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Asset Quality (Tables)
 9 Months Ended
Sep. 30, 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 September 30, 2020:
in millionsJune 30, 2020ProvisionCharge-offsRecoveriesSeptember 30, 2020
Commercial and Industrial $725 $177 $(101)$9 $810 
Commercial real estate:
Real estate — commercial mortgage292 (2)(13)2 279 
Real estate — construction41 (7)— — 34 
Total commercial real estate loans333 (9)(13)2 313 
Commercial lease financing55 13 (10)— 58 
Total commercial loans1,113 181 (124)11 1,181 
Real estate — residential mortgage101 2 — 1 104 
Home equity loans197 (13)(4)3 183 
Consumer direct loans130 1 (8)2 125 
Credit cards107 (5)(9)2 95 
Consumer indirect loans60 (16)(6)4 42 
Total consumer loans595 (31)(27)12 549 
Total ALLL — continuing operations1,708 150 
(a)
(151)23 1,730 
Discontinued operations43 (1)— — 42 
Total ALLL — including discontinued operations$1,751 $149 $(151)$23 $1,772 
(a)Excludes a provision for losses on lending-related commitments of $10 million.

Three months ended September 30, 2019:
in millionsJune 30, 2019ProvisionCharge-offsRecoveriesSeptember 30, 2019
Commercial and Industrial $549 $175 $(176)$6 $554 
Commercial real estate:
Real estate — commercial mortgage139 (5)— — 134 
Real estate — construction24 (1)— — 23 
Total commercial real estate loans163 (6)— — 157 
Commercial lease financing35 — (1)1 35 
Total commercial loans747 169 (177)7 746 
Real estate — residential mortgage7 1 (1)— 7 
Home equity loans36 1 (6)2 33 
Consumer direct loans32 10 (10)2 34 
Credit cards44 11 (11)2 46 
Consumer indirect loans24 7 (8)4 27 
Total consumer loans143 30 (36)10 147 
Total ALLL — continuing operations890 199 
(a) (b)
(213)
 (b)
17 893 
Discontinued operations12 (1)(1)1 11 
Total ALLL — including discontinued operations$902 $198 $(214)$18 $904 
(a)Excludes a provision for losses on lending-related commitments of $1 million.
(b)Includes the realization of a $123 million loss related to a previously disclosed fraud incident.
Nine months ended September 30, 2020:
in millionsDecember 31, 2019Impact of ASC 326 AdoptionJanuary 1, 2020ProvisionCharge-offsRecoveriesSeptember 30, 2020
Commercial and Industrial $551 $(141)$410 $613 $(232)$19 $810 
Commercial real estate:
Real estate — commercial mortgage143 16 159 135 (18)3 279 
Real estate — construction22 (7)15 19 — — 34 
Total commercial real estate loans165 9 174 154 (18)3 313 
Commercial lease financing35 8 43 30 (16)1 58 
Total commercial loans751 (124)627 797 (266)23 1,181 
Real estate — residential mortgage7 77 84 21 (2)1 104 
Home equity loans31 147 178 9 (10)6 183 
Consumer direct loans34 63 97 52 (30)6 125 
Credit cards47 35 82 39 (32)6 95 
Consumer indirect loans30 6 36 16 (22)12 42 
Total consumer loans149 328 477 137 (96)31 549 
Total ALLL — continuing operations900 204 1,104 934 
(a)
(362)54 1,730 
Discontinued operations10 31 41 2 (4)3 42 
Total ALLL — including discontinued operations$910 $235 $1,145 $936 $(366)$57 $1,772 
(a)Excludes a provision for losses on lending-related commitments of $67 million.

Nine months ended September 30, 2019:
in millionsDecember 31, 2018ProvisionCharge-offsRecoveriesSeptember 30, 2019
Commercial and Industrial $532 $242 $(242)$22 $554 
Commercial real estate:
Real estate — commercial mortgage142 (4)(6)2 134 
Real estate — construction33 (6)(4)— 23 
Total commercial real estate loans175 (10)(10)2 157 
Commercial lease financing36 20 (25)4 35 
Total commercial loans743 252 (277)28 746 
Real estate — residential mortgage7 2 (3)1 7 
Home equity loans35 8 (16)6 33 
Consumer direct loans30 29 (30)5 34 
Credit cards48 26 (34)6 46 
Consumer indirect loans20 18 (24)13 27 
Total consumer loans140 83 (107)31 147 
Total ALLL — continuing operations883 335 
(a) (b)
(384)
 (b)
59 893 
Discontinued operations14 3 (9)3 11 
Total ALLL — including discontinued operations$897 $338 $(393)$62 $904 
(a)Excludes a provision for losses on lending-related commitments of$1 million.
(b)Includes the realization of a $123 million loss related to a previously disclosed fraud incident.
Significant Macroeconomic Variables of Loan Portfolios
SegmentPortfolio
Key Macroeconomic Variables (a)
CommercialCommercial and industrialBBB corporate bond rate (spread), GDP, industrial production, and unemployment rate
Commercial real estateBBB corporate bond rate (spread), property and real estate price indices, and unemployment rate
Commercial lease financingBBB corporate bond rate (spread), GDP, and unemployment rate
ConsumerReal estate — residential mortgageGDP, home price index, unemployment rate, and 30 year mortgage rate
Home equityHome price index, unemployment rate, and 30 year mortgage rate
Consumer directUnemployment rate and U.S. household income
Consumer indirectNew vehicle sales and unemployment rate
Credit cardsUnemployment rate and U.S. household income
Discontinued operationsUnemployment 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.
Financing Receivable Credit Quality Indicators
Credit Risk Profile by Creditworthiness Category and Vintage (a)
As of September 30, 2020Term LoansRevolving Loans Amortized Cost BasisRevolving Loans Converted to Term Loans Amortized Cost Basis
Amortized Cost Basis by Origination Year and Internal Risk Rating
in millions20202019201820172016PriorTotal
Commercial and Industrial
Risk Rating:
Pass$13,328 $5,936 $4,512 $3,141 $2,223 $3,018 $19,876 $153 $52,187 
Criticized (Accruing)39 131 164 201 137 251 1,434 22 2,379 
Criticized (Nonaccruing)6 14 63 31 20 41 283 1 459 
Total commercial and industrial13,373 6,081 4,739 3,373 2,380 3,310 21,593 176 55,025 
Real estate — commercial mortgage
Risk Rating:
Pass1,341 3,186 1,877 918 879 3,267 807 46 12,321 
Criticized (Accruing)3 40 65 113 85 246 80 2 634 
Criticized (Nonaccruing)— 1 4 3 1 90 5 — 104 
Total real estate — commercial mortgage
1,344 3,227 1,946 1,034 965 3,603 892 48 13,059 
Real estate — construction
Risk Rating:
Pass242 701 624 226 34 25 24 5 1,881 
Criticized (Accruing)— 3 18 — 41 2 1 — 65 
Criticized (Nonaccruing)— — — — 1 — — 1 
Total real estate — construction242 704 642 226 75 28 25 5 1,947 
Commercial lease financing
Risk Rating:
Pass793 1,180 620 561 273 939 — — 4,366 
Criticized (Accruing)9 14 18 19 9 9 — — 78 
Criticized (Nonaccruing)— — 1 2 3 — — — 6 
Total commercial lease financing802 1,194 639 582 285 948 — 4,450 
Total commercial loans$15,761 $11,206 $7,966 $5,215 $3,705 $7,889 $22,510 $229 $74,481 
(a)Accrued interest of $133 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 September 30, 2020Term LoansRevolving Loans Amortized Cost BasisRevolving Loans Converted to Term Loans Amortized Cost Basis
Amortized Cost Basis by Origination Year and FICO Score
in millions20202019201820172016PriorTotal
Real estate — residential mortgage
FICO Score:
750 and above$2,561 $1,774 $242 $286 $604 $1,372 — — $6,839 
660 to 749550 350 88 58 108 362 — — 1,516 
Less than 66015 34 24 11 23 183 — — 290 
No Score— 2 4 6 2 55 1 — 70 
Total real estate — residential mortgage3,126 2,160 358 361 737 1,972 1 — 8,715 
Home equity loans
FICO Score:
750 and above644 417 166 192 185 815 $2,874 $639 5,932 
660 to 749213 249 115 119 96 380 1,308 229 2,709 
Less than 66022 50 29 29 34 155 450 65 834 
No Score2 2 1 — — 2 5 1 13 
Total home equity loans881 718 311 340 315 1,352 4,637 934 9,488 
Consumer direct loans
FICO Score:
750 and above1,426 1,008 131 39 21 65 127 — 2,817 
660 to 749367 295 91 26 16 33 263 — 1,091 
Less than 66017 38 22 9 5 12 86 — 189 
No Score34 39 22 17 10 12 164 — 298 
Total consumer direct loans1,844 1,380 266 91 52 122 640 — 4,395 
Credit cards
FICO Score:
750 and above— — — — — — 469 — 469 
660 to 749— — — — — — 405 — 405 
Less than 660— — — — — — 95 — 95 
No Score— — — — — — 1 — 1 
Total credit cards— — — — — — 970 — 970 
Consumer indirect loans
FICO Score:
750 and above944 991 415 221 87 80 — — 2,738 
660 to 749595 633 264 115 46 57 — — 1,710 
Less than 660125 184 113 62 30 33 — — 547 
No Score37 — — — — — — — 37 
Total consumer indirect loans1,701 1,808 792 398 163 170 — — 5,032 
Total consumer loans$7,552 $6,066 $1,727 $1,190 $1,267 $3,616 $6,248 $934 $28,600 
(a)Accrued interest of $102 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 September 30, 2020, and December 31, 2019, provides further information regarding Key’s credit exposure.
Aging Analysis of Loan Portfolio(a)
September 30, 2020Current
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$54,385 $104 $53 $24 $459 $640 $55,025 
Commercial real estate:
Commercial mortgage12,900 23 14 18 104 159 13,059 
Construction1,942 1 2 1 1 5 1,947 
Total commercial real estate loans14,842 24 16 19 105 164 15,006 
Commercial lease financing4,418 21 3 2 6 32 4,450 
Total commercial loans$73,645 $149 $72 $45 $570 $836 $74,481 
Real estate — residential mortgage$8,594 $17 $5 $3 $96 $121 $8,715 
Home equity loans9,275 42 12 13 146 213 9,488 
Consumer direct loans4,377 7 4 4 3 18 4,395 
Credit cards956 4 2 6 2 14 970 
Consumer indirect loans4,991 18 4 2 17 41 5,032 
Total consumer loans$28,193 $88 $27 $28 $264 $407 $28,600 
Total loans$101,838 $237 $99 $73 $834 $1,243 $103,081 
(a)Amounts in table represent amortized cost and exclude loans held for sale.
(b)Accrued interest of $235 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, 2019Current
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 mortgage13,258 8 5 13 83 109 124 13,491 
Construction1,551 3 — 1 2 6 1 1,558 
Total commercial real estate loans14,809 11 5 14 85 115 125 15,049 
Commercial lease financing4,647 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 loans10,071 30 10 5 145 190 13 10,274 
Consumer direct loans3,484 10 5 7 4 26 3 3,513 
Credit cards1,104 6 5 12 3 26 — 1,130 
Consumer indirect loans4,609 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 September 30,Nine Months Ended September 30,
in millions2020201920202019
Commercial loans:
Extension of Maturity Date— $6 $8 $11 
Payment or Covenant Modification/Deferment— — — 1 
Bankruptcy Plan Modification— — — — 
Increase in new commitment or new money— 2 — 12 
Total— $8 $8 $24 
Consumer loans:
Interest rate reduction$13 $4 $22 $12 
Other6 8 18 21 
Total$19 $12 $40 $33 
Total TDRs$19 $20 $48 $57 
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 September 30,Nine Months Ended September 30,
in millions2020201920202019
Balance at beginning of the period$310 $395 $347 $399 
Additions26 20 65 88 
Payments(22)(65)(75)(123)
Charge-offs(8)(3)(31)(17)
Balance at end of period$306 $347 $306 $347 
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:
September 30, 2020December 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 industrial51 $51 $39 51 $72 $53 
Commercial real estate:
Commercial mortgage7 62 50 6 64 58 
Total commercial real estate loans7 62 50 6 64 58 
Total commercial loans58 113 89 57 136 111 
Real estate — residential mortgage271 28 27 181 13 11 
Home equity loans629 40 37 713 42 41 
Consumer direct loans153 2 2 172 2 2 
Credit cards279 2 1 368 2 2 
Consumer indirect loans867 15 12 1,131 19 16 
Total consumer loans2,199 87 79 2,565 78 72 
Total nonperforming TDRs2,257 200 168 2,622 214 183 
Prior-year accruing:(a)
Commercial and industrial4 5 2 6 30 25 
Commercial real estate
Commercial mortgage1 — — 1 — — 
Total commercial real estate loans1 — — 1 — — 
Total commercial loans5 5 2 7 30 25 
Real estate — residential mortgage472 35 29 493 37 31 
Home equity loans1,829 108 87 1,751 104 84 
Consumer direct loans178 4 2 139 4 3 
Credit cards584 4 1 486 3 1 
Consumer indirect loans813 31 17 714 33 20 
Total consumer loans3,876 182 136 3,583 181 139 
Total prior-year accruing TDRs3,881 187 138 3,590 211 164 
Total TDRs6,138 $387 $306 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 September 30,Nine months ended September 30,
in millions2020201920202019
Balance at the end of the prior period$198 $64 $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 period198 64 141 64 
Provision (credit) for losses on off balance sheet exposures10 1 67 1 
Balance at end of period$208 $65 $208 $65 
(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.