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Fair Value Measurements (Tables)
 6 Months Ended
Jun. 30, 2023
Fair Value Disclosures [Abstract]  
Schedule of Fair Value of Assets and Liabilities Measured on Recurring Basis The following tables present these assets and liabilities at June 30, 2023, and December 31, 2022.
June 30, 2023December 31, 2022
Level 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Dollars in millions
ASSETS MEASURED ON A RECURRING BASIS
Trading account assets:
U.S. Treasury, agencies and corporations$— $854 $— $854 $— $698 $— $698 
States and political subdivisions— 78 — 78 — 33 — 33 
Other mortgage-backed securities— 242 — 242 — 84 — 84 
Other securities— 1 — 1 — — — — 
Total trading account securities— 1,175 — 1,175 — 815 — 815 
Commercial loans— 2 — 2 — 14 — 14 
Total trading account assets— 1,177 — 1,177 — 829 — 829 
Securities available for sale:
U.S. Treasury, agencies and corporations— 9,489 — 9,489 — 9,415 — 9,415 
States and political subdivisions— — — — — — — — 
Agency residential collateralized mortgage obligations— 15,615 — 15,615 — 16,433 — 16,433 
Agency residential mortgage-backed securities— 3,749 — 3,749 — 3,920 — 3,920 
Agency commercial mortgage-backed securities— 9,055 — 9,055 — 9,349 — 9,349 
Other securities— — — — — — — — 
Total securities available for sale$— $37,908 $— $37,908 $— $39,117 $— $39,117 
Other investments:
Principal investments:
Direct$— $— $1 $1 $— $— $1 $1 
Indirect (measured at NAV) (a)
— — — 18 — — — 34 
Total principal investments— — 1 19 — — 1 35 
Equity investments:
Direct— — 2 2 4 — 2 6 
Direct (measured at NAV) (a)
— — — 34 — — — 32 
Indirect (measured at NAV) (a)
— — — 4 — — — 4 
Total equity investments— — 2 40 4 — 2 42 
Total other investments— — 3 59 4 — 3 77 
Loans, net of unearned income (residential)— — 9 9 — — 9 9 
Loans held for sale (residential)— 67 — 67 — 24 — 24 
Derivative assets:
Interest rate— 202 5 207 — 301 2 303 
Foreign exchange123 18 — 141 112 23 — 136 
Commodity— 867 — 867 — 1,328 — 1,328 
Credit— — — — — — 1 1 
Other— 7 1 8 — 13 — 13 
Derivative assets123 1,094 6 1,223 112 1,666 3 1,781 
Netting adjustments (b)
— — — (967)— — — (757)
Total derivative assets123 1,094 6 256 112 1,666 3 1,024 
Total assets on a recurring basis at fair value$123 $40,246 $18 $39,476 $116 $41,636 $15 $41,080 
LIABILITIES MEASURED ON A RECURRING BASIS
Bank notes and other short-term borrowings:
Short positions$11 $688 $— $699 $126 $509 $— $635 
Derivative liabilities:
Interest rate— 1,321 — 1,321 — 1,307 — 1,307 
Foreign exchange105 18 — 123 107 24 — 131 
Commodity— 842 — 842 — 1,304 — 1,304 
Credit— 9 — 9 — — 3 3 
Other— 4 — 4 — 5 — 5 
Derivative liabilities105 2,194 — 2,299 107 2,640 3 2,750 
Netting adjustments (b)
— — — (751)— — — (1,262)
Total derivative liabilities105 2,194 — 1,548 107 2,640 3 1,488 
Total liabilities on a recurring basis at fair value$116 $2,882 $— $2,247 $233 $3,149 $3 $2,123 
(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.
Schedule of 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 June 30, 2023, as well as financial support provided for the three and six months ended June 30, 2023, and June 30, 2022.
   Financial support provided
   Three months ended June 30,Six months ended June 30,
 June 30, 20232023202220232022
Dollars in millions
Fair
Value
Unfunded
Commit-ments		Funded
Commit-ments
Funded
Other
Funded
Commit-ments
Funded
Other
Funded
Commit-ments
Funded
Other
Funded
Commit-ments
Funded
Other
INVESTMENT TYPE
Direct investments$1 $— $— $— $— $— $— $— $— $— 
Indirect investments (measured at NAV) (a)
18 1 — — — — — — — — 
Total$19 $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 June 30, 2023, 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.
Schedule of 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 and six months ended June 30, 2023, and June 30, 2022. 
Dollars in millionsBeginning of Period BalanceGains (Losses) Included in Other Comprehensive IncomeGains (Losses) Included in EarningsPurchasesSalesSettlementsTransfers OtherTransfers into Level 3Transfers out of Level 3End of Period BalanceUnrealized Gains (Losses) Included in Earnings
Six months ended June 30, 2023
Other investments
Principal investments
Direct (a)
$1 $— $— $— $— $— $— $—   $—   $1 $— 
Other indirect— — — — — — — —   —   — — 
Equity investments
Direct (a)
2 — — — — — — — — 2 — 
Loans, net of unearned income (residential)9 — — — — — — — — 9 — 
Derivative instruments (b)
Interest rate2 — (17)
(c)
18 — — — (2)
(d)
4 
(d)
5 — 
Credit(2)— — 
(c)
— 2 — — —   —   — — 
Other (e)
— — — 
(c)
— — — 1 — — 1 — 
Three months ended June 30, 2023
Other investments
Principal investments
Direct (a)
$1 $— $— $— $— $— $— $—   $—   $1 $— 
Other indirect— — — — — — — —   —   — — 
Equity investments
Direct (a)
2 — — — — — — — — 2 — 
Loans, net of unearned income (residential)9 — — — — — — — — 9 — 
Derivative instruments (b)
Interest rate13 — (23)
(c)
— 1 — — 5 
(d)
9 
(d)
5 — 
Credit(2)— — 
(c)
— 2 — — —   —   — — 
Other (e)
1 — — 
(c)
— — — — — — 1 — 
Dollars in millionsBeginning of Period BalanceGains (Losses) Included in Other Comprehensive IncomeGains (Losses) Included in EarningsPurchasesSalesSettlementsTransfers OtherTransfers into Level 3Transfers out of Level 3End of Period BalanceUnrealized Gains (Losses) Included in Earnings
Six months ended June 30, 2022
Other investments
Principal investments
Direct (a)
$1 $— $— $— $— $— $— $— $— $1 $— 
Equity investments
Direct (a)
9 — (3)— — — — — — 6 (3)
Loans, net of unearned income (residential)11 — — — — — — — — 11 — 
Derivative instruments (b)
Interest rate33 — (55)
(c)
4 (2)— — 30 
(d) 
(13)
(d) 
(3)— 
Credit(6)— 3 
(c)
— — — —   (3)— 
Other (e)
5 — (1)
(c)
— — — (3)— — 1 — 
Three months ended June 30, 2022
Other investments
Principal investments
Direct (a)
$1 $— $— $— $— $— $— $—   $—   $1 $— 
Equity investments
Direct (a)
7 (1)— — — — — — 6 (1)
Loans, net of unearned income (residential)11 — — — — — — — — 11 — 
Derivative instruments (b)
Interest rate43 — (44)
(c)
2 (1)1 
(d) 
(4)
(d) 
(3)— 
Credit(5)— 2 
(c)
— — — — —   — 
  
(3)— 
Other (e)
(2)— (1)
(c)
— — 4 — — 1 — 
(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 instruments 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.
Schedule of 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 June 30, 2023, and December 31, 2022:
 June 30, 2023December 31, 2022
Dollars in millionsLevel 1Level 2Level 3TotalLevel 1Level 2Level 3Total
ASSETS MEASURED ON A NONRECURRING BASIS
Collateral-dependent loans$— $— $68 $68 $— $— $17 $17 
Accrued income and other assets— — 15 15 — — 14 14 
Total assets on a nonrecurring basis at fair value$— $— $83 $83 $— $— $31 $31 
Schedule of 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 June 30, 2023, and December 31, 2022, along with the valuation
techniques used, are shown in the following table:
Level 3 Asset (Liability) 
Valuation 
Technique
Significant
Unobservable Input
Range (Weighted-Average) (a), (b)
Dollars in millions
June 30, 2023December 31, 2022June 30, 2023December 31, 2022
Recurring    
Loans, net of unearned income (residential)$9 $9 Market comparable pricingComparability factor
62.91 - 86.12% (71.79%)
61.00-86.58% (72.21%)
Derivative instruments:
Interest rate5 2 Discounted cash flowsProbability of default
.02 - 100% (9.50%)
.02 - 100% (8.00%)
Loss given default
0 - 1 (.494)
0 - 1 (.492)
Insignificant level 3 assets, net of liabilities(c)
4 1 
Nonrecurring   
Collateral-dependent loans68 17 Fair value of collateralDiscount rate
0 - 10.00% (2.00%)
0 - 85.00% (34.00%)
Accrued income and other assets:
OREO and other Level 3 assets (d)
15 14 Appraised valueAppraised valueN/MN/M
(a)The weighted average of significant unobservable inputs is calculated using a weighting relative to fair value.
(b)For significant unobservable inputs with no range, a single figure is reported to denote the single quantitative factor used.
(c)Represents the aggregate amount of Level 3 assets and liabilities measured at fair value on a recurring basis that are individually and in the aggregate insignificant. The amount includes certain equity investments and certain financial derivative assets and liabilities.
(d)Excludes amounts pertaining to mortgage servicing assets. No mortgage servicing assets required nonrecurring valuation adjustments as of June 30, 2023, and December 31, 2022. Refer to Note 8 (“Mortgage Servicing Assets”) for significant unobservable inputs pertaining to these assets.
Schedule of Fair Value Disclosures of Financial Instruments
The Levels in the fair value hierarchy ascribed to our financial instruments and the related carrying amounts at June 30, 2023, and December 31, 2022, are shown in the following tables. Assets and liabilities are further arranged by measurement category.
 June 30, 2023
  Fair Value
Dollars in millions
Carrying
Amount
Level 1Level 2Level 3
Measured
at NAV
Netting
Adjustment
 Total
ASSETS (by measurement category)
Fair value - net income
Trading account assets (b)
$1,177 $— $1,177 $— $— $—   $1,177 
Other investments (b)
1,474 — — 1,418 56 —   1,474 
Loans, net of unearned income (residential) (d)
9 — — 9 — —   9 
Loans held for sale (residential) (b)
67 — 67 — — —   67 
Derivative assets - trading (b)
250 123 1,059 6 — (938)
(f) 
250 
Fair value - OCI
Securities available for sale (b)
37,908 — 37,908 — — —   37,908 
Derivative assets - hedging (b)(g)
6 — 35 — — (29)
(f) 
6 
Amortized cost
Held-to-maturity securities (c)
9,189 — 8,575 — — —   8,575 
Loans, net of unearned income (d)
117,522 — — 111,904 — —   111,904 
Loans held for sale (b)
1,063 — — 1,063 — — 1,063 
Other
Cash and other short-term investments (a)
9,717 9,717 — — — — 9,717 
LIABILITIES (by measurement category)
Fair value - net income
Derivative liabilities - trading (b)
$1,552 $105 $2,182 $1 $— $(736)
(f) 
$1,552 
Fair value - OCI
Derivative liabilities - hedging (b)(g)
(4)— 11 — — (15)
(f) 
(4)
Amortized cost
Time deposits (e)
15,905 — 16,020 — — —   16,020 
Short-term borrowings (a)
8,651 11 8,640 — — —   8,651 
Long-term debt (e)
22,071 11,547 9,207 — — —   20,754 
Other
Deposits with no stated maturity (a)
129,227 — 129,227 — — — 
  
129,227 
December 31, 2022
 Fair Value
Dollars in millions
Carrying
Amount
Level 1Level 2Level 3
Measured
at NAV
Netting
Adjustment
 Total
ASSETS (by measurement category)
Fair value - net income
Trading account assets (b)
$829 $— $829 $— $— $— $829 
Other investments (b)
1,308 4 — 1,234 70 — 1,308 
Loans, net of unearned income (residential) (d)
9 — — 9 — — 9 
Loans held for sale (residential) (b)
24 — 24 — — — 24 
Derivative assets - trading (b)
927 $112 1,552 3 — (740)
(f) 
927 
Fair value - OCI
Securities available for sale (b)
39,117 — 39,117 — — — 39,117 
Derivative assets - hedging (b)(g)
97 — 114 — — (17)
(f) 
97 
Amortized cost
Held-to-maturity securities (c)
8,710 — 8,113 — — — 8,113 
Loans, net of unearned income (d)
118,048 — — 112,590 — — 112,590 
Loans held for sale (b)
939 — — 939 — — 939 
Other
Cash and other short-term investments (a)
3,319 3,319 — — — — 3,319 
LIABILITIES (by measurement category)
Fair value - net income
Derivative liabilities - trading (b)
$1,485 $107 $2,637 $3 $— $(1,262)
(f) 
$1,485 
Fair value - OCI
Derivative liabilities - hedging (b)(g)
3 — 3 — — — 
(f) 
3 
Amortized cost
Time deposits (e)
7,373 — 7,392 — — — 7,392 
Short-term borrowings (a)
9,463 126 9,337 — — — 9,463 
Long-term debt (e)
19,307 12,196 6,685 — — — 18,881 
Other
Deposits with no stated maturity (a)
135,222 — 135,222 — — — 135,222 
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” within our 2022 Form 10-K Note 6 (“Fair Value Measurements”). 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 classified as Level 2 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 (“Summary of Significant Accounting Policies”) under the heading “Derivatives and Hedging” beginning on page 111 of our 2022 Form 10-K.