Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2020 | Apr. 27, 2020 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2020 | |
Entity File Number | 001-11302 | |
Entity Registrant Name | KeyCorp | |
Entity Incorporation, State or Country Code | OH | |
Entity Tax Identification Number | 34-6542451 | |
Entity Address, Address Line One | 127 Public Square, | |
Entity Address, City or Town | Cleveland, | |
Entity Address, State or Province | OH | |
Entity Address, Postal Zip Code | 44114-1306 | |
City Area Code | 216 | |
Local Phone Number | 689-3000 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 975,405,589 | |
Amendment Flag | false | |
Entity Central Index Key | 0000091576 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Common Stock [Member] | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Common Shares, $1 par value | |
Trading Symbol | KEY | |
Security Exchange Name | NYSE | |
Series E Preferred Stock [Member] | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Perpetual Non-Cumulative Preferred Stock, Series E) | |
Trading Symbol | KEY PrI | |
Security Exchange Name | NYSE | |
Series F Preferred Stock [Member] | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Cumulative Preferred Stock, Series F) | |
Trading Symbol | KEY PrJ | |
Security Exchange Name | NYSE | |
Series G Preferred Stock [Member] | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Cumulative Preferred Stock, Series G) | |
Trading Symbol | KEY PrK | |
Security Exchange Name | NYSE |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 | |
ASSETS | |||
Cash and due from banks | $ 865 | $ 732 | |
Short-term investments | 4,073 | 1,272 | |
Trading account assets | 795 | 1,040 | |
Securities available for sale | 20,807 | 21,843 | |
Held-to-maturity securities (fair value: $10,012 and $10,116) | 9,638 | 10,067 | |
Other investments | 679 | 605 | |
Loans, net of unearned income of $575 and $603 | 103,198 | 94,646 | |
Less: Allowance for loan and lease losses | (1,359) | (900) | |
Net loans | 101,839 | 93,746 | |
Loans held for sale | [1] | 2,143 | 1,334 |
Premises and equipment | 791 | ||
Premises and equipment | 814 | ||
Goodwill | 2,664 | 2,664 | |
Other intangible assets | 236 | 253 | |
Corporate-owned life insurance | 4,243 | 4,233 | |
Accrued income and other assets | 6,604 | 5,494 | |
Discontinued assets | 820 | 891 | |
Total assets | 156,197 | 144,988 | |
Deposits in domestic offices: | |||
NOW and money market deposit accounts | 71,005 | 66,714 | |
Savings deposits | 4,753 | 4,651 | |
Certificates of deposit ($100,000 or more) | 5,630 | 6,598 | |
Other time deposits | 4,623 | 5,054 | |
Total interest-bearing deposits | 86,011 | 83,017 | |
Noninterest-bearing deposits | 29,293 | 28,853 | |
Total deposits | 115,304 | 111,870 | |
Federal funds purchased and securities sold under repurchase agreements | 2,444 | 387 | |
Bank notes and other short-term borrowings | 4,606 | 705 | |
Accrued expense and other liabilities | 2,700 | 2,540 | |
Long-term debt | 13,732 | 12,448 | |
Total liabilities | 138,786 | 127,950 | |
EQUITY | |||
Preferred stock | 1,900 | 1,900 | |
Common Shares, $1 par value; authorized 2,100,000,000 and 2,100,000,000 shares; issued 1,256,702,081 and 1,256,702,081 shares | 1,257 | 1,257 | |
Capital surplus | 6,222 | 6,295 | |
Retained earnings | 12,174 | 12,469 | |
Treasury stock, at cost (281,383,095 and 279,513,530 shares) | (4,956) | (4,909) | |
Accumulated other comprehensive income (loss) | 814 | 26 | |
Key shareholders’ equity | 17,411 | 17,038 | |
Noncontrolling interests | 0 | 0 | |
Total equity | 17,411 | 17,038 | |
Total liabilities and equity | $ 156,197 | $ 144,988 | |
[1] | Total loans held for sale include real estate — residential mortgage loans held for sale at fair value of $152 million at March 31, 2020 , and $140 million at December 31, 2019 . |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Held-to-maturity securities, fair value | $ 10,012,000,000 | $ 10,116,000,000 |
Unearned income on loans | 575,000,000 | 603,000,000 |
Loans held for sale | 0 | |
Aggregate amount of certificates of deposit, denominations | $ 100,000,000,000 | $ 100,000,000,000 |
Common shares, par value (in usd per share) | $ 1 | $ 1 |
Common shares, shares authorized (in shares) | 2,100,000,000 | 1,400,000,000 |
Common shares, shares issued (in shares) | 1,256,702,081 | 1,256,702,081 |
Treasury stock, shares (in shares) | 281,383,095 | 279,513,530 |
Residential Mortgage [Member] | ||
Loans held for sale | $ 152,000,000 | $ 140,000,000 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
INTEREST INCOME | |||
Loans | $ 1,026 | $ 1,066 | |
Loans held for sale | 19 | 13 | |
Securities available for sale | 129 | 129 | |
Held-to-maturity securities | 62 | 68 | |
Trading account assets | 8 | 8 | |
Short-term investments | 6 | 16 | |
Other investments | 1 | 4 | |
Total interest income | 1,251 | 1,304 | |
INTEREST EXPENSE | |||
Deposits | 169 | 202 | |
Federal funds purchased and securities sold under repurchase agreements | 6 | 1 | |
Bank notes and other short-term borrowings | 5 | 4 | |
Long-term debt | 90 | 120 | |
Total interest expense | 270 | 327 | |
NET INTEREST INCOME | 981 | 977 | |
Provision for credit losses | 359 | 62 | |
Net interest income after provision for credit losses | 622 | 915 | |
NONINTEREST INCOME | |||
Trust and investment services income | 133 | 115 | |
Investment banking and debt placement fees | 116 | 110 | |
Service charges on deposit accounts | 84 | 82 | |
Operating lease income and other leasing gains | 30 | 37 | |
Corporate services income | 62 | 55 | |
Cards and payments income | 66 | 66 | |
Corporate-owned life insurance income | 36 | 32 | |
Consumer mortgage income | 20 | 11 | |
Commercial mortgage servicing fees | 18 | 18 | |
Other income | [1] | (88) | 10 |
Total noninterest income | 477 | 536 | |
NONINTEREST EXPENSE | |||
Personnel | 515 | 563 | |
Net occupancy | 76 | 72 | |
Computer processing | 55 | 54 | |
Business services and professional fees | 44 | 44 | |
Equipment | 24 | 24 | |
Operating lease expense | 36 | 26 | |
Marketing | 21 | 19 | |
FDIC assessment | 9 | 7 | |
Intangible asset amortization | 17 | 22 | |
OREO expense, net | 3 | 3 | |
Other expense | 131 | 129 | |
Total noninterest expense | 931 | 963 | |
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 168 | 488 | |
Income taxes | 23 | 82 | |
INCOME (LOSS) FROM CONTINUING OPERATIONS | 145 | 406 | |
Income (loss) from discontinued operations | 1 | 1 | |
NET INCOME (LOSS) | 146 | 407 | |
Less: Net income (loss) attributable to noncontrolling interests | 0 | 0 | |
NET INCOME (LOSS) ATTRIBUTABLE TO KEY | 146 | 407 | |
Income (loss) from continuing operations attributable to Key common shareholders | 118 | 386 | |
Net income (loss) attributable to Key common shareholders | $ 119 | $ 387 | |
Per Common Share: | |||
Income (loss) from continuing operations attributable to Key common shareholders (in usd per share) | $ 0.12 | $ 0.38 | |
Income (loss) from discontinued operations, net of taxes (in usd per share) | 0 | 0 | |
Net income (loss) attributable to Key common shareholders (in usd per share) | [2] | 0.12 | 0.38 |
Per Common Share — assuming dilution: | |||
Income (loss) from continuing operations attributable to Key common shareholders (in usd per share) | 0.12 | 0.38 | |
Income (loss) from discontinued operations, net of taxes (in usd per share) | 0 | 0 | |
Net income (loss) attributable to Key common shareholders (in usd per share) | [2] | 0.12 | 0.38 |
Cash dividends declared per common share (in usd per share) | $ 0.185 | $ 0.17 | |
Weighted-average common shares outstanding (000) (in shares) | 967,446 | 1,006,717 | |
Effect of common share options and other stock awards (in shares) | 8,664 | 9,787 | |
Weighted-average common shares and potential common shares outstanding (in shares) | [3] | 976,110 | 1,016,504 |
[1] | For the three months ended March 31, 2020 , net securities gains (losses) totaled $4 million . For the three months ended March 31, 2019 , net securities gains (losses) totaled less than $1 million . For the three months ended March 31, 2020 , and March 31, 2019 , Key did no t have any impairment losses related to securities. | ||
[2] | EPS may not foot due to rounding. | ||
[3] | Assumes conversion of Common Share options and other stock awards and/or convertible preferred stock, as applicable. |
Consolidated Statements of In_2
Consolidated Statements of Income (Parenthetical) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Statement [Abstract] | ||
Net securities gains (less than $1 million) | $ 4,000,000 | $ 0 |
Impaired losses related to securities | $ 0 | $ 0 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Net income (loss) | $ 146 | $ 407 |
Other comprehensive income (loss), net of tax: | ||
Net unrealized gains (losses) on securities available for sale, net of income taxes of $126 and $56 | 405 | 184 |
Net unrealized gains (losses) on derivative financial instruments, net of income taxes of $117 and $31 | 377 | 99 |
Foreign currency translation adjustments, net of income taxes of $0 and $0 | 0 | 3 |
Net pension and postretirement benefit costs, net of income taxes of $2 and $1 | 6 | 2 |
Total other comprehensive income (loss), net of tax | 788 | 288 |
Comprehensive income (loss) | 934 | 695 |
Less: Comprehensive income attributable to noncontrolling interests | 0 | 0 |
Comprehensive income (loss) attributable to Key | $ 934 | $ 695 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Income taxes effect on net unrealized (losses) gains on securities available for sale | $ (126) | $ (56) |
Income taxes effect on net unrealized gains (losses) on derivative financial instruments | (117) | (31) |
Income taxes effect on foreign currency translation adjustments | 0 | 0 |
Income taxes effect on net pension and postretirement benefit costs | $ 2 | $ 1 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Millions | Total | Series D Preferred Stock [Member] | Series E Preferred Stock [Member] | Series F Preferred Stock [Member] | Series G Preferred Stock [Member] | Preferred Stock [Member] | Common Stock [Member] | Capital Surplus [Member] | Retained Earnings [Member] | Retained Earnings [Member]Series D Preferred Stock [Member] | Retained Earnings [Member]Series E Preferred Stock [Member] | Retained Earnings [Member]Series F Preferred Stock [Member] | Retained Earnings [Member]Series G Preferred Stock [Member] | Treasury Stock, at Cost [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Noncontrolling Interests [Member] |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Beginning Balance | $ 1,450 | $ 1,257 | $ 6,331 | $ 11,556 | $ (4,181) | $ (818) | $ 1 | |||||||||
Beginning Balance, Preferred Shares (in shares) at Dec. 31, 2018 | 946,000 | |||||||||||||||
Beginning Balance, Common Shares (in shares) at Dec. 31, 2018 | 1,019,503,000 | |||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Beginning Balance | $ 1,450 | $ 1,257 | 6,259 | 11,771 | (4,283) | (530) | 2 | |||||||||
Net income (loss) | $ 407 | 407 | 0 | |||||||||||||
Other comprehensive income (loss) | 288 | 288 | ||||||||||||||
Deferred compensation | (3) | |||||||||||||||
Cash dividends declared on common shares | (172) | |||||||||||||||
Cash dividends declared on preferred stock | $ (6) | $ (8) | $ (6) | |||||||||||||
Open market common share repurchases (in shares) | 9,968,000 | |||||||||||||||
Open market Common Share repurchases | (167) | |||||||||||||||
Employee equity compensation program Common Share repurchases (in shares) | 1,823,000 | |||||||||||||||
Employee equity compensation program Common Share repurchases | (2) | (32) | ||||||||||||||
Common shares reissued (returned) for stock options and other employee benefit plans, shares | 5,474,000 | |||||||||||||||
Common Shares reissued (returned) for stock options and other employee benefit plans | (67) | 97 | ||||||||||||||
Net contribution from (distribution to) noncontrolling interests | 1 | |||||||||||||||
Ending Balance, Preferred Shares (in shares) at Mar. 31, 2019 | 946,000 | |||||||||||||||
Ending Balance, Common Shares (in shares) at Mar. 31, 2019 | 1,013,186,000 | |||||||||||||||
Ending Balance at Mar. 31, 2019 | $ 1,450 | $ 1,257 | 6,259 | 11,771 | (4,283) | (530) | 2 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Beginning Balance | 1,450 | 1,257 | 6,259 | 11,771 | (4,283) | (530) | 2 | |||||||||
Beginning Balance | 17,038 | $ 1,900 | $ 1,257 | 6,295 | 12,469 | (4,909) | 26 | 0 | ||||||||
Beginning Balance, Preferred Shares (in shares) at Dec. 31, 2019 | 1,396,000 | |||||||||||||||
Beginning Balance, Common Shares (in shares) at Dec. 31, 2019 | 977,189,000 | |||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Beginning Balance | 17,411 | $ 1,900 | $ 1,257 | 6,222 | 12,174 | (4,956) | 814 | 0 | ||||||||
Net income (loss) | 146 | 146 | 0 | |||||||||||||
Other comprehensive income (loss) | 788 | 788 | ||||||||||||||
Deferred compensation | (1) | |||||||||||||||
Cash dividends declared on common shares | (181) | |||||||||||||||
Cash dividends declared on preferred stock | $ (7) | $ (8) | $ (6) | $ (6) | ||||||||||||
Open market common share repurchases (in shares) | (6,067,000) | |||||||||||||||
Open market Common Share repurchases | (117) | |||||||||||||||
Employee equity compensation program Common Share repurchases (in shares) | (1,795,000) | |||||||||||||||
Employee equity compensation program Common Share repurchases | (72) | (35) | ||||||||||||||
Common shares reissued (returned) for stock options and other employee benefit plans, shares | 5,992,000 | |||||||||||||||
Common Shares reissued (returned) for stock options and other employee benefit plans | 0 | 105 | ||||||||||||||
Net contribution from (distribution to) noncontrolling interests | 0 | |||||||||||||||
Ending Balance, Preferred Shares (in shares) at Mar. 31, 2020 | 21,000 | 500,000 | 425,000 | 450,000 | 1,396,000 | |||||||||||
Ending Balance, Common Shares (in shares) at Mar. 31, 2020 | 975,319,000 | |||||||||||||||
Ending Balance at Mar. 31, 2020 | 17,411 | $ 1,900 | $ 1,257 | 6,222 | 12,174 | (4,956) | 814 | 0 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Beginning Balance | $ 17,411 | $ 1,900 | $ 1,257 | $ 6,222 | $ 12,174 | $ (4,956) | $ 814 | $ 0 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Equity (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash dividends declared on common shares (in usd per share) | $ 0.185 | $ 0.17 |
Series D Preferred Stock [Member] | ||
Cash dividends declared on Preferred Stock (in usd per share) | 12.50 | 12.50 |
Series E Preferred Stock [Member] | ||
Cash dividends declared on Preferred Stock (in usd per share) | 0.382813 | 0.382813 |
Series F Preferred Stock [Member] | ||
Cash dividends declared on Preferred Stock (in usd per share) | 0.353125 | $ 0.353125 |
Series G Preferred Stock [Member] | ||
Cash dividends declared on Preferred Stock (in usd per share) | $ 0.351563 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
OPERATING ACTIVITIES | ||
Net income (loss) | $ 146 | $ 407 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Provision for credit losses | 359 | 62 |
Depreciation and amortization expense, net | 54 | 58 |
Accretion of acquired loans | 10 | 17 |
Increase in cash surrender value of corporate-owned life insurance | (29) | (28) |
Stock-based compensation expense | 25 | 25 |
Deferred income taxes (benefit) | (18) | 99 |
Proceeds from sales of loans held for sale | 2,687 | 2,045 |
Originations of loans held for sale, net of repayments | (3,256) | (1,679) |
Net losses (gains) on sales of loans held for sale | (38) | (28) |
Net losses (gains) on leased equipment | 6 | 2 |
Net securities losses (gains) | (4) | 0 |
Net losses (gains) on sales of fixed assets | 2 | (1) |
Net decrease (increase) in trading account assets | 245 | (130) |
Other operating activities, net | (362) | (289) |
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | (173) | 560 |
INVESTING ACTIVITIES | ||
Net decrease (increase) in short-term investments, excluding acquisitions | (2,801) | 50 |
Purchases of securities available for sale | (190) | (1,842) |
Proceeds from sales of securities available for sale | 583 | 0 |
Proceeds from prepayments and maturities of securities available for sale | 1,176 | 655 |
Proceeds from prepayments and maturities of held-to-maturity securities | 434 | 295 |
Purchases of held-to-maturity securities | (4) | (9) |
Purchases of other investments | (91) | (16) |
Proceeds from sales of other investments | 2 | 7 |
Proceeds from prepayments and maturities of other investments | 10 | 32 |
Net decrease (increase) in loans, excluding acquisitions, sales and transfers | (8,902) | (780) |
Proceeds from sales of portfolio loans | 54 | 61 |
Proceeds from corporate-owned life insurance | 19 | 16 |
Purchases of premises, equipment, and software | (12) | (9) |
Proceeds from sales of premises and equipment | 0 | 1 |
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES | (9,722) | (1,539) |
FINANCING ACTIVITIES | ||
Net increase (decrease) in deposits, excluding acquisitions | 3,434 | 866 |
Net increase (decrease) in short-term borrowings | 5,958 | 83 |
Net proceeds from issuance of long-term debt | 2,497 | 1,351 |
Payments on long-term debt | (1,506) | (1,000) |
Open market Common Share repurchases | (117) | (167) |
Employee equity compensation program Common Share repurchases | (35) | (32) |
Net proceeds from reissuance of Common Shares | 5 | 3 |
Cash dividends paid | (208) | (192) |
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | 10,028 | 912 |
NET INCREASE (DECREASE) IN CASH AND DUE FROM BANKS | 133 | (67) |
CASH AND DUE FROM BANKS AT BEGINNING OF PERIOD | 732 | 678 |
CASH AND DUE FROM BANKS AT END OF PERIOD | 865 | 611 |
Additional disclosures relative to cash flows: | ||
Interest paid | 267 | 306 |
Income taxes paid (refunded) | 35 | 34 |
Noncash items: | ||
Reduction of secured borrowing and related collateral | 1 | 1 |
Loans transferred to portfolio from held for sale | 10 | 5 |
Loans transferred to held for sale from portfolio | 210 | (10) |
Loans transferred to OREO | 92 | 0 |
CMBS risk retentions | 12 | 9 |
ABS risk retentions | $ 11 | $ 0 |
Basis of Presentation and Accou
Basis of Presentation and Accounting Policies | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Accounting Policies | 1. Basis of Presentation and Accounting Policies 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 affect 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 10 (“ 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% are carried at the cost measurement alternative or at fair value. 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 2019 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. Accounting Guidance Adopted in 2020 Measurement of Credit Losses on Financial Instruments (ASU 2016-13, ASU 2018-19, ASU 2019-04, ASU 2019-05, ASU 2019-11, ASU 2020-02, ASU 2020-03) On January 1, 2020, we adopted ASU 2016-13, Financial Instruments - Credit Losses (ASC 326): Measurement of Credit Losses on Financial Instruments, which replaces the incurred-loss methodology that recognized losses when a probable threshold was met with an expected-loss methodology, specifically, recognizing current expected credit losses (CECL) for the remaining life of the asset at the time of origination or acquisition. The CECL methodology applies to loans, debt securities, and other financial assets and net investment in leases measured at amortized cost. It also applies to off-balance sheet credit exposures (loan commitments, standby letters of credit, financial guarantees, and other similar instruments). Assets in the scope of ASC 326 are presented at the net amount expected to be collected after deducting the allowance for credit losses from the amortized cost basis of the assets. ASC 326 also requires credit losses relating to available-for-sale debt securities that management does not intend to sell or believes that it is more likely than not they will be required to sell to be recorded through an allowance rather than a reduction of the carrying amount. ASC 326 replaces the purchased credit impaired concept of accounting, previously required under Subtopic 310-30, with a purchased financial assets with credit deterioration (PCD) concept. In accordance with ASC 326, we did not reassess whether recognized purchased credit impaired loans met the criteria of a PCD loan and modifications to individual acquired loans accounted for in pools were TDRs as of the date of adoption. At adoption, we elected to not maintain the pools of loans previously accounted for under Subtopic 310-30. The prospective application resulted in a $4 million adjustment to the amortized cost basis of PCD loans to reflect the addition to the allowance for loans and leases as of January 1, 2020. After the adjustment for the allowance for the loans and leases, the noncredit discount of $15 million will be accreted to interest income using the interest method based on the effective interest rate determined after the adjustment from credit losses as of January 1, 2020. The ASU requires use of a modified retrospective approach through a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption. Results for reporting periods beginning after January 1, 2020, are presented under ASC 326 while prior period amounts continue to be reported in accordance with previously applicable GAAP. We posted an adjusting entry decreasing retained earnings as of January 1, 2020, by $230 million , net of deferred taxes of $71 million , for the cumulative effect of adopting ASC 326. The main drivers of the adjustment to retained earnings are summarized in the following table. Pre-ASC 326 Adoption Impact of ASC 326 Adoption As Reported Under ASC 326 in millions December 31, 2019 January 1, 2020 Allowance for credit losses Commercial Commercial and industrial $ 551 $ (141 ) $ 410 Real estate — commercial mortgage 143 16 159 Real estate — construction 22 (7 ) 15 Commercial lease financing 35 8 43 Total commercial loans 751 (124 ) 627 Consumer Real estate — residential mortgage 7 77 84 Home equity loans 31 147 178 Consumer direct loans 34 63 97 Credit cards 47 35 82 Consumer indirect loans 30 6 36 Total consumer loans 149 328 477 Total ALLL — continuing operations 900 204 1,104 Discontinued operations 10 31 41 Total ALLL 910 235 1,145 Accrued expense and other liabilities 75 70 145 Total allowance for credit losses $ 985 $ 305 $ 1,290 In conjunction with the adoption of ASC 326, the following are additional disclosures about our significant accounting policies related to CECL. Allowance for Held-to-Maturity Securities Debt securities that we have the intent and ability to hold until maturity are classified as held-to-maturity and 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. Management classifies the held-to-maturity portfolio into the following major security types: agency residential collateralized mortgage obligations, agency residential mortgage-backed securities, agency commercial mortgage-backed securities, asset backed securities, and other. Management measures expected credit losses on held-to-maturity securities on a collective basis by major security type. The estimate of expected losses considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. We do not measure expected credit losses on held-to-maturity securities in which historical credit loss information adjusted for current conditions and reasonable and supportable forecasts results in an expectation that nonpayment of the amortized cost basis is zero. All of our mortgage-backed securities are issued by U.S. government-sponsored enterprises or GNMA, are highly rated by major rating agencies and have a long history of no credit losses. Other securities are comprised of State of Israel bonds denominated and paid in U.S. dollars. Israel bonds have a long history of no credit losses. Additionally, as of March 31, 2020, the State of Israel's credit rating remains "stable" among Fitch, Moody's, and S&P (A+, A1, A+). Allowance for Available-for-Sale Securities Debt 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 are classified as available-for-sale and reported at fair value. Realized gains and losses resulting from sales of securities using the specific identification method are included in “other income” on the income statement. Unrealized gains and losses (net of income taxes) are recorded in equity as a component of AOCI. For available-for-sale securities in an unrealized loss position, we first assess whether we intend to sell, or it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis. If either of these criteria regarding intent or requirement to sell is met, the security's amortized cost basis is written down to fair value in “other income” on the income statement. For debt securities that do not meet the aforementioned criteria, we evaluate whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, nature of the security, the underlying collateral, and the financial condition of the issuer, among other factors. If this assessment indicates a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of the cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for available-for-sale securities is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for available-for-sale securities is recognized in other comprehensive income. Changes in the allowance for available-for-sale securities are recorded as provision for (or reversal of) credit loss. Losses are charged against the allowance for available-for-sale securities when management believes the uncollectibility of an available-for-sale security is confirmed or when either criteria regarding intent or requirement to sell is met. Loans Accrued interest on loans is included in "other assets" on the balance sheet and is excluded from the calculation of the allowance for credit losses due to our charge-off policy to reverse accrued interest on nonperforming loans against interest income in a timely manner. Expected credit losses on net investments in leases, including any unguaranteed residual asset, are included in the ALLL. Purchased Credit Deteriorated (PCD) Loans In addition to originating loans, we also acquire loans through portfolio purchases or acquisitions of other financial services companies. Purchased loans that have evidence of more than insignificant credit deterioration since origination are deemed PCD loans. In accordance with ASC 326, we did not reassess whether recognized purchased credit impaired loans met the criteria of a PCD loan as of the date of adoption. PCD loans are initially recorded at fair value along with an allowance for credit losses determined using the same methodology as originated loans. The sum of the loan's purchase price and allowance for credit losses becomes its initial amortized cost basis. The difference between the initial amortized cost basis and the par value of the loan is a noncredit discount or premium, which is amortized into interest income over the life of the loan. Subsequent changes to the allowance for credit losses are recorded through provision for credit losses. Nonperforming Loans 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. Once a loan is designated nonaccrual, the interest accrued but not collected is reversed against interest income, and payments subsequently received are applied to principal until qualifying for return to accrual. Allowance for Loan and Lease Losses We estimate the ALLL using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. The ALLL is measured on a collective (pool) basis when similar risk characteristics exist. Our portfolio segments include commercial and consumer. Each of these two segments comprises multiple loan classes. Classes are characterized by similarities in initial measurement, risk attributes, and the manner in which we monitor and assess credit risk. The commercial segment is composed of commercial and industrial, commercial real estate, and commercial lease financing loan classes. The consumer lending segment is composed of residential mortgage, home equity, consumer direct, credit card, and consumer indirect loan classes. The ALLL represents our current estimate of lifetime credit losses inherent in our loan portfolio at the balance sheet date. In determining the ALLL, we estimate expected future losses for the loan's entire contractual term adjusted for expected prepayments when appropriate. The contractual term excludes expected extensions, renewals, and modifications. The ALLL is the sum of three components: (i) asset specific/ individual loan reserves; (ii) quantitative (formulaic or pooled) reserves; and (iii) qualitative (judgmental) reserves. Asset Specific / Individual Component Loans that do not share risk characteristics are evaluated on an individual basis. Loans evaluated individually are not included in the collective evaluation. We have elected to apply the practical expedient to measure expected credit losses of a collateral dependent asset using the fair value of the collateral, less any costs to sell, when foreclosure is not probable, when repayment of the loan is expected to be provided substantially through the operation or sale of the collateral, and the borrower is experiencing financial difficulty. Individual reserves are determined as follows: • For commercial non-accruing loans greater than or equal to a defined dollar threshold, individual reserves are determined based on an analysis of the present value of the loan's expected future cash flows, the loan's observable market value, or the fair value of the collateral less costs to sell. • For commercial non-accruing loans below the defined dollar threshold, an established LGD percentage is multiplied by the loan balance and the results are aggregated for purposes of measuring specific reserve impairment. • The population of individually assessed consumer loans includes loans deemed collateral dependent, in addition to all TDRs. The expected loss for these loans is estimated based on the present value of the loan's expected future cash flows, except in instances where the loan is collateral dependent, in which case the loan is written down based on the collateral's fair market value less costs to sell. Quantitative Component We use a non-DCF factor-based approach to estimate expected credit losses that include component PD/LGD/EAD models as well as less complex estimation methods for smaller loan portfolios. • PD: This component model is used to estimate the likelihood that a borrower will cease making payments as agreed. The major contributors to this are the borrower credit attributes and macro-economic trends. The objective of the PD model is to produce default likelihood forecasts based on the observed loan-level information and projected paths of macroeconomic variables. • LGD: This component model is used to estimate the loss on a loan once a loan is in default. • EAD: Estimates the loan balance at the time the borrower stops making payments. For all term loans, an amortization based formulaic approach is used for account level EAD estimates. We calculate EAD using a portfolio specific method in each of our revolving product portfolios. For line products that are unconditionally cancellable, the balances will either use a paydown curve or be held flat through the life of the loan. Additional information about the critical estimates and judgments we make in developing these models is provided in the section “Allowance for loan and lease losses” under the heading” Critical Accounting Policies and Estimates” in Item 2 of this report. Qualitative Component The ALLL also includes identified qualitative factors related to idiosyncratic risk factors, changes in current economic conditions that may not be reflected in quantitatively derived results, and other relevant factors to ensure the ALLL reflects our best estimate of current expected credit losses. While our reserve methodologies strive to reflect all relevant risk factors, there continues to be uncertainty associated with, but not limited to, potential imprecision in the estimation process due to the inherent time lag of obtaining information and normal variations between estimates and actual outcomes. We provide additional reserves that are designed to provide coverage for losses attributable to such risks. The ALLL also includes factors that may not be directly measured in the determination of individual or collective reserves. Such qualitative factors may include: • The nature and volume of the institution’s financial assets; • The existence, growth, and effect of any concentrations of credit; • The volume and severity of past due financial assets, the volume of nonaccrual assets, and the volume and severity of adversely classified or graded assets; • The value of the underlying collateral for loans that are not collateral dependent; • The institution’s lending policies and procedures, including changes in underwriting standards and practices for collections, write-offs, and recoveries; • The quality of the institution’s credit review function; • The experience, ability, and depth of the institution’s lending, investment, collection, and other relevant management and staff; • The effect of other external factors such as the regulatory, legal and technological environments; competition; and events such as natural disasters; and • Actual and expected changes in international, national, regional, and local economic and business conditions and developments in which the institution operates that affect the collectability of financial assets. Liability for Credit Losses on Lending-Related Commitments The liability for credit losses on lending-related commitments, such as letters of credit and unfunded loan commitments, is included in “accrued expense and other liabilities” on the balance sheet. Expected credit losses are estimated over the contractual period in which we are exposed to credit risk via a contractual obligation unless that obligation is unconditionally cancellable by us. The liability for credit losses on lending-related commitments is adjusted as a provision for credit losses. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated useful life. Consistent with our estimation process on our loan and lease portfolio, we use a non-DCF factor-based approach to estimate expected credit losses that include component PD/LGD/EAD models as well as less complex estimation methods for smaller portfolios. Simplifying the Test for Goodwill Impairment (ASU 2017-04) On January 1, 2020, we adopted ASU 2017-04. The ASU amends ASC Topic 350, Intangibles - Goodwill and Other and eliminates the second step of the test for goodwill impairment. Under the new guidance, Key will compare the fair value of a reporting unit with its carrying amount. If the carrying amount exceeds the reporting unit’s fair value, we are required to recognize an impairment charge for this amount. The new method applies to all reporting units and the performance of a qualitative assessment is still allowable. We will monitor for impairment indicators and conduct our annual goodwill test as of October 1, 2020. The adoption of this accounting guidance must be applied prospectively and is not currently expected to have a material effect on our financial condition or results of operations. Reference Rate Reform (Topic 848) Facilitation of the Effects of Reference Rate Reform on Financial Reporting (ASU 2020-04) This quarter we adopted ASU 2020-04 upon issuance. The amendments provide optional expedients and exceptions for certain contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of rate reform. The guidance is effective from the date of issuance until December 31, 2022. The guidance permits Key not to apply modification accounting or remeasure lease payments in lease contracts if the changes to the contract are related to the discontinuation of the reference rate. If certain criteria are met, the amendments also allow exceptions to the dedesignation criteria of the hedging relationship and the assessment of hedge effectiveness during the transition period. It also allows Key to make a one time election to sell, transfer, or both sell and transfer debt securities classified as held to maturity that reference a rate affected by reference rate reform and that are classified as held to maturity before January 1, 2020. This one time election may be made at any time after March 12, 2020, but no later than December 31, 2022. Key has not yet made a determination on whether it will make this election. At the time of adoption, the guidance did not have a significant impact on Key’s financial condition and results of operations. We will continue to assess the impact as the reference rate transition occurs over the next two years. |
Earnings Per Common Share
Earnings Per Common Share | 3 Months Ended |
Mar. 31, 2020 | |
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 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. Our basic and diluted earnings per Common Share are calculated as follows: Three months ended March 31, dollars in millions, except per share amounts 2020 2019 EARNINGS Income (loss) from continuing operations $ 145 $ 406 Less: Net income (loss) attributable to noncontrolling interests — — Income (loss) from continuing operations attributable to Key 145 406 Less: Dividends on Preferred Stock 27 20 Income (loss) from continuing operations attributable to Key common shareholders 118 386 Income (loss) from discontinued operations, net of taxes 1 1 Net income (loss) attributable to Key common shareholders $ 119 $ 387 WEIGHTED-AVERAGE COMMON SHARES Weighted-average Common Shares outstanding (000) 967,446 1,006,717 Effect of Common Share options and other stock awards 8,664 9,787 Weighted-average Common Shares and potential Common Shares outstanding (000) (a) 976,110 1,016,504 EARNINGS PER COMMON SHARE Income (loss) from continuing operations attributable to Key common shareholders $ .12 $ .38 Income (loss) from discontinued operations, net of taxes — — Net income (loss) attributable to Key common shareholders (b) .12 .38 Income (loss) from continuing operations attributable to Key common shareholders — assuming dilution $ .12 $ .38 Income (loss) from discontinued operations, net of taxes — assuming dilution — — Net income (loss) attributable to Key common shareholders — assuming dilution (b) .12 .38 (a) Assumes conversion of Common Share options and other stock awards and/or convertible preferred stock, as applicable. (b) EPS may not foot due to rounding. |
Loan Portfolio
Loan Portfolio | 3 Months Ended |
Mar. 31, 2020 | |
Loans Receivables [Abstract] | |
Loan Portfolio | 3. Loan Portfolio Loan Portfolio by Portfolio Segment and Financing Receivable (a) in millions March 31, 2020 December 31, 2019 Commercial and industrial (b) $ 55,983 $ 48,295 Commercial real estate: Commercial mortgage 13,548 13,491 Construction 1,710 1,558 Total commercial real estate loans 15,258 15,049 Commercial lease financing (c) 4,677 4,688 Total commercial loans 75,918 68,032 Residential — prime loans: Real estate — residential mortgage 7,498 7,023 Home equity loans 10,103 10,274 Total residential — prime loans 17,601 17,297 Consumer direct loans 3,833 3,513 Credit cards 1,041 1,130 Consumer indirect loans 4,805 4,674 Total consumer loans 27,280 26,614 Total loans (d) $ 103,198 $ 94,646 (a) Accrued interest of $241 million and $244 million at March 31, 2020 , and December 31, 2019 , respectively, presented in "other assets" on the Consolidated Balance Sheets is excluded from the amortized cost basis disclosed in this table. (b) Loan balances include $143 million and $144 million of commercial credit card balances at March 31, 2020 , and December 31, 2019 , respectively. (c) Commercial lease financing includes receivables held as collateral for a secured borrowing of $14 million and $15 million at March 31, 2020 , and December 31, 2019 , 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 20 (“ Long-Term Debt ”) beginning on page 163 of our 2019 Form 10-K. (d) Total loans exclude loans of $821 million at March 31, 2020 , and $865 million at December 31, 2019 |
Asset Quality
Asset Quality | 3 Months Ended |
Mar. 31, 2020 | |
Credit Loss [Abstract] | |
Asset Quality | 4. Asset Quality ALLL We estimate the appropriate level of the ALLL on at least a quarterly basis. The methodology is described in Note 1 (" Basis of Presentation and Accounting Policies ") under the heading "Allowance for Loan and Lease Losses" of this report. The ALLL at March 31, 2020 represents our current estimate of lifetime credit losses inherent in the loan portfolio at that date. The changes in the ALLL by loan category for the periods indicated are as follows: Three months ended March 31, 2020 : in millions January 1, 2020 Provision Charge-offs Recoveries March 31, 2020 Commercial and Industrial $ 410 $ 187 $ (60 ) $ 5 $ 542 Commercial real estate: Real estate — commercial mortgage 159 50 (3 ) 1 207 Real estate — construction 15 10 — — 25 Total commercial real estate loans 174 60 (3 ) 1 232 Commercial lease financing 43 3 (2 ) — 44 Total commercial loans 627 250 (65 ) 6 818 Real estate — residential mortgage 84 5 — — 89 Home equity loans 178 8 (4 ) 2 184 Consumer direct loans 97 29 (12 ) 2 116 Credit cards 82 31 (11 ) 2 104 Consumer indirect loans 36 16 (9 ) 5 48 Total consumer loans 477 89 (36 ) 11 541 Total ALLL — continuing operations 1,104 339 (a) (101 ) 17 1,359 Discontinued operations 41 3 (2 ) 1 43 Total ALLL — including discontinued operations $ 1,145 $ 342 $ (103 ) $ 18 $ 1,402 (a) Excludes a provision for losses on lending-related commitments of $20 million . As described in Note 1 (" Basis of Presentation and Accounting Policies "), we estimate the ALLL using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. In our estimation of expected credit losses, we use a two year reasonable and supportable period across all products. Following this two year period in which supportable forecasts can be generated, for all modeled loan portfolios, we revert expected credit losses to a level that is consistent with our historical information by reverting the macroeconomic variables (model inputs) to their long run average. We revert to historical loss rates for less complex estimation methods for smaller portfolios. A 20 year fixed length look back period is used to calculate the long run average of the macroeconomic variables. A four quarter reversion period is used where the macroeconomic variables linearly revert to their long run average following the two year reasonable and supportable period. We develop our reasonable and supportable forecasts using relevant data including, but not limited to, changes in economic output, unemployment rates, property values, and other factors associated with the credit losses on financial assets. Some macroeconomic variables apply to all portfolio segments, while others are more portfolio specific. The following table discloses the most significant macroeconomic variables to each loan portfolio. Segment Portfolio Significant Macroeconomic Variables (a) Commercial Commercial and industrial BBB corporate bond rate (spread), GDP, industrial production, and unemployment rate Commercial real estate BBB corporate bond rate (spread), property and real estate price indices, and unemployment rate Commercial lease financing BBB corporate bond rate (spread), GDP, and unemployment rate Consumer Real estate — residential mortgage GDP, home price index, unemployment rate, and 30 year mortgage rate Home equity Home price index, unemployment rate, and 30 year mortgage rate Consumer direct Unemployment rate and U.S. household income Consumer indirect New vehicle sales and unemployment rate Credit cards Unemployment rate and U.S. household income Discontinued operations Unemployment rate (a) Variables include all transformations and interactions with other risk drivers. Additionally, variables may have varying impacts at different points in the economic cycle. In addition to macroeconomic drivers, portfolio attributes such as remaining term, outstanding balance, risk ratings, FICO, and delinquency also drive ALLL changes. Our ALLL models were designed to capture the correlation between economic and portfolio changes. As such, evaluating shifts in individual portfolio attributes and macroeconomic variables in isolation may not be indicative of past or future performance. Economic Outlook As of March 31, 2020 , the COVID-19 pandemic has created unprecedented economic stress and uncertainty in the US and globally. We used a third-party economic forecast updated in March 2020 to estimate our expected credit losses as of March 31, 2020. This forecast considered the global pandemic impact as well as the United States' monetary and fiscal response and we determined such forecast to be a reasonable view of the outlook for the global economy given the available information at current quarter ended. The scenario includes a notable economic slowdown over the next two years in markets in which we operate. GDP is expected to decline significantly during 2Q20, recovering in late 2020. The unemployment rate remains elevated over the next year, starting a steady improvement in the second half of 2021. As of quarter-end, many sectors of the economy have essentially shut down, consumer spending has slowed, unemployment claims have increased, and there has been a decline in oil prices. However, the monetary and fiscal policy response, including the CARES Act, is intended to assist both consumers and businesses. While cognizant of potentially more adverse economic outlooks, we also considered that the government’s stimulus efforts and programs instituted by the Federal Reserve will partially offset the economic contraction and, as such, the scenario selected reasonably captured the ultimate expected loss experience for our portfolio as of March 31, 2020 . To the extent we identified incremental credit risk that was not captured by the third party economic forecast, we addressed the risk through qualitative adjustments. As a result of the unprecedented economic uncertainty caused by the COVID-19 pandemic, our future loss estimates may vary considerably as a result of changes in the economy from our March 31, 2020 assumptions as well as the magnitude of the pandemic and impact of the United States' monetary and fiscal response becomes more defined. Commercial Segment The ALLL from continuing operations for the commercial segment increased by $191 million , or 30.5% , from January 1, 2020. The overall increase in the allowance is driven by 1) updated economic forecasts that capture expected deterioration triggered by the global COVID-19 pandemic, 2) the negative impact on our oil & gas portfolio due to commodity price declines, and 3) significant portfolio growth within pass rated credits. The primary economic forecast drivers in the current environment are the unemployment rate, which impacts all commercial portfolios, and real estate price indices, which predominately impact our commercial real estate portfolio. While oil & gas price forecasts are included as economic variables in our commercial and industrial portfolio, we performed a detailed review of our oil & gas portfolio and applied additional incremental reserves to address the recent decline in oil & gas prices. From January 1, 2020 to March 31, 2020, commercial loans grew by $7.9 billion , or 11.6% , with the substantial growth primarily concentrated in pass rated credits. Additional portfolio drivers include risk ratings and remaining term, which remained relatively flat quarter-over-quarter across product types. Consumer Segment The ALLL from continuing operations for the consumer segment increased by $64 million , or 13.4% , from January 1, 2020. The overall increase in the allowance is driven by updated economic forecasts that capture expected deterioration triggered by the global COVID-19 pandemic. The main driver in the economic forecast is the notable increase in unemployment levels, which is most impactful for our credit card portfolio. Deterioration in the HPI outlook is also contributing to the ALLL increase for the residential mortgage and home equity books. Incremental credit risk considerations as a result of the pandemic, which may not be captured by the updated economic forecasts, are addressed through qualitative adjustments. As it relates to changes in the ALLL due to portfolio factors, minimal shifts are largely driven by targeted portfolio growth across several segments and ongoing portfolio seasoning activity. Three months ended March 31, 2019 : in millions December 31, 2018 Provision Charge-offs Recoveries March 31, 2019 Commercial and Industrial $ 532 $ 24 $ (36 ) $ 10 $ 530 Commercial real estate: Real estate — commercial mortgage 142 6 (5 ) 1 144 Real estate — construction 33 (1 ) (4 ) — 28 Total commercial real estate loans 175 5 (9 ) 1 172 Commercial lease financing 36 6 (8 ) 1 35 Total commercial loans 743 35 (53 ) 12 737 Real estate — residential mortgage 7 1 (1 ) 1 8 Home equity loans 35 3 (4 ) 2 36 Consumer direct loans 30 12 (10 ) 1 33 Credit cards 48 8 (11 ) 2 47 Consumer indirect loans 20 5 (8 ) 5 22 Total consumer loans 140 29 (34 ) 11 146 Total ALLL — continuing operations 883 64 (a) (87 ) 23 883 Discontinued operations 14 2 (4 ) 1 13 Total ALLL — including discontinued operations $ 897 $ 66 $ (91 ) $ 24 $ 896 (a) Excludes a credit for losses on lending-related commitments of $2 million . Credit Risk Profile 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 refreshed FICO score assigned for the consumer loan portfolios. The internal risk grades assigned to loans follow our definitions of Pass and Criticized, which are consistent with published definitions of regulatory risk classifications. Loans with a pass rating represent those loans not classified on our rating scale for problem credits, as minimal credit risk has been identified. Criticized loans are those loans that either have a potential weakness deserving management's close attention or have a well-defined weakness that may put full collection of contractual cash flows at risk. Borrower FICO scores provide information about the credit quality of our consumer loan portfolio as they provide an indication as to the likelihood that a debtor will repay its debts. The scores are obtained from a nationally recognized consumer rating agency and are presented in the tables below at the dates indicated. 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. Commercial Credit Exposure Credit Risk Profile by Creditworthiness Category and Vintage (a) As of March 31, 2020 Term Loans Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Loans Amortized Cost Basis Amortized Cost Basis by Origination Year and Internal Risk Rating in millions 2019 2018 2017 2016 2015 Prior Total Commercial and Industrial Risk Rating: Pass $ 3,137 $ 7,197 $ 5,497 $ 3,517 $ 2,541 $ 3,947 $ 28,058 $ 145 $ 54,039 Criticized (Accruing) 6 56 129 177 110 169 1,004 16 1,667 Criticized (Nonaccruing) — 25 16 36 8 62 126 4 277 Total commercial and industrial 3,143 7,278 5,642 3,730 2,659 4,178 29,188 165 55,983 Real estate — commercial mortgage Risk Rating: Pass 726 3,346 2,074 1,067 1,011 3,774 1,089 42 13,129 Criticized (Accruing) — 6 21 51 40 205 7 2 332 Criticized (Nonaccruing) — — 1 3 1 77 4 1 87 Total real estate — commercial mortgage 726 3,352 2,096 1,121 1,052 4,056 1,100 45 13,548 Real estate — construction Risk Rating: Pass 36 509 703 326 69 21 14 3 1,681 Criticized (Accruing) — — — — 23 3 1 — 27 Criticized (Nonaccruing) — — — — 2 — — 2 Total real estate — construction 36 509 703 326 92 26 15 3 1,710 Commercial lease financing Risk Rating: Pass 313 1,348 763 697 345 1,162 — — 4,628 Criticized (Accruing) — 2 6 12 12 12 — — 44 Criticized (Nonaccruing) — — 1 1 3 — — — 5 Total commercial lease financing 313 1,350 770 710 360 1,174 — 4,677 Total commercial loans $ 4,218 $ 12,489 $ 9,211 $ 5,887 $ 4,163 $ 9,434 $ 30,303 $ 213 $ 75,918 (a) Accrued interest of $142 million , presented in Other Assets on the Consolidated Balance Sheets, was excluded from the amortized cost basis disclosed in this table. Consumer Credit Exposure Credit Risk Profile by FICO Score and Vintage (a) As of March 31, 2020 Term Loans Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Loans Amortized Cost Basis Amortized Cost Basis by Origination Year and FICO Score in millions 2019 2018 2017 2016 2015 Prior Total Real estate — residential mortgage FICO Score: 750 and above $ 648 $ 1,923 $ 344 $ 368 $ 686 $ 1,662 — — $ 5,631 660 to 749 166 525 123 76 127 431 — — 1,448 Less than 660 5 36 28 12 33 223 — — 337 No Score — 4 3 7 5 63 — — 82 Total real estate — residential mortgage 819 2,488 498 463 851 2,379 — — 7,498 Home equity loans FICO Score: 750 and above 168 475 208 231 219 972 $ 2,898 $ 444 5,615 660 to 749 58 296 142 154 128 476 1,902 228 3,384 Less than 660 5 57 41 34 38 186 648 71 1,080 No Score 5 3 1 1 — 3 8 3 24 Total home equity loans 236 831 392 420 385 1,637 5,456 746 10,103 Consumer direct loans FICO Score: 750 and above 359 1,283 157 48 26 74 137 — 2,084 660 to 749 111 429 117 38 23 44 304 — 1,066 Less than 660 3 47 31 13 7 14 113 — 228 No Score 170 67 30 23 17 15 133 — 455 Total consumer direct loans 643 1,826 335 122 73 147 687 — 3,833 Credit cards FICO Score: 750 and above — — — — — — 459 — 459 660 to 749 — — — — — — 459 — 459 Less than 660 — — — — — — 122 — 122 No Score — — — — — — 1 — 1 Total credit cards — — — — — — 1,041 — 1,041 Consumer indirect loans FICO Score: 750 and above 383 1,066 476 278 124 114 — — 2,441 660 to 749 206 816 351 165 70 91 — — 1,699 Less than 660 38 259 154 89 47 48 — — 635 No Score 28 1 — — — 1 — — 30 Total consumer indirect loans 655 2,142 981 532 241 254 — — 4,805 Total consumer loans $ 2,353 $ 7,287 $ 2,206 $ 1,537 $ 1,550 $ 4,417 $ 7,184 $ 746 $ 27,280 (a) Accrued interest of $99 million , presented in Other Assets on the Consolidated Balance Sheets, was excluded from the amortized cost basis disclosed in this table. Nonperforming and Past Due Loans 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 ” Basis of Presentation and Accounting Policies ”) and Note 1 (“ Summary of Significant Accounting Policies ”) under the heading “Nonperforming Loans” beginning on page 101 of our 2019 Form 10-K. The following aging analysis of past due and current loans as of March 31, 2020 , and December 31, 2019 , provides further information regarding Key’s credit exposure. Aging Analysis of Loan Portfolio (a) March 31, 2020 Current 30-59 Days Past Due (b) 60-89 Days Past Due (b) 90 and Greater Days Past Due (b) Non-performing Loans (c) Total Past Due and Non-performing Loans (c) Total Loans (d) in millions LOAN TYPE Commercial and industrial $ 55,455 $ 100 $ 78 $ 73 $ 277 $ 528 $ 55,983 Commercial real estate: Commercial mortgage 13,381 28 34 18 87 167 13,548 Construction 1,702 4 — 2 2 8 1,710 Total commercial real estate loans 15,083 32 34 20 89 175 15,258 Commercial lease financing 4,644 14 5 9 5 33 4,677 Total commercial loans $ 75,182 $ 146 $ 117 $ 102 $ 371 $ 736 $ 75,918 Real estate — residential mortgage $ 7,397 $ 10 $ 2 $ — $ 89 $ 101 $ 7,498 Home equity loans 9,910 34 11 5 143 193 10,103 Consumer direct loans 3,801 17 4 7 4 32 3,833 Credit cards 1,015 7 5 11 3 26 1,041 Consumer indirect loans 4,740 32 8 3 22 65 4,805 Total consumer loans $ 26,863 $ 100 $ 30 $ 26 $ 261 $ 417 $ 27,280 Total loans $ 102,045 $ 246 $ 147 $ 128 $ 632 $ 1,153 $ 103,198 (a) Amounts in table represent amortized cost and exclude loans held for sale. (b) Accrued interest of $241 million presented in “other assets” on the Consolidated Balance Sheets is excluded from the amortized cost basis disclosed in this table. (c) PCI loans meeting nonperforming criteria were historically excluded from Key's nonperforming disclosures. As a result of CECL implementation on January 1, 2020, PCI loans became PCD loans. PCD loans that met the definition of nonperforming are now included in nonperforming disclosures. (d) Net of unearned income, net of deferred fees and costs, and unamortized discounts and premiums. December 31, 2019 Current 30-59 Days Past Due (b) 60-89 Days Past Due (b) 90 and Greater Days Past Due (b) Non-performing Loans Total Past Due and Non-performing Loans Purchased Credit Impaired Total Loans in millions LOAN TYPE Commercial and industrial $ 47,768 $ 110 $ 52 $ 53 $ 264 $ 479 48 $ 48,295 Commercial real estate: Commercial mortgage 13,258 8 5 13 83 109 124 13,491 Construction 1,551 3 — 1 2 6 1 1,558 Total commercial real estate loans 14,809 11 5 14 85 115 125 15,049 Commercial lease financing 4,647 22 11 2 6 41 — 4,688 Total commercial loans $ 67,224 $ 143 $ 68 $ 69 $ 355 $ 635 173 $ 68,032 Real estate — residential mortgage $ 6,705 $ 7 $ 5 $ 1 $ 48 $ 61 $ 257 $ 7,023 Home equity loans 10,071 30 10 5 145 190 13 10,274 Consumer direct loans 3,484 10 5 7 4 26 3 3,513 Credit cards 1,104 6 5 12 3 26 — 1,130 Consumer indirect loans 4,609 32 8 3 22 65 — 4,674 Total consumer loans $ 25,973 $ 85 $ 33 $ 28 $ 222 $ 368 $ 273 $ 26,614 Total loans $ 93,197 $ 228 $ 101 $ 97 $ 577 $ 1,003 $ 446 $ 94,646 (a) Amounts in table represent recorded investment and exclude loans held for sale. Recorded investment represents the principal amount of the loan increased or decreased by net deferred loan fees and costs, and unamortized premium or discount, and reflects direct charge-offs. (b) Past due loan amounts exclude PCI, even if contractually past due (or if we do not expect to collect principal or interest in full based on the original contractual terms), as we are currently accreting income over the remaining term of the loans. At March 31, 2020 , the approximate carrying amount of our commercial nonperforming loans outstanding represented 75% of their original contractual amount owed, total nonperforming loans outstanding represented 78% of their original contractual amount owed, and nonperforming assets in total were carried at 87% of their original contractual amount owed. Nonperforming loans reduced expected interest income by $6 million for the three months ended March 31, 2020 , and $8 million , for the three months ended March 31, 2019 . The amortized cost basis of nonperforming loans on nonaccrual status for which there is no related allowance for credit losses was $407 million at March 31, 2020 . Collateral-dependent Financial Assets We classify financial assets as collateral-dependent when our borrower is experiencing financial difficulty, and we expect repayment to be provided substantially through the operation or sale of the collateral. Our commercial loans have collateral that includes commercial machinery, commercial properties, and commercial real estate construction projects. Our consumer loans have collateral that includes residential real estate, automobiles, boats, and RVs. There were no significant changes in the extent to which collateral secures our collateral-dependent financial assets during the three months ended March 31, 2020 . TDRs 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. 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. The CARES Act and certain regulatory agencies recently issued guidance stating certain loan modifications to borrowers experiencing financial distress as a result of the economic impacts created by COVID-19 may not be required to be treated as TDRs under U.S GAAP. For COVID-19 related loan modifications which occurred from March 1, 2020, through March 31, 2020, and met the loan modification criteria under either the CARES Act or the criteria specified by the regulatory agencies, we elected to suspend TDR accounting for such loan modifications. Commitments outstanding to lend additional funds to borrowers whose loan terms have been modified in TDRs were $3 million and $5 million at March 31, 2020 , and December 31, 2019 , respectively. The consumer TDR other concession category in the table below primarily includes those borrowers’ debts that are discharged through Chapter 7 bankruptcy and have not been formally re-affirmed. At March 31, 2020 , and December 31, 2019 , the recorded investment of consumer residential mortgage loans in the process of foreclosure was approximately $71 million and $97 million , respectively. The following table shows the post-modification outstanding recorded investment by concession type for our commercial and consumer accruing and nonaccruing TDRs that occurred during the periods indicated: Three Months Ended March 31, in millions 2020 2019 Consumer loans: Interest rate reduction $ 9 $ 4 Other 9 9 Total $ 18 $ 13 Total TDRs $ 18 $ 13 The following table summarizes the change in the post-modification outstanding recorded investment of our accruing and nonaccruing TDRs during the periods indicated: Three Months Ended March 31, in millions 2020 2019 Balance at beginning of the period $ 347 $ 399 Additions 17 14 Payments (18 ) (39 ) Charge-offs (6 ) (9 ) Balance at end of period $ 340 $ 365 A further breakdown of TDRs included in nonperforming loans by loan category for the periods indicated are as follows: March 31, 2020 December 31, 2019 Number of Loans Pre-modification Outstanding Recorded Investment Post-modification Outstanding Recorded Investment Number of Loans Pre-modification Outstanding Recorded Investment Post-modification Outstanding Recorded Investment dollars in millions LOAN TYPE Nonperforming: Commercial and industrial 35 $ 65 $ 43 51 $ 72 $ 53 Commercial real estate: Commercial mortgage 7 64 58 6 64 58 Total commercial real estate loans 7 64 58 6 64 58 Total commercial loans 42 129 101 57 136 111 Real estate — residential mortgage 194 16 14 181 13 11 Home equity loans 625 38 37 713 42 41 Consumer direct loans 168 2 2 172 2 2 Credit cards 324 2 2 368 2 2 Consumer indirect loans 1,097 19 15 1,131 19 16 Total consumer loans 2,408 77 70 2,565 78 72 Total nonperforming TDRs 2,450 206 171 2,622 214 183 Prior-year accruing: (a) Commercial and industrial 5 30 25 6 30 25 Commercial real estate Commercial mortgage 1 1 — 1 — — Total commercial real estate loans 1 1 — 1 — — Total commercial loans 6 31 25 7 30 25 Real estate — residential mortgage 489 36 31 493 37 31 Home equity loans 1,839 110 90 1,751 104 84 Consumer direct loans 165 4 3 139 4 3 Credit cards 577 3 1 486 3 1 Consumer indirect loans 784 33 19 714 33 20 Total consumer loans 3,854 186 144 3,583 181 139 Total prior-year accruing TDRs 3,860 217 169 3,590 211 164 Total TDRs 6,310 $ 423 $ 340 6,212 $ 425 $ 347 (a) All TDRs that were restructured prior to January 1, 2020 , and January 1, 2019 , and are fully accruing. 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 March 31, 2020 , there were no commercial loan TDRs and 84 consumer loan TDRs with a combined recorded investment of $2 million that experienced payment defaults after modifications resulting in TDR status during 2019 . During the three months ended March 31, 2019 , there were no commercial loan TDRs and 74 consumer loan TDRs with a combined recorded investment of $2 million that experienced payment defaults after modifications resulting in TDR status during 2018 . Liability for Credit Losses on Off Balance Sheet Exposures The liability for credit losses inherent in unfunded lending-related commitments, such as letters of credit and unfunded loan commitments, and certain financial guarantees is included in “accrued expense and other liabilities” on the balance sheet. Changes in the liability for credit losses on off balance sheet exposures are summarized as follows: Three months ended March 31, in millions 2020 2019 Balance at the end of the prior period $ 68 $ 64 Liability for credit losses on contingent guarantees at the end of the prior period 7 — Cumulative effect from change in accounting principle (a), (b) 66 — Balance at beginning of period 141 64 Provision (credit) for losses on off balance sheet exposures 20 (2 ) Balance at end of period $ 161 $ 62 (a) The cumulative effect from change in accounting principle relates to the January 1, 2020, adoption of ASU 2016-13. (b) Excludes $4 million related to the provision for other financial assets. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 5. Fair Value Measurements In accordance with GAAP, Key measures certain assets and liabilities at fair value. Fair value is defined as the price to sell an asset or transfer a liability in an orderly transaction between market participants in our principal market. Additional information regarding our accounting policies for determining fair value is provided in Note 6 (“ Fair Value Measurements ”) and Note 1 (“ Summary of Significant Accounting Policies ”) under the heading “Fair Value Measurements” of our 2019 Form 10-K. Assets and Liabilities Measured at Fair Value on a Recurring Basis Certain assets and liabilities are measured at fair value on a recurring basis in accordance with GAAP. The following tables present these assets and liabilities at March 31, 2020 , and December 31, 2019 . March 31, 2020 December 31, 2019 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total in millions ASSETS MEASURED ON A RECURRING BASIS Trading account assets: U.S. Treasury, agencies and corporations — $ 556 — $ 556 — $ 843 — $ 843 States and political subdivisions — 19 — 19 — 30 — 30 Other mortgage-backed securities — 176 — 176 — 78 — 78 Other securities — 38 — 38 — 44 — 44 Total trading account securities — 789 — 789 — 995 — 995 Commercial loans — 6 — 6 — 45 — 45 Total trading account assets — 795 — 795 — 1,040 — 1,040 Securities available for sale: U.S. Treasury, agencies and corporations — 341 — 341 — 334 — 334 States and political subdivisions — 4 — 4 — 4 — 4 Agency residential collateralized mortgage obligations — 12,045 — 12,045 — 12,783 — 12,783 Agency residential mortgage-backed securities — 1,539 — 1,539 — 1,714 — 1,714 Agency commercial mortgage-backed securities — 6,869 — 6,869 — 6,997 — 6,997 Other securities — — $ 9 9 — — $ 11 11 Total securities available for sale — 20,798 9 20,807 — 21,832 11 21,843 Other investments: Principal investments: Direct — — 1 1 — — 1 1 Indirect (measured at NAV) (a) — — — 64 — — — 68 Total principal investments — — 1 65 — — 1 69 Equity investments: Direct — — 10 10 — — 12 12 Direct (measured at NAV) (a) — — — 1 — — — 1 Indirect (measured at NAV) (a) — — — 8 — — — 8 Total equity investments — — 10 19 — — 12 21 Total other investments — — 11 84 — — 13 90 Loans, net of unearned income (residential) — — 3 3 — — 4 4 Loans held for sale (residential) — 142 10 152 — 140 — 140 Derivative assets: Interest rate — 1,845 96 1,941 — 941 22 963 Foreign exchange 124 40 — 164 $ 49 18 — 67 Commodity — 704 — 704 — 208 — 208 Credit — 6 5 11 — — 1 1 Other — 34 23 57 — 9 5 14 Derivative assets 124 2,629 124 2,877 49 1,176 28 1,253 Netting adjustments (b) — — — (809 ) — — — (473 ) Total derivative assets 124 2,629 124 2,068 49 1,176 28 780 Accrued income and other assets — — — — — — — — Total assets on a recurring basis at fair value $ 124 $ 24,364 $ 157 $ 23,909 $ 49 $ 24,188 $ 56 $ 23,897 LIABILITIES MEASURED ON A RECURRING BASIS Bank notes and other short-term borrowings: Short positions $ 124 $ 482 — $ 606 $ 19 $ 686 — $ 705 Derivative liabilities: Interest rate — 329 — 329 — 253 — 253 Foreign exchange 117 40 — 157 43 17 — 60 Commodity — 690 — 690 — 200 — 200 Credit — — $ 28 28 — 1 9 10 Other — 40 — 40 — 10 — 10 Derivative liabilities 117 1,099 28 1,244 43 481 9 533 Netting adjustments (b) — — — (595 ) — — — (335 ) Total derivative liabilities 117 1,099 28 649 43 481 9 198 Total liabilities on a recurring basis at fair value $ 241 $ 1,581 $ 28 $ 1,255 $ 62 $ 1,167 9 $ 903 (a) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheet. (b) 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. 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. Qualitative Disclosures of Valuation Techniques The following table describes the valuation techniques and significant inputs used to measure the classes of assets and liabilities reported at fair value on a recurring basis, as well as the classification of each within the valuation hierarchy. Asset/liability class Valuation technique Valuation hierarchy classification(s) Securities (trading account assets and available for sale) Fair value of level 1 securities is determined by: • Quoted market prices available in an active market for identical securities. This includes exchange-traded equity securities. Fair value of level 2 securities is determined by: • Pricing models (either by a third party pricing service or internally). Inputs include: yields, benchmark securities, bids, 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. • Observable market prices of similar securities. Fair value of level 3 securities is determined by: • Internal models, principally discounted cash flow models (income approach). • Revenue multiples of comparable public companies (market approach). For level 3 securities, increases (decreases) in the discount rate and marketability discount used in the discounted cash flow models would have resulted in lower (higher) fair value measurements. Higher volatility factors would have further magnified changes in fair value. 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. Level 1, 2, and 3 (primarily Level 2) Commercial loans (trading account assets) Fair value is based on: • Observable market price spreads for similar loans. Valuations reflect prices within the bid-ask spread that are most representative of fair value. Level 2 Principal investments (direct) Direct principal investments consist of equity and debt instruments of private companies made by our principal investing entities. Fair value is determined using: • Operating performance and market multiples of comparable businesses • Other unique facts and circumstances related to each individual investment Direct principal investments 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. We are in the process of winding down our direct principal investment portfolio. As of March 31, 2020, the balance is less than $1 million. Level 3 Principal investments (indirect) Indirect principal 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 and qualify for the practical expedient 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). Indirect principal investments are also accounted for as investment companies, whereby each investment is adjusted to fair value with any net realized or unrealized gain/loss recorded in the current period’s earnings. Under the provisions of the Volcker Rule, we are required to dispose or conform our indirect investments to the requirements of the statute by no later than July 21, 2022. As of March 31, 2020, we have not committed to a plan to sell these investments. Therefore, these investments continue to be valued using the net asset value per share methodology. NAV The following table presents the fair value of our direct and indirect principal investments and related unfunded commitments at March 31, 2020 , as well as financial support provided for the three months ended March 31, 2020 , and March 31, 2019 . Financial support provided Three months ended March 31, March 31, 2020 2020 2019 in millions Fair Value Unfunded Commitments Funded Commitments Funded Other Funded Commitments Funded Other INVESTMENT TYPE Direct investments $ 1 — — $ — — $ 1 Indirect investments (measured at NAV) (a) 64 $ 20 $ — — $ 1 — Total $ 65 $ 20 — $ — $ 1 $ 1 (a) 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. At March 31, 2020 , no significant liquidation of the underlying investments has been communicated to Key. 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. Asset/liability class Valuation technique Valuation hierarchy classification(s) Other direct equity investments Fair value is determined using: • Discounted cash flows • Operating performance and market/exit multiples of comparable businesses • Other unique facts and circumstances related to each individual investment For level 3 securities, increases (decreases) in the discount rate and marketability discount used in the discounted cash flow models would have resulted in lower (higher) fair value measurements. Higher volatility factors would have further magnified changes in fair value. Level 2 investments reflect the price of recent investments, which is deemed representative of fair value. Level 2 and 3 Other direct and indirect equity investments (NAV) Certain direct investments do not have readily determinable fair values and qualify for the practical expedient in the accounting guidance that allows us to estimate fair value based upon net asset value per share. NAV Loans held for sale and held for investment (residential) Residential mortgage loans held for sale are accounted for at fair value. The election of the fair value option aligns the accounting for these assets with the related forward loan sale commitments. Fair values are based on: • Quoted market prices, where available • Prices for other traded mortgage loans with similar characteristics • Purchase commitments and bid information received from market participants Prices are adjusted as necessary to include: • The embedded servicing value in the loans • The specific characteristics of certain loans that are priced based on the pricing of similar loans. (These adjustments represent unobservable inputs to the valuation but are not considered significant given the relative insensitivity of the value to changes in these inputs to the fair value of the loans.) Residential loans held for investment: Certain residential loans held for sale contain salability exceptions that make them unable to be sold into the performing loan sales market. Loans in this category are transferred to the held to maturity loan portfolio and are included in “Loans, net of unearned income” on the balance sheet. This type of loan is classified as level 3 in the valuation hierarchy as transaction details regarding sales of this type of loan are often unavailable. Fair value is based upon: • Unobservable bid information from brokers and investors Higher (lower) unobservable bid information would have resulted in higher (lower) fair value measurements. Level 1, 2 and 3 (primarily level 2) Derivatives Exchange-traded derivatives are valued using quoted prices in active markets and, therefore, are classified as Level 1 instruments. The majority of our derivative positions are level 2 and are valued using internally developed models based on market convention and observable market inputs. These derivative contracts include interest rate swaps, certain options, floors, cross currency swaps, credit default swaps, and forward mortgage loan sale commitments. Significant inputs used in the valuation models include: • Interest rate curves • Yield curves • LIBOR and Overnight Index Swap (OIS) discount rates • LIBOR and OIS curves, index pricing curves, foreign currency curves • Volatility surfaces (a three-dimensional graph of implied volatility against strike price and maturity) Level 1, 2, and 3 (primarily level 2) Asset/liability class Valuation technique Valuation hierarchy classification(s) Derivatives (continued) We have 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, including: • Credit spreads and interest rates The unobservable internally derived assumptions include: • Loss given default • Internal risk assessments of customers and the remaining term of the underlying transactions 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. We use interest rate lock commitments for our residential mortgage business, which are classified as Level 3 instruments. The significant components of the valuation model include: • Interest rates observable in the market • Investor supplied prices for similar securities • The probability of the loan closing (i.e. the "pull-through" amount, a significant unobservable input). Increases (decreases) in the probability of the loan closing would have resulted in higher (lower) fair value measurements. Valuation of residential mortgage forward sale commitments utilizes observable market prices of comparable commitments and mortgage securities (Level 2). Level 1, 2, and 3 (primarily level 2) Liability for short positions This includes fixed income securities held by our broker dealer in its trading inventory. Fair value of level 1 securities is determined by: • Quoted market prices available in an active market for identical securities Fair value of level 2 securities is determined by: • Observable market prices of similar securities • Market activity, spreads, credit ratings and interest rates for each security type Level 1 and 2 Changes in Level 3 Fair Value Measurements The following table shows the components of the change in the fair values of our Level 3 financial instruments measured at fair value on a recurring basis for the three months ended March 31, 2020 , and March 31, 2019 . in millions Beginning of Period Balance Gains (Losses) Included in Other Comprehensive Income Gains (Losses) Included in Earnings Purchases Sales Settlements Transfers Other Transfers into Level 3 Transfers out of Level 3 End of Period Balance Unrealized Gains (Losses) Included in Earnings Three months ended March 31, 2020 Securities available for sale Other securities $ 11 $ (2 ) — — — — — — — $ 9 — Other investments Principal investments Direct 1 — — $ — $ — — — — — 1 — Equity investments Direct 12 — (2 ) (a) — — — — $ — — 10 (2 ) (a) Loans held for sale (residential) — — — — — — $ 10 — — 10 — Loans, net of unearned income (residential) 4 — — — (1 ) — — — — 3 — Derivative instruments (b) Interest rate 22 — $ 19 (c) 11 (1 ) — — 55 (d) $ (10 ) (d) 96 — Credit (8 ) — (16 ) (c) 1 — — — — — (23 ) — Other (e) 5 — — — — — 18 — — 23 — in millions Beginning of Period Balance Gains (Losses) Included in Other Comprehensive Income Gains (Losses) Included in Earnings Purchases Sales Settlements Transfers Other Transfers into Level 3 Transfers out of Level 3 End of Period Balance Unrealized Gains (Losses) Included in Earnings Three months ended March 31, 2019 Securities available for sale Other securities $ 20 5 — — — — — — — $ 25 — Other investments Principal investments Direct (a) 1 — — $ 1 $ (1 ) — — — — 1 — Equity investments Direct 7 — — — — — — $ 1 — 8 — Loans held for sale (residential) — — — — — — $ 1 — — 1 — Loans, net of unearned income (residential) 3 — — — — — — — — 3 — Derivative instruments (b) Interest rate 5 — $ 1 (c) — — — — 1 (d) $ (4 ) (d) 3 — Credit — — — (1 ) — $ — — — — (1 ) — Other (e) 3 — — — — — $ 1 — — 4 — (a) Realized and unrealized gains and losses on principal investments and other equity investments are reported in “other income” on the income statement. (b) Amounts represent Level 3 derivative assets less Level 3 derivative liabilities. (c) Realized and unrealized gains and losses on derivative instruments are reported in “corporate services income” and “other income” on the income statement. (d) 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. (e) Amounts represent Level 3 interest rate lock commitments. 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 March 31, 2020 , and December 31, 2019 . The following table presents our assets measured at fair value on a nonrecurring basis at March 31, 2020 , and December 31, 2019 : March 31, 2020 December 31, 2019 in millions Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total ASSETS MEASURED ON A NONRECURRING BASIS Impaired loans and leases — $ — $ 33 $ 33 — — $ 76 $ 76 Accrued income and other assets — — 64 64 — 118 51 169 Total assets on a nonrecurring basis at fair value — $ — $ 97 $ 97 — 118 $ 127 $ 245 Qualitative Disclosures of Valuation Techniques The following table describes the valuation techniques and significant inputs used to measure the significant classes of assets and liabilities reported at fair value on a nonrecurring basis, as well as the classification of each within the valuation hierarchy. Asset/liability class Valuation technique Valuation hierarchy classification(s) Impaired loans and leases Loans are evaluated for impairment on a quarterly basis; impairment typically occurs when there is evidence of a probable loss and the expected value of the loan is less than the contractual value of the loan. 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 (Level 3), or the loan’s observable market price based on recent sales of similar loans and collateral (Level 2). Cash flow analysis considers internally developed inputs including: • Discount rates • Default rates • Changes in collateral values and costs of foreclosure Level 2 and 3 Commercial loans and student loans held for sale Through a quarterly analysis of our loan portfolios held for sale, which include both performing and nonperforming commercial loans and student loans, we determine any adjustments necessary to record the portfolios at the lower of cost or fair value in accordance with GAAP. Valuation inputs include: • Non-binding bids for the respective loans or similar loans • Recent sales transactions • Internal models that emulate recent securitizations Level 2 and 3 Asset/liability class Valuation technique Valuation hierarchy classification(s) Direct financing leases and operating lease assets held for sale Valuations of direct financing leases and operating lease assets held for sale are performed using an internal model that relies on market data, including: • Swap rates and bond ratings • Our own assumptions about the exit market for the leases • Details about the individual leases in the portfolio Leases for which we receive a current nonbinding bid, and for which the sale is considered probable, may be classified as Level 2. Valuations of lease and operating lease assets held for sale that employ our own assumptions are classified as Level 3 assets. The inputs based on our own assumptions include changes in the value of leased items and internal credit ratings. Level 2 and 3 OREO, other repossessed personal property, and right-of-use assets (a) OREO, other repossessed properties, and right-of-use assets are valued based on: • 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. Level 2 and 3 LIHTC, HTC, and NMTC investments (a) Valuation of LIHTC, HTC and NMTC involves measuring the present value of future tax benefits and comparing that value against the current carrying value of the investment. Expected future tax benefits are discounted to their present value using discounted cash flow modeling that incorporates an appropriate risk premium. LIHTC and HTC investments are impaired when it is more likely than not that the carrying amount of the investment will not be realized. Level 3 Other equity investments We have other investments in equity securities that do not have readily determinable fair values and do not qualify for the practical expedient to measure the investment using a net asset value per share. We have elected to measure these securities at cost less impairment plus or minus adjustments due to observable orderly transactions. Impairment is recorded when there is evidence that the expected fair value of the investment has declined to below the recorded cost. At each reporting period, we assess if these investments continue to qualify for this measurement alternative. Level 3 Mortgage Servicing Assets ( a) Refer to Note 8. Mortgage Servicing Assets Level 3 (a) Asset classes included in “Accrued income and other assets” on the Consolidated Balance Sheets Quantitative Information about Level 3 Fair Value Measurements The range and weighted-average of the significant unobservable inputs used to fair value our material Level 3 recurring and nonrecurring assets at March 31, 2020 , and December 31, 2019 , along with the valuation techniques used, are shown in the following table: Level 3 Asset (Liability) Valuation Technique Significant Unobservable Input Range (Weighted-Average) (b), (c) dollars in millions March 31, 2020 December 31, 2019 March 31, 2020 December 31, 2019 Recurring Securities available-for-sale: Other securities $ 9 $ 11 Discounted cash flows Discount rate N/A (14.82%) N/A (16.10%) Marketability discount N/A (30.00%) N/A (30.00%) Volatility factor N/A (43.00%) N/A (43.00%) Other investments: (a) Equity investments Direct 10 12 Discounted cash flows Discount rate 12.40 - 17.03% (14.75%) 13.91 - 17.24% (15.61%) Marketability discount N/A (30.00%) N/A (30.00%) Volatility factor N/A (51.00%) N/A (47.00%) Loans held for sale (residential) 10 — Market comparable pricing Comparability factor 104.15-107.01% (105.25%) N/A Loans, net of unearned income (residential) 3 4 Market comparable pricing Comparability factor 79.00-98.00% (91.07%) 79.00 - 98.00% (91.05%) Derivative instruments: Interest rate 96 22 Discounted cash flows Probability of default .02 - 100% (13.90%) .02 - 100% (5.40%) Internal risk rating 1 - 19 (9.178) 1 - 19 (9.168) Loss given default 0 - 1 (.476) 0 - 1 (.492) Credit (assets) 5 1 Discounted cash flows Probability of default .02 - 100% (13.30%) .02 - 100% (4.2%) Internal risk rating 1 - 19 (10.14) 1 - 19 (10.13) Loss given default 0 - 1 (.493) 0 - 1 (.498) Credit (liabilities) (28 ) (9 ) Discounted cash flows Probability of default .02 - 100% (25.19%) .02 - 100% (12.24%) Internal risk rating 1 - 19 (7.76) 1 - 19 (8.058) Loss given default 0 - 1 (.394) 0 - 1 (.411) Other (d) 23 5 Discounted cash flows Loan closing rates 27.34-99.31 % (74.08%) 37.71 - 99.69% (79.33%) Nonrecurring Impaired loans 33 76 Fair value of underlying collateral Discount rate 0 - 90.00% (23.00%) 0 - 60.00% (10.00%) Accrued income and other assets: OREO and other Level 3 assets (e) 2 5 Appraised value Appraised value N/M N/M (a) Principal investments, direct is excluded from this table as the balance at March 31, 2020 , and December 31, 2019 , is insignificant (less than $1 million ). (b) The weighted average of significant unobservable inputs is calculated using a weighting relative to fair value. (c) For significant unobservable inputs with no range, a single figure is reported to denote the single quantitative factor used. (d) Amounts represent interest rate lock commitments. (e) Excludes $62 million and $46 million pertaining to mortgage servicing assets at March 31, 2020 and December 31, 2019 . Refer to Note 8 (“ Mortgage Servicing Assets ”) for significant unobservable inputs pertaining to these assets. Fair Value Disclosures of Financial Instruments The levels in the fair value hierarchy ascribed to our financial instruments and the related carrying amounts at March 31, 2020 , and December 31, 2019 , are shown in the following tables. Assets and liabilities are further arranged by measurement category. March 31, 2020 Fair Value in millions Carrying Amount Level 1 Level 2 Level 3 Measured at NAV Netting Adjustment Total ASSETS (by measurement category) Fair value - net income Trading account assets (b) $ 795 $ — $ 795 — — — $ 795 Other investments (b) 679 — — $ 606 $ 73 — 679 Loans, net of unearned income (residential) (d) 3 — — 3 — — 3 Loans held for sale (residential) (b) 152 — 142 10 — — 152 Derivative assets - trading (b) 2,008 124 2,563 124 — $ (803 ) (f) 2,008 Fair value - OCI Securities available for sale (b) 20,807 — 20,798 $ 9 — — 20,807 Derivative assets - hedging (b)(g) 60 — 66 — — (6 ) (f) 60 Amortized cost Held-to-maturity securities (c) 9,638 — 10,012 — — — 10,012 Loans, net of unearned income (d) 101,836 — — 99,535 — — 99,535 Loans held for sale (b) 1,991 — — 1,991 — — 1,991 Other Cash and short-term investments (a) 4,938 4,938 — — — — 4,938 LIABILITIES (by measurement category) Fair value - net income Derivative liabilities - trading (b) $ 649 $ 117 $ 1,096 28 — $ (592 ) (f) $ 649 Fair value - OCI Derivative liabilities - hedging (b)(g) — — 3 — — (3 ) (f) — Amortized cost Time deposits (e) 10,253 — 10,336 — — — 10,336 Short-term borrowings (a) 7,050 124 6,926 — — — 7,050 Long-term debt (e) 13,732 13,144 715 — — — 13,859 Other Deposits with no stated maturity (a) 105,051 — 105,051 — — — 105,051 December 31, 2019 Fair Value in millions Carrying Amount Level 1 Level 2 Level 3 Measured at NAV Netting Adjustment Total ASSETS (by measurement category) Fair value - net income Trading account assets (b) $ 1,040 — $ 1,040 — — — $ 1,040 Other investments (b) 605 — — $ 528 $ 77 — 605 Loans, net of unearned income (residential) (d) 4 — — 4 — — 4 Loans held for sale (residential) (b) 140 — 140 — — — 140 Derivative assets - trading (b) 715 $ 49 985 28 — $ (347 ) (f) 715 Fair value - OCI Securities available for sale (b) 21,843 — 21,832 11 — — 21,843 Derivative assets - hedging (b)(g) 65 — 191 — — (126 ) (f) 65 Amortized cost Held-to-maturity securities (c) 10,067 — 10,116 — — — 10,116 Loans, net of unearned income (d) 93,742 — — 92,641 — — 92,641 Loans held for sale (b) 1,194 — — 1,194 — — 1,194 Other Cash and short-term investments (a) 2,004 2,004 — — — — 2,004 LIABILITIES (by measurement category) Fair value - net income Derivative liabilities - trading (b) $ 194 $ 43 $ 461 9 — $ (319 ) (f) $ 194 Fair value - OCI Derivative liabilities - hedging (b)(g) 4 — 20 — — (16 ) (f) 4 Amortized cost Time deposits (e) 11,652 — 11,752 — — — 11,752 Short-term borrowings (a) 1,092 19 1,073 — — — 1,092 Long-term debt (e) 12,448 12,694 249 — — — 12,943 Other Deposits with no stated maturity (a) 100,218 — 100,218 — — — 100,218 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 and Liabilities Measured at Fair Value on a Nonrecurring Basis” in this Note. Investments accounted for under the cost method (or cost less impairment adjusted for observable price changes for certain equity investments) are classified as Level 3 assets. These investments are not actively traded in an open market as sales for these types of investments are rare. The carrying amount of the investments carried at cost are adjusted for declines in value if they are considered to be other-than-temporary (or due to observable orderly transactions of the same issuer for equity investments eligible for the cost less impairment measurement alternative). These adjustments are included in “other income” on the income statement. (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 that 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 the 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. (g) Derivative assets-hedging and derivative liabilities-hedging includes both cash flow and fair value hedges. Additional information regarding our accounting policies for cash flow and fair value hedges is provided in Note 1 (“ 1. Summary of Significant Accounting Policies ”) under the heading “Derivatives and Hedging” beginning on page 105 of our 2019 Form 10-K. DIscontin |
Securities
Securities | 3 Months Ended |
Mar. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities | 6. Securities The amortized cost, unrealized gains and losses, and approximate fair value of our securities available for sale and held-to-maturity securities are presented in the following tables. Gross unrealized gains and losses represent the difference between the amortized cost and the fair value of securities on the balance sheet as of the dates indicated. Accordingly, the amount of these gains and losses may change in the future as market conditions change. March 31, 2020 December 31, 2019 in millions Amortized Cost (a) Gross Unrealized Gains Gross Unrealized Losses Fair Value Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value SECURITIES AVAILABLE FOR SALE U.S. Treasury, agencies, and corporations $ 340 $ 1 — $ 341 $ 334 — — $ 334 States and political subdivisions 4 — — 4 4 — — 4 Agency residential collateralized mortgage obligations 11,705 342 $ 2 12,045 12,772 $ 82 $ 71 12,783 Agency residential mortgage-backed securities 1,472 67 — 1,539 1,677 41 4 1,714 Agency commercial mortgage-backed securities 6,597 277 5 6,869 6,898 139 40 6,997 Other securities 8 1 — 9 7 4 — 11 Total securities available for sale $ 20,126 $ 688 $ 7 $ 20,807 $ 21,692 $ 266 $ 115 $ 21,843 HELD-TO-MATURITY SECURITIES Agency residential collateralized mortgage obligations $ 5,354 $ 157 — $ 5,511 $ 5,692 $ 23 $ 49 $ 5,666 Agency residential mortgage-backed securities 390 19 — 409 409 6 — 415 Agency commercial mortgage-backed securities 3,868 198 — 4,066 3,940 78 9 4,009 Asset-backed securities 11 — — 11 11 — — 11 Other securities 15 — — 15 15 — — 15 Total held-to-maturity securities $ 9,638 $ 374 — $ 10,012 $ 10,067 $ 107 $ 58 $ 10,116 (a) Amortized cost amounts exclude accrued interest receivable which is recorded within “other assets” on the balance sheet. At March 31, 2020 , accrued interest receivable on available for sale securities and held-to-maturity securities totaled $42 million and $19 million , respectively. The following table summarizes available for sale securities in an unrealized loss position for which an allowance for credit losses has not been recorded as of March 31, 2020 , and December 31, 2019 . Duration of Unrealized Loss Position Less than 12 Months 12 Months or Longer Total in millions Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses March 31, 2020 Securities available for sale: Agency residential collateralized mortgage obligations $ 135 — (a) $ 416 $ 2 $ 551 $ 2 Agency residential mortgage-backed securities 10 — (a) 7 — (a) 17 — Agency commercial mortgage-backed securities 1,083 $ 5 — — 1,083 5 Other securities 1 — (a) — — 1 — Held-to-maturity securities: Agency residential collateralized mortgage obligations 8 — (a) 60 — (a) 68 — Asset-backed securities 2 — (a) — — 2 — Other securities 8 — (a) — — 8 — Total securities in an unrealized loss position $ 1,247 $ 5 $ 483 $ 2 $ 1,730 $ 7 December 31, 2019 Securities available for sale: U.S. Treasury, agencies, and corporations $ 30 — (b) $ 30 — (b) $ 60 — Agency residential collateralized mortgage obligations 3,432 $ 20 3,221 $ 51 6,653 $ 71 Agency residential mortgage-backed securities 33 — (b) 629 4 662 4 Agency commercial mortgage-backed securities 1,541 17 1,213 23 2,754 40 Held-to-maturity securities: Agency residential collateralized mortgage obligations 1,626 14 2,289 35 3,915 49 Agency residential mortgage-backed securities 56 — (b) — — 56 — Agency commercial mortgage-backed securities 518 9 — — 518 9 Asset-backed securities 11 — (b) — — 11 — Other securities 3 — (b) — — 3 — Total securities in an unrealized loss position $ 7,250 $ 60 $ 7,382 $ 113 $ 14,632 $ 173 (a) At March 31, 2020 , gross unrealized losses totaled less than $1 million for agency residential collateralized mortgage obligations, agency residential mortgage-backed securities, and other securities available for sale with a loss duration of less than 12 months. At March 31, 2020 , gross unrealized losses totaled less than $1 million for agency residential collateralized mortgage obligations, asset-backed securities, and other securities held-to-maturity with a loss duration of less than 12 months. At March 31, 2020 , gross unrealized losses totaled less than $1 million for agency residential mortgage-backed securities available for sale with a loss duration greater than 12 months or longer. At March 31, 2020 , gross unrealized losses totaled less than $1 million for agency residential collateralized mortgage obligations held-to-maturity with a loss duration greater than 12 months or longer. (b) At December 31, 2019 , gross unrealized losses totaled less than $1 million for U.S. Treasury, agencies, and corporations and agency residential mortgage-backed securities available for sale with a loss duration of less than 12 months. At December 31, 2019 , gross unrealized losses totaled less than $1 million for U.S. Treasury, Agencies, and Corporations securities available for sale with a loss duration greater than 12 months or longer. At December 31, 2019 , gross unrealized losses totaled less than $1 million for agency residential residential mortgage-backed securities, asset-backed securities, and other securities held-to-maturity with a loss duration of less than 12 months. Based on our evaluation at March 31, 2020 , under the new impairment model, an allowance for credit losses has not been recorded nor have unrealized losses been recognized into income. The issuers of the securities are of high credit quality and have a long history of no credit losses, management does not intend to sell and it is likely that management will not be required to sell the securities prior to their anticipated recovery, and the decline in fair value is largely attributed to changes in interest rates and other market conditions. The issuers continue to make timely principle and interest payments. At March 31, 2020 , securities available for sale and held-to-maturity securities totaling $8.4 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 our securities by remaining maturity. CMOs and other mortgage-backed securities in the available for sale portfolio and 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. March 31, 2020 Securities Available for Sale Held to Maturity Securities in millions Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ 571 $ 577 $ 60 $ 61 Due after one through five years 14,660 15,101 6,690 6,881 Due after five through ten years 4,893 5,127 2,888 3,070 Due after ten years 2 2 — — Total $ 20,126 $ 20,807 $ 9,638 $ 10,012 |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 3 Months Ended |
Mar. 31, 2020 | |
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. 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 our loan portfolio, hedge against changes in foreign currency exchange rates, and meet client financing and hedging needs. At March 31, 2020 , after taking into account the effects of bilateral collateral and master netting agreements, we had $60 million of derivative assets and less than $1 million of derivative liabilities that relate to contracts entered into for hedging purposes. 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 $2.1 billion and derivative liabilities of $649 million that were not designated as hedging instruments. These positions are primarily comprised of derivative contracts entered into for client accommodation purposes. Additional information regarding our accounting policies for derivatives is provided in Note 1 (“ Summary of Significant Accounting Policies ”) under the heading “Derivatives and Hedging” beginning on page 105 of our 2019 Form 10-K. Our derivative strategies and related risk management objectives are described in Note 8 (“ Derivatives and Hedging Activities ”) beginning on page 134 of our 2019 Form 10-K. Fair Values, Volume of Activity, and Gain/Loss Information Related to Derivative Instruments The following table summarizes the fair values of our derivative instruments on a gross and net basis as of March 31, 2020 , and December 31, 2019 . The derivative asset and liability balances are presented on a gross basis, prior to the application of bilateral collateral and master netting agreements, but after the variation margin payments with central clearing organizations have been applied as settlement, as applicable. 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. Securities collateral related to legally enforceable master netting agreements is not offset on the balance sheet. Our derivative instruments are included in “accrued income and other assets” or “accrued expenses and other liabilities” on the balance sheet, as follows: March 31, 2020 December 31, 2019 Fair Value Fair Value in millions Notional Amount Derivative Assets Derivative Liabilities Notional Amount Derivative Assets Derivative Liabilities Derivatives designated as hedging instruments: Interest rate $ 25,804 $ 66 $ 3 $ 39,208 $ 191 $ 20 Derivatives not designated as hedging instruments: Interest rate 77,335 1,875 326 71,209 772 233 Foreign exchange 6,340 164 157 6,572 67 60 Commodity 4,556 704 690 5,324 208 200 Credit 959 11 28 427 1 10 Other (a) 5,408 57 40 3,337 14 10 Total 94,598 2,811 1,241 86,869 1,062 513 Netting adjustments (b) — (809 ) (595 ) — (473 ) (335 ) Net derivatives in the balance sheet 120,402 2,068 649 126,077 780 198 Other collateral (c) — (3 ) — — (2 ) (42 ) Net derivative amounts $ 120,402 $ 2,065 $ 649 $ 126,077 $ 778 $ 156 (a) Other derivatives include interest rate lock commitments and forward sale commitments related to our residential mortgage banking activities, forward purchase and sales contracts consisting of contractual commitments associated with “to be announced” securities and when-issued securities, and other customized derivative contracts. (b) 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. (c) 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. During the three -month period ended March 31, 2020 , we did not exclude any portion of fair value hedging instruments from the assessment of hedge effectiveness. The following tables summarize the amounts that were recorded on the balance sheet as of March 31, 2020 , and December 31, 2019 , related to cumulative basis adjustments for fair value hedges. March 31, 2020 in millions Balance sheet line item in which the hedge item is included Carrying amount of hedged item (a) Hedge accounting basis adjustment (b) Interest rate contracts Long-term debt $ 7,774 $ 533 December 31, 2019 Balance sheet line item in which the hedge item is included Carrying amount of hedged item (a) Hedge accounting basis adjustment (b) Interest rate contracts Long-term debt $ 8,408 $ 240 (a) The carrying amount represents the portion of the liability designated as the hedged item. (b) Basis adjustments related to de-designated hedged items that no longer qualify as fair value hedges reduced the hedge accounting basis adjustment by $9 million and $9 million at March 31, 2020 , and December 31, 2019 , respectively, Cash flow hedges. During the three -month period ended March 31, 2020 , we did not exclude any portion of cash flow hedging instruments from the assessment of hedge effectiveness. Considering the interest rates, yield curves, and notional amounts as of March 31, 2020 , we expect to reclassify an estimated $242 million of after-tax net gains on derivative instruments designated as cash flow hedges from AOCI to income during the next 12 months . In addition, we expect to reclassify approximately $86 million of net gains related to terminated cash flow hedges from AOCI to income during the next 12 months. As of March 31, 2020 , the maximum length of time over which we hedge forecasted transactions is 9 years. The following tables summarize the effect of fair value and cash flow hedge accounting on the income statement for the three- month periods ended March 31, 2020 , and March 31, 2019 . Location and amount of net gains (losses) recognized in income on fair value and cash flow hedging relationships in millions Interest expense – long-term debt Interest income – loans Interest expense - deposits Other income Three months ended March 31, 2020 Total amounts presented in the consolidated statement of income $ (90 ) $ 1,026 $ (169 ) $ (88 ) Net gains (losses) on fair value hedging relationships Interest contracts Recognized on hedged items (294 ) — — — Recognized on derivatives designated as hedging instruments 311 — — — Net income (expense) recognized on fair value hedges $ 17 — — — Net gain (loss) on cash flow hedging relationships Interest contracts Realized gains (losses) (pre-tax) reclassified from AOCI into net income $ (1 ) $ 34 — — Net income (expense) recognized on cash flow hedges $ (1 ) $ 34 — — Three months ended March 31, 2019 Total amounts presented in the consolidated statement of income $ (120 ) $ 1,066 $ (202 ) $ 10 Net gains (losses) on fair value hedging relationships Interest contracts Recognized on hedged items $ (93 ) — $ — — Recognized on derivatives designated as hedging instruments 82 — — — Net income (expense) recognized on fair value hedges $ (11 ) — $ — — Net gain (loss) on cash flow hedging relationships Interest contracts Realized gains (losses) (pre-tax) reclassified from AOCI into net income $ (1 ) $ (24 ) — — Net income (expense) recognized on cash flow hedges $ (1 ) $ (24 ) — — Net investment hedges. We previously entered into foreign currency forward contracts to hedge our exposure to changes in the carrying value of our investments in foreign subsidiaries as a result of changes in the related foreign exchange rates. In December 2019, our last remaining net investment hedge was discontinued in connection with the substantial liquidation of the net assets of KEF’s Canadian subsidiary. Additional information regarding the discontinuance of this net investment hedge is provided in Note 8 ( Derivatives and Hedging Activities ) on page 137 of our 2019 Form 10-K. The following tables summarize the pre-tax net gains (losses) on our cash flow and net investment hedges for the three- month periods ended March 31, 2020 , and March 31, 2019 , and where they are recorded on the income statement. The table includes net gains (losses) recognized in OCI during the period and net gains (losses) reclassified from OCI into income during the current period. in millions Net Gains (Losses) Recognized in OCI Income Statement Location of Net Gains (Losses) Reclassified From OCI Into Income Net Gains (Losses) Reclassified From OCI Into Income Three months ended March 31, 2020 Cash Flow Hedges Interest rate $ 562 Interest income — Loans $ 34 Interest rate (5 ) Interest expense — Long-term debt (1 ) Interest rate (30 ) Investment banking and debt placement fees — Total $ 527 $ 33 Three months ended March 31, 2019 Cash Flow Hedges Interest rate $ 115 Interest income — Loans $ (24 ) Interest rate (1 ) Interest expense — Long-term debt (1 ) Interest rate (5 ) Investment banking and debt placement fees — Net Investment Hedges Foreign exchange contracts (3 ) Other Income — Total $ 106 $ (25 ) Nonhedging instruments The following table summarizes the pre-tax net gains (losses) on our derivatives that are not designated as hedging instruments for the three- month periods ended March 31, 2020 , and March 31, 2019 , and where they are recorded on the income statement. Three months ended March 31, 2020 Three months ended March 31, 2019 in millions Corporate services income Consumer mortgage income Other income Total Corporate services income Consumer mortgage income Other income Total NET GAINS (LOSSES) Interest rate $ 11 — $ (9 ) $ 2 $ 8 — $ (2 ) $ 6 Foreign exchange 12 — — 12 10 — — 10 Commodity 2 — — 2 1 — — 1 Credit (16 ) — 1 (15 ) 1 — (7 ) (6 ) Other — 4 9 13 — — 1 1 Total net gains (losses) $ 9 4 $ 1 $ 14 $ 20 — $ (8 ) $ 12 Counterparty Credit Risk We hold collateral in the form of cash and highly rated securities issued by the U.S. Treasury, government-sponsored enterprises, or GNMA. Cash collateral of $370 million was netted against derivative assets on the balance sheet at March 31, 2020 , compared to $207 million of cash collateral netted against derivative assets at December 31, 2019 . The cash collateral netted against derivative liabilities totaled $156 million at March 31, 2020 , and $69 million at December 31, 2019 . Our means of mitigating and managing exposure to credit risk on derivative contracts is described in Note 8 (“ Derivatives and Hedging Activities ”) beginning on page 138 of our 2019 Form 10-K under the heading “Counterparty Credit Risk.” 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 March 31, 2020 December 31, 2019 Interest rate $ 1,744 $ 848 Foreign exchange 70 30 Commodity 559 95 Credit 8 — Other 57 14 Derivative assets before collateral 2,438 987 Less: Related collateral 370 207 Total derivative assets $ 2,068 $ 780 We enter into derivative transactions with two primary groups: broker-dealers and banks, and clients. Given that 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 are primarily high dollar volume. We enter into bilateral collateral and master netting agreements with these counterparties. We clear certain types of derivative transactions with these counterparties, whereby central clearing organizations become the counterparties to our derivative contracts. In addition, we enter into derivative contracts through swap execution facilities. Swap clearing and swap execution facilities reduce our exposure to counterparty credit risk. At March 31, 2020 , we had gross exposure of $966 million to broker-dealers and banks. We had net exposure of $327 million after the application of master netting agreements and cash collateral, where such qualifying agreements exist. We had net exposure of $323 million after considering $4 million of additional collateral held in the form of securities. We enter into transactions using master netting agreements with clients to accommodate their business needs. In most cases, we mitigate our credit exposure by cross-collateralizing these transactions to the underlying loan collateral. For transactions that are not clearable, we mitigate our market risk by buying and selling U.S. Treasuries and Eurodollar futures or entering into offsetting positions. Due to the cross-collateralization to the underlying loan, we typically do not exchange cash or marketable securities collateral in connection with these transactions. To address the risk of default associated with these contracts, we have established a CVA reserve (included in “accrued income and other assets”) in the amount of $86 million at March 31, 2020 . The CVA is calculated from potential future exposures, expected recovery rates, and market-implied probabilities of default. At March 31, 2020 , we had gross exposure of $1.9 billion 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 $1.7 billion on our derivatives with these counterparties after the application of master netting agreements, collateral, and the related reserve. Credit Derivatives We are a buyer and, under limited circumstances, may be a 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. Our credit derivative portfolio was in a net liability position of $17 million as of March 31, 2020 , and $9 million as of December 31, 2019 . Our credit derivative portfolio consists of single-name credit default swaps, traded credit default swap indices, and risk participation agreements. Additional descriptions of our credit derivatives are provided in Note 8 (“ Derivatives and Hedging Activities ”) beginning on page 139 of our 2019 Form 10-K under the heading “Credit Derivatives.” The following table provides information on the types of credit derivatives sold by us and held on the balance sheet at March 31, 2020 , and December 31, 2019 . The notional amount represents the amount that the seller could be required to pay. 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 implied from observed credit indices in the credit default swap market, which are mapped to reference entities based on Key’s internal risk rating. March 31, 2020 December 31, 2019 dollars in millions Notional Amount Average Term (Years) Payment / Performance Risk Notional Amount Average Term (Years) Payment / Performance Risk Other $ 358 14.62 27.09 % $ 134 14.30 14.56 % Total credit derivatives sold $ 358 — — $ 134 — — Credit Risk Contingent Features We have entered into certain derivative contracts that require us to post collateral to the counterparties when these contracts are in a net liability position. The amount of collateral to be posted is based on the amount of the net liability and thresholds generally related to our long-term senior unsecured credit ratings with Moody’s and S&P. Collateral requirements also are based on minimum transfer amounts, which are specific to each Credit Support Annex (a component of the ISDA Master Agreement) that we have signed with the counterparties. In a limited number of instances, counterparties have the right to terminate their ISDA Master Agreements with us if our ratings fall below a certain level, usually investment-grade level (i.e., “Baa3” for Moody’s and “BBB-” for S&P). At March 31, 2020 , 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 March 31, 2020 , 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 $106 million , which was comprised of $61 million in derivative assets and $167 million in derivative liabilities. We had $101 million in cash and securities collateral posted to cover those positions as of March 31, 2020 . There were no derivative contracts with credit risk contingent features held by KeyCorp at March 31, 2020 . The following table summarizes the additional cash and securities collateral that KeyBank would have been required to deliver under the ISDA Master Agreements had the credit risk contingent features been triggered for the derivative contracts in a net liability position as of March 31, 2020 , and December 31, 2019 . The additional collateral amounts were calculated based on scenarios under which KeyBank’s ratings are downgraded one, two, or three ratings as of March 31, 2020 , and December 31, 2019 , and take into account all collateral already posted. A similar calculation was performed for KeyCorp, and no additional collateral would have been required as of March 31, 2020 , and December 31, 2019 . For more information about the credit ratings for KeyBank and KeyCorp, see the discussion under the heading “Factors affecting liquidity” in the section entitled “Liquidity risk management” in Item 2 of this report. March 31, 2020 December 31, 2019 in millions Moody’s S&P Moody’s S&P KeyBank’s long-term senior unsecured credit ratings A3 A- A3 A- One rating downgrade $ 1 $ 1 $ 1 $ 1 Two rating downgrades 1 1 1 1 Three rating downgrades 1 1 1 1 KeyBank’s long-term senior unsecured credit rating was four ratings above noninvestment grade at Moody’s and S&P as of March 31, 2020 , and December 31, 2019 . If KeyBank’s ratings had been downgraded below investment grade as of March 31, 2020 , or December 31, 2019 , payments of $3 million and $3 million , respectively, would have been required to either terminate the contracts or post additional collateral for those contracts in a net liability position, taking into account all collateral already posted. If KeyCorp’s ratings had been downgraded below investment grade as of March 31, 2020 , or December 31, 2019 , no payments 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. |
Mortgage Servicing Assets
Mortgage Servicing Assets | 3 Months Ended |
Mar. 31, 2020 | |
Servicing Asset [Abstract] | |
Mortgage Servicing Assets | 8. Mortgage Servicing Assets We originate and periodically sell commercial and residential 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. 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” beginning on page 106 of our 2019 Form 10-K. Commercial Changes in the carrying amount of commercial mortgage servicing assets are summarized as follows: Three months ended March 31, in millions 2020 2019 Balance at beginning of period $ 539 $ 502 Servicing retained from loan sales 24 18 Purchases 11 6 Amortization (29 ) (29 ) Temporary impairments (2 ) — Balance at end of period $ 543 $ 497 Fair value at end of period $ 655 $ 727 The fair value of commercial 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 determine the fair value of our commercial mortgage servicing assets at March 31, 2020 , and March 31, 2019 , along with the valuation techniques, are shown in the following table: dollars in millions March 31, 2020 March 31, 2019 Valuation Technique Significant Unobservable Input Range (Weighted Average) Discounted cash flow Expected defaults 0.97 - 2.00% (1.14%) 1.00 - 2.00% (1.14%) Residual cash flows discount rate 7.00 - 11.42% (9.24%) 7.00 - 15.00% (9.19%) Escrow earn rate 1.20 - 1.92% (1.67%) 2.22 - 3.70% (2.98%) Loan assumption rate 0.01 - 3.37% (1.32%) 0.00 - 3.18% (1.39%) If these economic assumptions change or prove incorrect, the fair value of commercial mortgage servicing assets may also change. Expected credit losses, escrow earning rates, and discount rates are critical to the valuation of commercial mortgage 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 commercial mortgage 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 earning rates would cause a decrease in the fair value of our commercial 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 commercial mortgage servicing assets. Prepayment activity on commercial serviced loans does not significantly affect the valuation of our commercial mortgage servicing assets. Unlike residential mortgages, commercial mortgages experience significantly lower prepayments due to certain contractual restrictions affecting the borrower’s ability to prepay the mortgage. The amortization of commercial servicing assets is determined in proportion to, and over the period of, the estimated net servicing income. The amortization of commercial servicing assets for each period, as shown in the table at the beginning of this note, is recorded as a reduction to contractual fee income. The contractual fee income from servicing commercial mortgage loans totaled $50 million for the three-month period ended March 31, 2020 , and $46 million for the three-month period ended March 31, 2019 . This fee income was offset by $32 million of amortization for the three-month period ended March 31, 2020 , and $29 million for the three-month period ended March 31, 2019 . Both the contractual fee income and the amortization are recorded, net, in “commercial mortgage servicing fees” on the income statement. Residential Changes in the carrying amount of residential mortgage servicing assets are summarized as follows: Three months ended March 31, in millions 2020 2019 Balance at beginning of period $ 46 $ 37 Servicing retained from loan sales 5 2 Purchases — — Amortization (2 ) (1 ) Temporary impairments (9 ) — Balance at end of period $ 40 $ 38 Fair value at end of period $ 41 $ 50 The fair value of mortgage servicing assets is determined by calculating the present value of future cash flows associated with servicing the loans. This calculation uses a number of assumptions that are based on current market conditions. The range and weighted-average of the significant unobservable inputs used to fair value our mortgage servicing assets at March 31, 2020 , and March 31, 2019 , along with the valuation techniques, are shown in the following table: dollars in millions March 31, 2020 March 31, 2019 Valuation Technique Significant Unobservable Input Range (Weighted Average) Discounted cash flow Prepayment speed 10.50 - 55.60% (17.16%) 9.32 - 58.76% (9.93%) Discount rate 7.50 - 8.50% (7.52%) 7.50 - 10.00% (7.54%) Servicing cost $62 - $8,375 ($68.14) $62 - $4,375 ($68.23) If these economic assumptions change or prove incorrect, the fair value of residential mortgage servicing assets may also change. Prepayment speed, discount rates, and servicing cost 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. An increase in the prepayment speed, assigned discount rates, and servicing cost assumptions would also cause a negative impact on the fair value of our residential mortgage servicing assets. The amortization of residential servicing assets is determined in proportion to, and over the period of, the estimated net residential servicing income. The amortization of servicing assets for March 31, 2020 , as shown in the table above, is recorded as a reduction to contractual fee income. The contractual fee income from servicing residential mortgage loans totaled $6 million for the three-month period ended March 31, 2020 , and $4 million for the three-month period ended March 31, 2019 . This fee income was offset by $2 million of amortization for the three-month period ended March 31, 2020 , and $1 million for the three-month period ended March 31, 2019 . Both the contractual fee income and the amortization are recorded, net, in “consumer mortgage income” on the income statement. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Leases | 9. Leases As a lessee, we enter into leases of land, buildings, and equipment. Our real estate leases primarily relate to bank branches and office space. The leases of equipment principally relate to technology assets for data processing and data storage. As a lessor, we primarily provide financing through our equipment leasing business. For more information on our leasing activity, see Note 10 (“Leases”) beginning on page 143 of our 2019 Form 10-K Lessor Equipment Leasing Leases may have fixed or floating rate terms. Variable payments are based on an index or other specified rate and are included in rental payments. Certain leases contain an option to extend the lease term or the option to terminate at the discretion of the lessee. Under certain conditions, lease agreements may also contain the option for a lessee to purchase the underlying asset. Interest income from sales-type and direct financing leases is recognized in "interest income — loans" on the statement of income. Income related to operating leases is recognized in “operating lease income and other leasing gains” on the income statement. The components of equipment leasing income are summarized in the table below: Three months ended March 31, in millions 2020 2019 Sales-type and direct financing leases Interest income on lease receivable $ 28 $ 30 Interest income related to accretion of unguaranteed residual asset 3 3 Interest income on deferred fees and costs — — Total sales-type and direct financing lease income 31 33 Operating leases Operating lease income related to lease payments 34 33 Other operating leasing gains (4 ) 4 Total operating lease income and other leasing gains 30 37 Total lease income $ 61 $ 70 |
Leases | 9. Leases As a lessee, we enter into leases of land, buildings, and equipment. Our real estate leases primarily relate to bank branches and office space. The leases of equipment principally relate to technology assets for data processing and data storage. As a lessor, we primarily provide financing through our equipment leasing business. For more information on our leasing activity, see Note 10 (“Leases”) beginning on page 143 of our 2019 Form 10-K Lessor Equipment Leasing Leases may have fixed or floating rate terms. Variable payments are based on an index or other specified rate and are included in rental payments. Certain leases contain an option to extend the lease term or the option to terminate at the discretion of the lessee. Under certain conditions, lease agreements may also contain the option for a lessee to purchase the underlying asset. Interest income from sales-type and direct financing leases is recognized in "interest income — loans" on the statement of income. Income related to operating leases is recognized in “operating lease income and other leasing gains” on the income statement. The components of equipment leasing income are summarized in the table below: Three months ended March 31, in millions 2020 2019 Sales-type and direct financing leases Interest income on lease receivable $ 28 $ 30 Interest income related to accretion of unguaranteed residual asset 3 3 Interest income on deferred fees and costs — — Total sales-type and direct financing lease income 31 33 Operating leases Operating lease income related to lease payments 34 33 Other operating leasing gains (4 ) 4 Total operating lease income and other leasing gains 30 37 Total lease income $ 61 $ 70 |
Leases | 9. Leases As a lessee, we enter into leases of land, buildings, and equipment. Our real estate leases primarily relate to bank branches and office space. The leases of equipment principally relate to technology assets for data processing and data storage. As a lessor, we primarily provide financing through our equipment leasing business. For more information on our leasing activity, see Note 10 (“Leases”) beginning on page 143 of our 2019 Form 10-K Lessor Equipment Leasing Leases may have fixed or floating rate terms. Variable payments are based on an index or other specified rate and are included in rental payments. Certain leases contain an option to extend the lease term or the option to terminate at the discretion of the lessee. Under certain conditions, lease agreements may also contain the option for a lessee to purchase the underlying asset. Interest income from sales-type and direct financing leases is recognized in "interest income — loans" on the statement of income. Income related to operating leases is recognized in “operating lease income and other leasing gains” on the income statement. The components of equipment leasing income are summarized in the table below: Three months ended March 31, in millions 2020 2019 Sales-type and direct financing leases Interest income on lease receivable $ 28 $ 30 Interest income related to accretion of unguaranteed residual asset 3 3 Interest income on deferred fees and costs — — Total sales-type and direct financing lease income 31 33 Operating leases Operating lease income related to lease payments 34 33 Other operating leasing gains (4 ) 4 Total operating lease income and other leasing gains 30 37 Total lease income $ 61 $ 70 |
Leases | 9. Leases As a lessee, we enter into leases of land, buildings, and equipment. Our real estate leases primarily relate to bank branches and office space. The leases of equipment principally relate to technology assets for data processing and data storage. As a lessor, we primarily provide financing through our equipment leasing business. For more information on our leasing activity, see Note 10 (“Leases”) beginning on page 143 of our 2019 Form 10-K Lessor Equipment Leasing Leases may have fixed or floating rate terms. Variable payments are based on an index or other specified rate and are included in rental payments. Certain leases contain an option to extend the lease term or the option to terminate at the discretion of the lessee. Under certain conditions, lease agreements may also contain the option for a lessee to purchase the underlying asset. Interest income from sales-type and direct financing leases is recognized in "interest income — loans" on the statement of income. Income related to operating leases is recognized in “operating lease income and other leasing gains” on the income statement. The components of equipment leasing income are summarized in the table below: Three months ended March 31, in millions 2020 2019 Sales-type and direct financing leases Interest income on lease receivable $ 28 $ 30 Interest income related to accretion of unguaranteed residual asset 3 3 Interest income on deferred fees and costs — — Total sales-type and direct financing lease income 31 33 Operating leases Operating lease income related to lease payments 34 33 Other operating leasing gains (4 ) 4 Total operating lease income and other leasing gains 30 37 Total lease income $ 61 $ 70 |
Leases | 9. Leases As a lessee, we enter into leases of land, buildings, and equipment. Our real estate leases primarily relate to bank branches and office space. The leases of equipment principally relate to technology assets for data processing and data storage. As a lessor, we primarily provide financing through our equipment leasing business. For more information on our leasing activity, see Note 10 (“Leases”) beginning on page 143 of our 2019 Form 10-K Lessor Equipment Leasing Leases may have fixed or floating rate terms. Variable payments are based on an index or other specified rate and are included in rental payments. Certain leases contain an option to extend the lease term or the option to terminate at the discretion of the lessee. Under certain conditions, lease agreements may also contain the option for a lessee to purchase the underlying asset. Interest income from sales-type and direct financing leases is recognized in "interest income — loans" on the statement of income. Income related to operating leases is recognized in “operating lease income and other leasing gains” on the income statement. The components of equipment leasing income are summarized in the table below: Three months ended March 31, in millions 2020 2019 Sales-type and direct financing leases Interest income on lease receivable $ 28 $ 30 Interest income related to accretion of unguaranteed residual asset 3 3 Interest income on deferred fees and costs — — Total sales-type and direct financing lease income 31 33 Operating leases Operating lease income related to lease payments 34 33 Other operating leasing gains (4 ) 4 Total operating lease income and other leasing gains 30 37 Total lease income $ 61 $ 70 |
Variable Interest Entities
Variable Interest Entities | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities | 10. Variable Interest Entities Our significant VIEs are summarized below. Additional information pertaining to the criteria used in determining if an entity is a VIE is included in Note 13 (“ Variable Interest Entities “) beginning on page 146 of our 2019 Form 10-K. LIHTC investments. We had $1.4 billion and $1.5 billion of investments in LIHTC operating partnerships at March 31, 2020 , and December 31, 2019 , respectively. These investments are recorded in “accrued income and other assets” on our balance sheet. We do not have any loss reserves recorded related to these investments because we believe the likelihood of any loss to be remote. For all legally binding, unfunded equity commitments, we increase our recognized investment and recognize a liability. As of March 31, 2020 , and December 31, 2019 , we had liabilities of $504 million and $546 million , respectively, related to investments in qualified affordable housing projects, which are recorded in “accrued expenses and other liabilities” on our balance sheet. We continue to invest in these LIHTC operating partnerships. The assets and liabilities presented in the table below convey the size of KCDC’s direct and indirect investments at March 31, 2020 , and December 31, 2019 . As these investments represent unconsolidated VIEs, the assets and liabilities of the investments themselves are not recorded on our balance sheet. Additional information pertaining to our LIHTC investments is included in Note 13 (“ Variable Interest Entities ”) beginning on page 146 of our 2019 Form 10-K. Unconsolidated VIEs in millions Total Assets Total Liabilities Maximum Exposure to Loss March 31, 2020 LIHTC investments $ 6,401 $ 2,534 $ 1,823 December 31, 2019 LIHTC investments $ 6,405 $ 2,526 $ 1,846 We amortize our LIHTC investments over the period that we expect to receive the tax benefits. During the first three months of 2020 , we recognized $49 million of amortization and $46 million of tax credits associated with these investments within “income taxes” on our income statement. During the first three months of 2019 , we recognized $46 million of amortization and $45 million of tax credits associated with these investments within “income taxes” on our income statement. Principal investments. Our maximum exposure to loss associated with indirect principal investments consists of the investments’ fair value plus any unfunded equity commitments. The fair value of our indirect principal investments totaled $64 million and $68 million at March 31, 2020 , and December 31, 2019 , respectively. These investments are recorded in “other investments” on our balance sheet. The table below reflects the size of the private equity funds in which we were invested as well as our maximum exposure to loss in connection with these investments at March 31, 2020 , and December 31, 2019 . Unconsolidated VIEs in millions Total Assets Total Liabilities Maximum Exposure to Loss March 31, 2020 Indirect investments $ 12,221 $ 182 $ 84 December 31, 2019 Indirect investments $ 12,954 $ 205 $ 89 Through our principal investing entities, we have formed and funded operating entities that provide management and other related services to our investment company funds, which directly invest in portfolio companies. These entities had no assets at March 31, 2020 , and December 31, 2019 , that can be used to settle the entities’ obligations. The entities had no liabilities at March 31, 2020 , and December 31, 2019 , and other equity investors have no recourse to our general credit. Additional information on our indirect and direct principal investments is provided in Note 5 (“ Fair Value Measurements ”) and in Note 13 (“ Variable Interest Entities “) beginning on page 146 of our 2019 Form 10-K. Other unconsolidated VIEs. We are involved with other various entities in the normal course of business which we have determined to be VIEs. We have determined that we are not the primary beneficiary of these VIEs because we do not have the power to direct the activities that most significantly impact their economic performance. Our assets associated with these unconsolidated VIEs totaled $280 million at March 31, 2020 , and $282 million at December 31, 2019 . These assets are recorded in “accrued income and other assets,” “other investments,” “securities available for sale,” and “loans, net of unearned income” on our balance sheet. We had liabilities totaling $1 million and $1 million associated with these unconsolidated VIEs at March 31, 2020 , and December 31, 2019 , respectively. Additional information pertaining to our other unconsolidated VIEs is included in Note 13 (“ Variable Interest Entities “) under the heading “Other unconsolidated VIEs” on page 148 of our 2019 Form 10-K. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 11. 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 before income taxes, was 13.4% for the first quarter of 2020 and 17.0% for the first quarter of 2019 . The effective tax rates are less than our combined federal and state statutory tax rate of 23.7% , primarily due to income from investments in tax-advantaged assets such as corporate-owned life insurance and credits associated with renewable energy and low-income housing investments. Deferred Tax Asset At March 31, 2020 , we had a net deferred tax liability of $273 million , compared to a net deferred tax liability of $89 million at December 31, 2019 , which are both 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 no valuation allowance at March 31, 2020 , and December 31, 2019 . 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.” At March 31, 2020 , Key’s unrecognized tax benefits were $18 million . Pre-1988 Bank Reserves Acquired in a Business Combination Retained earnings of KeyBank included approximately $92 million of allocated bad debt deductions for which no income taxes have been recorded. Under current federal law, these reserves are subject to recapture into taxable income if KeyBank, or any successor, fails to maintain its bank status under the Internal Revenue Code or makes non-dividend distributions or distributions greater than its accumulated earnings and profits. No deferred tax liability has been established as these events are not expected to occur in the foreseeable future. |
Acquisitions and Discontinued O
Acquisitions and Discontinued Operations | 3 Months Ended |
Mar. 31, 2020 | |
Business Combinations [Abstract] | |
Acquisitions and Discontinued Operations | 12. Acquisition and Discontinued Operations Acquisition Laurel Road Digital Lending Business. On April 3, 2019, KeyBank acquired Laurel Road's digital lending business from Laurel Road Bank. Laurel Road Bank's three bank branches located in southeast Connecticut were not part of this transaction. Through the acquisition, KeyBank expects to enhance its digital capabilities with state-of-the-art, customer-centric technology and to leverage Laurel Road's proven ability to attract and serve professional millennial clients. The acquisition is accounted for as a business combination. During the second quarter of 2019, we recognized identifiable intangible assets with an estimated fair value of $37 million . We also recognized goodwill of $148 million in connection with this acquisition. Discontinued operations Discontinued operations primarily includes our government-guaranteed and private education lending business. At March 31, 2020 , and December 31, 2019 , approximately $821 million and $865 million , respectively, of education loans are included in discontinued assets on the consolidated balance sheets. Net interest income after provision for credit losses for this business is not material and is included in income (loss) from discontinued operations, net of taxes on the consolidated statements of income. |
Securities Financing Activities
Securities Financing Activities | 3 Months Ended |
Mar. 31, 2020 | |
Banking and Thrift [Abstract] | |
Securities Financing Activities | 13. Securities Financing Activities We enter into repurchase agreements to finance overnight customer sweep deposits. We also enter into repurchase and reverse repurchase agreements 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 for which the securities will be subsequently sold or repurchased. Securities borrowed transactions are recorded on the balance sheet at the amounts of cash collateral advanced. While our securities financing agreements incorporate a right of set off, the assets and liabilities are reported on a gross basis. Reverse repurchase agreements and securities borrowed transactions are included in “short-term investments” on the balance sheet; repurchase agreements are included in “federal funds purchased and securities sold under repurchase agreements.” Additional information regarding our securities financing activities, including risk management activities, is provided in Note 16 (“ Securities Financing Activities ”) beginning on page 151 of our 2019 Form 10-K. The following table summarizes our securities financing agreements at March 31, 2020 , and December 31, 2019 : March 31, 2020 December 31, 2019 in millions Gross Amount Presented in Balance Sheet Netting Adjustments (a) Collateral (b) Net Amounts Gross Amount Presented in Balance Sheet Netting Adjustments (a) Collateral (b) Net Amounts Offsetting of financial assets: Reverse repurchase agreements $ 4 $ (4 ) — — $ 5 $ (5 ) — — Total $ 4 $ (4 ) — — $ 5 $ (5 ) — — Offsetting of financial liabilities: Repurchase agreements (c) $ 194 $ (6 ) $ (188 ) — $ 187 $ (7 ) $ (180 ) — Total $ 194 $ (6 ) $ (188 ) — $ 187 $ (7 ) $ (180 ) — (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 mortgaged-backed agency securities and are contracted on an overnight or continuous basis. As of March 31, 2020 , the carrying amount of assets pledged as collateral against repurchase agreements totaled $396 million . Assets pledged as collateral are reported in “securities available for sale” and “held-to-maturity securities” on our balance sheet. At March 31, 2020 , the liabilities associated with collateral pledged were solely comprised of customer sweep financing activity and had a carrying value of $188 million . The collateral pledged under customer sweep repurchase agreements is posted to a third-party custodian and cannot be sold or repledged by the secured party. The risk related to a decline in the market value of collateral pledged is minimal given the collateral's high credit quality and the overnight duration of the repurchase agreements. |
Employee Benefits
Employee Benefits | 3 Months Ended |
Mar. 31, 2020 | |
Retirement Benefits [Abstract] | |
Employee Benefits | 14. Employee Benefits Pension Plans The components of net pension cost (benefit) for all funded and unfunded plans are recorded in “other expense” and are summarized in the following table. For more information on our Pension Plans and Other Postretirement Benefit Plans, see Note 18 (“ Employee Benefits ”) beginning on page 155 of our 2019 Form 10-K. Three months ended March 31, in millions 2020 2019 Interest cost on PBO $ 9 $ 11 Expected return on plan assets (10 ) (12 ) Amortization of losses 4 4 Settlement loss 4 — Net pension cost $ 7 $ 3 |
Trust Preferred Securities Issu
Trust Preferred Securities Issued by Unconsolidated Subsidiaries | 3 Months Ended |
Mar. 31, 2020 | |
Banking and Thrift [Abstract] | |
Trust Preferred Securities Issued by Unconsolidated Subsidiaries | 15. 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. The outstanding common stock of these business trusts is recorded in “other investments” on our balance sheet. 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, require us to treat our mandatorily redeemable trust preferred securities as Tier 2 capital. The trust preferred securities, common stock, and related debentures are summarized as follows: dollars in millions Trust Preferred Securities, Net of Discount (a) Common Stock Principal Amount of Debentures, Net of Discount (b) Interest Rate of Trust Preferred Securities and Debentures (c) Maturity of Trust Preferred Securities and Debentures March 31, 2020 KeyCorp Capital I $ 156 $ 6 $ 162 2.649 % 2028 KeyCorp Capital II 114 4 118 6.875 2029 KeyCorp Capital III 149 4 153 7.750 2029 HNC Statutory Trust III 19 1 20 3.083 2035 Willow Grove Statutory Trust I 19 1 20 2.051 2036 HNC Statutory Trust IV 17 1 18 3.050 2037 Westbank Capital Trust II 8 — 8 3.306 2034 Westbank Capital Trust III 8 — 8 3.306 2034 Total $ 490 $ 17 $ 507 5.213 % — December 31, 2019 $ 466 $ 17 $ 483 5.214 % — (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 $77 million at March 31, 2020 , and $57 million at December 31, 2019 . 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, HNC Statutory Trust III, Willow Grove Statutory Trust I, HNC Statutory Trust IV, Westbank Capital Trust II, or Westbank Capital Trust III 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 $77 million at March 31, 2020 , and $57 million at December 31, 2019 . See Note 7 (“ Derivatives and Hedging Activities ”) 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. The trust preferred securities issued by KeyCorp Capital I have a floating interest rate, equal to three-month LIBOR plus 74 basis points, that reprices quarterly. The trust preferred securities issued by HNC Statutory Trust III have a floating interest rate, equal to three-month LIBOR plus 140 basis points, that reprices quarterly. The trust preferred securities issued by Willow Grove Statutory Trust I have a floating interest rate, equal to three-month LIBOR plus 131 basis points, that reprices quarterly. The trust preferred securities issued by HNC Statutory Trust IV have a floating interest rate, equal to three-month LIBOR plus 128 basis points, that reprices quarterly. The trust preferred securities issued by Westbank Capital Trust II and Westbank Capital Trust III each have a floating interest rate, equal to three-month LIBOR plus 219 basis points, that reprices quarterly. The total interest rates are weighted-average rates. |
Contingent Liabilities and Guar
Contingent Liabilities and Guarantees | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingent Liabilities and Guarantees | 16. Contingent Liabilities and Guarantees Legal Proceedings Litigation. From time to time, in the ordinary course of business, we and our subsidiaries are subject to various 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 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 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 litigation matters. We note, however, that in light of the inherent uncertainty in legal proceedings there can be no assurance that the ultimate resolution will not exceed established reserves. As a result, the outcome of a particular matter, or a combination of matters, may be material to our results of operations for a particular period, depending upon the size of the loss or our income for that particular period. Guarantees We are a guarantor in various agreements with third parties. The following table shows the types of guarantees that we had outstanding at March 31, 2020 . 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 “Contingencies and Guarantees” beginning on page 108 of our 2019 Form 10-K. March 31, 2020 Maximum Potential Undiscounted Future Payments Liability Recorded in millions Financial guarantees: Standby letters of credit $ 3,352 $ 72 Recourse agreement with FNMA 5,098 20 Residential mortgage reserve 1,906 7 Written put options (a) 2,598 102 Total $ 12,954 $ 201 (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 March 31, 2020 , is low. Information pertaining to the nature of each of the guarantees listed below is included in Note 22 (“ Commitments, Contingent Liabilities, and Guarantees ”) under the heading “Guarantees” beginning on page 165 of our 2019 Form 10-K. Standby letters of credit. At March 31, 2020 , our standby letters of credit had a remaining weighted-average life of two years , with remaining actual lives ranging from less than one year to as many as 15 years . Recourse agreement with FNMA. At March 31, 2020 , the outstanding commercial mortgage loans in this program had a weighted-average remaining term of 7.7 years , and the unpaid principal balance outstanding of loans sold by us as a participant was $17.1 billion . The maximum potential amount of undiscounted future payments that we could be required to make under this program, as shown in the preceding table, is equal to approximately 30% of the principal balance of loans outstanding at March 31, 2020 . 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 in addition to the expected credit loss for the guarantee as described in Note 5 (“ Asset Quality “). Residential Mortgage Banking. At March 31, 2020 , the unpaid principal balance outstanding of loans sold by us in this program was $6.4 billion . The maximum potential amount of undiscounted future payments that we could be required to make under this program, as shown in the preceding table, is equal to approximately 30% of the principal balance of loans outstanding at March 31, 2020 . Our liability for estimated repurchase obligations on loans sold, which is included in other liabilities on our balance sheet, was $7 million at March 31, 2020 . For more information on our residential mortgages, see Note 8 (“ Mortgage Servicing Assets “). Written put options. At March 31, 2020 , our written put options had an average life of three years . These written put options are accounted for as derivatives at fair value, as further discussed in Note 7 (“ Derivatives and Hedging Activities ”). 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 (“ Derivatives and Hedging Activities ”). 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. Additional information pertaining to types of other off-balance sheet risk is included in Note 22 (“ Commitments, Contingent Liabilities, and Guarantees ”) under the heading “Other Off-Balance Sheet Risk” on page 168 of our 2019 Form 10-K. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income | 17. Accumulated Other Comprehensive Income Our changes in AOCI for the three months ended March 31, 2020 , and March 31, 2019 , are as follows: in millions Unrealized gains (losses) on securities available for sale Unrealized gains (losses) on derivative financial instruments Foreign currency translation adjustment Net pension and postretirement benefit costs Total Balance at December 31, 2019 $ 115 $ 250 $ — $ (339 ) $ 26 Other comprehensive income before reclassification, net of income taxes 408 402 — — 810 Amounts reclassified from AOCI, net of income taxes (a) (3 ) (25 ) — 6 (22 ) Net current-period other comprehensive income, net of income taxes 405 377 — 6 788 Balance at March 31, 2020 $ 520 $ 627 $ — $ (333 ) $ 814 Balance at December 31, 2018 $ (373 ) $ (50 ) $ (14 ) $ (381 ) $ (818 ) Other comprehensive income before reclassification, net of income taxes 184 80 3 (1 ) 266 Amounts reclassified from AOCI, net of income taxes (a) — 19 — 3 22 Net current-period other comprehensive income, net of income taxes 184 99 3 2 288 Balance at March 31, 2019 $ (189 ) $ 49 $ (11 ) $ (379 ) $ (530 ) (a) See table below for details about these reclassifications. Our reclassifications out of AOCI for the three months ended March 31, 2020 , and March 31, 2019 , are as follows: Three months ended March 31, Affected Line Item in the Statement Where Net Income is Presented in millions 2020 2019 Unrealized gains (losses) on available for sale securities Realized gains $ 4 — Other income 4 — Income (loss) from continuing operations before income taxes 1 — Income taxes $ 3 — Income (loss) from continuing operations Unrealized gains (losses) on derivative financial instruments Interest rate $ 34 $ (24 ) Interest income — Loans Interest rate (1 ) (1 ) Interest expense — Long-term debt 33 (25 ) Income (loss) from continuing operations before income taxes 8 (6 ) Income taxes $ 25 (19 ) Income (loss) from continuing operations Net pension and postretirement benefit costs Amortization of losses $ (4 ) $ (4 ) Other expense Settlement loss (4 ) — Other expense (8 ) (4 ) Income (loss) from continuing operations before income taxes (2 ) (1 ) Income taxes $ (6 ) (3 ) Income (loss) from continuing operations |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Shareholders' Equity | 18. Shareholders' Equity Comprehensive Capital Plan As previously reported and as authorized by the Board and pursuant to our 2019 capital plan (which is effective through the second quarter of 2020) submitted to and approved by the Federal Reserve, we have authority to repurchase up to $1.0 billion of our Common Shares. We completed $152 million of Common Share repurchases, including $117 million of Common Share repurchases in the open market and $35 million of Common Share repurchases related to employee equity compensation programs, in the first quarter of 2020 under this authorization. These repurchases were completed prior to our announcement on March 17, 2020, to temporarily suspend share repurchase activity in response to the COVID-19 pandemic. Consistent with our 2019 capital plan, the Board declared a quarterly dividend of $.185 per Common Share for the first quarter of 2020 . Preferred Stock Preferred stock series Amount outstanding (in millions) Shares authorized and outstanding Par value Liquidation preference Ownership interest per depositary share Liquidation preference per depositary share First quarter 2020 dividends paid per depositary share Fixed-to-Floating Rate Perpetual Noncumulative Series D $ 525 21,000 $ 1 $ 25,000 1/25th $ 1,000 $ 12.50 Fixed-to-Floating Rate Perpetual Noncumulative Series E 500 500,000 1 1,000 1/40th 25 .382813 Fixed Rate Perpetual Noncumulative Series F 425 425,000 1 1,000 1/40th 25 .353125 Fixed Rate Perpetual Non-Cumulative Series G 450 450,000 1 1,000 1/40th 25 .351563 |
Business Segment Reporting
Business Segment Reporting | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Business Segment Reporting | 19. Business Segment Reporting Consumer Bank The Consumer Bank serves individuals and small businesses throughout our 15 -state branch footprint by offering a variety of deposit and investment products, personal finance and financial wellness services, lending, mortgage and home equity, student loan refinancing, credit card, treasury services, and business advisory services. The Consumer Bank also purchases retail auto sales contracts via a network of auto dealerships. The auto dealerships finance the sale of automobiles as the initial lender and then assign the contracts to us pursuant to dealer agreements. In addition, wealth management and investment services are offered to assist institutional, non-profit, and high-net-worth clients with their banking, trust, portfolio management, life insurance, charitable giving, and related needs. Commercial Bank The Commercial Bank is an aggregation of our Institutional and Commercial operating segments. The Commercial operating segment is a full-service corporate 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. The Commercial operating segment is also a significant servicer of commercial mortgage loans and a significant special servicer of CMBS. The Institutional operating segment 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. Other Other includes various corporate treasury activities such as management of our investment securities portfolio, long-term debt, short-term liquidity and funding activities, and balance sheet risk management, our principal investing unit, and various exit portfolios as well as reconciling items which primarily represents the unallocated portion of nonearning assets of corporate support functions. Charges related to the funding of these assets are part of net interest income and are allocated to the business segments through noninterest expense. Reconciling items also include intercompany eliminations and certain items that are not allocated to the business segments because they do not reflect their normal operations. The development and application of the methodologies that we use to allocate items among our business segments is a dynamic process. Accordingly, financial results may be revised periodically to reflect enhanced alignment of expense base allocations drivers, changes in the risk profile of a particular business, or changes in our organizational structure. The table below shows selected financial data for our business segments for the three- month periods ended March 31, 2020 , and March 31, 2019 . Three months ended March 31, Consumer Bank Commercial Bank Other Total Key dollars in millions 2020 2019 2020 2019 2020 2019 2020 2019 SUMMARY OF OPERATIONS Net interest income (TE) $ 590 $ 591 $ 410 $ 402 $ (11 ) $ (8 ) $ 989 $ 985 Noninterest income 230 214 219 300 28 22 477 536 Total revenue (TE) (a) 820 805 629 702 17 14 1,466 1,521 Provision for credit losses 140 45 214 16 5 1 359 62 Depreciation and amortization expense 21 23 36 29 35 36 92 88 Other noninterest expense 522 517 317 344 — 14 839 875 Income (loss) from continuing operations before income taxes (TE) 137 220 62 313 (23 ) (37 ) 176 496 Allocated income taxes and TE adjustments 32 52 (8 ) 63 7 (25 ) 31 90 Income (loss) from continuing operations 105 168 70 250 (30 ) (12 ) 145 406 Income (loss) from discontinued operations, net of taxes — — — — 1 1 1 1 Net income (loss) 105 168 70 250 (29 ) (11 ) 146 407 Less: Net income (loss) attributable to noncontrolling interests — — — — — — — — Net income (loss) attributable to Key $ 105 $ 168 $ 70 $ 250 $ (29 ) $ (11 ) $ 146 $ 407 AVERAGE BALANCES (b) Loans and leases $ 35,197 $ 31,321 $ 60,082 $ 57,267 $ 895 $ 1,061 $ 96,174 $ 89,649 Total assets (a) 38,460 34,732 69,383 64,873 38,385 40,515 146,228 140,120 Deposits 73,320 71,288 36,058 34,417 950 1,871 110,328 107,576 OTHER FINANCIAL DATA Net loan charge-offs (b) $ 43 $ 34 $ 40 $ 30 $ 1 — $ 84 $ 64 Return on average allocated equity (b) 12.18 % 21.27 % 6.00 % 22.60 % (1.33 )% (.61 )% 3.39 % 10.49 % Return on average allocated equity 12.18 21.27 6.00 22.60 (1.29 ) (.56 ) 3.41 10.51 Average full-time equivalent employees (c) 8,907 9,622 2,069 2,370 5,553 5,562 16,529 17,554 (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. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | 20. Revenue from Contracts with Customers The following table represents a disaggregation of revenue from contracts with customers, by business segment, for the three- month periods ended March 31, 2020 , and March 31, 2019 . Three months ended March 31, 2020 Three months ended March 31, 2019 dollars in millions Consumer Bank Commercial Bank Total Contract Revenue Consumer Bank Commercial Bank Total Contract Revenue NONINTEREST INCOME Trust and investment services income $ 93 $ 19 $ 112 $ 85 $ 15 $ 100 Investment banking and debt placement fees — 47 47 — 45 45 Services charges on deposit accounts 56 28 84 54 27 81 Cards and payments income 38 26 64 37 26 63 Other noninterest income 2 — 2 3 — 3 Total revenue from contracts with customers $ 189 $ 120 $ 309 $ 179 $ 113 $ 292 Other noninterest income (a) $ 140 $ 222 Noninterest income from Other (b) 28 22 Total noninterest income $ 477 $ 536 (a) Noninterest income considered earned outside the scope of contracts with customers. (b) Other includes other segments that consists of corporate treasury, our principal investing unit, and various exit portfolios as well as reconciling items which primarily represents the unallocated portion of nonearning assets of corporate support functions. Charges related to the funding of these assets are part of net interest income and are allocated to the business segments through noninterest expense. Reconciling items also includes intercompany eliminations and certain items that are not allocated to the business segments because they do not reflect their normal operations. Refer to Note 19 (“ Business Segment Reporting ”) for more information. We had no material contract assets or contract liabilities as of March 31, 2020 , and March 31, 2019 . |
Basis of Presentation and Acc_2
Basis of Presentation and Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Consolidation | 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 affect 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 10 (“ 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% are carried at the cost measurement alternative or at fair value. 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 2019 Form 10-K. |
Subsequent Events | 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. |
Accounting Guidance Adopted in 2020 | Accounting Guidance Adopted in 2020 Measurement of Credit Losses on Financial Instruments (ASU 2016-13, ASU 2018-19, ASU 2019-04, ASU 2019-05, ASU 2019-11, ASU 2020-02, ASU 2020-03) On January 1, 2020, we adopted ASU 2016-13, Financial Instruments - Credit Losses (ASC 326): Measurement of Credit Losses on Financial Instruments, which replaces the incurred-loss methodology that recognized losses when a probable threshold was met with an expected-loss methodology, specifically, recognizing current expected credit losses (CECL) for the remaining life of the asset at the time of origination or acquisition. The CECL methodology applies to loans, debt securities, and other financial assets and net investment in leases measured at amortized cost. It also applies to off-balance sheet credit exposures (loan commitments, standby letters of credit, financial guarantees, and other similar instruments). Assets in the scope of ASC 326 are presented at the net amount expected to be collected after deducting the allowance for credit losses from the amortized cost basis of the assets. ASC 326 also requires credit losses relating to available-for-sale debt securities that management does not intend to sell or believes that it is more likely than not they will be required to sell to be recorded through an allowance rather than a reduction of the carrying amount. ASC 326 replaces the purchased credit impaired concept of accounting, previously required under Subtopic 310-30, with a purchased financial assets with credit deterioration (PCD) concept. In accordance with ASC 326, we did not reassess whether recognized purchased credit impaired loans met the criteria of a PCD loan and modifications to individual acquired loans accounted for in pools were TDRs as of the date of adoption. At adoption, we elected to not maintain the pools of loans previously accounted for under Subtopic 310-30. The prospective application resulted in a $4 million adjustment to the amortized cost basis of PCD loans to reflect the addition to the allowance for loans and leases as of January 1, 2020. After the adjustment for the allowance for the loans and leases, the noncredit discount of $15 million will be accreted to interest income using the interest method based on the effective interest rate determined after the adjustment from credit losses as of January 1, 2020. The ASU requires use of a modified retrospective approach through a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption. Results for reporting periods beginning after January 1, 2020, are presented under ASC 326 while prior period amounts continue to be reported in accordance with previously applicable GAAP. We posted an adjusting entry decreasing retained earnings as of January 1, 2020, by $230 million , net of deferred taxes of $71 million , for the cumulative effect of adopting ASC 326. The main drivers of the adjustment to retained earnings are summarized in the following table. Pre-ASC 326 Adoption Impact of ASC 326 Adoption As Reported Under ASC 326 in millions December 31, 2019 January 1, 2020 Allowance for credit losses Commercial Commercial and industrial $ 551 $ (141 ) $ 410 Real estate — commercial mortgage 143 16 159 Real estate — construction 22 (7 ) 15 Commercial lease financing 35 8 43 Total commercial loans 751 (124 ) 627 Consumer Real estate — residential mortgage 7 77 84 Home equity loans 31 147 178 Consumer direct loans 34 63 97 Credit cards 47 35 82 Consumer indirect loans 30 6 36 Total consumer loans 149 328 477 Total ALLL — continuing operations 900 204 1,104 Discontinued operations 10 31 41 Total ALLL 910 235 1,145 Accrued expense and other liabilities 75 70 145 Total allowance for credit losses $ 985 $ 305 $ 1,290 In conjunction with the adoption of ASC 326, the following are additional disclosures about our significant accounting policies related to CECL. Allowance for Held-to-Maturity Securities Debt securities that we have the intent and ability to hold until maturity are classified as held-to-maturity and 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. Management classifies the held-to-maturity portfolio into the following major security types: agency residential collateralized mortgage obligations, agency residential mortgage-backed securities, agency commercial mortgage-backed securities, asset backed securities, and other. Management measures expected credit losses on held-to-maturity securities on a collective basis by major security type. The estimate of expected losses considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. We do not measure expected credit losses on held-to-maturity securities in which historical credit loss information adjusted for current conditions and reasonable and supportable forecasts results in an expectation that nonpayment of the amortized cost basis is zero. All of our mortgage-backed securities are issued by U.S. government-sponsored enterprises or GNMA, are highly rated by major rating agencies and have a long history of no credit losses. Other securities are comprised of State of Israel bonds denominated and paid in U.S. dollars. Israel bonds have a long history of no credit losses. Additionally, as of March 31, 2020, the State of Israel's credit rating remains "stable" among Fitch, Moody's, and S&P (A+, A1, A+). Allowance for Available-for-Sale Securities Debt 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 are classified as available-for-sale and reported at fair value. Realized gains and losses resulting from sales of securities using the specific identification method are included in “other income” on the income statement. Unrealized gains and losses (net of income taxes) are recorded in equity as a component of AOCI. For available-for-sale securities in an unrealized loss position, we first assess whether we intend to sell, or it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis. If either of these criteria regarding intent or requirement to sell is met, the security's amortized cost basis is written down to fair value in “other income” on the income statement. For debt securities that do not meet the aforementioned criteria, we evaluate whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, nature of the security, the underlying collateral, and the financial condition of the issuer, among other factors. If this assessment indicates a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of the cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for available-for-sale securities is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for available-for-sale securities is recognized in other comprehensive income. Changes in the allowance for available-for-sale securities are recorded as provision for (or reversal of) credit loss. Losses are charged against the allowance for available-for-sale securities when management believes the uncollectibility of an available-for-sale security is confirmed or when either criteria regarding intent or requirement to sell is met. Loans Accrued interest on loans is included in "other assets" on the balance sheet and is excluded from the calculation of the allowance for credit losses due to our charge-off policy to reverse accrued interest on nonperforming loans against interest income in a timely manner. Expected credit losses on net investments in leases, including any unguaranteed residual asset, are included in the ALLL. Purchased Credit Deteriorated (PCD) Loans In addition to originating loans, we also acquire loans through portfolio purchases or acquisitions of other financial services companies. Purchased loans that have evidence of more than insignificant credit deterioration since origination are deemed PCD loans. In accordance with ASC 326, we did not reassess whether recognized purchased credit impaired loans met the criteria of a PCD loan as of the date of adoption. PCD loans are initially recorded at fair value along with an allowance for credit losses determined using the same methodology as originated loans. The sum of the loan's purchase price and allowance for credit losses becomes its initial amortized cost basis. The difference between the initial amortized cost basis and the par value of the loan is a noncredit discount or premium, which is amortized into interest income over the life of the loan. Subsequent changes to the allowance for credit losses are recorded through provision for credit losses. Nonperforming Loans 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. Once a loan is designated nonaccrual, the interest accrued but not collected is reversed against interest income, and payments subsequently received are applied to principal until qualifying for return to accrual. Allowance for Loan and Lease Losses We estimate the ALLL using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. The ALLL is measured on a collective (pool) basis when similar risk characteristics exist. Our portfolio segments include commercial and consumer. Each of these two segments comprises multiple loan classes. Classes are characterized by similarities in initial measurement, risk attributes, and the manner in which we monitor and assess credit risk. The commercial segment is composed of commercial and industrial, commercial real estate, and commercial lease financing loan classes. The consumer lending segment is composed of residential mortgage, home equity, consumer direct, credit card, and consumer indirect loan classes. The ALLL represents our current estimate of lifetime credit losses inherent in our loan portfolio at the balance sheet date. In determining the ALLL, we estimate expected future losses for the loan's entire contractual term adjusted for expected prepayments when appropriate. The contractual term excludes expected extensions, renewals, and modifications. The ALLL is the sum of three components: (i) asset specific/ individual loan reserves; (ii) quantitative (formulaic or pooled) reserves; and (iii) qualitative (judgmental) reserves. Asset Specific / Individual Component Loans that do not share risk characteristics are evaluated on an individual basis. Loans evaluated individually are not included in the collective evaluation. We have elected to apply the practical expedient to measure expected credit losses of a collateral dependent asset using the fair value of the collateral, less any costs to sell, when foreclosure is not probable, when repayment of the loan is expected to be provided substantially through the operation or sale of the collateral, and the borrower is experiencing financial difficulty. Individual reserves are determined as follows: • For commercial non-accruing loans greater than or equal to a defined dollar threshold, individual reserves are determined based on an analysis of the present value of the loan's expected future cash flows, the loan's observable market value, or the fair value of the collateral less costs to sell. • For commercial non-accruing loans below the defined dollar threshold, an established LGD percentage is multiplied by the loan balance and the results are aggregated for purposes of measuring specific reserve impairment. • The population of individually assessed consumer loans includes loans deemed collateral dependent, in addition to all TDRs. The expected loss for these loans is estimated based on the present value of the loan's expected future cash flows, except in instances where the loan is collateral dependent, in which case the loan is written down based on the collateral's fair market value less costs to sell. Quantitative Component We use a non-DCF factor-based approach to estimate expected credit losses that include component PD/LGD/EAD models as well as less complex estimation methods for smaller loan portfolios. • PD: This component model is used to estimate the likelihood that a borrower will cease making payments as agreed. The major contributors to this are the borrower credit attributes and macro-economic trends. The objective of the PD model is to produce default likelihood forecasts based on the observed loan-level information and projected paths of macroeconomic variables. • LGD: This component model is used to estimate the loss on a loan once a loan is in default. • EAD: Estimates the loan balance at the time the borrower stops making payments. For all term loans, an amortization based formulaic approach is used for account level EAD estimates. We calculate EAD using a portfolio specific method in each of our revolving product portfolios. For line products that are unconditionally cancellable, the balances will either use a paydown curve or be held flat through the life of the loan. Additional information about the critical estimates and judgments we make in developing these models is provided in the section “Allowance for loan and lease losses” under the heading” Critical Accounting Policies and Estimates” in Item 2 of this report. Qualitative Component The ALLL also includes identified qualitative factors related to idiosyncratic risk factors, changes in current economic conditions that may not be reflected in quantitatively derived results, and other relevant factors to ensure the ALLL reflects our best estimate of current expected credit losses. While our reserve methodologies strive to reflect all relevant risk factors, there continues to be uncertainty associated with, but not limited to, potential imprecision in the estimation process due to the inherent time lag of obtaining information and normal variations between estimates and actual outcomes. We provide additional reserves that are designed to provide coverage for losses attributable to such risks. The ALLL also includes factors that may not be directly measured in the determination of individual or collective reserves. Such qualitative factors may include: • The nature and volume of the institution’s financial assets; • The existence, growth, and effect of any concentrations of credit; • The volume and severity of past due financial assets, the volume of nonaccrual assets, and the volume and severity of adversely classified or graded assets; • The value of the underlying collateral for loans that are not collateral dependent; • The institution’s lending policies and procedures, including changes in underwriting standards and practices for collections, write-offs, and recoveries; • The quality of the institution’s credit review function; • The experience, ability, and depth of the institution’s lending, investment, collection, and other relevant management and staff; • The effect of other external factors such as the regulatory, legal and technological environments; competition; and events such as natural disasters; and • Actual and expected changes in international, national, regional, and local economic and business conditions and developments in which the institution operates that affect the collectability of financial assets. Liability for Credit Losses on Lending-Related Commitments The liability for credit losses on lending-related commitments, such as letters of credit and unfunded loan commitments, is included in “accrued expense and other liabilities” on the balance sheet. Expected credit losses are estimated over the contractual period in which we are exposed to credit risk via a contractual obligation unless that obligation is unconditionally cancellable by us. The liability for credit losses on lending-related commitments is adjusted as a provision for credit losses. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated useful life. Consistent with our estimation process on our loan and lease portfolio, we use a non-DCF factor-based approach to estimate expected credit losses that include component PD/LGD/EAD models as well as less complex estimation methods for smaller portfolios. Simplifying the Test for Goodwill Impairment (ASU 2017-04) On January 1, 2020, we adopted ASU 2017-04. The ASU amends ASC Topic 350, Intangibles - Goodwill and Other and eliminates the second step of the test for goodwill impairment. Under the new guidance, Key will compare the fair value of a reporting unit with its carrying amount. If the carrying amount exceeds the reporting unit’s fair value, we are required to recognize an impairment charge for this amount. The new method applies to all reporting units and the performance of a qualitative assessment is still allowable. We will monitor for impairment indicators and conduct our annual goodwill test as of October 1, 2020. The adoption of this accounting guidance must be applied prospectively and is not currently expected to have a material effect on our financial condition or results of operations. Reference Rate Reform (Topic 848) Facilitation of the Effects of Reference Rate Reform on Financial Reporting (ASU 2020-04) This quarter we adopted ASU 2020-04 upon issuance. The amendments provide optional expedients and exceptions for certain contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of rate reform. The guidance is effective from the date of issuance until December 31, 2022. The guidance permits Key not to apply modification accounting or remeasure lease payments in lease contracts if the changes to the contract are related to the discontinuation of the reference rate. If certain criteria are met, the amendments also allow exceptions to the dedesignation criteria of the hedging relationship and the assessment of hedge effectiveness during the transition period. It also allows Key to make a one time election to sell, transfer, or both sell and transfer debt securities classified as held to maturity that reference a rate affected by reference rate reform and that are classified as held to maturity before January 1, 2020. This one time election may be made at any time after March 12, 2020, but no later than December 31, 2022. Key has not yet made a determination on whether it will make this election. At the time of adoption, the guidance did not have a significant impact on Key’s financial condition and results of operations. We will continue to assess the impact as the reference rate transition occurs over the next two years. |
Basis of Presentation and Acc_3
Basis of Presentation and Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The main drivers of the adjustment to retained earnings are summarized in the following table. Pre-ASC 326 Adoption Impact of ASC 326 Adoption As Reported Under ASC 326 in millions December 31, 2019 January 1, 2020 Allowance for credit losses Commercial Commercial and industrial $ 551 $ (141 ) $ 410 Real estate — commercial mortgage 143 16 159 Real estate — construction 22 (7 ) 15 Commercial lease financing 35 8 43 Total commercial loans 751 (124 ) 627 Consumer Real estate — residential mortgage 7 77 84 Home equity loans 31 147 178 Consumer direct loans 34 63 97 Credit cards 47 35 82 Consumer indirect loans 30 6 36 Total consumer loans 149 328 477 Total ALLL — continuing operations 900 204 1,104 Discontinued operations 10 31 41 Total ALLL 910 235 1,145 Accrued expense and other liabilities 75 70 145 Total allowance for credit losses $ 985 $ 305 $ 1,290 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Earnings Per Common Share | Our basic and diluted earnings per Common Share are calculated as follows: Three months ended March 31, dollars in millions, except per share amounts 2020 2019 EARNINGS Income (loss) from continuing operations $ 145 $ 406 Less: Net income (loss) attributable to noncontrolling interests — — Income (loss) from continuing operations attributable to Key 145 406 Less: Dividends on Preferred Stock 27 20 Income (loss) from continuing operations attributable to Key common shareholders 118 386 Income (loss) from discontinued operations, net of taxes 1 1 Net income (loss) attributable to Key common shareholders $ 119 $ 387 WEIGHTED-AVERAGE COMMON SHARES Weighted-average Common Shares outstanding (000) 967,446 1,006,717 Effect of Common Share options and other stock awards 8,664 9,787 Weighted-average Common Shares and potential Common Shares outstanding (000) (a) 976,110 1,016,504 EARNINGS PER COMMON SHARE Income (loss) from continuing operations attributable to Key common shareholders $ .12 $ .38 Income (loss) from discontinued operations, net of taxes — — Net income (loss) attributable to Key common shareholders (b) .12 .38 Income (loss) from continuing operations attributable to Key common shareholders — assuming dilution $ .12 $ .38 Income (loss) from discontinued operations, net of taxes — assuming dilution — — Net income (loss) attributable to Key common shareholders — assuming dilution (b) .12 .38 (a) Assumes conversion of Common Share options and other stock awards and/or convertible preferred stock, as applicable. (b) EPS may not foot due to rounding. |
Loan Portfolio (Tables)
Loan Portfolio (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Loans Receivables [Abstract] | |
Loans by Category | in millions March 31, 2020 December 31, 2019 Commercial and industrial (b) $ 55,983 $ 48,295 Commercial real estate: Commercial mortgage 13,548 13,491 Construction 1,710 1,558 Total commercial real estate loans 15,258 15,049 Commercial lease financing (c) 4,677 4,688 Total commercial loans 75,918 68,032 Residential — prime loans: Real estate — residential mortgage 7,498 7,023 Home equity loans 10,103 10,274 Total residential — prime loans 17,601 17,297 Consumer direct loans 3,833 3,513 Credit cards 1,041 1,130 Consumer indirect loans 4,805 4,674 Total consumer loans 27,280 26,614 Total loans (d) $ 103,198 $ 94,646 (a) Accrued interest of $241 million and $244 million at March 31, 2020 , and December 31, 2019 , respectively, presented in "other assets" on the Consolidated Balance Sheets is excluded from the amortized cost basis disclosed in this table. (b) Loan balances include $143 million and $144 million of commercial credit card balances at March 31, 2020 , and December 31, 2019 , respectively. (c) Commercial lease financing includes receivables held as collateral for a secured borrowing of $14 million and $15 million at March 31, 2020 , and December 31, 2019 , 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 20 (“ Long-Term Debt ”) beginning on page 163 of our 2019 Form 10-K. (d) Total loans exclude loans of $821 million at March 31, 2020 , and $865 million at December 31, 2019 , related to the discontinued operations of the education lending business. |
Asset Quality (Tables)
Asset Quality (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Credit Loss [Abstract] | |
Financing Receivable, Allowance for Credit Loss | The changes in the ALLL by loan category for the periods indicated are as follows: Three months ended March 31, 2020 : in millions January 1, 2020 Provision Charge-offs Recoveries March 31, 2020 Commercial and Industrial $ 410 $ 187 $ (60 ) $ 5 $ 542 Commercial real estate: Real estate — commercial mortgage 159 50 (3 ) 1 207 Real estate — construction 15 10 — — 25 Total commercial real estate loans 174 60 (3 ) 1 232 Commercial lease financing 43 3 (2 ) — 44 Total commercial loans 627 250 (65 ) 6 818 Real estate — residential mortgage 84 5 — — 89 Home equity loans 178 8 (4 ) 2 184 Consumer direct loans 97 29 (12 ) 2 116 Credit cards 82 31 (11 ) 2 104 Consumer indirect loans 36 16 (9 ) 5 48 Total consumer loans 477 89 (36 ) 11 541 Total ALLL — continuing operations 1,104 339 (a) (101 ) 17 1,359 Discontinued operations 41 3 (2 ) 1 43 Total ALLL — including discontinued operations $ 1,145 $ 342 $ (103 ) $ 18 $ 1,402 (a) Excludes a provision for losses on lending-related commitments of $20 million . Three months ended March 31, 2019 : in millions December 31, 2018 Provision Charge-offs Recoveries March 31, 2019 Commercial and Industrial $ 532 $ 24 $ (36 ) $ 10 $ 530 Commercial real estate: Real estate — commercial mortgage 142 6 (5 ) 1 144 Real estate — construction 33 (1 ) (4 ) — 28 Total commercial real estate loans 175 5 (9 ) 1 172 Commercial lease financing 36 6 (8 ) 1 35 Total commercial loans 743 35 (53 ) 12 737 Real estate — residential mortgage 7 1 (1 ) 1 8 Home equity loans 35 3 (4 ) 2 36 Consumer direct loans 30 12 (10 ) 1 33 Credit cards 48 8 (11 ) 2 47 Consumer indirect loans 20 5 (8 ) 5 22 Total consumer loans 140 29 (34 ) 11 146 Total ALLL — continuing operations 883 64 (a) (87 ) 23 883 Discontinued operations 14 2 (4 ) 1 13 Total ALLL — including discontinued operations $ 897 $ 66 $ (91 ) $ 24 $ 896 (a) Excludes a credit for losses on lending-related commitments of $2 million . |
Significant Macroeconomic Variables of Loan Portfolios | The following table discloses the most significant macroeconomic variables to each loan portfolio. Segment Portfolio Significant Macroeconomic Variables (a) Commercial Commercial and industrial BBB corporate bond rate (spread), GDP, industrial production, and unemployment rate Commercial real estate BBB corporate bond rate (spread), property and real estate price indices, and unemployment rate Commercial lease financing BBB corporate bond rate (spread), GDP, and unemployment rate Consumer Real estate — residential mortgage GDP, home price index, unemployment rate, and 30 year mortgage rate Home equity Home price index, unemployment rate, and 30 year mortgage rate Consumer direct Unemployment rate and U.S. household income Consumer indirect New vehicle sales and unemployment rate Credit cards Unemployment rate and U.S. household income Discontinued operations Unemployment rate |
Financing Receivable Credit Quality Indicators | Credit Risk Profile by Creditworthiness Category and Vintage (a) As of March 31, 2020 Term Loans Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Loans Amortized Cost Basis Amortized Cost Basis by Origination Year and Internal Risk Rating in millions 2019 2018 2017 2016 2015 Prior Total Commercial and Industrial Risk Rating: Pass $ 3,137 $ 7,197 $ 5,497 $ 3,517 $ 2,541 $ 3,947 $ 28,058 $ 145 $ 54,039 Criticized (Accruing) 6 56 129 177 110 169 1,004 16 1,667 Criticized (Nonaccruing) — 25 16 36 8 62 126 4 277 Total commercial and industrial 3,143 7,278 5,642 3,730 2,659 4,178 29,188 165 55,983 Real estate — commercial mortgage Risk Rating: Pass 726 3,346 2,074 1,067 1,011 3,774 1,089 42 13,129 Criticized (Accruing) — 6 21 51 40 205 7 2 332 Criticized (Nonaccruing) — — 1 3 1 77 4 1 87 Total real estate — commercial mortgage 726 3,352 2,096 1,121 1,052 4,056 1,100 45 13,548 Real estate — construction Risk Rating: Pass 36 509 703 326 69 21 14 3 1,681 Criticized (Accruing) — — — — 23 3 1 — 27 Criticized (Nonaccruing) — — — — 2 — — 2 Total real estate — construction 36 509 703 326 92 26 15 3 1,710 Commercial lease financing Risk Rating: Pass 313 1,348 763 697 345 1,162 — — 4,628 Criticized (Accruing) — 2 6 12 12 12 — — 44 Criticized (Nonaccruing) — — 1 1 3 — — — 5 Total commercial lease financing 313 1,350 770 710 360 1,174 — 4,677 Total commercial loans $ 4,218 $ 12,489 $ 9,211 $ 5,887 $ 4,163 $ 9,434 $ 30,303 $ 213 $ 75,918 (a) Accrued interest of $142 million , presented in Other Assets on the Consolidated Balance Sheets, was excluded from the amortized cost basis disclosed in this table. Consumer Credit Exposure Credit Risk Profile by FICO Score and Vintage (a) As of March 31, 2020 Term Loans Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Loans Amortized Cost Basis Amortized Cost Basis by Origination Year and FICO Score in millions 2019 2018 2017 2016 2015 Prior Total Real estate — residential mortgage FICO Score: 750 and above $ 648 $ 1,923 $ 344 $ 368 $ 686 $ 1,662 — — $ 5,631 660 to 749 166 525 123 76 127 431 — — 1,448 Less than 660 5 36 28 12 33 223 — — 337 No Score — 4 3 7 5 63 — — 82 Total real estate — residential mortgage 819 2,488 498 463 851 2,379 — — 7,498 Home equity loans FICO Score: 750 and above 168 475 208 231 219 972 $ 2,898 $ 444 5,615 660 to 749 58 296 142 154 128 476 1,902 228 3,384 Less than 660 5 57 41 34 38 186 648 71 1,080 No Score 5 3 1 1 — 3 8 3 24 Total home equity loans 236 831 392 420 385 1,637 5,456 746 10,103 Consumer direct loans FICO Score: 750 and above 359 1,283 157 48 26 74 137 — 2,084 660 to 749 111 429 117 38 23 44 304 — 1,066 Less than 660 3 47 31 13 7 14 113 — 228 No Score 170 67 30 23 17 15 133 — 455 Total consumer direct loans 643 1,826 335 122 73 147 687 — 3,833 Credit cards FICO Score: 750 and above — — — — — — 459 — 459 660 to 749 — — — — — — 459 — 459 Less than 660 — — — — — — 122 — 122 No Score — — — — — — 1 — 1 Total credit cards — — — — — — 1,041 — 1,041 Consumer indirect loans FICO Score: 750 and above 383 1,066 476 278 124 114 — — 2,441 660 to 749 206 816 351 165 70 91 — — 1,699 Less than 660 38 259 154 89 47 48 — — 635 No Score 28 1 — — — 1 — — 30 Total consumer indirect loans 655 2,142 981 532 241 254 — — 4,805 Total consumer loans $ 2,353 $ 7,287 $ 2,206 $ 1,537 $ 1,550 $ 4,417 $ 7,184 $ 746 $ 27,280 (a) Accrued interest of $99 million , presented in Other Assets on the Consolidated Balance Sheets, was excluded from the amortized cost basis disclosed in this table. |
Past Due Loans Including Current Loans | The following aging analysis of past due and current loans as of March 31, 2020 , and December 31, 2019 , provides further information regarding Key’s credit exposure. Aging Analysis of Loan Portfolio (a) March 31, 2020 Current 30-59 Days Past Due (b) 60-89 Days Past Due (b) 90 and Greater Days Past Due (b) Non-performing Loans (c) Total Past Due and Non-performing Loans (c) Total Loans (d) in millions LOAN TYPE Commercial and industrial $ 55,455 $ 100 $ 78 $ 73 $ 277 $ 528 $ 55,983 Commercial real estate: Commercial mortgage 13,381 28 34 18 87 167 13,548 Construction 1,702 4 — 2 2 8 1,710 Total commercial real estate loans 15,083 32 34 20 89 175 15,258 Commercial lease financing 4,644 14 5 9 5 33 4,677 Total commercial loans $ 75,182 $ 146 $ 117 $ 102 $ 371 $ 736 $ 75,918 Real estate — residential mortgage $ 7,397 $ 10 $ 2 $ — $ 89 $ 101 $ 7,498 Home equity loans 9,910 34 11 5 143 193 10,103 Consumer direct loans 3,801 17 4 7 4 32 3,833 Credit cards 1,015 7 5 11 3 26 1,041 Consumer indirect loans 4,740 32 8 3 22 65 4,805 Total consumer loans $ 26,863 $ 100 $ 30 $ 26 $ 261 $ 417 $ 27,280 Total loans $ 102,045 $ 246 $ 147 $ 128 $ 632 $ 1,153 $ 103,198 (a) Amounts in table represent amortized cost and exclude loans held for sale. (b) Accrued interest of $241 million presented in “other assets” on the Consolidated Balance Sheets is excluded from the amortized cost basis disclosed in this table. (c) PCI loans meeting nonperforming criteria were historically excluded from Key's nonperforming disclosures. As a result of CECL implementation on January 1, 2020, PCI loans became PCD loans. PCD loans that met the definition of nonperforming are now included in nonperforming disclosures. (d) Net of unearned income, net of deferred fees and costs, and unamortized discounts and premiums. December 31, 2019 Current 30-59 Days Past Due (b) 60-89 Days Past Due (b) 90 and Greater Days Past Due (b) Non-performing Loans Total Past Due and Non-performing Loans Purchased Credit Impaired Total Loans in millions LOAN TYPE Commercial and industrial $ 47,768 $ 110 $ 52 $ 53 $ 264 $ 479 48 $ 48,295 Commercial real estate: Commercial mortgage 13,258 8 5 13 83 109 124 13,491 Construction 1,551 3 — 1 2 6 1 1,558 Total commercial real estate loans 14,809 11 5 14 85 115 125 15,049 Commercial lease financing 4,647 22 11 2 6 41 — 4,688 Total commercial loans $ 67,224 $ 143 $ 68 $ 69 $ 355 $ 635 173 $ 68,032 Real estate — residential mortgage $ 6,705 $ 7 $ 5 $ 1 $ 48 $ 61 $ 257 $ 7,023 Home equity loans 10,071 30 10 5 145 190 13 10,274 Consumer direct loans 3,484 10 5 7 4 26 3 3,513 Credit cards 1,104 6 5 12 3 26 — 1,130 Consumer indirect loans 4,609 32 8 3 22 65 — 4,674 Total consumer loans $ 25,973 $ 85 $ 33 $ 28 $ 222 $ 368 $ 273 $ 26,614 Total loans $ 93,197 $ 228 $ 101 $ 97 $ 577 $ 1,003 $ 446 $ 94,646 (a) Amounts in table represent recorded investment and exclude loans held for sale. Recorded investment represents the principal amount of the loan increased or decreased by net deferred loan fees and costs, and unamortized premium or discount, and reflects direct charge-offs. (b) Past due loan amounts exclude PCI, even if contractually past due (or if we do not expect to collect principal or interest in full based on the original contractual terms), as we are currently accreting income over the remaining term of the loans. |
Post-Modification Outstanding Recorded Investment by Concession Type for Our Commercial Accruing and Nonaccruing TDRs | The following table shows the post-modification outstanding recorded investment by concession type for our commercial and consumer accruing and nonaccruing TDRs that occurred during the periods indicated: Three Months Ended March 31, in millions 2020 2019 Consumer loans: Interest rate reduction $ 9 $ 4 Other 9 9 Total $ 18 $ 13 Total TDRs $ 18 $ 13 |
Summary Of Post-Modification Outstanding Recorded Investment, Accruing And Nonaccruing TDRs | The following table summarizes the change in the post-modification outstanding recorded investment of our accruing and nonaccruing TDRs during the periods indicated: Three Months Ended March 31, in millions 2020 2019 Balance at beginning of the period $ 347 $ 399 Additions 17 14 Payments (18 ) (39 ) Charge-offs (6 ) (9 ) Balance at end of period $ 340 $ 365 |
Breakdown of Nonperforming TDRs by Loans Category | A further breakdown of TDRs included in nonperforming loans by loan category for the periods indicated are as follows: March 31, 2020 December 31, 2019 Number of Loans Pre-modification Outstanding Recorded Investment Post-modification Outstanding Recorded Investment Number of Loans Pre-modification Outstanding Recorded Investment Post-modification Outstanding Recorded Investment dollars in millions LOAN TYPE Nonperforming: Commercial and industrial 35 $ 65 $ 43 51 $ 72 $ 53 Commercial real estate: Commercial mortgage 7 64 58 6 64 58 Total commercial real estate loans 7 64 58 6 64 58 Total commercial loans 42 129 101 57 136 111 Real estate — residential mortgage 194 16 14 181 13 11 Home equity loans 625 38 37 713 42 41 Consumer direct loans 168 2 2 172 2 2 Credit cards 324 2 2 368 2 2 Consumer indirect loans 1,097 19 15 1,131 19 16 Total consumer loans 2,408 77 70 2,565 78 72 Total nonperforming TDRs 2,450 206 171 2,622 214 183 Prior-year accruing: (a) Commercial and industrial 5 30 25 6 30 25 Commercial real estate Commercial mortgage 1 1 — 1 — — Total commercial real estate loans 1 1 — 1 — — Total commercial loans 6 31 25 7 30 25 Real estate — residential mortgage 489 36 31 493 37 31 Home equity loans 1,839 110 90 1,751 104 84 Consumer direct loans 165 4 3 139 4 3 Credit cards 577 3 1 486 3 1 Consumer indirect loans 784 33 19 714 33 20 Total consumer loans 3,854 186 144 3,583 181 139 Total prior-year accruing TDRs 3,860 217 169 3,590 211 164 Total TDRs 6,310 $ 423 $ 340 6,212 $ 425 $ 347 (a) All TDRs that were restructured prior to January 1, 2020 , and January 1, 2019 , and are fully accruing. |
Changes in Liability for Credit Losses on Off-Balance Sheet Exposures | Changes in the liability for credit losses on off balance sheet exposures are summarized as follows: Three months ended March 31, in millions 2020 2019 Balance at the end of the prior period $ 68 $ 64 Liability for credit losses on contingent guarantees at the end of the prior period 7 — Cumulative effect from change in accounting principle (a), (b) 66 — Balance at beginning of period 141 64 Provision (credit) for losses on off balance sheet exposures 20 (2 ) Balance at end of period $ 161 $ 62 (a) The cumulative effect from change in accounting principle relates to the January 1, 2020, adoption of ASU 2016-13. (b) Excludes $4 million related to the provision for other financial assets. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Assets and Liabilities Measured on Recurring Basis | The following tables present these assets and liabilities at March 31, 2020 , and December 31, 2019 . March 31, 2020 December 31, 2019 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total in millions ASSETS MEASURED ON A RECURRING BASIS Trading account assets: U.S. Treasury, agencies and corporations — $ 556 — $ 556 — $ 843 — $ 843 States and political subdivisions — 19 — 19 — 30 — 30 Other mortgage-backed securities — 176 — 176 — 78 — 78 Other securities — 38 — 38 — 44 — 44 Total trading account securities — 789 — 789 — 995 — 995 Commercial loans — 6 — 6 — 45 — 45 Total trading account assets — 795 — 795 — 1,040 — 1,040 Securities available for sale: U.S. Treasury, agencies and corporations — 341 — 341 — 334 — 334 States and political subdivisions — 4 — 4 — 4 — 4 Agency residential collateralized mortgage obligations — 12,045 — 12,045 — 12,783 — 12,783 Agency residential mortgage-backed securities — 1,539 — 1,539 — 1,714 — 1,714 Agency commercial mortgage-backed securities — 6,869 — 6,869 — 6,997 — 6,997 Other securities — — $ 9 9 — — $ 11 11 Total securities available for sale — 20,798 9 20,807 — 21,832 11 21,843 Other investments: Principal investments: Direct — — 1 1 — — 1 1 Indirect (measured at NAV) (a) — — — 64 — — — 68 Total principal investments — — 1 65 — — 1 69 Equity investments: Direct — — 10 10 — — 12 12 Direct (measured at NAV) (a) — — — 1 — — — 1 Indirect (measured at NAV) (a) — — — 8 — — — 8 Total equity investments — — 10 19 — — 12 21 Total other investments — — 11 84 — — 13 90 Loans, net of unearned income (residential) — — 3 3 — — 4 4 Loans held for sale (residential) — 142 10 152 — 140 — 140 Derivative assets: Interest rate — 1,845 96 1,941 — 941 22 963 Foreign exchange 124 40 — 164 $ 49 18 — 67 Commodity — 704 — 704 — 208 — 208 Credit — 6 5 11 — — 1 1 Other — 34 23 57 — 9 5 14 Derivative assets 124 2,629 124 2,877 49 1,176 28 1,253 Netting adjustments (b) — — — (809 ) — — — (473 ) Total derivative assets 124 2,629 124 2,068 49 1,176 28 780 Accrued income and other assets — — — — — — — — Total assets on a recurring basis at fair value $ 124 $ 24,364 $ 157 $ 23,909 $ 49 $ 24,188 $ 56 $ 23,897 LIABILITIES MEASURED ON A RECURRING BASIS Bank notes and other short-term borrowings: Short positions $ 124 $ 482 — $ 606 $ 19 $ 686 — $ 705 Derivative liabilities: Interest rate — 329 — 329 — 253 — 253 Foreign exchange 117 40 — 157 43 17 — 60 Commodity — 690 — 690 — 200 — 200 Credit — — $ 28 28 — 1 9 10 Other — 40 — 40 — 10 — 10 Derivative liabilities 117 1,099 28 1,244 43 481 9 533 Netting adjustments (b) — — — (595 ) — — — (335 ) Total derivative liabilities 117 1,099 28 649 43 481 9 198 Total liabilities on a recurring basis at fair value $ 241 $ 1,581 $ 28 $ 1,255 $ 62 $ 1,167 9 $ 903 (a) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheet. (b) 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. 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. |
Fair Value Measurement Inputs and Valuation Techniques | The following table describes the valuation techniques and significant inputs used to measure the classes of assets and liabilities reported at fair value on a recurring basis, as well as the classification of each within the valuation hierarchy. Asset/liability class Valuation technique Valuation hierarchy classification(s) Securities (trading account assets and available for sale) Fair value of level 1 securities is determined by: • Quoted market prices available in an active market for identical securities. This includes exchange-traded equity securities. Fair value of level 2 securities is determined by: • Pricing models (either by a third party pricing service or internally). Inputs include: yields, benchmark securities, bids, 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. • Observable market prices of similar securities. Fair value of level 3 securities is determined by: • Internal models, principally discounted cash flow models (income approach). • Revenue multiples of comparable public companies (market approach). For level 3 securities, increases (decreases) in the discount rate and marketability discount used in the discounted cash flow models would have resulted in lower (higher) fair value measurements. Higher volatility factors would have further magnified changes in fair value. 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. Level 1, 2, and 3 (primarily Level 2) Commercial loans (trading account assets) Fair value is based on: • Observable market price spreads for similar loans. Valuations reflect prices within the bid-ask spread that are most representative of fair value. Level 2 Principal investments (direct) Direct principal investments consist of equity and debt instruments of private companies made by our principal investing entities. Fair value is determined using: • Operating performance and market multiples of comparable businesses • Other unique facts and circumstances related to each individual investment Direct principal investments 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. We are in the process of winding down our direct principal investment portfolio. As of March 31, 2020, the balance is less than $1 million. Level 3 Principal investments (indirect) Indirect principal 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 and qualify for the practical expedient 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). Indirect principal investments are also accounted for as investment companies, whereby each investment is adjusted to fair value with any net realized or unrealized gain/loss recorded in the current period’s earnings. Under the provisions of the Volcker Rule, we are required to dispose or conform our indirect investments to the requirements of the statute by no later than July 21, 2022. As of March 31, 2020, we have not committed to a plan to sell these investments. Therefore, these investments continue to be valued using the net asset value per share methodology. NAV The following table describes the valuation techniques and significant inputs used to measure the significant classes of assets and liabilities reported at fair value on a nonrecurring basis, as well as the classification of each within the valuation hierarchy. Asset/liability class Valuation technique Valuation hierarchy classification(s) Impaired loans and leases Loans are evaluated for impairment on a quarterly basis; impairment typically occurs when there is evidence of a probable loss and the expected value of the loan is less than the contractual value of the loan. 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 (Level 3), or the loan’s observable market price based on recent sales of similar loans and collateral (Level 2). Cash flow analysis considers internally developed inputs including: • Discount rates • Default rates • Changes in collateral values and costs of foreclosure Level 2 and 3 Commercial loans and student loans held for sale Through a quarterly analysis of our loan portfolios held for sale, which include both performing and nonperforming commercial loans and student loans, we determine any adjustments necessary to record the portfolios at the lower of cost or fair value in accordance with GAAP. Valuation inputs include: • Non-binding bids for the respective loans or similar loans • Recent sales transactions • Internal models that emulate recent securitizations Level 2 and 3 Asset/liability class Valuation technique Valuation hierarchy classification(s) Direct financing leases and operating lease assets held for sale Valuations of direct financing leases and operating lease assets held for sale are performed using an internal model that relies on market data, including: • Swap rates and bond ratings • Our own assumptions about the exit market for the leases • Details about the individual leases in the portfolio Leases for which we receive a current nonbinding bid, and for which the sale is considered probable, may be classified as Level 2. Valuations of lease and operating lease assets held for sale that employ our own assumptions are classified as Level 3 assets. The inputs based on our own assumptions include changes in the value of leased items and internal credit ratings. Level 2 and 3 OREO, other repossessed personal property, and right-of-use assets (a) OREO, other repossessed properties, and right-of-use assets are valued based on: • 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. Level 2 and 3 LIHTC, HTC, and NMTC investments (a) Valuation of LIHTC, HTC and NMTC involves measuring the present value of future tax benefits and comparing that value against the current carrying value of the investment. Expected future tax benefits are discounted to their present value using discounted cash flow modeling that incorporates an appropriate risk premium. LIHTC and HTC investments are impaired when it is more likely than not that the carrying amount of the investment will not be realized. Level 3 Other equity investments We have other investments in equity securities that do not have readily determinable fair values and do not qualify for the practical expedient to measure the investment using a net asset value per share. We have elected to measure these securities at cost less impairment plus or minus adjustments due to observable orderly transactions. Impairment is recorded when there is evidence that the expected fair value of the investment has declined to below the recorded cost. At each reporting period, we assess if these investments continue to qualify for this measurement alternative. Level 3 Mortgage Servicing Assets ( a) Refer to Note 8. Mortgage Servicing Assets Level 3 Asset/liability class Valuation technique Valuation hierarchy classification(s) Other direct equity investments Fair value is determined using: • Discounted cash flows • Operating performance and market/exit multiples of comparable businesses • Other unique facts and circumstances related to each individual investment For level 3 securities, increases (decreases) in the discount rate and marketability discount used in the discounted cash flow models would have resulted in lower (higher) fair value measurements. Higher volatility factors would have further magnified changes in fair value. Level 2 investments reflect the price of recent investments, which is deemed representative of fair value. Level 2 and 3 Other direct and indirect equity investments (NAV) Certain direct investments do not have readily determinable fair values and qualify for the practical expedient in the accounting guidance that allows us to estimate fair value based upon net asset value per share. NAV Loans held for sale and held for investment (residential) Residential mortgage loans held for sale are accounted for at fair value. The election of the fair value option aligns the accounting for these assets with the related forward loan sale commitments. Fair values are based on: • Quoted market prices, where available • Prices for other traded mortgage loans with similar characteristics • Purchase commitments and bid information received from market participants Prices are adjusted as necessary to include: • The embedded servicing value in the loans • The specific characteristics of certain loans that are priced based on the pricing of similar loans. (These adjustments represent unobservable inputs to the valuation but are not considered significant given the relative insensitivity of the value to changes in these inputs to the fair value of the loans.) Residential loans held for investment: Certain residential loans held for sale contain salability exceptions that make them unable to be sold into the performing loan sales market. Loans in this category are transferred to the held to maturity loan portfolio and are included in “Loans, net of unearned income” on the balance sheet. This type of loan is classified as level 3 in the valuation hierarchy as transaction details regarding sales of this type of loan are often unavailable. Fair value is based upon: • Unobservable bid information from brokers and investors Higher (lower) unobservable bid information would have resulted in higher (lower) fair value measurements. Level 1, 2 and 3 (primarily level 2) Derivatives Exchange-traded derivatives are valued using quoted prices in active markets and, therefore, are classified as Level 1 instruments. The majority of our derivative positions are level 2 and are valued using internally developed models based on market convention and observable market inputs. These derivative contracts include interest rate swaps, certain options, floors, cross currency swaps, credit default swaps, and forward mortgage loan sale commitments. Significant inputs used in the valuation models include: • Interest rate curves • Yield curves • LIBOR and Overnight Index Swap (OIS) discount rates • LIBOR and OIS curves, index pricing curves, foreign currency curves • Volatility surfaces (a three-dimensional graph of implied volatility against strike price and maturity) Level 1, 2, and 3 (primarily level 2) Asset/liability class Valuation technique Valuation hierarchy classification(s) Derivatives (continued) We have 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, including: • Credit spreads and interest rates The unobservable internally derived assumptions include: • Loss given default • Internal risk assessments of customers and the remaining term of the underlying transactions 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. We use interest rate lock commitments for our residential mortgage business, which are classified as Level 3 instruments. The significant components of the valuation model include: • Interest rates observable in the market • Investor supplied prices for similar securities • The probability of the loan closing (i.e. the "pull-through" amount, a significant unobservable input). Increases (decreases) in the probability of the loan closing would have resulted in higher (lower) fair value measurements. Valuation of residential mortgage forward sale commitments utilizes observable market prices of comparable commitments and mortgage securities (Level 2). Level 1, 2, and 3 (primarily level 2) Liability for short positions This includes fixed income securities held by our broker dealer in its trading inventory. Fair value of level 1 securities is determined by: • Quoted market prices available in an active market for identical securities Fair value of level 2 securities is determined by: • Observable market prices of similar securities • Market activity, spreads, credit ratings and interest rates for each security type Level 1 and 2 |
Fair Value of Direct and Indirect Investments, Related Unfunded Commitments and Financial Support Provided | The following table presents the fair value of our direct and indirect principal investments and related unfunded commitments at March 31, 2020 , as well as financial support provided for the three months ended March 31, 2020 , and March 31, 2019 . Financial support provided Three months ended March 31, March 31, 2020 2020 2019 in millions Fair Value Unfunded Commitments Funded Commitments Funded Other Funded Commitments Funded Other INVESTMENT TYPE Direct investments $ 1 — — $ — — $ 1 Indirect investments (measured at NAV) (a) 64 $ 20 $ — — $ 1 — Total $ 65 $ 20 — $ — $ 1 $ 1 (a) 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. At March 31, 2020 , no significant liquidation of the underlying investments has been communicated to Key. 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. |
Change in Fair Values of Level 3 Financial Instruments | The following table shows the components of the change in the fair values of our Level 3 financial instruments measured at fair value on a recurring basis for the three months ended March 31, 2020 , and March 31, 2019 . in millions Beginning of Period Balance Gains (Losses) Included in Other Comprehensive Income Gains (Losses) Included in Earnings Purchases Sales Settlements Transfers Other Transfers into Level 3 Transfers out of Level 3 End of Period Balance Unrealized Gains (Losses) Included in Earnings Three months ended March 31, 2020 Securities available for sale Other securities $ 11 $ (2 ) — — — — — — — $ 9 — Other investments Principal investments Direct 1 — — $ — $ — — — — — 1 — Equity investments Direct 12 — (2 ) (a) — — — — $ — — 10 (2 ) (a) Loans held for sale (residential) — — — — — — $ 10 — — 10 — Loans, net of unearned income (residential) 4 — — — (1 ) — — — — 3 — Derivative instruments (b) Interest rate 22 — $ 19 (c) 11 (1 ) — — 55 (d) $ (10 ) (d) 96 — Credit (8 ) — (16 ) (c) 1 — — — — — (23 ) — Other (e) 5 — — — — — 18 — — 23 — in millions Beginning of Period Balance Gains (Losses) Included in Other Comprehensive Income Gains (Losses) Included in Earnings Purchases Sales Settlements Transfers Other Transfers into Level 3 Transfers out of Level 3 End of Period Balance Unrealized Gains (Losses) Included in Earnings Three months ended March 31, 2019 Securities available for sale Other securities $ 20 5 — — — — — — — $ 25 — Other investments Principal investments Direct (a) 1 — — $ 1 $ (1 ) — — — — 1 — Equity investments Direct 7 — — — — — — $ 1 — 8 — Loans held for sale (residential) — — — — — — $ 1 — — 1 — Loans, net of unearned income (residential) 3 — — — — — — — — 3 — Derivative instruments (b) Interest rate 5 — $ 1 (c) — — — — 1 (d) $ (4 ) (d) 3 — Credit — — — (1 ) — $ — — — — (1 ) — Other (e) 3 — — — — — $ 1 — — 4 — (a) Realized and unrealized gains and losses on principal investments and other equity investments are reported in “other income” on the income statement. (b) Amounts represent Level 3 derivative assets less Level 3 derivative liabilities. (c) Realized and unrealized gains and losses on derivative instruments are reported in “corporate services income” and “other income” on the income statement. (d) 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. (e) Amounts represent Level 3 interest rate lock commitments. |
Assets and Liabilities Measured at Fair Value on Nonrecurring Basis | The following table presents our assets measured at fair value on a nonrecurring basis at March 31, 2020 , and December 31, 2019 : March 31, 2020 December 31, 2019 in millions Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total ASSETS MEASURED ON A NONRECURRING BASIS Impaired loans and leases — $ — $ 33 $ 33 — — $ 76 $ 76 Accrued income and other assets — — 64 64 — 118 51 169 Total assets on a nonrecurring basis at fair value — $ — $ 97 $ 97 — 118 $ 127 $ 245 |
Quantitative Information about Level 3 Fair Value Measurements | Level 3 Asset (Liability) Valuation Technique Significant Unobservable Input Range (Weighted-Average) (b), (c) dollars in millions March 31, 2020 December 31, 2019 March 31, 2020 December 31, 2019 Recurring Securities available-for-sale: Other securities $ 9 $ 11 Discounted cash flows Discount rate N/A (14.82%) N/A (16.10%) Marketability discount N/A (30.00%) N/A (30.00%) Volatility factor N/A (43.00%) N/A (43.00%) Other investments: (a) Equity investments Direct 10 12 Discounted cash flows Discount rate 12.40 - 17.03% (14.75%) 13.91 - 17.24% (15.61%) Marketability discount N/A (30.00%) N/A (30.00%) Volatility factor N/A (51.00%) N/A (47.00%) Loans held for sale (residential) 10 — Market comparable pricing Comparability factor 104.15-107.01% (105.25%) N/A Loans, net of unearned income (residential) 3 4 Market comparable pricing Comparability factor 79.00-98.00% (91.07%) 79.00 - 98.00% (91.05%) Derivative instruments: Interest rate 96 22 Discounted cash flows Probability of default .02 - 100% (13.90%) .02 - 100% (5.40%) Internal risk rating 1 - 19 (9.178) 1 - 19 (9.168) Loss given default 0 - 1 (.476) 0 - 1 (.492) Credit (assets) 5 1 Discounted cash flows Probability of default .02 - 100% (13.30%) .02 - 100% (4.2%) Internal risk rating 1 - 19 (10.14) 1 - 19 (10.13) Loss given default 0 - 1 (.493) 0 - 1 (.498) Credit (liabilities) (28 ) (9 ) Discounted cash flows Probability of default .02 - 100% (25.19%) .02 - 100% (12.24%) Internal risk rating 1 - 19 (7.76) 1 - 19 (8.058) Loss given default 0 - 1 (.394) 0 - 1 (.411) Other (d) 23 5 Discounted cash flows Loan closing rates 27.34-99.31 % (74.08%) 37.71 - 99.69% (79.33%) Nonrecurring Impaired loans 33 76 Fair value of underlying collateral Discount rate 0 - 90.00% (23.00%) 0 - 60.00% (10.00%) Accrued income and other assets: OREO and other Level 3 assets (e) 2 5 Appraised value Appraised value N/M N/M (a) Principal investments, direct is excluded from this table as the balance at March 31, 2020 , and December 31, 2019 , is insignificant (less than $1 million ). (b) The weighted average of significant unobservable inputs is calculated using a weighting relative to fair value. (c) For significant unobservable inputs with no range, a single figure is reported to denote the single quantitative factor used. (d) Amounts represent interest rate lock commitments. (e) Excludes $62 million and $46 million pertaining to mortgage servicing assets at March 31, 2020 and December 31, 2019 . Refer to Note 8 (“ Mortgage Servicing Assets ”) for significant unobservable inputs pertaining to these assets. |
Fair Value Disclosures of Financial Instruments | The levels in the fair value hierarchy ascribed to our financial instruments and the related carrying amounts at March 31, 2020 , and December 31, 2019 , are shown in the following tables. Assets and liabilities are further arranged by measurement category. March 31, 2020 Fair Value in millions Carrying Amount Level 1 Level 2 Level 3 Measured at NAV Netting Adjustment Total ASSETS (by measurement category) Fair value - net income Trading account assets (b) $ 795 $ — $ 795 — — — $ 795 Other investments (b) 679 — — $ 606 $ 73 — 679 Loans, net of unearned income (residential) (d) 3 — — 3 — — 3 Loans held for sale (residential) (b) 152 — 142 10 — — 152 Derivative assets - trading (b) 2,008 124 2,563 124 — $ (803 ) (f) 2,008 Fair value - OCI Securities available for sale (b) 20,807 — 20,798 $ 9 — — 20,807 Derivative assets - hedging (b)(g) 60 — 66 — — (6 ) (f) 60 Amortized cost Held-to-maturity securities (c) 9,638 — 10,012 — — — 10,012 Loans, net of unearned income (d) 101,836 — — 99,535 — — 99,535 Loans held for sale (b) 1,991 — — 1,991 — — 1,991 Other Cash and short-term investments (a) 4,938 4,938 — — — — 4,938 LIABILITIES (by measurement category) Fair value - net income Derivative liabilities - trading (b) $ 649 $ 117 $ 1,096 28 — $ (592 ) (f) $ 649 Fair value - OCI Derivative liabilities - hedging (b)(g) — — 3 — — (3 ) (f) — Amortized cost Time deposits (e) 10,253 — 10,336 — — — 10,336 Short-term borrowings (a) 7,050 124 6,926 — — — 7,050 Long-term debt (e) 13,732 13,144 715 — — — 13,859 Other Deposits with no stated maturity (a) 105,051 — 105,051 — — — 105,051 December 31, 2019 Fair Value in millions Carrying Amount Level 1 Level 2 Level 3 Measured at NAV Netting Adjustment Total ASSETS (by measurement category) Fair value - net income Trading account assets (b) $ 1,040 — $ 1,040 — — — $ 1,040 Other investments (b) 605 — — $ 528 $ 77 — 605 Loans, net of unearned income (residential) (d) 4 — — 4 — — 4 Loans held for sale (residential) (b) 140 — 140 — — — 140 Derivative assets - trading (b) 715 $ 49 985 28 — $ (347 ) (f) 715 Fair value - OCI Securities available for sale (b) 21,843 — 21,832 11 — — 21,843 Derivative assets - hedging (b)(g) 65 — 191 — — (126 ) (f) 65 Amortized cost Held-to-maturity securities (c) 10,067 — 10,116 — — — 10,116 Loans, net of unearned income (d) 93,742 — — 92,641 — — 92,641 Loans held for sale (b) 1,194 — — 1,194 — — 1,194 Other Cash and short-term investments (a) 2,004 2,004 — — — — 2,004 LIABILITIES (by measurement category) Fair value - net income Derivative liabilities - trading (b) $ 194 $ 43 $ 461 9 — $ (319 ) (f) $ 194 Fair value - OCI Derivative liabilities - hedging (b)(g) 4 — 20 — — (16 ) (f) 4 Amortized cost Time deposits (e) 11,652 — 11,752 — — — 11,752 Short-term borrowings (a) 1,092 19 1,073 — — — 1,092 Long-term debt (e) 12,448 12,694 249 — — — 12,943 Other Deposits with no stated maturity (a) 100,218 — 100,218 — — — 100,218 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 and Liabilities Measured at Fair Value on a Nonrecurring Basis” in this Note. Investments accounted for under the cost method (or cost less impairment adjusted for observable price changes for certain equity investments) are classified as Level 3 assets. These investments are not actively traded in an open market as sales for these types of investments are rare. The carrying amount of the investments carried at cost are adjusted for declines in value if they are considered to be other-than-temporary (or due to observable orderly transactions of the same issuer for equity investments eligible for the cost less impairment measurement alternative). These adjustments are included in “other income” on the income statement. (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 that 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 the 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. (g) Derivative assets-hedging and derivative liabilities-hedging includes both cash flow and fair value hedges. Additional information regarding our accounting policies for cash flow and fair value hedges is provided in Note 1 (“ 1. Summary of Significant Accounting Policies ”) under the heading “Derivatives and Hedging” beginning on page 105 of our 2019 Form 10-K. |
Securities (Tables)
Securities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Details of Securities | The amortized cost, unrealized gains and losses, and approximate fair value of our securities available for sale and held-to-maturity securities are presented in the following tables. Gross unrealized gains and losses represent the difference between the amortized cost and the fair value of securities on the balance sheet as of the dates indicated. Accordingly, the amount of these gains and losses may change in the future as market conditions change. March 31, 2020 December 31, 2019 in millions Amortized Cost (a) Gross Unrealized Gains Gross Unrealized Losses Fair Value Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value SECURITIES AVAILABLE FOR SALE U.S. Treasury, agencies, and corporations $ 340 $ 1 — $ 341 $ 334 — — $ 334 States and political subdivisions 4 — — 4 4 — — 4 Agency residential collateralized mortgage obligations 11,705 342 $ 2 12,045 12,772 $ 82 $ 71 12,783 Agency residential mortgage-backed securities 1,472 67 — 1,539 1,677 41 4 1,714 Agency commercial mortgage-backed securities 6,597 277 5 6,869 6,898 139 40 6,997 Other securities 8 1 — 9 7 4 — 11 Total securities available for sale $ 20,126 $ 688 $ 7 $ 20,807 $ 21,692 $ 266 $ 115 $ 21,843 HELD-TO-MATURITY SECURITIES Agency residential collateralized mortgage obligations $ 5,354 $ 157 — $ 5,511 $ 5,692 $ 23 $ 49 $ 5,666 Agency residential mortgage-backed securities 390 19 — 409 409 6 — 415 Agency commercial mortgage-backed securities 3,868 198 — 4,066 3,940 78 9 4,009 Asset-backed securities 11 — — 11 11 — — 11 Other securities 15 — — 15 15 — — 15 Total held-to-maturity securities $ 9,638 $ 374 — $ 10,012 $ 10,067 $ 107 $ 58 $ 10,116 (a) Amortized cost amounts exclude accrued interest receivable which is recorded within “other assets” on the balance sheet. At March 31, 2020 , accrued interest receivable on available for sale securities and held-to-maturity securities totaled $42 million and $19 million , respectively. |
Schedule of Unrealized Loss on Investments | The following table summarizes available for sale securities in an unrealized loss position for which an allowance for credit losses has not been recorded as of March 31, 2020 , and December 31, 2019 . Duration of Unrealized Loss Position Less than 12 Months 12 Months or Longer Total in millions Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses March 31, 2020 Securities available for sale: Agency residential collateralized mortgage obligations $ 135 — (a) $ 416 $ 2 $ 551 $ 2 Agency residential mortgage-backed securities 10 — (a) 7 — (a) 17 — Agency commercial mortgage-backed securities 1,083 $ 5 — — 1,083 5 Other securities 1 — (a) — — 1 — Held-to-maturity securities: Agency residential collateralized mortgage obligations 8 — (a) 60 — (a) 68 — Asset-backed securities 2 — (a) — — 2 — Other securities 8 — (a) — — 8 — Total securities in an unrealized loss position $ 1,247 $ 5 $ 483 $ 2 $ 1,730 $ 7 December 31, 2019 Securities available for sale: U.S. Treasury, agencies, and corporations $ 30 — (b) $ 30 — (b) $ 60 — Agency residential collateralized mortgage obligations 3,432 $ 20 3,221 $ 51 6,653 $ 71 Agency residential mortgage-backed securities 33 — (b) 629 4 662 4 Agency commercial mortgage-backed securities 1,541 17 1,213 23 2,754 40 Held-to-maturity securities: Agency residential collateralized mortgage obligations 1,626 14 2,289 35 3,915 49 Agency residential mortgage-backed securities 56 — (b) — — 56 — Agency commercial mortgage-backed securities 518 9 — — 518 9 Asset-backed securities 11 — (b) — — 11 — Other securities 3 — (b) — — 3 — Total securities in an unrealized loss position $ 7,250 $ 60 $ 7,382 $ 113 $ 14,632 $ 173 (a) At March 31, 2020 , gross unrealized losses totaled less than $1 million for agency residential collateralized mortgage obligations, agency residential mortgage-backed securities, and other securities available for sale with a loss duration of less than 12 months. At March 31, 2020 , gross unrealized losses totaled less than $1 million for agency residential collateralized mortgage obligations, asset-backed securities, and other securities held-to-maturity with a loss duration of less than 12 months. At March 31, 2020 , gross unrealized losses totaled less than $1 million for agency residential mortgage-backed securities available for sale with a loss duration greater than 12 months or longer. At March 31, 2020 , gross unrealized losses totaled less than $1 million for agency residential collateralized mortgage obligations held-to-maturity with a loss duration greater than 12 months or longer. (b) At December 31, 2019 , gross unrealized losses totaled less than $1 million for U.S. Treasury, agencies, and corporations and agency residential mortgage-backed securities available for sale with a loss duration of less than 12 months. At December 31, 2019 , gross unrealized losses totaled less than $1 million for U.S. Treasury, Agencies, and Corporations securities available for sale with a loss duration greater than 12 months or longer. At December 31, 2019 , gross unrealized losses totaled less than $1 million for agency residential residential mortgage-backed securities, asset-backed securities, and other securities held-to-maturity with a loss duration of less than 12 months. |
Securities by Maturity | The following table shows our securities by remaining maturity. CMOs and other mortgage-backed securities in the available for sale portfolio and 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. March 31, 2020 Securities Available for Sale Held to Maturity Securities in millions Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ 571 $ 577 $ 60 $ 61 Due after one through five years 14,660 15,101 6,690 6,881 Due after five through ten years 4,893 5,127 2,888 3,070 Due after ten years 2 2 — — Total $ 20,126 $ 20,807 $ 9,638 $ 10,012 |
Derivatives and Hedging Activ_2
Derivatives and Hedging Activities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Values, Volume of Activity and Gain (Loss) Information Related to Derivative Instruments | The following table summarizes the fair values of our derivative instruments on a gross and net basis as of March 31, 2020 , and December 31, 2019 . The derivative asset and liability balances are presented on a gross basis, prior to the application of bilateral collateral and master netting agreements, but after the variation margin payments with central clearing organizations have been applied as settlement, as applicable. 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. Securities collateral related to legally enforceable master netting agreements is not offset on the balance sheet. Our derivative instruments are included in “accrued income and other assets” or “accrued expenses and other liabilities” on the balance sheet, as follows: March 31, 2020 December 31, 2019 Fair Value Fair Value in millions Notional Amount Derivative Assets Derivative Liabilities Notional Amount Derivative Assets Derivative Liabilities Derivatives designated as hedging instruments: Interest rate $ 25,804 $ 66 $ 3 $ 39,208 $ 191 $ 20 Derivatives not designated as hedging instruments: Interest rate 77,335 1,875 326 71,209 772 233 Foreign exchange 6,340 164 157 6,572 67 60 Commodity 4,556 704 690 5,324 208 200 Credit 959 11 28 427 1 10 Other (a) 5,408 57 40 3,337 14 10 Total 94,598 2,811 1,241 86,869 1,062 513 Netting adjustments (b) — (809 ) (595 ) — (473 ) (335 ) Net derivatives in the balance sheet 120,402 2,068 649 126,077 780 198 Other collateral (c) — (3 ) — — (2 ) (42 ) Net derivative amounts $ 120,402 $ 2,065 $ 649 $ 126,077 $ 778 $ 156 (a) Other derivatives include interest rate lock commitments and forward sale commitments related to our residential mortgage banking activities, forward purchase and sales contracts consisting of contractual commitments associated with “to be announced” securities and when-issued securities, and other customized derivative contracts. (b) 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. (c) 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 tables summarize the amounts that were recorded on the balance sheet as of March 31, 2020 , and December 31, 2019 , related to cumulative basis adjustments for fair value hedges. March 31, 2020 in millions Balance sheet line item in which the hedge item is included Carrying amount of hedged item (a) Hedge accounting basis adjustment (b) Interest rate contracts Long-term debt $ 7,774 $ 533 December 31, 2019 Balance sheet line item in which the hedge item is included Carrying amount of hedged item (a) Hedge accounting basis adjustment (b) Interest rate contracts Long-term debt $ 8,408 $ 240 (a) The carrying amount represents the portion of the liability designated as the hedged item. (b) Basis adjustments related to de-designated hedged items that no longer qualify as fair value hedges reduced the hedge accounting basis adjustment by $9 million and $9 million at March 31, 2020 , and December 31, 2019 , respectively, |
Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location | The following tables summarize the effect of fair value and cash flow hedge accounting on the income statement for the three- month periods ended March 31, 2020 , and March 31, 2019 . Location and amount of net gains (losses) recognized in income on fair value and cash flow hedging relationships in millions Interest expense – long-term debt Interest income – loans Interest expense - deposits Other income Three months ended March 31, 2020 Total amounts presented in the consolidated statement of income $ (90 ) $ 1,026 $ (169 ) $ (88 ) Net gains (losses) on fair value hedging relationships Interest contracts Recognized on hedged items (294 ) — — — Recognized on derivatives designated as hedging instruments 311 — — — Net income (expense) recognized on fair value hedges $ 17 — — — Net gain (loss) on cash flow hedging relationships Interest contracts Realized gains (losses) (pre-tax) reclassified from AOCI into net income $ (1 ) $ 34 — — Net income (expense) recognized on cash flow hedges $ (1 ) $ 34 — — Three months ended March 31, 2019 Total amounts presented in the consolidated statement of income $ (120 ) $ 1,066 $ (202 ) $ 10 Net gains (losses) on fair value hedging relationships Interest contracts Recognized on hedged items $ (93 ) — $ — — Recognized on derivatives designated as hedging instruments 82 — — — Net income (expense) recognized on fair value hedges $ (11 ) — $ — — Net gain (loss) on cash flow hedging relationships Interest contracts Realized gains (losses) (pre-tax) reclassified from AOCI into net income $ (1 ) $ (24 ) — — Net income (expense) recognized on cash flow hedges $ (1 ) $ (24 ) — — |
Derivative Instrument Cash Flow Hedge Earning Recognized by Income Statement Location | The following tables summarize the pre-tax net gains (losses) on our cash flow and net investment hedges for the three- month periods ended March 31, 2020 , and March 31, 2019 , and where they are recorded on the income statement. The table includes net gains (losses) recognized in OCI during the period and net gains (losses) reclassified from OCI into income during the current period. in millions Net Gains (Losses) Recognized in OCI Income Statement Location of Net Gains (Losses) Reclassified From OCI Into Income Net Gains (Losses) Reclassified From OCI Into Income Three months ended March 31, 2020 Cash Flow Hedges Interest rate $ 562 Interest income — Loans $ 34 Interest rate (5 ) Interest expense — Long-term debt (1 ) Interest rate (30 ) Investment banking and debt placement fees — Total $ 527 $ 33 Three months ended March 31, 2019 Cash Flow Hedges Interest rate $ 115 Interest income — Loans $ (24 ) Interest rate (1 ) Interest expense — Long-term debt (1 ) Interest rate (5 ) Investment banking and debt placement fees — Net Investment Hedges Foreign exchange contracts (3 ) Other Income — Total $ 106 $ (25 ) |
Pre-Tax Net Gains (Losses) on Derivatives Not Designated as Hedging Instruments | The following table summarizes the pre-tax net gains (losses) on our derivatives that are not designated as hedging instruments for the three- month periods ended March 31, 2020 , and March 31, 2019 , and where they are recorded on the income statement. Three months ended March 31, 2020 Three months ended March 31, 2019 in millions Corporate services income Consumer mortgage income Other income Total Corporate services income Consumer mortgage income Other income Total NET GAINS (LOSSES) Interest rate $ 11 — $ (9 ) $ 2 $ 8 — $ (2 ) $ 6 Foreign exchange 12 — — 12 10 — — 10 Commodity 2 — — 2 1 — — 1 Credit (16 ) — 1 (15 ) 1 — (7 ) (6 ) Other — 4 9 13 — — 1 1 Total net gains (losses) $ 9 4 $ 1 $ 14 $ 20 — $ (8 ) $ 12 |
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 March 31, 2020 December 31, 2019 Interest rate $ 1,744 $ 848 Foreign exchange 70 30 Commodity 559 95 Credit 8 — Other 57 14 Derivative assets before collateral 2,438 987 Less: Related collateral 370 207 Total derivative assets $ 2,068 $ 780 |
Credit Derivatives Sold and Held | The following table provides information on the types of credit derivatives sold by us and held on the balance sheet at March 31, 2020 , and December 31, 2019 . The notional amount represents the amount that the seller could be required to pay. 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 implied from observed credit indices in the credit default swap market, which are mapped to reference entities based on Key’s internal risk rating. March 31, 2020 December 31, 2019 dollars in millions Notional Amount Average Term (Years) Payment / Performance Risk Notional Amount Average Term (Years) Payment / Performance Risk Other $ 358 14.62 27.09 % $ 134 14.30 14.56 % Total credit derivatives sold $ 358 — — $ 134 — — |
Credit Risk Contingent Feature | The following table summarizes the additional cash and securities collateral that KeyBank would have been required to deliver under the ISDA Master Agreements had the credit risk contingent features been triggered for the derivative contracts in a net liability position as of March 31, 2020 , and December 31, 2019 . The additional collateral amounts were calculated based on scenarios under which KeyBank’s ratings are downgraded one, two, or three ratings as of March 31, 2020 , and December 31, 2019 , and take into account all collateral already posted. A similar calculation was performed for KeyCorp, and no additional collateral would have been required as of March 31, 2020 , and December 31, 2019 . For more information about the credit ratings for KeyBank and KeyCorp, see the discussion under the heading “Factors affecting liquidity” in the section entitled “Liquidity risk management” in Item 2 of this report. March 31, 2020 December 31, 2019 in millions Moody’s S&P Moody’s S&P KeyBank’s long-term senior unsecured credit ratings A3 A- A3 A- One rating downgrade $ 1 $ 1 $ 1 $ 1 Two rating downgrades 1 1 1 1 Three rating downgrades 1 1 1 1 |
Mortgage Servicing Assets (Tabl
Mortgage Servicing Assets (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Servicing Asset [Abstract] | |
Changes in Carrying Amount of Mortgage Servicing Assets | Changes in the carrying amount of commercial mortgage servicing assets are summarized as follows: Three months ended March 31, in millions 2020 2019 Balance at beginning of period $ 539 $ 502 Servicing retained from loan sales 24 18 Purchases 11 6 Amortization (29 ) (29 ) Temporary impairments (2 ) — Balance at end of period $ 543 $ 497 Fair value at end of period $ 655 $ 727 Changes in the carrying amount of residential mortgage servicing assets are summarized as follows: Three months ended March 31, in millions 2020 2019 Balance at beginning of period $ 46 $ 37 Servicing retained from loan sales 5 2 Purchases — — Amortization (2 ) (1 ) Temporary impairments (9 ) — Balance at end of period $ 40 $ 38 Fair value at end of period $ 41 $ 50 |
Schedule of Range and Weighted-Average of Significant Unobservable Inputs | The range and weighted average of the significant unobservable inputs used to determine the fair value of our commercial mortgage servicing assets at March 31, 2020 , and March 31, 2019 , along with the valuation techniques, are shown in the following table: dollars in millions March 31, 2020 March 31, 2019 Valuation Technique Significant Unobservable Input Range (Weighted Average) Discounted cash flow Expected defaults 0.97 - 2.00% (1.14%) 1.00 - 2.00% (1.14%) Residual cash flows discount rate 7.00 - 11.42% (9.24%) 7.00 - 15.00% (9.19%) Escrow earn rate 1.20 - 1.92% (1.67%) 2.22 - 3.70% (2.98%) Loan assumption rate 0.01 - 3.37% (1.32%) 0.00 - 3.18% (1.39%) March 31, 2020 , and March 31, 2019 , along with the valuation techniques, are shown in the following table: dollars in millions March 31, 2020 March 31, 2019 Valuation Technique Significant Unobservable Input Range (Weighted Average) Discounted cash flow Prepayment speed 10.50 - 55.60% (17.16%) 9.32 - 58.76% (9.93%) Discount rate 7.50 - 8.50% (7.52%) 7.50 - 10.00% (7.54%) Servicing cost $62 - $8,375 ($68.14) $62 - $4,375 ($68.23) |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Operating Lease, Lease Income | The components of equipment leasing income are summarized in the table below: Three months ended March 31, in millions 2020 2019 Sales-type and direct financing leases Interest income on lease receivable $ 28 $ 30 Interest income related to accretion of unguaranteed residual asset 3 3 Interest income on deferred fees and costs — — Total sales-type and direct financing lease income 31 33 Operating leases Operating lease income related to lease payments 34 33 Other operating leasing gains (4 ) 4 Total operating lease income and other leasing gains 30 37 Total lease income $ 61 $ 70 |
Sales-type Lease, Lease Income | The components of equipment leasing income are summarized in the table below: Three months ended March 31, in millions 2020 2019 Sales-type and direct financing leases Interest income on lease receivable $ 28 $ 30 Interest income related to accretion of unguaranteed residual asset 3 3 Interest income on deferred fees and costs — — Total sales-type and direct financing lease income 31 33 Operating leases Operating lease income related to lease payments 34 33 Other operating leasing gains (4 ) 4 Total operating lease income and other leasing gains 30 37 Total lease income $ 61 $ 70 |
Direct Financing Lease, Lease Income | The components of equipment leasing income are summarized in the table below: Three months ended March 31, in millions 2020 2019 Sales-type and direct financing leases Interest income on lease receivable $ 28 $ 30 Interest income related to accretion of unguaranteed residual asset 3 3 Interest income on deferred fees and costs — — Total sales-type and direct financing lease income 31 33 Operating leases Operating lease income related to lease payments 34 33 Other operating leasing gains (4 ) 4 Total operating lease income and other leasing gains 30 37 Total lease income $ 61 $ 70 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities Information | The assets and liabilities presented in the table below convey the size of KCDC’s direct and indirect investments at March 31, 2020 , and December 31, 2019 . As these investments represent unconsolidated VIEs, the assets and liabilities of the investments themselves are not recorded on our balance sheet. Additional information pertaining to our LIHTC investments is included in Note 13 (“ Variable Interest Entities ”) beginning on page 146 of our 2019 Form 10-K. Unconsolidated VIEs in millions Total Assets Total Liabilities Maximum Exposure to Loss March 31, 2020 LIHTC investments $ 6,401 $ 2,534 $ 1,823 December 31, 2019 LIHTC investments $ 6,405 $ 2,526 $ 1,846 March 31, 2020 , and December 31, 2019 . Unconsolidated VIEs in millions Total Assets Total Liabilities Maximum Exposure to Loss March 31, 2020 Indirect investments $ 12,221 $ 182 $ 84 December 31, 2019 Indirect investments $ 12,954 $ 205 $ 89 |
Securities Financing Activiti_2
Securities Financing Activities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Banking and Thrift [Abstract] | |
Summarized Securities Financing Agreements | The following table summarizes our securities financing agreements at March 31, 2020 , and December 31, 2019 : March 31, 2020 December 31, 2019 in millions Gross Amount Presented in Balance Sheet Netting Adjustments (a) Collateral (b) Net Amounts Gross Amount Presented in Balance Sheet Netting Adjustments (a) Collateral (b) Net Amounts Offsetting of financial assets: Reverse repurchase agreements $ 4 $ (4 ) — — $ 5 $ (5 ) — — Total $ 4 $ (4 ) — — $ 5 $ (5 ) — — Offsetting of financial liabilities: Repurchase agreements (c) $ 194 $ (6 ) $ (188 ) — $ 187 $ (7 ) $ (180 ) — Total $ 194 $ (6 ) $ (188 ) — $ 187 $ (7 ) $ (180 ) — (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 mortgaged-backed agency securities and are contracted on an overnight or continuous basis. |
Employee Benefits (Tables)
Employee Benefits (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Retirement Benefits [Abstract] | |
Net Pension Cost (Benefit) for All Funded and Unfunded Plans | The components of net pension cost (benefit) for all funded and unfunded plans are recorded in “other expense” and are summarized in the following table. For more information on our Pension Plans and Other Postretirement Benefit Plans, see Note 18 (“ Employee Benefits ”) beginning on page 155 of our 2019 Form 10-K. Three months ended March 31, in millions 2020 2019 Interest cost on PBO $ 9 $ 11 Expected return on plan assets (10 ) (12 ) Amortization of losses 4 4 Settlement loss 4 — Net pension cost $ 7 $ 3 |
Trust Preferred Securities Is_2
Trust Preferred Securities Issued by Unconsolidated Subsidiaries (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Banking and Thrift [Abstract] | |
Summary of Trust Preferred Securities, Common Stock and Related Debentures | The trust preferred securities, common stock, and related debentures are summarized as follows: dollars in millions Trust Preferred Securities, Net of Discount (a) Common Stock Principal Amount of Debentures, Net of Discount (b) Interest Rate of Trust Preferred Securities and Debentures (c) Maturity of Trust Preferred Securities and Debentures March 31, 2020 KeyCorp Capital I $ 156 $ 6 $ 162 2.649 % 2028 KeyCorp Capital II 114 4 118 6.875 2029 KeyCorp Capital III 149 4 153 7.750 2029 HNC Statutory Trust III 19 1 20 3.083 2035 Willow Grove Statutory Trust I 19 1 20 2.051 2036 HNC Statutory Trust IV 17 1 18 3.050 2037 Westbank Capital Trust II 8 — 8 3.306 2034 Westbank Capital Trust III 8 — 8 3.306 2034 Total $ 490 $ 17 $ 507 5.213 % — December 31, 2019 $ 466 $ 17 $ 483 5.214 % — (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 $77 million at March 31, 2020 , and $57 million at December 31, 2019 . 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, HNC Statutory Trust III, Willow Grove Statutory Trust I, HNC Statutory Trust IV, Westbank Capital Trust II, or Westbank Capital Trust III 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 $77 million at March 31, 2020 , and $57 million at December 31, 2019 . See Note 7 (“ Derivatives and Hedging Activities ”) 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. The trust preferred securities issued by KeyCorp Capital I have a floating interest rate, equal to three-month LIBOR plus 74 basis points, that reprices quarterly. The trust preferred securities issued by HNC Statutory Trust III have a floating interest rate, equal to three-month LIBOR plus 140 basis points, that reprices quarterly. The trust preferred securities issued by Willow Grove Statutory Trust I have a floating interest rate, equal to three-month LIBOR plus 131 basis points, that reprices quarterly. The trust preferred securities issued by HNC Statutory Trust IV have a floating interest rate, equal to three-month LIBOR plus 128 basis points, that reprices quarterly. The trust preferred securities issued by Westbank Capital Trust II and Westbank Capital Trust III each have a floating interest rate, equal to three-month LIBOR plus 219 basis points, that reprices quarterly. The total interest rates are weighted-average rates. |
Contingent Liabilities and Gu_2
Contingent Liabilities and Guarantees (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Guarantees | The following table shows the types of guarantees that we had outstanding at March 31, 2020 . 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 “Contingencies and Guarantees” beginning on page 108 of our 2019 Form 10-K. March 31, 2020 Maximum Potential Undiscounted Future Payments Liability Recorded in millions Financial guarantees: Standby letters of credit $ 3,352 $ 72 Recourse agreement with FNMA 5,098 20 Residential mortgage reserve 1,906 7 Written put options (a) 2,598 102 Total $ 12,954 $ 201 (a) The maximum potential undiscounted future payments represent notional amounts of derivatives qualifying as guarantees. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Changes in AOCI | Our changes in AOCI for the three months ended March 31, 2020 , and March 31, 2019 , are as follows: in millions Unrealized gains (losses) on securities available for sale Unrealized gains (losses) on derivative financial instruments Foreign currency translation adjustment Net pension and postretirement benefit costs Total Balance at December 31, 2019 $ 115 $ 250 $ — $ (339 ) $ 26 Other comprehensive income before reclassification, net of income taxes 408 402 — — 810 Amounts reclassified from AOCI, net of income taxes (a) (3 ) (25 ) — 6 (22 ) Net current-period other comprehensive income, net of income taxes 405 377 — 6 788 Balance at March 31, 2020 $ 520 $ 627 $ — $ (333 ) $ 814 Balance at December 31, 2018 $ (373 ) $ (50 ) $ (14 ) $ (381 ) $ (818 ) Other comprehensive income before reclassification, net of income taxes 184 80 3 (1 ) 266 Amounts reclassified from AOCI, net of income taxes (a) — 19 — 3 22 Net current-period other comprehensive income, net of income taxes 184 99 3 2 288 Balance at March 31, 2019 $ (189 ) $ 49 $ (11 ) $ (379 ) $ (530 ) (a) See table below for details about these reclassifications. |
Reclassifications Out of AOCI | Our reclassifications out of AOCI for the three months ended March 31, 2020 , and March 31, 2019 , are as follows: Three months ended March 31, Affected Line Item in the Statement Where Net Income is Presented in millions 2020 2019 Unrealized gains (losses) on available for sale securities Realized gains $ 4 — Other income 4 — Income (loss) from continuing operations before income taxes 1 — Income taxes $ 3 — Income (loss) from continuing operations Unrealized gains (losses) on derivative financial instruments Interest rate $ 34 $ (24 ) Interest income — Loans Interest rate (1 ) (1 ) Interest expense — Long-term debt 33 (25 ) Income (loss) from continuing operations before income taxes 8 (6 ) Income taxes $ 25 (19 ) Income (loss) from continuing operations Net pension and postretirement benefit costs Amortization of losses $ (4 ) $ (4 ) Other expense Settlement loss (4 ) — Other expense (8 ) (4 ) Income (loss) from continuing operations before income taxes (2 ) (1 ) Income taxes $ (6 ) (3 ) Income (loss) from continuing operations |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Schedule of Stockholders Equity | Preferred stock series Amount outstanding (in millions) Shares authorized and outstanding Par value Liquidation preference Ownership interest per depositary share Liquidation preference per depositary share First quarter 2020 dividends paid per depositary share Fixed-to-Floating Rate Perpetual Noncumulative Series D $ 525 21,000 $ 1 $ 25,000 1/25th $ 1,000 $ 12.50 Fixed-to-Floating Rate Perpetual Noncumulative Series E 500 500,000 1 1,000 1/40th 25 .382813 Fixed Rate Perpetual Noncumulative Series F 425 425,000 1 1,000 1/40th 25 .353125 Fixed Rate Perpetual Non-Cumulative Series G 450 450,000 1 1,000 1/40th 25 .351563 |
Business Segment Reporting (Tab
Business Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Financial Information of Business Groups | The table below shows selected financial data for our business segments for the three- month periods ended March 31, 2020 , and March 31, 2019 . Three months ended March 31, Consumer Bank Commercial Bank Other Total Key dollars in millions 2020 2019 2020 2019 2020 2019 2020 2019 SUMMARY OF OPERATIONS Net interest income (TE) $ 590 $ 591 $ 410 $ 402 $ (11 ) $ (8 ) $ 989 $ 985 Noninterest income 230 214 219 300 28 22 477 536 Total revenue (TE) (a) 820 805 629 702 17 14 1,466 1,521 Provision for credit losses 140 45 214 16 5 1 359 62 Depreciation and amortization expense 21 23 36 29 35 36 92 88 Other noninterest expense 522 517 317 344 — 14 839 875 Income (loss) from continuing operations before income taxes (TE) 137 220 62 313 (23 ) (37 ) 176 496 Allocated income taxes and TE adjustments 32 52 (8 ) 63 7 (25 ) 31 90 Income (loss) from continuing operations 105 168 70 250 (30 ) (12 ) 145 406 Income (loss) from discontinued operations, net of taxes — — — — 1 1 1 1 Net income (loss) 105 168 70 250 (29 ) (11 ) 146 407 Less: Net income (loss) attributable to noncontrolling interests — — — — — — — — Net income (loss) attributable to Key $ 105 $ 168 $ 70 $ 250 $ (29 ) $ (11 ) $ 146 $ 407 AVERAGE BALANCES (b) Loans and leases $ 35,197 $ 31,321 $ 60,082 $ 57,267 $ 895 $ 1,061 $ 96,174 $ 89,649 Total assets (a) 38,460 34,732 69,383 64,873 38,385 40,515 146,228 140,120 Deposits 73,320 71,288 36,058 34,417 950 1,871 110,328 107,576 OTHER FINANCIAL DATA Net loan charge-offs (b) $ 43 $ 34 $ 40 $ 30 $ 1 — $ 84 $ 64 Return on average allocated equity (b) 12.18 % 21.27 % 6.00 % 22.60 % (1.33 )% (.61 )% 3.39 % 10.49 % Return on average allocated equity 12.18 21.27 6.00 22.60 (1.29 ) (.56 ) 3.41 10.51 Average full-time equivalent employees (c) 8,907 9,622 2,069 2,370 5,553 5,562 16,529 17,554 (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. |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table represents a disaggregation of revenue from contracts with customers, by business segment, for the three- month periods ended March 31, 2020 , and March 31, 2019 . Three months ended March 31, 2020 Three months ended March 31, 2019 dollars in millions Consumer Bank Commercial Bank Total Contract Revenue Consumer Bank Commercial Bank Total Contract Revenue NONINTEREST INCOME Trust and investment services income $ 93 $ 19 $ 112 $ 85 $ 15 $ 100 Investment banking and debt placement fees — 47 47 — 45 45 Services charges on deposit accounts 56 28 84 54 27 81 Cards and payments income 38 26 64 37 26 63 Other noninterest income 2 — 2 3 — 3 Total revenue from contracts with customers $ 189 $ 120 $ 309 $ 179 $ 113 $ 292 Other noninterest income (a) $ 140 $ 222 Noninterest income from Other (b) 28 22 Total noninterest income $ 477 $ 536 (a) Noninterest income considered earned outside the scope of contracts with customers. (b) Other includes other segments that consists of corporate treasury, our principal investing unit, and various exit portfolios as well as reconciling items which primarily represents the unallocated portion of nonearning assets of corporate support functions. Charges related to the funding of these assets are part of net interest income and are allocated to the business segments through noninterest expense. Reconciling items also includes intercompany eliminations and certain items that are not allocated to the business segments because they do not reflect their normal operations. Refer to Note 19 (“ Business Segment Reporting ”) for more information. |
Basis of Presentation and Acc_4
Basis of Presentation and Accounting Policies - Narrative (Details) $ in Millions | Jan. 01, 2020USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Adjustment to amortized cost basis of PCD loans | $ 4 | |
Noncredit discount on PCD loans | 15 | |
Retained Earnings [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Cumulative effect from changes in accounting principle | (230) | [1] |
Retained Earnings [Member] | Accounting Standards Update 2016-13 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Cumulative effect from changes in accounting principle | 230 | |
Deferred taxes recognized on adoption | $ 71 | |
[1] | Includes the impact of implementing ASU 2016-13, Financial Instruments - Credit Losses (ASC 326): Measurement of Credit Losses on Financial Instruments. |
Basis of Presentation and Acc_5
Basis of Presentation and Accounting Policies - Measurement of Credit Losses (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses | $ 1,359 | $ 1,104 | $ 900 | $ 883 | $ 883 |
Total ALLL | 1,402 | 1,145 | 910 | 896 | 897 |
Accrued expense and other liabilities | 75 | ||||
Total allowance for credit losses | 985 | ||||
Commercial Loans [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses | 818 | 627 | 751 | 737 | 743 |
Consumer Loans [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses | 541 | 477 | 149 | 146 | 140 |
Commercial and Industrial [Member] | Commercial Loans [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses | 542 | 410 | 551 | 530 | 532 |
Commercial Mortgage Backed Securities [Member] | Commercial Loans [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses | 143 | ||||
Construction Loans [Member] | Commercial Loans [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses | 25 | 15 | 22 | 28 | 33 |
Commercial Lease Financing [Member] | Commercial Loans [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses | 44 | 43 | 35 | 35 | 36 |
Residential Mortgage [Member] | Consumer Loans [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses | 7 | ||||
Home Equity Loans [Member] | Consumer Loans [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses | 184 | 178 | 31 | 36 | 35 |
Consumer Direct Loans [Member] | Consumer Loans [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses | 116 | 97 | 34 | 33 | 30 |
Commercial Credit Card [Member] | Consumer Loans [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses | 47 | ||||
Consumer Indirect Loans [Member] | Consumer Loans [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses | 48 | 36 | 30 | 22 | 20 |
As Reported Under ASC 326 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses | 1,104 | ||||
Total ALLL | 1,145 | ||||
Accrued expense and other liabilities | 145 | ||||
Total allowance for credit losses | 1,290 | ||||
As Reported Under ASC 326 | Commercial Loans [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses | 627 | ||||
As Reported Under ASC 326 | Consumer Loans [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses | 477 | ||||
As Reported Under ASC 326 | Commercial and Industrial [Member] | Commercial Loans [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses | 410 | ||||
As Reported Under ASC 326 | Commercial Mortgage Backed Securities [Member] | Commercial Loans [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses | 159 | ||||
As Reported Under ASC 326 | Construction Loans [Member] | Commercial Loans [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses | 15 | ||||
As Reported Under ASC 326 | Commercial Lease Financing [Member] | Commercial Loans [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses | 43 | ||||
As Reported Under ASC 326 | Residential Mortgage [Member] | Consumer Loans [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses | 84 | ||||
As Reported Under ASC 326 | Home Equity Loans [Member] | Consumer Loans [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses | 178 | ||||
As Reported Under ASC 326 | Consumer Direct Loans [Member] | Consumer Loans [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses | 97 | ||||
As Reported Under ASC 326 | Commercial Credit Card [Member] | Consumer Loans [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses | 82 | ||||
As Reported Under ASC 326 | Consumer Indirect Loans [Member] | Consumer Loans [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses | 36 | ||||
Impact of ASC 326 Adoption | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses | 204 | ||||
Total ALLL | 235 | ||||
Accrued expense and other liabilities | 70 | ||||
Total allowance for credit losses | 305 | ||||
Impact of ASC 326 Adoption | Commercial Loans [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses | (124) | ||||
Impact of ASC 326 Adoption | Consumer Loans [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses | 328 | ||||
Impact of ASC 326 Adoption | Commercial and Industrial [Member] | Commercial Loans [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses | (141) | ||||
Impact of ASC 326 Adoption | Commercial Mortgage Backed Securities [Member] | Commercial Loans [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses | 16 | ||||
Impact of ASC 326 Adoption | Construction Loans [Member] | Commercial Loans [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses | (7) | ||||
Impact of ASC 326 Adoption | Commercial Lease Financing [Member] | Commercial Loans [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses | 8 | ||||
Impact of ASC 326 Adoption | Residential Mortgage [Member] | Consumer Loans [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses | 77 | ||||
Impact of ASC 326 Adoption | Home Equity Loans [Member] | Consumer Loans [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses | 147 | ||||
Impact of ASC 326 Adoption | Consumer Direct Loans [Member] | Consumer Loans [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses | 63 | ||||
Impact of ASC 326 Adoption | Commercial Credit Card [Member] | Consumer Loans [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses | 35 | ||||
Impact of ASC 326 Adoption | Consumer Indirect Loans [Member] | Consumer Loans [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses | 6 | ||||
Discontinued Operations [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses | $ 43 | 41 | $ 10 | $ 13 | $ 14 |
Discontinued Operations [Member] | As Reported Under ASC 326 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses | 41 | ||||
Discontinued Operations [Member] | Impact of ASC 326 Adoption | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses | $ 31 |
Earnings Per Common Share - Bas
Earnings Per Common Share - Basic and Diluted Earnings Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
EARNINGS | |||
Income (loss) from continuing operations | $ 145 | $ 406 | |
Less: Net income (loss) attributable to noncontrolling interests | 0 | 0 | |
Income (loss) from continuing operations attributable to Key | 145 | 406 | |
Less: Dividends on Preferred Stock | 27 | 20 | |
Income (loss) from continuing operations attributable to Key common shareholders | 118 | 386 | |
Income (loss) from discontinued operations, net of taxes | 1 | 1 | |
Net income (loss) attributable to Key common shareholders | $ 119 | $ 387 | |
WEIGHTED-AVERAGE COMMON SHARES | |||
Weighted-average common shares outstanding (000) (in shares) | 967,446 | 1,006,717 | |
Effect of common share options and other stock awards (in shares) | 8,664 | 9,787 | |
Weighted-average common shares and potential common shares outstanding (in shares) | [1] | 976,110 | 1,016,504 |
EARNINGS PER COMMON SHARE | |||
Income (loss) from continuing operations attributable to Key common shareholders (in usd per share) | $ 0.12 | $ 0.38 | |
Income (loss) from discontinued operations, net of taxes (in usd per share) | 0 | 0 | |
Net income (loss) attributable to Key common shareholders (in usd per share) | [2] | 0.12 | 0.38 |
Income (loss) from continuing operations attributable to Key common shareholders - assuming dilution (in usd per share) | 0.12 | 0.38 | |
Income (loss) from discontinued operations, net of taxes - assuming dilution (in usd per share) | 0 | 0 | |
Net income (loss) attributable to Key common shareholders (in usd per share) | [2] | $ 0.12 | $ 0.38 |
[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. |
Loan Portfolio - Loans by Categ
Loan Portfolio - Loans by Category (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 103,198 | $ 94,646 |
Accrued interest | 241 | 244 |
Commercial Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 75,918 | 68,032 |
Accrued interest | 142 | |
Consumer Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 27,280 | 26,614 |
Accrued interest | 99 | |
Commercial and Industrial [Member] | Commercial Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 55,983 | 48,295 |
Commercial Mortgage [Member] | Commercial Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 13,548 | 13,491 |
Construction Loans [Member] | Commercial Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 1,710 | 1,558 |
Commercial Credit Card [Member] | Commercial Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 143 | 144 |
Commercial Credit Card [Member] | Consumer Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 1,041 | 1,130 |
Commercial Real Estate [Member] | Commercial Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 15,258 | 15,049 |
Commercial Lease Financing [Member] | Commercial Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 4,677 | 4,688 |
Real Estate - Residential Mortgage [Member] | Consumer Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 7,498 | 7,023 |
Home Equity Loans [Member] | Consumer Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 10,103 | 10,274 |
Residential - Prime Loans [Member] | Consumer Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 17,601 | 17,297 |
Consumer Direct Loans [Member] | Consumer Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 3,833 | 3,513 |
Consumer Credit Card [Member] | Consumer Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 1,041 | 1,130 |
Consumer Indirect Loans [Member] | Consumer Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 4,805 | 4,674 |
Collateral Pledged [Member] | Commercial Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 14 | 15 |
Education Lending [Member] | Discontinued Operations [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 821 | $ 865 |
Asset Quality - Changes in Allo
Asset Quality - Changes in Allowance for Loan and Lease Losses by Loan Category (Details) - USD ($) $ in Millions | 3 Months Ended | ||||
Mar. 31, 2020 | Mar. 31, 2019 | Jan. 01, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | $ 900 | $ 883 | |||
Provision | 339 | 64 | |||
Charge-offs | (101) | (87) | |||
Recoveries | 17 | 23 | |||
Ending balance | 1,359 | 883 | |||
Total ALLL, including discontinued operations | 1,402 | 896 | $ 1,145 | $ 910 | $ 897 |
Total provision, including discontinued operations | 342 | 66 | |||
Total charge-offs, including discontinued operations | 103 | 91 | |||
Total recoveries, including discontinued operations | 18 | 24 | |||
Provision for losses on lending-related commitments | 20 | (2) | |||
Commercial Loans [Member] | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | 751 | 743 | |||
Provision | 250 | 35 | |||
Charge-offs | (65) | (53) | |||
Recoveries | 6 | 12 | |||
Ending balance | 818 | 737 | |||
Consumer Loans [Member] | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | 149 | 140 | |||
Provision | 89 | 29 | |||
Charge-offs | (36) | (34) | |||
Recoveries | 11 | 11 | |||
Ending balance | 541 | 146 | |||
Commercial and Industrial [Member] | Commercial Loans [Member] | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | 551 | 532 | |||
Provision | 187 | 24 | |||
Charge-offs | (60) | (36) | |||
Recoveries | 5 | 10 | |||
Ending balance | 542 | 530 | |||
Commercial Mortgage [Member] | Commercial Loans [Member] | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | 142 | ||||
Provision | 50 | 6 | |||
Charge-offs | (3) | (5) | |||
Recoveries | 1 | 1 | |||
Ending balance | 207 | 144 | |||
Construction Loans [Member] | Commercial Loans [Member] | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | 22 | 33 | |||
Provision | 10 | (1) | |||
Charge-offs | 0 | (4) | |||
Recoveries | 0 | 0 | |||
Ending balance | 25 | 28 | |||
Commercial Real Estate [Member] | Commercial Loans [Member] | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | 175 | ||||
Provision | 60 | 5 | |||
Charge-offs | (3) | (9) | |||
Recoveries | 1 | 1 | |||
Ending balance | 232 | 172 | |||
Commercial Lease Financing [Member] | Commercial Loans [Member] | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | 35 | 36 | |||
Provision | 3 | 6 | |||
Charge-offs | (2) | (8) | |||
Recoveries | 0 | 1 | |||
Ending balance | 44 | 35 | |||
Real Estate - Residential Mortgage [Member] | Consumer Loans [Member] | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | 7 | ||||
Provision | 5 | 1 | |||
Charge-offs | 0 | (1) | |||
Recoveries | 0 | 1 | |||
Ending balance | 89 | 8 | |||
Home Equity Loans [Member] | Consumer Loans [Member] | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | 31 | 35 | |||
Provision | 8 | 3 | |||
Charge-offs | (4) | (4) | |||
Recoveries | 2 | 2 | |||
Ending balance | 184 | 36 | |||
Consumer Direct Loans [Member] | Consumer Loans [Member] | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | 34 | 30 | |||
Provision | 29 | 12 | |||
Charge-offs | (12) | (10) | |||
Recoveries | 2 | 1 | |||
Ending balance | 116 | 33 | |||
Credit Cards [Member] | Consumer Loans [Member] | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | 48 | ||||
Provision | 31 | 8 | |||
Charge-offs | (11) | (11) | |||
Recoveries | 2 | 2 | |||
Ending balance | 104 | 47 | |||
Consumer Indirect Loans [Member] | Consumer Loans [Member] | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | 30 | 20 | |||
Provision | 16 | 5 | |||
Charge-offs | (9) | (8) | |||
Recoveries | 5 | 5 | |||
Ending balance | 48 | 22 | |||
Discontinued Operations [Member] | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | 10 | 14 | |||
Provision | 3 | 2 | |||
Charge-offs | (2) | (4) | |||
Recoveries | 1 | 1 | |||
Ending balance | $ 43 | $ 13 |
Asset Quality - Additional Info
Asset Quality - Additional Information (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020USD ($)SecurityLoan | Mar. 31, 2019USD ($)SecurityLoan | Dec. 31, 2019USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accrued interest | $ 241 | $ 244 | |
Percentage of carrying amount of our commercial nonperforming loans outstanding | 75.00% | ||
Percentage of nonperforming loans outstanding face value | 78.00% | ||
Percentage of loans held for sale and other nonperforming assets | 87.00% | ||
Net reduction to interest income | $ 6 | $ 8 | |
Commitments outstanding to lend additional funds to borrowers (less than $1 million) | 3 | 5 | |
Financial receivable, modifications, subsequent default, recorded investment | 2 | $ 2 | |
Commercial Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accrued interest | 142 | ||
Increase in commercial loans | $ 7,900 | ||
Increase in commercial loans, percent | 11.60% | ||
Number of loans | SecurityLoan | 0 | 0 | |
Consumer Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accrued interest | $ 99 | ||
Number of loans | SecurityLoan | 84 | 74 | |
Continuing Operations [Member] | Commercial Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Increase in ALLL | $ 191 | ||
Increase in ALLL, percent | 30.50% | ||
Continuing Operations [Member] | Consumer Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Increase in ALLL | $ 64 | ||
Increase in ALLL, percent | 13.40% | ||
Nonperforming Financial Instruments [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Nonperforming loans on nonaccrual status with no allowance | $ 407 | ||
Real Estate - Residential Mortgage [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financial receivable, modifications, subsequent default, recorded investment | $ 71 | $ 97 |
Asset Quality - Commerical Cred
Asset Quality - Commerical Credit Exposure (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | $ 103,198 | $ 94,646 |
Accrued interest | 241 | 244 |
Commercial Loans [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2019 | 4,218 | |
2018 | 12,489 | |
2017 | 9,211 | |
2016 | 5,887 | |
2015 | 4,163 | |
Prior | 9,434 | |
Revolving Loans Amortized Cost Basis | 30,303 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 213 | |
Total | 75,918 | 68,032 |
Accrued interest | 142 | |
Commercial Loans [Member] | Commercial and Industrial [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2019 | 3,143 | |
2018 | 7,278 | |
2017 | 5,642 | |
2016 | 3,730 | |
2015 | 2,659 | |
Prior | 4,178 | |
Revolving Loans Amortized Cost Basis | 29,188 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 165 | |
Total | 55,983 | 48,295 |
Commercial Loans [Member] | Commercial and Industrial [Member] | Criticized Accruing [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2019 | 6 | |
2018 | 56 | |
2017 | 129 | |
2016 | 177 | |
2015 | 110 | |
Prior | 169 | |
Revolving Loans Amortized Cost Basis | 1,004 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 16 | |
Total | 1,667 | |
Commercial Loans [Member] | Commercial and Industrial [Member] | Criticized Nonaccruing [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2019 | 0 | |
2018 | 25 | |
2017 | 16 | |
2016 | 36 | |
2015 | 8 | |
Prior | 62 | |
Revolving Loans Amortized Cost Basis | 126 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 4 | |
Total | 277 | |
Commercial Loans [Member] | Commercial and Industrial [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2019 | 3,137 | |
2018 | 7,197 | |
2017 | 5,497 | |
2016 | 3,517 | |
2015 | 2,541 | |
Prior | 3,947 | |
Revolving Loans Amortized Cost Basis | 28,058 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 145 | |
Total | 54,039 | |
Commercial Loans [Member] | Commercial Mortgage [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2019 | 726 | |
2018 | 3,352 | |
2017 | 2,096 | |
2016 | 1,121 | |
2015 | 1,052 | |
Prior | 4,056 | |
Revolving Loans Amortized Cost Basis | 1,100 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 45 | |
Total | 13,548 | 13,491 |
Commercial Loans [Member] | Commercial Mortgage [Member] | Criticized Accruing [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2019 | 0 | |
2018 | 6 | |
2017 | 21 | |
2016 | 51 | |
2015 | 40 | |
Prior | 205 | |
Revolving Loans Amortized Cost Basis | 7 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 2 | |
Total | 332 | |
Commercial Loans [Member] | Commercial Mortgage [Member] | Criticized Nonaccruing [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2019 | 0 | |
2018 | 0 | |
2017 | 1 | |
2016 | 3 | |
2015 | 1 | |
Prior | 77 | |
Revolving Loans Amortized Cost Basis | 4 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 1 | |
Total | 87 | |
Commercial Loans [Member] | Commercial Mortgage [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2019 | 726 | |
2018 | 3,346 | |
2017 | 2,074 | |
2016 | 1,067 | |
2015 | 1,011 | |
Prior | 3,774 | |
Revolving Loans Amortized Cost Basis | 1,089 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 42 | |
Total | 13,129 | |
Commercial Loans [Member] | Construction Loans [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2019 | 36 | |
2018 | 509 | |
2017 | 703 | |
2016 | 326 | |
2015 | 92 | |
Prior | 26 | |
Revolving Loans Amortized Cost Basis | 15 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 3 | |
Total | 1,710 | 1,558 |
Commercial Loans [Member] | Construction Loans [Member] | Criticized Accruing [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
2015 | 23 | |
Prior | 3 | |
Revolving Loans Amortized Cost Basis | 1 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | |
Total | 27 | |
Commercial Loans [Member] | Construction Loans [Member] | Criticized Nonaccruing [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
Prior | 2 | |
Revolving Loans Amortized Cost Basis | 0 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | |
Total | 2 | |
Commercial Loans [Member] | Construction Loans [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2019 | 36 | |
2018 | 509 | |
2017 | 703 | |
2016 | 326 | |
2015 | 69 | |
Prior | 21 | |
Revolving Loans Amortized Cost Basis | 14 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 3 | |
Total | 1,681 | |
Commercial Loans [Member] | Commercial Lease Financing [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2019 | 313 | |
2018 | 1,350 | |
2017 | 770 | |
2016 | 710 | |
2015 | 360 | |
Prior | 1,174 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | |
Total | 4,677 | $ 4,688 |
Commercial Loans [Member] | Commercial Lease Financing [Member] | Criticized Accruing [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2019 | 0 | |
2018 | 2 | |
2017 | 6 | |
2016 | 12 | |
2015 | 12 | |
Prior | 12 | |
Revolving Loans Amortized Cost Basis | 0 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | |
Total | 44 | |
Commercial Loans [Member] | Commercial Lease Financing [Member] | Criticized Nonaccruing [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2019 | 0 | |
2018 | 0 | |
2017 | 1 | |
2016 | 1 | |
2015 | 3 | |
Prior | 0 | |
Revolving Loans Amortized Cost Basis | 0 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | |
Total | 5 | |
Commercial Loans [Member] | Commercial Lease Financing [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2019 | 313 | |
2018 | 1,348 | |
2017 | 763 | |
2016 | 697 | |
2015 | 345 | |
Prior | 1,162 | |
Revolving Loans Amortized Cost Basis | 0 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | |
Total | $ 4,628 |
Asset Quality Asset Quality - C
Asset Quality Asset Quality - Consumer Credit Exposure (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | $ 103,198 | $ 94,646 |
Accrued interest | 241 | 244 |
Consumer Loans [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2019 | 2,353 | |
2018 | 7,287 | |
2017 | 2,206 | |
2016 | 1,537 | |
2015 | 1,550 | |
Prior | 4,417 | |
Revolving Loans Amortized Cost Basis | 7,184 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 746 | |
Total | 27,280 | 26,614 |
Accrued interest | 99 | |
Consumer Loans [Member] | Real Estate - Residential Mortgage [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2019 | 819 | |
2018 | 2,488 | |
2017 | 498 | |
2016 | 463 | |
2015 | 851 | |
Prior | 2,379 | |
Revolving Loans Amortized Cost Basis | 0 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | |
Total | 7,498 | 7,023 |
Consumer Loans [Member] | Real Estate - Residential Mortgage [Member] | FICO Score, Greater Than 750 [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2019 | 648 | |
2018 | 1,923 | |
2017 | 344 | |
2016 | 368 | |
2015 | 686 | |
Prior | 1,662 | |
Revolving Loans Amortized Cost Basis | 0 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | |
Total | 5,631 | |
Consumer Loans [Member] | Real Estate - Residential Mortgage [Member] | FICO Score, 660 to 749 [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2019 | 166 | |
2018 | 525 | |
2017 | 123 | |
2016 | 76 | |
2015 | 127 | |
Prior | 431 | |
Revolving Loans Amortized Cost Basis | 0 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | |
Total | 1,448 | |
Consumer Loans [Member] | Real Estate - Residential Mortgage [Member] | FICO Score, Less than 660 [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2019 | 5 | |
2018 | 36 | |
2017 | 28 | |
2016 | 12 | |
2015 | 33 | |
Prior | 223 | |
Revolving Loans Amortized Cost Basis | 0 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | |
Total | 337 | |
Consumer Loans [Member] | Real Estate - Residential Mortgage [Member] | FICO Score, No Score [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2019 | 0 | |
2018 | 4 | |
2017 | 3 | |
2016 | 7 | |
2015 | 5 | |
Prior | 63 | |
Revolving Loans Amortized Cost Basis | 0 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | |
Total | 82 | |
Consumer Loans [Member] | Home Equity Loans [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2019 | 236 | |
2018 | 831 | |
2017 | 392 | |
2016 | 420 | |
2015 | 385 | |
Prior | 1,637 | |
Revolving Loans Amortized Cost Basis | 5,456 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 746 | |
Total | 10,103 | 10,274 |
Consumer Loans [Member] | Home Equity Loans [Member] | FICO Score, Greater Than 750 [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2019 | 168 | |
2018 | 475 | |
2017 | 208 | |
2016 | 231 | |
2015 | 219 | |
Prior | 972 | |
Revolving Loans Amortized Cost Basis | 2,898 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 444 | |
Total | 5,615 | |
Consumer Loans [Member] | Home Equity Loans [Member] | FICO Score, 660 to 749 [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2019 | 58 | |
2018 | 296 | |
2017 | 142 | |
2016 | 154 | |
2015 | 128 | |
Prior | 476 | |
Revolving Loans Amortized Cost Basis | 1,902 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 228 | |
Total | 3,384 | |
Consumer Loans [Member] | Home Equity Loans [Member] | FICO Score, Less than 660 [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2019 | 5 | |
2018 | 57 | |
2017 | 41 | |
2016 | 34 | |
2015 | 38 | |
Prior | 186 | |
Revolving Loans Amortized Cost Basis | 648 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 71 | |
Total | 1,080 | |
Consumer Loans [Member] | Home Equity Loans [Member] | FICO Score, No Score [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2019 | 5 | |
2018 | 3 | |
2017 | 1 | |
2016 | 1 | |
2015 | 0 | |
Prior | 3 | |
Revolving Loans Amortized Cost Basis | 8 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 3 | |
Total | 24 | |
Consumer Loans [Member] | Consumer Direct Loans [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2019 | 643 | |
2018 | 1,826 | |
2017 | 335 | |
2016 | 122 | |
2015 | 73 | |
Prior | 147 | |
Revolving Loans Amortized Cost Basis | 687 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | |
Total | 3,833 | 3,513 |
Consumer Loans [Member] | Consumer Direct Loans [Member] | FICO Score, Greater Than 750 [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2019 | 359 | |
2018 | 1,283 | |
2017 | 157 | |
2016 | 48 | |
2015 | 26 | |
Prior | 74 | |
Revolving Loans Amortized Cost Basis | 137 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | |
Total | 2,084 | |
Consumer Loans [Member] | Consumer Direct Loans [Member] | FICO Score, 660 to 749 [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2019 | 111 | |
2018 | 429 | |
2017 | 117 | |
2016 | 38 | |
2015 | 23 | |
Prior | 44 | |
Revolving Loans Amortized Cost Basis | 304 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | |
Total | 1,066 | |
Consumer Loans [Member] | Consumer Direct Loans [Member] | FICO Score, Less than 660 [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2019 | 3 | |
2018 | 47 | |
2017 | 31 | |
2016 | 13 | |
2015 | 7 | |
Prior | 14 | |
Revolving Loans Amortized Cost Basis | 113 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | |
Total | 228 | |
Consumer Loans [Member] | Consumer Direct Loans [Member] | FICO Score, No Score [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2019 | 170 | |
2018 | 67 | |
2017 | 30 | |
2016 | 23 | |
2015 | 17 | |
Prior | 15 | |
Revolving Loans Amortized Cost Basis | 133 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | |
Total | 455 | |
Consumer Loans [Member] | Commercial Credit Card [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
2015 | 0 | |
Prior | 0 | |
Revolving Loans Amortized Cost Basis | 1,041 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | |
Total | 1,041 | 1,130 |
Consumer Loans [Member] | Commercial Credit Card [Member] | FICO Score, Greater Than 750 [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
2015 | 0 | |
Prior | 0 | |
Revolving Loans Amortized Cost Basis | 459 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | |
Total | 459 | |
Consumer Loans [Member] | Commercial Credit Card [Member] | FICO Score, 660 to 749 [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
2015 | 0 | |
Prior | 0 | |
Revolving Loans Amortized Cost Basis | 459 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | |
Total | 459 | |
Consumer Loans [Member] | Commercial Credit Card [Member] | FICO Score, Less than 660 [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
2015 | 0 | |
Prior | 0 | |
Revolving Loans Amortized Cost Basis | 122 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | |
Total | 122 | |
Consumer Loans [Member] | Commercial Credit Card [Member] | FICO Score, No Score [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
2015 | 0 | |
Prior | 0 | |
Revolving Loans Amortized Cost Basis | 1 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | |
Total | 1 | |
Consumer Loans [Member] | Consumer Indirect Loans [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2019 | 655 | |
2018 | 2,142 | |
2017 | 981 | |
2016 | 532 | |
2015 | 241 | |
Prior | 254 | |
Revolving Loans Amortized Cost Basis | 0 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | |
Total | 4,805 | $ 4,674 |
Consumer Loans [Member] | Consumer Indirect Loans [Member] | FICO Score, Greater Than 750 [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2019 | 383 | |
2018 | 1,066 | |
2017 | 476 | |
2016 | 278 | |
2015 | 124 | |
Prior | 114 | |
Revolving Loans Amortized Cost Basis | 0 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | |
Total | 2,441 | |
Consumer Loans [Member] | Consumer Indirect Loans [Member] | FICO Score, 660 to 749 [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2019 | 206 | |
2018 | 816 | |
2017 | 351 | |
2016 | 165 | |
2015 | 70 | |
Prior | 91 | |
Revolving Loans Amortized Cost Basis | 0 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | |
Total | 1,699 | |
Consumer Loans [Member] | Consumer Indirect Loans [Member] | FICO Score, Less than 660 [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2019 | 38 | |
2018 | 259 | |
2017 | 154 | |
2016 | 89 | |
2015 | 47 | |
Prior | 48 | |
Revolving Loans Amortized Cost Basis | 0 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | |
Total | 635 | |
Consumer Loans [Member] | Consumer Indirect Loans [Member] | FICO Score, No Score [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2019 | 28 | |
2018 | 1 | |
2017 | 0 | |
2016 | 0 | |
2015 | 0 | |
Prior | 1 | |
Revolving Loans Amortized Cost Basis | 0 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | |
Total | $ 30 |
Asset Quality - Aging Analysis
Asset Quality - Aging Analysis of Past Due and Current Loans (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Past Due [Line Items] | ||
Current | $ 102,045 | $ 93,197 |
Days Past Due | 1,153 | 1,003 |
Purchased Credit Impaired | 446 | |
Total | 103,198 | 94,646 |
Accrued interest | 241 | 244 |
Commercial Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 75,182 | 67,224 |
Days Past Due | 736 | 635 |
Purchased Credit Impaired | 173 | |
Total | 75,918 | 68,032 |
Accrued interest | 142 | |
Consumer Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 26,863 | 25,973 |
Days Past Due | 417 | 368 |
Purchased Credit Impaired | 273 | |
Total | 27,280 | 26,614 |
Accrued interest | 99 | |
Commercial and Industrial [Member] | Commercial Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 55,455 | 47,768 |
Days Past Due | 528 | 479 |
Purchased Credit Impaired | 48 | |
Total | 55,983 | 48,295 |
Commercial Mortgage [Member] | Commercial Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 13,381 | 13,258 |
Days Past Due | 167 | 109 |
Purchased Credit Impaired | 124 | |
Total | 13,548 | 13,491 |
Commercial Real Estate: Construction [Member] | Commercial Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 1,702 | 1,551 |
Days Past Due | 8 | 6 |
Purchased Credit Impaired | 1 | |
Total | 1,710 | 1,558 |
Commercial Real Estate Loans [Member] | Commercial Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 15,083 | 14,809 |
Days Past Due | 175 | 115 |
Purchased Credit Impaired | 125 | |
Total | 15,258 | 15,049 |
Commercial Lease Financing [Member] | Commercial Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 4,644 | 4,647 |
Days Past Due | 33 | 41 |
Purchased Credit Impaired | 0 | |
Total | 4,677 | 4,688 |
Real Estate - Residential Mortgage [Member] | Consumer Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 7,397 | 6,705 |
Days Past Due | 101 | 61 |
Purchased Credit Impaired | 257 | |
Total | 7,498 | 7,023 |
Home Equity Loans [Member] | Consumer Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 9,910 | 10,071 |
Days Past Due | 193 | 190 |
Purchased Credit Impaired | 13 | |
Total | 10,103 | 10,274 |
Consumer Direct Loans [Member] | Consumer Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 3,801 | 3,484 |
Days Past Due | 32 | 26 |
Purchased Credit Impaired | 3 | |
Total | 3,833 | 3,513 |
Commercial Credit Card [Member] | Commercial Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 143 | 144 |
Commercial Credit Card [Member] | Consumer Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 1,015 | 1,104 |
Days Past Due | 26 | 26 |
Purchased Credit Impaired | 0 | |
Total | 1,041 | 1,130 |
Consumer Indirect Loans [Member] | Consumer Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 4,740 | 4,609 |
Days Past Due | 65 | 65 |
Purchased Credit Impaired | 0 | |
Total | 4,805 | 4,674 |
30-59 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days Past Due | 246 | 228 |
30-59 Days Past Due [Member] | Commercial Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days Past Due | 146 | 143 |
30-59 Days Past Due [Member] | Consumer Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days Past Due | 100 | 85 |
30-59 Days Past Due [Member] | Commercial and Industrial [Member] | Commercial Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days Past Due | 100 | 110 |
30-59 Days Past Due [Member] | Commercial Mortgage [Member] | Commercial Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days Past Due | 28 | 8 |
30-59 Days Past Due [Member] | Commercial Real Estate: Construction [Member] | Commercial Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days Past Due | 4 | 3 |
30-59 Days Past Due [Member] | Commercial Real Estate Loans [Member] | Commercial Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days Past Due | 32 | 11 |
30-59 Days Past Due [Member] | Commercial Lease Financing [Member] | Commercial Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days Past Due | 14 | 22 |
30-59 Days Past Due [Member] | Real Estate - Residential Mortgage [Member] | Consumer Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days Past Due | 10 | 7 |
30-59 Days Past Due [Member] | Home Equity Loans [Member] | Consumer Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days Past Due | 34 | 30 |
30-59 Days Past Due [Member] | Consumer Direct Loans [Member] | Consumer Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days Past Due | 17 | 10 |
30-59 Days Past Due [Member] | Commercial Credit Card [Member] | Consumer Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days Past Due | 7 | 6 |
30-59 Days Past Due [Member] | Consumer Indirect Loans [Member] | Consumer Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days Past Due | 32 | 32 |
60-89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days Past Due | 147 | 101 |
60-89 Days Past Due [Member] | Commercial Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days Past Due | 117 | 68 |
60-89 Days Past Due [Member] | Consumer Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days Past Due | 30 | 33 |
60-89 Days Past Due [Member] | Commercial and Industrial [Member] | Commercial Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days Past Due | 78 | 52 |
60-89 Days Past Due [Member] | Commercial Mortgage [Member] | Commercial Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days Past Due | 34 | 5 |
60-89 Days Past Due [Member] | Commercial Real Estate: Construction [Member] | Commercial Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days Past Due | 0 | 0 |
60-89 Days Past Due [Member] | Commercial Real Estate Loans [Member] | Commercial Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days Past Due | 34 | 5 |
60-89 Days Past Due [Member] | Commercial Lease Financing [Member] | Commercial Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days Past Due | 5 | 11 |
60-89 Days Past Due [Member] | Real Estate - Residential Mortgage [Member] | Consumer Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days Past Due | 2 | 5 |
60-89 Days Past Due [Member] | Home Equity Loans [Member] | Consumer Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days Past Due | 11 | 10 |
60-89 Days Past Due [Member] | Consumer Direct Loans [Member] | Consumer Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days Past Due | 4 | 5 |
60-89 Days Past Due [Member] | Commercial Credit Card [Member] | Consumer Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days Past Due | 5 | 5 |
60-89 Days Past Due [Member] | Consumer Indirect Loans [Member] | Consumer Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days Past Due | 8 | 8 |
90 and Greater Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days Past Due | 128 | 97 |
90 and Greater Days Past Due [Member] | Commercial Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days Past Due | 102 | 69 |
90 and Greater Days Past Due [Member] | Consumer Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days Past Due | 26 | 28 |
90 and Greater Days Past Due [Member] | Commercial and Industrial [Member] | Commercial Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days Past Due | 73 | 53 |
90 and Greater Days Past Due [Member] | Commercial Mortgage [Member] | Commercial Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days Past Due | 18 | 13 |
90 and Greater Days Past Due [Member] | Commercial Real Estate: Construction [Member] | Commercial Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days Past Due | 2 | 1 |
90 and Greater Days Past Due [Member] | Commercial Real Estate Loans [Member] | Commercial Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days Past Due | 20 | 14 |
90 and Greater Days Past Due [Member] | Commercial Lease Financing [Member] | Commercial Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days Past Due | 9 | 2 |
90 and Greater Days Past Due [Member] | Real Estate - Residential Mortgage [Member] | Consumer Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days Past Due | 0 | 1 |
90 and Greater Days Past Due [Member] | Home Equity Loans [Member] | Consumer Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days Past Due | 5 | 5 |
90 and Greater Days Past Due [Member] | Consumer Direct Loans [Member] | Consumer Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days Past Due | 7 | 7 |
90 and Greater Days Past Due [Member] | Commercial Credit Card [Member] | Consumer Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days Past Due | 11 | 12 |
90 and Greater Days Past Due [Member] | Consumer Indirect Loans [Member] | Consumer Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days Past Due | 3 | 3 |
Nonperforming Financial Instruments [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days Past Due | 632 | 577 |
Nonperforming Financial Instruments [Member] | Commercial Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days Past Due | 371 | 355 |
Nonperforming Financial Instruments [Member] | Consumer Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days Past Due | 261 | 222 |
Nonperforming Financial Instruments [Member] | Commercial and Industrial [Member] | Commercial Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days Past Due | 277 | 264 |
Nonperforming Financial Instruments [Member] | Commercial Mortgage [Member] | Commercial Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days Past Due | 87 | 83 |
Nonperforming Financial Instruments [Member] | Commercial Real Estate: Construction [Member] | Commercial Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days Past Due | 2 | 2 |
Nonperforming Financial Instruments [Member] | Commercial Real Estate Loans [Member] | Commercial Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days Past Due | 89 | 85 |
Nonperforming Financial Instruments [Member] | Commercial Lease Financing [Member] | Commercial Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days Past Due | 5 | 6 |
Nonperforming Financial Instruments [Member] | Real Estate - Residential Mortgage [Member] | Consumer Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days Past Due | 89 | 48 |
Nonperforming Financial Instruments [Member] | Home Equity Loans [Member] | Consumer Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days Past Due | 143 | 145 |
Nonperforming Financial Instruments [Member] | Consumer Direct Loans [Member] | Consumer Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days Past Due | 4 | 4 |
Nonperforming Financial Instruments [Member] | Commercial Credit Card [Member] | Consumer Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days Past Due | 3 | 3 |
Nonperforming Financial Instruments [Member] | Consumer Indirect Loans [Member] | Consumer Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Days Past Due | $ 22 | $ 22 |
Asset Quality - Post-Modificati
Asset Quality - Post-Modification Outstanding Recorded Investment by Concession Type for Our Commercial Accruing and Nonaccruing TDRs (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total commercial and consumer TDRs | $ 18 | $ 13 |
Consumer Loans [Member] | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Interest rate reduction | 9 | 4 |
Other | 9 | 9 |
Total | $ 18 | $ 13 |
Asset Quality - Summary of Post
Asset Quality - Summary of Post-Modification Outstanding Recorded Investment TDRs (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Financing Receivables, Modifications, Rollforward [Roll Forward] | ||
Balance at beginning of the period | $ 347 | $ 399 |
Additions | 17 | 14 |
Payments | (18) | (39) |
Charge-offs | (6) | (9) |
Balance at end of period | $ 340 | $ 365 |
Asset Quality - Breakdown of No
Asset Quality - Breakdown of Nonperforming TDRs by Loans Category (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020USD ($)SecurityLoan | Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($)SecurityLoan | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | SecurityLoan | 6,310 | 6,212 | |
Pre-modification Outstanding Recorded Investment | $ 423 | $ 425 | |
Post-modification Outstanding Recorded Investment | $ 340 | $ 347 | |
Prior-Year Accruing [Member] | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | SecurityLoan | 3,860 | 3,590 | |
Pre-modification Outstanding Recorded Investment | $ 217 | $ 211 | |
Post-modification Outstanding Recorded Investment | $ 169 | $ 164 | |
Prior-Year Accruing [Member] | Commercial Loans [Member] | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | SecurityLoan | 6 | 7 | |
Pre-modification Outstanding Recorded Investment | $ 31 | $ 30 | |
Post-modification Outstanding Recorded Investment | $ 25 | $ 25 | |
Prior-Year Accruing [Member] | Consumer Loans [Member] | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | SecurityLoan | 3,854 | 3,583 | |
Pre-modification Outstanding Recorded Investment | $ 186 | $ 181 | |
Post-modification Outstanding Recorded Investment | $ 144 | $ 139 | |
Nonperforming Financial Instruments [Member] | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | SecurityLoan | 2,450 | 2,622 | |
Pre-modification Outstanding Recorded Investment | $ 206 | $ 214 | |
Post-modification Outstanding Recorded Investment | $ 171 | $ 183 | |
Nonperforming Financial Instruments [Member] | Commercial Loans [Member] | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | SecurityLoan | 42 | 57 | |
Pre-modification Outstanding Recorded Investment | $ 129 | $ 136 | |
Post-modification Outstanding Recorded Investment | $ 101 | $ 111 | |
Nonperforming Financial Instruments [Member] | Consumer Loans [Member] | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | SecurityLoan | 2,408 | 2,565 | |
Pre-modification Outstanding Recorded Investment | $ 77 | $ 78 | |
Post-modification Outstanding Recorded Investment | $ 70 | $ 72 | |
Commercial and Industrial [Member] | Prior-Year Accruing [Member] | Commercial Loans [Member] | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | SecurityLoan | 5 | 6 | |
Pre-modification Outstanding Recorded Investment | $ 30 | $ 30 | |
Post-modification Outstanding Recorded Investment | $ 25 | $ 25 | |
Commercial and Industrial [Member] | Nonperforming Financial Instruments [Member] | Commercial Loans [Member] | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | SecurityLoan | 35 | 51 | |
Pre-modification Outstanding Recorded Investment | $ 65 | $ 72 | |
Post-modification Outstanding Recorded Investment | $ 43 | $ 53 | |
Commercial Mortgage [Member] | Prior-Year Accruing [Member] | Commercial Real Estate Portfolio Segment [Member] | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | SecurityLoan | 1 | 1 | |
Pre-modification Outstanding Recorded Investment | $ 1 | $ 0 | |
Post-modification Outstanding Recorded Investment | $ 0 | $ 0 | |
Commercial Mortgage [Member] | Nonperforming Financial Instruments [Member] | Commercial Real Estate Portfolio Segment [Member] | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | SecurityLoan | 7 | 6 | |
Pre-modification Outstanding Recorded Investment | $ 64 | $ 64 | |
Post-modification Outstanding Recorded Investment | $ 58 | $ 58 | |
Commercial Real Estate Loans [Member] | Prior-Year Accruing [Member] | Commercial Real Estate Portfolio Segment [Member] | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | SecurityLoan | 1 | 1 | |
Pre-modification Outstanding Recorded Investment | $ 1 | $ 0 | |
Post-modification Outstanding Recorded Investment | $ 0 | $ 0 | |
Commercial Real Estate Loans [Member] | Nonperforming Financial Instruments [Member] | Commercial Real Estate Portfolio Segment [Member] | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | SecurityLoan | 7 | 6 | |
Pre-modification Outstanding Recorded Investment | $ 64 | $ 64 | |
Post-modification Outstanding Recorded Investment | $ 58 | $ 58 | |
Real Estate - Residential Mortgage [Member] | Prior-Year Accruing [Member] | Consumer Loans [Member] | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | SecurityLoan | 489 | 493 | |
Pre-modification Outstanding Recorded Investment | $ 36 | $ 37 | |
Post-modification Outstanding Recorded Investment | $ 31 | $ 31 | |
Real Estate - Residential Mortgage [Member] | Nonperforming Financial Instruments [Member] | Consumer Loans [Member] | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | SecurityLoan | 194 | 181 | |
Pre-modification Outstanding Recorded Investment | $ 16 | $ 13 | |
Post-modification Outstanding Recorded Investment | $ 14 | $ 11 | |
Home Equity Loans [Member] | Prior-Year Accruing [Member] | Consumer Loans [Member] | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | SecurityLoan | 1,839 | 1,751 | |
Pre-modification Outstanding Recorded Investment | $ 110 | $ 104 | |
Post-modification Outstanding Recorded Investment | $ 90 | $ 84 | |
Home Equity Loans [Member] | Nonperforming Financial Instruments [Member] | Consumer Loans [Member] | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | SecurityLoan | 625 | 713 | |
Pre-modification Outstanding Recorded Investment | $ 38 | $ 42 | |
Post-modification Outstanding Recorded Investment | $ 37 | $ 41 | |
Consumer Direct Loans [Member] | Prior-Year Accruing [Member] | Consumer Loans [Member] | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | SecurityLoan | 165 | 139 | |
Pre-modification Outstanding Recorded Investment | $ 4 | $ 4 | |
Post-modification Outstanding Recorded Investment | $ 3 | $ 3 | |
Consumer Direct Loans [Member] | Nonperforming Financial Instruments [Member] | Consumer Loans [Member] | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | SecurityLoan | 168 | 172 | |
Pre-modification Outstanding Recorded Investment | $ 2 | $ 2 | |
Post-modification Outstanding Recorded Investment | $ 2 | $ 2 | |
Consumer Credit Card [Member] | Prior-Year Accruing [Member] | Consumer Loans [Member] | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | SecurityLoan | 577 | 486 | |
Pre-modification Outstanding Recorded Investment | $ 3 | $ 3 | |
Post-modification Outstanding Recorded Investment | $ 1 | $ 1 | |
Consumer Credit Card [Member] | Nonperforming Financial Instruments [Member] | Consumer Loans [Member] | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | SecurityLoan | 324 | 368 | |
Pre-modification Outstanding Recorded Investment | $ 2 | $ 2 | |
Post-modification Outstanding Recorded Investment | $ 2 | $ 2 | |
Consumer Indirect Loans [Member] | Prior-Year Accruing [Member] | Consumer Loans [Member] | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | SecurityLoan | 784 | 714 | |
Pre-modification Outstanding Recorded Investment | $ 33 | $ 33 | |
Post-modification Outstanding Recorded Investment | $ 19 | $ 20 | |
Consumer Indirect Loans [Member] | Nonperforming Financial Instruments [Member] | Consumer Loans [Member] | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | SecurityLoan | 1,097 | 1,131 | |
Pre-modification Outstanding Recorded Investment | $ 19 | $ 19 | |
Post-modification Outstanding Recorded Investment | $ 15 | $ 16 |
Asset Quality - Changes in Liab
Asset Quality - Changes in Liability for Credit Losses on Lending Related Commitments (Details) - USD ($) $ in Millions | Jan. 01, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 |
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | |||||
Balance at the end of the prior period | $ 68 | $ 68 | $ 64 | ||
Liability for credit losses on contingent guarantees at the end of the prior period | $ 7 | $ 0 | |||
Cumulative effect from changes in accounting principle | 66 | ||||
Balance at beginning of period | 141 | 161 | 62 | $ 68 | $ 64 |
Provision (credit) for losses on off balance sheet exposures | 20 | (2) | |||
Balance at end of period | 141 | $ 161 | $ 62 | ||
Other Financial Assets [Member] | |||||
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | |||||
Cumulative effect from changes in accounting principle | $ 4 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value of Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 |
ASSETS MEASURED ON A RECURRING BASIS | |||
Total trading account securities | $ 795,000,000 | $ 1,040,000,000 | |
Securities available for sale | 20,807,000,000 | 21,843,000,000 | |
Loans, net of unearned income of $575 and $603 | 103,198,000,000 | 94,646,000,000 | |
Loans held for sale (residential) | 0 | ||
Derivative assets, netting adjustments | (809,000,000) | $ (473,000,000) | |
Total derivative assets | 2,068,000,000 | 780,000,000 | |
LIABILITIES MEASURED ON A RECURRING BASIS | |||
Derivative liabilities, netting adjustments | (595,000,000) | $ (335,000,000) | |
US Treasury and Government [Member] | |||
ASSETS MEASURED ON A RECURRING BASIS | |||
Securities available for sale | 341,000,000 | 334,000,000 | |
US States and Political Subdivisions Debt Securities [Member] | |||
ASSETS MEASURED ON A RECURRING BASIS | |||
Securities available for sale | 4,000,000 | 4,000,000 | |
Other Securities [Member] | |||
ASSETS MEASURED ON A RECURRING BASIS | |||
Securities available for sale | 9,000,000 | 11,000,000 | |
Residential Mortgage Backed Securities [Member] | |||
ASSETS MEASURED ON A RECURRING BASIS | |||
Securities available for sale | 1,539,000,000 | 1,714,000,000 | |
Other Mortgage-Backed Securities [Member] | Commercial Mortgage Backed Securities [Member] | |||
ASSETS MEASURED ON A RECURRING BASIS | |||
Securities available for sale | 6,869,000,000 | 6,997,000,000 | |
Recurring [Member] | |||
ASSETS MEASURED ON A RECURRING BASIS | |||
Total trading account securities | 789,000,000 | 995,000,000 | |
Commercial loans | 6,000,000 | 45,000,000 | |
Total trading account assets | 795,000,000 | 1,040,000,000 | |
Securities available for sale | 20,807,000,000 | 21,843,000,000 | |
Total other investments | 84,000,000 | 90,000,000 | |
Loans, net of unearned income of $575 and $603 | 3,000,000 | 4,000,000 | |
Loans held for sale (residential) | 152,000,000 | 140,000,000 | |
Derivative assets, gross | 2,877,000,000 | 1,253,000,000 | |
Derivative assets, netting adjustments | (809,000,000) | (473,000,000) | |
Total derivative assets | 2,068,000,000 | 780,000,000 | |
Accrued income and other assets | 0 | 0 | |
Total assets at fair value | 23,909,000,000 | 23,897,000,000 | |
LIABILITIES MEASURED ON A RECURRING BASIS | |||
Total liabilities on a recurring basis at fair value | 1,255,000,000 | 903,000,000 | |
Recurring [Member] | US Treasury and Government [Member] | |||
ASSETS MEASURED ON A RECURRING BASIS | |||
Total trading account securities | 556,000,000 | 843,000,000 | |
Securities available for sale | 341,000,000 | 334,000,000 | |
Recurring [Member] | US States and Political Subdivisions Debt Securities [Member] | |||
ASSETS MEASURED ON A RECURRING BASIS | |||
Total trading account securities | 19,000,000 | 30,000,000 | |
Securities available for sale | 4,000,000 | 4,000,000 | |
Recurring [Member] | Other Securities [Member] | |||
ASSETS MEASURED ON A RECURRING BASIS | |||
Total trading account securities | 38,000,000 | 44,000,000 | |
Securities available for sale | 9,000,000 | 11,000,000 | |
Recurring [Member] | Commercial Mortgage Backed Securities [Member] | |||
ASSETS MEASURED ON A RECURRING BASIS | |||
Securities available for sale | 6,869,000,000 | 6,997,000,000 | |
Recurring [Member] | Principal Investments Direct [Member] | |||
ASSETS MEASURED ON A RECURRING BASIS | |||
Total other investments | 1,000,000 | 1,000,000 | |
Recurring [Member] | Principal Investments [Member] | |||
ASSETS MEASURED ON A RECURRING BASIS | |||
Total other investments | 65,000,000 | 69,000,000 | |
Recurring [Member] | Equity Investments Direct [Member] | |||
ASSETS MEASURED ON A RECURRING BASIS | |||
Total other investments | 10,000,000 | 12,000,000 | |
Recurring [Member] | Equity Investments [Member] | |||
ASSETS MEASURED ON A RECURRING BASIS | |||
Total other investments | 19,000,000 | 21,000,000 | |
Recurring [Member] | Other Mortgage-Backed Securities [Member] | |||
ASSETS MEASURED ON A RECURRING BASIS | |||
Total trading account securities | 176,000,000 | 78,000,000 | |
Recurring [Member] | Other Mortgage-Backed Securities [Member] | Residential Mortgage Backed Securities [Member] | |||
ASSETS MEASURED ON A RECURRING BASIS | |||
Securities available for sale | 1,539,000,000 | 1,714,000,000 | |
Recurring [Member] | Short [Member] | |||
LIABILITIES MEASURED ON A RECURRING BASIS | |||
Short positions | 606,000,000 | 705,000,000 | |
Recurring [Member] | Long [Member] | |||
LIABILITIES MEASURED ON A RECURRING BASIS | |||
Derivative liabilities, gross | 1,244,000,000 | 533,000,000 | |
Derivative liabilities, netting adjustments | (595,000,000) | (335,000,000) | |
Total derivative liabilities | 649,000,000 | 198,000,000 | |
Recurring [Member] | Interest Rate [Member] | |||
ASSETS MEASURED ON A RECURRING BASIS | |||
Derivative assets, gross | 1,941,000,000 | 963,000,000 | |
Recurring [Member] | Interest Rate [Member] | Long [Member] | |||
LIABILITIES MEASURED ON A RECURRING BASIS | |||
Derivative liabilities, gross | 329,000,000 | 253,000,000 | |
Recurring [Member] | Foreign Exchange [Member] | |||
ASSETS MEASURED ON A RECURRING BASIS | |||
Derivative assets, gross | 164,000,000 | 67,000,000 | |
Recurring [Member] | Foreign Exchange [Member] | Long [Member] | |||
LIABILITIES MEASURED ON A RECURRING BASIS | |||
Derivative liabilities, gross | 157,000,000 | 60,000,000 | |
Recurring [Member] | Commodity [Member] | |||
ASSETS MEASURED ON A RECURRING BASIS | |||
Derivative assets, gross | 704,000,000 | 208,000,000 | |
Recurring [Member] | Commodity [Member] | Long [Member] | |||
LIABILITIES MEASURED ON A RECURRING BASIS | |||
Derivative liabilities, gross | 690,000,000 | 200,000,000 | |
Recurring [Member] | Credit [Member] | |||
ASSETS MEASURED ON A RECURRING BASIS | |||
Derivative assets, gross | 11,000,000 | 1,000,000 | |
Recurring [Member] | Credit [Member] | Long [Member] | |||
LIABILITIES MEASURED ON A RECURRING BASIS | |||
Derivative liabilities, gross | 28,000,000 | 10,000,000 | |
Recurring [Member] | Other [Member] | |||
ASSETS MEASURED ON A RECURRING BASIS | |||
Derivative assets, gross | 57,000,000 | 14,000,000 | |
Recurring [Member] | Other [Member] | Long [Member] | |||
LIABILITIES MEASURED ON A RECURRING BASIS | |||
Derivative liabilities, gross | 40,000,000 | 10,000,000 | |
Level 1 [Member] | Recurring [Member] | |||
ASSETS MEASURED ON A RECURRING BASIS | |||
Total trading account securities | 0 | 0 | |
Commercial loans | 0 | 0 | |
Total trading account assets | 0 | 0 | |
Securities available for sale | 0 | 0 | |
Total other investments | 0 | 0 | |
Loans, net of unearned income of $575 and $603 | 0 | 0 | |
Loans held for sale (residential) | 0 | 0 | |
Derivative assets, gross | 124,000,000 | 49,000,000 | |
Derivative assets, netting adjustments | 0 | 0 | |
Total derivative assets | 124,000,000 | 49,000,000 | |
Accrued income and other assets | 0 | 0 | |
Total assets at fair value | 124,000,000 | 49,000,000 | |
LIABILITIES MEASURED ON A RECURRING BASIS | |||
Total liabilities on a recurring basis at fair value | 241,000,000 | 62,000,000 | |
Level 1 [Member] | Recurring [Member] | US Treasury and Government [Member] | |||
ASSETS MEASURED ON A RECURRING BASIS | |||
Total trading account securities | 0 | 0 | |
Securities available for sale | 0 | 0 | |
Level 1 [Member] | Recurring [Member] | US States and Political Subdivisions Debt Securities [Member] | |||
ASSETS MEASURED ON A RECURRING BASIS | |||
Total trading account securities | 0 | 0 | |
Securities available for sale | 0 | 0 | |
Level 1 [Member] | Recurring [Member] | Other Securities [Member] | |||
ASSETS MEASURED ON A RECURRING BASIS | |||
Total trading account securities | 0 | 0 | |
Securities available for sale | 0 | 0 | |
Level 1 [Member] | Recurring [Member] | Commercial Mortgage Backed Securities [Member] | |||
ASSETS MEASURED ON A RECURRING BASIS | |||
Securities available for sale | 0 | 0 | |
Level 1 [Member] | Recurring [Member] | Principal Investments Direct [Member] | |||
ASSETS MEASURED ON A RECURRING BASIS | |||
Total other investments | 0 | 0 | |
Level 1 [Member] | Recurring [Member] | Principal Investments [Member] | |||
ASSETS MEASURED ON A RECURRING BASIS | |||
Total other investments | 0 | 0 | |
Level 1 [Member] | Recurring [Member] | Equity Investments Direct [Member] | |||
ASSETS MEASURED ON A RECURRING BASIS | |||
Total other investments | 0 | ||
Level 1 [Member] | Recurring [Member] | Equity Investments Direct, NAV [Member] | |||
ASSETS MEASURED ON A RECURRING BASIS | |||
Total other investments | 0 | ||
Level 1 [Member] | Recurring [Member] | Equity Investments [Member] | |||
ASSETS MEASURED ON A RECURRING BASIS | |||
Total other investments | 0 | 0 | |
Level 1 [Member] | Recurring [Member] | Other Mortgage-Backed Securities [Member] | |||
ASSETS MEASURED ON A RECURRING BASIS | |||
Total trading account securities | 0 | 0 | |
Level 1 [Member] | Recurring [Member] | Other Mortgage-Backed Securities [Member] | Residential Mortgage Backed Securities [Member] | |||
ASSETS MEASURED ON A RECURRING BASIS | |||
Securities available for sale | 0 | 0 | |
Level 1 [Member] | Recurring [Member] | Short [Member] | |||
LIABILITIES MEASURED ON A RECURRING BASIS | |||
Short positions | 124,000,000 | 19,000,000 | |
Level 1 [Member] | Recurring [Member] | Long [Member] | |||
LIABILITIES MEASURED ON A RECURRING BASIS | |||
Derivative liabilities, gross | 117,000,000 | 43,000,000 | |
Derivative liabilities, netting adjustments | 0 | 0 | |
Total derivative liabilities | 117,000,000 | 43,000,000 | |
Level 1 [Member] | Recurring [Member] | Interest Rate [Member] | |||
ASSETS MEASURED ON A RECURRING BASIS | |||
Derivative assets, gross | 0 | 0 | |
Level 1 [Member] | Recurring [Member] | Interest Rate [Member] | Long [Member] | |||
LIABILITIES MEASURED ON A RECURRING BASIS | |||
Derivative liabilities, gross | 0 | 0 | |
Level 1 [Member] | Recurring [Member] | Foreign Exchange [Member] | |||
ASSETS MEASURED ON A RECURRING BASIS | |||
Derivative assets, gross | 124,000,000 | 49,000,000 | |
Level 1 [Member] | Recurring [Member] | Foreign Exchange [Member] | Long [Member] | |||
LIABILITIES MEASURED ON A RECURRING BASIS | |||
Derivative liabilities, gross | 117,000,000 | 43,000,000 | |
Level 1 [Member] | Recurring [Member] | Commodity [Member] | |||
ASSETS MEASURED ON A RECURRING BASIS | |||
Derivative assets, gross | 0 | 0 | |
Level 1 [Member] | Recurring [Member] | Commodity [Member] | Long [Member] | |||
LIABILITIES MEASURED ON A RECURRING BASIS | |||
Derivative liabilities, gross | 0 | 0 | |
Level 1 [Member] | Recurring [Member] | Credit [Member] | |||
ASSETS MEASURED ON A RECURRING BASIS | |||
Derivative assets, gross | 0 | 0 | |
Level 1 [Member] | Recurring [Member] | Credit [Member] | Long [Member] | |||
LIABILITIES MEASURED ON A RECURRING BASIS | |||
Derivative liabilities, gross | 0 | 0 | |
Level 1 [Member] | Recurring [Member] | Other [Member] | |||
ASSETS MEASURED ON A RECURRING BASIS | |||
Derivative assets, gross | 0 | 0 | |
Level 1 [Member] | Recurring [Member] | Other [Member] | Long [Member] | |||
LIABILITIES MEASURED ON A RECURRING BASIS | |||
Derivative liabilities, gross | 0 | 0 | |
Level 2 [Member] | Recurring [Member] | |||
ASSETS MEASURED ON A RECURRING BASIS | |||
Total trading account securities | 789,000,000 | 995,000,000 | |
Commercial loans | 6,000,000 | 45,000,000 | |
Total trading account assets | 795,000,000 | 1,040,000,000 | |
Securities available for sale | 20,798,000,000 | 21,832,000,000 | |
Total other investments | 0 | 0 | |
Loans, net of unearned income of $575 and $603 | 0 | 0 | |
Loans held for sale (residential) | 142,000,000 | 140,000,000 | |
Derivative assets, gross | 2,629,000,000 | 1,176,000,000 | |
Derivative assets, netting adjustments | 0 | 0 | |
Total derivative assets | 2,629,000,000 | 1,176,000,000 | |
Accrued income and other assets | 0 | 0 | |
Total assets at fair value | 24,364,000,000 | 24,188,000,000 | |
LIABILITIES MEASURED ON A RECURRING BASIS | |||
Total liabilities on a recurring basis at fair value | 1,581,000,000 | 1,167,000,000 | |
Level 2 [Member] | Recurring [Member] | US Treasury and Government [Member] | |||
ASSETS MEASURED ON A RECURRING BASIS | |||
Total trading account securities | 556,000,000 | 843,000,000 | |
Securities available for sale | 341,000,000 | 334,000,000 | |
Level 2 [Member] | Recurring [Member] | US States and Political Subdivisions Debt Securities [Member] | |||
ASSETS MEASURED ON A RECURRING BASIS | |||
Total trading account securities | 19,000,000 | 30,000,000 | |
Securities available for sale | 4,000,000 | 4,000,000 | |
Level 2 [Member] | Recurring [Member] | Other Securities [Member] | |||
ASSETS MEASURED ON A RECURRING BASIS | |||
Total trading account securities | 38,000,000 | 44,000,000 | |
Securities available for sale | 0 | 0 | |
Level 2 [Member] | Recurring [Member] | Commercial Mortgage Backed Securities [Member] | |||
ASSETS MEASURED ON A RECURRING BASIS | |||
Securities available for sale | 6,869,000,000 | 6,997,000,000 | |
Level 2 [Member] | Recurring [Member] | Principal Investments Direct [Member] | |||
ASSETS MEASURED ON A RECURRING BASIS | |||
Total other investments | 0 | 0 | |
Level 2 [Member] | Recurring [Member] | Principal Investments [Member] | |||
ASSETS MEASURED ON A RECURRING BASIS | |||
Total other investments | 0 | 0 | |
Level 2 [Member] | Recurring [Member] | Equity Investments Direct [Member] | |||
ASSETS MEASURED ON A RECURRING BASIS | |||
Total other investments | 0 | 0 | |
Level 2 [Member] | Recurring [Member] | Equity Investments [Member] | |||
ASSETS MEASURED ON A RECURRING BASIS | |||
Total other investments | 0 | 0 | |
Level 2 [Member] | Recurring [Member] | Other Mortgage-Backed Securities [Member] | |||
ASSETS MEASURED ON A RECURRING BASIS | |||
Total trading account securities | 176,000,000 | 78,000,000 | |
Level 2 [Member] | Recurring [Member] | Other Mortgage-Backed Securities [Member] | Residential Mortgage Backed Securities [Member] | |||
ASSETS MEASURED ON A RECURRING BASIS | |||
Securities available for sale | 1,539,000,000 | 1,714,000,000 | |
Level 2 [Member] | Recurring [Member] | Short [Member] | |||
LIABILITIES MEASURED ON A RECURRING BASIS | |||
Short positions | 482,000,000 | 686,000,000 | |
Level 2 [Member] | Recurring [Member] | Long [Member] | |||
LIABILITIES MEASURED ON A RECURRING BASIS | |||
Derivative liabilities, gross | 1,099,000,000 | 481,000,000 | |
Derivative liabilities, netting adjustments | 0 | 0 | |
Total derivative liabilities | 1,099,000,000 | 481,000,000 | |
Level 2 [Member] | Recurring [Member] | Interest Rate [Member] | |||
ASSETS MEASURED ON A RECURRING BASIS | |||
Derivative assets, gross | 1,845,000,000 | 941,000,000 | |
Level 2 [Member] | Recurring [Member] | Interest Rate [Member] | Long [Member] | |||
LIABILITIES MEASURED ON A RECURRING BASIS | |||
Derivative liabilities, gross | 329,000,000 | 253,000,000 | |
Level 2 [Member] | Recurring [Member] | Foreign Exchange [Member] | |||
ASSETS MEASURED ON A RECURRING BASIS | |||
Derivative assets, gross | 40,000,000 | 18,000,000 | |
Level 2 [Member] | Recurring [Member] | Foreign Exchange [Member] | Long [Member] | |||
LIABILITIES MEASURED ON A RECURRING BASIS | |||
Derivative liabilities, gross | 40,000,000 | 17,000,000 | |
Level 2 [Member] | Recurring [Member] | Commodity [Member] | |||
ASSETS MEASURED ON A RECURRING BASIS | |||
Derivative assets, gross | 704,000,000 | 208,000,000 | |
Level 2 [Member] | Recurring [Member] | Commodity [Member] | Long [Member] | |||
LIABILITIES MEASURED ON A RECURRING BASIS | |||
Derivative liabilities, gross | 690,000,000 | 200,000,000 | |
Level 2 [Member] | Recurring [Member] | Credit [Member] | |||
ASSETS MEASURED ON A RECURRING BASIS | |||
Derivative assets, gross | 6,000,000 | 0 | |
Level 2 [Member] | Recurring [Member] | Credit [Member] | Long [Member] | |||
LIABILITIES MEASURED ON A RECURRING BASIS | |||
Derivative liabilities, gross | 0 | 1,000,000 | |
Level 2 [Member] | Recurring [Member] | Other [Member] | |||
ASSETS MEASURED ON A RECURRING BASIS | |||
Derivative assets, gross | 34,000,000 | 9,000,000 | |
Level 2 [Member] | Recurring [Member] | Other [Member] | Long [Member] | |||
LIABILITIES MEASURED ON A RECURRING BASIS | |||
Derivative liabilities, gross | 40,000,000 | 10,000,000 | |
Level 3 [Member] | Recurring [Member] | |||
ASSETS MEASURED ON A RECURRING BASIS | |||
Total trading account securities | 0 | 0 | |
Commercial loans | 0 | 0 | |
Total trading account assets | 0 | 0 | |
Securities available for sale | 9,000,000 | 11,000,000 | |
Total other investments | 11,000,000 | 13,000,000 | |
Loans, net of unearned income of $575 and $603 | 3,000,000 | 4,000,000 | |
Loans held for sale (residential) | 10,000,000 | 0 | |
Derivative assets, gross | 124,000,000 | 28,000,000 | |
Derivative assets, netting adjustments | 0 | 0 | |
Total derivative assets | 124,000,000 | 28,000,000 | |
Accrued income and other assets | 0 | 0 | |
Total assets at fair value | 157,000,000 | 56,000,000 | |
LIABILITIES MEASURED ON A RECURRING BASIS | |||
Total liabilities on a recurring basis at fair value | 28,000,000 | 9,000,000 | |
Level 3 [Member] | Recurring [Member] | US Treasury and Government [Member] | |||
ASSETS MEASURED ON A RECURRING BASIS | |||
Total trading account securities | 0 | 0 | |
Securities available for sale | 0 | 0 | |
Level 3 [Member] | Recurring [Member] | US States and Political Subdivisions Debt Securities [Member] | |||
ASSETS MEASURED ON A RECURRING BASIS | |||
Total trading account securities | 0 | 0 | |
Securities available for sale | 0 | 0 | |
Level 3 [Member] | Recurring [Member] | Other Securities [Member] | |||
ASSETS MEASURED ON A RECURRING BASIS | |||
Total trading account securities | 0 | 0 | |
Securities available for sale | 9,000,000 | 11,000,000 | |
Level 3 [Member] | Recurring [Member] | Commercial Mortgage Backed Securities [Member] | |||
ASSETS MEASURED ON A RECURRING BASIS | |||
Securities available for sale | 0 | 0 | |
Level 3 [Member] | Recurring [Member] | Principal Investments Direct [Member] | |||
ASSETS MEASURED ON A RECURRING BASIS | |||
Total other investments | 1,000,000 | ||
Level 3 [Member] | Recurring [Member] | Principal Investments [Member] | |||
ASSETS MEASURED ON A RECURRING BASIS | |||
Total other investments | 1,000,000 | 1,000,000 | |
Level 3 [Member] | Recurring [Member] | Equity Investments Direct [Member] | |||
ASSETS MEASURED ON A RECURRING BASIS | |||
Total other investments | 12,000,000 | ||
Level 3 [Member] | Recurring [Member] | Equity Investments [Member] | |||
ASSETS MEASURED ON A RECURRING BASIS | |||
Total other investments | 10,000,000 | 12,000,000 | |
Level 3 [Member] | Recurring [Member] | Other Mortgage-Backed Securities [Member] | |||
ASSETS MEASURED ON A RECURRING BASIS | |||
Total trading account securities | 0 | 0 | |
Level 3 [Member] | Recurring [Member] | Other Mortgage-Backed Securities [Member] | Residential Mortgage Backed Securities [Member] | |||
ASSETS MEASURED ON A RECURRING BASIS | |||
Securities available for sale | 0 | 0 | |
Level 3 [Member] | Recurring [Member] | Short [Member] | |||
LIABILITIES MEASURED ON A RECURRING BASIS | |||
Short positions | 0 | 0 | |
Level 3 [Member] | Recurring [Member] | Long [Member] | |||
LIABILITIES MEASURED ON A RECURRING BASIS | |||
Derivative liabilities, gross | 28,000,000 | 9,000,000 | |
Derivative liabilities, netting adjustments | 0 | 0 | |
Total derivative liabilities | 28,000,000 | 9,000,000 | |
Level 3 [Member] | Recurring [Member] | Interest Rate [Member] | |||
ASSETS MEASURED ON A RECURRING BASIS | |||
Derivative assets, gross | 22,000,000 | ||
Level 3 [Member] | Recurring [Member] | Interest Rate [Member] | Long [Member] | |||
LIABILITIES MEASURED ON A RECURRING BASIS | |||
Derivative liabilities, gross | 0 | 0 | |
Level 3 [Member] | Recurring [Member] | Foreign Exchange [Member] | |||
ASSETS MEASURED ON A RECURRING BASIS | |||
Derivative assets, gross | 0 | 0 | |
Level 3 [Member] | Recurring [Member] | Foreign Exchange [Member] | Long [Member] | |||
LIABILITIES MEASURED ON A RECURRING BASIS | |||
Derivative liabilities, gross | 0 | 0 | |
Level 3 [Member] | Recurring [Member] | Commodity [Member] | |||
ASSETS MEASURED ON A RECURRING BASIS | |||
Derivative assets, gross | 0 | 0 | |
Level 3 [Member] | Recurring [Member] | Commodity [Member] | Long [Member] | |||
LIABILITIES MEASURED ON A RECURRING BASIS | |||
Derivative liabilities, gross | 0 | 0 | |
Level 3 [Member] | Recurring [Member] | Credit [Member] | |||
ASSETS MEASURED ON A RECURRING BASIS | |||
Derivative assets, gross | 5,000,000 | 1,000,000 | |
Level 3 [Member] | Recurring [Member] | Credit [Member] | Long [Member] | |||
LIABILITIES MEASURED ON A RECURRING BASIS | |||
Derivative liabilities, gross | 28,000,000 | 9,000,000 | |
Level 3 [Member] | Recurring [Member] | Other [Member] | |||
ASSETS MEASURED ON A RECURRING BASIS | |||
Derivative assets, gross | 5,000,000 | ||
Level 3 [Member] | Recurring [Member] | Other [Member] | Long [Member] | |||
LIABILITIES MEASURED ON A RECURRING BASIS | |||
Derivative liabilities, gross | 0 | 0 | |
Measured at NAV [Member] | Recurring [Member] | Principal Investments Indirect [Member] | |||
ASSETS MEASURED ON A RECURRING BASIS | |||
Total other investments | 64,000,000 | 68,000,000 | |
Measured at NAV [Member] | Recurring [Member] | Equity Investments Direct, NAV [Member] | |||
ASSETS MEASURED ON A RECURRING BASIS | |||
Total other investments | 1,000,000 | 1,000,000 | |
Measured at NAV [Member] | Recurring [Member] | Equity Investments Indirect, NAV [Member] | |||
ASSETS MEASURED ON A RECURRING BASIS | |||
Total other investments | 8,000,000 | 8,000,000 | |
Collateralized Mortgage Obligations [Member] | Recurring [Member] | |||
ASSETS MEASURED ON A RECURRING BASIS | |||
Securities available for sale | 12,045,000,000 | 12,783,000,000 | |
Collateralized Mortgage Obligations [Member] | Level 1 [Member] | Recurring [Member] | |||
ASSETS MEASURED ON A RECURRING BASIS | |||
Securities available for sale | 0 | 0 | |
Collateralized Mortgage Obligations [Member] | Level 2 [Member] | Recurring [Member] | |||
ASSETS MEASURED ON A RECURRING BASIS | |||
Securities available for sale | 12,045,000,000 | 12,783,000,000 | |
Collateralized Mortgage Obligations [Member] | Level 3 [Member] | Recurring [Member] | |||
ASSETS MEASURED ON A RECURRING BASIS | |||
Securities available for sale | $ 0 | $ 0 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Other equity investments | $ 145,000,000 | $ 134,000,000 | |
Impairment loss (less than) | 1,000,000 | ||
Discontinued Operations [Member] | Education Lending [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans at fair value | 2,000,000 | 2,000,000 | |
Fair Value [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Other investments | 679,000,000 | 605,000,000 | |
Loans at fair value | 3,000,000 | 4,000,000 | |
Fair Value [Member] | Discontinued Operations [Member] | Education Lending [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans, net of allowance | 649,000,000 | 729,000,000 | |
Carrying Amount [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Other investments | 679,000,000 | 605,000,000 | |
Loans at fair value | 3,000,000 | 4,000,000 | |
Carrying Amount [Member] | Discontinued Operations [Member] | Education Lending [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans, net of allowance | 778,000,000 | 855,000,000 | |
Level 3 [Member] | Fair Value [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Other investments | 606,000,000 | 528,000,000 | |
Loans at fair value | 3,000,000 | $ 4,000,000 | |
Recurring [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Other investments | 84,000,000 | $ 90,000,000 | |
Liabilities measured at fair value on non recurring basis | 1,255,000,000 | 903,000,000 | |
Recurring [Member] | Level 3 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Other investments | 11,000,000 | 13,000,000 | |
Liabilities measured at fair value on non recurring basis | 28,000,000 | 9,000,000 | |
Nonrecurring [Member] | Fair Value [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Liabilities measured at fair value on non recurring basis | 0 | 0 | |
Principal Investments Direct [Member] | Recurring [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Other investments | $ 1,000,000 | 1,000,000 | |
Principal Investments Direct [Member] | Recurring [Member] | Level 3 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Other investments | $ 1,000,000 |
Fair Value Measurements - Fai_2
Fair Value Measurements - Fair Value of Direct and Indirect Investments, Related Unfunded Commitments and Financial Support Provided (Details) - Principal Investments [Member] - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value | $ 65 | |
Unfunded Commitments | 20 | |
Funded Commitments | 0 | $ 1 |
Funded Other | 0 | 1 |
Direct Investments [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value | 1 | |
Unfunded Commitments | 0 | |
Funded Commitments | 0 | 0 |
Funded Other | 0 | 1 |
Indirect Investments [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value | 64 | |
Unfunded Commitments | 20 | |
Funded Commitments | 0 | 1 |
Funded Other | $ 0 | $ 0 |
Fair Value Measurements - Chang
Fair Value Measurements - Change in Fair Values of Level 3 Financial Instruments (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Securities Available for Sale [Member] | Other Securities [Member] | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Beginning of Period Balance | $ 11 | $ 20 |
Gains (Losses) Included in Other Comprehensive Income | (2) | 5 |
Gains (Losses) Included in Earnings | 0 | 0 |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Settlements | 0 | 0 |
Transfers Other | 0 | 0 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
End of Period Balance | 9 | 25 |
Unrealized Gains (Losses) Included in Earnings | 0 | 0 |
Other Investments [Member] | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Beginning of Period Balance | 12 | 7 |
Gains (Losses) Included in Other Comprehensive Income | 0 | 0 |
Gains (Losses) Included in Earnings | (2) | 0 |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Settlements | 0 | 0 |
Transfers Other | 0 | 0 |
Transfers into Level 3 | 0 | 1 |
Transfers out of Level 3 | 0 | 0 |
End of Period Balance | 10 | 8 |
Unrealized Gains (Losses) Included in Earnings | (2) | 0 |
Other Investments [Member] | Principal Investments Direct [Member] | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Beginning of Period Balance | 1 | 1 |
Gains (Losses) Included in Other Comprehensive Income | 0 | 0 |
Gains (Losses) Included in Earnings | 0 | 0 |
Purchases | 0 | 1 |
Sales | 0 | (1) |
Settlements | 0 | 0 |
Transfers Other | 0 | 0 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
End of Period Balance | 1 | 1 |
Unrealized Gains (Losses) Included in Earnings | 0 | 0 |
Interest Rate [Member] | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Beginning of Period Balance | 22 | 5 |
Gains (Losses) Included in Other Comprehensive Income | 0 | 0 |
Gains (Losses) Included in Earnings | 19 | 1 |
Purchases | 11 | 0 |
Sales | (1) | 0 |
Settlements | 0 | 0 |
Transfers Other | 0 | 0 |
Transfers into Level 3 | 55 | 1 |
Transfers out of Level 3 | (10) | (4) |
End of Period Balance | 96 | 3 |
Unrealized Gains (Losses) Included in Earnings | 0 | 0 |
Credit [Member] | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Beginning of Period Balance | 1 | 0 |
Gains (Losses) Included in Other Comprehensive Income | 0 | 0 |
Gains (Losses) Included in Earnings | (16) | 0 |
Purchases | 1 | (1) |
Sales | 0 | 0 |
Settlements | 0 | 0 |
Transfers Other | 0 | 0 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
End of Period Balance | (23) | (1) |
Unrealized Gains (Losses) Included in Earnings | 0 | 0 |
Other [Member] | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Beginning of Period Balance | 5 | 3 |
Gains (Losses) Included in Other Comprehensive Income | 0 | 0 |
Gains (Losses) Included in Earnings | 0 | 0 |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Settlements | 0 | 0 |
Transfers Other | 18 | 1 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
End of Period Balance | 23 | 4 |
Unrealized Gains (Losses) Included in Earnings | 0 | 0 |
Loans Held For Sale (Residential) [Member] | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Beginning of Period Balance | 0 | 0 |
Gains (Losses) Included in Other Comprehensive Income | 0 | 0 |
Gains (Losses) Included in Earnings | 0 | 0 |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Settlements | 0 | 0 |
Transfers Other | 10 | 1 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
End of Period Balance | 10 | 1 |
Unrealized Gains (Losses) Included in Earnings | 0 | 0 |
Loans, Net of Unearned Income (Residential) [Member] | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Beginning of Period Balance | 4 | 3 |
Gains (Losses) Included in Other Comprehensive Income | 0 | 0 |
Gains (Losses) Included in Earnings | 0 | 0 |
Purchases | 0 | 0 |
Sales | (1) | 0 |
Settlements | 0 | 0 |
Transfers Other | 0 | 0 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
End of Period Balance | 3 | 3 |
Unrealized Gains (Losses) Included in Earnings | $ 0 | $ 0 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Nonrecurring Basis (Details) - Nonrecurring [Member] - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 |
ASSETS MEASURED ON A NONRECURRING BASIS | |||
Impaired loans and leases | $ 33 | $ 76 | |
Accrued income and other assets | 64 | 169 | |
Total assets at fair value | 97 | $ 245 | |
Level 1 [Member] | |||
ASSETS MEASURED ON A NONRECURRING BASIS | |||
Impaired loans and leases | 0 | $ 0 | |
Accrued income and other assets | 0 | 0 | |
Total assets at fair value | 0 | 0 | |
Level 2 [Member] | |||
ASSETS MEASURED ON A NONRECURRING BASIS | |||
Impaired loans and leases | 0 | 0 | |
Accrued income and other assets | 0 | 118 | |
Total assets at fair value | 0 | 118 | |
Level 3 [Member] | |||
ASSETS MEASURED ON A NONRECURRING BASIS | |||
Impaired loans and leases | 33 | 76 | |
Accrued income and other assets | 64 | 51 | |
Total assets at fair value | $ 97 | $ 127 |
Fair Value Measurements - Quant
Fair Value Measurements - Quantitative Information about Level 3 Fair Value Measurements (Details) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Mar. 31, 2019USD ($) |
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Securities available for sale | $ 20,807,000,000 | $ 21,843,000,000 | |
Loans held for sale (residential) | 0 | ||
Derivative assets | 2,068,000,000 | 780,000,000 | |
Mortgage servicing assets excluded from OREO | 62,000,000 | 46,000,000 | |
Recurring [Member] | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Securities available for sale | 20,807,000,000 | 21,843,000,000 | |
Other investments | 84,000,000 | 90,000,000 | |
Loans held for sale (residential) | 152,000,000 | 140,000,000 | |
Derivative assets | 2,068,000,000 | 780,000,000 | |
Nonrecurring [Member] | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Impaired loans | 33,000,000 | $ 76,000,000 | |
Level 3 [Member] | Recurring [Member] | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Securities available for sale | 9,000,000 | 11,000,000 | |
Other investments | 11,000,000 | 13,000,000 | |
Loans held for sale (residential) | 10,000,000 | 0 | |
Derivative assets | 124,000,000 | 28,000,000 | |
Level 3 [Member] | Nonrecurring [Member] | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Impaired loans | 33,000,000 | $ 76,000,000 | |
Valuation Technique, Discounted Cash Flow [Member] | Level 3 [Member] | Recurring [Member] | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Other investments | $ 10,000,000 | ||
Valuation Technique, Discounted Cash Flow [Member] | Measurement Input, Discount Rate [Member] | Level 3 [Member] | Recurring [Member] | Minimum [Member] | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Other investments, measurement input | 0.1240 | 0.1391 | |
Valuation Technique, Discounted Cash Flow [Member] | Measurement Input, Discount Rate [Member] | Level 3 [Member] | Recurring [Member] | Maximum [Member] | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Other investments, measurement input | 0.1703 | 0.1724 | |
Valuation Technique, Discounted Cash Flow [Member] | Measurement Input, Discount Rate [Member] | Level 3 [Member] | Recurring [Member] | Weighted Average [Member] | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Other investments, measurement input | 0.1475 | 0.1561 | |
Valuation Technique, Discounted Cash Flow [Member] | Measurement Input, Discount Marketability [Member] | Level 3 [Member] | Recurring [Member] | Weighted Average [Member] | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Other investments, measurement input | 0.3000 | 0.3000 | |
Valuation Technique, Discounted Cash Flow [Member] | Measurement Input, Price Volatility [Member] | Level 3 [Member] | Recurring [Member] | Weighted Average [Member] | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Other investments, measurement input | 0.5100 | 0.4700 | |
Valuation, Market Comparable Pricing [Member] | Level 3 [Member] | Recurring [Member] | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Loans held for sale (residential) | $ 10,000,000 | ||
Loans, net of unearned income (residential) | $ 3,000,000 | ||
Valuation, Market Comparable Pricing [Member] | Measurement Input, Comparability Adjustment [Member] | Level 3 [Member] | Recurring [Member] | Minimum [Member] | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Loans held-for-sale (residential), measurement input | 1.0415 | ||
Loans, net of unearned income (residential), measurement input | 0.7900 | 0.7900 | |
Valuation, Market Comparable Pricing [Member] | Measurement Input, Comparability Adjustment [Member] | Level 3 [Member] | Recurring [Member] | Maximum [Member] | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Loans held-for-sale (residential), measurement input | 1.0701 | ||
Loans, net of unearned income (residential), measurement input | 0.9800 | 0.9800 | |
Valuation, Market Comparable Pricing [Member] | Measurement Input, Comparability Adjustment [Member] | Level 3 [Member] | Recurring [Member] | Weighted Average [Member] | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Loans held-for-sale (residential), measurement input | 1.0525 | ||
Loans, net of unearned income (residential), measurement input | 0.9107 | 0.9105 | |
Valuation, Fair Value Of Underlying Collateral [Member] | Level 3 [Member] | Nonrecurring [Member] | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Impaired loans | $ 33,000,000 | ||
Valuation, Fair Value Of Underlying Collateral [Member] | Measurement Input, Discount Rate [Member] | Level 3 [Member] | Nonrecurring [Member] | Minimum [Member] | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Impaired loans, measurement input | 0 | 0 | |
Valuation, Fair Value Of Underlying Collateral [Member] | Measurement Input, Discount Rate [Member] | Level 3 [Member] | Nonrecurring [Member] | Maximum [Member] | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Impaired loans, measurement input | 0.9000 | 0.6000 | |
Valuation, Fair Value Of Underlying Collateral [Member] | Measurement Input, Discount Rate [Member] | Level 3 [Member] | Nonrecurring [Member] | Weighted Average [Member] | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Impaired loans, measurement input | 0.2300 | 0.1000 | |
Valuation, Appraised Value [Member] | Level 3 [Member] | Nonrecurring [Member] | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
OREO and other Level 3 assets | $ 2,000,000 | ||
Interest Rate [Member] | Valuation Technique, Discounted Cash Flow [Member] | Level 3 [Member] | Recurring [Member] | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Derivative assets | $ 96,000,000 | ||
Interest Rate [Member] | Valuation Technique, Discounted Cash Flow [Member] | Measurement Input, Default Rate [Member] | Level 3 [Member] | Recurring [Member] | Minimum [Member] | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Derivative assets, measurement input | 0.0002 | 0.0002 | |
Interest Rate [Member] | Valuation Technique, Discounted Cash Flow [Member] | Measurement Input, Default Rate [Member] | Level 3 [Member] | Recurring [Member] | Maximum [Member] | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Derivative assets, measurement input | 1 | 1 | |
Interest Rate [Member] | Valuation Technique, Discounted Cash Flow [Member] | Measurement Input, Default Rate [Member] | Level 3 [Member] | Recurring [Member] | Weighted Average [Member] | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Derivative assets, measurement input | 0.1390 | 0.0540 | |
Interest Rate [Member] | Valuation Technique, Discounted Cash Flow [Member] | Measurement Input, Internal Risk Rating [Member] | Level 3 [Member] | Recurring [Member] | Minimum [Member] | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Derivative assets, measurement input | 1 | 1 | |
Interest Rate [Member] | Valuation Technique, Discounted Cash Flow [Member] | Measurement Input, Internal Risk Rating [Member] | Level 3 [Member] | Recurring [Member] | Maximum [Member] | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Derivative assets, measurement input | 19 | 19 | |
Interest Rate [Member] | Valuation Technique, Discounted Cash Flow [Member] | Measurement Input, Internal Risk Rating [Member] | Level 3 [Member] | Recurring [Member] | Weighted Average [Member] | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Derivative assets, measurement input | 9.178 | 9.168 | |
Interest Rate [Member] | Valuation Technique, Discounted Cash Flow [Member] | Measurement Input, Loss Given Default [Member] | Level 3 [Member] | Recurring [Member] | Minimum [Member] | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Derivative assets, measurement input | 0 | 0 | |
Interest Rate [Member] | Valuation Technique, Discounted Cash Flow [Member] | Measurement Input, Loss Given Default [Member] | Level 3 [Member] | Recurring [Member] | Maximum [Member] | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Derivative assets, measurement input | 1 | 1 | |
Interest Rate [Member] | Valuation Technique, Discounted Cash Flow [Member] | Measurement Input, Loss Given Default [Member] | Level 3 [Member] | Recurring [Member] | Weighted Average [Member] | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Derivative assets, measurement input | 0.476 | 0.492 | |
Credit [Member] | Valuation Technique, Discounted Cash Flow [Member] | Level 3 [Member] | Recurring [Member] | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Derivative assets | $ 5,000,000 | ||
Derivative liabilities | $ (28,000,000) | ||
Credit [Member] | Valuation Technique, Discounted Cash Flow [Member] | Measurement Input, Default Rate [Member] | Level 3 [Member] | Recurring [Member] | Minimum [Member] | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Derivative assets, measurement input | 0.0002 | 0.0002 | |
Derivative liabilities, measurement input | 0.0002 | 0.0002 | |
Credit [Member] | Valuation Technique, Discounted Cash Flow [Member] | Measurement Input, Default Rate [Member] | Level 3 [Member] | Recurring [Member] | Maximum [Member] | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Derivative assets, measurement input | 1 | 1 | |
Derivative liabilities, measurement input | 1 | 1 | |
Credit [Member] | Valuation Technique, Discounted Cash Flow [Member] | Measurement Input, Default Rate [Member] | Level 3 [Member] | Recurring [Member] | Weighted Average [Member] | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Derivative assets, measurement input | 0.1330 | 0.042 | |
Derivative liabilities, measurement input | 0.2519 | 0.1224 | |
Credit [Member] | Valuation Technique, Discounted Cash Flow [Member] | Measurement Input, Internal Risk Rating [Member] | Level 3 [Member] | Recurring [Member] | Minimum [Member] | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Derivative assets, measurement input | 1 | 1 | |
Derivative liabilities, measurement input | 1 | 1 | |
Credit [Member] | Valuation Technique, Discounted Cash Flow [Member] | Measurement Input, Internal Risk Rating [Member] | Level 3 [Member] | Recurring [Member] | Maximum [Member] | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Derivative assets, measurement input | 19 | 19 | |
Derivative liabilities, measurement input | 19 | 19 | |
Credit [Member] | Valuation Technique, Discounted Cash Flow [Member] | Measurement Input, Internal Risk Rating [Member] | Level 3 [Member] | Recurring [Member] | Weighted Average [Member] | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Derivative assets, measurement input | 10.14 | 10.13 | |
Derivative liabilities, measurement input | 7.76 | 8.06 | |
Credit [Member] | Valuation Technique, Discounted Cash Flow [Member] | Measurement Input, Loss Given Default [Member] | Level 3 [Member] | Recurring [Member] | Minimum [Member] | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Derivative assets, measurement input | 0 | 0 | |
Derivative liabilities, measurement input | 0 | 0 | |
Credit [Member] | Valuation Technique, Discounted Cash Flow [Member] | Measurement Input, Loss Given Default [Member] | Level 3 [Member] | Recurring [Member] | Maximum [Member] | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Derivative assets, measurement input | 1 | 1 | |
Derivative liabilities, measurement input | 1 | 1 | |
Credit [Member] | Valuation Technique, Discounted Cash Flow [Member] | Measurement Input, Loss Given Default [Member] | Level 3 [Member] | Recurring [Member] | Weighted Average [Member] | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Derivative assets, measurement input | 0.493 | 0.498 | |
Derivative liabilities, measurement input | 0.394 | 0.411 | |
Other [Member] | Valuation Technique, Discounted Cash Flow [Member] | Level 3 [Member] | Recurring [Member] | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Derivative assets | $ 23,000,000 | ||
Other [Member] | Valuation Technique, Discounted Cash Flow [Member] | Measurement Input, Loan Closing Rates [Member] | Level 3 [Member] | Recurring [Member] | Minimum [Member] | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Derivative assets, measurement input | 0.2734 | 0.3771 | |
Other [Member] | Valuation Technique, Discounted Cash Flow [Member] | Measurement Input, Loan Closing Rates [Member] | Level 3 [Member] | Recurring [Member] | Maximum [Member] | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Derivative assets, measurement input | 0.9931 | 0.9969 | |
Other [Member] | Valuation Technique, Discounted Cash Flow [Member] | Measurement Input, Loan Closing Rates [Member] | Level 3 [Member] | Recurring [Member] | Weighted Average [Member] | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Derivative assets, measurement input | 0.7408 | 0.7933 | |
Other Securities [Member] | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Securities available for sale | $ 9,000,000 | $ 11,000,000 | |
Other Securities [Member] | Recurring [Member] | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Securities available for sale | 9,000,000 | 11,000,000 | |
Other Securities [Member] | Level 3 [Member] | Recurring [Member] | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Securities available for sale | 9,000,000 | $ 11,000,000 | |
Other Securities [Member] | Valuation Technique, Discounted Cash Flow [Member] | Level 3 [Member] | Recurring [Member] | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Securities available for sale | $ 9,000,000 | ||
Other Securities [Member] | Valuation Technique, Discounted Cash Flow [Member] | Measurement Input, Discount Rate [Member] | Level 3 [Member] | Recurring [Member] | Weighted Average [Member] | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Securities available for sale, measurement input | 0.1482 | 0.1610 | |
Other Securities [Member] | Valuation Technique, Discounted Cash Flow [Member] | Measurement Input, Discount Marketability [Member] | Level 3 [Member] | Recurring [Member] | Weighted Average [Member] | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Securities available for sale, measurement input | 0.3000 | 0.3000 | |
Other Securities [Member] | Valuation Technique, Discounted Cash Flow [Member] | Measurement Input, Price Volatility [Member] | Level 3 [Member] | Recurring [Member] | Weighted Average [Member] | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Securities available for sale, measurement input | 0.4300 | 0.4300 | |
Principal Investments Direct [Member] | Recurring [Member] | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Other investments | $ 1,000,000 | $ 1,000,000 | |
Principal Investments Direct [Member] | Level 3 [Member] | Recurring [Member] | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Other investments | $ 1,000,000 |
Fair Value Measurements - Fai_3
Fair Value Measurements - Fair Value Disclosures of Financial Instruments (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | |
ASSETS | ||||
Trading account assets | $ 795,000,000 | $ 1,040,000,000 | ||
Loans held for sale | 0 | |||
Derivative assets | 2,068,000,000 | 780,000,000 | ||
Securities available for sale | 20,807,000,000 | 21,843,000,000 | ||
Amortized Cost | 9,638,000,000 | 10,067,000,000 | ||
Held-to-maturity securities | 10,012,000,000 | 10,116,000,000 | ||
Loans, net of allowance | 103,198,000,000 | 94,646,000,000 | ||
Loans held for sale | [1] | 2,143,000,000 | 1,334,000,000 | |
LIABILITIES | ||||
Long-term debt | 13,732,000,000 | $ 12,448,000,000 | ||
Carrying Amount [Member] | ||||
ASSETS | ||||
Trading account assets | 795,000,000 | $ 1,040,000,000 | ||
Other investments | 679,000,000 | 605,000,000 | ||
Loans, net of allowance | 3,000,000 | 4,000,000 | ||
Loans held for sale | 152,000,000 | 140,000,000 | ||
Securities available for sale | 20,807,000,000 | 21,843,000,000 | ||
Amortized Cost | 9,638,000,000 | 10,067,000,000 | ||
Loans, net of allowance | 101,836,000,000 | 93,742,000,000 | ||
Loans held for sale | 1,991,000,000 | 1,194,000,000 | ||
Cash and short-term investments | 4,938,000,000 | 2,004,000,000 | ||
LIABILITIES | ||||
Time deposits | 10,253,000,000 | 11,652,000,000 | ||
Short-term borrowings | 7,050,000,000 | 1,092,000,000 | ||
Long-term debt | 13,732,000,000 | 12,448,000,000 | ||
Deposits with no stated maturity | 105,051,000,000 | 100,218,000,000 | ||
Fair Value [Member] | ||||
ASSETS | ||||
Trading account assets | 795,000,000 | 1,040,000,000 | ||
Other investments | 679,000,000 | 605,000,000 | ||
Loans, net of allowance | 3,000,000 | 4,000,000 | ||
Loans held for sale | 152,000,000 | 140,000,000 | ||
Securities available for sale | 20,807,000,000 | 21,843,000,000 | ||
Held-to-maturity securities | 10,012,000,000 | 10,116,000,000 | ||
Loans, net of allowance | 99,535,000,000 | 92,641,000,000 | ||
Loans held for sale | 1,991,000,000 | 1,194,000,000 | ||
Cash and short-term investments | 4,938,000,000 | 2,004,000,000 | ||
LIABILITIES | ||||
Time deposits | 10,336,000,000 | 11,752,000,000 | ||
Short-term borrowings | 7,050,000,000 | 1,092,000,000 | ||
Long-term debt | 13,859,000,000 | 12,943,000,000 | ||
Deposits with no stated maturity | 105,051,000,000 | 100,218,000,000 | ||
Fair Value [Member] | Level 1 [Member] | ||||
ASSETS | ||||
Trading account assets | 0 | 0 | ||
Other investments | 0 | 0 | ||
Loans, net of allowance | 0 | 0 | ||
Loans held for sale | 0 | 0 | ||
Securities available for sale | 0 | 0 | ||
Held-to-maturity securities | 0 | 0 | ||
Loans, net of allowance | 0 | 0 | ||
Loans held for sale | 0 | 0 | ||
Cash and short-term investments | 4,938,000,000 | 2,004,000,000 | ||
LIABILITIES | ||||
Time deposits | 0 | 0 | ||
Short-term borrowings | 124,000,000 | 19,000,000 | ||
Long-term debt | 13,144,000,000 | 12,694,000,000 | ||
Deposits with no stated maturity | 0 | 0 | ||
Fair Value [Member] | Level 2 [Member] | ||||
ASSETS | ||||
Trading account assets | 795,000,000 | 1,040,000,000 | ||
Other investments | 0 | 0 | ||
Loans, net of allowance | 0 | 0 | ||
Loans held for sale | 142,000,000 | 140,000,000 | ||
Securities available for sale | 20,798,000,000 | 21,832,000,000 | ||
Held-to-maturity securities | 10,012,000,000 | 10,116,000,000 | ||
Loans, net of allowance | 0 | 0 | ||
Loans held for sale | 0 | 0 | ||
Cash and short-term investments | 0 | 0 | ||
LIABILITIES | ||||
Time deposits | 10,336,000,000 | 11,752,000,000 | ||
Short-term borrowings | 6,926,000,000 | 1,073,000,000 | ||
Long-term debt | 715,000,000 | 249,000,000 | ||
Deposits with no stated maturity | 105,051,000,000 | 100,218,000,000 | ||
Fair Value [Member] | Level 3 [Member] | ||||
ASSETS | ||||
Trading account assets | 0 | 0 | ||
Other investments | 606,000,000 | 528,000,000 | ||
Loans, net of allowance | 3,000,000 | 4,000,000 | ||
Loans held for sale | 10,000,000 | 0 | ||
Securities available for sale | 9,000,000 | 11,000,000 | ||
Held-to-maturity securities | 0 | 0 | ||
Loans, net of allowance | 99,535,000,000 | 92,641,000,000 | ||
Loans held for sale | 1,991,000,000 | 1,194,000,000 | ||
Cash and short-term investments | 0 | 0 | ||
LIABILITIES | ||||
Time deposits | 0 | 0 | ||
Short-term borrowings | 0 | 0 | ||
Long-term debt | 0 | 0 | ||
Deposits with no stated maturity | 0 | 0 | ||
Fair Value [Member] | Measured at NAV [Member] | ||||
ASSETS | ||||
Other investments | 73,000,000 | 77,000,000 | ||
Derivatives Designated as Hedging Instruments [Member] | Carrying Amount [Member] | ||||
ASSETS | ||||
Derivative assets | 60,000,000 | 65,000,000 | ||
LIABILITIES | ||||
Derivative liabilities | 0 | 4,000,000 | ||
Derivatives Designated as Hedging Instruments [Member] | Fair Value [Member] | ||||
ASSETS | ||||
Derivative assets | 60,000,000 | 65,000,000 | ||
Derivative assets, Netting Adjustment | (6,000,000) | (126,000,000) | ||
LIABILITIES | ||||
Derivative liabilities | 0 | 4,000,000 | ||
Derivative liabilities, Netting Adjustment | (3,000,000) | (16,000,000) | ||
Derivatives Designated as Hedging Instruments [Member] | Fair Value [Member] | Level 1 [Member] | ||||
ASSETS | ||||
Derivative assets | 0 | 0 | ||
LIABILITIES | ||||
Derivative liabilities | 0 | 0 | ||
Derivatives Designated as Hedging Instruments [Member] | Fair Value [Member] | Level 2 [Member] | ||||
ASSETS | ||||
Derivative assets | 66,000,000 | 191,000,000 | ||
LIABILITIES | ||||
Derivative liabilities | 3,000,000 | 20,000,000 | ||
Derivatives Designated as Hedging Instruments [Member] | Fair Value [Member] | Level 3 [Member] | ||||
ASSETS | ||||
Derivative assets | 0 | 0 | ||
LIABILITIES | ||||
Derivative liabilities | 0 | 0 | ||
Derivatives Not Designated as Hedging Instruments [Member] | Carrying Amount [Member] | ||||
ASSETS | ||||
Derivative assets | 2,008,000,000 | 715,000,000 | ||
LIABILITIES | ||||
Derivative liabilities | 649,000,000 | 194,000,000 | ||
Derivatives Not Designated as Hedging Instruments [Member] | Fair Value [Member] | ||||
ASSETS | ||||
Derivative assets | 2,008,000,000 | 715,000,000 | ||
Derivative assets, Netting Adjustment | (803,000,000) | (347,000,000) | ||
LIABILITIES | ||||
Derivative liabilities | 649,000,000 | 194,000,000 | ||
Derivative liabilities, Netting Adjustment | (592,000,000) | (319,000,000) | ||
Derivatives Not Designated as Hedging Instruments [Member] | Fair Value [Member] | Level 1 [Member] | ||||
ASSETS | ||||
Derivative assets | 124,000,000 | 49,000,000 | ||
LIABILITIES | ||||
Derivative liabilities | 117,000,000 | 43,000,000 | ||
Derivatives Not Designated as Hedging Instruments [Member] | Fair Value [Member] | Level 2 [Member] | ||||
ASSETS | ||||
Derivative assets | 2,563,000,000 | 985,000,000 | ||
LIABILITIES | ||||
Derivative liabilities | 1,096,000,000 | 461,000,000 | ||
Derivatives Not Designated as Hedging Instruments [Member] | Fair Value [Member] | Level 3 [Member] | ||||
ASSETS | ||||
Derivative assets | 124,000,000 | 28,000,000 | ||
LIABILITIES | ||||
Derivative liabilities | $ 28,000,000 | $ 9,000,000 | ||
[1] | Total loans held for sale include real estate — residential mortgage loans held for sale at fair value of $152 million at March 31, 2020 , and $140 million at December 31, 2019 . |
Securities - Details of Securit
Securities - Details of Securities (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
SECURITIES AVAILABLE FOR SALE | ||
Amortized Cost (a) | $ 20,126 | $ 21,692 |
Gross Unrealized Gains | 688 | 266 |
Gross Unrealized Losses | 7 | 115 |
Fair Value | 20,807 | 21,843 |
HELD-TO-MATURITY SECURITIES | ||
Amortized Cost (a) | 9,638 | 10,067 |
Gross Unrealized Gains | 374 | 107 |
Gross Unrealized Losses | 0 | 58 |
Fair Value | 10,012 | 10,116 |
Accrued interest | 241 | 244 |
US Treasury and Government [Member] | ||
SECURITIES AVAILABLE FOR SALE | ||
Amortized Cost (a) | 340 | 334 |
Gross Unrealized Gains | 1 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 341 | 334 |
US States and Political Subdivisions Debt Securities [Member] | ||
SECURITIES AVAILABLE FOR SALE | ||
Amortized Cost (a) | 4 | 4 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 4 | 4 |
Collateralized Mortgage Obligations [Member] | ||
SECURITIES AVAILABLE FOR SALE | ||
Amortized Cost (a) | 11,705 | 12,772 |
Gross Unrealized Gains | 342 | 82 |
Gross Unrealized Losses | 2 | 71 |
Fair Value | 12,045 | 12,783 |
HELD-TO-MATURITY SECURITIES | ||
Amortized Cost (a) | 5,354 | 5,692 |
Gross Unrealized Gains | 157 | 23 |
Gross Unrealized Losses | 0 | 49 |
Fair Value | 5,511 | 5,666 |
Residential Mortgage Backed Securities [Member] | ||
SECURITIES AVAILABLE FOR SALE | ||
Amortized Cost (a) | 1,472 | 1,677 |
Gross Unrealized Gains | 67 | 41 |
Gross Unrealized Losses | 0 | 4 |
Fair Value | 1,539 | 1,714 |
HELD-TO-MATURITY SECURITIES | ||
Amortized Cost (a) | 390 | 409 |
Gross Unrealized Gains | 19 | 6 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 409 | 415 |
Asset-backed Securities [Member] | ||
HELD-TO-MATURITY SECURITIES | ||
Amortized Cost (a) | 11 | 11 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 11 | 11 |
Other Securities [Member] | ||
SECURITIES AVAILABLE FOR SALE | ||
Amortized Cost (a) | 8 | 7 |
Gross Unrealized Gains | 1 | 4 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 9 | 11 |
HELD-TO-MATURITY SECURITIES | ||
Amortized Cost (a) | 15 | 15 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 15 | 15 |
Other Mortgage-Backed Securities [Member] | Commercial Mortgage Backed Securities [Member] | ||
SECURITIES AVAILABLE FOR SALE | ||
Amortized Cost (a) | 6,597 | 6,898 |
Gross Unrealized Gains | 277 | 139 |
Gross Unrealized Losses | 5 | 40 |
Fair Value | 6,869 | 6,997 |
HELD-TO-MATURITY SECURITIES | ||
Amortized Cost (a) | 3,868 | 3,940 |
Gross Unrealized Gains | 198 | 78 |
Gross Unrealized Losses | 0 | 9 |
Fair Value | 4,066 | $ 4,009 |
Securities Available for Sale [Member] | ||
HELD-TO-MATURITY SECURITIES | ||
Accrued interest | 42 | |
Securities Held-to-maturity [Member] | ||
HELD-TO-MATURITY SECURITIES | ||
Accrued interest | $ 19 |
Securities - Available for Sale
Securities - Available for Sale Securities (Unrealized Loss Position) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Held-to-maturity securities: | ||
Temporarily impaired securities, fair value, less than 12 months | $ 1,247 | $ 7,250 |
Temporarily impaired securities, gross unrealized losses, less than 12 months | 5 | 60 |
Temporarily impaired securities, fair value, 12 months or longer | 483 | 7,382 |
Temporarily impaired securities, gross unrealized losses, 12 months or longer | 2 | 113 |
Temporarily impaired securities, fair value | 1,730 | 14,632 |
Temporarily impaired securities, gross unrealized losses | 7 | 173 |
Collateralized Mortgage Obligations [Member] | ||
Securities available for sale: | ||
Fair value, less than 12 months | 135 | 3,432 |
Gross unrealized losses, less than 12 months | 1,000,000 | 20 |
Fair value, 12 months or longer | 416 | 3,221 |
Gross unrealized losses, 12 months or longer | 2 | 51 |
Fair value | 551 | 6,653 |
Gross unrealized losses | 2 | 71 |
Held-to-maturity securities: | ||
Fair value, less than 12 months | 8 | 1,626 |
Gross unrealized losses, less than 12 months | 1,000,000 | 14 |
Fair value, 12 months or longer | 60 | 2,289 |
Gross unrealized losses, 12 months or longer | 1,000,000 | 35 |
Fair value | 68 | 3,915 |
Gross unrealized losses | 0 | 49 |
Commercial Mortgage Backed Securities [Member] | ||
Securities available for sale: | ||
Fair value, less than 12 months | 1,083 | 1,541 |
Gross unrealized losses, less than 12 months | 5 | 17 |
Fair value, 12 months or longer | 0 | 1,213 |
Gross unrealized losses, 12 months or longer | 0 | 23 |
Fair value | 1,083 | 2,754 |
Gross unrealized losses | 40 | |
Held-to-maturity securities: | ||
Fair value, less than 12 months | 518 | |
Gross unrealized losses, less than 12 months | 9 | |
Fair value, 12 months or longer | 0 | |
Gross unrealized losses, 12 months or longer | 0 | |
Fair value | 518 | |
Gross unrealized losses | 9 | |
Asset-backed Securities [Member] | ||
Held-to-maturity securities: | ||
Fair value, less than 12 months | 2 | 11 |
Gross unrealized losses, less than 12 months | 1,000,000 | 1,000,000 |
Fair value, 12 months or longer | 0 | 0 |
Gross unrealized losses, 12 months or longer | 0 | 0 |
Fair value | 2 | 11 |
Gross unrealized losses | 0 | 0 |
Other Securities [Member] | ||
Securities available for sale: | ||
Fair value, less than 12 months | 1 | |
Gross unrealized losses, less than 12 months | 1,000,000 | |
Fair value, 12 months or longer | 0 | |
Gross unrealized losses, 12 months or longer | 0 | |
Fair value | 1 | |
Gross unrealized losses | 0 | |
Held-to-maturity securities: | ||
Fair value, less than 12 months | 8 | 3 |
Gross unrealized losses, less than 12 months | 1,000,000 | 1,000,000 |
Fair value, 12 months or longer | 0 | 0 |
Gross unrealized losses, 12 months or longer | 0 | 0 |
Fair value | 8 | 3 |
Gross unrealized losses | 0 | 0 |
US Treasury and Government [Member] | ||
Securities available for sale: | ||
Fair value, less than 12 months | 30 | |
Gross unrealized losses, less than 12 months | 1,000,000 | |
Fair value, 12 months or longer | 30 | |
Gross unrealized losses, 12 months or longer | 1,000,000 | |
Fair value | 60 | |
Gross unrealized losses | 0 | |
Other Mortgage-Backed Securities [Member] | Residential Mortgage Backed Securities [Member] | ||
Securities available for sale: | ||
Fair value, less than 12 months | 10 | 33 |
Gross unrealized losses, less than 12 months | 1,000,000 | 1,000,000 |
Fair value, 12 months or longer | 7 | 629 |
Gross unrealized losses, 12 months or longer | 1,000,000 | 4 |
Fair value | 17 | 662 |
Gross unrealized losses | 0 | 4 |
Held-to-maturity securities: | ||
Fair value, less than 12 months | 56 | |
Gross unrealized losses, less than 12 months | 1,000,000 | |
Fair value, 12 months or longer | 0 | |
Gross unrealized losses, 12 months or longer | 0 | |
Fair value | 56 | |
Gross unrealized losses | $ 0 | |
Other Mortgage-Backed Securities [Member] | Commercial Mortgage Backed Securities [Member] | ||
Securities available for sale: | ||
Gross unrealized losses | $ 5 |
Securities - Additional Informa
Securities - Additional Information (Details) $ in Billions | Mar. 31, 2020USD ($) |
Investments, Debt and Equity Securities [Abstract] | |
Loans pledged as collateral | $ 8.4 |
Securities - Securities by Matu
Securities - Securities by Maturity (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Investments, Debt and Equity Securities [Abstract] | ||
Amortized Cost of Securities Available for sale, Due in one year or less | $ 571 | |
Amortized Cost of Securities Available for sale, Due after one through five years | 14,660 | |
Amortized Cost of Securities Available for sale, Due after five through ten years | 4,893 | |
Amortized Cost of Securities Available for sale, Due after ten years | 2 | |
Amortized Cost (a) | 20,126 | $ 21,692 |
Fair Value of Securities Available for sale, Due in one year or less | 577 | |
Fair Value of Securities Available for sale, Due after one through five years | 15,101 | |
Fair Value of Securities Available for sale, Due after five through ten years | 5,127 | |
Fair Value of Securities Available for sale, Due after ten years | 2 | |
Total Fair Value of Securities Available For Sale | 20,807 | 21,843 |
Amortized Cost of Held-to-Maturity Securities, Due in one year or less | 60 | |
Amortized Cost of Held-to-Maturity Securities, Due after one through five years | 6,690 | |
Amortized Cost of Held-to-Maturity Securities, Due after five through ten years | 2,888 | |
Amortized Cost of Held-to-Maturity Securities, Due after ten years | 0 | |
Amortized Cost (a) | 9,638 | 10,067 |
Fair Value of Held-to-Maturity Securities, Due in one year or less | 61 | |
Fair Value of Held-to-Maturity Securities, Due after one through five years | 6,881 | |
Fair Value of Held-to-Maturity Securities, Due after five through ten years | 3,070 | |
Fair Value of Held-to-Maturity Securities, Due after ten years | 0 | |
Total Fair Value of Held-to-Maturity Securities | $ 10,012 | $ 10,116 |
Derivatives and Hedging Activ_3
Derivatives and Hedging Activities - Additional Information (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2020USD ($)derivativerating | Dec. 31, 2019USD ($)rating | |
Credit Derivatives [Line Items] | ||
Derivative assets after effects of bilateral collateral and master netting agreements | $ 60 | |
Derivative liabilities after effects of bilateral collateral and master netting agreements | 1 | |
Derivative assets not designated as hedging instruments after effects of bilateral collateral and master netting agreements, and a reserve for potential future losses | 2,100 | |
Derivative liabilities not designated as hedging instruments after effects of bilateral collateral and master netting agreements, and a reserve for potential future losses | 649 | |
Reclassify of after-tax net losses on derivative instruments from AOCI | $ 242 | |
Length of time hedge in cash flow hedge | 12 months | |
Reclassification of net losses related to terminated cash flow hedges from AOCI to income | $ (86) | |
Maximum length of time over which forecasted transactions are hedged, years | 9 years | |
Cash collateral netted against derivative assets | $ 370 | $ 207 |
Collateral netted against derivative liabilities | 156 | 69 |
Gross exposure on derivatives, after taking into account the effects of bilateral collateral and master netting agreements | 966 | |
Net exposure on derivatives, after taking into account, the effects of bilateral collateral and master netting agreements | 327 | |
Over-collateralization on derivatives to broker-dealers and banks, after the application of master netting agreements and collateral | 323 | |
Additional collateral held in the form of securities | 4 | |
Default reserve associated with uncollateralized contracts | 86 | |
Gross exposure on derivatives after taking into account effects of master netting agreements | 1,900 | |
Net exposure on derivatives with clients after application of master netting agreements collateral and related reserve | 1,700 | |
Net liability position totaled | 17 | $ 9 |
Banking Subsidiary [Member] | ||
Credit Derivatives [Line Items] | ||
Net liability position totaled | 106 | |
Derivative assets included in net liability position | 61 | |
Derivative liabilities included in net liability position | (167) | |
Cash and securities collateral posted | $ 101 | |
Number of credit risk derivatives held | derivative | 0 | |
Banking Subsidiary [Member] | Unsecured Debt [Member] | ||
Credit Derivatives [Line Items] | ||
Number of ratings above noninvestment | rating | 4 | 4 |
Banking Subsidiary [Member] | Maximum [Member] | Unsecured Debt [Member] | ||
Credit Derivatives [Line Items] | ||
Payments to terminate contracts (less than for the $1 million) | $ 3 | $ 3 |
Derivatives and Hedging Activ_4
Derivatives and Hedging Activities - Fair Values, Volume of Activity and Gain (Loss) Information Related to Derivative Instruments (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Mar. 31, 2019 |
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 120,402 | $ 126,077 |
Derivative assets, netting adjustments | (809) | (473) |
Derivative Assets, net | 2,065 | 778 |
Derivative liabilities, netting adjustments | (595) | (335) |
Derivative Liabilities, net | 649 | 156 |
Derivatives Not Designated as Hedging Instruments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 94,598 | 86,869 |
Derivative Assets | 2,811 | 1,062 |
Derivative Liabilities | 1,241 | 513 |
Interest Rate [Member] | Derivatives Designated as Hedging Instruments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 25,804 | 39,208 |
Derivative Assets | 66 | 191 |
Derivative Liabilities | 3 | 20 |
Interest Rate [Member] | Derivatives Not Designated as Hedging Instruments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 77,335 | 71,209 |
Derivative Assets | 1,875 | 772 |
Derivative Liabilities | 326 | 233 |
Foreign Exchange [Member] | Derivatives Not Designated as Hedging Instruments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 6,340 | 6,572 |
Derivative Assets | 164 | 67 |
Derivative Liabilities | 157 | 60 |
Commodity [Member] | Derivatives Not Designated as Hedging Instruments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 4,556 | 5,324 |
Derivative Assets | 704 | 208 |
Derivative Liabilities | 690 | 200 |
Credit [Member] | Derivatives Not Designated as Hedging Instruments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 959 | 427 |
Derivative Assets | 11 | 1 |
Derivative Liabilities | 28 | 10 |
Other [Member] | Derivatives Not Designated as Hedging Instruments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 5,408 | 3,337 |
Derivative Assets | 57 | 14 |
Derivative Liabilities | 40 | 10 |
Net Derivatives [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 120,402 | 126,077 |
Derivative Assets, net | 2,068 | 780 |
Derivative Liabilities, net | 649 | 198 |
Counterparty And Cash Collateral Netting [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 0 | 0 |
Derivative Assets, net | (3) | (2) |
Derivative Liabilities, net | $ 0 | $ (42) |
Derivatives and Hedging Activ_5
Derivatives and Hedging Activities - Cumulative Basis Adjustments on Fair Value Hedges (Details) - Long-term Debt [Member] - Interest Rate [Member] - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Derivatives, Fair Value [Line Items] | ||
Carrying amount of hedged item | $ 7,774 | $ 8,408 |
Hedge accounting basis adjustment | 533 | 240 |
Derivatives Not Designated as Hedging Instruments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Hedge accounting basis adjustment | $ (9) | $ (9) |
Derivatives and Hedging Activ_6
Derivatives and Hedging Activities - Effect of Fair Value and Cash Flow Hedges on Income (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Interest expense — Long-term debt | $ (90) | $ (120) | |
Interest income — Loans | 1,026 | 1,066 | |
Deposits | (169) | (202) | |
Other income | [1] | (88) | 10 |
Interest Rate [Member] | Interest Expense, Long-Term Debt [Member] | Fair Value Hedging [Member] | |||
Gain (Loss) on Fair Value Hedges Recognized in Earnings [Abstract] | |||
Recognized on hedged items | (294) | (93) | |
Recognized on derivatives designated as hedging instruments | 311 | 82 | |
Net income (expense) recognized on fair value hedges | 17 | (11) | |
Interest Rate [Member] | Interest Expense, Long-Term Debt [Member] | Cash Flow Hedging [Member] | |||
Cash Flow Hedges Derivative Instruments at Fair Value, Net [Abstract] | |||
Realized gains (losses) (pre-tax) reclassified from AOCI into net income | (1) | (1) | |
Net income (expense) recognized on cash flow hedges | (1) | (1) | |
Interest Rate [Member] | Interest Income [Member] | Fair Value Hedging [Member] | |||
Gain (Loss) on Fair Value Hedges Recognized in Earnings [Abstract] | |||
Recognized on hedged items | 0 | 0 | |
Recognized on derivatives designated as hedging instruments | 0 | 0 | |
Net income (expense) recognized on fair value hedges | 0 | 0 | |
Interest Rate [Member] | Interest Income [Member] | Cash Flow Hedging [Member] | |||
Cash Flow Hedges Derivative Instruments at Fair Value, Net [Abstract] | |||
Realized gains (losses) (pre-tax) reclassified from AOCI into net income | 34 | (24) | |
Net income (expense) recognized on cash flow hedges | 34 | (24) | |
Interest Rate [Member] | Interest Expense, Deposits [Member] | Fair Value Hedging [Member] | |||
Gain (Loss) on Fair Value Hedges Recognized in Earnings [Abstract] | |||
Recognized on hedged items | 0 | 0 | |
Recognized on derivatives designated as hedging instruments | 0 | 0 | |
Net income (expense) recognized on fair value hedges | 0 | 0 | |
Interest Rate [Member] | Interest Expense, Deposits [Member] | Cash Flow Hedging [Member] | |||
Cash Flow Hedges Derivative Instruments at Fair Value, Net [Abstract] | |||
Realized gains (losses) (pre-tax) reclassified from AOCI into net income | 0 | 0 | |
Net income (expense) recognized on cash flow hedges | 0 | 0 | |
Interest Rate [Member] | Other Income [Member] | Fair Value Hedging [Member] | |||
Gain (Loss) on Fair Value Hedges Recognized in Earnings [Abstract] | |||
Recognized on hedged items | 0 | 0 | |
Recognized on derivatives designated as hedging instruments | 0 | 0 | |
Net income (expense) recognized on fair value hedges | 0 | 0 | |
Interest Rate [Member] | Other Income [Member] | Cash Flow Hedging [Member] | |||
Cash Flow Hedges Derivative Instruments at Fair Value, Net [Abstract] | |||
Realized gains (losses) (pre-tax) reclassified from AOCI into net income | 0 | 0 | |
Net income (expense) recognized on cash flow hedges | $ 0 | $ 0 | |
[1] | For the three months ended March 31, 2020 , net securities gains (losses) totaled $4 million . For the three months ended March 31, 2019 , net securities gains (losses) totaled less than $1 million . For the three months ended March 31, 2020 , and March 31, 2019 , Key did no t have any impairment losses related to securities. |
Derivatives and Hedging Activ_7
Derivatives and Hedging Activities - Derivative Instrument Cash Flow Hedge Earning Recognized by Income Statement Location (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Derivatives, Fair Value [Line Items] | ||
Net Gains (Losses) Recognized in OCI | $ 527 | $ 106 |
Net Gains (Losses) Reclassified From OCI Into Income | 33 | (25) |
Interest Income [Member] | Interest Rate [Member] | Cash Flow Hedges [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Net Gains (Losses) Recognized in OCI | 562 | 115 |
Net Gains (Losses) Reclassified From OCI Into Income | 34 | (24) |
Interest Expense [Member] | Interest Rate [Member] | Cash Flow Hedges [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Net Gains (Losses) Recognized in OCI | (5) | (1) |
Net Gains (Losses) Reclassified From OCI Into Income | (1) | (1) |
Underwriting Discounts Fees And Commissions [Member] | Interest Rate [Member] | Cash Flow Hedges [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Net Gains (Losses) Recognized in OCI | (30) | (5) |
Net Gains (Losses) Reclassified From OCI Into Income | $ 0 | 0 |
Other Income [Member] | Foreign Exchange [Member] | Net Investment Hedges [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Net Gains (Losses) Recognized in OCI | (3) | |
Net Gains (Losses) Reclassified From OCI Into Income | $ 0 |
Derivatives and Hedging Activ_8
Derivatives and Hedging Activities - Pre-Tax Net Gains (Losses) on Derivatives Not Designated as Hedging Instruments (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total net gains (losses) | $ 14 | $ 12 |
Interest Rate [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total net gains (losses) | 2 | 6 |
Foreign Exchange [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total net gains (losses) | 12 | 10 |
Commodity [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total net gains (losses) | 2 | 1 |
Credit [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total net gains (losses) | (15) | (6) |
Other Credit Derivatives [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total net gains (losses) | 13 | 1 |
Corporate Services Income [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total net gains (losses) | 9 | 20 |
Corporate Services Income [Member] | Interest Rate [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total net gains (losses) | 11 | 8 |
Corporate Services Income [Member] | Foreign Exchange [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total net gains (losses) | 12 | 10 |
Corporate Services Income [Member] | Commodity [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total net gains (losses) | 2 | 1 |
Corporate Services Income [Member] | Credit [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total net gains (losses) | (16) | 1 |
Corporate Services Income [Member] | Other Credit Derivatives [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total net gains (losses) | 0 | 0 |
Consumer Mortgage Income [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total net gains (losses) | 4 | 0 |
Consumer Mortgage Income [Member] | Interest Rate [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total net gains (losses) | 0 | 0 |
Consumer Mortgage Income [Member] | Foreign Exchange [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total net gains (losses) | 0 | 0 |
Consumer Mortgage Income [Member] | Commodity [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total net gains (losses) | 0 | 0 |
Consumer Mortgage Income [Member] | Credit [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total net gains (losses) | 0 | 0 |
Consumer Mortgage Income [Member] | Other Credit Derivatives [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total net gains (losses) | 4 | 0 |
Other Income [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total net gains (losses) | 1 | (8) |
Other Income [Member] | Interest Rate [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total net gains (losses) | (9) | (2) |
Other Income [Member] | Foreign Exchange [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total net gains (losses) | 0 | 0 |
Other Income [Member] | Commodity [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total net gains (losses) | 0 | 0 |
Other Income [Member] | Credit [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total net gains (losses) | 1 | (7) |
Other Income [Member] | Other Credit Derivatives [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total net gains (losses) | $ 9 | $ 1 |
Derivatives and Hedging Activ_9
Derivatives and Hedging Activities - Fair Value of Derivative Assets by Type (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Credit Derivatives [Line Items] | ||
Derivative assets before collateral | $ 2,438 | $ 987 |
Less: Related collateral | 370 | 207 |
Total derivative assets | 2,068 | 780 |
Interest Rate [Member] | ||
Credit Derivatives [Line Items] | ||
Derivative assets before collateral | 1,744 | 848 |
Foreign Exchange [Member] | ||
Credit Derivatives [Line Items] | ||
Derivative assets before collateral | 70 | 30 |
Commodity [Member] | ||
Credit Derivatives [Line Items] | ||
Derivative assets before collateral | 559 | 95 |
Credit [Member] | ||
Credit Derivatives [Line Items] | ||
Derivative assets before collateral | 8 | 0 |
Other [Member] | ||
Credit Derivatives [Line Items] | ||
Derivative assets before collateral | $ 57 | $ 14 |
Derivatives and Hedging Acti_10
Derivatives and Hedging Activities - Credit Derivatives Sold and Held (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Credit Derivatives [Line Items] | ||
Notional Amount | $ 358 | $ 134 |
Average Term (Years) | 0 years | 0 years |
Payment / Performance Risk | 0.00% | 0.00% |
Other [Member] | ||
Credit Derivatives [Line Items] | ||
Notional Amount | $ 358 | $ 134 |
Average Term (Years) | 14 years 7 months 13 days | 14 years 3 months 18 days |
Payment / Performance Risk | 27.09% | 14.56% |
Derivatives and Hedging Acti_11
Derivatives and Hedging Activities - Credit Risk Contingent Feature (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Credit Derivatives [Line Items] | ||
Additional collateral aggregate fair value | $ 4 | |
Standard & Poor's, A- Rating [Member] | One Rating Downgrade [Member] | ||
Credit Derivatives [Line Items] | ||
Additional collateral aggregate fair value | 1 | $ 1 |
Standard & Poor's, A- Rating [Member] | Two Rating Downgrade [Member] | ||
Credit Derivatives [Line Items] | ||
Additional collateral aggregate fair value | 1 | 1 |
Standard & Poor's, A- Rating [Member] | Three Rating Downgrade [Member] | ||
Credit Derivatives [Line Items] | ||
Additional collateral aggregate fair value | 1 | 1 |
Moody's, A3 Rating [Member] | One Rating Downgrade [Member] | ||
Credit Derivatives [Line Items] | ||
Additional collateral aggregate fair value | 1 | 1 |
Moody's, A3 Rating [Member] | Two Rating Downgrade [Member] | ||
Credit Derivatives [Line Items] | ||
Additional collateral aggregate fair value | 1 | 1 |
Moody's, A3 Rating [Member] | Three Rating Downgrade [Member] | ||
Credit Derivatives [Line Items] | ||
Additional collateral aggregate fair value | $ 1 | $ 1 |
Mortgage Servicing Assets - Cha
Mortgage Servicing Assets - Changes in Carrying Amount of Mortgage Servicing Assets (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Commercial Mortgage Backed Securities [Member] | ||
Servicing Asset at Amortized Cost, Balance [Roll Forward] | ||
Balance at beginning of period | $ 539 | $ 502 |
Servicing retained from loan sales | 24 | 18 |
Purchases | 11 | 6 |
Amortization | (29) | (29) |
Temporary impairments | (2) | 0 |
Balance at end of period | 543 | 497 |
Fair value at end of period | 655 | 727 |
Residential Mortgage Backed Securities [Member] | ||
Servicing Asset at Amortized Cost, Balance [Roll Forward] | ||
Balance at beginning of period | 46 | 37 |
Servicing retained from loan sales | 5 | 2 |
Purchases | 0 | 0 |
Amortization | (2) | (1) |
Temporary impairments | (9) | 0 |
Balance at end of period | 40 | 38 |
Fair value at end of period | $ 41 | $ 50 |
Mortgage Servicing Assets - Sch
Mortgage Servicing Assets - Schedule of Range and Weighted-Average of Significant Unobservable Inputs (Details) - Discounted Cash Flow [Member] - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Commercial Mortgage Backed Securities [Member] | Minimum [Member] | ||
Servicing Assets at Fair Value [Line Items] | ||
Expected defaults | 0.97% | 1.00% |
Residual cash flows discount rate | 7.00% | 7.00% |
Escrow earn rate | 1.20% | 2.22% |
Loan assumption rate | 0.01% | 0.00% |
Commercial Mortgage Backed Securities [Member] | Maximum [Member] | ||
Servicing Assets at Fair Value [Line Items] | ||
Expected defaults | 2.00% | 2.00% |
Residual cash flows discount rate | 11.42% | 15.00% |
Escrow earn rate | 1.92% | 3.70% |
Loan assumption rate | 3.37% | 3.18% |
Commercial Mortgage Backed Securities [Member] | Weighted Average [Member] | ||
Servicing Assets at Fair Value [Line Items] | ||
Expected defaults | 1.14% | 1.14% |
Residual cash flows discount rate | 9.24% | 9.19% |
Escrow earn rate | 1.67% | 2.98% |
Loan assumption rate | 1.32% | 1.39% |
Residential Mortgage Backed Securities [Member] | Minimum [Member] | ||
Servicing Assets at Fair Value [Line Items] | ||
Expected defaults | 7.50% | 7.50% |
Prepayment speed | 10.50% | 9.32% |
Servicing cost | $ 62,000,000 | $ 62,000,000 |
Residential Mortgage Backed Securities [Member] | Maximum [Member] | ||
Servicing Assets at Fair Value [Line Items] | ||
Expected defaults | 8.50% | 10.00% |
Prepayment speed | 55.60% | 58.76% |
Servicing cost | $ 8,375,000,000 | $ 4,375,000,000 |
Residential Mortgage Backed Securities [Member] | Weighted Average [Member] | ||
Servicing Assets at Fair Value [Line Items] | ||
Expected defaults | 7.52% | 7.54% |
Prepayment speed | 17.16% | 9.93% |
Servicing cost | $ 68,140,000 | $ 68,230,000 |
Mortgage Servicing Assets - Add
Mortgage Servicing Assets - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Commercial Mortgage Backed Securities [Member] | ||
Servicing Assets at Fair Value [Line Items] | ||
Contractual fee income from servicing commercial mortgage loans | $ 50 | $ 46 |
Amortization of servicing commercial mortgage loans | 32 | 29 |
Residential Mortgage Backed Securities [Member] | ||
Servicing Assets at Fair Value [Line Items] | ||
Contractual fee income from servicing commercial mortgage loans | 6 | 4 |
Amortization of servicing commercial mortgage loans | $ 2 | $ 1 |
Leases - Components of Equipmen
Leases - Components of Equipment Leasing Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Sales-type and direct financing leases | ||
Interest income on lease receivable | $ 28 | $ 30 |
Interest income related to accretion of unguaranteed residual asset | 3 | 3 |
Interest income on deferred fees and costs | 0 | 0 |
Total sales-type and direct financing lease income | 31 | 33 |
Operating leases | ||
Operating lease income related to lease payments | 34 | 33 |
Other operating leasing gains | (4) | 4 |
Total operating lease income and other leasing gains | 30 | 37 |
Total lease income | $ 61 | $ 70 |
Variable Interest Entities - Ad
Variable Interest Entities - Additional Information (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Variable Interest Entity [Line Items] | |||
Investments in operating partnerships | $ 280,000,000 | $ 282,000,000 | |
Liabilities related to investments in qualified affordable housing projects | 1,000,000 | 1,000,000 | |
VIE, assets that can only be used to settle obligations | 156,197,000,000 | $ 144,988,000,000 | |
VIE, liabilities | 138,786,000,000 | 127,950,000,000 | |
Recurring [Member] | |||
Variable Interest Entity [Line Items] | |||
Other investments | 84,000,000 | 90,000,000 | |
LIHTC Investments [Member] | |||
Variable Interest Entity [Line Items] | |||
Investments in operating partnerships | 6,401,000,000 | 6,405,000,000 | |
Liabilities related to investments in qualified affordable housing projects | 2,534,000,000 | 2,526,000,000 | |
Tax credit of investment | 45,000,000 | ||
LIHTC Investments [Member] | Qualified affordable housing projects investment [Member] | |||
Variable Interest Entity [Line Items] | |||
Liabilities related to investments in qualified affordable housing projects | 504,000,000 | 546,000,000 | |
LIHTC Investments [Member] | Accrued Income And Other Assets [Member] | |||
Variable Interest Entity [Line Items] | |||
Investments in operating partnerships | 1,400,000,000 | 1,500,000,000 | |
LIHTC Investments [Member] | Investments [Member] | |||
Variable Interest Entity [Line Items] | |||
Amortization of investment | 49,000,000 | $ 46,000,000 | |
Tax credit of investment | 46,000,000 | ||
Guaranteed Funds [Member] | Investments [Member] | |||
Variable Interest Entity [Line Items] | |||
VIE, assets that can only be used to settle obligations | 0 | 0 | |
VIE, liabilities | 0 | 0 | |
Measured at NAV [Member] | Recurring [Member] | Principal Investments Indirect [Member] | |||
Variable Interest Entity [Line Items] | |||
Other investments | $ 64,000,000 | $ 68,000,000 |
Variable Interest Entities - Su
Variable Interest Entities - Summary of Variable Interest Entities Information (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 |
Variable Interest Entity [Line Items] | |||
Total Assets | $ 280 | $ 282 | |
Total Liabilities | 1 | $ 1 | |
LIHTC Investments [Member] | |||
Variable Interest Entity [Line Items] | |||
Total Assets | 6,401 | $ 6,405 | |
Total Liabilities | 2,534 | 2,526 | |
Maximum Exposure to Loss | 1,823 | 1,846 | |
KCC Indirect Investments [Member] | |||
Variable Interest Entity [Line Items] | |||
Total Assets | 12,221 | 12,954 | |
Total Liabilities | 182 | 205 | |
Maximum Exposure to Loss | $ 84 | $ 89 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Tax Contingency [Line Items] | ||
Total income tax expense (benefit), rate | 13.40% | 17.00% |
Combined federal and state statutory tax rate | 23.70% | |
Federal deferred tax asset | $ (273,000,000) | $ (89,000,000) |
Valuation allowance | 0 | |
Key Corp [Member] | ||
Income Tax Contingency [Line Items] | ||
Unrecognized tax benefits | 18,000,000 | |
First Niagara Bank, N.A. [Member] | ||
Income Tax Contingency [Line Items] | ||
Allocated bad debt deductions | $ 92,000,000 |
Acquisitions and Discontinued_2
Acquisitions and Discontinued Operations - Additional Information (Details) $ in Millions | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Apr. 03, 2019Branch | Mar. 31, 2019USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Goodwill | $ 2,664 | $ 2,664 | ||
Discontinued Operations [Member] | Government Guaranteed Loans [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Loans included in divestiture | 821 | $ 865 | ||
Laurel Road Bank [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Number of bank branches excluded from transaction | Branch | 3 | |||
Intangible assets acquired | 37 | |||
Goodwill | $ 148 |
Securities Financing Activiti_3
Securities Financing Activities - Summarized Securities Financing Agreements (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Securities Financing Transaction [Line Items] | ||
Reverse repurchase agreements | $ 0 | $ 0 |
Total | 0 | 0 |
Repurchase agreements | 0 | 0 |
Total | 0 | 0 |
Counterparty And Cash Collateral Netting [Member] | ||
Securities Financing Transaction [Line Items] | ||
Reverse repurchase agreements | 0 | 0 |
Total | 0 | 0 |
Repurchase agreements | (188) | (180) |
Total | (188) | (180) |
Federal Agency CMOs [Member] | ||
Securities Financing Transaction [Line Items] | ||
Assets pledged as collateral | 396 | |
Liabilities pledged as collateral | 188 | |
Gross Amounts Presented In Balance Sheets [Member] | ||
Securities Financing Transaction [Line Items] | ||
Reverse repurchase agreements | 4 | 5 |
Total | 4 | 5 |
Repurchase agreements | 194 | 187 |
Total | 194 | 187 |
Netting Adjustments [Member] | ||
Securities Financing Transaction [Line Items] | ||
Reverse repurchase agreements | (4) | (5) |
Total | (4) | (5) |
Repurchase agreements | (6) | (7) |
Total | $ (6) | $ (7) |
Employee Benefits - Net Pension
Employee Benefits - Net Pension Cost (Benefit) for All Funded and Unfunded Plans (Details) - Pension Plans [Member] - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Interest cost on PBO | $ 9 | $ 11 |
Expected return on plan assets | (10) | (12) |
Amortization of losses | 4 | 4 |
Settlement loss | 4 | 0 |
Net pension/postretirement benefit cost | $ 7 | $ 3 |
Trust Preferred Securities Is_3
Trust Preferred Securities Issued by Unconsolidated Subsidiaries - Summary of Trust Preferred Securities, Common Stock and Related Debentures (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Common Stock | $ 1,257 | $ 1,257 |
Debentures adjustments related to financial instrument hedging | 77 | 57 |
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 of Debentures, Net of Discount | $ 162 | |
Interest Rate of Trust Preferred Securities and Debentures | 2.649% | |
KeyCorp Capital II [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Trust Preferred Securities, Net of Discount | $ 114 | |
Common Stock | 4 | |
Principal Amount of of Debentures, Net of Discount | $ 118 | |
Interest Rate of Trust Preferred Securities and Debentures | 6.875% | |
KeyCorp Capital III [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Trust Preferred Securities, Net of Discount | $ 149 | |
Common Stock | 4 | |
Principal Amount of of Debentures, Net of Discount | $ 153 | |
Interest Rate of Trust Preferred Securities and Debentures | 7.75% | |
HNC Statutory Trust III [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Trust Preferred Securities, Net of Discount | $ 19 | |
Common Stock | 1 | |
Principal Amount of of Debentures, Net of Discount | $ 20 | |
Interest Rate of Trust Preferred Securities and Debentures | 3.083% | |
Willow Grove Statutory Trust I [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Trust Preferred Securities, Net of Discount | $ 19 | |
Common Stock | 1 | |
Principal Amount of of Debentures, Net of Discount | $ 20 | |
Interest Rate of Trust Preferred Securities and Debentures | 2.051% | |
HNC Statutory Trust IV [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Trust Preferred Securities, Net of Discount | $ 17 | |
Common Stock | 1 | |
Principal Amount of of Debentures, Net of Discount | $ 18 | |
Interest Rate of Trust Preferred Securities and Debentures | 3.05% | |
Westbank Capital Trust II [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Trust Preferred Securities, Net of Discount | $ 8 | |
Common Stock | 0 | |
Principal Amount of of Debentures, Net of Discount | $ 8 | |
Interest Rate of Trust Preferred Securities and Debentures | 3.306% | |
Westbank Capital Trust III [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Trust Preferred Securities, Net of Discount | $ 8 | |
Common Stock | 0 | |
Principal Amount of of Debentures, Net of Discount | $ 8 | |
Interest Rate of Trust Preferred Securities and Debentures | 3.306% | |
Business Trusts [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Trust Preferred Securities, Net of Discount | $ 490 | 466 |
Common Stock | 17 | 17 |
Principal Amount of of Debentures, Net of Discount | $ 507 | $ 483 |
Interest Rate of Trust Preferred Securities and Debentures | 5.213% | 5.214% |
Treasury Rate [Member] | KeyCorp Capital II [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Basis spread on variable rate | 0.20% | |
Treasury Rate [Member] | KeyCorp Capital III [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Basis spread on variable rate | 0.25% | |
London Interbank Offered Rate (LIBOR) [Member] | KeyCorp Capital I [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Basis spread on variable rate | 0.74% | |
London Interbank Offered Rate (LIBOR) [Member] | HNC Statutory Trust III [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Basis spread on variable rate | 1.40% | |
London Interbank Offered Rate (LIBOR) [Member] | Willow Grove Statutory Trust I [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Basis spread on variable rate | 1.31% | |
London Interbank Offered Rate (LIBOR) [Member] | HNC Statutory Trust IV [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Basis spread on variable rate | 1.28% | |
London Interbank Offered Rate (LIBOR) [Member] | Westbank Capital Trust II and III [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Basis spread on variable rate | 2.19% | |
Redemption upon either tax or a capital treatment event [Member] | Treasury Rate [Member] | Keycorp Capital II and III [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Basis spread on variable rate | 0.50% |
Contingent Liabilities and Gu_3
Contingent Liabilities and Guarantees - Guarantees (Details) $ in Millions | Mar. 31, 2020USD ($) |
Guarantor Obligations [Line Items] | |
Maximum Potential Undiscounted Future Payments | $ 12,954 |
Liability Recorded | 201 |
Written Put Options [Member] | |
Guarantor Obligations [Line Items] | |
Maximum Potential Undiscounted Future Payments | 2,598 |
Liability Recorded | 102 |
Standby Letters of Credit [Member] | |
Guarantor Obligations [Line Items] | |
Maximum Potential Undiscounted Future Payments | 3,352 |
Liability Recorded | 72 |
Recourse Agreement with FNMA [Member] | |
Guarantor Obligations [Line Items] | |
Maximum Potential Undiscounted Future Payments | 5,098 |
Liability Recorded | 20 |
Residential Mortgage Reserve [Member] | |
Guarantor Obligations [Line Items] | |
Maximum Potential Undiscounted Future Payments | 1,906 |
Liability Recorded | $ 7 |
Contingent Liabilities and Gu_4
Contingent Liabilities and Guarantees - Additional Information (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Written Put Options [Member] | |
Commitments Contingencies And Guarantees [Line Items] | |
Weighted average life of written put options | 3 years |
Standby Letters of Credit [Member] | |
Commitments Contingencies And Guarantees [Line Items] | |
Remaining weighted-average life of standby letters of credit in years | 2 years |
Recourse Agreement with FNMA [Member] | |
Commitments Contingencies And Guarantees [Line Items] | |
Weighted-average remaining term for outstanding commercial mortgage loans in years | 7 years 8 months 12 days |
Unpaid principal balance outstanding of loans sold | $ 17,100 |
Maximum potential amount of undiscounted future payments possibly required as percentage of principal balance of loans outstanding | 30.00% |
Residential Mortgage Reserve [Member] | |
Commitments Contingencies And Guarantees [Line Items] | |
Unpaid principal balance outstanding of loans sold | $ 6,400 |
Maximum potential amount of undiscounted future payments possibly required as percentage of principal balance of loans outstanding | 30.00% |
Liability for estimated repurchase obligations on loans sold | $ 7 |
Minimum [Member] | Standby Letters of Credit [Member] | |
Commitments Contingencies And Guarantees [Line Items] | |
Remaining actual life of standby letters of credit | 1 year |
Minimum [Member] | Low [Member] | |
Commitments Contingencies And Guarantees [Line Items] | |
Guarantee obligations, percentage | 0.00% |
Minimum [Member] | Moderate [Member] | |
Commitments Contingencies And Guarantees [Line Items] | |
Guarantee obligations, percentage | 30.00% |
Minimum [Member] | High [Member] | |
Commitments Contingencies And Guarantees [Line Items] | |
Guarantee obligations, percentage | 70.00% |
Maximum [Member] | Standby Letters of Credit [Member] | |
Commitments Contingencies And Guarantees [Line Items] | |
Remaining actual life of standby letters of credit | 15 years |
Maximum [Member] | Low [Member] | |
Commitments Contingencies And Guarantees [Line Items] | |
Guarantee obligations, percentage | 30.00% |
Maximum [Member] | Moderate [Member] | |
Commitments Contingencies And Guarantees [Line Items] | |
Guarantee obligations, percentage | 70.00% |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income - Changes in AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | $ 17,038 | |
Other comprehensive income before reclassification, net of income taxes | 810 | $ 266 |
Amounts reclassified from AOCI, net of income taxes | (22) | 22 |
Total other comprehensive income (loss), net of tax | 788 | 288 |
Ending Balance | 17,411 | |
Unrealized Gains (Losses) on Securities Available for Sale [Member] | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | 115 | (373) |
Other comprehensive income before reclassification, net of income taxes | 408 | 184 |
Amounts reclassified from AOCI, net of income taxes | (3) | 0 |
Total other comprehensive income (loss), net of tax | 405 | 184 |
Ending Balance | 520 | (189) |
Unrealized Gains (Losses) on Derivative Financial Instruments [Member] | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | 250 | (50) |
Other comprehensive income before reclassification, net of income taxes | 402 | 80 |
Amounts reclassified from AOCI, net of income taxes | (25) | 19 |
Total other comprehensive income (loss), net of tax | 377 | 99 |
Ending Balance | 627 | 49 |
Foreign Currency Translation Adjustment [Member] | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | 0 | (14) |
Other comprehensive income before reclassification, net of income taxes | 0 | 3 |
Amounts reclassified from AOCI, net of income taxes | 0 | 0 |
Total other comprehensive income (loss), net of tax | 0 | 3 |
Ending Balance | 0 | (11) |
Net Pension and Postretirement Benefit Costs [Member] | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | (339) | (381) |
Other comprehensive income before reclassification, net of income taxes | 0 | (1) |
Amounts reclassified from AOCI, net of income taxes | 6 | 3 |
Total other comprehensive income (loss), net of tax | 6 | 2 |
Ending Balance | (333) | (379) |
AOCI Attributable to Parent [Member] | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | 26 | (818) |
Total other comprehensive income (loss), net of tax | 788 | 288 |
Ending Balance | $ 814 | $ (530) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income - Reclassifications Out of AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other income | [1] | $ (88) | $ 10 |
Interest income — Loans | 1,026 | 1,066 | |
Interest expense — Long-term debt | (90) | (120) | |
Income (loss) from continuing operations before income taxes | 176 | 496 | |
Income taxes | 23 | 82 | |
Other expense | 515 | 563 | |
INCOME (LOSS) FROM CONTINUING OPERATIONS | 145 | 406 | |
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] | |||
Other income | 4 | 0 | |
Income (loss) from continuing operations before income taxes | 4 | 0 | |
Income taxes | 1 | 0 | |
INCOME (LOSS) FROM CONTINUING OPERATIONS | 3 | 0 | |
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 | 33 | (25) | |
Income taxes | 8 | (6) | |
INCOME (LOSS) FROM CONTINUING OPERATIONS | 25 | (19) | |
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 | (8) | (4) | |
Income taxes | (2) | (1) | |
INCOME (LOSS) FROM CONTINUING OPERATIONS | (6) | (3) | |
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] | |||
Other expense | (4) | (4) | |
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] | |||
Other expense | (4) | 0 | |
Interest Income [Member] | 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 | 34 | (24) | |
Interest Expense [Member] | 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] | |||
Interest expense — Long-term debt | $ (1) | $ (1) | |
[1] | For the three months ended March 31, 2020 , net securities gains (losses) totaled $4 million . For the three months ended March 31, 2019 , net securities gains (losses) totaled less than $1 million . For the three months ended March 31, 2020 , and March 31, 2019 , Key did no t have any impairment losses related to securities. |
Shareholders' Equity - Comprehe
Shareholders' Equity - Comprehensive Capital Plan (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Repurchase of common shares | $ 117,000,000 | $ 167,000,000 |
Cash dividends declared on common shares (in usd per share) | $ 0.185 | $ 0.17 |
2019 Capital Plan [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Authorized amount of share repurchases | $ 1,000,000,000 | |
Common shares repurchased, value | 152,000,000 | |
Repurchase of common shares | 117,000,000 | |
Employee equity compensation program Common Share repurchases (less than) | $ 1,000,000 | |
Cash dividends declared on common shares (in usd per share) | $ 0.185 |
Shareholders' Equity - Schedule
Shareholders' Equity - Schedule of Preferred Stock (Details) | Mar. 31, 2020USD ($)$ / sharesshares |
Series D Preferred Stock [Member] | |
Class of Stock [Line Items] | |
Preferred stock, amount outstanding | $ | $ 525,000,000 |
Preferred stock, shares authorized (in shares) | shares | 21,000 |
Preferred stock, shares outstanding (in shares) | shares | 21,000 |
Preferred stock, par value (in usd per share) | $ 1 |
Preferred stock, liquidation preference, value | $ | $ 25,000 |
Depository Shares, Series D [Member] | |
Class of Stock [Line Items] | |
Depository receipt ratio | 0.04 |
Preferred stock, liquidation preference (in usd per share) | $ 1,000 |
Dividend payable per share (in usd per share) | $ 12.50 |
Series E Preferred Stock [Member] | |
Class of Stock [Line Items] | |
Preferred stock, amount outstanding | $ | $ 500,000,000 |
Preferred stock, shares authorized (in shares) | shares | 500,000 |
Preferred stock, shares outstanding (in shares) | shares | 500,000 |
Preferred stock, par value (in usd per share) | $ 1 |
Preferred stock, liquidation preference, value | $ | $ 1,000 |
Depository Shares, Series E [Member] | |
Class of Stock [Line Items] | |
Depository receipt ratio | 0.025 |
Preferred stock, liquidation preference (in usd per share) | $ 25 |
Dividend payable per share (in usd per share) | $ 0.382813 |
Series F Preferred Stock [Member] | |
Class of Stock [Line Items] | |
Preferred stock, amount outstanding | $ | $ 425,000,000 |
Preferred stock, shares authorized (in shares) | shares | 425,000 |
Preferred stock, shares outstanding (in shares) | shares | 425,000 |
Preferred stock, par value (in usd per share) | $ 1 |
Preferred stock, liquidation preference, value | $ | $ 1,000 |
Depository Shares, Series F [Member] | |
Class of Stock [Line Items] | |
Depository receipt ratio | 0.025 |
Preferred stock, liquidation preference (in usd per share) | $ 25 |
Dividend payable per share (in usd per share) | $ 0.353125 |
Series G Preferred Stock [Member] | |
Class of Stock [Line Items] | |
Preferred stock, amount outstanding | $ | $ 450,000,000 |
Preferred stock, shares authorized (in shares) | shares | 450,000 |
Preferred stock, shares outstanding (in shares) | shares | 450,000 |
Preferred stock, par value (in usd per share) | $ 1 |
Preferred stock, liquidation preference, value | $ | $ 1,000 |
Depository Shares, Series G [Member] | |
Class of Stock [Line Items] | |
Depository receipt ratio | 0.025 |
Preferred stock, liquidation preference (in usd per share) | $ 25 |
Dividend payable per share (in usd per share) | $ 0.351563 |
Business Segment Reporting - Ad
Business Segment Reporting - Additional Information (Details) $ in Millions | Mar. 31, 2020USD ($)Branchindustry_sector | Dec. 31, 2019USD ($) |
Segment Reporting Information [Line Items] | ||
Goodwill | $ | $ 2,664 | $ 2,664 |
Consumer Bank [Member] | ||
Segment Reporting Information [Line Items] | ||
Number Of State Branch Network | Branch | 15 | |
Commercial Bank [Member] | ||
Segment Reporting Information [Line Items] | ||
Number Of Industrial Sectors | industry_sector | 7 |
Business Segment Reporting - Sc
Business Segment Reporting - Schedule of Segment Reporting Information (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2020USD ($)employee | Mar. 31, 2019USD ($)employee | |
SUMMARY OF OPERATIONS | ||
Net interest income (TE) | $ 989 | $ 985 |
Noninterest income | 477 | 536 |
Total revenue (TE) | 1,466 | 1,521 |
Provision for credit losses | 359 | 62 |
Depreciation and amortization expense | 92 | 88 |
Other noninterest expense | 839 | 875 |
Income (loss) from continuing operations before income taxes (TE) | 176 | 496 |
Allocated income taxes and TE adjustments | 31 | 90 |
INCOME (LOSS) FROM CONTINUING OPERATIONS | 145 | 406 |
Income (loss) from discontinued operations, net of taxes | 1 | 1 |
NET INCOME (LOSS) | 146 | 407 |
Less: Net income (loss) attributable to noncontrolling interests | 0 | 0 |
NET INCOME (LOSS) ATTRIBUTABLE TO KEY | 146 | 407 |
AVERAGE BALANCES | ||
Loans and leases | 96,174 | 89,649 |
Total assets | 146,228 | 140,120 |
Deposits | 110,328 | 107,576 |
OTHER FINANCIAL DATA | ||
Net loan charge-offs | $ 84 | $ 64 |
Return on average allocated equity, continuing operations | 3.39% | 10.49% |
Return on average allocated equity | 3.41% | 10.51% |
Average full-time equivalent employees | employee | 16,529 | 17,554 |
Operating Segments [Member] | Consumer Bank [Member] | ||
SUMMARY OF OPERATIONS | ||
Net interest income (TE) | $ 590 | $ 591 |
Noninterest income | 230 | 214 |
Total revenue (TE) | 820 | 805 |
Provision for credit losses | 140 | 45 |
Depreciation and amortization expense | 21 | 23 |
Other noninterest expense | 522 | 517 |
Income (loss) from continuing operations before income taxes (TE) | 137 | 220 |
Allocated income taxes and TE adjustments | 32 | 52 |
INCOME (LOSS) FROM CONTINUING OPERATIONS | 105 | 168 |
Income (loss) from discontinued operations, net of taxes | 0 | 0 |
NET INCOME (LOSS) | 105 | 168 |
Less: Net income (loss) attributable to noncontrolling interests | 0 | 0 |
NET INCOME (LOSS) ATTRIBUTABLE TO KEY | 105 | 168 |
AVERAGE BALANCES | ||
Loans and leases | 35,197 | 31,321 |
Total assets | 38,460 | 34,732 |
Deposits | 73,320 | 71,288 |
OTHER FINANCIAL DATA | ||
Net loan charge-offs | $ 43 | $ 34 |
Return on average allocated equity, continuing operations | 12.18% | 21.27% |
Return on average allocated equity | 12.18% | 21.27% |
Average full-time equivalent employees | employee | 8,907 | 9,622 |
Operating Segments [Member] | Commercial Bank [Member] | ||
SUMMARY OF OPERATIONS | ||
Net interest income (TE) | $ 410 | $ 402 |
Noninterest income | 219 | 300 |
Total revenue (TE) | 629 | 702 |
Provision for credit losses | 214 | 16 |
Depreciation and amortization expense | 36 | 29 |
Other noninterest expense | 317 | 344 |
Income (loss) from continuing operations before income taxes (TE) | 62 | 313 |
Allocated income taxes and TE adjustments | (8) | 63 |
INCOME (LOSS) FROM CONTINUING OPERATIONS | 70 | 250 |
Income (loss) from discontinued operations, net of taxes | 0 | 0 |
NET INCOME (LOSS) | 70 | 250 |
Less: Net income (loss) attributable to noncontrolling interests | 0 | 0 |
NET INCOME (LOSS) ATTRIBUTABLE TO KEY | 70 | 250 |
AVERAGE BALANCES | ||
Loans and leases | 60,082 | 57,267 |
Total assets | 69,383 | 64,873 |
Deposits | 36,058 | 34,417 |
OTHER FINANCIAL DATA | ||
Net loan charge-offs | $ 40 | $ 30 |
Return on average allocated equity, continuing operations | 6.00% | 22.60% |
Return on average allocated equity | 6.00% | 22.60% |
Average full-time equivalent employees | employee | 2,069 | 2,370 |
Other [Member] | ||
SUMMARY OF OPERATIONS | ||
Net interest income (TE) | $ (11) | $ (8) |
Noninterest income | 28 | 22 |
Total revenue (TE) | 17 | 14 |
Provision for credit losses | 5 | 1 |
Depreciation and amortization expense | 35 | 36 |
Other noninterest expense | 0 | 14 |
Income (loss) from continuing operations before income taxes (TE) | (23) | (37) |
Allocated income taxes and TE adjustments | 7 | (25) |
INCOME (LOSS) FROM CONTINUING OPERATIONS | (30) | (12) |
Income (loss) from discontinued operations, net of taxes | 1 | 1 |
NET INCOME (LOSS) | (29) | (11) |
Less: Net income (loss) attributable to noncontrolling interests | 0 | 0 |
NET INCOME (LOSS) ATTRIBUTABLE TO KEY | (29) | (11) |
AVERAGE BALANCES | ||
Loans and leases | 895 | 1,061 |
Total assets | 38,385 | 40,515 |
Deposits | 950 | 1,871 |
OTHER FINANCIAL DATA | ||
Net loan charge-offs | $ 1 | $ 0 |
Return on average allocated equity, continuing operations | (1.33%) | (0.61%) |
Return on average allocated equity | (1.29%) | (0.56%) |
Average full-time equivalent employees | employee | 5,553 | 5,562 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | $ 309 | $ 292 |
Noninterest income | 477 | 536 |
Contract assets | 0 | 0 |
Contract liabilities | 0 | 0 |
Trust And Investment Services Income [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 112 | 100 |
Investment Banking And Debt Placement Fees [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 47 | 45 |
Service Charges On Deposit Accounts [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 84 | 81 |
Cards And Payments Income [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 64 | 63 |
Other Noninterest Income [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 2 | 3 |
Noninterest income | 140 | 222 |
Operating Segments [Member] | Consumer Bank [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 189 | 179 |
Operating Segments [Member] | Consumer Bank [Member] | Trust And Investment Services Income [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 93 | 85 |
Operating Segments [Member] | Consumer Bank [Member] | Investment Banking And Debt Placement Fees [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 0 | 0 |
Operating Segments [Member] | Consumer Bank [Member] | Service Charges On Deposit Accounts [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 56 | 54 |
Operating Segments [Member] | Consumer Bank [Member] | Cards And Payments Income [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 38 | 37 |
Operating Segments [Member] | Consumer Bank [Member] | Other Noninterest Income [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 2 | 3 |
Operating Segments [Member] | Commercial Bank [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 120 | 113 |
Operating Segments [Member] | Commercial Bank [Member] | Trust And Investment Services Income [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 19 | 15 |
Operating Segments [Member] | Commercial Bank [Member] | Investment Banking And Debt Placement Fees [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 47 | 45 |
Operating Segments [Member] | Commercial Bank [Member] | Service Charges On Deposit Accounts [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 28 | 27 |
Operating Segments [Member] | Commercial Bank [Member] | Cards And Payments Income [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 26 | 26 |
Operating Segments [Member] | Commercial Bank [Member] | Other Noninterest Income [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 0 | 0 |
Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Noninterest income | $ 28 | $ 22 |
Uncategorized Items - key-33120
Label | Element | Value |
Commercial Real Estate [Member] | Commercial Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Loss | us-gaap_FinancingReceivableAllowanceForCreditLosses | $ 174,000,000 |
Commercial Real Estate Commercial Mortgage [Member] | Commercial Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Loss | us-gaap_FinancingReceivableAllowanceForCreditLosses | 159,000,000 |
Consumer Credit Card [Member] | Consumer Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Loss | us-gaap_FinancingReceivableAllowanceForCreditLosses | 82,000,000 |
Real Estate Residential Mortgage [Member] | Consumer Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Loss | us-gaap_FinancingReceivableAllowanceForCreditLosses | $ 84,000,000 |