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Business Segment Reporting
 9 Months Ended
Sep. 30, 2024
Segment Reporting [Abstract]  
Business Segment Reporting
20. Business Segment Reporting

The following is description of the segments and their primary businesses at September 30, 2024.

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, mortgage and home equity, student loan refinancing, credit card, treasury services, and business advisory services. In addition, wealth management and investment services are offered to assist institutional, non-profit, and high-net-worth clients with their banking, trust, portfolio management, 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 borrowing, cash management, and capital markets needs of middle market clients within Key’s 15-state branch footprint. The Institutional operating segment operates nationally in providing lending, equipment financing, and banking products and services to large corporate and institutional clients. The industry coverage and product teams have established expertise in the following sectors: Consumer, Energy, Healthcare, Industrial, Public Sector, Real Estate, and Technology. It is also a significant, national, commercial real estate lender and third-party servicer of commercial mortgage loans and a special servicer of CMBS. The Institutional operating segment is also a significant, national, commercial real estate lender and third-party master and special servicer of commercial mortgage loans. The operating segment also includes the KBCM platform which provides a broad suite of capital markets products and services including syndicated finance, debt and equity underwriting, fixed income and equity sales and trading, derivatives, foreign exchange, mergers & acquisition and other 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 represent 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.
Developing and applying the methodologies that we use to allocate items among our lines of business is a dynamic process. Accordingly, financial results may be revised periodically to reflect enhanced alignment of expense base allocation 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- and nine-month periods ended September 30, 2024, and September 30, 2023. Capital is assigned to each business segment based on a combination of regulatory and economic equity.
Three months ended September 30,Consumer BankCommercial BankOtherTotal Key
Dollars in millions20242023202420232024202320242023
SUMMARY OF OPERATIONS
Net interest income (TE)$584 $534 $460 $446 $(80)$(57)$964 $923 
Noninterest income230 241 408 363 (907)39 (269)643 
Total revenue (TE) (a)
814 775 868 809 (987)(18)695 1,566 
Provision for credit losses52 14 41 68 2 (1)95 81 
Depreciation and amortization expense17 21 18 21 18 13 53 55 
Other noninterest expense632 655 427 412 (18)(12)1,041 1,055 
Income (loss) from continuing operations before income taxes (TE)
113 85 382 308 (989)(18)(494)375 
Allocated income taxes and TE adjustments
27 20 82 68 (192)(15)(83)73 
Income (loss) from continuing operations86 65 300 240 (797)(3)(411)302 
Income (loss) from discontinued operations, net of taxes
— — — — 1 1 1 1 
Net income (loss)$86 $65 $300 $240 $(796)$(2)$(410)$303 
AVERAGE BALANCES (b)
Loans and leases$38,332 $41,610 $67,452 $75,598 $460 $419 $106,244 $117,627 
Total assets (a)
41,188 44,429 76,395 85,930 70,026 61,982 187,609 192,341 
Deposits86,431 82,683 58,696 56,078 2,644 6,064 147,771 144,825 
OTHER FINANCIAL DATA
Net loan charge-offs (b)
$54 $36 $99 $35 $1 $— $154 $71 
Return on average allocated equity (b)
10.34 %7.42 %11.98 %9.11 %(125.18)%11.90 %(10.35)%8.66 %
Return on average allocated equity10.34 7.42 11.98 9.11 (125.02)7.93 (10.32)8.69 
Average full-time equivalent employees (c)
7,388 7,666 2,387 2,549 7,030 7,451 16,805 17,666 
(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.

Nine months ended September 30,Consumer BankCommercial BankOtherTotal Key
Dollars in millions20242023202420232024202320242023
SUMMARY OF OPERATIONS
Net interest income (TE)$1,651 $1,677 $1,268 $1,414 $(170)$(76)$2,749 $3,015 
Noninterest income689 709 1,167 1,079 (851)72 1,005 1,860 
Total revenue (TE) (a)
2,340 2,386 2,435 2,493 (1,021)(4)3,754 4,875 
Provision for credit losses83 106 231 283 (18)(2)296 387 
Depreciation and amortization expense58 62 59 67 44 47 161 176 
Other noninterest expense1,943 1,938 1,258 1,213 (46)35 3,155 3,186 
Income (loss) from continuing operations before income taxes (TE)
256 280 887 930 (1,001)(84)142 1,126 
Allocated income taxes and TE adjustments
61 67 176 196 (176)(36)61 227 
Income (loss) from continuing operations195 213 711 734 (825)(48)81 899 
Income (loss) from discontinued operations, net of taxes
— — — — 2 3 2 3 
Net income (loss)$195 $213 $711 $734 $(823)$(45)$83 $902 
AVERAGE BALANCES (b)
Loans and leases$39,139 $42,118 $69,105 $76,816 $494 $437 $108,738 $119,371 
Total assets (a)
41,966 44,945 78,234 86,727 66,491 61,551 186,691 193,223 
Deposits85,305 82,535 57,467 53,983 2,182 7,198 144,954 143,716 
OTHER FINANCIAL DATA
Net loan charge-offs (b)
$144 $93 $200 $76 (18)(1)$326 $168 
Return on average allocated equity (b)
7.64 %8.04 %9.50 %9.37 %(68.90)%(713.06)%0.72 %8.57 %
Return on average allocated equity7.64 8.04 9.50 9.37 (68.74)(668.50)0.74 8.60 
Average full-time equivalent employees (c)
7,360 7,850 2,347 2,530 7,027 7,500 16,734 17,880 
(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.