Ohio
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34-6542451
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State or other jurisdiction of incorporation or organization: | I.R.S. Employer Identification Number: |
127 Public Square,
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Cleveland,
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Ohio
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44114-1306
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Address of principal executive offices: | Zip Code: |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Common Shares, $1 par value
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KEY
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New York Stock Exchange
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Depositary Shares (each representing a 1/40th interest in a share of Fixed-to-Floating Rate
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KEY PrI
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New York Stock Exchange
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Perpetual Non-Cumulative Preferred Stock, Series E)
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Depositary Shares (each representing a 1/40th interest in a share of Fixed Rate Perpetual Non-
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KEY PrJ
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New York Stock Exchange
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Cumulative Preferred Stock, Series F)
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Depositary Shares (each representing a 1/40th interest in a share of Fixed Rate Perpetual Non-
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KEY PrK
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New York Stock Exchange
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Cumulative Preferred Stock, Series G)
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Large accelerated filer
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☒ | Accelerated filer | ☐ | Non-accelerated filer | ☐ | ||||||||||||
Smaller reporting company |
☐
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Emerging growth company |
☐
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Common Shares with a par value of $1 each | 976,472,556 shares | ||||
Title of class | Outstanding at October 29, 2020 |
Page Number | ||||||||
Item 1. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. |
PART II. OTHER INFORMATION | ||||||||
Item 1. | ||||||||
Item 1A. | ||||||||
Item 2. | ||||||||
Item 6. | ||||||||
ALCO: Asset/Liability Management Committee. | ISDA: International Swaps and Derivatives | ||||
ALLL: Allowance for loan and lease losses. | Association. | ||||
A/LM: Asset/liability management. | KCDC: Key Community Development Corporation. | ||||
AOCI: Accumulated other comprehensive income (loss). | KEF: Key Equipment Finance. | ||||
ARRC: Alternative Reference Rates Committee. | LGD: Loss given default. | ||||
ASC: Accounting Standards Codification. | LIBOR: London Interbank Offered Rate. | ||||
BHCs: Bank holding companies. | LIHTC: Low-income housing tax credit. | ||||
Board: KeyCorp Board of Directors. | LTV: Loan-to-value. | ||||
CCAR: Comprehensive Capital Analysis and Review. | Moody’s: Moody’s Investor Services, Inc. | ||||
CECL: Current expected credit losses. | MRC: Market Risk Committee. | ||||
CMBS: Commercial mortgage-backed securities. | MRM: Market Risk Management group. | ||||
CMO: Collateralized mortgage obligation. | N/A: Not applicable. | ||||
Common Shares: KeyCorp common shares, $1 par value. | NAV: Net asset value. | ||||
DCF: Discounted cash flow. | N/M: Not meaningful. | ||||
Dodd-Frank Act: Dodd-Frank Wall Street Reform and | NMTC: New market tax credit. | ||||
Consumer Protection Act of 2010. | NOW: Negotiable Order of Withdrawal. | ||||
EAD: Exposure at default. | NYSE: New York Stock Exchange. | ||||
EBITDA: Earnings before interest, taxes, depreciation, and | OCC: Office of the Comptroller of the Currency. | ||||
amortization. | OCI: Other comprehensive income (loss). | ||||
EPS: Earnings per share. | OREO: Other real estate owned. | ||||
ERM: Enterprise risk management. | PBO: Projected benefit obligation. | ||||
EVE: Economic value of equity. | PCD: Purchased credit deteriorated. | ||||
FASB: Financial Accounting Standards Board. | PCI: Purchased credit impaired. | ||||
FDIA: Federal Deposit Insurance Act, as amended. | PD: Probability of default. | ||||
FDIC: Federal Deposit Insurance Corporation. | PPP: Paycheck Protection Program. | ||||
Federal Reserve: Board of Governors of the Federal | S&P: Standard and Poor’s Ratings Services, | ||||
Reserve System. | a Division of The McGraw-Hill Companies, Inc. | ||||
FHLB: Federal Home Loan Bank of Cincinnati. | SEC: U.S. Securities and Exchange Commission. | ||||
FHLMC: Federal Home Loan Mortgage Corporation. | SOFR: Secured Overnight Financing Rate. | ||||
FICO: Fair Isaac Corporation. | TDR: Troubled debt restructuring. | ||||
FNMA: Federal National Mortgage Association, or Fannie | TE: Taxable-equivalent. | ||||
Mae. | U.S. Treasury: United States Department of the | ||||
GAAP: U.S. generally accepted accounting principles. | Treasury. | ||||
GNMA: Government National Mortgage Association, or | VaR: Value at risk. | ||||
Ginnie Mae. | VEBA: Voluntary Employee Beneficiary Association. | ||||
HTC: Historic tax credit. | VIE: Variable interest entity. |
2020 | 2019 | Nine months ended September 30, | |||||||||||||||||||||||||||
dollars in millions, except per share amounts | Third | Second | First | Fourth | Third | 2020 | 2019 | ||||||||||||||||||||||
FOR THE PERIOD | |||||||||||||||||||||||||||||
Interest income
|
$ | 1,119 | $ | 1,190 | $ | 1,251 | $ | 1,285 | $ | 1,317 | $ | 3,560 | $ | 3,950 | |||||||||||||||
Interest expense
|
119 | 172 | 270 | 306 | 345 | 561 | 1,020 | ||||||||||||||||||||||
Net interest income
|
1,000 | 1,018 | 981 | 979 | 972 | 2,999 | 2,930 | ||||||||||||||||||||||
Provision for credit losses
|
160 | 482 | 359 | 109 | 200 | 1,001 | 336 | ||||||||||||||||||||||
Noninterest income
|
681 | 692 | 477 | 651 | 650 | 1,850 | 1,808 | ||||||||||||||||||||||
Noninterest expense
|
1,037 | 1,013 | 931 | 980 | 939 | 2,981 | 2,921 | ||||||||||||||||||||||
Income (loss) from continuing operations before income taxes
|
484 | 215 | 168 | 541 | 483 | 867 | 1,481 | ||||||||||||||||||||||
Income (loss) from continuing operations attributable to Key
|
424 | 185 | 145 | 466 | 413 | 754 | 1,242 | ||||||||||||||||||||||
Income (loss) from discontinued operations, net of taxes
|
4 | 2 | 1 | 3 | 3 | 7 | 6 | ||||||||||||||||||||||
Net income (loss) attributable to Key
|
428 | 187 | 146 | 469 | 416 | 761 | 1,248 | ||||||||||||||||||||||
Income (loss) from continuing operations attributable to Key common shareholders
|
397 | 159 | 118 | 439 | 383 | 674 | 1,172 | ||||||||||||||||||||||
Income (loss) from discontinued operations, net of taxes
|
4 | 2 | 1 | 3 | 3 | 7 | 6 | ||||||||||||||||||||||
Net income (loss) attributable to Key common shareholders
|
401 | 161 | 119 | 442 | 386 | 681 | 1,178 | ||||||||||||||||||||||
PER COMMON SHARE
|
|||||||||||||||||||||||||||||
Income (loss) from continuing operations attributable to Key common shareholders
|
$ | .41 | $ | .16 | $ | .12 | $ | .45 | $ | .39 | $ | .70 | $ | 1.17 | |||||||||||||||
Income (loss) from discontinued operations, net of taxes
|
— | — | — | — | — | .01 | .01 | ||||||||||||||||||||||
Net income (loss) attributable to Key common shareholders (a)
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.41 | .17 | .12 | .45 | .39 | .70 | 1.18 | ||||||||||||||||||||||
Income (loss) from continuing operations attributable to Key common shareholders — assuming dilution
|
.41 | .16 | .12 | .45 | .38 | .69 | 1.16 | ||||||||||||||||||||||
Income (loss) from discontinued operations, net of taxes — assuming dilution
|
— | — | — | — | — | .01 | .01 | ||||||||||||||||||||||
Net income (loss) attributable to Key common shareholders — assuming dilution (a)
|
.41 | .17 | .12 | .45 | .39 | .70 | 1.17 | ||||||||||||||||||||||
Cash dividends paid
|
.185 | .185 | .185 | .185 | .185 | .555 | .525 | ||||||||||||||||||||||
Book value at period end
|
16.25 | 16.07 | 15.95 | 15.54 | 15.44 | 16.25 | 15.44 | ||||||||||||||||||||||
Tangible book value at period end
|
13.32 | 13.12 | 12.98 | 12.56 | 12.48 | 13.32 | 12.48 | ||||||||||||||||||||||
Weighted-average common shares outstanding (000)
|
967,804 | 967,147 | 967,446 | 973,450 | 988,319 | 967,632 | 998,268 | ||||||||||||||||||||||
Weighted-average common shares and potential common shares outstanding (000) (b)
|
973,988 | 972,141 | 976,110 | 984,361 | 998,328 | 974,280 | 1,007,900 | ||||||||||||||||||||||
AT PERIOD END
|
|||||||||||||||||||||||||||||
Loans
|
$ | 103,081 | $ | 106,159 | $ | 103,198 | $ | 94,646 | $ | 92,760 | $ | 103,081 | $ | 92,760 | |||||||||||||||
Earning assets
|
155,585 | 156,177 | 141,333 | 130,807 | 132,160 | 155,585 | 132,160 | ||||||||||||||||||||||
Total assets
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170,540 | 171,192 | 156,197 | 144,988 | 146,691 | 170,540 | 146,691 | ||||||||||||||||||||||
Deposits
|
136,746 | 135,513 | 115,304 | 111,870 | 111,649 | 136,746 | 111,649 | ||||||||||||||||||||||
Long-term debt
|
12,685 | 13,734 | 13,732 | 12,448 | 14,470 | 12,685 | 14,470 | ||||||||||||||||||||||
Key common shareholders’ equity
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15,822 | 15,642 | 15,511 | 15,138 | 15,216 | 15,822 | 15,216 | ||||||||||||||||||||||
Key shareholders’ equity
|
17,722 | 17,542 | 17,411 | 17,038 | 17,116 | 17,722 | 17,116 | ||||||||||||||||||||||
PERFORMANCE RATIOS — FROM CONTINUING OPERATIONS
|
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Return on average total assets
|
1.00 | % | .45 | % | .40 | % | 1.27 | % | 1.14 | % | .63 | % | 1.17 | % | |||||||||||||||
Return on average common equity
|
9.98 | 4.05 | 3.10 | 11.40 | 9.99 | 5.75 | 10.62 | ||||||||||||||||||||||
Return on average tangible common equity (c)
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12.19 | 4.96 | 3.82 | 14.09 | 12.38 | 7.06 | 13.23 | ||||||||||||||||||||||
Net interest margin (TE)
|
2.62 | 2.76 | 3.01 | 2.98 | 3.00 | 2.78 | 3.06 | ||||||||||||||||||||||
Cash efficiency ratio (c)
|
60.6 | 57.9 | 62.3 | 58.7 | 56.0 | 60.2 | 59.9 | ||||||||||||||||||||||
PERFORMANCE RATIOS — FROM CONSOLIDATED OPERATIONS
|
|||||||||||||||||||||||||||||
Return on average total assets
|
1.00 | % | .46 | % | .40 | % | 1.27 | % | 1.14 | % | .63 | % | 1.16 | % | |||||||||||||||
Return on average common equity
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10.08 | 4.10 | 3.12 | 11.48 | 10.07 | 5.81 | 10.68 | ||||||||||||||||||||||
Return on average tangible common equity (c)
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12.31 | 5.02 | 3.86 | 14.19 | 12.48 | 7.13 | 13.30 | ||||||||||||||||||||||
Net interest margin (TE)
|
2.62 | 2.76 | 3.00 | 2.97 | 2.98 | 2.78 | 3.05 | ||||||||||||||||||||||
Loan-to-deposit (d)
|
77.2 | 80.4 | 92.1 | 86.6 | 85.3 | 77.2 | 85.3 | ||||||||||||||||||||||
CAPITAL RATIOS AT PERIOD END
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Key shareholders’ equity to assets
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10.4 | % | 10.2 | % | 11.1 | % | 11.8 | % | 11.7 | % | 10.4 | % | 11.7 | % | |||||||||||||||
Key common shareholders’ equity to assets
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9.3 | 9.2 | 10.0 | 10.5 | 10.4 | 9.3 | 10.4 | ||||||||||||||||||||||
Tangible common equity to tangible assets (c)
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7.8 | 7.6 | 8.3 | 8.6 | 8.6 | 7.8 | 8.6 | ||||||||||||||||||||||
Common Equity Tier 1
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9.5 | 9.1 | 8.9 | 9.4 | 9.5 | 9.5 | 9.5 | ||||||||||||||||||||||
Tier 1 risk-based capital
|
10.9 | 10.5 | 10.2 | 10.9 | 10.9 | 10.9 | 10.9 | ||||||||||||||||||||||
Total risk-based capital
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13.3 | 12.8 | 12.2 | 12.8 | 12.9 | 13.3 | 12.9 | ||||||||||||||||||||||
Leverage
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8.7 | 8.8 | 9.8 | 9.9 | 9.9 | 8.7 | 9.9 | ||||||||||||||||||||||
TRUST ASSETS
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Assets under management
|
$ | 41,312 | $ | 39,722 | $ | 36,189 | $ | 40,833 | $ | 39,416 | $ | 41,312 | $ | 39,416 | |||||||||||||||
OTHER DATA
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Average full-time-equivalent employees
|
17,097 | 16,646 | 16,529 | 16,537 | 16,898 | 16,758 | 17,217 | ||||||||||||||||||||||
Branches
|
1,077 | 1,077 | 1,082 | 1,098 | 1,101 | 1,077 | 1,101 |
Ratios (including capital conservation buffer) | Regulatory Minimum Requirement |
Capital Conservation Buffer (b)
|
Regulatory Minimum With Capital Conservation Buffer |
KeyCorp September 30, 2020 (c)
|
||||||||||
Common Equity Tier 1 | 4.5 | % | 2.5 | % | 7.0 | % | 9.5 | % | ||||||
Tier 1 Capital | 6.0 | 2.5 | 8.5 | 10.9 | ||||||||||
Total Capital | 8.0 | 2.5 | 10.5 | 13.3 | ||||||||||
Leverage (a)
|
4.0 | N/A | 4.0 | 8.7 |
Prompt Corrective Action | Capital Category | ||||||||||
Ratio |
Well Capitalized (a)
|
Adequately Capitalized | |||||||||
Common Equity Tier 1 Risk-Based | 6.5 | % | 4.5 | % | |||||||
Tier 1 Risk-Based | 8.0 | 6.0 | |||||||||
Total Risk-Based | 10.0 | 8.0 | |||||||||
Tier 1 Leverage (b)
|
5.0 | 4.0 |
Three months ended September 30, 2020 | Three months ended September 30, 2019 | Change in Net interest income due to | |||||||||||||||||||||||||||||||||
dollars in millions |
Average
Balance
|
Interest (a)
|
Yield/
Rate (a)
|
Average
Balance |
Interest (a)
|
Yield/
Rate (a) |
Volume | Yield/Rate | Total | ||||||||||||||||||||||||||
ASSETS | |||||||||||||||||||||||||||||||||||
Loans (b), (c)
|
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Commercial and industrial (d)
|
$ | 57,067 | $ | 474 | 3.31 | % | $ | 48,322 | $ | 543 | 4.46 | % | $ | 88 | $ | (157) | $ | (69) | |||||||||||||||||
Real estate — commercial mortgage | 13,202 | 117 | 3.54 | 13,056 | 163 | 4.95 | 2 | (48) | (46) | ||||||||||||||||||||||||||
Real estate — construction | 1,987 | 18 | 3.57 | 1,463 | 19 | 5.22 | 6 | (7) | (1) | ||||||||||||||||||||||||||
Commercial lease financing | 4,488 | 35 | 3.10 | 4,497 | 42 | 3.68 | — | (7) | (7) | ||||||||||||||||||||||||||
Total commercial loans | 76,744 | 644 | 3.34 | 67,338 | 767 | 4.52 | 96 | (219) | (123) | ||||||||||||||||||||||||||
Real estate — residential mortgage | 8,398 | 73 | 3.46 | 6,256 | 62 | 3.97 | 19 | (8) | 11 | ||||||||||||||||||||||||||
Home equity loans | 9,580 | 91 | 3.82 | 10,488 | 132 | 4.97 | (11) | (30) | (41) | ||||||||||||||||||||||||||
Consumer direct loans | 4,403 | 56 | 5.07 | 2,548 | 45 | 6.99 | 26 | (15) | 11 | ||||||||||||||||||||||||||
Credit cards | 967 | 25 | 10.24 | 1,100 | 32 | 11.59 | (4) | (3) | (7) | ||||||||||||||||||||||||||
Consumer indirect loans | 4,827 | 44 | 3.66 | 4,226 | 43 | 4.10 | 6 | (5) | 1 | ||||||||||||||||||||||||||
Total consumer loans | 28,175 | 289 | 4.10 | 24,618 | 314 | 5.07 | 36 | (61) | (25) | ||||||||||||||||||||||||||
Total loans | 104,919 | 933 | 3.55 | 91,956 | 1,081 | 4.67 | 132 | (280) | (148) | ||||||||||||||||||||||||||
Loans held for sale | 1,924 | 18 | 3.61 | 1,558 | 18 | 4.65 | 4 | (4) | — | ||||||||||||||||||||||||||
Securities available for sale (b), (e)
|
24,941 | 115 | 1.90 | 21,867 | 136 | 2.52 | 17 | (38) | (21) | ||||||||||||||||||||||||||
Held-to-maturity securities (b)
|
8,677 | 53 | 2.44 | 10,684 | 64 | 2.41 | (12) | 1 | (11) | ||||||||||||||||||||||||||
Trading account assets | 686 | 3 | 2.08 | 884 | 7 | 3.00 | (1) | (3) | (4) | ||||||||||||||||||||||||||
Short-term investments | 12,525 | 1 | .04 | 2,861 | 16 | 2.19 | 13 | (28) | (15) | ||||||||||||||||||||||||||
Other investments (e)
|
640 | 2 | 1.49 | 624 | 3 | 1.82 | — | (1) | (1) | ||||||||||||||||||||||||||
Total earning assets | 154,312 | 1,125 | 2.93 | 130,434 | 1,325 | 4.05 | 153 | (353) | (200) | ||||||||||||||||||||||||||
Allowance for loan and lease losses | (1,696) | (881) | |||||||||||||||||||||||||||||||||
Accrued income and other assets | 16,195 | 14,605 | |||||||||||||||||||||||||||||||||
Discontinued assets | 752 | 957 | |||||||||||||||||||||||||||||||||
Total assets | $ | 169,563 | $ | 145,115 | |||||||||||||||||||||||||||||||
LIABILITIES | |||||||||||||||||||||||||||||||||||
NOW and money market deposit accounts
|
$ | 80,175 | 26 | .13 | $ | 64,595 | 154 | .94 | 30 | (158) | (128) | ||||||||||||||||||||||||
Savings deposits | 5,478 | 1 | .04 | 4,709 | 1 | .10 | — | — | — | ||||||||||||||||||||||||||
Certificates of deposit ($100,000 or more) | 3,862 | 16 | 1.60 | 7,625 | 45 | 2.37 | (18) | (11) | (29) | ||||||||||||||||||||||||||
Other time deposits | 3,735 | 11 | 1.17 | 5,449 | 27 | 1.96 | (7) | (9) | (16) | ||||||||||||||||||||||||||
Total interest-bearing deposits | 93,250 | 54 | .23 | 82,378 | 227 | 1.09 | 5 | (178) | (173) | ||||||||||||||||||||||||||
Federal funds purchased and securities sold under repurchase agreements
|
225 | — | .05 | 187 | — | .50 | — | — | — | ||||||||||||||||||||||||||
Bank notes and other short-term borrowings
|
761 | 1 | .68 | 626 | 4 | 2.04 | 1 | (4) | (3) | ||||||||||||||||||||||||||
Long-term debt (f), (g)
|
12,801 | 64 | 2.12 | 13,347 | 114 | 3.51 | (4) | (46) | (50) | ||||||||||||||||||||||||||
Total interest-bearing liabilities | 107,037 | 119 | .45 | 96,538 | 345 | 1.42 | 2 | (228) | (226) | ||||||||||||||||||||||||||
Noninterest-bearing deposits | 41,694 | 27,901 | |||||||||||||||||||||||||||||||||
Accrued expense and other liabilities | 2,350 | 2,605 | |||||||||||||||||||||||||||||||||
Discontinued liabilities (g)
|
752 | 957 | |||||||||||||||||||||||||||||||||
Total liabilities | 151,833 | 128,001 | |||||||||||||||||||||||||||||||||
EQUITY | |||||||||||||||||||||||||||||||||||
Key shareholders’ equity | 17,730 | 17,113 | |||||||||||||||||||||||||||||||||
Noncontrolling interests | — | 1 | |||||||||||||||||||||||||||||||||
Total equity | 17,730 | 17,114 | |||||||||||||||||||||||||||||||||
Total liabilities and equity | $ | 169,563 | $ | 145,115 | |||||||||||||||||||||||||||||||
Interest rate spread (TE) | 2.48 | % | 2.63 | % | |||||||||||||||||||||||||||||||
Net interest income (TE) and net interest margin (TE)
|
1,006 | 2.62 | % | 980 | 3.00 | % | $ | 151 | $ | (125) | 26 | ||||||||||||||||||||||||
TE adjustment (b)
|
6 | 8 | |||||||||||||||||||||||||||||||||
Net interest income, GAAP basis | $ | 1,000 | $ | 972 | |||||||||||||||||||||||||||||||
Nine months ended September 30, 2020 | Nine months ended September 30, 2019 | Change in Net interest income due to | |||||||||||||||||||||||||||||||||
dollars in millions |
Average
Balance
|
Interest (a)
|
Yield/
Rate (a)
|
Average
Balance |
Interest (a)
|
Yield/
Rate (a) |
Volume | Yield/Rate | Total | ||||||||||||||||||||||||||
ASSETS | |||||||||||||||||||||||||||||||||||
Loans (b), (c)
|
|||||||||||||||||||||||||||||||||||
Commercial and industrial (d)
|
$ | 55,676 | $ | 1,500 | 3.60 | % | $ | 47,191 | $ | 1,622 | 4.59 | % | $ | 263 | $ | (385) | $ | (122) | |||||||||||||||||
Real estate — commercial mortgage | 13,419 | 400 | 3.98 | 13,744 | 517 | 5.03 | (12) | (105) | (117) | ||||||||||||||||||||||||||
Real estate — construction | 1,804 | 55 | 4.06 | 1,482 | 60 | 5.37 | 12 | (17) | (5) | ||||||||||||||||||||||||||
Commercial lease financing | 4,546 | 107 | 3.15 | 4,490 | 124 | 3.66 | 2 | (19) | (17) | ||||||||||||||||||||||||||
Total commercial loans | 75,445 | 2,062 | 3.65 | 66,907 | 2,323 | 4.64 | 265 | (526) | (261) | ||||||||||||||||||||||||||
Real estate — residential mortgage | 7,801 | 210 | 3.59 | 5,866 | 176 | 4.00 | 54 | (20) | 34 | ||||||||||||||||||||||||||
Home equity loans | 9,894 | 301 | 4.07 | 10,726 | 404 | 5.03 | (30) | (73) | (103) | ||||||||||||||||||||||||||
Consumer direct loans | 4,089 | 165 | 5.38 | 2,256 | 125 | 7.42 | 81 | (41) | 40 | ||||||||||||||||||||||||||
Credit cards | 1,010 | 81 | 10.68 | 1,099 | 95 | 11.55 | (7) | (7) | (14) | ||||||||||||||||||||||||||
Consumer indirect loans | 4,779 | 135 | 3.78 | 3,951 | 122 | 4.13 | 24 | (11) | 13 | ||||||||||||||||||||||||||
Total consumer loans | 27,573 | 892 | 4.32 | 23,898 | 922 | 5.15 | 122 | (152) | (30) | ||||||||||||||||||||||||||
Total loans | 103,018 | 2,954 | 3.83 | 90,805 | 3,245 | 4.77 | 387 | (678) | (291) | ||||||||||||||||||||||||||
Loans held for sale | 2,090 | 58 | 3.68 | 1,329 | 46 | 4.64 | 22 | (10) | 12 | ||||||||||||||||||||||||||
Securities available for sale (b), (e)
|
22,297 | 365 | 2.25 | 21,059 | 400 | 2.52 | 23 | (58) | (35) | ||||||||||||||||||||||||||
Held-to-maturity securities (b)
|
9,274 | 171 | 2.46 | 11,035 | 199 | 2.41 | (32) | 4 | (28) | ||||||||||||||||||||||||||
Trading account assets | 837 | 16 | 2.55 | 988 | 24 | 3.22 | (3) | (5) | (8) | ||||||||||||||||||||||||||
Short-term investments | 7,412 | 14 | .24 | 2,930 | 49 | 2.23 | 33 | (68) | (35) | ||||||||||||||||||||||||||
Other investments (e)
|
642 | 3 | .72 | 639 | 11 | 2.18 | — | (8) | (8) | ||||||||||||||||||||||||||
Total earning assets | 145,570 | 3,581 | 3.30 | 128,785 | 3,974 | 4.12 | 430 | (823) | (393) | ||||||||||||||||||||||||||
Allowance for loan and lease losses | (1,403) | (880) | |||||||||||||||||||||||||||||||||
Accrued income and other assets | 15,579 | 14,414 | |||||||||||||||||||||||||||||||||
Discontinued assets | 794 | 1,010 | |||||||||||||||||||||||||||||||||
Total assets | $ | 160,540 | $ | 143,329 | |||||||||||||||||||||||||||||||
LIABILITIES | |||||||||||||||||||||||||||||||||||
NOW and money market deposit accounts
|
$ | 74,087 | 194 | .35 | $ | 62,827 | 431 | .92 | 67 | (304) | (237) | ||||||||||||||||||||||||
Savings deposits | 5,089 | 2 | .04 | 4,767 | 3 | .09 | — | (1) | (1) | ||||||||||||||||||||||||||
Certificates of deposit ($100,000 or more) | 5,036 | 74 | 1.96 | 8,046 | 140 | 2.33 | (47) | (19) | (66) | ||||||||||||||||||||||||||
Other time deposits | 4,321 | 49 | 1.53 | 5,506 | 78 | 1.90 | (15) | (14) | (29) | ||||||||||||||||||||||||||
Total interest-bearing deposits | 88,533 | 319 | .48 | 81,146 | 652 | 1.07 | 5 | (338) | (333) | ||||||||||||||||||||||||||
Federal funds purchased and securities sold under repurchase agreements
|
821 | 6 | .95 | 262 | 1 | .63 | 3 | 2 | 5 | ||||||||||||||||||||||||||
Bank notes and other short-term borrowings
|
1,674 | 11 | .87 | 706 | 13 | 2.43 | 10 | (12) | (2) | ||||||||||||||||||||||||||
Long-term debt (f), (g)
|
12,733 | 225 | 2.45 | 13,241 | 354 | 3.62 | (13) | (116) | (129) | ||||||||||||||||||||||||||
Total interest-bearing liabilities | 103,761 | 561 | .73 | 95,355 | 1,020 | 1.43 | 5 | (464) | (459) | ||||||||||||||||||||||||||
Noninterest-bearing deposits | 35,922 | 28,016 | |||||||||||||||||||||||||||||||||
Accrued expense and other liabilities | 2,518 | 2,493 | |||||||||||||||||||||||||||||||||
Discontinued liabilities (g)
|
794 | 1,010 | |||||||||||||||||||||||||||||||||
Total liabilities | 142,995 | 126,874 | |||||||||||||||||||||||||||||||||
EQUITY | |||||||||||||||||||||||||||||||||||
Key shareholders’ equity | 17,545 | 16,454 | |||||||||||||||||||||||||||||||||
Noncontrolling interests | — | 1 | |||||||||||||||||||||||||||||||||
Total equity | 17,545 | 16,455 | |||||||||||||||||||||||||||||||||
Total liabilities and equity | $ | 160,540 | $ | 143,329 | |||||||||||||||||||||||||||||||
Interest rate spread (TE) | 2.57 | % | 2.69 | % | |||||||||||||||||||||||||||||||
Net interest income (TE) and net interest margin (TE)
|
3,020 | 2.78 | % | 2,954 | 3.06 | % | $ | 425 | $ | (359) | $ | 66 | |||||||||||||||||||||||
TE adjustment (b)
|
21 | 24 | |||||||||||||||||||||||||||||||||
Net interest income, GAAP basis | $ | 2,999 | $ | 2,930 | |||||||||||||||||||||||||||||||
in millions | September 30, 2020 | June 30, 2020 | March 31, 2020 | December 31, 2019 | September 30, 2019 | ||||||||||||
Assets under management by investment type: | |||||||||||||||||
Equity | $ | 24,851 | $ | 23,303 | $ | 20,421 | $ | 25,271 | $ | 23,967 | |||||||
Securities lending | 130 | 171 | 188 | 309 | 455 | ||||||||||||
Fixed income | 11,767 | 11,318 | 10,911 | 11,000 | 10,954 | ||||||||||||
Money market | 4,564 | 4,930 | 4,669 | 4,253 | 4,040 | ||||||||||||
Total assets under management | $ | 41,312 | $ | 39,722 | $ | 36,189 | $ | 40,833 | $ | 39,416 | |||||||
dollars in millions | Outstanding as of September 30, 2020 | Outstanding as of June 30, 2020 | Percentage of total loans as of September 30, 2020 | |||||||||||
Consumer behavior (a)
|
$ | 5,020 | $ | 5,206 | 4.9 | % | ||||||||
Education | 1,568 | 1,592 | 1.5 | |||||||||||
Sports | 642 | 622 | .6 | |||||||||||
Restaurants | 396 | 413 | .4 | |||||||||||
Retail commercial real estate (b)
|
640 | 684 | .6 | |||||||||||
Nondurable retail (c)
|
632 | 752 | .6 | |||||||||||
Travel/Tourism (d)
|
2,786 | 2,994 | 2.7 | |||||||||||
Hotels | 851 | 905 | .8 | |||||||||||
Leveraged lending (e)
|
1,859 | 1,891 | 1.8 | |||||||||||
Oil and gas | 2,095 | 2,356 | 2.0 | |||||||||||
Upstream (reserve based) | 1,391 | 1,505 | 1.3 | |||||||||||
Midstream | 400 | 424 | .4 | |||||||||||
Downstream | 104 | 161 | .1 | |||||||||||
September 30, 2020 | Commercial and industrial |
Commercial
real estate
|
Commercial
lease financing
|
Total commercial
loans
|
Percent of
total
|
||||||||||||||||||||||||
dollars in millions | |||||||||||||||||||||||||||||
Industry classification: | |||||||||||||||||||||||||||||
Agriculture | $ | 1,027 | $ | 151 | $ | 108 | $ | 1,286 | 1.7 | % | |||||||||||||||||||
Automotive | 1,732 | 479 | 21 | 2,232 | 3.0 | ||||||||||||||||||||||||
Business products | 1,576 | 112 | 45 | 1,733 | 2.3 | ||||||||||||||||||||||||
Business services | 4,486 | 203 | 201 | 4,890 | 6.6 | ||||||||||||||||||||||||
Chemicals | 781 | 34 | 38 | 853 | 1.1 | ||||||||||||||||||||||||
Commercial real estate | 5,526 | 10,640 | 11 | 16,177 | 21.7 | ||||||||||||||||||||||||
Construction materials and contractors | 2,674 | 258 | 242 | 3,174 | 4.3 | ||||||||||||||||||||||||
Consumer discretionary | 3,963 | 395 | 379 | 4,737 | 6.3 | ||||||||||||||||||||||||
Consumer services | 6,863 | 904 | 532 | 8,299 | 11.1 | ||||||||||||||||||||||||
Equipment | 1,568 | 78 | 118 | 1,764 | 2.5 | ||||||||||||||||||||||||
Finance | 6,066 | 95 | 388 | 6,549 | 8.8 | ||||||||||||||||||||||||
Healthcare | 4,169 | 1,354 | 333 | 5,856 | 7.9 | ||||||||||||||||||||||||
Metals and mining | 1,034 | 54 | 39 | 1,127 | 1.5 | ||||||||||||||||||||||||
Oil and gas | 2,041 | 44 | 76 | 2,161 | 2.9 | ||||||||||||||||||||||||
Public exposure | 2,286 | 24 | 716 | 3,026 | 4.1 | ||||||||||||||||||||||||
Technology | 789 | 22 | 194 | 1,005 | 1.3 | ||||||||||||||||||||||||
Transportation | 1,480 | 147 | 644 | 2,271 | 3.0 | ||||||||||||||||||||||||
Utilities | 6,102 | 1 | 357 | 6,460 | 8.7 | ||||||||||||||||||||||||
Other | 862 | 11 | 8 | 881 | 1.2 | ||||||||||||||||||||||||
Total | $ | 55,025 | $ | 15,006 | $ | 4,450 | $ | 74,481 | 100.0 | % | |||||||||||||||||||
December 31, 2019 | Commercial and industrial |
Commercial
real estate
|
Commercial
lease financing
|
Total commercial
loans
|
Percent of
total
|
||||||||||||||||||||||||
dollars in millions | |||||||||||||||||||||||||||||
Industry classification: | |||||||||||||||||||||||||||||
Agriculture | $ | 1,036 | $ | 178 | $ | 112 | $ | 1,326 | 1.9 | % | |||||||||||||||||||
Automotive | 2,048 | 467 | 18 | 2,533 | 3.7 | ||||||||||||||||||||||||
Business products | 1,513 | 111 | 57 | 1,681 | 2.5 | ||||||||||||||||||||||||
Business services | 3,083 | 203 | 210 | 3,496 | 5.2 | ||||||||||||||||||||||||
Chemicals | 776 | 40 | 46 | 862 | 1.3 | ||||||||||||||||||||||||
Commercial real estate | 5,126 | 10,469 | 12 | 15,607 | 22.9 | ||||||||||||||||||||||||
Construction materials and contractors | 1,876 | 238 | 244 | 2,358 | 3.5 | ||||||||||||||||||||||||
Consumer discretionary | 3,646 | 400 | 467 | 4,513 | 6.6 | ||||||||||||||||||||||||
Consumer services | 4,567 | 863 | 535 | 5,965 | 8.8 | ||||||||||||||||||||||||
Equipment | 1,428 | 76 | 98 | 1,602 | 2.4 | ||||||||||||||||||||||||
Finance | 6,186 | 64 | 386 | 6,636 | 9.7 | ||||||||||||||||||||||||
Healthcare | 3,000 | 1,564 | 331 | 4,895 | 7.2 | ||||||||||||||||||||||||
Metals and mining | 1,117 | 44 | 41 | 1,202 | 1.8 | ||||||||||||||||||||||||
Oil and gas | 2,219 | 54 | 90 | 2,363 | 3.5 | ||||||||||||||||||||||||
Public exposure | 2,422 | 24 | 706 | 3,152 | 4.6 | ||||||||||||||||||||||||
Technology | 916 | 27 | 182 | 1,125 | 1.6 | ||||||||||||||||||||||||
Transportation | 1,298 | 218 | 737 | 2,253 | 3.3 | ||||||||||||||||||||||||
Utilities | 5,560 | 2 | 397 | 5,959 | 8.8 | ||||||||||||||||||||||||
Other | 478 | 7 | 19 | 504 | .7 | ||||||||||||||||||||||||
Total | $ | 48,295 | $ | 15,049 | $ | 4,688 | $ | 68,032 | 100.0 | % | |||||||||||||||||||
Geographic Region | Total |
Percent of
Total
|
Construction |
Commercial
Mortgage
|
|||||||||||||||||||||||||||||||
dollars in millions | West | Southwest | Central | Midwest | Southeast | Northeast | National | ||||||||||||||||||||||||||||
September 30, 2020 | |||||||||||||||||||||||||||||||||||
Nonowner-occupied: | |||||||||||||||||||||||||||||||||||
Retail properties | $ | 120 | $ | 16 | $ | 130 | $ | 123 | $ | 71 | $ | 462 | $ | 94 | $ | 1,016 | 6.8 | % | $ | 51 | $ | 965 | |||||||||||||
Multifamily properties | 612 | 247 | 863 | 855 | 1,353 | 1,540 | 255 | 5,725 | 38.1 | 1,461 | 4,264 | ||||||||||||||||||||||||
Health facilities | 75 | 74 | 85 | 88 | 169 | 478 | 338 | 1,307 | 8.7 | 73 | 1,234 | ||||||||||||||||||||||||
Office buildings | 274 | — | 276 | 153 | 183 | 651 | 144 | 1,681 | 11.2 | 48 | 1,633 | ||||||||||||||||||||||||
Warehouses | 53 | 33 | 84 | 70 | 47 | 260 | 138 | 685 | 4.6 | 59 | 626 | ||||||||||||||||||||||||
Manufacturing facilities | 41 | — | 36 | 5 | 40 | 34 | 33 | 189 | 1.3 | — | 189 | ||||||||||||||||||||||||
Hotels/Motels | 76 | — | 19 | — | 12 | 116 | 98 | 321 | 2.1 | 20 | 301 | ||||||||||||||||||||||||
Residential properties | — | — | — | 3 | — | 63 | — | 66 | .4 | 3 | 63 | ||||||||||||||||||||||||
Land and development | 17 | 5 | — | 2 | 2 | 28 | — | 54 | .4 | 30 | 24 | ||||||||||||||||||||||||
Other | 107 | 22 | 6 | 89 | 104 | 253 | 375 | 956 | 6.4 | 64 | 892 | ||||||||||||||||||||||||
Total nonowner-occupied | 1,375 | 397 | 1,499 | 1,388 | 1,981 | 3,885 | 1,475 | 12,000 | 80.0 | 1,809 | 10,191 | ||||||||||||||||||||||||
Owner-occupied | 841 | 4 | 286 | 482 | 65 | 1,328 | — | 3,006 | 20.0 | 138 | 2,868 | ||||||||||||||||||||||||
Total | $ | 2,216 | $ | 401 | $ | 1,785 | $ | 1,870 | $ | 2,046 | $ | 5,213 | $ | 1,475 | 15,006 | 100.0 | % | $ | 1,947 | $ | 13,059 | ||||||||||||||
Nonperforming loans | $ | 1 | — | — | $ | 8 | $ | 6 | $ | 45 | $ | 44 | $ | 104 | N/M | $ | 1 | $ | 103 | ||||||||||||||||
Accruing loans past due 90 days or more
|
— | — | — | 1 | — | 18 | — | 19 | N/M | 1 | 18 | ||||||||||||||||||||||||
Accruing loans past due 30 through 89 days
|
2 | $ | 2 | $ | 5 | 5 | 1 | 25 | — | 40 | N/M | 2 | 38 | ||||||||||||||||||||||
December 31, 2019 | |||||||||||||||||||||||||||||||||||
Nonowner-occupied: | |||||||||||||||||||||||||||||||||||
Retail properties | $ | 133 | $ | 41 | $ | 143 | $ | 155 | $ | 161 | $ | 580 | $ | 124 | $ | 1,337 | 8.9 | % | $ | 85 | $ | 1,252 | |||||||||||||
Multifamily properties | 698 | 354 | 767 | 795 | 1,205 | 1,350 | 225 | 5,394 | 35.8 | 1,189 | 4,205 | ||||||||||||||||||||||||
Health facilities | 76 | 44 | 104 | 93 | 163 | 497 | 405 | 1,382 | 9.2 | 40 | 1,342 | ||||||||||||||||||||||||
Office buildings | 214 | 7 | 293 | 132 | 244 | 725 | 134 | 1,749 | 11.6 | 69 | 1,680 | ||||||||||||||||||||||||
Warehouses | 51 | 34 | 51 | 51 | 46 | 238 | 134 | 605 | 4.0 | 7 | 598 | ||||||||||||||||||||||||
Manufacturing facilities | 36 | — | 38 | 4 | 40 | 43 | 54 | 215 | 1.4 | 5 | 210 | ||||||||||||||||||||||||
Hotels/Motels | 76 | — | 19 | — | 12 | 129 | 57 | 293 | 1.9 | 6 | 287 | ||||||||||||||||||||||||
Residential properties | — | — | — | 2 | — | 98 | — | 100 | .7 | 5 | 95 | ||||||||||||||||||||||||
Land and development | 20 | 5 | — | 3 | 2 | 9 | — | 39 | .3 | 34 | 5 | ||||||||||||||||||||||||
Other | 80 | 9 | 71 | 86 | 22 | 259 | 358 | 885 | 5.9 | 23 | 862 | ||||||||||||||||||||||||
Total nonowner-occupied | 1,384 | 494 | 1,486 | 1,321 | 1,895 | 3,928 | 1,491 | 11,999 | 79.7 | 1,463 | 10,536 | ||||||||||||||||||||||||
Owner-occupied | 833 | 4 | 285 | 536 | 71 | 1,321 | — | 3,050 | 20.3 | 95 | 2,955 | ||||||||||||||||||||||||
Total | $ | 2,217 | $ | 498 | $ | 1,771 | $ | 1,857 | $ | 1,966 | $ | 5,249 | $ | 1,491 | $ | 15,049 | 100.0 | % | $ | 1,558 | $ | 13,491 | |||||||||||||
Nonperforming loans | $ | 1 | — | — | $ | 7 | $ | 7 | $ | 20 | $ | 52 | $ | 87 | N/M | $ | 2 | $ | 85 | ||||||||||||||||
Accruing loans past due 90 days or more
|
— | — | — | 2 | — | 11 | — | 13 | N/M | 1 | 12 | ||||||||||||||||||||||||
Accruing loans past due 30 through 89 days
|
1 | — | — | 7 | — | 8 | — | 16 | N/M | 2 | 14 |
West – | Alaska, California, Hawaii, Idaho, Montana, Oregon, Washington, and Wyoming | ||||
Southwest – | Arizona, Nevada, and New Mexico | ||||
Central – | Arkansas, Colorado, Oklahoma, Texas, and Utah | ||||
Midwest – | Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, and Wisconsin | ||||
Southeast – | Alabama, Delaware, Florida, Georgia, Kentucky, Louisiana, Maryland, Mississippi, North Carolina, South Carolina, Tennessee, Virginia, Washington D.C., and West Virginia | ||||
Northeast – | Connecticut, Maine, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, and Vermont | ||||
National – | Accounts in three or more regions |
in millions | Real estate — residential mortgage | Home equity loans | Consumer direct loans | Credit cards | Consumer indirect loans | Total | ||||||||||||||
September 30, 2020 | ||||||||||||||||||||
New York | $ | 1,178 | $ | 2,539 | $ | 586 | $ | 346 | $ | 778 | $ | 5,427 | ||||||||
Ohio | 689 | 1,365 | 476 | 213 | 987 | 3,730 | ||||||||||||||
Washington | 1,635 | 1,364 | 239 | 86 | 16 | 3,340 | ||||||||||||||
Pennsylvania | 292 | 648 | 241 | 50 | 556 | 1,787 | ||||||||||||||
California | 388 | 15 | 268 | 4 | 21 | 696 | ||||||||||||||
Texas | 51 | 8 | 208 | 3 | 11 | 281 | ||||||||||||||
Colorado | 775 | 368 | 134 | 29 | 5 | 1,311 | ||||||||||||||
Connecticut | 952 | 351 | 83 | 24 | 150 | 1,560 | ||||||||||||||
Oregon | 671 | 792 | 95 | 41 | 3 | 1,602 | ||||||||||||||
Massachusetts | 239 | 46 | 93 | 5 | 476 | 859 | ||||||||||||||
Other | 1,845 | 1,992 | 1,972 | 169 | 2,029 | 8,007 | ||||||||||||||
Total | $ | 8,715 | $ | 9,488 | $ | 4,395 | $ | 970 | $ | 5,032 | $ | 28,600 | ||||||||
Real estate — residential mortgage | Home equity loans | Consumer direct loans | Credit cards | Consumer indirect loans | Total | |||||||||||||||
December 31, 2019 | ||||||||||||||||||||
New York | $ | 1,146 | $ | 2,655 | $ | 548 | $ | 404 | $ | 797 | $ | 5,550 | ||||||||
Ohio | 601 | 1,458 | 461 | 247 | 827 | 3,594 | ||||||||||||||
Washington | 1,126 | 1,546 | 252 | 102 | 8 | 3,034 | ||||||||||||||
Pennsylvania | 282 | 677 | 189 | 55 | 477 | 1,680 | ||||||||||||||
Connecticut | 1,029 | 375 | 68 | 26 | 154 | 1,652 | ||||||||||||||
Oregon | 517 | 852 | 94 | 48 | 2 | 1,513 | ||||||||||||||
Colorado | 544 | 428 | 109 | 34 | 2 | 1,117 | ||||||||||||||
Maine | 123 | 434 | 71 | 38 | 359 | 1,025 | ||||||||||||||
Indiana | 117 | 412 | 131 | 47 | 118 | 825 | ||||||||||||||
Massachusetts | 257 | 48 | 62 | 6 | 437 | 810 | ||||||||||||||
Other | 1,281 | 1,389 | 1,528 | 123 | 1,493 | 5,814 | ||||||||||||||
Total | $ | 7,023 | $ | 10,274 | $ | 3,513 | $ | 1,130 | $ | 4,674 | $ | 26,614 | ||||||||
in millions | Commercial |
Commercial
Real Estate
|
Commercial Lease Financing |
Residential
Real Estate
|
Consumer Direct | Total | ||||||||||||||
2020 | ||||||||||||||||||||
Third quarter | $ | 163 | $ | 1,999 | $ | 67 | $ | 1,235 | $ | 208 | $ | 3,672 | ||||||||
Second quarter | 82 | 2,661 | 47 | 925 | — | 3,715 | ||||||||||||||
First quarter | 55 | 2,022 | 81 | 546 | — | 2,704 | ||||||||||||||
Total | $ | 300 | $ | 6,682 | $ | 195 | $ | 2,706 | $ | 208 | $ | 10,091 | ||||||||
2019 | ||||||||||||||||||||
Fourth quarter | $ | 50 | $ | 3,138 | $ | 222 | $ | 559 | — | $ | 3,969 | |||||||||
Third quarter | 220 | 2,600 | 68 | 569 | $ | 247 | 3,704 | |||||||||||||
Second quarter | 154 | 1,864 | 96 | 329 | — | 2,443 | ||||||||||||||
First quarter | 301 | 1,536 | 34 | 225 | — | 2,096 | ||||||||||||||
Total | $ | 725 | $ | 9,138 | $ | 420 | $ | 1,682 | $ | 247 | $ | 12,212 | ||||||||
in millions | September 30, 2020 | June 30, 2020 | March 31, 2020 | December 31, 2019 | September 30, 2019 | ||||||||||||
Commercial real estate loans | $ | 380,110 | $ | 357,509 | $ | 354,919 | $ | 347,186 | $ | 317,152 | |||||||
Residential mortgage | 7,670 | 6,922 | 6,405 | 6,146 | 5,749 | ||||||||||||
Education loans | 540 | 567 | 594 | 625 | 658 | ||||||||||||
Commercial lease financing | 1,273 | 1,126 | 1,029 | 1,047 | 969 | ||||||||||||
Commercial loans | 652 | 623 | 614 | 591 | 590 | ||||||||||||
Consumer direct | 1,966 | 1,710 | 1,999 | 2,243 | 2,272 | ||||||||||||
Total | $ | 392,211 | $ | 368,457 | $ | 365,560 | $ | 357,838 | $ | 327,390 | |||||||
in millions | September 30, 2020 | December 31, 2019 | ||||||
FHLMC | $ | 7,311 | $ | 5,115 | ||||
FNMA | 10,152 | 12,308 | ||||||
GNMA | 13,300 | 14,112 | ||||||
Total (a)
|
$ | 30,763 | $ | 31,535 | ||||
dollars in millions | U.S. Treasury, Agencies, and Corporations |
States and
Political
Subdivisions
|
Agency Residential Collateralized Mortgage Obligations (a)
|
Agency Residential Mortgage-backed Securities (a)
|
Agency Commercial Mortgage-backed Securities (a)
|
Other Securities | Total |
Weighted-Average Yield (b)
|
||||||||||||||||||
September 30, 2020 | ||||||||||||||||||||||||||
Remaining maturity: | ||||||||||||||||||||||||||
One year or less | $ | 4,464 | $ | 3 | $ | 655 | $ | 1 | — | $ | 11 | $ | 5,134 | .33 | % | |||||||||||
After one through five years | — | — | 10,321 | 1,306 | $ | 3,812 | — | 15,439 | 2.26 | |||||||||||||||||
After five through ten years | — | — | 2,639 | 17 | 3,230 | 1 | 5,887 | 2.06 | ||||||||||||||||||
After ten years | — | — | 117 | 2 | 316 | — | 435 | 1.09 | ||||||||||||||||||
Fair value | $ | 4,464 | $ | 3 | $ | 13,732 | $ | 1,326 | $ | 7,358 | $ | 12 | $ | 26,895 | — | |||||||||||
Amortized cost | $ | 4,463 | $ | 3 | $ | 13,403 | $ | 1,256 | $ | 6,921 | $ | 8 | $ | 26,054 | 1.81 | % | ||||||||||
Weighted-average yield (b)
|
.15 | % | 4.47 | % | 1.89 | % | 2.78 | % | 2.55 | % | .05 | % | 1.81 | % | — | |||||||||||
Weighted-average maturity | .2 years | .2 years | 3.7 years | 3.4 years | 5.9 years | .7 years | 3.7 years | — | ||||||||||||||||||
December 31, 2019 | ||||||||||||||||||||||||||
Fair value | $ | 334 | $ | 4 | $ | 12,783 | $ | 1,714 | $ | 6,997 | $ | 11 | $ | 21,843 | — | |||||||||||
Amortized cost | 334 | 4 | 12,772 | 1,677 | 6,898 | 7 | 21,692 | 2.52 | % |
dollars in millions |
Agency Residential Collateralized Mortgage Obligations (a)
|
Agency Residential Mortgage-backed Securities (a)
|
Agency Commercial Mortgage-backed Securities (a)
|
Asset-backed securities |
Other
Securities
|
Total |
Weighted-Average Yield (b)
|
||||||||||||||||
September 30, 2020 | |||||||||||||||||||||||
Remaining maturity: | |||||||||||||||||||||||
One year or less | $ | 98 | — | — | $ | 1 | $ | 3 | $ | 102 | 2.65 | % | |||||||||||
After one through five years | 3,378 | $ | 270 | $ | 1,981 | 8 | 12 | 5,649 | 2.38 | ||||||||||||||
After five through ten years | 832 | 43 | 1,745 | — | — | 2,620 | 2.64 | ||||||||||||||||
After ten years | — | — | — | 13 | — | 13 | 1.17 | ||||||||||||||||
Amortized cost | $ | 4,308 | $ | 313 | $ | 3,726 | $ | 22 | $ | 15 | $ | 8,384 | 2.46 | % | |||||||||
Fair value | $ | 4,449 | $ | 324 | $ | 4,032 | $ | 22 | $ | 15 | $ | 8,842 | — | ||||||||||
Weighted-average yield (b)
|
2.12 | % | 2.50 | % | 2.86 | % | 1.71 | % | 2.15 | % | 2.46 | % | — | ||||||||||
Weighted-average maturity | 3.6 years | 4.4 years | 5.1 years | 19.1 years | 2.3 years | 4.3 years | — | ||||||||||||||||
December 31, 2019 | |||||||||||||||||||||||
Amortized cost | $ | 5,692 | $ | 409 | $ | 3,940 | 11 | $ | 15 | $ | 10,067 | 2.43 | % | ||||||||||
Fair value | 5,666 | 415 | 4,009 | 11 | 15 | 10,116 | — |
2020 | 2019 | |||||||||||||||||||
in thousands | Third | Second | First | Fourth | Third | |||||||||||||||
Shares outstanding at beginning of period | 975,947 | 975,319 | 977,189 | 988,538 | 1,003,114 | |||||||||||||||
Open market repurchases and return of shares under employee compensation plans | (1) | (19) | (7,862) | (12,968) | (15,076) | |||||||||||||||
Shares issued under employee compensation plans (net of cancellations) | 259 | 647 | 5,992 | 1,619 | 500 | |||||||||||||||
Shares outstanding at end of period | 976,205 | 975,947 | 975,319 | 977,189 | 988,538 | |||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||
Three months ended September 30, | Three months ended September 30, | ||||||||||||||||||||||||||||
in millions | High | Low | Mean | September 30, | High | Low | Mean | September 30, | |||||||||||||||||||||
Trading account assets: | |||||||||||||||||||||||||||||
Fixed income | $ | 3.0 | $ | 1.1 | $ | 2.0 | $ | 2.5 | $ | 1.0 | $ | .3 | $ | .5 | $ | .8 | |||||||||||||
Derivatives: | |||||||||||||||||||||||||||||
Interest rate | $ | .9 | .3 | $ | .5 | $ | .3 | $ | .1 | — | $ | .1 | $ | .1 | |||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||
Three months ended September 30, | Three months ended September 30, | ||||||||||||||||||||||||||||
in millions | High | Low | Mean | September 30, | High | Low | Mean | September 30, | |||||||||||||||||||||
Trading account assets: | |||||||||||||||||||||||||||||
Fixed income | $ | 3.0 | $ | .8 | $ | 1.7 | $ | 2.5 | $ | 4.3 | $ | 2.4 | $ | 3.2 | $ | 3.3 | |||||||||||||
Derivatives: | |||||||||||||||||||||||||||||
Interest rate | $ | .7 | $ | .1 | $ | .2 | $ | .4 | $ | .9 | $ | .2 | $ | .5 | $ | .7 | |||||||||||||
September 30, 2020 | September 30, 2019 | |||||||||||||||||||||||||
Basis point change assumption (short-term rates) | -200 | +200 | -175 | +200 | ||||||||||||||||||||||
Assumed floor in market rates (in basis points) | — | N/A | 25 | N/A | ||||||||||||||||||||||
Tolerance level | -5.50 | % | -5.50 | % | -5.50 | % | -5.50 | % | ||||||||||||||||||
Interest rate risk assessment | -1.92 | % | 4.49 | % | -1.66 | % | -2.06 | % |
September 30, 2020 | ||||||||||||||||||||||||||||||||
Weighted-Average
|
December 31, 2019 | |||||||||||||||||||||||||||||||
dollars in millions
|
Notional
Amount |
Fair
Value |
Maturity
(Years) |
Receive
Rate |
Pay
Rate |
Notional
Amount |
Fair
Value |
|||||||||||||||||||||||||
Interest rate swaps | ||||||||||||||||||||||||||||||||
Cash flow: | ||||||||||||||||||||||||||||||||
Receive fixed — asset | $ | 18,415 | $ | 745 | 2.2 | 2.2 | % | .2 | % | $ | 19,270 | $ | 312 | |||||||||||||||||||
Receive fixed forward starting — asset | — | — | — | — | — | 3,400 | 32 | |||||||||||||||||||||||||
Pay fixed swap — debt | 50 | (12) | 7.8 | 0.3 | % | 3.6 | % | 50 | (7) | |||||||||||||||||||||||
Total cash flow swaps | 18,465 | 733 | 2.2 | 2.2 | % | .2 | % | 22,720 | 337 | |||||||||||||||||||||||
Fair value: | ||||||||||||||||||||||||||||||||
Received fixed — debt | 7,787 | 491 | 4.1 | 2.1 | % | .2 | % | 8,189 | 240 | |||||||||||||||||||||||
Total interest rate swaps | $ | 26,252 | $ | 1,224 |
(b)
|
2.8 | 2.1 | % | .2 | % | $ | 30,909 | $ | 577 |
(b)
|
|||||||||||||||||
Interest rate options | ||||||||||||||||||||||||||||||||
Cash flow: | ||||||||||||||||||||||||||||||||
Floors — purchased (a)
|
$ | 7,800 | $ | 24 | .7 | — | — | $ | 4,200 | $ | 149 | |||||||||||||||||||||
Floors — sold (a)
|
— | — | — | — | — | 3,900 | (15) | |||||||||||||||||||||||||
Total interest rate options | $ | 7,800 | $ | 24 | .7 | — | — | $ | 8,100 | $ | 134 | |||||||||||||||||||||
September 30, 2020 |
Short-Term
Borrowings |
Long-Term
Deposits |
Senior
Long-Term Debt |
Subordinated
Long-Term Debt |
Capital
Securities |
Preferred
Stock |
||||||||||||||
KEYCORP (THE PARENT COMPANY)
|
||||||||||||||||||||
Standard & Poor’s
|
A-2
|
N/A
|
BBB+
|
BBB
|
BB+
|
BB+
|
||||||||||||||
Moody’s
|
P-2
|
N/A
|
Baa1
|
Baa1
|
Baa2
|
Baa3
|
||||||||||||||
Fitch Ratings, Inc.
|
F1
|
N/A
|
A-
|
BBB+
|
BB+
|
BB+
|
||||||||||||||
DBRS, Inc.
|
R-1 (low)
|
N/A
|
A
|
A (low)
|
A (low)
|
BBB
|
||||||||||||||
KEYBANK
|
||||||||||||||||||||
Standard & Poor’s
|
A-2
|
N/A
|
A-
|
BBB+
|
N/A
|
N/A
|
||||||||||||||
Moody’s
|
P-2
|
Aa3
|
A3
|
Baa1
|
N/A
|
N/A
|
||||||||||||||
Fitch Ratings, Inc.
|
F1
|
A
|
A-
|
BBB+
|
N/A
|
N/A
|
||||||||||||||
DBRS, Inc.
|
R-1 (middle)
|
A (high)
|
A (high)
|
A
|
N/A
|
N/A
|
September 30, 2020 | December 31, 2019 | ||||||||||||||||||||||
dollars in millions | Amount |
Percent of
Allowance to
Total Allowance
|
Percent of
Loan Type to
Total Loans
|
Amount |
Percent of
Allowance to
Total Allowance
|
Percent of
Loan Type to
Total Loans
|
|||||||||||||||||
Commercial and industrial | $ | 810 | 46.8 | % | 53.4 | % | $ | 551 | 61.2 | % | 51.0 | % | |||||||||||
Commercial real estate: | |||||||||||||||||||||||
Commercial mortgage | 279 | 16.1 | 12.7 | 143 | 15.9 | 14.3 | |||||||||||||||||
Construction | 34 | 2.0 | 1.9 | 22 | 2.4 | 1.6 | |||||||||||||||||
Total commercial real estate loans | 313 | 18.1 | 14.6 | 165 | 18.3 | 15.9 | |||||||||||||||||
Commercial lease financing | 58 | 3.4 | 4.3 | 35 | 3.9 | 5.0 | |||||||||||||||||
Total commercial loans | 1,181 | 68.3 | 72.3 | 751 | 83.4 | 71.9 | |||||||||||||||||
Real estate — residential mortgage | 104 | 6.0 | 8.4 | 7 | .8 | 7.4 | |||||||||||||||||
Home equity loans | 183 | 10.6 | 9.2 | 31 | 3.5 | 10.9 | |||||||||||||||||
Consumer direct loans | 125 | 7.2 | 4.3 | 34 | 3.8 | 3.7 | |||||||||||||||||
Credit cards | 95 | 5.5 | 0.9 | 47 | 5.2 | 1.2 | |||||||||||||||||
Consumer indirect loans | 42 | 2.4 | 4.9 | 30 | 3.3 | 4.9 | |||||||||||||||||
Total consumer loans | 549 | 31.7 | 27.7 | 149 | 16.6 | 28.1 | |||||||||||||||||
Total ALLL — continuing operations (b)
|
$ | 1,730 | 100.0 | % | 100.0 | % | $ | 900 | 100.0 | % | 100.0 | % | |||||||||||
2020 | 2019 | |||||||||||||||||||
dollars in millions | Third | Second | First | Fourth | Third | |||||||||||||||
Commercial and industrial | $ | 92 | $ | 66 | $ | 55 | $ | 72 | $ | 170 | ||||||||||
Real estate — Commercial mortgage | 11 | 2 | 2 | 2 | — | |||||||||||||||
Real estate — Construction | — | — | — | 1 | — | |||||||||||||||
Commercial lease financing | 10 | 3 | 2 | — | — | |||||||||||||||
Total commercial loans | 113 | 71 | 59 | 75 | 170 | |||||||||||||||
Real estate — Residential mortgage | (1) | 2 | — | (1) | 1 | |||||||||||||||
Home equity loans | 1 | 1 | 2 | 1 | 4 | |||||||||||||||
Consumer direct loans | 6 | 8 | 10 | 9 | 8 | |||||||||||||||
Credit cards | 7 | 10 | 9 | 9 | 9 | |||||||||||||||
Consumer indirect loans | 2 | 4 | 4 | 6 | 4 | |||||||||||||||
Total consumer loans | 15 | 25 | 25 | 24 | 26 | |||||||||||||||
Total net loan charge-offs | $ | 128 | $ | 96 | $ | 84 | $ | 99 | $ | 196 | ||||||||||
Net loan charge-offs to average loans | .49 | % | .36 | % | .35 | % | .42 | % | .85 | % | ||||||||||
Net loan charge-offs from discontinued operations — education lending business | — | — | $ | 1 | $ | 1 | — |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||
dollars in millions
|
2020 | 2019 | 2020 | 2019 | |||||||||||||
Average loans outstanding
|
$ | 104,919 | $ | 91,956 | $ | 103,018 | $ | 90,805 | |||||||||
Allowance for loan and lease losses at the end of the prior period | $ | 1,708 | $ | 890 | $ | 900 | $ | 883 | |||||||||
Cumulative effect from change in accounting principle (a)
|
— | — | 204 | — | |||||||||||||
Allowance for loan and lease losses at beginning of period
|
1,708 | 890 | 1,104 | 883 | |||||||||||||
Loans charged off:
|
|||||||||||||||||
Commercial and industrial
|
101 | 176 | 232 | 242 | |||||||||||||
Real estate — commercial mortgage
|
13 | — | 18 | 6 | |||||||||||||
Real estate — construction
|
— | — | — | 4 | |||||||||||||
Commercial lease financing
|
10 | 1 | 16 | 25 | |||||||||||||
Total commercial loans
|
124 | 177 | 266 | 277 | |||||||||||||
Real estate — residential mortgage
|
— | 1 | 2 | 3 | |||||||||||||
Home equity loans
|
4 | 6 | 10 | 16 | |||||||||||||
Consumer direct loans
|
8 | 10 | 30 | 30 | |||||||||||||
Credit cards
|
9 | 11 | 32 | 34 | |||||||||||||
Consumer indirect loans
|
6 | 8 | 22 | 24 | |||||||||||||
Total consumer loans
|
27 | 36 | 96 | 107 | |||||||||||||
Total loans charged off
|
151 | 213 | 362 | 384 | |||||||||||||
Recoveries:
|
|||||||||||||||||
Commercial and industrial
|
9 | 6 | 19 | 22 | |||||||||||||
Real estate — commercial mortgage
|
2 | — | 3 | 2 | |||||||||||||
Real estate — construction
|
— | — | — | — | |||||||||||||
Commercial lease financing
|
— | 1 | 1 | 4 | |||||||||||||
Total commercial loans
|
11 | 7 | 23 | 28 | |||||||||||||
Real estate — residential mortgage
|
1 | — | 1 | 1 | |||||||||||||
Home equity loans
|
3 | 2 | 6 | 6 | |||||||||||||
Consumer direct loans
|
2 | 2 | 6 | 5 | |||||||||||||
Credit cards
|
2 | 2 | 6 | 6 | |||||||||||||
Consumer indirect loans
|
4 | 4 | 12 | 13 | |||||||||||||
Total consumer loans
|
12 | 10 | 31 | 31 | |||||||||||||
Total recoveries
|
23 | 17 | 54 | 59 | |||||||||||||
Net loan charge-offs
|
(128) | (196) | (308) | (325) | |||||||||||||
Provision (credit) for loan and lease losses
|
150 | 199 | 934 | 335 | |||||||||||||
Allowance for loan and lease losses at end of period (c)
|
$ | 1,730 | $ | 893 | $ | 1,730 | $ | 893 | |||||||||
Liability for credit losses on lending-related commitments 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 | — | |||||||||||||
Liability for credit losses on off-balance sheet exposures at beginning of period
|
198 | 64 | 141 | 64 | |||||||||||||
Provision (credit) for losses on off-balance sheet exposures
|
10 | 1 | 67 | 1 | |||||||||||||
Liability for credit losses on off-balance sheet exposures at end of period (d)
|
$ | 208 | $ | 65 | $ | 208 | $ | 65 | |||||||||
Total allowance for credit losses at end of period
|
$ | 1,938 | $ | 958 | $ | 1,938 | $ | 958 | |||||||||
Net loan charge-offs to average total loans
|
.49 | % | .85 | % | .40 | % | .48 | % | |||||||||
Allowance for loan and lease losses to period-end loans
|
1.68 | .96 | 1.68 | .96 | |||||||||||||
Allowance for credit losses to period-end loans
|
1.88 | 1.03 | 1.88 | 1.03 | |||||||||||||
Allowance for loan and lease losses to nonperforming loans
|
207.4 | 152.6 | 207.4 | 152.6 | |||||||||||||
Allowance for credit losses to nonperforming loans
|
232.4 | 163.8 | 232.4 | 163.8 | |||||||||||||
Discontinued operations — education lending business:
|
|||||||||||||||||
Loans charged off
|
$ | — | $ | 1 | $ | 4 | $ | 9 | |||||||||
Recoveries
|
— | 1 | 3 | 3 | |||||||||||||
Net loan charge-offs
|
$ | — | $ | — | $ | (1) | $ | (6) | |||||||||
dollars in millions | September 30, 2020 | June 30, 2020 | March 31, 2020 | December 31, 2019 | September 30, 2019 | ||||||||||||
Commercial and industrial | $ | 459 | $ | 404 | $ | 277 | $ | 264 | $ | 238 | |||||||
Real estate — commercial mortgage | 104 | 91 | 87 | 83 | 92 | ||||||||||||
Real estate — construction | 1 | 1 | 2 | 2 | 2 | ||||||||||||
Total commercial real estate loans (a)
|
105 | 92 | 89 | 85 | 94 | ||||||||||||
Commercial lease financing | 6 | 9 | 5 | 6 | 7 | ||||||||||||
Total commercial loans (b)
|
570 | 505 | 371 | 355 | 339 | ||||||||||||
Real estate — residential mortgage | 96 | 89 | 89 | 48 | 42 | ||||||||||||
Home equity loans | 146 | 141 | 143 | 145 | 179 | ||||||||||||
Consumer direct loans | 3 | 3 | 4 | 4 | 3 | ||||||||||||
Credit cards | 2 | 2 | 3 | 3 | 2 | ||||||||||||
Consumer indirect loans | 17 | 20 | 22 | 22 | 20 | ||||||||||||
Total consumer loans | 264 | 255 | 261 | 222 | 246 | ||||||||||||
Total nonperforming loans | 834 | 760 | 632 | 577 | 585 | ||||||||||||
OREO | 105 | 112 | 119 | 35 | 39 | ||||||||||||
Nonperforming loans held for sale | 61 | 75 | 89 | 94 | 78 | ||||||||||||
Other nonperforming assets | 3 | 4 | 4 | 9 | 9 | ||||||||||||
Total nonperforming assets | $ | 1,003 | $ | 951 | $ | 844 | $ | 715 | $ | 711 | |||||||
Accruing loans past due 90 days or more | $ | 73 | $ | 87 | $ | 128 | $ | 97 | $ | 54 | |||||||
Accruing loans past due 30 through 89 days | 336 | 419 | 393 | 329 | 366 | ||||||||||||
Restructured loans — accruing and nonaccruing (c)
|
306 | 310 | 340 | 347 | 347 | ||||||||||||
Restructured loans included in nonperforming loans (c)
|
168 | 166 | 172 | 183 | 176 | ||||||||||||
Nonperforming assets from discontinued operations — education lending business
|
6 | 7 | 7 | 7 | 7 | ||||||||||||
Nonperforming loans to period-end portfolio loans
|
.81 | % | .72 | % | .61 | % | .61 | % | .63 | % | |||||||
Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets
|
.97 | .89 | .82 | .75 | .77 |
2020 | 2019 | |||||||||||||||||||
in millions | Third | Second | First | Fourth | Third | |||||||||||||||
Balance at beginning of period | $ | 760 | $ | 632 | $ | 577 | $ | 585 | $ | 561 | ||||||||||
Loans placed on nonaccrual status (a)
|
387 | 293 | 219 | 268 | 271 | |||||||||||||||
Charge-offs | (150) | (111) | (100) | (114) | (91) | |||||||||||||||
Loans sold | (6) | (5) | (4) | (1) | — | |||||||||||||||
Payments | (83) | (29) | (31) | (59) | (37) | |||||||||||||||
Transfers to OREO | — | — | (3) | (3) | (4) | |||||||||||||||
Transfers to nonperforming loans held for sale | — | — | — | (47) | (78) | |||||||||||||||
Transfers to other nonperforming assets | — | — | — | — | — | |||||||||||||||
Loans returned to accrual status | (74) | (20) | (26) | (52) | (37) | |||||||||||||||
Balance at end of period | $ | 834 | $ | 760 | $ | 632 | $ | 577 | $ | 585 | ||||||||||
Three months ended | Nine months ended | ||||||||||||||||||||||||||||
dollars in millions
|
9/30/2020 | 6/30/2020 | 3/31/2020 | 12/31/2019 | 9/30/2019 | 9/30/2020 | 9/30/2019 | ||||||||||||||||||||||
Tangible common equity to tangible assets at period-end
|
|||||||||||||||||||||||||||||
Key shareholders’ equity (GAAP)
|
$ | 17,722 | $ | 17,542 | $ | 17,411 | $ | 17,038 | $ | 17,116 | |||||||||||||||||||
Less:
|
Intangible assets (a)
|
2,862 | 2,877 | 2,894 | 2,910 | 2,928 | |||||||||||||||||||||||
Preferred Stock (b)
|
1,856 | 1,856 | 1,856 | 1,856 | 1,856 | ||||||||||||||||||||||||
Tangible common equity (non-GAAP)
|
$ | 13,004 | $ | 12,809 | $ | 12,661 | $ | 12,272 | $ | 12,332 | |||||||||||||||||||
Total assets (GAAP)
|
$ | 170,540 | $ | 171,192 | $ | 156,197 | $ | 144,988 | $ | 146,691 | |||||||||||||||||||
Less:
|
Intangible assets (a)
|
2,862 | 2,877 | 2,894 | 2,910 | 2,928 | |||||||||||||||||||||||
Tangible assets (non-GAAP)
|
$ | 167,678 | $ | 168,315 | $ | 153,303 | $ | 142,078 | $ | 143,763 | |||||||||||||||||||
Tangible common equity to tangible assets ratio (non-GAAP)
|
7.8 | % | 7.6 | % | 8.3 | % | 8.6 | % | 8.6 | % | |||||||||||||||||||
Average tangible common equity
|
|||||||||||||||||||||||||||||
Average Key shareholders’ equity (GAAP)
|
$ | 17,730 | $ | 17,688 | $ | 17,216 | $ | 17,178 | $ | 17,113 | $ | 17,545 | $ | 16,454 | |||||||||||||||
Less:
|
Intangible assets (average) (c)
|
2,870 | 2,886 | 2,902 | 2,919 | 2,942 | 2,886 | 2,905 | |||||||||||||||||||||
Preferred Stock (average)
|
1,900 | 1,900 | 1,900 | 1,900 | 1,900 | 1,900 | 1,705 | ||||||||||||||||||||||
Average tangible common equity (non-GAAP)
|
$ | 12,960 | $ | 12,902 | $ | 12,414 | $ | 12,359 | $ | 12,271 | $ | 12,759 | $ | 11,844 | |||||||||||||||
Return on average tangible common equity from continuing operations
|
|||||||||||||||||||||||||||||
Net income (loss) from continuing operations attributable to Key common shareholders (GAAP)
|
$ | 397 | $ | 159 | $ | 118 | $ | 439 | $ | 383 | $ | 674 | $ | 1,172 | |||||||||||||||
Average tangible common equity (non-GAAP)
|
12,960 | 12,902 | 12,414 | 12,359 | 12,271 | 12,759 | 11,844 | ||||||||||||||||||||||
Return on average tangible common equity from continuing operations (non-GAAP)
|
12.19 | % | 4.96 | % | 3.82 | % | 14.09 | % | 12.38 | % | 7.06 | % | 13.23 | % | |||||||||||||||
Return on average tangible common equity consolidated
|
|||||||||||||||||||||||||||||
Net income (loss) attributable to Key common shareholders (GAAP)
|
$ | 401 | $ | 161 | $ | 119 | $ | 442 | $ | 386 | $ | 681 | $ | 1,172 | |||||||||||||||
Average tangible common equity (non-GAAP)
|
12,960 | 12,902 | 12,414 | 12,359 | 12,271 | 12,759 | 11,844 | ||||||||||||||||||||||
Return on average tangible common equity consolidated (non-GAAP)
|
12.31 | % | 5.02 | % | 3.86 | % | 14.19 | % | 12.48 | % | 7.13 | % | 13.30 | % |
Three months ended | Nine months ended | ||||||||||||||||||||||||||||
dollars in millions | 9/30/2020 | 6/30/2020 | 3/31/2020 | 12/31/2019 | 9/30/2019 | 9/30/2020 | 9/30/2019 | ||||||||||||||||||||||
Cash efficiency ratio | |||||||||||||||||||||||||||||
Noninterest expense (GAAP) | $ | 1,037 | $ | 1,013 | $ | 931 | $ | 980 | $ | 939 | $ | 2,981 | $ | 2,921 | |||||||||||||||
Less: | Intangible asset amortization | 15 | 18 | 17 | 19 | 26 | 50 | 70 | |||||||||||||||||||||
Adjusted noninterest expense (non-GAAP) | $ | 1,022 | $ | 995 | $ | 914 | $ | 961 | $ | 913 | $ | 2,931 | $ | 2,851 | |||||||||||||||
Net interest income (GAAP) | $ | 1,000 | $ | 1,018 | $ | 981 | $ | 979 | $ | 972 | $ | 2,999 | $ | 2,930 | |||||||||||||||
Plus: | Taxable-equivalent adjustment | 6 | 7 | 8 | 8 | 8 | 21 | 24 | |||||||||||||||||||||
Noninterest income (GAAP) | 681 | 692 | 477 | 651 | 650 | 1,850 | 1,808 | ||||||||||||||||||||||
Total taxable-equivalent revenue (non-GAAP) | $ | 1,687 | $ | 1,717 | $ | 1,466 | $ | 1,638 | $ | 1,630 | $ | 4,870 | $ | 4,762 | |||||||||||||||
Cash efficiency ratio (non-GAAP) | 60.6 | % | 57.9 | % | 62.3 | % | 58.7 | % | 56.0 | % | 60.2 | % | 59.9 | % |
Standard | Required Adoption | Description |
Effect on Financial Statements or
Other Significant Matters |
||||||||
ASU 2019-12,
Simplifying the Accounting for Income Taxes |
January 1, 2021
Early adoption is permitted |
This ASU simplifies the accounting for income
taxes by removing certain exceptions to the existing guidance, such as exceptions related to the incremental approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period when a year-to-date loss exceeds the anticipated loss, and the recognition of deferred tax liabilities when a foreign subsidiary becomes an equity method investment and when a foreign equity method investment becomes a subsidiary. Along with general improvements, it adds simplifications related to franchise taxes, the tax basis of goodwill, and the method for recognizing an enacted change in tax laws. The guidance also specifies that an entity is not required to allocate the consolidated amount of certain tax expense to a legal entity not subject to tax in its own separate financial statements. The guidance should be applied on either a retrospective, modified retrospective, or prospective basis depending on the amendment. |
The adoption of this accounting guidance is not expected to have a
material effect on our financial condition or results of operations. |
||||||||
ASU 2020-01,
Clarifying the Interactions between Topic 321,Investments —Equity Securities; Topic 323, Investments— Equity Method and Joint Ventures; and Topic 815, Derivatives and Hedging |
January 1, 2021
Early adoption is permitted |
This guidance clarifies that when applying the
measurement alternative in Topic 321, companies should consider certain observable transactions that require the application or discontinuance of the equity method under Topic 323. It also clarifies that companies should not consider whether the underlying securities in certain forward contracts and purchased options would be accounted for under the equity method or fair value option when determining the method of accounting for those contracts. This guidance should be applied on a prospective basis. |
The adoption of this accounting guidance is not expected to have a
material effect on our financial condition or results of operations. |
||||||||
ASU 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging— Contracts in Entity’s Own Equity (Subtopic 815-40) |
January 1, 2022
Early adoption is permitted. |
The ASU simplifies the accounting for convertible debt instruments by eliminating the legacy accounting models for convertible instruments with beneficial conversion features or cash conversion features. The guidance also amends the guidance used to determine if a freestanding financial instrument or an embedded feature qualifies for a scope exception from derivative accounting. For freestanding financial instruments and embedded features that have all the characteristics of a derivative instrument and are potentially settled in an entity’s own stock, the guidance simplifies the settlement assessment that entities are required to perform. Also, the Update now requires the use of the if-converted method for all convertible instruments and includes the effect of potential share settlement in diluted EPS if the effect is more dilutive. The new guidance also makes clarifications to the EPS calculation. Further, the ASU expands disclosure requirements.
The guidance should be applied on a modified retrospective or retrospective basis. |
The adoption of this accounting guidance is not expected to have a
material effect on our financial condition or results of operations. |
||||||||
ASU 2020-08,
Codification Improvements to Subtopic 310-20,
Receivables—Nonrefundable Fees and Other Costs
|
January 1, 2021
Early adoption is not permitted. |
This ASU clarifies that at each reporting period an entity should reevaluate whether a callable debt security is within the scope of ASC 310, which says that to the extent the amortized cost basis of an individual callable debt security exceeds the amount repayable by the issuer at the earliest call date, the premium shall be amortized to the earliest call date, unless prepayment guidance is applied.
This guidance should be applied on a prospective basis.
|
The adoption of this accounting guidance is not expected to have a
material effect on our financial condition or results of operations. |
September 30, 2020 |
Short- and Long-
Term Commercial
Total (a)
|
Foreign Exchange
and Derivatives
with Collateral (b) |
Net
Exposure
|
||||||||
in millions | |||||||||||
France: | |||||||||||
Sovereigns | — | — | — | ||||||||
Nonsovereign financial institutions | — | — | — | ||||||||
Nonsovereign non-financial institutions | $ | 1 | — | $ | 1 | ||||||
Total | 1 | — | 1 | ||||||||
Germany: | |||||||||||
Sovereigns | — | — | — | ||||||||
Nonsovereign financial institutions | — | — | — | ||||||||
Nonsovereign non-financial institutions | 33 | — | 33 | ||||||||
Total | 33 | — | 33 | ||||||||
Switzerland: | |||||||||||
Sovereigns | — | — | — | ||||||||
Nonsovereign financial institutions | — | 1 | 1 | ||||||||
Nonsovereign non-financial institutions | — | — | — | ||||||||
Total | — | 1 | 1 | ||||||||
United Kingdom: | |||||||||||
Sovereigns | — | — | — | ||||||||
Nonsovereign financial institutions | — | $ | 406 | 406 | |||||||
Nonsovereign non-financial institutions | 1 | — | 1 | ||||||||
Total | 1 | 406 | 407 | ||||||||
Total Europe: | |||||||||||
Sovereigns | — | — | — | ||||||||
Nonsovereign financial institutions | — | 407 | 407 | ||||||||
Nonsovereign non-financial institutions | 35 | — | 35 | ||||||||
Total | $ | 35 | $ | 407 | $ | 442 | |||||
in millions, except per share data |
September 30,
2020 |
December 31,
2019 |
||||||
(Unaudited) | ||||||||
ASSETS | ||||||||
Cash and due from banks | $ | 956 | $ | 732 | ||||
Short-term investments | 14,148 | 1,272 | ||||||
Trading account assets | 733 | 1,040 | ||||||
Securities available for sale | 26,895 | 21,843 | ||||||
Held-to-maturity securities (fair value: $8,842 and $10,116) | 8,384 | 10,067 | ||||||
Other investments | 620 | 605 | ||||||
Loans, net of unearned income of $481 and $603 | 103,081 | 94,646 | ||||||
Less: Allowance for loan and lease losses | (1,730) | (900) | ||||||
Net loans | 101,351 | 93,746 | ||||||
Loans held for sale (a)
|
1,724 | 1,334 | ||||||
Premises and equipment | 765 | 814 | ||||||
Goodwill | 2,664 | 2,664 | ||||||
Other intangible assets | 203 | 253 | ||||||
Corporate-owned life insurance | 4,274 | 4,233 | ||||||
Accrued income and other assets | 7,084 | 5,494 | ||||||
Discontinued assets | 739 | 891 | ||||||
Total assets | $ | 170,540 | $ | 144,988 | ||||
LIABILITIES | ||||||||
Deposits in domestic offices: | ||||||||
NOW and money market deposit accounts | $ | 80,791 | $ | 66,714 | ||||
Savings deposits | 5,585 | 4,651 | ||||||
Certificates of deposit ($100,000 or more) | 3,345 | 6,598 | ||||||
Other time deposits | 3,450 | 5,054 | ||||||
Total interest-bearing deposits | 93,171 | 83,017 | ||||||
Noninterest-bearing deposits | 43,575 | 28,853 | ||||||
Total deposits | 136,746 | 111,870 | ||||||
Federal funds purchased and securities sold under repurchase agreements | 213 | 387 | ||||||
Bank notes and other short-term borrowings | 818 | 705 | ||||||
Accrued expense and other liabilities | 2,356 | 2,540 | ||||||
Long-term debt | 12,685 | 12,448 | ||||||
Total liabilities | 152,818 | 127,950 | ||||||
EQUITY | ||||||||
Preferred stock | 1,900 | 1,900 | ||||||
Common Shares, $1 par value; authorized 2,100,000,000 and 2,100,000,000 shares; issued 1,256,702,081 and 1,256,702,081 shares | 1,257 | 1,257 | ||||||
Capital surplus | 6,263 | 6,295 | ||||||
Retained earnings | 12,375 | 12,469 | ||||||
Treasury stock, at cost (280,497,287 and 279,513,530 shares) | (4,940) | (4,909) | ||||||
Accumulated other comprehensive income (loss) | 867 | 26 | ||||||
Key shareholders’ equity | 17,722 | 17,038 | ||||||
Noncontrolling interests | — | — | ||||||
Total equity | 17,722 | 17,038 | ||||||
Total liabilities and equity | $ | 170,540 | $ | 144,988 | ||||
dollars in millions, except per share amounts | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
(Unaudited) | 2020 | 2019 | 2020 | 2019 | |||||||||||||
INTEREST INCOME | |||||||||||||||||
Loans | $ | 927 | $ | 1,073 | $ | 2,933 | $ | 3,221 | |||||||||
Loans held for sale | 18 | 18 | 58 | 46 | |||||||||||||
Securities available for sale | 115 | 136 | 365 | 400 | |||||||||||||
Held-to-maturity securities | 53 | 64 | 171 | 199 | |||||||||||||
Trading account assets | 3 | 7 | 16 | 24 | |||||||||||||
Short-term investments | 1 | 16 | 14 | 49 | |||||||||||||
Other investments | 2 | 3 | 3 | 11 | |||||||||||||
Total interest income | 1,119 | 1,317 | 3,560 | 3,950 | |||||||||||||
INTEREST EXPENSE | |||||||||||||||||
Deposits | 54 | 227 | 319 | 652 | |||||||||||||
Federal funds purchased and securities sold under repurchase agreements | — | — | 6 | 1 | |||||||||||||
Bank notes and other short-term borrowings | 1 | 4 | 11 | 13 | |||||||||||||
Long-term debt | 64 | 114 | 225 | 354 | |||||||||||||
Total interest expense | 119 | 345 | 561 | 1,020 | |||||||||||||
NET INTEREST INCOME | 1,000 | 972 | 2,999 | 2,930 | |||||||||||||
Provision for credit losses | 160 | 200 | 1,001 | 336 | |||||||||||||
Net interest income after provision for credit losses | 840 | 772 | 1,998 | 2,594 | |||||||||||||
NONINTEREST INCOME | |||||||||||||||||
Trust and investment services income | 128 | 118 | 384 | 355 | |||||||||||||
Investment banking and debt placement fees | 146 | 176 | 418 | 449 | |||||||||||||
Service charges on deposit accounts | 77 | 86 | 229 | 251 | |||||||||||||
Operating lease income and other leasing gains | 38 | 42 | 128 | 123 | |||||||||||||
Corporate services income | 51 | 63 | 165 | 171 | |||||||||||||
Cards and payments income | 114 | 69 | 271 | 208 | |||||||||||||
Corporate-owned life insurance income | 30 | 32 | 101 | 97 | |||||||||||||
Consumer mortgage income | 51 | 16 | 133 | 42 | |||||||||||||
Commercial mortgage servicing fees | 18 | 21 | 48 | 58 | |||||||||||||
Other income (a)
|
28 | 27 | (27) | 54 | |||||||||||||
Total noninterest income | 681 | 650 | 1,850 | 1,808 | |||||||||||||
NONINTEREST EXPENSE | |||||||||||||||||
Personnel | 588 | 547 | 1,675 | 1,699 | |||||||||||||
Net occupancy | 76 | 72 | 223 | 217 | |||||||||||||
Computer processing | 59 | 53 | 170 | 163 | |||||||||||||
Business services and professional fees | 49 | 43 | 142 | 132 | |||||||||||||
Equipment | 25 | 27 | 74 | 75 | |||||||||||||
Operating lease expense | 33 | 33 | 103 | 91 | |||||||||||||
Marketing | 22 | 26 | 67 | 69 | |||||||||||||
FDIC assessment | 6 | 7 | 23 | 23 | |||||||||||||
Intangible asset amortization | 15 | 26 | 50 | 70 | |||||||||||||
OREO expense, net | (1) | 3 | 8 | 10 | |||||||||||||
Other expense | 165 | 102 | 446 | 372 | |||||||||||||
Total noninterest expense | 1,037 | 939 | 2,981 | 2,921 | |||||||||||||
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
|
484 | 483 | 867 | 1,481 | |||||||||||||
Income taxes | 60 | 70 | 113 | 239 | |||||||||||||
INCOME (LOSS) FROM CONTINUING OPERATIONS | 424 | 413 | 754 | 1,242 | |||||||||||||
Income (loss) from discontinued operations | 4 | 3 | 7 | 6 | |||||||||||||
NET INCOME (LOSS) | 428 | 416 | 761 | 1,248 | |||||||||||||
Less: Net income (loss) attributable to noncontrolling interests | — | — | — | — | |||||||||||||
NET INCOME (LOSS) ATTRIBUTABLE TO KEY | $ | 428 | $ | 416 | $ | 761 | $ | 1,248 | |||||||||
Income (loss) from continuing operations attributable to Key common shareholders
|
$ | 397 | $ | 383 | $ | 674 | $ | 1,172 | |||||||||
Net income (loss) attributable to Key common shareholders | 401 | 386 | 681 | 1,178 | |||||||||||||
Per Common Share: | |||||||||||||||||
Income (loss) from continuing operations attributable to Key common shareholders
|
$ | .41 | $ | .39 | $ | .70 | $ | 1.17 | |||||||||
Income (loss) from discontinued operations, net of taxes | — | — | .01 | .01 | |||||||||||||
Net income (loss) attributable to Key common shareholders (b)
|
.41 | .39 | .70 | 1.18 | |||||||||||||
Per Common Share — assuming dilution: | |||||||||||||||||
Income (loss) from continuing operations attributable to Key common shareholders
|
$ | .41 | $ | .38 | $ | .69 | $ | 1.16 | |||||||||
Income (loss) from discontinued operations, net of taxes | — | — | .01 | .01 | |||||||||||||
Net income (loss) attributable to Key common shareholders (b)
|
.41 | .39 | .70 | 1.17 | |||||||||||||
Cash dividends declared per Common Share | $ | .185 | $ | .185 | $ | .555 | $ | .525 | |||||||||
Weighted-average Common Shares outstanding (000) | 967,804 | 988,319 | 967,632 | 998,268 | |||||||||||||
Effect of Common Share options and other stock awards | 6,184 | 10,009 | 6,648 | 9,632 | |||||||||||||
Weighted-average Common Shares and potential Common Shares outstanding (000) (c)
|
973,988 | 998,328 | 974,280 | 1,007,900 | |||||||||||||
in millions | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
(Unaudited) | 2020 | 2019 | 2020 | 2019 | |||||||||||||
Net income (loss) | $ | 428 | $ | 416 | $ | 761 | $ | 1,248 | |||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||
Net unrealized gains (losses) on securities available for sale, net of income taxes of ($3), ($29), $163 and ($176) | (8) | 93 | 527 | 568 | |||||||||||||
Net unrealized gains (losses) on derivative financial instruments, net of income taxes of ($19), ($21), $93, and ($120) | (64) | 68 | 299 | 386 | |||||||||||||
Foreign currency translation adjustments, net of income taxes of $0, $0, $0, and ($1) | — | — | — | 4 | |||||||||||||
Net pension and postretirement benefit costs, net of income taxes of $1, $0, $5, and ($6) | 3 | — | 15 | 19 | |||||||||||||
Total other comprehensive income (loss), net of tax | (69) | 161 | 841 | 977 | |||||||||||||
Comprehensive income (loss) | 359 | 577 | 1,602 | 2,225 | |||||||||||||
Less: Comprehensive income attributable to noncontrolling interests | — | — | — | — | |||||||||||||
Comprehensive income (loss) attributable to Key | $ | 359 | $ | 577 | $ | 1,602 | $ | 2,225 | |||||||||
Key Shareholders’ Equity | |||||||||||||||||||||||||||||
dollars in millions, except per share amounts
(Unaudited)
|
Preferred
Shares
Outstanding
(000)
|
Common
Shares
Outstanding
(000)
|
Preferred
Stock
|
Common
Shares
|
Capital
Surplus
|
Retained
Earnings
|
Treasury
Stock,
at Cost
|
Accumulated
Other
Comprehensive
Income (Loss)
|
Noncontrolling
Interests
|
||||||||||||||||||||
BALANCE AT DECEMBER 31, 2019 | 1,396 | 977,189 | $ | 1,900 | $ | 1,257 | $ | 6,295 | $ | 12,469 | $ | (4,909) | $ | 26 | — | ||||||||||||||
Cumulative effect from changes in accounting principle (a)
|
(230) | ||||||||||||||||||||||||||||
Net income (loss) | 761 | — | |||||||||||||||||||||||||||
Other comprehensive income (loss) | 841 | ||||||||||||||||||||||||||||
Deferred compensation | 2 | ||||||||||||||||||||||||||||
Cash dividends declared | |||||||||||||||||||||||||||||
Common Shares ($.555 per share) | (542) | ||||||||||||||||||||||||||||
Series D Preferred Stock ($37.50 per depositary share) | (20) | ||||||||||||||||||||||||||||
Series E Preferred Stock ($1.148439 per depositary share) | (23) | ||||||||||||||||||||||||||||
Series F Preferred Stock ($1.059375 per depositary share) | (18) | ||||||||||||||||||||||||||||
Series G Preferred Stock ($1.054689 per depositary share) | (19) | ||||||||||||||||||||||||||||
Open market Common Share repurchases | (6,067) | (117) | |||||||||||||||||||||||||||
Employee equity compensation program Common Share repurchases
|
(1,815) | (34) | (36) | ||||||||||||||||||||||||||
Common Shares reissued (returned) for stock options and other employee benefit plans
|
6,898 | — | 122 | ||||||||||||||||||||||||||
Net contribution from (distribution to) noncontrolling interests
|
— | ||||||||||||||||||||||||||||
Other
|
(3) | ||||||||||||||||||||||||||||
BALANCE AT SEPTEMBER 30, 2020 | 1,396 | 976,205 | $ | 1,900 | $ | 1,257 | $ | 6,263 | $ | 12,375 | $ | (4,940) | $ | 867 | — | ||||||||||||||
BALANCE AT JUNE 30, 2020 | 1,396 | 975,947 | $ | 1,900 | $ | 1,257 | $ | 6,240 | $ | 12,154 | $ | (4,945) | $ | 936 | — | ||||||||||||||
Net income (loss)
|
428 | — | |||||||||||||||||||||||||||
Other comprehensive income (loss)
|
(69) | ||||||||||||||||||||||||||||
Deferred compensation
|
2 | ||||||||||||||||||||||||||||
Cash dividends declared
|
|||||||||||||||||||||||||||||
Common Shares ($.185 per share)
|
(180) | ||||||||||||||||||||||||||||
Series D Preferred Stock ($12.50 per depositary share)
|
(7) | ||||||||||||||||||||||||||||
Series E Preferred Stock ($.382813 per depositary share)
|
(8) | ||||||||||||||||||||||||||||
Series F Preferred Stock ($.353125 per depositary share)
|
(6) | ||||||||||||||||||||||||||||
Series G Preferred Stock ($.351563 per depositary share)
|
(6) | ||||||||||||||||||||||||||||
Open market Common Share repurchases
|
— | — | |||||||||||||||||||||||||||
Employee equity compensation program Common Share repurchases
|
(1) | 21 | — | ||||||||||||||||||||||||||
Common Shares reissued (returned) for stock options and other employee benefit plans
|
259 | — | 5 | ||||||||||||||||||||||||||
Net contribution from (distribution to) noncontrolling interests
|
— | ||||||||||||||||||||||||||||
Other
|
— | ||||||||||||||||||||||||||||
BALANCE AT SEPTEMBER 30, 2020 | 1,396 | 976,205 | $ | 1,900 | $ | 1,257 | $ | 6,263 | $ | 12,375 | $ | (4,940) | $ | 867 | — | ||||||||||||||
in millions | Nine months ended September 30, | ||||||||||
(Unaudited) | 2020 | 2019 | |||||||||
OPERATING ACTIVITIES | |||||||||||
Net income (loss) | $ | 761 | $ | 1,248 | |||||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||||||
Provision for credit losses | 1,001 | 336 | |||||||||
Depreciation and amortization expense, net | 112 | 183 | |||||||||
Accretion of acquired loans | 23 | 39 | |||||||||
Increase in cash surrender value of corporate-owned life insurance | (86) | (86) | |||||||||
Stock-based compensation expense | 75 | 72 | |||||||||
Deferred income taxes (benefit) | (217) | 81 | |||||||||
Proceeds from sales of loans held for sale | 10,079 | 8,103 | |||||||||
Originations of loans held for sale, net of repayments | (10,040) | (8,063) | |||||||||
Net losses (gains) on sales of loans held for sale | (169) | (126) | |||||||||
Net losses (gains) on leased equipment | (17) | (16) | |||||||||
Net securities losses (gains) | (4) | (15) | |||||||||
Net losses (gains) on sales of fixed assets | 3 | (1) | |||||||||
Net decrease (increase) in trading account assets | 307 | (114) | |||||||||
Other operating activities, net | (1,101) | 272 | |||||||||
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | 727 | 1,913 | |||||||||
INVESTING ACTIVITIES | |||||||||||
Cash received (used) in acquisitions, net of cash acquired | — | (185) | |||||||||
Net decrease (increase) in short-term investments, excluding acquisitions | (12,876) | (789) | |||||||||
Purchases of securities available for sale | (9,582) | (4,618) | |||||||||
Proceeds from sales of securities available for sale | 583 | 24 | |||||||||
Proceeds from prepayments and maturities of securities available for sale | 4,642 | 2,395 | |||||||||
Proceeds from prepayments and maturities of held-to-maturity securities | 1,702 | 1,054 | |||||||||
Purchases of held-to-maturity securities | (17) | (22) | |||||||||
Purchases of other investments | (110) | (33) | |||||||||
Proceeds from sales of other investments | 79 | 40 | |||||||||
Proceeds from prepayments and maturities of other investments | 13 | 39 | |||||||||
Net decrease (increase) in loans, excluding acquisitions, sales and transfers | (9,118) | (4,122) | |||||||||
Proceeds from sales of portfolio loans | 140 | 245 | |||||||||
Proceeds from corporate-owned life insurance | 46 | 41 | |||||||||
Purchases of premises, equipment, and software | (45) | (58) | |||||||||
Proceeds from sales of premises and equipment | — | 17 | |||||||||
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES | (24,543) | (5,972) | |||||||||
FINANCING ACTIVITIES | |||||||||||
Net increase (decrease) in deposits, excluding acquisitions | 24,876 | 4,340 | |||||||||
Net increase (decrease) in short-term borrowings | (61) | 19 | |||||||||
Net proceeds from issuance of long-term debt | 2,502 | 2,113 | |||||||||
Payments on long-term debt | (2,509) | (1,675) | |||||||||
Issuance of preferred shares | — | 435 | |||||||||
Open market Common Share repurchases | (117) | (594) | |||||||||
Employee equity compensation program Common Share repurchases | (36) | (33) | |||||||||
Net proceeds from reissuance of Common Shares | 7 | 7 | |||||||||
Cash dividends paid | (622) | (595) | |||||||||
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | 24,040 | 4,017 | |||||||||
NET INCREASE (DECREASE) IN CASH AND DUE FROM BANKS | 224 | (42) | |||||||||
CASH AND DUE FROM BANKS AT BEGINNING OF PERIOD | 732 | 678 | |||||||||
CASH AND DUE FROM BANKS AT END OF PERIOD | $ | 956 | $ | 636 | |||||||
Additional disclosures relative to cash flows: | |||||||||||
Interest paid | $ | 601 | $ | 950 | |||||||
Income taxes paid (refunded) | 175 | (22) | |||||||||
Noncash items: | |||||||||||
Reduction of secured borrowing and related collateral | $ | 5 | $ | 3 | |||||||
Loans transferred to portfolio from held for sale | 32 | 5 | |||||||||
Loans transferred to held for sale from portfolio | 292 | 290 | |||||||||
Loans transferred to OREO | 94 | 22 | |||||||||
CMBS risk retentions | 41 | 17 | |||||||||
ABS risk retentions | 22 | 12 | |||||||||
Pre-ASC 326 Adoption | Impact of ASC 326 Adoption | As Reported Under ASC 326 | |||||||||
in millions | December 31, 2019 | January 1, 2020 | |||||||||
Allowance for credit losses | |||||||||||
Commercial | |||||||||||
Commercial and industrial | $ | 551 | $ | (141) | $ | 410 | |||||
Real estate — commercial mortgage | 143 | 16 | 159 | ||||||||
Real estate — construction | 22 | (7) | 15 | ||||||||
Commercial lease financing | 35 | 8 | 43 | ||||||||
Total commercial loans | 751 | (124) | 627 | ||||||||
Consumer | |||||||||||
Real estate — residential mortgage | 7 | 77 | 84 | ||||||||
Home equity loans | 31 | 147 | 178 | ||||||||
Consumer direct loans | 34 | 63 | 97 | ||||||||
Credit cards | 47 | 35 | 82 | ||||||||
Consumer indirect loans | 30 | 6 | 36 | ||||||||
Total consumer loans | 149 | 328 | 477 | ||||||||
Total ALLL — continuing operations | 900 | 204 | 1,104 | ||||||||
Discontinued operations | 10 | 31 | 41 | ||||||||
Total ALLL | 910 | 235 | 1,145 | ||||||||
Accrued expense and other liabilities | 75 | 70 | 145 | ||||||||
Total allowance for credit losses | $ | 985 | $ | 305 | $ | 1,290 | |||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||
dollars in millions, except per share amounts | 2020 | 2019 | 2020 | 2019 | |||||||||||||
EARNINGS | |||||||||||||||||
Income (loss) from continuing operations
|
$ | 424 | $ | 413 | $ | 754 | $ | 1,242 | |||||||||
Less: Net income (loss) attributable to noncontrolling interests | — | — | — | — | |||||||||||||
Income (loss) from continuing operations attributable to Key | 424 | 413 | 754 | 1,242 | |||||||||||||
Less: Dividends on Preferred Stock | 27 | 30 | 80 | 70 | |||||||||||||
Income (loss) from continuing operations attributable to Key common shareholders | 397 | 383 | 674 | 1,172 | |||||||||||||
Income (loss) from discontinued operations, net of taxes | 4 | 3 | 7 | 6 | |||||||||||||
Net income (loss) attributable to Key common shareholders | $ | 401 | $ | 386 | $ | 681 | $ | 1,178 | |||||||||
WEIGHTED-AVERAGE COMMON SHARES | |||||||||||||||||
Weighted-average Common Shares outstanding (000) | 967,804 | 988,319 | 967,632 | 998,268 | |||||||||||||
Effect of Common Share options and other stock awards | 6,184 | 10,009 | 6,648 | 9,632 | |||||||||||||
Weighted-average Common Shares and potential Common Shares outstanding (000) (a)
|
973,988 | 998,328 | 974,280 | 1,007,900 | |||||||||||||
EARNINGS PER COMMON SHARE | |||||||||||||||||
Income (loss) from continuing operations attributable to Key common shareholders | $ | .41 | $ | .39 | $ | .70 | $ | 1.17 | |||||||||
Income (loss) from discontinued operations, net of taxes | — | — | .01 | .01 | |||||||||||||
Net income (loss) attributable to Key common shareholders (b)
|
.41 | .39 | .70 | 1.18 | |||||||||||||
Income (loss) from continuing operations attributable to Key common shareholders — assuming dilution
|
$ | .41 | $ | .38 | $ | .69 | $ | 1.16 | |||||||||
Income (loss) from discontinued operations, net of taxes — assuming dilution | — | — | .01 | .01 | |||||||||||||
Net income (loss) attributable to Key common shareholders — assuming dilution (b)
|
.41 | .39 | .70 | 1.17 |
in millions | September 30, 2020 | December 31, 2019 | ||||||
Commercial and industrial (b)
|
$ | 55,025 | $ | 48,295 | ||||
Commercial real estate: | ||||||||
Commercial mortgage | 13,059 | 13,491 | ||||||
Construction | 1,947 | 1,558 | ||||||
Total commercial real estate loans | 15,006 | 15,049 | ||||||
Commercial lease financing (c)
|
4,450 | 4,688 | ||||||
Total commercial loans | 74,481 | 68,032 | ||||||
Residential — prime loans: | ||||||||
Real estate — residential mortgage | 8,715 | 7,023 | ||||||
Home equity loans | 9,488 | 10,274 | ||||||
Total residential — prime loans | 18,203 | 17,297 | ||||||
Consumer direct loans | 4,395 | 3,513 | ||||||
Credit cards | 970 | 1,130 | ||||||
Consumer indirect loans | 5,032 | 4,674 | ||||||
Total consumer loans | 28,600 | 26,614 | ||||||
Total loans (d)
|
$ | 103,081 | $ | 94,646 | ||||
in millions | June 30, 2020 | Provision | Charge-offs | Recoveries | September 30, 2020 | |||||||||||||||
Commercial and Industrial | $ | 725 | $ | 177 | $ | (101) | $ | 9 | $ | 810 | ||||||||||
Commercial real estate: | ||||||||||||||||||||
Real estate — commercial mortgage | 292 | (2) | (13) | 2 | 279 | |||||||||||||||
Real estate — construction | 41 | (7) | — | — | 34 | |||||||||||||||
Total commercial real estate loans | 333 | (9) | (13) | 2 | 313 | |||||||||||||||
Commercial lease financing | 55 | 13 | (10) | — | 58 | |||||||||||||||
Total commercial loans | 1,113 | 181 | (124) | 11 | 1,181 | |||||||||||||||
Real estate — residential mortgage | 101 | 2 | — | 1 | 104 | |||||||||||||||
Home equity loans | 197 | (13) | (4) | 3 | 183 | |||||||||||||||
Consumer direct loans | 130 | 1 | (8) | 2 | 125 | |||||||||||||||
Credit cards | 107 | (5) | (9) | 2 | 95 | |||||||||||||||
Consumer indirect loans | 60 | (16) | (6) | 4 | 42 | |||||||||||||||
Total consumer loans | 595 | (31) | (27) | 12 | 549 | |||||||||||||||
Total ALLL — continuing operations | 1,708 | 150 |
(a)
|
(151) | 23 | 1,730 | ||||||||||||||
Discontinued operations | 43 | (1) | — | — | 42 | |||||||||||||||
Total ALLL — including discontinued operations | $ | 1,751 | $ | 149 | $ | (151) | $ | 23 | $ | 1,772 | ||||||||||
in millions | June 30, 2019 | Provision | Charge-offs | Recoveries | September 30, 2019 | ||||||||||||||||||
Commercial and Industrial | $ | 549 | $ | 175 | $ | (176) | $ | 6 | $ | 554 | |||||||||||||
Commercial real estate: | |||||||||||||||||||||||
Real estate — commercial mortgage | 139 | (5) | — | — | 134 | ||||||||||||||||||
Real estate — construction | 24 | (1) | — | — | 23 | ||||||||||||||||||
Total commercial real estate loans | 163 | (6) | — | — | 157 | ||||||||||||||||||
Commercial lease financing | 35 | — | (1) | 1 | 35 | ||||||||||||||||||
Total commercial loans | 747 | 169 | (177) | 7 | 746 | ||||||||||||||||||
Real estate — residential mortgage | 7 | 1 | (1) | — | 7 | ||||||||||||||||||
Home equity loans | 36 | 1 | (6) | 2 | 33 | ||||||||||||||||||
Consumer direct loans | 32 | 10 | (10) | 2 | 34 | ||||||||||||||||||
Credit cards | 44 | 11 | (11) | 2 | 46 | ||||||||||||||||||
Consumer indirect loans | 24 | 7 | (8) | 4 | 27 | ||||||||||||||||||
Total consumer loans | 143 | 30 | (36) | 10 | 147 | ||||||||||||||||||
Total ALLL — continuing operations | 890 | 199 |
(a) (b)
|
(213) |
(b)
|
17 | 893 | ||||||||||||||||
Discontinued operations | 12 | (1) | (1) | 1 | 11 | ||||||||||||||||||
Total ALLL — including discontinued operations | $ | 902 | $ | 198 | $ | (214) | $ | 18 | $ | 904 | |||||||||||||
in millions | December 31, 2019 | Impact of ASC 326 Adoption | January 1, 2020 | Provision | Charge-offs | Recoveries | September 30, 2020 | |||||||||||||||||||
Commercial and Industrial | $ | 551 | $ | (141) | $ | 410 | $ | 613 | $ | (232) | $ | 19 | $ | 810 | ||||||||||||
Commercial real estate: | ||||||||||||||||||||||||||
Real estate — commercial mortgage | 143 | 16 | 159 | 135 | (18) | 3 | 279 | |||||||||||||||||||
Real estate — construction | 22 | (7) | 15 | 19 | — | — | 34 | |||||||||||||||||||
Total commercial real estate loans | 165 | 9 | 174 | 154 | (18) | 3 | 313 | |||||||||||||||||||
Commercial lease financing | 35 | 8 | 43 | 30 | (16) | 1 | 58 | |||||||||||||||||||
Total commercial loans | 751 | (124) | 627 | 797 | (266) | 23 | 1,181 | |||||||||||||||||||
Real estate — residential mortgage | 7 | 77 | 84 | 21 | (2) | 1 | 104 | |||||||||||||||||||
Home equity loans | 31 | 147 | 178 | 9 | (10) | 6 | 183 | |||||||||||||||||||
Consumer direct loans | 34 | 63 | 97 | 52 | (30) | 6 | 125 | |||||||||||||||||||
Credit cards | 47 | 35 | 82 | 39 | (32) | 6 | 95 | |||||||||||||||||||
Consumer indirect loans | 30 | 6 | 36 | 16 | (22) | 12 | 42 | |||||||||||||||||||
Total consumer loans | 149 | 328 | 477 | 137 | (96) | 31 | 549 | |||||||||||||||||||
Total ALLL — continuing operations | 900 | 204 | 1,104 | 934 |
(a)
|
(362) | 54 | 1,730 | ||||||||||||||||||
Discontinued operations | 10 | 31 | 41 | 2 | (4) | 3 | 42 | |||||||||||||||||||
Total ALLL — including discontinued operations | $ | 910 | $ | 235 | $ | 1,145 | $ | 936 | $ | (366) | $ | 57 | $ | 1,772 | ||||||||||||
in millions | December 31, 2018 | Provision | Charge-offs | Recoveries | September 30, 2019 | |||||||||||||||||||||
Commercial and Industrial | $ | 532 | $ | 242 | $ | (242) | $ | 22 | $ | 554 | ||||||||||||||||
Commercial real estate: | ||||||||||||||||||||||||||
Real estate — commercial mortgage | 142 | (4) | (6) | 2 | 134 | |||||||||||||||||||||
Real estate — construction | 33 | (6) | (4) | — | 23 | |||||||||||||||||||||
Total commercial real estate loans | 175 | (10) | (10) | 2 | 157 | |||||||||||||||||||||
Commercial lease financing | 36 | 20 | (25) | 4 | 35 | |||||||||||||||||||||
Total commercial loans | 743 | 252 | (277) | 28 | 746 | |||||||||||||||||||||
Real estate — residential mortgage | 7 | 2 | (3) | 1 | 7 | |||||||||||||||||||||
Home equity loans | 35 | 8 | (16) | 6 | 33 | |||||||||||||||||||||
Consumer direct loans | 30 | 29 | (30) | 5 | 34 | |||||||||||||||||||||
Credit cards | 48 | 26 | (34) | 6 | 46 | |||||||||||||||||||||
Consumer indirect loans | 20 | 18 | (24) | 13 | 27 | |||||||||||||||||||||
Total consumer loans | 140 | 83 | (107) | 31 | 147 | |||||||||||||||||||||
Total ALLL — continuing operations | 883 | 335 |
(a) (b)
|
(384) |
(b)
|
59 | 893 | |||||||||||||||||||
Discontinued operations | 14 | 3 | (9) | 3 | 11 | |||||||||||||||||||||
Total ALLL — including discontinued operations | $ | 897 | $ | 338 | $ | (393) | $ | 62 | $ | 904 | ||||||||||||||||
Segment | Portfolio |
Key Macroeconomic Variables (a)
|
||||||
Commercial | Commercial and industrial | BBB corporate bond rate (spread), GDP, industrial production, and unemployment rate | ||||||
Commercial real estate | BBB corporate bond rate (spread), property and real estate price indices, and unemployment rate | |||||||
Commercial lease financing | BBB corporate bond rate (spread), GDP, and unemployment rate | |||||||
Consumer | Real estate — residential mortgage | GDP, home price index, unemployment rate, and 30 year mortgage rate | ||||||
Home equity | Home price index, unemployment rate, and 30 year mortgage rate | |||||||
Consumer direct | Unemployment rate and U.S. household income | |||||||
Consumer indirect | New vehicle sales and unemployment rate | |||||||
Credit cards | Unemployment rate and U.S. household income | |||||||
Discontinued operations | Unemployment rate |
As of September 30, 2020 | Term Loans | Revolving Loans Amortized Cost Basis | Revolving Loans Converted to Term Loans Amortized Cost Basis | ||||||||||||||||||||||||||
Amortized Cost Basis by Origination Year and Internal Risk Rating | |||||||||||||||||||||||||||||
in millions | 2020 | 2019 | 2018 | 2017 | 2016 | Prior | Total | ||||||||||||||||||||||
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 industrial | 13,373 | 6,081 | 4,739 | 3,373 | 2,380 | 3,310 | 21,593 | 176 | 55,025 | ||||||||||||||||||||
Real estate — commercial mortgage | |||||||||||||||||||||||||||||
Risk Rating: | |||||||||||||||||||||||||||||
Pass | 1,341 | 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: | |||||||||||||||||||||||||||||
Pass | 242 | 701 | 624 | 226 | 34 | 25 | 24 | 5 | 1,881 | ||||||||||||||||||||
Criticized (Accruing) | — | 3 | 18 | — | 41 | 2 | 1 | — | 65 | ||||||||||||||||||||
Criticized (Nonaccruing) | — | — | — | — | 1 | — | — | 1 | |||||||||||||||||||||
Total real estate — construction | 242 | 704 | 642 | 226 | 75 | 28 | 25 | 5 | 1,947 | ||||||||||||||||||||
Commercial lease financing | |||||||||||||||||||||||||||||
Risk Rating: | |||||||||||||||||||||||||||||
Pass | 793 | 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 financing | 802 | 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 | |||||||||||
As of September 30, 2020 | Term Loans | Revolving Loans Amortized Cost Basis | Revolving Loans Converted to Term Loans Amortized Cost Basis | ||||||||||||||||||||||||||
Amortized Cost Basis by Origination Year and FICO Score | |||||||||||||||||||||||||||||
in millions | 2020 | 2019 | 2018 | 2017 | 2016 | Prior | Total | ||||||||||||||||||||||
Real estate — residential mortgage | |||||||||||||||||||||||||||||
FICO Score: | |||||||||||||||||||||||||||||
750 and above | $ | 2,561 | $ | 1,774 | $ | 242 | $ | 286 | $ | 604 | $ | 1,372 | — | — | $ | 6,839 | |||||||||||||
660 to 749 | 550 | 350 | 88 | 58 | 108 | 362 | — | — | 1,516 | ||||||||||||||||||||
Less than 660 | 15 | 34 | 24 | 11 | 23 | 183 | — | — | 290 | ||||||||||||||||||||
No Score | — | 2 | 4 | 6 | 2 | 55 | 1 | — | 70 | ||||||||||||||||||||
Total real estate — residential mortgage | 3,126 | 2,160 | 358 | 361 | 737 | 1,972 | 1 | — | 8,715 | ||||||||||||||||||||
Home equity loans | |||||||||||||||||||||||||||||
FICO Score: | |||||||||||||||||||||||||||||
750 and above | 644 | 417 | 166 | 192 | 185 | 815 | $ | 2,874 | $ | 639 | 5,932 | ||||||||||||||||||
660 to 749 | 213 | 249 | 115 | 119 | 96 | 380 | 1,308 | 229 | 2,709 | ||||||||||||||||||||
Less than 660 | 22 | 50 | 29 | 29 | 34 | 155 | 450 | 65 | 834 | ||||||||||||||||||||
No Score | 2 | 2 | 1 | — | — | 2 | 5 | 1 | 13 | ||||||||||||||||||||
Total home equity loans | 881 | 718 | 311 | 340 | 315 | 1,352 | 4,637 | 934 | 9,488 | ||||||||||||||||||||
Consumer direct loans | |||||||||||||||||||||||||||||
FICO Score: | |||||||||||||||||||||||||||||
750 and above | 1,426 | 1,008 | 131 | 39 | 21 | 65 | 127 | — | 2,817 | ||||||||||||||||||||
660 to 749 | 367 | 295 | 91 | 26 | 16 | 33 | 263 | — | 1,091 | ||||||||||||||||||||
Less than 660 | 17 | 38 | 22 | 9 | 5 | 12 | 86 | — | 189 | ||||||||||||||||||||
No Score | 34 | 39 | 22 | 17 | 10 | 12 | 164 | — | 298 | ||||||||||||||||||||
Total consumer direct loans | 1,844 | 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 above | 944 | 991 | 415 | 221 | 87 | 80 | — | — | 2,738 | ||||||||||||||||||||
660 to 749 | 595 | 633 | 264 | 115 | 46 | 57 | — | — | 1,710 | ||||||||||||||||||||
Less than 660 | 125 | 184 | 113 | 62 | 30 | 33 | — | — | 547 | ||||||||||||||||||||
No Score | 37 | — | — | — | — | — | — | — | 37 | ||||||||||||||||||||
Total consumer indirect loans | 1,701 | 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 | |||||||||||
September 30, 2020 | Current |
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 mortgage | 12,900 | 23 | 14 | 18 | 104 | 159 | 13,059 | ||||||||||||||||
Construction | 1,942 | 1 | 2 | 1 | 1 | 5 | 1,947 | ||||||||||||||||
Total commercial real estate loans | 14,842 | 24 | 16 | 19 | 105 | 164 | 15,006 | ||||||||||||||||
Commercial lease financing | 4,418 | 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 loans | 9,275 | 42 | 12 | 13 | 146 | 213 | 9,488 | ||||||||||||||||
Consumer direct loans | 4,377 | 7 | 4 | 4 | 3 | 18 | 4,395 | ||||||||||||||||
Credit cards | 956 | 4 | 2 | 6 | 2 | 14 | 970 | ||||||||||||||||
Consumer indirect loans | 4,991 | 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 | |||||||||
December 31, 2019 | Current |
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 mortgage | 13,258 | 8 | 5 | 13 | 83 | 109 | 124 | 13,491 | ||||||||||||||||||
Construction | 1,551 | 3 | — | 1 | 2 | 6 | 1 | 1,558 | ||||||||||||||||||
Total commercial real estate loans | 14,809 | 11 | 5 | 14 | 85 | 115 | 125 | 15,049 | ||||||||||||||||||
Commercial lease financing | 4,647 | 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 loans | 10,071 | 30 | 10 | 5 | 145 | 190 | 13 | 10,274 | ||||||||||||||||||
Consumer direct loans | 3,484 | 10 | 5 | 7 | 4 | 26 | 3 | 3,513 | ||||||||||||||||||
Credit cards | 1,104 | 6 | 5 | 12 | 3 | 26 | — | 1,130 | ||||||||||||||||||
Consumer indirect loans | 4,609 | 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 | ||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
in millions | 2020 | 2019 | 2020 | 2019 | |||||||||||||
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 | |||||||||
Other | 6 | 8 | 18 | 21 | |||||||||||||
Total | $ | 19 | $ | 12 | $ | 40 | $ | 33 | |||||||||
Total TDRs | $ | 19 | $ | 20 | $ | 48 | $ | 57 | |||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
in millions | 2020 | 2019 | 2020 | 2019 | ||||||||||
Balance at beginning of the period | $ | 310 | $ | 395 | $ | 347 | $ | 399 | ||||||
Additions | 26 | 20 | 65 | 88 | ||||||||||
Payments | (22) | (65) | (75) | (123) | ||||||||||
Charge-offs | (8) | (3) | (31) | (17) | ||||||||||
Balance at end of period | $ | 306 | $ | 347 | $ | 306 | $ | 347 | ||||||
September 30, 2020 | December 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 industrial | 51 | $ | 51 | $ | 39 | 51 | $ | 72 | $ | 53 | |||||||||||||
Commercial real estate: | |||||||||||||||||||||||
Commercial mortgage | 7 | 62 | 50 | 6 | 64 | 58 | |||||||||||||||||
Total commercial real estate loans | 7 | 62 | 50 | 6 | 64 | 58 | |||||||||||||||||
Total commercial loans | 58 | 113 | 89 | 57 | 136 | 111 | |||||||||||||||||
Real estate — residential mortgage | 271 | 28 | 27 | 181 | 13 | 11 | |||||||||||||||||
Home equity loans | 629 | 40 | 37 | 713 | 42 | 41 | |||||||||||||||||
Consumer direct loans | 153 | 2 | 2 | 172 | 2 | 2 | |||||||||||||||||
Credit cards | 279 | 2 | 1 | 368 | 2 | 2 | |||||||||||||||||
Consumer indirect loans | 867 | 15 | 12 | 1,131 | 19 | 16 | |||||||||||||||||
Total consumer loans | 2,199 | 87 | 79 | 2,565 | 78 | 72 | |||||||||||||||||
Total nonperforming TDRs | 2,257 | 200 | 168 | 2,622 | 214 | 183 | |||||||||||||||||
Prior-year accruing:(a)
|
|||||||||||||||||||||||
Commercial and industrial | 4 | 5 | 2 | 6 | 30 | 25 | |||||||||||||||||
Commercial real estate | |||||||||||||||||||||||
Commercial mortgage | 1 | — | — | 1 | — | — | |||||||||||||||||
Total commercial real estate loans | 1 | — | — | 1 | — | — | |||||||||||||||||
Total commercial loans | 5 | 5 | 2 | 7 | 30 | 25 | |||||||||||||||||
Real estate — residential mortgage | 472 | 35 | 29 | 493 | 37 | 31 | |||||||||||||||||
Home equity loans | 1,829 | 108 | 87 | 1,751 | 104 | 84 | |||||||||||||||||
Consumer direct loans | 178 | 4 | 2 | 139 | 4 | 3 | |||||||||||||||||
Credit cards | 584 | 4 | 1 | 486 | 3 | 1 | |||||||||||||||||
Consumer indirect loans | 813 | 31 | 17 | 714 | 33 | 20 | |||||||||||||||||
Total consumer loans | 3,876 | 182 | 136 | 3,583 | 181 | 139 | |||||||||||||||||
Total prior-year accruing TDRs | 3,881 | 187 | 138 | 3,590 | 211 | 164 | |||||||||||||||||
Total TDRs | 6,138 | $ | 387 | $ | 306 | 6,212 | $ | 425 | $ | 347 | |||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||
in millions | 2020 | 2019 | 2020 | 2019 | ||||||||||
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 period | 198 | 64 | 141 | 64 | ||||||||||
Provision (credit) for losses on off balance sheet exposures | 10 | 1 | 67 | 1 | ||||||||||
Balance at end of period | $ | 208 | $ | 65 | $ | 208 | $ | 65 | ||||||
September 30, 2020 | December 31, 2019 | |||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||
in millions | ||||||||||||||||||||||||||
ASSETS MEASURED ON A RECURRING BASIS | ||||||||||||||||||||||||||
Short-term investments | ||||||||||||||||||||||||||
U.S. Treasury Bills | — | $ | 1,000 | — | $ | 1,000 | — | $ | — | — | $ | — | ||||||||||||||
Total short-term investments | — | 1,000 | — | 1,000 | — | — | — | — | ||||||||||||||||||
Trading account assets: | ||||||||||||||||||||||||||
U.S. Treasury, agencies and corporations | — | 611 | — | 611 | — | 843 | — | 843 | ||||||||||||||||||
States and political subdivisions | — | 52 | — | 52 | — | 30 | — | 30 | ||||||||||||||||||
Other mortgage-backed securities | — | 13 | $ | 27 | 40 | — | 78 | — | 78 | |||||||||||||||||
Other securities | $ | 1 | 12 | — | 13 | — | 44 | — | 44 | |||||||||||||||||
Total trading account securities | 1 | 688 | 27 | 716 | — | 995 | — | 995 | ||||||||||||||||||
Commercial loans | — | 17 | — | 17 | — | 45 | — | 45 | ||||||||||||||||||
Total trading account assets | 1 | 705 | 27 | 733 | — | 1,040 | — | 1,040 | ||||||||||||||||||
Securities available for sale: | ||||||||||||||||||||||||||
U.S. Treasury, agencies and corporations | — | 4,464 | — | 4,464 | — | 334 | — | 334 | ||||||||||||||||||
States and political subdivisions | — | 3 | — | 3 | — | 4 | — | 4 | ||||||||||||||||||
Agency residential collateralized mortgage obligations | — | 13,732 | — | 13,732 | — | 12,783 | — | 12,783 | ||||||||||||||||||
Agency residential mortgage-backed securities | — | 1,326 | — | 1,326 | — | 1,714 | — | 1,714 | ||||||||||||||||||
Agency commercial mortgage-backed securities | — | 7,358 | — | 7,358 | — | 6,997 | — | 6,997 | ||||||||||||||||||
Other securities | — | — | 12 | 12 | — | — | $ | 11 | 11 | |||||||||||||||||
Total securities available for sale | — | 26,883 | 12 | 26,895 | — | 21,832 | 11 | 21,843 | ||||||||||||||||||
Other investments: | ||||||||||||||||||||||||||
Principal investments: | ||||||||||||||||||||||||||
Direct | — | — | 1 | 1 | — | — | 1 | 1 | ||||||||||||||||||
Indirect (measured at NAV) (a)
|
— | — | — | 60 | — | — | — | 68 | ||||||||||||||||||
Total principal investments | — | — | 1 | 61 | — | — | 1 | 69 | ||||||||||||||||||
Equity investments: | ||||||||||||||||||||||||||
Direct | — | — | 12 | 12 | — | — | 12 | 12 | ||||||||||||||||||
Direct (measured at NAV) (a)
|
— | — | — | 1 | — | — | — | 1 | ||||||||||||||||||
Indirect (measured at NAV) (a)
|
— | — | — | 7 | — | — | — | 8 | ||||||||||||||||||
Total equity investments | — | — | 12 | 20 | — | — | 12 | 21 | ||||||||||||||||||
Total other investments | — | — | 13 | 81 | — | — | 13 | 90 | ||||||||||||||||||
Loans, net of unearned income (residential) | — | — | 8 | 8 | — | — | 4 | 4 | ||||||||||||||||||
Loans held for sale (residential) | — | 287 | 1 | 288 | — | 140 | — | 140 | ||||||||||||||||||
Derivative assets: | ||||||||||||||||||||||||||
Interest rate | — | 1,746 | 81 | 1,827 | — | 941 | 22 | 963 | ||||||||||||||||||
Foreign exchange | 56 | 18 | — | 74 | $ | 49 | 18 | — | 67 | |||||||||||||||||
Commodity | — | 462 | — | 462 | — | 208 | — | 208 | ||||||||||||||||||
Credit | — | 1 | 2 | 3 | — | — | 1 | 1 | ||||||||||||||||||
Other | — | 26 | 44 | 70 | — | 9 | 5 | 14 | ||||||||||||||||||
Derivative assets | 56 | 2,253 | 127 | 2,436 | 49 | 1,176 | 28 | 1,253 | ||||||||||||||||||
Netting adjustments (b)
|
— | — | — | (490) | — | — | — | (473) | ||||||||||||||||||
Total derivative assets | 56 | 2,253 | 127 | 1,946 | 49 | 1,176 | 28 | 780 | ||||||||||||||||||
Accrued income and other assets | — | — | — | — | — | — | — | — | ||||||||||||||||||
Total assets on a recurring basis at fair value | $ | 57 | $ | 30,128 | $ | 188 | $ | 30,951 | $ | 49 | $ | 24,188 | $ | 56 | $ | 23,897 | ||||||||||
LIABILITIES MEASURED ON A RECURRING BASIS | ||||||||||||||||||||||||||
Bank notes and other short-term borrowings: | ||||||||||||||||||||||||||
Short positions | $ | 289 | $ | 529 | — | $ | 818 | $ | 19 | $ | 686 | — | $ | 705 | ||||||||||||
Derivative liabilities: | ||||||||||||||||||||||||||
Interest rate | — | 306 | — | 306 | — | 253 | — | 253 | ||||||||||||||||||
Foreign exchange | 51 | 17 | — | 68 | 43 | 17 | — | 60 | ||||||||||||||||||
Commodity | — | 445 | — | 445 | — | 200 | — | 200 | ||||||||||||||||||
Credit | — | — | $ | 15 | 15 | — | 1 | $ | 9 | 10 | ||||||||||||||||
Other | — | 13 | — | 13 | — | 10 | — | 10 | ||||||||||||||||||
Derivative liabilities | 51 | 781 | 15 | 847 | 43 | 481 | 9 | 533 | ||||||||||||||||||
Netting adjustments (b)
|
— | — | — | (679) | — | — | — | (335) | ||||||||||||||||||
Total derivative liabilities | 51 | 781 | 15 | 168 | 43 | 481 | 9 | 198 | ||||||||||||||||||
Total liabilities on a recurring basis at fair value | $ | 340 | $ | 1,310 | $ | 15 | $ | 986 | $ | 62 | $ | 1,167 | $ | 9 | $ | 903 | ||||||||||
Asset/liability class | Valuation technique | Valuation hierarchy classification(s) | ||||||
Securities (includes trading account assets, securities available for sale, and U.S. Treasury Bills classified as short-term investments) |
Fair value of Level 1 securities is determined by:
• Quoted market prices available in an active market for identical securities. This includes exchange-traded equity securities.
Fair value of Level 2 securities is determined by:
• Pricing models (either by a third party pricing service or internally). Inputs include: yields, benchmark securities, bids, offers, actual trade data (i.e., spreads, credit ratings, and interest rates) for comparable assets, spread tables, matrices, high-grade scales, and option-adjusted spreads.
• Observable market prices of similar securities.
Fair value of Level 3 securities is determined by:
• Internally developed valuation techniques, principally discounted cash flow methods (income approach).
• Revenue multiples of comparable public companies (market approach).
For Level 3 securities, increases (decreases) in the discount rate and marketability discount used in the discounted cash flow models would have resulted in lower (higher) fair value measurements. Higher volatility factors would have further magnified changes in fair value.
The valuations provided by the third-party pricing service are based on observable market inputs, which include benchmark yields, reported trades, issuer spreads, benchmark securities, bids, offers, and reference data obtained from market research publications. Inputs used by the third-party pricing service in valuing CMOs and other mortgage-backed securities also include new issue data, monthly payment information, whole loan collateral performance, and “To Be Announced” prices. In valuations of securities issued by state and political subdivisions, inputs used by the third-party pricing service also include material event notices.
|
Level 1, 2, and 3 (primarily Level 2) | ||||||
Commercial loans (trading account assets) |
Fair value is based on:
• Observable market price spreads for similar loans. Valuations reflect prices within the bid-ask spread that are most representative of fair value.
|
Level 2 | ||||||
Principal investments (direct)
|
Direct principal investments consist of equity and debt instruments of private companies made by our principal investing entities. Fair value is determined using:
• Operating performance and market multiples of comparable businesses
• Other unique facts and circumstances related to each individual investment
Direct principal investments are accounted for as investment companies in accordance with the applicable accounting guidance, whereby each investment is adjusted to fair value with any net realized or unrealized gain/loss recorded in the current period’s earnings.
We are in the process of winding down our direct principal investment portfolio. As of September 30, 2020, the balance is less than $1 million.
|
Level 3
|
||||||
Principal investments (indirect) |
Indirect principal investments include primary and secondary investments in private equity funds engaged mainly in venture- and growth-oriented investing. These investments do not have readily determinable fair values and qualify for the practical expedient to estimate fair value based upon net asset value per share (or its equivalent, such as member units or an ownership interest in partners’ capital to which a proportionate share of net assets is attributed).
Indirect principal investments are also accounted for as investment companies, whereby each investment is adjusted to fair value with any net realized or unrealized gain/loss recorded in the current period’s earnings.
Under the provisions of the Volcker Rule, we are required to dispose or conform our indirect investments to the requirements of the statute by no later than July 21, 2022. As of September 30, 2020, we have not committed to a plan to sell these investments. Therefore, these investments continue to be valued using the net asset value per share methodology.
|
NAV |
Financial support provided | ||||||||||||||||||||||||||||||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||||||||||||||||
September 30, 2020 | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||
in millions |
Fair
Value
|
Unfunded
Commitments
|
Funded
Commitments
|
Funded
Other
|
Funded
Commitments
|
Funded
Other
|
Funded
Commitments
|
Funded
Other
|
Funded
Commitments
|
Funded
Other
|
||||||||||||||||||||||||||||||||||
INVESTMENT TYPE | ||||||||||||||||||||||||||||||||||||||||||||
Direct investments | $ | 1 | — | — | $ | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Indirect investments (measured at NAV) (a)
|
60 | $ | 18 | $ | 1 | — | — | — | $ | 1 | — | $ | 2 | — | ||||||||||||||||||||||||||||||
Total | $ | 61 | $ | 18 | 1 | $ | — | — | — | $ | 1 | — | $ | 2 | — | |||||||||||||||||||||||||||||
Asset/liability class | Valuation technique | Valuation hierarchy classification(s) | ||||||
Other direct equity investments |
Fair value is determined using:
• Discounted cash flows
• Operating performance and market/exit multiples of comparable businesses
• Other unique facts and circumstances related to each individual investment
For Level 3 securities, increases (decreases) in the discount rate and marketability discount used in the discounted cash flow models would have resulted in lower (higher) fair value measurements. Higher volatility factors would have further magnified changes in fair value. Level 2 investments reflect the price of recent investments, which is deemed representative of fair value.
|
Level 2 and 3 | ||||||
Other direct and indirect equity investments (NAV) |
Certain direct investments do not have readily determinable fair values and qualify for the practical expedient in the accounting guidance that allows us to estimate fair value based upon net asset value per share.
|
NAV | ||||||
Loans held for sale and held for investment (residential) |
Residential mortgage loans held for sale are accounted for at fair value. The election of the fair value option aligns the accounting for these assets with the related forward loan sale commitments. Fair values are based on:
• Quoted market prices, where available
• Prices for other traded mortgage loans with similar characteristics
• Purchase commitments and bid information received from market participants
Prices are adjusted as necessary to include:
• The embedded servicing value in the loans
• The specific characteristics of certain loans that are priced based on the pricing of similar loans. (These adjustments represent unobservable inputs to the valuation but are not considered significant given the relative insensitivity of the value to changes in these inputs to the fair value of the loans.)
Residential loans held for investment: Certain residential loans held for sale contain salability exceptions that make them unable to be sold into the performing loan sales market. Loans in this category are transferred to the held to maturity loan portfolio and are included in “Loans, net of unearned income” on the balance sheet. This type of loan is classified as Level 3 in the valuation hierarchy as transaction details regarding sales of this type of loan are often unavailable.
Fair value is based upon:
• Unobservable bid information from brokers and investors
Higher (lower) unobservable bid information would have resulted in higher (lower) fair value measurements.
|
Level 1, 2 and 3 (primarily Level 2) |
Asset/liability class | Valuation technique | Valuation hierarchy classification(s) | ||||||
Derivatives |
Exchange-traded derivatives are valued using quoted prices in active markets and, therefore, are classified as Level 1 instruments.
The majority of our derivative positions are Level 2 and are valued using internally developed models based on market convention and observable market inputs. These derivative contracts include interest rate swaps, certain options, floors, cross currency swaps, credit default swaps, and forward mortgage loan sale commitments. Significant inputs used in the valuation models include:
• LIBOR and OIS curves, index pricing curves, foreign currency curves
• Volatility surfaces (a three-dimensional graph of implied volatility against strike price and maturity)
We have customized derivative instruments and risk participations that are classified as Level 3 instruments. These derivative positions are valued using internally developed models, with inputs consisting of available market data, including:
• Credit spreads and interest rates
The unobservable internally derived assumptions include:
• Loss given default
• Internal risk assessments of customers
The fair value represents an estimate of the amount that the risk participation counterparty would need to pay/receive as of the measurement date based on the probability of customer default on the swap transaction and the fair value of the underlying customer swap. Therefore, for sold risk participation agreements, a higher loss probability and a lower credit rating would negatively affect the fair value of the risk participations and a lower loss probability and higher credit rating would positively affect the fair value of the risk participations. (For purchased risk participation agreements, higher loss probabilities and lower credit ratings would positively affect the fair value.)
We use interest rate lock commitments for our residential mortgage business, which are classified as Level 3 instruments. The significant components of the valuation model include:
• Interest rates observable in the market
• Investor supplied prices for similar securities
• The probability of the loan closing (i.e. the "pull-through" amount, a significant unobservable input). Increases (decreases) in the probability of the loan closing would have resulted in higher (lower) fair value measurements.
Valuation of residential mortgage forward sale commitments utilizes observable market prices of comparable commitments and mortgage securities (Level 2).
|
Level 1, 2, and 3 (primarily Level 2) | ||||||
Liability for short positions |
This includes fixed income securities held by our broker dealer in its trading inventory. Fair value of Level 1 securities is determined by:
• Quoted market prices available in an active market for identical securities
Fair value of Level 2 securities is determined by:
• Observable market prices of similar securities
• Market activity, spreads, credit ratings and interest rates for each security type
|
Level 1 and 2 |
in millions | Beginning of Period Balance | Gains (Losses) Included in Other Comprehensive Income | Gains (Losses) Included in Earnings | Purchases | Sales | Settlements | Transfers Other | Transfers into Level 3 | Transfers out of Level 3 | End of Period Balance | Unrealized Gains (Losses) Included in Earnings | |||||||||||||||||||||||||||||||||
Nine months ended September 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||
Trading account assets | ||||||||||||||||||||||||||||||||||||||||||||
Other mortgage-backed securities | — | — | — | — | $ | (9) | — | — | $ | 36 |
(d)
|
— | $ | 27 | — | |||||||||||||||||||||||||||||
Securities available for sale | ||||||||||||||||||||||||||||||||||||||||||||
Other securities | $ | 11 | $ | 1 | — |
|
— | — | — | — | — | — | 12 | — | ||||||||||||||||||||||||||||||
Other investments | ||||||||||||||||||||||||||||||||||||||||||||
Principal investments | ||||||||||||||||||||||||||||||||||||||||||||
Direct (a)
|
1 | — | — | — | — | — | — | — | — | 1 | — | |||||||||||||||||||||||||||||||||
Equity investments | ||||||||||||||||||||||||||||||||||||||||||||
Direct (a)
|
12 | — | — | — | — | — | — | — | — | 12 | — | |||||||||||||||||||||||||||||||||
Loans held for sale (residential) | — | — | — | — | (10) | — | $ | 11 | — | — | 1 | — | ||||||||||||||||||||||||||||||||
Loans, net of unearned income (residential) | 4 | — | — | — | (2) | — | 6 | — | — | 8 | — | |||||||||||||||||||||||||||||||||
Derivative instruments (b)
|
||||||||||||||||||||||||||||||||||||||||||||
Interest rate | 22 | — | $ | 18 |
(c)
|
$ | 14 | (5) | — | — | 98 |
(d)
|
$ | (66) |
(d)
|
81 | — | |||||||||||||||||||||||||||
Credit | (8) | — | (6) |
(c)
|
1 | — | — | — | — | — | (13) | — | ||||||||||||||||||||||||||||||||
Other (e)
|
5 | — | — | — | — | — | 39 | — | — | 44 | — | |||||||||||||||||||||||||||||||||
Three months ended September 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||
Trading account assets | ||||||||||||||||||||||||||||||||||||||||||||
Other mortgage-backed securities | $ | 36 | — | — | — | $ | (9) | — | — | — | — | $ | 27 | — | ||||||||||||||||||||||||||||||
Securities available for sale | ||||||||||||||||||||||||||||||||||||||||||||
Other securities | 12 | $ | — | — |
|
— | — | — | — | — | — | 12 | — | |||||||||||||||||||||||||||||||
Other investments | ||||||||||||||||||||||||||||||||||||||||||||
Principal investments | ||||||||||||||||||||||||||||||||||||||||||||
Direct (a)
|
1 | — | — | — | — | — | — | — | — | 1 | — | |||||||||||||||||||||||||||||||||
Equity investments | ||||||||||||||||||||||||||||||||||||||||||||
Direct (a)
|
12 | — | — | — | — | — | — | — | — | 12 | — | |||||||||||||||||||||||||||||||||
Loans held for sale (residential) | — | — | — | — | — | — | $ | 1 | — | — | 1 | — | ||||||||||||||||||||||||||||||||
Loans, net of unearned income (residential) | 5 | — | — | — | — | — | 3 | — | — | 8 | — | |||||||||||||||||||||||||||||||||
Derivative instruments (b)
|
||||||||||||||||||||||||||||||||||||||||||||
Interest rate | 52 | — | $ | (3) |
(c)
|
$ | 2 | (4) | — | — | $ | 36 |
(d)
|
$ | (2) |
(d)
|
81 | — | ||||||||||||||||||||||||||
Credit | (17) | — | 4 |
(c)
|
— | — | — | — | (13) | — | ||||||||||||||||||||||||||||||||||
Other (e)
|
46 | — | 5 | — | — | — | (7) | — | — | 44 | — |
in millions | Beginning of Period Balance | Gains (Losses) Included in Other Comprehensive Income | Gains (Losses) Included in Earnings | Purchases | Sales | Settlements | Transfers Other | Transfers into Level 3 | Transfers out of Level 3 | End of Period Balance | Unrealized Gains (Losses) Included in Earnings | |||||||||||||||||||||||||||||||||
Nine months ended September 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||
Securities available for sale | ||||||||||||||||||||||||||||||||||||||||||||
Other securities | $ | 20 | $ | 15 | — |
|
— | — | — | — | — | $ | (24) | $ | 11 | — | ||||||||||||||||||||||||||||
Other investments | ||||||||||||||||||||||||||||||||||||||||||||
Principal investments | ||||||||||||||||||||||||||||||||||||||||||||
Direct (a)
|
1 | — | — | — | — | — | — | — | — | 1 | — | |||||||||||||||||||||||||||||||||
Equity investments | ||||||||||||||||||||||||||||||||||||||||||||
Direct (a)
|
7 | — | $ | (1) | — | — | — | — | $ | 1 | — | 7 | — | |||||||||||||||||||||||||||||||
Loans held for sale (residential) | — | — | — | — | $ | (1) | — | $ | 2 | — | — | 1 | — | |||||||||||||||||||||||||||||||
Loans, net of unearned income (residential) | 3 | — | — | — | — | — | — | — | — | 3 | — | |||||||||||||||||||||||||||||||||
Derivative instruments (b)
|
||||||||||||||||||||||||||||||||||||||||||||
Interest rate | 5 | — | 4 |
(c)
|
— | — | — | — | 2 |
(d)
|
(8) |
(d)
|
3 | — | ||||||||||||||||||||||||||||||
Credit | — | — | (5) |
(c)
|
$ | (1) | 1 | — | — | — | — | (5) | — | |||||||||||||||||||||||||||||||
Other (e)
|
3 | — | — | — | — | — | 3 | — | — | 6 | — | |||||||||||||||||||||||||||||||||
Three months ended September 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||
Securities available for sale | ||||||||||||||||||||||||||||||||||||||||||||
Other securities | $ | 11 | $ | — | — |
|
— | — | — | — | — | — | $ | 11 | — | |||||||||||||||||||||||||||||
Other investments | ||||||||||||||||||||||||||||||||||||||||||||
Principal investments | ||||||||||||||||||||||||||||||||||||||||||||
Direct (a)
|
1 | — | — | — | — | — | — | — | — | 1 | — | |||||||||||||||||||||||||||||||||
Equity investments | ||||||||||||||||||||||||||||||||||||||||||||
Direct (a)
|
7 | — | — | — | — | — | — | — | — | 7 | — | |||||||||||||||||||||||||||||||||
Loans held for sale (residential) | — | — | — | — | — | — | $ | 1 | — | — | 1 | — | ||||||||||||||||||||||||||||||||
Loans, net of unearned income (residential) | 3 | — | — | — | — | — | — | — | — | 3 | — | |||||||||||||||||||||||||||||||||
Derivative instruments (b)
|
||||||||||||||||||||||||||||||||||||||||||||
Interest rate | 4 | — | $ | 1 |
(c)
|
— | — | — | — | — | $ | (2) |
(d)
|
3 | — | |||||||||||||||||||||||||||||
Credit | (1) | — | (5) |
(c)
|
— | $ | 1 | — | — | — | — |
|
(5) | — | ||||||||||||||||||||||||||||||
Other (e)
|
6 | — | — | — | — | — | — | — | — | 6 | — | |||||||||||||||||||||||||||||||||
September 30, 2020 | December 31, 2019 | ||||||||||||||||||||||||||||
in millions | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||
ASSETS MEASURED ON A NONRECURRING BASIS | |||||||||||||||||||||||||||||
Collateral-dependent loans | — | $ | — | $ | 89 | $ | 89 | — | — | $ | 76 | $ | 76 | ||||||||||||||||
Accrued income and other assets | — | — | 103 | 103 | — | $ | 118 | 51 | 169 | ||||||||||||||||||||
Total assets on a nonrecurring basis at fair value | — | $ | — | $ | 192 | $ | 192 | — | $ | 118 | $ | 127 | $ | 245 | |||||||||||||||
Asset/liability class | Valuation technique | Valuation hierarchy classification(s) | ||||||
Collateral-dependent loans
|
When a loan is collateral-dependent, the fair value of the loan is determined based on the fair value of the underlying collateral. | Level 3 | ||||||
Commercial loans and student loans held for sale |
Through a quarterly analysis of our loan portfolios held for sale, which include both performing and nonperforming commercial loans and student loans, we determine any adjustments necessary to record the portfolios at the lower of cost or fair value in accordance with GAAP. Valuation inputs include:
• Non-binding bids for the respective loans or similar loans
• Recent sales transactions
• Internal models that emulate recent securitizations
|
Level 2 and 3 | ||||||
Direct financing leases and operating lease assets held for sale |
Valuations of direct financing leases and operating lease assets held for sale are performed using an internal model that relies on market data, including:
• Swap rates and bond ratings
• Our own assumptions about the exit market for the leases
• Details about the individual leases in the portfolio
Leases for which we receive a current nonbinding bid, and for which the sale is considered probable, may be classified as Level 2. Valuations of lease and operating lease assets held for sale that employ our own assumptions are classified as Level 3 assets. The inputs based on our own assumptions include changes in the value of leased items and internal credit ratings.
|
Level 2 and 3 | ||||||
OREO, other repossessed personal property, and right-of-use assets(a)
|
OREO, other repossessed properties, and right-of-use assets are valued based on:
• Appraisals and third-party price opinions, less estimated selling costs
Generally, we classify these assets as Level 3, but OREO and other repossessed properties for which we receive binding purchase agreements are classified as Level 2. Returned lease inventory is valued based on market data for similar assets and is classified as Level 2.
|
Level 2 and 3 |
Level 3 Asset (Liability) |
Valuation
Technique
|
Significant
Unobservable Input
|
Range (Weighted-Average) (b), (c)
|
|||||||||||||||||
dollars in millions
|
September 30, 2020 | December 31, 2019 | September 30, 2020 | December 31, 2019 | ||||||||||||||||
Recurring | ||||||||||||||||||||
Trading account assets: | ||||||||||||||||||||
Other mortgage-backed securities
|
$ | 27 | $ | — | Discounted cash flows | Discount rate | 3.10% - 4.11% (3.25%) | N/A | ||||||||||||
Conditional prepayment rate | N/A (9.00) | N/A | ||||||||||||||||||
Constant default rate | N/A (0.75) | N/A | ||||||||||||||||||
Loss severity | N/A (50.00%) | N/A | ||||||||||||||||||
Securities available-for-sale:
|
||||||||||||||||||||
Other securities
|
$ | 12 | 11 |
Discounted cash flows
|
Discount rate
|
N/A (15.09%) | N/A (16.10%) | |||||||||||||
Marketability discount
|
N/A (30.00%) | N/A (30.00%) | ||||||||||||||||||
Volatility factor
|
N/A (44.00%) | N/A (43.00%) | ||||||||||||||||||
Other investments:(a)
|
||||||||||||||||||||
Equity investments
|
||||||||||||||||||||
Direct
|
12 | 12 |
Discounted cash flows
|
Discount rate
|
13.39 - 16.42% (14.93%) | 13.91 - 17.24% (15.61%) | ||||||||||||||
Marketability discount
|
N/A (30.00%) | N/A (30.00%) | ||||||||||||||||||
Volatility factor
|
N/A (55.00%) | N/A (47.00%) | ||||||||||||||||||
Loans held for sale (residential)
|
1 | — |
Market comparable pricing
|
Comparability factor
|
N/A (91.38%) | N/A | ||||||||||||||
Loans, net of unearned income (residential)
|
8 | 4 |
Market comparable pricing
|
Comparability factor
|
79.00-98.37% (94.73%) | 79.00 - 98.00% (91.05%) | ||||||||||||||
Derivative instruments:
|
||||||||||||||||||||
Interest rate
|
81 | 22 |
Discounted cash flows
|
Probability of default
|
.02 - 100% (11.50%) | .02 - 100% (5.40%) | ||||||||||||||
Internal risk rating
|
1 - 19 (9.284) | 1 - 19 (9.168) | ||||||||||||||||||
Loss given default
|
0 - 1 (.471) | 0 - 1 (.492) | ||||||||||||||||||
Credit (assets)
|
2 | 1 |
Discounted cash flows
|
Probability of default
|
.02 - 100% (8.20%) | .02 - 100% (4.2%) | ||||||||||||||
Internal risk rating
|
1 - 19 (10.581) | 1 - 19 (10.13) | ||||||||||||||||||
Loss given default
|
0 - 1 (.490) | 0 - 1 (.498) | ||||||||||||||||||
Credit (liabilities)
|
(15) | (9) |
Discounted cash flows
|
Probability of default
|
.02 - 100% (16.08%) | .02 - 100% (12.24%) | ||||||||||||||
Internal risk rating
|
1 - 19 (7.980) | 1 - 19 (8.058) | ||||||||||||||||||
Loss given default
|
0 - 1 (.397) | 0 - 1 (.411) | ||||||||||||||||||
Other(d)
|
44 | 5 |
Discounted cash flows
|
Loan closing rates
|
29.12 - 99.69 % (76.23%) | 37.71 - 99.69% (79.33%) | ||||||||||||||
Nonrecurring | ||||||||||||||||||||
Collateral-dependent loans | 89 | 76 |
Fair value of collateral
|
Discount rate | 0 - 95.00% (26.00%) | 0 - 60.00% (10.00%) | ||||||||||||||
Accrued income and other assets:
|
||||||||||||||||||||
OREO and other Level 3 assets (e)
|
2 | 5 | Appraised value | Appraised value | N/M | N/M | ||||||||||||||
September 30, 2020 | ||||||||||||||||||||||||||
Fair Value | ||||||||||||||||||||||||||
in millions |
Carrying
Amount
|
Level 1 | Level 2 | Level 3 |
Measured
at NAV
|
Netting
Adjustment
|
Total | |||||||||||||||||||
ASSETS (by measurement category) | ||||||||||||||||||||||||||
Fair value - net income | ||||||||||||||||||||||||||
Trading account assets (b)
|
733 | $ | 1 | 705 | $ | 27 | — | — | 733 | |||||||||||||||||
Other investments (b)
|
620 | — | — | 552 | $ | 68 | — | 620 | ||||||||||||||||||
Loans, net of unearned income (residential) (d)
|
8 | — | — | 8 | — | — | 8 | |||||||||||||||||||
Loans held for sale (residential) (b)
|
288 | — | 287 | 1 | — | — | 288 | |||||||||||||||||||
Derivative assets - trading (b)
|
1,841 | 56 | 2,182 | 127 | — | $ | (524) |
(f)
|
1,841 | |||||||||||||||||
Fair value - OCI | ||||||||||||||||||||||||||
Securities available for sale (b)
|
26,895 | — | 26,883 | $ | 12 | — | — | 26,895 | ||||||||||||||||||
Derivative assets - hedging (b)(g)
|
105 | — | 71 | — | — | 34 |
(f)
|
105 | ||||||||||||||||||
Amortized cost | ||||||||||||||||||||||||||
Held-to-maturity securities (c)
|
8,384 | — | 8,842 | — | — | — | 8,842 | |||||||||||||||||||
Loans, net of unearned income (d)
|
101,343 | — | — | 99,826 | — | — | 99,826 | |||||||||||||||||||
Loans held for sale (b)
|
1,436 | — | — | 1,436 | — | — | 1,436 | |||||||||||||||||||
Other | ||||||||||||||||||||||||||
Short-term investments - U.S. Treasury Bills (b)
|
$ | 1,000 | — | $ | 1,000 | — | — | — | $ | 1,000 | ||||||||||||||||
Cash and other short-term investments (a)
|
14,104 | 14,104 | — | — | — | — | 14,104 | |||||||||||||||||||
LIABILITIES (by measurement category) | ||||||||||||||||||||||||||
Fair value - net income | ||||||||||||||||||||||||||
Derivative liabilities - trading (b)
|
$ | 166 | $ | 51 | $ | 775 | 15 | — | $ | (675) |
(f)
|
$ | 166 | |||||||||||||
Fair value - OCI | ||||||||||||||||||||||||||
Derivative liabilities - hedging (b)(g)
|
2 | — | 6 | — | — | (4) |
(f)
|
2 | ||||||||||||||||||
Amortized cost | ||||||||||||||||||||||||||
Time deposits (e)
|
6,795 | — | 6,826 | — | — | — | 6,826 | |||||||||||||||||||
Short-term borrowings (a)
|
1,031 | 289 | 742 | — | — | — | 1,031 | |||||||||||||||||||
Long-term debt (e)
|
12,685 | 12,852 | 733 | — | — | — | 13,585 | |||||||||||||||||||
Other | ||||||||||||||||||||||||||
Deposits with no stated maturity (a)
|
129,951 | — | 129,951 | — | — | — |
|
129,951 |
December 31, 2019 | ||||||||||||||||||||||||||
Fair Value | ||||||||||||||||||||||||||
in millions |
Carrying
Amount
|
Level 1 | Level 2 | Level 3 |
Measured
at NAV
|
Netting
Adjustment
|
Total | |||||||||||||||||||
ASSETS (by measurement category) | ||||||||||||||||||||||||||
Fair value - net income | ||||||||||||||||||||||||||
Trading account assets (b)
|
$ | 1,040 | — | $ | 1,040 | — | — | — | $ | 1,040 | ||||||||||||||||
Other investments (b)
|
605 | — | — | $ | 528 | $ | 77 | — | 605 | |||||||||||||||||
Loans, net of unearned income (residential) (d)
|
4 | — | — | 4 | — | — | 4 | |||||||||||||||||||
Loans held for sale (residential) (b)
|
140 | — | 140 | — | — | — | 140 | |||||||||||||||||||
Derivative assets - trading (b)
|
715 | $ | 49 | 985 | 28 | — | $ | (347) |
(f)
|
715 | ||||||||||||||||
Fair value - OCI | ||||||||||||||||||||||||||
Securities available for sale (b)
|
21,843 | — | 21,832 | 11 | — | — | 21,843 | |||||||||||||||||||
Derivative assets - hedging (b)(g)
|
65 | — | 191 | — | — | (126) |
(f)
|
65 | ||||||||||||||||||
Amortized cost | ||||||||||||||||||||||||||
Held-to-maturity securities (c)
|
10,067 | — | 10,116 | — | — | — | 10,116 | |||||||||||||||||||
Loans, net of unearned income (d)
|
93,742 | — | — | 92,641 | — | — | 92,641 | |||||||||||||||||||
Loans held for sale (b)
|
1,194 | — | — | 1,194 | — | — | 1,194 | |||||||||||||||||||
Other | ||||||||||||||||||||||||||
Short-term investments - U.S. Treasury Bills (b)
|
— | — | — | — | — | — | — | |||||||||||||||||||
Cash and other short-term investments (a)
|
2,004 | 2,004 | — | — | — | — | 2,004 | |||||||||||||||||||
LIABILITIES (by measurement category) | ||||||||||||||||||||||||||
Fair value - net income | ||||||||||||||||||||||||||
Derivative liabilities - trading (b)
|
$ | 194 | $ | 43 | $ | 461 | 9 | — | $ | (319) |
(f)
|
$ | 194 | |||||||||||||
Fair value - OCI | ||||||||||||||||||||||||||
Derivative liabilities - hedging (b)(g)
|
4 | — | 20 | — | — | (16) |
(f)
|
4 | ||||||||||||||||||
Amortized cost | ||||||||||||||||||||||||||
Time deposits (e)
|
11,652 | — | 11,752 | — | — | — | 11,752 | |||||||||||||||||||
Short-term borrowings (a)
|
1,092 | 19 | 1,073 | — | — | — | 1,092 | |||||||||||||||||||
Long-term debt (e)
|
12,448 | 12,694 | 249 | — | — | — | 12,943 | |||||||||||||||||||
Other | ||||||||||||||||||||||||||
Deposits with no stated maturity (a)
|
100,218 | — | 100,218 | — | — | — | 100,218 |
September 30, 2020 | December 31, 2019 | ||||||||||||||||||||||||||||
in millions |
Amortized
Cost (a)
|
Gross Unrealized Gains | Gross Unrealized Losses |
Fair
Value
|
Amortized
Cost
|
Gross Unrealized Gains | Gross Unrealized Losses |
Fair
Value
|
|||||||||||||||||||||
SECURITIES AVAILABLE FOR SALE | |||||||||||||||||||||||||||||
U.S. Treasury, agencies, and corporations | $ | 4,463 | $ | 1 | — | $ | 4,464 | $ | 334 | — | — | $ | 334 | ||||||||||||||||
States and political subdivisions | 3 | — | — | 3 | 4 | — | — | 4 | |||||||||||||||||||||
Agency residential collateralized mortgage obligations
|
13,403 | 336 | $ | 7 | 13,732 | 12,772 | $ | 82 | $ | 71 | 12,783 | ||||||||||||||||||
Agency residential mortgage-backed securities | 1,256 | 71 | 1 | 1,326 | 1,677 | 41 | 4 | 1,714 | |||||||||||||||||||||
Agency commercial mortgage-backed securities | 6,921 | 442 | 5 | 7,358 | 6,898 | 139 | 40 | 6,997 | |||||||||||||||||||||
Other securities | 8 | 4 | — | 12 | 7 | 4 | — | 11 | |||||||||||||||||||||
Total securities available for sale | $ | 26,054 | $ | 854 | $ | 13 | $ | 26,895 | $ | 21,692 | $ | 266 | $ | 115 | $ | 21,843 | |||||||||||||
HELD-TO-MATURITY SECURITIES | |||||||||||||||||||||||||||||
Agency residential collateralized mortgage obligations
|
$ | 4,308 | $ | 141 | — | $ | 4,449 | $ | 5,692 | $ | 23 | $ | 49 | $ | 5,666 | ||||||||||||||
Agency residential mortgage-backed securities | 313 | 11 | — | 324 | 409 | 6 | — | 415 | |||||||||||||||||||||
Agency commercial mortgage-backed securities | 3,726 | 306 | — | 4,032 | 3,940 | 78 | 9 | 4,009 | |||||||||||||||||||||
Asset-backed securities | 22 | — | — | 22 | 11 | — | — | 11 | |||||||||||||||||||||
Other securities | 15 | — | — | 15 | 15 | — | — | 15 | |||||||||||||||||||||
Total held-to-maturity securities | $ | 8,384 | $ | 458 | — | $ | 8,842 | $ | 10,067 | $ | 107 | $ | 58 | $ | 10,116 | ||||||||||||||
Duration of Unrealized Loss Position | ||||||||||||||||||||||||||
Less than 12 Months | 12 Months or Longer | Total | ||||||||||||||||||||||||
in millions |
Fair
Value
|
Gross
Unrealized
Losses
|
Fair
Value
|
Gross
Unrealized
Losses
|
Fair
Value
|
Gross
Unrealized
Losses
|
||||||||||||||||||||
September 30, 2020 | ||||||||||||||||||||||||||
Securities available for sale:
|
||||||||||||||||||||||||||
Agency residential collateralized mortgage obligations
|
$ | 1,453 | 7 | — | — | $ | 1,453 | $ | 7 | |||||||||||||||||
Agency residential mortgage-backed securities
|
7 | 1 | $ | 5 | — |
(a)
|
12 | 1 | ||||||||||||||||||
Agency commercial mortgage-backed securities
|
764 | 5 | — | — | 764 | 5 | ||||||||||||||||||||
Held-to-maturity securities:
|
||||||||||||||||||||||||||
Agency residential collateralized mortgage obligations
|
— | — | 29 | — |
(a)
|
29 | — | |||||||||||||||||||
Asset-backed securities
|
1 | — |
(a)
|
— | — | 1 | — | |||||||||||||||||||
Other securities
|
8 | — |
(a)
|
— | — | 8 | — | |||||||||||||||||||
Total securities in an unrealized loss position | $ | 2,233 | 13 | $ | 34 | — | $ | 2,267 | $ | 13 | ||||||||||||||||
December 31, 2019 | ||||||||||||||||||||||||||
Securities available for sale:
|
||||||||||||||||||||||||||
U.S. Treasury, agencies, and corporations
|
$ | 30 | — |
(b)
|
$ | 30 | — |
(b)
|
$ | 60 | — | |||||||||||||||
Agency residential collateralized mortgage obligations | 3,432 | $ | 20 | 3,221 | $ | 51 | 6,653 | $ | 71 | |||||||||||||||||
Agency residential mortgage-backed securities
|
33 | — |
(b)
|
629 | 4 | 662 | 4 | |||||||||||||||||||
Agency commercial mortgage-backed securities | 1,541 | 17 | 1,213 | 23 | 2,754 | 40 | ||||||||||||||||||||
Held-to-maturity securities:
|
||||||||||||||||||||||||||
Agency residential collateralized mortgage obligations | 1,626 | 14 | 2,289 | 35 | 3,915 | 49 | ||||||||||||||||||||
Agency residential mortgage-backed securities
|
56 | — |
(b)
|
— | — | 56 | — | |||||||||||||||||||
Agency commercial mortgage-backed securities | 518 | 9 | — | — | 518 | 9 | ||||||||||||||||||||
Asset-backed securities
|
11 | — |
(b)
|
— | — | 11 | — | |||||||||||||||||||
Other securities
|
3 | — |
(b)
|
— | — | 3 | — | |||||||||||||||||||
Total securities in an unrealized loss position | $ | 7,250 | $ | 60 | $ | 7,382 | $ | 113 | $ | 14,632 | $ | 173 | ||||||||||||||
September 30, 2020 | Securities Available for Sale | Held to Maturity Securities | ||||||||||||
in millions | Amortized Cost | Fair Value | Amortized Cost | Fair Value | ||||||||||
Due in one year or less | $ | 5,125 | $ | 5,134 | $ | 102 | $ | 104 | ||||||
Due after one through five years | 14,883 | 15,439 | 5,649 | 5,880 | ||||||||||
Due after five through ten years | 5,608 | 5,887 | 2,620 | 2,845 | ||||||||||
Due after ten years | 438 | 435 | 13 | 13 | ||||||||||
Total | $ | 26,054 | $ | 26,895 | $ | 8,384 | $ | 8,842 | ||||||
September 30, 2020 | December 31, 2019 | ||||||||||||||||||||||
Fair Value | Fair Value | ||||||||||||||||||||||
in millions |
Notional
Amount
|
Derivative
Assets
|
Derivative
Liabilities
|
Notional
Amount
|
Derivative
Assets
|
Derivative
Liabilities
|
|||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||||||
Interest rate | $ | 34,220 | $ | 71 | $ | 6 | $ | 39,208 | $ | 191 | $ | 20 | |||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||||
Interest rate | 75,507 | 1,756 | 300 | 71,209 | 772 | 233 | |||||||||||||||||
Foreign exchange | 5,879 | 74 | 68 | 6,572 | 67 | 60 | |||||||||||||||||
Commodity | 7,738 | 462 | 445 | 5,324 | 208 | 200 | |||||||||||||||||
Credit | 487 | 3 | 15 | 427 | 1 | 10 | |||||||||||||||||
Other (a)
|
5,572 | 70 | 13 | 3,337 | 14 | 10 | |||||||||||||||||
Total | 95,183 | 2,365 | 841 | 86,869 | 1,062 | 513 | |||||||||||||||||
Netting adjustments (b)
|
— | (490) | (679) | — | (473) | (335) | |||||||||||||||||
Net derivatives in the balance sheet | 129,403 | 1,946 | 168 | 126,077 | 780 | 198 | |||||||||||||||||
Other collateral (c)
|
— | (3) | (1) | — | (2) | (42) | |||||||||||||||||
Net derivative amounts | $ | 129,403 | $ | 1,943 | $ | 167 | $ | 126,077 | $ | 778 | $ | 156 | |||||||||||
September 30, 2020 | |||||||||||
in millions | Balance sheet line item in which the hedge item is included |
Carrying amount of hedged item (a)
|
Hedge accounting basis adjustment (b)
|
||||||||
Interest rate contracts | Long-term debt | $ | 8,255 | $ | 492 | ||||||
December 31, 2019 | |||||||||||
Balance sheet line item in which the hedge item is included |
Carrying amount of hedged item (a)
|
Hedge accounting basis adjustment (b)
|
|||||||||
Interest rate contracts | Long-term debt | $ | 8,408 | $ | 240 | ||||||
Location and amount of net gains (losses) recognized in income on fair value and cash flow hedging relationships | ||||||||||||||||||||
in millions | Interest expense – long-term debt | Interest income – loans | Interest expense - deposits | Other income | ||||||||||||||||
Three months ended September 30, 2020 | ||||||||||||||||||||
Total amounts presented in the consolidated statement of income | $ | (64) | $ | 927 | $ | (54) | $ | 28 | ||||||||||||
Net gains (losses) on fair value hedging relationships | ||||||||||||||||||||
Interest contracts | ||||||||||||||||||||
Recognized on hedged items | 47 | — | — | — | ||||||||||||||||
Recognized on derivatives designated as hedging instruments | (7) | — | — | — | ||||||||||||||||
Net income (expense) recognized on fair value hedges | $ | 40 | — | — | — | |||||||||||||||
Net gain (loss) on cash flow hedging relationships | ||||||||||||||||||||
Interest contracts | ||||||||||||||||||||
Realized gains (losses) (pre-tax) reclassified from AOCI into net income | $ | (1) | $ | 100 | — | — | ||||||||||||||
Net income (expense) recognized on cash flow hedges | $ | (1) | $ | 100 | — | — | ||||||||||||||
Three months ended September 30, 2019 | ||||||||||||||||||||
Total amounts presented in the consolidated statement of income | $ | (114) | $ | 1,073 | $ | 227 | $ | 27 | ||||||||||||
Net gains (losses) on fair value hedging relationships | ||||||||||||||||||||
Interest contracts | ||||||||||||||||||||
Recognized on hedged items | $ | (75) | — | $ | — | — | ||||||||||||||
Recognized on derivatives designated as hedging instruments | 72 | — | — | — | ||||||||||||||||
Net income (expense) recognized on fair value hedges | $ | (3) | — | $ | — | — | ||||||||||||||
Net gain (loss) on cash flow hedging relationships | ||||||||||||||||||||
Interest contracts | ||||||||||||||||||||
Realized gains (losses) (pre-tax) reclassified from AOCI into net income | $ | (1) | $ | (8) | — | — | ||||||||||||||
Net income (expense) recognized on cash flow hedges | $ | (1) | $ | (8) | — | — | ||||||||||||||
in millions | Net Gains (Losses) Recognized in OCI | Income Statement Location of Net Gains (Losses) Reclassified From OCI Into Income | Net Gains (Losses) Reclassified From OCI Into Income | |||||||||||
Three months ended September 30, 2020 | ||||||||||||||
Cash Flow Hedges | ||||||||||||||
Interest rate | $ | 5 | Interest income — Loans | $ | 100 | |||||||||
Interest rate | — | Interest expense — Long-term debt | (1) | |||||||||||
Interest rate | 10 | Investment banking and debt placement fees | — | |||||||||||
Total | $ | 15 | $ | 99 | ||||||||||
Three months ended September 30, 2019 | ||||||||||||||
Cash Flow Hedges | ||||||||||||||
Interest rate | $ | 86 | Interest income — Loans | $ | (8) | |||||||||
Interest rate | (2) | Interest expense — Long-term debt | (1) | |||||||||||
Interest rate | (4) | Investment banking and debt placement fees | — | |||||||||||
Net Investment Hedges | ||||||||||||||
Foreign exchange contracts | 1 | Other Income | — | |||||||||||
Total | $ | 81 | $ | (9) | ||||||||||
in millions |
Net Gains (Losses)
Recognized in OCI
|
Income Statement Location of Net Gains (Losses)
Reclassified From OCI Into Income
|
Net Gains
(Losses) Reclassified
From OCI Into Income(a)
|
|||||||||||
Nine months ended September 30, 2020 | ||||||||||||||
Cash Flow Hedges | ||||||||||||||
Interest rate | $ | 629 | Interest income — Loans | $ | 224 | |||||||||
Interest rate | (6) | Interest expense — Long-term debt | (3) | |||||||||||
Interest rate | (10) | Investment banking and debt placement fees | — | |||||||||||
Net Investment Hedges | ||||||||||||||
Foreign exchange contracts | — | Other Income | — | |||||||||||
Total | $ | 613 | $ | 221 | ||||||||||
Nine months ended September 30, 2019 | ||||||||||||||
Cash Flow Hedges | ||||||||||||||
Interest rate | $ | 471 | Interest income — Loans | $ | (51) | |||||||||
Interest rate | (5) | Interest expense — Long-term debt | (2) | |||||||||||
Interest rate | (10) | Investment banking and debt placement fees | — | |||||||||||
Net Investment Hedges | ||||||||||||||
Foreign exchange contracts | (3) | Other Income | — | |||||||||||
Total | $ | 453 | $ | (53) | ||||||||||
Three months ended September 30, 2020 | Three months ended September 30, 2019 | ||||||||||||||||||||||||||||
in millions |
Corporate
services
income
|
Consumer mortgage income | Other income | Total | Corporate services income | Consumer mortgage income | Other income | Total | |||||||||||||||||||||
NET GAINS (LOSSES) | |||||||||||||||||||||||||||||
Interest rate | $ | 5 | — | $ | (1) | $ | 4 | $ | 16 | — | (1) | $ | 15 | ||||||||||||||||
Foreign exchange | 9 | — | — | 9 | 11 | — | — | 11 | |||||||||||||||||||||
Commodity | 5 | — | — | 5 | 2 | — | — | 2 | |||||||||||||||||||||
Credit | 4 | — | (8) | (4) | (5) | — | $ | (8) | (13) | ||||||||||||||||||||
Other | — | 28 | (8) | 20 | — | 5 | (3) | 2 | |||||||||||||||||||||
Total net gains (losses) | $ | 23 | 28 | $ | (17) | $ | 34 | $ | 24 | 5 | $ | (12) | $ | 17 | |||||||||||||||
Nine months ended September 30, 2020 | Nine months ended September 30, 2019 | ||||||||||||||||||||||||||||
in millions |
Corporate
services
income
|
Consumer mortgage income | Other income | Total | Corporate services income | Consumer mortgage income | Other income | Total | |||||||||||||||||||||
NET GAINS (LOSSES) | |||||||||||||||||||||||||||||
Interest rate | $ | 23 | $ | — | $ | (10) | $ | 13 | $ | 31 | — | $ | (3) | $ | 28 | ||||||||||||||
Foreign exchange | 29 | — | — | 29 | 32 | — | — | 32 | |||||||||||||||||||||
Commodity | 13 | — | — | 13 | 5 | — | — | 5 | |||||||||||||||||||||
Credit | (6) | — | (20) | (26) | (4) | — | (23) | (27) | |||||||||||||||||||||
Other | — | 36 | 17 | 53 | — | $ | 5 | — | 5 | ||||||||||||||||||||
Total net gains (losses) | $ | 59 | $ | 36 | $ | (13) | $ | 82 | $ | 64 | $ | 5 | $ | (26) | $ | 43 | |||||||||||||
in millions | September 30, 2020 | December 31, 2019 | ||||||
Interest rate | $ | 1,680 | $ | 848 | ||||
Foreign exchange | 28 | 30 | ||||||
Commodity | 212 | 95 | ||||||
Credit | — | — | ||||||
Other | 70 | 14 | ||||||
Derivative assets before collateral | 1,990 | 987 | ||||||
Less: Related collateral | 44 | 207 | ||||||
Total derivative assets | $ | 1,946 | $ | 780 | ||||
September 30, 2020 | December 31, 2019 | ||||||||||||||||||||||
dollars in millions |
Notional
Amount
|
Average
Term
(Years)
|
Payment /
Performance
Risk
|
Notional
Amount
|
Average
Term
(Years)
|
Payment /
Performance
Risk
|
|||||||||||||||||
Other | $ | 287 | 13.48 | 17.15 | % | $ | 134 | 14.30 | 14.56 | % | |||||||||||||
Total credit derivatives sold | $ | 287 | — | — | $ | 134 | — | — | |||||||||||||||
September 30, 2020 | December 31, 2019 | ||||||||||||||||
in millions | Moody’s | S&P | Moody’s | S&P | |||||||||||||
KeyBank’s long-term senior unsecured credit ratings | A3 | A- | A3 | A- | |||||||||||||
One rating downgrade | $ | 1 | $ | 1 | $ | 1 | $ | 1 | |||||||||
Two rating downgrades | 1 | 1 | 1 | 1 | |||||||||||||
Three rating downgrades | 1 | 1 | 1 | 1 |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||
in millions | 2020 | 2019 | 2020 | 2019 | |||||||||||||
Balance at beginning of period | $ | 565 | $ | 509 | $ | 539 | $ | 502 | |||||||||
Servicing retained from loan sales | 30 | 30 | 107 | 71 | |||||||||||||
Purchases | 6 | 10 | 24 | 33 | |||||||||||||
Amortization | (29) | (29) | (88) | (86) | |||||||||||||
Temporary impairments | (6) | (2) | (16) | (2) | |||||||||||||
Balance at end of period | $ | 566 | $ | 518 | $ | 566 | $ | 518 | |||||||||
Fair value at end of period | $ | 685 | $ | 681 | $ | 685 | $ | 681 | |||||||||
dollars in millions | September 30, 2020 | September 30, 2019 | ||||||||||||
Valuation Technique |
Significant
Unobservable Input
|
Range
(Weighted Average)
|
||||||||||||
Discounted cash flow | Expected defaults | 1.00 - 2.00% (1.17%) | 1.00 - 2.00% (1.13%) | |||||||||||
Residual cash flows discount rate | 7.72 - 10.66% (9.30%) | 7.00 - 11.50% (9.30%) | ||||||||||||
Escrow earn rate | 0.92 - 1.16% (1.05%) | 1.46 - 2.36% (2.02%) | ||||||||||||
Loan assumption rate | 0.00 - 1.78% (1.39%) | 0.01 - 3.37% (1.38%) |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||
in millions | 2020 | 2019 | 2020 | 2019 | |||||||||||||
Balance at beginning of period | $ | 46 | $ | 39 | $ | 46 | $ | 37 | |||||||||
Servicing retained from loan sales | 12 | 5 | 25 | 9 | |||||||||||||
Purchases | — | — | — | — | |||||||||||||
Amortization | (4) | (3) | (9) | (5) | |||||||||||||
Temporary (impairments) recoveries | (1) | — | (9) | — | |||||||||||||
Balance at end of period | $ | 53 | $ | 41 | $ | 53 | $ | 41 | |||||||||
Fair value at end of period | $ | 54 | $ | 43 | $ | 54 | $ | 43 | |||||||||
September 30, 2020 | September 30, 2019 | |||||||||||||
Valuation Technique |
Significant
Unobservable Input
|
Range
(Weighted Average)
|
||||||||||||
Discounted cash flow | Prepayment speed | 12.35% - 53.36% (16.89%) | 12.06 - 62.96% (14.53%) | |||||||||||
Discount rate | 7.51-8.80% (7.57%) | 7.50 - 10.00% (7.53%) | ||||||||||||
Servicing cost | $62.00 - $5,125 ($81.67) | $62 - $4,375 ($67.67) |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||
in millions | 2020 | 2019 | 2020 | 2019 | |||||||||||||
Sales-type and direct financing leases | |||||||||||||||||
Interest income on lease receivable | $ | 36 | $ | 31 | $ | 91 | $ | 92 | |||||||||
Interest income related to accretion of unguaranteed residual asset | (7) | 3 | (1) | 9 | |||||||||||||
Interest income on deferred fees and costs | — | — | — | — | |||||||||||||
Total sales-type and direct financing lease income | 29 | 34 | 90 | 101 | |||||||||||||
Operating leases | |||||||||||||||||
Operating lease income related to lease payments | 34 | 34 | 103 | 100 | |||||||||||||
Other operating leasing gains | 4 | 8 | 25 | 23 | |||||||||||||
Total operating lease income and other leasing gains | 38 | 42 | 128 | 123 | |||||||||||||
Total lease income | $ | 67 | $ | 76 | $ | 218 | $ | 224 | |||||||||
Unconsolidated VIEs | |||||||||||
in millions |
Total
Assets
|
Total
Liabilities
|
Maximum
Exposure to Loss
|
||||||||
September 30, 2020 | |||||||||||
LIHTC investments | $ | 6,693 | $ | 2,547 | $ | 1,820 | |||||
December 31, 2019 | |||||||||||
LIHTC investments | $ | 6,405 | $ | 2,526 | $ | 1,846 |
Unconsolidated VIEs | |||||||||||
in millions |
Total
Assets
|
Total
Liabilities
|
Maximum
Exposure to Loss
|
||||||||
September 30, 2020 | |||||||||||
Indirect investments | $ | 11,225 | $ | 173 | $ | 78 | |||||
December 31, 2019 | |||||||||||
Indirect investments | $ | 12,954 | $ | 205 | $ | 89 |
September 30, 2020 | December 31, 2019 | ||||||||||||||||||||||||||||
in millions |
Gross Amount
Presented in
Balance Sheet
|
Netting
Adjustments (a)
|
Collateral (b)
|
Net
Amounts
|
Gross Amount
Presented in
Balance Sheet
|
Netting
Adjustments (a)
|
Collateral (b)
|
Net
Amounts
|
|||||||||||||||||||||
Offsetting of financial assets: | |||||||||||||||||||||||||||||
Reverse repurchase agreements | $ | 7 | $ | (7) | — | — | $ | 5 | $ | (5) | — | — | |||||||||||||||||
Total | $ | 7 | $ | (7) | — | — | $ | 5 | $ | (5) | — | — | |||||||||||||||||
Offsetting of financial liabilities: | |||||||||||||||||||||||||||||
Repurchase agreements (c)
|
$ | 213 | $ | (20) | $ | (193) | — | $ | 187 | $ | (7) | $ | (180) | — | |||||||||||||||
Total | $ | 213 | $ | (20) | $ | (193) | — | $ | 187 | $ | (7) | $ | (180) | — | |||||||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||
in millions | 2020 | 2019 | 2020 | 2019 | |||||||||||||
Interest cost on PBO | $ | 9 | $ | 11 | $ | 26 | $ | 34 | |||||||||
Expected return on plan assets | (10) | (12) | (29) | (36) | |||||||||||||
Amortization of losses | 5 | 4 | 13 | 11 | |||||||||||||
Settlement loss | — | — | 8 | — | |||||||||||||
Net pension cost | $ | 4 | $ | 3 | $ | 18 | $ | 9 | |||||||||
dollars in millions |
Trust Preferred Securities, Net of Discount (a)
|
Common Stock |
Principal Amount of Debentures, Net of Discount (b)
|
Interest Rate of Trust Preferred Securities and Debentures (c)
|
Maturity of Trust Preferred Securities and Debentures | ||||||||||||
September 30, 2020 | |||||||||||||||||
KeyCorp Capital I | $ | 156 | $ | 6 | $ | 162 | 1.036 | % | 2028 | ||||||||
KeyCorp Capital II | 112 | 4 | 116 | 6.875 | 2029 | ||||||||||||
KeyCorp Capital III | 148 | 4 | 152 | 7.750 | 2029 | ||||||||||||
HNC Statutory Trust III | 19 | 1 | 20 | 1.656 | 2035 | ||||||||||||
Willow Grove Statutory Trust I | 19 | 1 | 20 | 1.560 | 2036 | ||||||||||||
HNC Statutory Trust IV | 17 | 1 | 18 | 1.548 | 2037 | ||||||||||||
Westbank Capital Trust II | 8 | — | 8 | 2.417 | 2034 | ||||||||||||
Westbank Capital Trust III | 8 | — | 8 | 2.417 | 2034 | ||||||||||||
Total
|
$ | 487 | $ | 17 | $ | 504 | 4.528 | % | — | ||||||||
December 31, 2019 | $ | 466 | $ | 17 | $ | 483 | 5.214 | % | — | ||||||||
September 30, 2020 | Maximum Potential Undiscounted Future Payments | Liability Recorded | ||||||
in millions | ||||||||
Financial guarantees: | ||||||||
Standby letters of credit | $ | 3,107 | $ | 72 | ||||
Recourse agreement with FNMA | 5,662 | 23 | ||||||
Residential mortgage reserve | 2,280 | 9 | ||||||
Written put options (a)
|
3,284 | 63 | ||||||
Total | $ | 14,333 | $ | 167 | ||||
in millions | Unrealized gains (losses) on securities available for sale | Unrealized gains (losses) on derivative financial instruments | Foreign currency translation adjustment | Net pension and postretirement benefit costs | Total | ||||||||||||
Balance at December 31, 2019 | $ | 115 | $ | 250 | — | $ | (339) | $ | 26 | ||||||||
Other comprehensive income before reclassification, net of income taxes
|
530 | 467 | — | (1) | 996 | ||||||||||||
Amounts reclassified from AOCI, net of income taxes (a)
|
(3) | (168) | — | 16 | (155) | ||||||||||||
Net current-period other comprehensive income, net of income taxes | 527 | 299 | — | 15 | 841 | ||||||||||||
Balance at September 30, 2020 | $ | 642 | $ | 549 | — | $ | (324) | $ | 867 | ||||||||
Balance at June 30, 2020 | $ | 650 | $ | 613 | — | $ | (327) | $ | 936 | ||||||||
Other comprehensive income before reclassification, net of income taxes
|
(8) | 11 | — | (1) | 2 | ||||||||||||
Amounts reclassified from AOCI, net of income taxes (a)
|
— | (75) | — | 4 | (71) | ||||||||||||
Net current-period other comprehensive income, net of income taxes | (8) | (64) | — | 3 | (69) | ||||||||||||
Balance at September 30, 2020 | $ | 642 | $ | 549 | — | $ | (324) | $ | 867 | ||||||||
Balance at December 31, 2018 | $ | (373) | $ | (50) | $ | (14) | $ | (381) | $ | (818) | |||||||
Other comprehensive income before reclassification, net of income taxes
|
579 | 346 | 4 | 12 | 941 | ||||||||||||
Amounts reclassified from AOCI, net of income taxes (a)
|
(11) | 40 | — | 7 | 36 | ||||||||||||
Net current-period other comprehensive income, net of income taxes | 568 | 386 | 4 | 19 | 977 | ||||||||||||
Balance at September 30, 2019 | $ | 195 | $ | 336 | $ | (10) | $ | (362) | $ | 159 | |||||||
Balance at June 30, 2019 | $ | 102 | $ | 268 | $ | (10) | $ | (362) | $ | (2) | |||||||
Other comprehensive income before reclassification, net of income taxes
|
104 | 62 | — | (2) | 164 | ||||||||||||
Amounts reclassified from AOCI, net of income taxes (a)
|
(11) | 6 | — | 2 | (3) | ||||||||||||
Net current-period other comprehensive income, net of income taxes | 93 | 68 | — | — | 161 | ||||||||||||
Balance at September 30, 2019 | $ | 195 | $ | 336 | $ | (10) | $ | (362) | $ | 159 | |||||||
Three months ended September 30, | Affected Line Item in the Statement Where Net Income is Presented | ||||||||||
in millions | 2020 | 2019 | |||||||||
Unrealized gains (losses) on available for sale securities | |||||||||||
Realized gains | — | 15 | Other income | ||||||||
Realized losses | — | — | Other income | ||||||||
— | 15 | Income (loss) from continuing operations before income taxes | |||||||||
— | 4 | Income taxes | |||||||||
— | 11 | Income (loss) from continuing operations | |||||||||
Unrealized gains (losses) on derivative financial instruments | |||||||||||
Interest rate | $ | 100 | $ | (8) | Interest income — Loans | ||||||
Interest rate | (1) | (1) | Interest expense — Long-term debt | ||||||||
99 | (9) | Income (loss) from continuing operations before income taxes | |||||||||
24 | (3) | Income taxes | |||||||||
$ | 75 | (6) | Income (loss) from continuing operations | ||||||||
Net pension and postretirement benefit costs | |||||||||||
Amortization of losses | $ | (5) | $ | (4) | Other expense | ||||||
Settlement loss | — | — | Other expense | ||||||||
(5) | (3) | Income (loss) from continuing operations before income taxes | |||||||||
(1) | (1) | Income taxes | |||||||||
$ | (4) | $ | (2) | Income (loss) from continuing operations | |||||||
Nine months ended September 30, | Affected Line Item in the Statement Where Net Income is Presented | ||||||||||
in millions | 2020 | 2019 | |||||||||
Unrealized gains (losses) on available for sale securities | |||||||||||
Realized gains | $ | 4 | 15 | Other income | |||||||
4 | 15 | Income (loss) from continuing operations before income taxes | |||||||||
1 | 4 | Income taxes | |||||||||
$ | 3 | 11 | Income (loss) from continuing operations | ||||||||
Unrealized gains (losses) on derivative financial instruments | |||||||||||
Interest rate | $ | 224 | $ | (51) | Interest income — Loans | ||||||
Interest rate | (3) | (2) | Interest expense — Long-term debt | ||||||||
221 | (53) | Income (loss) from continuing operations before income taxes | |||||||||
53 | (13) | Income taxes | |||||||||
$ | 168 | (40) | Income (loss) from continuing operations | ||||||||
Net pension and postretirement benefit costs | |||||||||||
Amortization of losses | $ | (13) | $ | (11) | Other expense | ||||||
Settlement loss | (8) | — | Other expense | ||||||||
Amortization of unrecognized prior service credit | — | 1 | Other expense | ||||||||
(21) | (10) | Income (loss) from continuing operations before income taxes | |||||||||
(5) | (3) | Income taxes | |||||||||
$ | (16) | $ | (7) | Income (loss) from continuing operations | |||||||
Preferred stock series | Amount outstanding (in millions) | Shares authorized and outstanding | Par value | Liquidation preference | Ownership interest per depositary share | Liquidation preference per depositary share | Third quarter 2020 dividends paid per depositary share | ||||||||||||||||
Fixed-to-Floating Rate Perpetual Noncumulative Series D | $ | 525 | 21,000 | $ | 1 | $ | 25,000 | 1/25th | $ | 1,000 | $ | 12.50 | |||||||||||
Fixed-to-Floating Rate Perpetual Noncumulative Series E | 500 | 500,000 | 1 | 1,000 | 1/40th | 25 | .382813 | ||||||||||||||||
Fixed Rate Perpetual Noncumulative Series F | 425 | 425,000 | 1 | 1,000 | 1/40th | 25 | .353125 | ||||||||||||||||
Fixed Rate Perpetual Non-Cumulative Series G | 450 | 450,000 | 1 | 1,000 | 1/40th | 25 | .351563 | ||||||||||||||||
Three months ended September 30, | Consumer Bank | Commercial Bank | Other | Total Key | |||||||||||||||||||||||||||||||
dollars in millions | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||
SUMMARY OF OPERATIONS | |||||||||||||||||||||||||||||||||||
Net interest income (TE) | $ | 604 | $ | 595 | $ | 421 | $ | 399 | $ | (19) | $ | (14) | $ | 1,006 | $ | 980 | |||||||||||||||||||
Noninterest income | 267 | 238 | 383 | 381 | 31 | 31 | 681 | 650 | |||||||||||||||||||||||||||
Total revenue (TE) (a)
|
871 | 833 | 804 | 780 | 12 | 17 | 1,687 | 1,630 | |||||||||||||||||||||||||||
Provision for credit losses | (16) | 48 | 163 | 32 | 13 | 120 | 160 | 200 | |||||||||||||||||||||||||||
Depreciation and amortization expense | 19 | 25 | 35 | 35 | 35 | 38 | 89 | 98 | |||||||||||||||||||||||||||
Other noninterest expense | 552 | 504 | 408 | 343 | (12) | (6) | 948 | 841 | |||||||||||||||||||||||||||
Income (loss) from continuing operations before income taxes (TE)
|
316 | 256 | 198 | 370 | (24) | (135) | 490 | 491 | |||||||||||||||||||||||||||
Allocated income taxes and TE adjustments
|
75 | 60 | 38 | 69 | (47) | (51) | 66 | 78 | |||||||||||||||||||||||||||
Income (loss) from continuing operations | 241 | 196 | 160 | 301 | 23 | (84) | 424 | 413 | |||||||||||||||||||||||||||
Income (loss) from discontinued operations, net of taxes
|
— | — | — | — | 4 | 3 | 4 | 3 | |||||||||||||||||||||||||||
Net income (loss) | 241 | 196 | 160 | 301 | 27 | (81) | 428 | 416 | |||||||||||||||||||||||||||
Less: Net income (loss) attributable to noncontrolling interests
|
— | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Net income (loss) attributable to Key | $ | 241 | $ | 196 | $ | 160 | $ | 301 | $ | 27 | $ | (81) | $ | 428 | $ | 416 | |||||||||||||||||||
AVERAGE BALANCES (b)
|
|||||||||||||||||||||||||||||||||||
Loans and leases | $ | 41,471 | $ | 32,760 | $ | 62,925 | $ | 58,215 | $ | 523 | $ | 981 | $ | 104,919 | $ | 91,956 | |||||||||||||||||||
Total assets (a)
|
44,888 | 36,397 | 72,613 | 66,549 | 51,310 | 41,212 | 168,811 | 144,158 | |||||||||||||||||||||||||||
Deposits | 83,175 | 72,995 | 51,238 | 36,204 | 531 | 1,080 | 134,944 | 110,279 | |||||||||||||||||||||||||||
OTHER FINANCIAL DATA | |||||||||||||||||||||||||||||||||||
Net loan charge-offs (b)
|
$ | 23 | $ | 40 | $ | 104 | $ | 35 | $ | — | $ | 122 | $ | 127 | $ | 197 | |||||||||||||||||||
Return on average allocated equity (b)
|
27.03 | % | 23.22 | % | 12.57 | % | 26.18 | % | 1.00 | % | (3.62) | % | 9.51 | % | 9.57 | % | |||||||||||||||||||
Return on average allocated equity | 27.03 | 23.22 | 12.57 | 26.18 | 1.18 | (3.49) | 9.60 | 9.64 | |||||||||||||||||||||||||||
Average full-time equivalent employees (c)
|
8,350 | 8,458 | 2,112 | 2,226 | 6,635 | 6,214 | 17,097 | 16,898 |
Nine months ended September 30, | Consumer Bank | Commercial Bank | Other | Total Key | ||||||||||||||||||||||||||||||||||
dollars in millions | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||||
SUMMARY OF OPERATIONS | ||||||||||||||||||||||||||||||||||||||
Net interest income (TE) | $ | 1,788 | $ | 1,780 | $ | 1,285 | $ | 1,206 | $ | (53) | $ | (32) | $ | 3,020 | $ | 2,954 | ||||||||||||||||||||||
Noninterest income | 745 | 683 | 1,007 | 1,035 | 98 | 90 | 1,850 | 1,808 | ||||||||||||||||||||||||||||||
Total revenue (TE) (a)
|
2,533 | 2,463 | 2,292 | 2,241 | 45 | 58 | 4,870 | 4,762 | ||||||||||||||||||||||||||||||
Provision for credit losses | 291 | 133 | 696 | 80 | 14 | 123 | 1,001 | 336 | ||||||||||||||||||||||||||||||
Depreciation and amortization expense | 59 | 71 | 108 | 100 | 105 | 112 | 272 | 283 | ||||||||||||||||||||||||||||||
Other noninterest expense | 1,610 | 1,547 | 1,131 | 1,051 | (32) | 40 | 2,709 | 2,638 | ||||||||||||||||||||||||||||||
Income (loss) from continuing operations before income taxes (TE)
|
573 | 712 | 357 | 1,010 | (42) | (217) | 888 | 1,505 | ||||||||||||||||||||||||||||||
Allocated income taxes and TE adjustments
|
136 | 169 | 32 | 190 | (34) | (96) | 134 | 263 | ||||||||||||||||||||||||||||||
Income (loss) from continuing operations | 437 | 543 | 325 | 820 | (8) | (121) | 754 | 1,242 | ||||||||||||||||||||||||||||||
Income (loss) from discontinued operations, net of taxes
|
— | — | — | — | 7 | 6 | 7 | 6 | ||||||||||||||||||||||||||||||
Net income (loss) | 437 | 543 | 325 | 820 | (1) | (115) | 761 | 1,248 | ||||||||||||||||||||||||||||||
Less: Net income (loss) attributable to noncontrolling interests
|
— | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Net income (loss) attributable to Key | $ | 437 | $ | 543 | $ | 325 | $ | 820 | $ | (1) |
(d)
|
$ | (115) | $ | 761 | $ | 1,248 | |||||||||||||||||||||
AVERAGE BALANCES (b)
|
||||||||||||||||||||||||||||||||||||||
Loans and leases | $ | 38,632 | $ | 31,993 | $ | 63,679 | $ | 57,803 | $ | 707 | $ | 1,009 | $ | 103,018 | $ | 90,805 | ||||||||||||||||||||||
Total assets (a)
|
42,481 | 35,524 | 72,988 | 65,781 | 44,277 | 41,014 | 159,746 | 142,319 | ||||||||||||||||||||||||||||||
Deposits | 78,682 | 72,201 | 45,082 | 35,534 | 691 | 1,427 | 124,455 | 109,162 | ||||||||||||||||||||||||||||||
OTHER FINANCIAL DATA | ||||||||||||||||||||||||||||||||||||||
Net loan charge-offs (b)
|
$ | 106 | $ | 114 | $ | 201 | $ | 88 | 1 | 124 | $ | 308 | $ | 326 | ||||||||||||||||||||||||
Return on average allocated equity (b)
|
16.69 | % | 22.24 | % | 8.93 | % | 24.15 | % | (.12) | % | (1.87) | % | 5.74 | % | 10.09 | % | ||||||||||||||||||||||
Return on average allocated equity | 16.69 | 22.24 | 8.93 | 24.15 | (.01) | (1.78) | 5.79 | 10.14 | ||||||||||||||||||||||||||||||
Average full-time equivalent employees (c)
|
8,198 | 8,682 | 2,092 | 2,285 | 6,468 | 6,250 | 16,758 | 17,217 |
Three months ended September 30, 2020 | Three months ended September 30, 2019 | ||||||||||||||||||||||
dollars in millions | Consumer Bank | Commercial Bank | Total Contract Revenue | Consumer Bank | Commercial Bank | Total Contract Revenue | |||||||||||||||||
NONINTEREST INCOME | |||||||||||||||||||||||
Trust and investment services income | $ | 100 | $ | 15 | $ | 115 | $ | 89 | $ | 16 | $ | 105 | |||||||||||
Investment banking and debt placement fees | — | 69 | 69 | — | 78 | 78 | |||||||||||||||||
Services charges on deposit accounts | 45 | 32 | 77 | 59 | 27 | 86 | |||||||||||||||||
Cards and payments income | 43 | 69 | 112 | 42 | 27 | 69 | |||||||||||||||||
Other noninterest income | 3 | — | 3 | 3 | — | 3 | |||||||||||||||||
Total revenue from contracts with customers | $ | 191 | $ | 185 | $ | 376 | $ | 193 | $ | 148 | $ | 341 | |||||||||||
Other noninterest income (a)
|
$ | 274 | $ | 278 | |||||||||||||||||||
Noninterest income from Other(b)
|
31 | 31 | |||||||||||||||||||||
Total noninterest income | $ | 681 | $ | 650 | |||||||||||||||||||
Nine months ended September 30, 2020 | Nine months ended September 30, 2019 | ||||||||||||||||||||||
dollars in millions | Consumer Bank | Commercial Bank | Total Contract Revenue | Consumer Bank | Commercial Bank | Total Contract Revenue | |||||||||||||||||
NONINTEREST INCOME | |||||||||||||||||||||||
Trust and investment services income | $ | 279 | $ | 49 | $ | 328 | $ | 265 | $ | 48 | $ | 313 | |||||||||||
Investment banking and debt placement fees | — | 176 | 176 | — | 188 | 188 | |||||||||||||||||
Services charges on deposit accounts | 138 | 91 | 229 | 169 | 82 | 251 | |||||||||||||||||
Cards and payments income | 118 | 147 | 265 | 123 | 81 | 204 | |||||||||||||||||
Other noninterest income | 7 | — | 7 | 10 | — | 10 | |||||||||||||||||
Total revenue from contracts with customers | $ | 542 | $ | 463 | $ | 1,005 | $ | 567 | $ | 399 | $ | 966 | |||||||||||
Other noninterest income (a)
|
$ | 747 | $ | 752 | |||||||||||||||||||
Noninterest income from Other(b)
|
98 | 90 | |||||||||||||||||||||
Total noninterest income | $ | 1,850 | $ | 1,808 | |||||||||||||||||||
|
|||||
Cleveland, Ohio | |||||
November 3, 2020 |
Calendar month |
Total number of shares
purchased (a) |
Average price paid
per share
|
Total number of shares purchased as
part of publicly announced plans or
programs
|
Maximum number of shares that may
yet be purchased as part of publicly
announced plans or programs (b)
|
|||||||||||||||||||
July 1 - 31 | 300 | 13.35 | 300 | 29,845,676 | |||||||||||||||||||
August 1 - 31 | (362) | 21.54 | (362) | 29,095,322 | |||||||||||||||||||
September 1 - 30 | 1,037 | 12.53 | 1,037 | 30,045,380 | |||||||||||||||||||
Total
|
975 | 9.44 | 975 | ||||||||||||||||||||
101 | The following materials from KeyCorp’s Form 10-Q Report for the quarterly period ended September 30, 2020, formatted in inline XBRL: (i) the Consolidated Balance Sheets; (ii) the Consolidated Statements of Income and Consolidated Statements of Comprehensive Income; (iii) the Consolidated Statements of Changes in Equity; (iv) the Consolidated Statements of Cash Flows; and (v) the Notes to Consolidated Financial Statements. | ||||
104 | The cover page from KeyCorp’s Form 10-Q for the quarterly period ended September 30, 2020, formatted in inline XBRL (contained in Exhibit 101). |
*
|
Furnished herewith. |
KEYCORP | |||||
(Registrant) | |||||
Date: November 3, 2020 | /s/ Douglas M. Schosser | ||||
By: Douglas M. Schosser | |||||
Chief Accounting Officer
(Principal Accounting Officer)
|
Date: November 3, 2020 |
|
||||
Christopher M. Gorman | |||||
Chairman, Chief Executive Officer and President |
Date: November 3, 2020 |
|
||||
Donald R. Kimble | |||||
Chief Financial Officer |
Date: November 3, 2020 |
|
||||
Christopher M. Gorman | |||||
Chairman, Chief Executive Officer and President |
Date: November 3, 2020 |
|
||||
Donald R. Kimble | |||||
Chief Financial Officer |