Business Segment Reporting

3 Months Ended

Mar. 31, 2022

Segment Reporting [Abstract]

Business Segment Reporting

20. Business Segment Reporting

The following is description of the segments and their primary businesses at March 31, 2022.

Consumer Bank

The Consumer Bank serves individuals and small businesses throughout our 15-state branch footprint as well as healthcare professionals nationally through our Laurel Road digital brand by offering a variety of deposit and investment products, personal finance and financial wellness services, lending, student loan refinancing, mortgage and home equity, credit card, treasury services, and business advisory services. In addition, wealth management and investment services are offered to assist 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, 2022, and March 31, 2021. Capital is assigned to each business segment based on a combination of regulatory and economic equity.

Three months ended March 31,	Consumer Bank						Commercial Bank						Other						Total Key
Dollars in millions	2022			2021			2022			2021			2022			2021			2022			2021
SUMMARY OF OPERATIONS
Net interest income (TE)	$	543		$	607		$	415		$	411		$	62		$	(6)		$	1,020		$	1,012
Noninterest income	256			257			395			447			25			34			676			738
Total revenue (TE) (a)	799			864			810			858			87			28			1,696			1,750
Provision for credit losses	43			(23)			41			(67)			(1)			(3)			83			(93)
Depreciation and amortization expense	21			18			31			34			18			23			70			75
Other noninterest expense	642			583			386			409			(28)			4			1,000			996
Income (loss) from continuing operations before income taxes (TE)	93			286			352			482			98			4			543			772
Allocated income taxes and TE adjustments	23			69			69			99			4			(14)			96			154
Income (loss) from continuing operations	70			217			283			383			94			18			447			618
Income (loss) from discontinued operations, net of taxes	—			—			—			—			1			4			1			4
Net income (loss)	70			217			283			383			95			22			448			622
Less: Net income (loss) attributable to noncontrolling interests	—			—			—			—			—			—			—			—
Net income (loss) attributable to Key	$	70		$	217		$	283		$	383		$	95		$	22		$	448		$	622
AVERAGE BALANCES (b)
Loans and leases	$	38,637		$	39,249		$	64,701		$	61,221		$	424		$	258		$	103,762		$	100,728
Total assets (a)	41,814			42,476			74,860			70,448			65,915			59,309			182,589			172,233
Deposits	91,468			85,033			57,289			51,894			1,406			813			150,163			137,740
OTHER FINANCIAL DATA
Net loan charge-offs (b)	$	22		$	36		$	11		$	78		$	—		$	—		$	33		$	114
Return on average allocated equity (b)	7.91		%	25.74		%	13.21		%	17.41		%	8.47		%	1.35		%	10.80		%	14.11		%
Return on average allocated equity	7.91			25.74			13.21			17.41			8.56			1.64			10.83			14.20
Average full-time equivalent employees (c)	7,899			8,284			2,402			2,258			6,809			6,544			17,110			17,086

(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.