Business Combination (Tables)

9 Months Ended

Sep. 30, 2016

Information About Acquired Loan Portfolio as of Acquisition Date

The following table presents the PCI loans receivable balance at the First Niagara Acquisition Date:



August 1, 2016	PCI
in millions	PCI
Contractual required payments receivable	$	1,132
Nonaccretable difference	109
Expected cash flows	1,023
Accretable yield	29
Fair Value	$	994

Schedule of Changes in Goodwill by Reporting Unit

The following table shows the changes in the carrying amount of goodwill by reporting unit.



	Key		Key
	Community		Corporate
in millions	Bank		Bank		Total
BALANCE AT DECEMBER 31, 2014	$	979	$	78	$	1,057
Impairment losses based on results of interim impairment testing	—		—		—
Tax adjustment resulting from Pacific Crest Securities acquisition	—		3		3
BALANCE AT DECEMBER 31, 2015	979		81		1,060
Acquisition of First Niagara	1,136		284		1,420
BALANCE AT SEPTEMBER 30, 2016	$	2,115	$	365	$	2,480

First Niagara Bank, N.A. [Member]

Business Acquisition [Line Items]

Schedule of Purchase Price Calculation and Identifiable Assets Purchased and Liabilities Assumed

The following table provides the purchase price calculation as of the Acquisition Date and the identifiable assets purchased and the liabilities assumed at their estimated fair value. These fair value measurements are based on internal and third-party valuations.



in millions
Consideration paid:
KeyCorp common stock issued			$	2,831
Cash payments to First Niagara stockholders			811
Exchange of First Niagara preferred stock for KeyCorp preferred stock			350
Total consideration paid			$	3,992

Statement of Net Assets Acquired at Fair Value:
ASSETS
Cash and due from banks and short-term investments	$	620
Investment securities	9,019
Other investments	297
Loans	23,504
Premises and equipment	276
Other intangible assets	388
Accrued income and other assets	1,449
Total assets	$	35,553

LIABILITIES
Deposits	$	28,993
Bank notes and other short-term borrowings	2,698
Accrued expense and other liabilities	444
Long-term debt	846
Total liabilities	$	32,981

Net identifiable assets acquired			2,572
Goodwill			$	1,420

Information About Acquired Loan Portfolio as of Acquisition Date

Information about the acquired First Niagara loan portfolio as of the Acquisition Date is in the following table, and excludes lines of credit:



in millions	PCI
Contractual required payments receivable	$	1,132
Nonaccretable difference	109
Expected cash flows	1,023
Accretable yield	29
Fair value	$	994

Schedule of Operations Included in Consolidated Statement of Income and Unaudited Pro Forma Information

The following table presents financial information regarding the former First Niagara operations included in our Consolidated

Statement of Income from the Acquisition Date through September 30, 2016, under the column “Actual from acquisition date through September 30, 2016.” These amounts do not include merger-related charges. In addition, the following table presents unaudited pro forma information as if the acquisition of First Niagara had occurred on January 1, 2015, under the “Pro forma” column. This pro forma information gives effect to certain adjustments, including purchase accounting fair value adjustments, amortization of core deposit and other intangibles, and related income tax effects. Merger-related charges related to the First Niagara merger that we incurred during the nine months ended September 30, 2016, are not reflected in the unaudited pro forma amounts. The pro forma information does not necessarily reflect the results of operations that would have occurred had KeyCorp merged with First Niagara at the beginning of 2015. Cost savings are also not reflected in the unaudited pro forma amounts for the nine months ended September 30, 2016, and 2015.



	Actual from acquisition		Pro forma
	date through		Nine months ended September 30,
in millions	September 30, 2016		2016		2015
Net interest income (TE)	$	175	$	2,674	$	2,599
Noninterest income	53		1,625		1,635
Net income (loss) attributable to common shareholders	48		849		873