XML 92 R37.htm IDEA: XBRL DOCUMENT v3.23.2
Asset Quality (Tables)
 6 Months Ended
Jun. 30, 2023
Credit Loss [Abstract]  
Schedule of Financing Receivable, Allowance for Credit Loss The changes in the ALLL by loan category for the periods indicated are as follows:
Three months ended June 30, 2023:
Dollars in millionsMarch 31, 2023ProvisionCharge-offsRecoveriesJune 30, 2023
Commercial and Industrial $605 $21 $(42)$15 $599 
Commercial real estate:
Real estate — commercial mortgage218 105 (9)1 315 
Real estate — construction28 11 — — 39 
Total commercial real estate loans246 116 (9)1 354 
Commercial lease financing33 (1)(1)2 33 
Total commercial loans884 136 (52)18 986 
Real estate — residential mortgage212 (12)(1)1 200 
Home equity loans96 1 (2)1 96 
Consumer direct loans116 18 (11)2 125 
Credit cards71 8 (9)2 72 
Consumer indirect loans1 1 (1)— 1 
Total consumer loans496 16 (24)6 494 
Total ALLL — continuing operations1,380 152 
(a)
(76)24 1,480 
Discontinued operations19 — (2)1 18 
Total ALLL — including discontinued operations$1,399 $152 $(78)$25 $1,498 
(a)Excludes a provision for losses on lending-related commitments of $15 million.

Three months ended June 30, 2022:
Dollars in millionsMarch 31, 2022ProvisionCharge-offsRecoveriesJune 30, 2022
Commercial and Industrial $489 $45 $(39)$8 $503 
Commercial real estate:
Real estate — commercial mortgage172 (14)(3)1 156 
Real estate — construction25 (5)— 1 21 
Total commercial real estate loans197 (19)(3)2 177 
Commercial lease financing31 (3)— 1 29 
Total commercial loans717 23 (42)11 709 
Real estate — residential mortgage108 11 2 1 122 
Home equity loans104 (10)— 1 95 
Consumer direct loans111 10 (10)1 112 
Credit cards63 3 (8)1 59 
Consumer indirect loans2 1 (1)— 2 
Total consumer loans388 15 (17)4 390 
Total ALLL — continuing operations1,105 38 
(a)
(59)15 1,099 
Discontinued operations27 (3)(1)1 24 
Total ALLL — including discontinued operations$1,132 $35 $(60)$16 $1,123 
(a)Excludes a provision for losses on lending-related commitments of $7 million.
Six months ended June 30, 2023:
in millionsDecember 31, 2022ProvisionCharge-offsRecoveriesJune 30, 2023
Commercial and Industrial $601 $52 $(77)$23 $599 
Commercial real estate:
Real estate — commercial mortgage203 125 (14)1 315 
Real estate — construction28 11 — — 39 
Total commercial real estate loans231 136 (14)1 354 
Commercial lease financing32 (2)— 3 33 
Total commercial loans864 186 (91)27 986 
Real estate — residential mortgage196 3 (1)2 200 
Home equity loans98 (1)(3)2 96 
Consumer direct loans111 32 (22)4 125 
Credit cards66 21 (18)3 72 
Consumer indirect loans2 (1)(1)1 1 
Total consumer loans473 54 (45)12 494 
Total ALLL — continuing operations1,337 240 
(a)
(136)39 1,480 
Discontinued operations21 (1)(3)1 18 
Total ALLL — including discontinued operations$1,358 $239 $(139)$40 $1,498 
(a)Excludes a provision for losses on lending-related commitments of $66 million.

Six months ended June 30, 2022:
Dollars in millionsDecember 31, 2021ProvisionCharge-offsRecoveriesJune 30, 2022
Commercial and Industrial $445 $108 $(69)$19 $503 
Commercial real estate:
Real estate — commercial mortgage182 (21)(7)2 156 
Real estate — construction29 (9)— 1 21 
Total commercial real estate loans211 (30)(7)3 177 
Commercial lease financing32 (2)(2)1 29 
Total commercial loans688 76 (78)23 709 
Real estate — residential mortgage95 23 3 1 122 
Home equity loans110 (16)(1)2 95 
Consumer direct loans105 21 (17)3 112 
Credit cards61 10 (15)3 59 
Consumer indirect loans2 1 (2)1 2 
Total consumer loans373 39 (32)10 390 
Total ALLL — continuing operations1,061 115 
(a)
(110)33 1,099 
Discontinued operations28 (2)(3)1 24 
Total ALLL — including discontinued operations$1,089 $113 $(113)$34 $1,123 
(a)Excludes a provision for losses on lending-related commitments of $13 million.
Schedule of Significant Macroeconomic Variables of Loan Portfolios The following table discloses key macroeconomic variables for each loan portfolio.
SegmentPortfolio
Key Macroeconomic Variables (a)
CommercialCommercial and industrialBBB corporate bond rate (spread), fixed investment, business bankruptcies, GDP, industrial production, and unemployment rate, Producer Price Index
Commercial real estateProperty & real estate price indices, unemployment rate, business bankruptcies, GDP, SOFR
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 indirectUnemployment 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.
Schedule of Financing Receivable Credit Quality Indicators
Credit Risk Profile by Creditworthiness Category and Vintage (a)
As of June 30, 2023Term LoansRevolving Loans Amortized Cost BasisRevolving Loans Converted to Term Loans Amortized Cost Basis
Amortized Cost Basis by Origination Year and Internal Risk Rating
Dollars in millions20232022202120202019PriorTotal
Commercial and Industrial
Risk Rating:
Pass$3,242 $10,905 $7,306 $3,039 $2,367 $4,060 $26,548 $152 $57,619 
Criticized (Accruing)31 222 436 176 114 396 857 20 2,252 
Criticized (Nonaccruing)4 34 5 3 34 23 85 — 188 
Total commercial and industrial3,277 11,161 7,747 3,218 2,515 4,479 27,490 172 60,059 
Current period gross write-offs— — 5 4 1 7 25 — 42 
Real estate — commercial mortgage
Risk Rating:
Pass719 4,249 3,460 842 1,656 2,934 1,031 68 14,959 
Criticized (Accruing)3 373 186 26 135 211 90 — 1,024 
Criticized (Nonaccruing)— — 1 21 1 12 30 — 65 
Total real estate — commercial mortgage
722 4,622 3,647 889 1,792 3,157 1,151 68 16,048 
Current period gross write-offs— — — 1 — 8 — — 9 
Real estate — construction
Risk Rating:
Pass61 876 988 315 203 89 11 6 2,549 
Criticized (Accruing)— 5 23 17 — 50 — 2 97 
Criticized (Nonaccruing)— — — — — — — — — 
Total real estate — construction61 881 1,011 332 203 139 11 8 2,646 
Current period gross write-offs— — — — — — — — — 
Commercial lease financing
Risk Rating:
Pass287 973 668 436 390 956 — — 3,710 
Criticized (Accruing)22 35 4 9 8 12 — — 90 
Criticized (Nonaccruing)— — — — — 1 — — 1 
Total commercial lease financing309 1,008 672 445 398 969 — 3,801 
Current period gross write-offs— — — — — 1 — — 1 
Total commercial loans$4,369 $17,672 $13,077 $4,884 $4,908 $8,744 $28,652 $248 $82,554 
Total commercial loan current period gross write-offs$— $— $5 $5 $1 $16 $25 $— $52 

As of December 31, 2022Term LoansRevolving Loans Amortized Cost BasisRevolving Loans Converted to Term Loans Amortized Cost Basis
Amortized Cost Basis by Origination Year and Internal Risk Rating
Dollars in millions20222021202020192018PriorTotal
Commercial and Industrial
Risk Rating:
Pass$11,580 $8,636 $3,540 $2,839 $1,787 $3,307 $25,565 $138 $57,392 
Criticized (Accruing)40 357 131 160 227 205 936 25 2,081 
Criticized (Nonaccruing)34 2 5 4 22 20 87 — 174 
Total commercial and industrial11,654 8,995 3,676 3,003 2,036 3,532 26,588 163 59,647 
Real estate — commercial mortgage
Risk Rating:
Pass4,786 3,817 992 1,853 788 2,578 1,068 67 15,949 
Criticized (Accruing)6 13 20 48 73 175 47 — 382 
Criticized (Nonaccruing)— — 1 1 1 15 3 — 21 
Total real estate — commercial mortgage
4,792 3,830 1,013 1,902 862 2,768 1,118 67 16,352 
Real estate — construction
Risk Rating:
Pass698 895 445 262 107 48 1 — 2,456 
Criticized (Accruing)5 1 5 32 25 4 — 2 74 
Criticized (Nonaccruing)— — — — — — — — — 
Total real estate — construction703 896 450 294 132 52 1 2 2,530 
Commercial lease financing
Risk Rating:
Pass1,039 743 509 467 174 947 — — 3,879 
Criticized (Accruing)15 1 9 12 9 10 — — 56 
Criticized (Nonaccruing)— — — — — 1 — — 1 
Total commercial lease financing1,054 744 518 479 183 958 — — 3,936 
Total commercial loans$18,203 $14,465 $5,657 $5,678 $3,213 $7,310 $27,707 $232 $82,465 
(a)Accrued interest of $365 million and $314 million as of June 30, 2023, and December 31, 2022, respectively, presented in Other Assets on the Consolidated Balance Sheets, was excluded from the amortized cost basis disclosed in these tables.
Consumer Credit Exposure
Credit Risk Profile by FICO Score and Vintage (a)
As of June 30, 2023Term LoansRevolving Loans Amortized Cost BasisRevolving Loans Converted to Term Loans Amortized Cost Basis
Amortized Cost Basis by Origination Year and FICO Score
Dollars in millions20232022202120202019PriorTotal
Real estate — residential mortgage
FICO Score:
750 and above$621 $6,003 $8,037 $2,517 $611 $979 $— $— $18,768 
660 to 749188 885 830 239 100 271 — — 2,513 
Less than 6607 55 37 17 16 134 — — 266 
No Score1 65 1 1 — 21 1 — 90 
Total real estate — residential mortgage817 7,008 8,905 2,774 727 1,405 1 — 21,637 
Current period gross write-offs— — — — — 1 — — 1 
Home equity loans
FICO Score:
750 and above— 108 1,436 542 146 486 2,135 373 5,226 
660 to 74911 73 255 172 71 189 916 121 1,808 
Less than 6601 10 30 24 18 82 291 32 488 
No Score1 — — — — 2 4 — 7 
Total home equity loans13 191 1,721 738 235 759 3,346 526 7,529 
Current period gross write-offs1 — — — — — — 1 2 
Consumer direct loans
FICO Score:
750 and above143 1,264 1,549 741 314 118 98 — 4,227 
660 to 749127 418 376 191 99 60 199 — 1,470 
Less than 66013 61 61 31 17 13 55 — 251 
No Score20 45 20 16 11 19 178 — 309 
Total consumer direct loans303 1,788 2,006 979 441 210 530 — 6,257 
Current period gross write-offs— 3 3 1 1 — 3 — 11 
Credit cards
FICO Score:
750 and above— — — — — — 499 — 499 
660 to 749— — — — — — 400 — 400 
Less than 660— — — — — — 101 — 101 
No Score— — — — — — 1 — 1 
Total credit cards— — — — — — 1,001 — 1,001 
Current period gross write-offs— — — — — — 9 — 9 
Consumer indirect loans
FICO Score:
750 and above— 1 — — — 16 — — 17 
660 to 749— — — — — 12 — — 12 
Less than 660— — — — — 4 — — 4 
No Score— — — — — — — — — 
Total consumer indirect loans— 1 — — — 32 — — 33 
Current period gross write-offs— — — — — 1 — — 1 
Total consumer loans$1,133 $8,988 $12,632 $4,491 $1,403 $2,406 $4,878 $526 $36,457 
Total consumer loan current period gross write-offs$1 $3 $3 $1 $1 $2 $12 $1 $24 
As of December 31, 2022Term LoansRevolving Loans Amortized Cost BasisRevolving Loans Converted to Term Loans Amortized Cost Basis
Amortized Cost Basis by Origination Year and FICO Score
Dollars in millions20222021202020192018PriorTotal
Real estate — residential mortgage
FICO Score:
750 and above$5,205 $8,702 $2,584 $636 $64 $978 $— $— $18,169 
660 to 7491,286 919 282 106 28 260 — — 2,881 
Less than 66041 42 17 14 15 130 — — 259 
No Score62 1 1 1 1 25 1 — 92 
Total real estate — residential mortgage6,594 9,664 2,884 757 108 1,393 1 — 21,401 
Home equity loans
FICO Score:
750 and above146 1,044 736 207 74 617 2,238 398 5,460 
660 to 74983 291 194 79 32 187 974 126 1,966 
Less than 66011 31 25 17 10 81 300 37 512 
No Score7 — — — — 2 4 — 13 
Total home equity loans247 1,366 955 303 116 887 3,516 561 7,951 
Consumer direct loans
FICO Score:
750 and above1,291 1,632 811 351 45 97 102 — 4,329 
660 to 749526 434 229 120 26 41 206 — 1,582 
Less than 66058 63 32 23 7 9 57 — 249 
No Score59 32 22 11 9 22 193 — 348 
Total consumer direct loans1,934 2,161 1,094 505 87 169 558 — 6,508 
Credit cards
FICO Score:
750 and above— — — — — — 524 — 524 
660 to 749— — — — — — 402 — 402 
Less than 660— — — — — — 99 — 99 
No Score— — — — — — 1 — 1 
Total credit cards— — — — — — 1,026 — 1,026 
Consumer indirect loans
FICO Score:
750 and above— 2 — — — 19 — — 21 
660 to 749— — — — — 15 — — 15 
Less than 660— — — — — 7 — — 7 
No Score— — — — — — — — — 
Total consumer indirect loans— 2 — — — 41 — — 43 
Total consumer loans$8,775 $13,193 $4,933 $1,565 $311 $2,490 $5,101 $561 $36,929 
(a)Accrued interest of $135 million and $103 million as of June 30, 2023, and December 31, 2022, respectively, presented in Other Assets on the Consolidated Balance Sheets, was excluded from the amortized cost basis disclosed in this table.
Schedule of Past Due Loans Including Current Loans
The following aging analysis of past due and current loans as of June 30, 2023, and December 31, 2022, provides further information regarding Key’s credit exposure.

Aging Analysis of Loan Portfolio(a)
As of June 30, 2023
Current (b)
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 (b)
Total
Loans (c)
Dollars in millions
LOAN TYPE
Commercial and industrial$59,794 $17 $19 $41 $188 $265 $60,059 
Commercial real estate:
Commercial mortgage15,964 7 2 10 65 84 16,048 
Construction2,646 — — — — — 2,646 
Total commercial real estate loans18,610 7 2 10 65 84 18,694 
Commercial lease financing3,778 22 — — 1 23 3,801 
Total commercial loans$82,182 $46 $21 $51 $254 $372 $82,554 
Real estate — residential mortgage$21,553 $6 $5 $— $73 $84 $21,637 
Home equity loans7,395 24 7 6 97 134 7,529 
Consumer direct loans6,227 11 9 7 3 30 6,257 
Credit cards979 6 4 9 3 22 1,001 
Consumer indirect loans32 — — — 1 1 33 
Total consumer loans$36,186 $47 $25 $22 $177 $271 $36,457 
Total loans$118,368 $93 $46 $73 $431 $643 $119,011 
(a)Amounts in table represent amortized cost and exclude loans held for sale.
(b)Accrued interest of $500 million presented in “Accrued income and other assets” on the Consolidated Balance Sheets is excluded from the amortized cost basis disclosed in this table.
(c)Net of unearned income, net of deferred fees and costs, and unamortized discounts and premiums.

As of December 31, 2022
Current (b)
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 (b)
Total
Loans (c)
Dollars in millions
LOAN TYPE
Commercial and industrial$59,366 $43 $33 $31 $174 $281 $59,647 
Commercial real estate:
Commercial mortgage16,305 16 2 8 21 47 16,352 
Construction2,530 — — — — — 2,530 
Total commercial real estate loans18,835 16 2 8 21 47 18,882 
Commercial lease financing3,928 3 1 3 1 8 3,936 
Total commercial loans$82,129 $62 $36 $42 $196 $336 $82,465 
Real estate — residential mortgage$21,307 $13 $3 $1 $77 $94 $21,401 
Home equity loans7,804 27 8 5 107 147 7,951 
Consumer direct loans6,478 15 7 5 3 30 6,508 
Credit cards1,007 5 4 7 3 19 1,026 
Consumer indirect loans42 — — — 1 1 43 
Total consumer loans$36,638 $60 $22 $18 $191 $291 $36,929 
Total loans$118,767 $122 $58 $60 $387 $627 $119,394 
(a)Amounts in table represent amortized cost and exclude loans held for sale.
(b)Accrued interest of $417 million presented in “Accrued income and other assets” on the Consolidated Balance Sheets is excluded from the amortized cost basis disclosed in this table.
(c)Net of unearned income, net of deferred fees and costs, and unamortized discounts and premiums.
Schedule of Modified Financing Receivables
The following table shows the amortized cost basis at the end of the reporting period of the loans modified to borrowers experiencing financial difficulty, disaggregated by class of loan and type of concession granted. The table does not include those modifications that only resulted in an insignificant payment delay. The table does not include consumer loans that are still within a trial modification period. Trial modifications may be done for consumer borrowers where a trial payment plan period is offered in advance of a permanent loan modification. As of June 30, 2023, there were 93 loans totaling $10 million in a trial modification period.

Commitments outstanding to lend additional funds to borrowers experiencing financial difficulty whose loans were modified were $38 million at June 30, 2023.
As of June 30, 2023Interest Rate ReductionTerm ExtensionOtherCombinationTotal
Dollars in millionsAmortized Cost BasisAmortized Cost BasisAmortized Cost BasisAmortized Cost BasisAmortized Cost Basis% of Total Loan Type
LOAN TYPE
Commercial and Industrial$— $144 $19 $5 $168 0.28 %
Commercial real estate:
Commercial mortgage— 7 — — 7 0.04 
Construction— — — — — — 
Total commercial real estate loans— 7 — — 7 0.04 
Commercial lease financing— — — — — — 
Total commercial loans$— $151 $19 $5 $175 0.21 %
Real estate — residential mortgage— — 1 5 6 0.03 
Home equity loans1 — 1 3 5 0.07 
Consumer direct loans— 1 — 1 2 0.03 
Credit cards— — — 2 2 0.20 
Consumer indirect loans— — — — — — 
Total consumer loans1 1 2 11 15 0.04 
Total loans$1 $152 $21 $16 $190 0.16 %
The following table summarizes the financial impacts of loan modifications made to specific loans during the three and six months ended June 30, 2023.
Three months ended June 30, 2023Weighted-average Interest Rate ReductionWeighted-average Term Extension (in years)
LOAN TYPE
Commercial and Industrial(2.02)%0.17
Commercial mortgage— %0.09
Real estate — residential mortgage(2.15)%6.11
Home equity loans(4.16)%6.78
Consumer direct loans(4.54)%0.66
Credit cards(9.36)%0.25
Consumer indirect loans(0.66)%0.38
Six months ended June 30, 2023Weighted-average Interest Rate ReductionWeighted-average Term Extension (in years)
LOAN TYPE
Commercial and Industrial(3.85)%0.31
Commercial mortgage— %1.01
Real estate — residential mortgage(2.06)%6.36
Home equity loans(4.26)%6.65
Consumer direct loans(4.05)%0.72
Credit cards(12.82)%0.50
Consumer indirect loans(0.66)%0.42
The following table depicts the performance of loans that have been modified for borrowers experiencing financial difficulty since the adoption of ASU 2022-02 on January 1, 2023.
As of June 30, 2023Current30-89
Days Past
Due		90 and
Greater
Days Past
Due		Total
Dollars in millions
LOAN TYPE
Commercial and Industrial$156 $5 $7 $168 
Commercial real estate
Commercial mortgage7 — — 7 
Construction— — — — 
Total commercial real estate loans163 5 7 175 
Commercial lease financing— — — — 
Total commercial loans163 5 7 175 
Real estate — residential mortgage5 — 1 6 
Home equity loans5 — — 5 
Consumer direct loans2 — — 2 
Credit cards2 — — 2 
Consumer indirect loans— — — — 
Total consumer loans$14 $— $1 $15 
Total loans$177 $5 $8 $190 
A further breakdown of TDRs included in nonperforming loans by loan category for the period indicated are as follows:
June 30, 2022
Number of
Loans
Pre-modification
Outstanding
Recorded
Investment
Post-modification
Outstanding
Recorded
Investment
Dollars in millions
LOAN TYPE
Nonperforming:
Commercial and industrial$40 $25 $12 
Commercial real estate:
Commercial mortgage3 50 23 
Total commercial real estate loans3 50 23 
Total commercial loans43 75 35 
Real estate — residential mortgage224 27 25 
Home equity loans486 32 29 
Consumer direct loans172 2 2 
Credit cards345 2 2 
Consumer indirect loans20 2 1 
Total consumer loans1,247 65 59 
Total nonperforming TDRs1,290 140 94 
Prior-year accruing:(a)
Commercial and industrial11 — — 
Commercial real estate
Commercial mortgage1 — — 
Total commercial real estate loans1 — — 
Total commercial loans12 — — 
Real estate — residential mortgage457 42 35 
Home equity loans1,612 99 76 
Consumer direct loans253 4 3 
Credit cards607 4 2 
Consumer indirect loans113 12 6 
Total consumer loans3,042 161 122 
Total prior-year accruing TDRs3,054 161 122 
Total TDRs$4,344 $301 $216 
(a)All TDRs that were restructured prior to January 1, 2022 are fully accruing.
Schedule of 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 June 30,Six months ended June 30,
Dollars in millions2023202220232022
Balance at beginning of period$276 $166 $225 $160 
Provision (credit) for losses on off balance sheet exposures15 7 66 13 
Balance at end of period$291 $173 $291 $173 
Schedule of 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 period indicated:

Three Months Ended June 30,Six Months Ended June 30,
Dollars in millions20222022
Commercial loans:
Extension of Maturity Date$— $— 
Payment or Covenant Modification/Deferment— 1 
Bankruptcy Plan Modification— — 
Increase in new commitment or new money— — 
Total$— $1 
Consumer loans:
Interest rate reduction$3 $4 
Other6 15 
Total$9 $19 
Total TDRs$9 $20 
Schedule 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 period indicated:
Three Months Ended June 30,Six Months Ended June 30,
Dollars in millions20222022
Balance at beginning of the period$219 $220 
Additions11 22 
Payments(12)(24)
Charge-offs(2)(2)
Balance at end of period$216 $216