359	381
Pre-modification Outstanding Recorded Investment	$ 36	$ 28	$ 29
Post-modification Outstanding Recorded Investment	$ 36	$ 28	$ 29
Home Equity: Key Community Bank [Member] | Nonperforming [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans | SecurityLoan	1,093	1,125	1,184
Pre-modification Outstanding Recorded Investment	$ 79	$ 70	$ 79
Post-modification Outstanding Recorded Investment	$ 70	$ 64	$ 72
Home Equity: Key Community Bank [Member] | Prior-Year Accruing [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans | SecurityLoan	794	731	674
Pre-modification Outstanding Recorded Investment	$ 49	$ 45	$ 41
Post-modification Outstanding Recorded Investment	$ 42	$ 40	$ 36
Home Equity: Other [Member] | Nonperforming [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans | SecurityLoan	122	133	158
Pre-modification Outstanding Recorded Investment	$ 3	$ 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 | SecurityLoan	327	325	310
Pre-modification Outstanding Recorded Investment	$ 10	$ 10	$ 9
Post-modification Outstanding Recorded Investment	$ 8	$ 8	$ 8
Home Equity Loans [Member] | Nonperforming [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans | SecurityLoan	1,215	1,258	1,342
Pre-modification Outstanding Recorded Investment	$ 82	$ 74	$ 83
Post-modification Outstanding Recorded Investment	$ 73	$ 68	$ 76
Home Equity Loans [Member] | Prior-Year Accruing [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans | SecurityLoan	1,121	1,056	984
Pre-modification Outstanding Recorded Investment	$ 59	$ 55	$ 50
Post-modification Outstanding Recorded Investment	$ 50	$ 48	$ 44
Consumer Other - Key Community Bank [Member] | Nonperforming [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans | SecurityLoan	26	31	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 | SecurityLoan	45	53	45
Pre-modification Outstanding Recorded Investment	$ 2	$ 2	$ 2
Post-modification Outstanding Recorded Investment	$ 1	$ 2	$ 2
Consumer Credit Card Financing Receivable [Member] | Nonperforming [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans | SecurityLoan	314	156	290
Pre-modification Outstanding Recorded Investment	$ 2	$ 1	$ 2
Post-modification Outstanding Recorded Investment	$ 2	$ 1	$ 2
Consumer Credit Card Financing Receivable [Member] | Prior-Year Accruing [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans | SecurityLoan	473	564	514
Pre-modification Outstanding Recorded Investment	$ 2	$ 4	$ 4
Post-modification Outstanding Recorded Investment	$ 2	$ 3	$ 2
Consumer Marine [Member] | Nonperforming [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans | SecurityLoan	92	211	206
Pre-modification Outstanding Recorded Investment	$ 6	$ 16	$ 17
Post-modification Outstanding Recorded Investment	$ 5	$ 14	$ 14
Consumer Marine [Member] | Prior-Year Accruing [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans | SecurityLoan	398	402	373
Pre-modification Outstanding Recorded Investment	$ 59	$ 58	$ 54
Post-modification Outstanding Recorded Investment	$ 33	$ 34	$ 31
Other Consumer [Member] | Nonperforming [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans | SecurityLoan	16	40	38
Pre-modification Outstanding Recorded Investment		$ 1	$ 1
Post-modification Outstanding Recorded Investment		$ 1	$ 1
Other Consumer [Member] | Prior-Year Accruing [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans | SecurityLoan	68	72	67
Pre-modification Outstanding Recorded Investment	$ 2	$ 2	$ 2
Post-modification Outstanding Recorded Investment	$ 2	$ 1	$ 1
Consumer Other [Member] | Nonperforming [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans | SecurityLoan	108	251	244
Pre-modification Outstanding Recorded Investment	$ 6	$ 17	$ 18
Post-modification Outstanding Recorded Investment	$ 5	$ 15	$ 15
Consumer Other [Member] | Prior-Year Accruing [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans | SecurityLoan	466	474	440
Pre-modification Outstanding Recorded Investment	$ 61	$ 60	$ 56
Post-modification Outstanding Recorded Investment	$ 35	$ 35	$ 32
Consumer Loans [Member] | Nonperforming [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans | SecurityLoan	2,019	2,160	2,366
Pre-modification Outstanding Recorded Investment	$ 112	$ 121	$ 132
Post-modification Outstanding Recorded Investment	$ 102	$ 113	$ 121
Consumer Loans [Member] | Prior-Year Accruing [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans | SecurityLoan	2,604	2,506	2,364
Pre-modification Outstanding Recorded Investment	$ 160	$ 149	$ 141
Post-modification Outstanding Recorded Investment	$ 124	$ 116	$ 109

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Securities - Available for Sale Securities (Unrealized Loss Position) (Detail) - USD ($) $ in Millions	Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014
Schedule of Available-for-sale Securities [Line Items]
Held-to-maturity Securities, Gross unrealized losses	$ 23	$ 57	$ 96
Fair value less than 12 months, total temporarily impaired securities	1,520	4,028	2,705
Gross unrealized losses less than 12 months, total temporarily impaired securities	5	63	21
Fair value 12 months or longer, total temporarily impaired securities	4,706	5,006	6,804
Gross unrealized losses 12 months or longer, total temporarily impaired securities	81	131	274
Fair value, total temporarily impaired securities	6,226	9,034	9,509
Gross unrealized losses, total temporarily impaired securities	86	194	295
Collateralized Mortgage Obligations [Member]
Schedule of Available-for-sale Securities [Line Items]
Fair value, less than 12 months	770	3,019	605
Gross unrealized losses, less than 12 months	3	52	7
Fair value, 12 months or longer	3,348	2,932	4,379
Gross unrealized losses, 12 months or longer	59	84	189
Fair Value	4,118	5,951	4,984
Gross unrealized losses, Total	62	136	196
Held-to-maturity Securities, Fair Value less than 12 months	214	1,005	1,288
Held-to-maturity Securities, Gross unrealized losses, less than 12 months	1	11	13
Held-to-maturity Securities, Fair Value 12 months or longer	1,355	1,994	2,342
Held-to-maturity Securities, Gross unrealized losses, 12 months or longer	22	46	83
Held-to-maturity Securities, Fair Value	1,569	2,999	3,630
Held-to-maturity Securities, Gross unrealized losses	23	57	96
Other Mortgage-Backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Fair value, less than 12 months	420		811
Gross unrealized losses, less than 12 months	1		1
Fair value, 12 months or longer		78	81
Gross unrealized losses, 12 months or longer		1	2
Fair Value	420	78	892
Gross unrealized losses, Total	1	1	3
Held-to-maturity Securities, Fair Value less than 12 months	110
Held-to-maturity Securities, Fair Value	110
Other Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Fair value, less than 12 months	2	4	1
Fair value, 12 months or longer	3	2	2
Fair Value	5	$ 6	$ 3
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 - Additional Information (Detail)		3 Months Ended			9 Months Ended		12 Months Ended
	Oct. 29, 2015 USD ($)	Sep. 30, 2015 USD ($) Trust	Jun. 30, 2014 USD ($)	Mar. 31, 2014 USD ($)	Sep. 30, 2015 USD ($) SecurityLoan Trust TDRs	Sep. 30, 2014 USD ($) SecurityLoan Trust	Dec. 31, 2014 USD ($) SecurityLoan	Dec. 31, 2009 Trust
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Estimated goodwill		$ 1,060,000,000			$ 1,060,000,000	$ 1,051,000,000	$ 1,057,000,000
Trust assets removed		2,086,000,000			2,086,000,000	2,421,000,000	2,324,000,000
Discontinued liabilities		0			0	3,000,000	3,000,000
Allowance for loan held as investment		$ 790,000,000			$ 790,000,000	$ 804,000,000	$ 794,000,000
Number of TDRs | SecurityLoan					4,659	4,730	4,776
Loans at fair value						$ 201,000,000	$ 191,000,000
Number of outstanding securitizations trusts | Trust		3			3
Loans held for sale at fair value		$ 0			$ 0	0	0
Proceeds from loans sold					$ 5,362,000,000	$ 2,832,000,000
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
Increase in goodwill		3,000,000
Number of outstanding securitization trusts | Trust						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 | Trust						8
Subsequent Event [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds from loans sold	$ 117,000,000
Trust [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Loans held for sale at fair value		173,000,000			$ 173,000,000
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
Discontinued liabilities						1,600,000,000
Portfolio [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Loans held for sale at fair value		169,000,000			169,000,000
Discontinued Operations [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of outstanding securitization trusts | Trust								10
Trust assets removed		2,086,000,000			2,086,000,000	2,421,000,000	2,324,000,000
Discontinued liabilities						3,000,000	3,000,000
Economic interest or risk of loss associated with education loan securitization trusts		0			0
Fair value of loans and securities in securitization trusts after tax loss			$ 22,000,000
Discontinued Operations [Member] | Portfolio [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Loans at fair value						$ 201,000,000	$ 191,000,000
Loans held for sale at fair value		169,000,000			169,000,000
Education Loans [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Investment recorded		20,000,000			20,000,000
Allowance for loan held as investment		$ 2,000,000			$ 2,000,000
Number of TDRs | TDRs					1,845

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Asset Quality - Allowance for Loan and Lease Losses and Corresponding Loan Balances (Parenthetical) (Detail) - USD ($) $ in Millions	Dec. 31, 2014	Sep. 30, 2014
Receivables [Abstract]
Loans carried at fair value	$ 191	$ 201

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Shareholders' Equity

9 Months Ended

Sep. 30, 2015

Equity [Abstract]

Shareholders' Equity

17. Shareholders’ Equity

Comprehensive Capital Plan

As previously reported and as authorized by the Board and pursuant to our 2015 capital plan submitted to and not objected to by the Federal Reserve, we have authority to repurchase up to $725 million of our common shares, which include repurchases to offset issuances of common shares under our employee compensation plans. During the third quarter of 2015, we completed $123 million of common share repurchases under this authorization.

Consistent with our 2015 capital plan, the Board declared a quarterly dividend of $.075 per common share for the third quarter of 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.

Preferred Stock

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

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Acquisitions and Discontinued Operations - Components of Income (Loss) from Discontinued Operations, Net of Taxes (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Income taxes	$ (2)	$ (10)	$ 3	$ (24)
Income (loss) from discontinued operations, net of taxes	(3)	(17)	5	(41)
Discontinued Operations [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net interest income	9	26	29	74
Noninterest income	2	41	(1)	101
Noninterest expense	5	7	13	23
Income (loss) before income taxes	(5)	(27)	8	(65)
Income taxes	(2)	(10)	3	(24)
Income (loss) from discontinued operations, net of taxes	$ (3)	(17)	$ 5	(41)
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		5		7
Noninterest income				10
Income (loss) before income taxes		5		17
Income taxes		2		7
Income (loss) from discontinued operations, net of taxes		$ 3		10
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)

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Contingent Liabilities and Guarantees - Guarantees (Detail) $ in Millions	Sep. 30, 2015 USD ($)
Guarantor Obligations [Line Items]
Maximum Potential Undiscounted Future Payments	$ 15,380
Liability Recorded	188
Written Put Options [Member]
Guarantor Obligations [Line Items]
Maximum Potential Undiscounted Future Payments	2,131
Liability Recorded	117
Standby Letters of Credit [Member]
Guarantor Obligations [Line Items]
Maximum Potential Undiscounted Future Payments	11,498
Liability Recorded	63
Recourse Agreement with FNMA [Member]
Guarantor Obligations [Line Items]
Maximum Potential Undiscounted Future Payments	1,747
Liability Recorded	4
Return Guarantee Agreement with LIHTC Investors [Member]
Guarantor Obligations [Line Items]
Maximum Potential Undiscounted Future Payments	4
Liability Recorded	$ 4

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Employee Benefits - Net Postretirement Benefit Cost for Funded and Unfunded Plans (Detail) - Other Postretirement Benefit Plans [Member] - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Defined Benefit Plan Disclosure [Line Items]
Interest cost on APBO	$ 1	$ 1	$ 3	$ 3
Expected return on plan assets	(1)	(1)	(2)	(3)
Amortization of unrecognized prior service credit			(1)
Net benefit cost	$ 0	$ 0	$ 0	$ 0

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Fair Value Measurements - Change in Fair Values of Level 3 Financial Instruments (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 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		$ 10
Purchases	7	$ 10	7	$ 10
Ending Balance	17	10	17	10
Other Investments [Member] | Principal Investments Direct [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Beginning Balance	70	146	102	141
Gains (Losses) Included in Earnings	4	(2)	20	9
Purchases	3		5	1
Sales	(11)	(29)	(61)	(36)
Ending Balance	66	115	66	115
Unrealized Gains (Losses) Included in Earnings	3	(2)		18
Other Investments [Member] | Principal Investments Indirect [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Beginning Balance	282	399	302	413
Gains (Losses) Included in Earnings	8	9	33	(49)
Purchases	2	3	6	8
Sales	(21)	(58)	(70)	(117)
Ending Balance	271	353	271	353
Unrealized Gains (Losses) Included in Earnings	(8)	(4)	(23)	8
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	9	16	10	23
Gains (Losses) Included in Earnings			6	(1)
Sales		(3)	(7)	(9)
Ending Balance	9	13	9	13
Unrealized Gains (Losses) Included in Earnings			6	(1)
Other Investments [Member] | Other [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Beginning Balance	4	4	4	4
Ending Balance	4	4	4	4
Interest Rate [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Beginning Balance	16	20	13	25
Gains (Losses) Included in Earnings	6		5	2
Purchases			1	3
Sales				(2)
Transfers into Level 3	2	2	10	7
Transfers out of Level 3	(2)	(3)	(7)	(16)
Ending Balance	22	19	22	19
Commodity [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Beginning Balance		1
Purchases		(1)		(1)
Transfers into Level 3				1
Transfers out of Level 3		(1)		(1)
Ending Balance		(1)		(1)
Credit [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Beginning Balance	3	3	2	3
Gains (Losses) Included in Earnings	(3)	(2)	(7)	(7)
Sales	8		8
Settlements	(5)	2		7
Ending Balance	$ 3	$ 3	$ 3	$ 3

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Variable Interest Entities (Tables)

9 Months Ended

Sep. 30, 2015

Equity Method Investments and Joint Ventures [Abstract]

Variable Interest Entities Information

During the third quarter of 2015, we noted that not all liabilities related to our unconsolidated VIEs were captured in the table below. The amounts in the “Total Liabilities” column for our unconsolidated VIEs were revised to incorporate all liabilities for the periods ended December 31, 2014, and September 30, 2014.

	Consolidated VIEs				Unconsolidated VIEs
	Total		Total		Total		Total		Maximum
in millions	Assets		Liabilities		Assets		Liabilities		Exposure to Loss
September 30, 2015
LIHTC funds	$	1	$	1	$	26	$	14		—
LIHTC investments
KCDC		N/A		N/A		834		271	$	543
KAHC		N/A		N/A		260		231		14
December 31, 2014
LIHTC funds	$	1	$	1	$	55	$	36		—
LIHTC investments
KCDC		N/A		N/A		764		258	$	507
KAHC		N/A		N/A		470		462		14
September 30, 2014
LIHTC funds	$	1	$	2	$	55	$	36		—
LIHTC investments
KCDC		N/A		N/A		775		263	$	498
KAHC		N/A		N/A		470		462		9

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Income Taxes

9 Months Ended

Sep. 30, 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 third quarter of 2015 and 24.1% for the third 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.

Deferred Tax Asset

At September 30, 2015, from continuing operations, we had a net federal deferred tax asset of $190 million and a net state deferred tax asset of $26 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 $153 million and a net state deferred tax asset of $19 million at September 30, 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 September 30, 2015, and at December 31, 2014, and $1 million at September 30, 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 $2.8 million at September 30, 2015, and by $1 million at both December 31, 2014, and September 30, 2014.

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Mortgage Servicing Assets - Schedule of Range and Weighted-Average of Significant Unobservable Inputs (Detail) - Discounted Cash Flow [Member] - USD ($)	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Weighted Average [Member]
Servicing Assets at Fair Value [Line Items]
Prepayment speed	4.90%	5.90%
Expected defaults	1.70%	1.90%
Residual cash flows discount rate	7.80%	7.80%
Escrow earn rate	2.30%	1.70%
Servicing cost	$ 1,151,000,000	$ 1,053,000,000
Loan assumption rate	1.37%	1.52%
Percentage late	0.33%	0.32%
Minimum [Member]
Servicing Assets at Fair Value [Line Items]
Prepayment speed	1.70%	1.90%
Expected defaults	1.00%	1.00%
Residual cash flows discount rate	7.00%	7.00%
Escrow earn rate	0.90%	0.50%
Servicing cost	$ 150,000,000	$ 150,000,000
Loan assumption rate	0.00%	0.20%
Percentage late	0.00%	0.00%
Maximum [Member]
Servicing Assets at Fair Value [Line Items]
Prepayment speed	16.30%	12.30%
Expected defaults	3.00%	3.00%
Residual cash flows discount rate	15.00%	14.10%
Escrow earn rate	3.50%	3.10%
Servicing cost	$ 2,719,000,000	$ 2,700,000,000
Loan assumption rate	3.00%	3.00%
Percentage late	2.00%	2.00%