Ohio | 34-6542451 | ||||
State or other jurisdiction of incorporation or organization: | I.R.S. Employer Identification Number: |
127 Public Square, | Cleveland, | Ohio | 44114-1306 | ||||||||
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 | KEY | New York Stock Exchange | ||||||
Depositary Shares (each representing a 1/40th interest in a share of Fixed-to-Floating Rate | KEY PrI | New York Stock Exchange | ||||||
Perpetual Non-Cumulative Preferred Stock, Series E) | ||||||||
Depositary Shares (each representing a 1/40th interest in a share of Fixed Rate Perpetual Non- | KEY PrJ | New York Stock Exchange | ||||||
Cumulative Preferred Stock, Series F) | ||||||||
Depositary Shares (each representing a 1/40th interest in a share of Fixed Rate Perpetual Non- | KEY PrK | New York Stock Exchange | ||||||
Cumulative Preferred Stock, Series G) | ||||||||
Depositary Shares (each representing a 1/40th interest in a share of Fixed Rate Reset Perpetual Non- | KEY PrL | New York Stock Exchange | ||||||
Cumulative Preferred Stock, Series H) |
Large accelerated filer | ☒ | Accelerated filer | ☐ | Non-accelerated filer | ☐ | ||||||||||||
Smaller reporting company | ☐ | Emerging growth company | ☐ |
Common Shares with a par value of $1 each | 935,264,442 shares | ||||
Title of class | Outstanding at May 2, 2023 |
Page Number | ||||||||
Item 1. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. |
PART II. OTHER INFORMATION | ||||||||
Item 1. | ||||||||
Item 1A. | ||||||||
Item 2. | ||||||||
Item 5. | ||||||||
Item 6. | ||||||||
ABO: Accumulated benefit obligation. ALCO: Asset/Liability Management Committee. ALLL: Allowance for loan and lease losses. A/LM: Asset/liability management. AML: Anti-money laundering. AOCI: Accumulated other comprehensive income (loss). APBO: Accumulated postretirement benefit obligation. AQN Strategies: Arbitria Quum Notitia, LLC. ARRC: Alternative Reference Rates Committee. ASC: Accounting Standards Codification. ASR: Accelerated share repurchase. ASU: Accounting Standards Update. ATMs: Automated teller machines. BSA: Bank Secrecy Act. BHCA: Bank Holding Company Act of 1956, as amended. BHCs: Bank holding companies. Board: KeyCorp Board of Directors. CAPM: Capital Asset Pricing Model. CARES Act: Coronavirus Aid, Relief, and Economic Security Act CCAR: Comprehensive Capital Analysis and Review. Cain Brothers: Cain Brothers & Company, LLC. CECL: Current Expected Credit Losses. CFPB: Consumer Financial Protection Bureau, also known as the Bureau of Consumer Financial Protection. CFTC: Commodities Futures Trading Commission. CMBS: Commercial mortgage-backed securities. CMO: Collateralized mortgage obligation. Common Shares: KeyCorp common shares, $1 par value. CVA: Credit valuation adjustment. DCF: Discounted cash flow. DIF: Deposit Insurance Fund of the FDIC. Dodd-Frank Act: Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. EAD: Exposure at default. EBITDA: Earnings before interest, taxes, depreciation, and amortization. EPS: Earnings per share. ERISA: Employee Retirement Income Security Act of 1974. ERM: Enterprise risk management. ESG: Environmental, social, and governance. EVE: Economic value of equity. FASB: Financial Accounting Standards Board. FDIA: Federal Deposit Insurance Act, as amended. FDIC: Federal Deposit Insurance Corporation. Federal Reserve: Board of Governors of the Federal Reserve System. FHLB: Federal Home Loan Bank of Cincinnati. FHLMC: Federal Home Loan Mortgage Corporation. FICO: Fair Isaac Corporation. FINRA: Financial Industry Regulatory Authority. First Niagara: First Niagara Financial Group, Inc. FNMA: Federal National Mortgage Association. | FSOC: Financial Stability Oversight Council. FVA: Fair value of employee benefit plan assets. GAAP: U.S. generally accepted accounting principles. GNMA: Government National Mortgage Association. HTC: Historic tax credit. IRS: Internal Revenue Service. ISDA: International Swaps and Derivatives Association. KBCM: KeyBanc Capital Markets, Inc. KCC: Key Capital Corporation. KCDC: Key Community Development Corporation. KCIC: Key Community Investment Capital LLC. KEF: Key Equipment Finance. LCR: Liquidity coverage ratio. LGD: Loss given default. LIBOR: London Interbank Offered Rate. LIHTC: Low-income housing tax credit. LTV: Loan-to-value. Moody’s: Moody’s Investor Services, Inc. MRM: Market Risk Management group. MRC: Market Risk Committee. N/A: Not applicable. NAV: Net asset value. NFA: National Futures Association. N/M: Not meaningful. NMTC: New market tax credit. NOW: Negotiable Order of Withdrawal. NPR: Notice of proposed rulemaking. NSF: Non-sufficient funds. NYSE: New York Stock Exchange. OCC: Office of the Comptroller of the Currency. OCI: Other comprehensive income (loss). OREO: Other real estate owned. PBO: Projected benefit obligation. PCCR: Purchased credit card relationship. PCD: Purchased credit deteriorated. PD: Probability of default. PPP: Paycheck Protection Program. RMBS: Residential mortgage-backed securities. S&P: Standard and Poor’s Ratings Services, a Division of The McGraw-Hill Companies, Inc. SEC: U.S. Securities & Exchange Commission. SIFIs: Systemically important financial institutions, including large, interconnected BHCs and nonbank financial companies designated by FSOC for supervision by the Federal Reserve. SOFR: Secured Overnight Financing Rate. TDR: Troubled debt restructuring. TE: Taxable-equivalent. U.S. Treasury: United States Department of the Treasury. VaR: Value at risk. VEBA: Voluntary Employee Beneficiary Association. VIE: Variable interest entity. |
Category | Expectations (a) | |||||||
Average loans | up 6% to 9% | |||||||
Average deposits | flat to down 2% | |||||||
Net interest income (TE) | down 1% to 3% | |||||||
Noninterest income | down 1% to 3% | |||||||
Noninterest expense | relatively stable | |||||||
Net charge-offs to average loans | 25 to 30 basis points | |||||||
Effective tax rate | 20% to 21% |
Ratios (including stress capital buffer) | Regulatory Minimum Requirement | Stress Capital Buffer (b) | Regulatory Minimum With Stress Capital Buffer | KeyCorp March 31, 2023 (c) | ||||||||||
Common Equity Tier 1 | 4.5 | % | 2.5 | % | 7.0 | % | 9.1 | % | ||||||
Tier 1 Capital | 6.0 | 2.5 | 8.5 | 10.6 | ||||||||||
Total Capital | 8.0 | 2.5 | 10.5 | 12.8 | ||||||||||
Leverage (a) | 4.0 | N/A | 4.0 | 8.8 |
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 March 31, 2023 | Three months ended March 31, 2022 | 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) | $ | 60,281 | $ | 807 | 5.42 | % | $ | 51,574 | $ | 410 | 3.22 | % | $ | 79 | $ | 318 | $ | 397 | |||||||||||||||||
Real estate — commercial mortgage | 16,470 | 224 | 5.52 | 14,587 | 121 | 3.37 | 17 | 86 | 103 | ||||||||||||||||||||||||||
Real estate — construction | 2,525 | 39 | 6.30 | 2,027 | 17 | 3.37 | 5 | 17 | 22 | ||||||||||||||||||||||||||
Commercial lease financing | 3,783 | 27 | 2.87 | 3,942 | 24 | 2.41 | (1) | 4 | 3 | ||||||||||||||||||||||||||
Total commercial loans | 83,059 | 1,097 | 5.35 | 72,130 | 572 | 3.21 | 100 | 425 | 525 | ||||||||||||||||||||||||||
Real estate — residential mortgage | 21,436 | 172 | 3.21 | 16,309 | 112 | 2.75 | 39 | 21 | 60 | ||||||||||||||||||||||||||
Home equity loans | 7,879 | 106 | 5.47 | 8,345 | 74 | 3.61 | (4) | 36 | 32 | ||||||||||||||||||||||||||
Consumer direct loans | 6,439 | 75 | 4.71 | 5,954 | 61 | 4.16 | 5 | 9 | 14 | ||||||||||||||||||||||||||
Credit cards | 983 | 32 | 13.37 | 932 | 24 | 10.36 | 1 | 7 | 8 | ||||||||||||||||||||||||||
Consumer indirect loans | 41 | 1 | 1.24 | 92 | — | — | — | 1 | 1 | ||||||||||||||||||||||||||
Total consumer loans | 36,778 | 386 | 4.23 | 31,632 | 271 | 3.45 | 41 | 74 | 115 | ||||||||||||||||||||||||||
Total loans | 119,837 | 1,483 | 5.01 | 103,762 | 843 | 3.28 | 141 | 499 | 640 | ||||||||||||||||||||||||||
Loans held for sale | 907 | 13 | 5.86 | 1,485 | 12 | 3.32 | (6) | 7 | 1 | ||||||||||||||||||||||||||
Securities available for sale (b), (e) | 39,172 | 194 | 1.72 | 44,923 | 173 | 1.50 | (24) | 45 | 21 | ||||||||||||||||||||||||||
Held-to-maturity securities (b) | 8,931 | 74 | 3.32 | 7,188 | 46 | 2.54 | 13 | 15 | 28 | ||||||||||||||||||||||||||
Trading account assets | 1,001 | 12 | 4.86 | 842 | 6 | 2.74 | 1 | 5 | 6 | ||||||||||||||||||||||||||
Short-term investments | 3,532 | 42 | 4.80 | 7,323 | 4 | .25 | (3) | 41 | 38 | ||||||||||||||||||||||||||
Other investments (e) | 1,309 | 13 | 4.01 | 651 | 2 | 1.26 | 3 | 8 | 11 | ||||||||||||||||||||||||||
Total earning assets | 174,689 | 1,831 | 4.09 | 166,174 | 1,086 | 2.62 | 125 | 620 | 745 | ||||||||||||||||||||||||||
Allowance for loan and lease losses | (1,336) | (1,056) | |||||||||||||||||||||||||||||||||
Accrued income and other assets | 17,498 | 17,471 | |||||||||||||||||||||||||||||||||
Discontinued assets | 419 | 539 | |||||||||||||||||||||||||||||||||
Total assets | $ | 191,270 | $ | 183,128 | |||||||||||||||||||||||||||||||
LIABILITIES | |||||||||||||||||||||||||||||||||||
Money market deposits | $ | 33,853 | 78 | .94 | $ | 37,233 | 4 | .04 | — | 74 | 74 | ||||||||||||||||||||||||
Demand deposits | 52,365 | 183 | 1.42 | 51,282 | 7 | .06 | — | 176 | 176 | ||||||||||||||||||||||||||
Savings deposits | 7,346 | 1 | .03 | 7,599 | — | .01 | — | 1 | 1 | ||||||||||||||||||||||||||
Certificates of deposit ($100,000 or more) | 2,392 | 16 | 2.64 | 1,639 | 2 | .44 | 1 | 13 | 14 | ||||||||||||||||||||||||||
Other time deposits | 8,106 | 72 | 3.61 | 2,098 | 1 | .15 | 10 | 61 | 71 | ||||||||||||||||||||||||||
Total interest-bearing deposits | 104,062 | 350 | 1.36 | 99,851 | 14 | .06 | 11 | 325 | 336 | ||||||||||||||||||||||||||
Federal funds purchased and securities sold under repurchase agreements | 2,087 | 22 | 4.34 | 287 | — | .13 | — | 22 | 22 | ||||||||||||||||||||||||||
Bank notes and other short-term borrowings | 6,597 | 78 | 4.80 | 705 | 3 | 1.94 | 62 | 13 | 75 | ||||||||||||||||||||||||||
Long-term debt (f), (g) | 20,141 | 275 | 5.47 | 10,830 | 49 | 1.79 | 68 | 158 | 226 | ||||||||||||||||||||||||||
Total interest-bearing liabilities | 132,887 | 725 | 2.20 | 111,673 | 66 | .24 | 141 | 518 | 659 | ||||||||||||||||||||||||||
Noninterest-bearing deposits | 39,343 | 50,312 | |||||||||||||||||||||||||||||||||
Accrued expense and other liabilities | 4,804 | 3,824 | |||||||||||||||||||||||||||||||||
Discontinued liabilities (g) | 419 | 539 | |||||||||||||||||||||||||||||||||
Total liabilities | 177,453 | 166,348 | |||||||||||||||||||||||||||||||||
EQUITY | |||||||||||||||||||||||||||||||||||
Key shareholders’ equity | 13,817 | 16,780 | |||||||||||||||||||||||||||||||||
Noncontrolling interests | — | — | |||||||||||||||||||||||||||||||||
Total equity | 13,817 | 16,780 | |||||||||||||||||||||||||||||||||
Total liabilities and equity | $ | 191,270 | $ | 183,128 | |||||||||||||||||||||||||||||||
Interest rate spread (TE) | 1.89 | % | 2.38 | % | |||||||||||||||||||||||||||||||
Net interest income (TE) and net interest margin (TE) | 1,106 | 2.47 | % | 1,020 | 2.46 | % | $ | (16) | $ | 102 | 86 | ||||||||||||||||||||||||
TE adjustment (b) | 7 | 6 | |||||||||||||||||||||||||||||||||
Net interest income, GAAP basis | $ | 1,099 | $ | 1,014 | |||||||||||||||||||||||||||||||
Dollars in millions | March 31, 2023 | December 31, 2022 | September 30, 2022 | June 30, 2022 | March 31, 2022 | ||||||||||||
Discretionary assets under management by investment type: | |||||||||||||||||
Equity | $ | 29,139 | $ | 28,313 | $ | 26,930 | $ | 28,344 | $ | 32,270 | |||||||
Fixed income | 14,615 | 14,432 | 13,035 | 12,913 | 13,414 | ||||||||||||
Money market | 6,490 | 5,238 | 4,850 | 4,604 | 4,481 | ||||||||||||
Total discretionary assets under management | 50,244 | 47,983 | 44,815 | 45,861 | 50,165 | ||||||||||||
Non-discretionary assets under administration | 3,445 | 3,299 | 3,031 | 3,142 | 3,542 | ||||||||||||
Total | $ | 53,689 | $ | 51,282 | $ | 47,846 | $ | 49,003 | $ | 53,707 | |||||||
March 31, 2023 | Commercial and industrial | Commercial real estate | Commercial lease financing | Total commercial loans | Percent of total | ||||||||||||||||||||||||
Dollars in millions | |||||||||||||||||||||||||||||
Industry classification: | |||||||||||||||||||||||||||||
Agriculture | $ | 855 | $ | 176 | $ | 93 | $ | 1,124 | 1.3 | % | |||||||||||||||||||
Automotive | 1,791 | 824 | 10 | 2,625 | 3.1 | ||||||||||||||||||||||||
Business products | 2,386 | 169 | 36 | 2,591 | 3.1 | ||||||||||||||||||||||||
Business services | 3,648 | 244 | 162 | 4,054 | 4.9 | ||||||||||||||||||||||||
Chemicals | 990 | 48 | 42 | 1,080 | 1.3 | ||||||||||||||||||||||||
Commercial real estate | 8,989 | 13,793 | 10 | 22,792 | 27.4 | ||||||||||||||||||||||||
Construction materials and contractors | 2,237 | 289 | 297 | 2,823 | 3.4 | ||||||||||||||||||||||||
Consumer goods | 4,180 | 588 | 303 | 5,071 | 6.1 | ||||||||||||||||||||||||
Consumer services | 5,011 | 870 | 337 | 6,218 | 7.5 | ||||||||||||||||||||||||
Equipment | 2,010 | 118 | 113 | 2,241 | 2.7 | ||||||||||||||||||||||||
Finance | 9,201 | 109 | 379 | 9,689 | 11.6 | ||||||||||||||||||||||||
Healthcare | 3,409 | 1,372 | 286 | 5,067 | 6.1 | ||||||||||||||||||||||||
Metals and mining | 1,489 | 73 | 92 | 1,654 | 2.0 | ||||||||||||||||||||||||
Oil and gas | 2,338 | 42 | 19 | 2,399 | 2.9 | ||||||||||||||||||||||||
Public exposure | 2,511 | 13 | 540 | 3,064 | 3.7 | ||||||||||||||||||||||||
Technology | 1,057 | 12 | 86 | 1,155 | 1.4 | ||||||||||||||||||||||||
Transportation | 1,149 | 171 | 490 | 1,810 | 2.2 | ||||||||||||||||||||||||
Utilities | 6,885 | 5 | 450 | 7,340 | 8.8 | ||||||||||||||||||||||||
Other | 429 | 22 | 18 | 469 | .5 | ||||||||||||||||||||||||
Total | $ | 60,565 | $ | 18,938 | $ | 3,763 | $ | 83,266 | 100.0 | % | |||||||||||||||||||
December 31, 2022 | Commercial and industrial | Commercial real estate | Commercial lease financing | Total commercial loans | Percent of total | ||||||||||||||||||||||||
Dollars in millions | |||||||||||||||||||||||||||||
Industry classification: | |||||||||||||||||||||||||||||
Agriculture | $ | 907 | $ | 171 | $ | 96 | $ | 1,174 | 1.4 | % | |||||||||||||||||||
Automotive | 1,660 | 741 | 12 | 2,413 | 2.9 | ||||||||||||||||||||||||
Business products | 2,332 | 176 | 37 | 2,545 | 3.1 | ||||||||||||||||||||||||
Business services | 3,497 | 249 | 167 | 3,913 | 4.7 | ||||||||||||||||||||||||
Chemicals | 934 | 31 | 45 | 1,010 | 1.2 | ||||||||||||||||||||||||
Commercial real estate | 8,862 | 13,897 | 7 | 22,766 | 27.6 | ||||||||||||||||||||||||
Construction materials and contractors | 2,351 | 327 | 309 | 2,987 | 3.7 | ||||||||||||||||||||||||
Consumer goods | 4,312 | 544 | 286 | 5,142 | 6.2 | ||||||||||||||||||||||||
Consumer services | 4,963 | 873 | 346 | 6,182 | 7.5 | ||||||||||||||||||||||||
Equipment | 1,988 | 111 | 113 | 2,212 | 2.7 | ||||||||||||||||||||||||
Finance | 8,784 | 111 | 462 | 9,357 | 11.3 | ||||||||||||||||||||||||
Healthcare | 3,379 | 1,348 | 310 | 5,037 | 6.1 | ||||||||||||||||||||||||
Metals and mining | 1,453 | 86 | 94 | 1,633 | 2.0 | ||||||||||||||||||||||||
Oil and gas | 2,385 | 32 | 20 | 2,437 | 3.0 | ||||||||||||||||||||||||
Public exposure | 2,526 | 9 | 582 | 3,117 | 3.8 | ||||||||||||||||||||||||
Technology | 914 | 12 | 89 | 1,015 | 1.2 | ||||||||||||||||||||||||
Transportation | 1,139 | 159 | 497 | 1,795 | 2.2 | ||||||||||||||||||||||||
Utilities | 6,725 | 5 | 450 | 7,180 | 8.7 | ||||||||||||||||||||||||
Other | 536 | — | 14 | 550 | .7 | ||||||||||||||||||||||||
Total | $ | 59,647 | $ | 18,882 | $ | 3,936 | $ | 82,465 | 100.0 | % | |||||||||||||||||||
Geographic Region | Total | Percent of Total | Construction | Commercial Mortgage | |||||||||||||||||||||||||||||||
Dollars in millions | West | Southwest | Central | Midwest | Southeast | Northeast | National | ||||||||||||||||||||||||||||
March 31, 2023 | |||||||||||||||||||||||||||||||||||
Nonowner-occupied: | |||||||||||||||||||||||||||||||||||
Diversified | $ | 9 | $ | — | $ | — | $ | 4 | $ | — | $ | 23 | $ | 231 | $ | 267 | 1.4 | % | $ | — | $ | 267 | |||||||||||||
Industrial | 46 | 25 | 71 | 137 | 223 | 302 | 20 | 824 | 4.4 | 145 | 679 | ||||||||||||||||||||||||
Land & Residential | 1 | 3 | 3 | 4 | 3 | 23 | — | 37 | .2 | 16 | 21 | ||||||||||||||||||||||||
Lodging | 58 | — | 10 | 4 | 21 | 71 | 48 | 212 | 1.1 | 23 | 189 | ||||||||||||||||||||||||
Medical Office | 46 | — | 43 | 10 | 21 | 100 | 27 | 247 | 1.3 | 47 | 200 | ||||||||||||||||||||||||
Multifamily | 1,108 | 551 | 1,263 | 1,303 | 2,897 | 1,412 | 400 | 8,934 | 47.2 | 1,867 | 7,067 | ||||||||||||||||||||||||
Office | 189 | — | 171 | 113 | 123 | 295 | 59 | 950 | 5.0 | — | 950 | ||||||||||||||||||||||||
Retail | 251 | 14 | 110 | 182 | 86 | 377 | 233 | 1,253 | 6.6 | 119 | 1,134 | ||||||||||||||||||||||||
Self Storage | 85 | 13 | 50 | 20 | 80 | 37 | 202 | 487 | 2.6 | 3 | 484 | ||||||||||||||||||||||||
Senior Housing | 152 | 54 | 146 | 76 | 124 | 120 | 233 | 905 | 4.8 | 163 | 742 | ||||||||||||||||||||||||
Skilled Nursing | — | — | — | 51 | — | 222 | 147 | 420 | 2.2 | — | 420 | ||||||||||||||||||||||||
Student Housing | — | — | — | 55 | 201 | — | — | 256 | 1.4 | 43 | 213 | ||||||||||||||||||||||||
Other | 13 | 4 | 9 | 77 | 39 | 78 | 196 | 416 | 2.2 | — | 416 | ||||||||||||||||||||||||
Total nonowner-occupied | 1,958 | 664 | 1,876 | 2,036 | 3,818 | 3,060 | 1,796 | 15,208 | 80.3 | 2,426 | 12,782 | ||||||||||||||||||||||||
Owner-occupied | 1,149 | 4 | 375 | 667 | 167 | 1,368 | — | 3,730 | 19.7 | 164 | 3,566 | ||||||||||||||||||||||||
Total | $ | 3,107 | $ | 668 | $ | 2,251 | $ | 2,703 | $ | 3,985 | $ | 4,428 | $ | 1,796 | $ | 18,938 | 100.0 | % | $ | 2,590 | $ | 16,348 | |||||||||||||
Nonperforming loans | $ | — | — | — | $ | 15 | $ | — | $ | 6 | $ | 38 | $ | 59 | N/M | $ | — | $ | 59 | ||||||||||||||||
Accruing loans past due 90 days or more | — | — | — | — | — | 7 | — | 7 | N/M | — | 7 | ||||||||||||||||||||||||
Accruing loans past due 30 through 89 days | 2 | 2 | 1 | — | 10 | 2 | — | 17 | N/M | — | 17 | ||||||||||||||||||||||||
December 31, 2022 | |||||||||||||||||||||||||||||||||||
Nonowner-occupied: | |||||||||||||||||||||||||||||||||||
Diversified | $ | 9 | $ | — | $ | — | $ | 4 | $ | — | $ | 24 | $ | 231 | $ | 268 | 1.4 | % | $ | — | $ | 268 | |||||||||||||
Industrial | 75 | 25 | 101 | 135 | 220 | 284 | 52 | 892 | 4.7 | 203 | 689 | ||||||||||||||||||||||||
Land & Residential | 1 | 3 | 3 | 3 | 3 | 24 | — | 37 | .2 | 15 | 22 | ||||||||||||||||||||||||
Lodging | 58 | — | 10 | 4 | 20 | 72 | 41 | 205 | 1.1 | 22 | 183 | ||||||||||||||||||||||||
Medical Office | 47 | — | 43 | 9 | 19 | 98 | 25 | 241 | 1.3 | 64 | 177 | ||||||||||||||||||||||||
Multifamily | 1,083 | 533 | 1,388 | 1,264 | 2,813 | 1,370 | 438 | 8,889 | 47.1 | 1,705 | 7,184 | ||||||||||||||||||||||||
Office | 189 | 1 | 173 | 113 | 128 | 300 | 95 | 999 | 5.3 | — | 999 | ||||||||||||||||||||||||
Retail | 282 | 35 | 112 | 183 | 69 | 395 | 235 | 1,311 | 6.9 | 106 | 1,205 | ||||||||||||||||||||||||
Self Storage | 85 | 13 | 50 | 20 | 79 | 37 | 202 | 486 | 2.6 | 4 | 482 | ||||||||||||||||||||||||
Senior Housing | 150 | 57 | 144 | 76 | 118 | 120 | 235 | 900 | 4.8 | 194 | 706 | ||||||||||||||||||||||||
Skilled Nursing | — | — | — | 52 | — | 239 | 143 | 434 | 2.3 | — | 434 | ||||||||||||||||||||||||
Student Housing | — | — | — | 53 | 199 | 13 | — | 265 | 1.4 | 39 | 226 | ||||||||||||||||||||||||
Other | 24 | 4 | 9 | 79 | 42 | 83 | 195 | 436 | 2.3 | 2 | 434 | ||||||||||||||||||||||||
Total nonowner-occupied | 2,003 | 671 | 2,033 | 1,995 | 3,710 | 3,059 | 1,892 | 15,363 | 81.4 | 2,354 | 13,009 | ||||||||||||||||||||||||
Owner-occupied | 1,149 | 5 | 364 | 580 | 128 | 1,293 | — | 3,519 | 18.6 | 176 | 3,343 | ||||||||||||||||||||||||
Total | $ | 3,152 | $ | 676 | $ | 2,397 | $ | 2,575 | $ | 3,838 | $ | 4,352 | $ | 1,892 | $ | 18,882 | 100.0 | % | $ | 2,530 | $ | 16,352 | |||||||||||||
Nonperforming loans | $ | — | — | — | $ | 2 | $ | — | $ | 7 | $ | 12 | $ | 21 | N/M | $ | — | $ | 21 | ||||||||||||||||
Accruing loans past due 90 days or more | — | — | — | — | — | 8 | — | 8 | N/M | — | 8 | ||||||||||||||||||||||||
Accruing loans past due 30 through 89 days | — | — | 1 | 11 | — | 6 | — | 18 | N/M | — | 18 |
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 |
Dollars in millions | Real estate — residential mortgage | Home equity loans | Consumer direct loans | Credit cards | Consumer indirect loans | Total | ||||||||||||||
March 31, 2023 | ||||||||||||||||||||
Washington | $ | 4,685 | $ | 1,068 | $ | 235 | $ | 85 | $ | 1 | $ | 6,074 | ||||||||
Ohio | 2,782 | 1,131 | 326 | 198 | 4 | 4,441 | ||||||||||||||
New York | 850 | 2,187 | 770 | 336 | 1 | 4,144 | ||||||||||||||
Colorado | 3,038 | 293 | 161 | 32 | — | 3,524 | ||||||||||||||
California | 2,365 | 14 | 529 | 3 | 6 | 2,917 | ||||||||||||||
Oregon | 1,287 | 618 | 115 | 42 | — | 2,062 | ||||||||||||||
Pennsylvania | 458 | 560 | 402 | 59 | 3 | 1,482 | ||||||||||||||
Florida | 857 | 44 | 444 | 13 | 6 | 1,364 | ||||||||||||||
Connecticut | 822 | 277 | 118 | 27 | 1 | 1,245 | ||||||||||||||
Utah | 846 | 267 | 69 | 18 | — | 1,200 | ||||||||||||||
Other | 3,642 | 1,247 | 3,190 | 156 | 17 | 8,252 | ||||||||||||||
Total | $ | 21,632 | $ | 7,706 | $ | 6,359 | $ | 969 | $ | 39 | $ | 36,705 | ||||||||
December 31, 2022 | ||||||||||||||||||||
Washington | $ | 4,621 | $ | 1,100 | $ | 253 | $ | 87 | $ | 2 | $ | 6,063 | ||||||||
Ohio | 2,766 | 1,173 | 347 | 214 | 5 | 4,505 | ||||||||||||||
New York | 840 | 2,256 | 770 | 359 | 1 | 4,226 | ||||||||||||||
Colorado | 3,006 | 301 | 171 | 32 | — | 3,510 | ||||||||||||||
California | 2,357 | 16 | 538 | 4 | 6 | 2,921 | ||||||||||||||
Oregon | 1,268 | 630 | 117 | 43 | — | 2,058 | ||||||||||||||
Pennsylvania | 459 | 580 | 403 | 61 | 3 | 1,506 | ||||||||||||||
Florida | 851 | 45 | 453 | 14 | 6 | 1,369 | ||||||||||||||
Texas | 336 | 3 | 397 | 4 | 3 | 743 | ||||||||||||||
Illinois | 134 | 3 | 212 | 2 | 1 | 352 | ||||||||||||||
Other | 4,763 | 1,844 | 2,847 | 206 | 16 | 9,676 | ||||||||||||||
Total | $ | 21,401 | $ | 7,951 | $ | 6,508 | $ | 1,026 | $ | 43 | $ | 36,929 | ||||||||
Dollars in millions | Commercial | Commercial Real Estate | Commercial Lease Financing | Residential Real Estate | Total | ||||||||||||
2023 | |||||||||||||||||
First quarter | $ | 123 | $ | 1,121 | $ | 164 | $ | 135 | $ | 1,543 | |||||||
Total | $ | 123 | $ | 1,121 | $ | 164 | $ | 135 | $ | 1,543 | |||||||
2022 | |||||||||||||||||
Fourth quarter | $ | 33 | $ | 2,774 | $ | 114 | $ | 235 | $ | 3,156 | |||||||
Third quarter | 211 | 1,882 | 43 | 353 | 2,489 | ||||||||||||
Second quarter | 41 | 1,851 | 150 | 496 | 2,538 | ||||||||||||
First quarter | 1,469 | 1,909 | 39 | 901 | 4,318 | ||||||||||||
Total | $ | 1,754 | $ | 8,416 | $ | 346 | $ | 1,985 | $ | 12,501 | |||||||
Dollars in millions | March 31, 2023 | December 31, 2022 | September 30, 2022 | June 30, 2022 | March 31, 2022 | ||||||||||||
Commercial real estate loans | $ | 493,865 | $ | 488,478 | $ | 485,342 | $ | 479,974 | $ | 469,371 | |||||||
Residential mortgage | 10,951 | 11,026 | 11,014 | 10,948 | 10,756 | ||||||||||||
Education loans | 294 | 312 | 341 | 366 | 389 | ||||||||||||
Commercial lease financing | 1,673 | 1,646 | 1,619 | 1,418 | 1,195 | ||||||||||||
Commercial loans | 712 | 723 | 727 | 724 | 740 | ||||||||||||
Consumer direct | 480 | 509 | 536 | 575 | 621 | ||||||||||||
Consumer indirect | 1,316 | 1,536 | 1,766 | 2,039 | 2,354 | ||||||||||||
Total | $ | 509,291 | $ | 504,230 | $ | 501,345 | $ | 496,044 | $ | 485,426 | |||||||
Dollars in millions | March 31, 2023 | December 31, 2022 | ||||||
FHLMC & FNMA | $ | 26,138 | $ | 25,371 | ||||
GNMA | 12,173 | 11,620 | ||||||
Total (a) | $ | 38,311 | $ | 36,991 | ||||
Dollars in millions | U.S. Treasury, Agencies, and Corporations | Agency Residential Collateralized Mortgage Obligations (a) | Agency Residential Mortgage-backed Securities (a) | Agency Commercial Mortgage-backed Securities (a) | Total | Weighted-Average Yield (b) | ||||||||||||||
March 31, 2023 | ||||||||||||||||||||
Remaining maturity: | ||||||||||||||||||||
One year or less | $ | 1,774 | $ | 59 | $ | 2 | $ | 52 | $ | 1,887 | .46 | % | ||||||||
After one through five years | 7,476 | 1,979 | 2,889 | 2,332 | 14,676 | 1.37 | ||||||||||||||
After five through ten years | 157 | 11,211 | 750 | 6,058 | 18,176 | 1.98 | ||||||||||||||
After ten years | 107 | 3,176 | 259 | 1,217 | 4,759 | 1.82 | ||||||||||||||
Fair value | $ | 9,514 | $ | 16,425 | $ | 3,900 | $ | 9,659 | $ | 39,498 | — | |||||||||
Amortized cost | $ | 10,027 | $ | 19,770 | $ | 4,534 | $ | 10,848 | $ | 45,179 | 1.68 | % | ||||||||
Weighted-average yield (b) | .59 | % | 1.66 | % | 1.59 | % | 2.76 | % | 1.68 | % | — | |||||||||
Weighted-average maturity | 1.6 years | 8.1 years | 4.9 years | 7.3 years | 6.1 years | — | ||||||||||||||
December 31, 2022 | ||||||||||||||||||||
Fair value | $ | 9,415 | $ | 16,433 | $ | 3,920 | $ | 9,349 | $ | 39,117 | — | |||||||||
Amortized cost | 10,044 | 20,180 | 4,616 | 10,712 | 45,552 | 1.67 | % |
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) | ||||||||||||||||
March 31, 2023 | |||||||||||||||||||||||
Remaining maturity: | |||||||||||||||||||||||
One year or less | $ | 10 | $ | — | $ | 5 | $ | 2 | $ | 4 | $ | 21 | 2.50 | % | |||||||||
After one through five years | 2,187 | 124 | 1,958 | 1,217 | 11 | 5,497 | 3.15 | ||||||||||||||||
After five through ten years | 2,553 | 53 | 585 | — | — | 3,191 | 3.80 | ||||||||||||||||
After ten years | 816 | — | 36 | — | — | 852 | 4.23 | ||||||||||||||||
Amortized cost | $ | 5,566 | $ | 177 | $ | 2,584 | $ | 1,219 | $ | 15 | $ | 9,561 | 3.46 | % | |||||||||
Fair value | $ | 5,349 | $ | 165 | $ | 2,402 | $ | 1,155 | $ | 14 | $ | 9,085 | — | ||||||||||
Weighted-average yield (b) | 3.86 | % | 2.87 | % | 3.30 | % | 2.10 | % | 2.78 | % | 3.46 | % | — | ||||||||||
Weighted-average maturity | 6.5 years | 5.4 years | 4.3 years | 1.3 years | 2.6 years | 5.2 years | — | ||||||||||||||||
December 31, 2022 | |||||||||||||||||||||||
Amortized cost | $ | 4,586 | $ | 181 | $ | 2,522 | $ | 1,407 | $ | 14 | $ | 8,710 | 3.18 | % | |||||||||
Fair value | 4,308 | 165 | 2,315 | 1,311 | 14 | 8,113 | — |
Dollars in billions | March 31, 2023 | December 31, 2022 | September 30, 2022 | June 30, 2022 | March 31, 2022 | ||||||||||||
Uninsured deposits(a) | $ | 63.3 | $ | 67.1 | $ | 69.7 | $ | 71.6 | $ | 73.1 | |||||||
Total deposits | 144.1 | 142.6 | 144.9 | 145.9 | 148.7 | ||||||||||||
Uninsured % of Deposits | 44 | % | 47 | % | 48 | % | 49 | % | 49 | % | |||||||
(a) Intercompany deposits and accrued interest excluded from uninsured deposits | $ | 8.3 | $ | 8.4 | $ | 8.3 | $ | 7.6 | $ | 6.6 |
2023 | 2022 | |||||||||||||||||||
In thousands | First | Fourth | Third | Second | First | |||||||||||||||
Shares outstanding at beginning of period | 933,325 | 932,938 | 932,643 | 932,398 | 928,850 | |||||||||||||||
Open market repurchases and return of shares under employee compensation plans | (4,333) | (2) | (3) | (24) | (1,707) | |||||||||||||||
Shares issued under employee compensation plans (net of cancellations) | 6,237 | 389 | 298 | 269 | 5,255 | |||||||||||||||
Shares outstanding at end of period | 935,229 | 933,325 | 932,938 | 932,643 | 932,398 | |||||||||||||||
2023 | 2022 | ||||||||||||||||||||||||||||
Three months ended March 31, | Three months ended March 31, | ||||||||||||||||||||||||||||
Dollars in millions | High | Low | Mean | March 31, | High | Low | Mean | March 31, | |||||||||||||||||||||
Trading account assets: | |||||||||||||||||||||||||||||
Fixed income | $ | 1.3 | $ | .4 | $ | .8 | $ | 1.1 | $ | 1.7 | $ | .4 | $ | 1.0 | $ | .8 | |||||||||||||
Derivatives: | |||||||||||||||||||||||||||||
Interest rate | $ | .7 | $ | .3 | $ | .4 | $ | .4 | $ | .4 | $ | .1 | $ | .2 | $ | .1 | |||||||||||||
2023 | 2022 | ||||||||||||||||||||||||||||
Three months ended March 31, | Three months ended March 31, | ||||||||||||||||||||||||||||
Dollars in millions | High | Low | Mean | March 31, | High | Low | Mean | March 31, | |||||||||||||||||||||
Trading account assets: | |||||||||||||||||||||||||||||
Fixed income | $ | 2.2 | $ | .9 | $ | 1.6 | $ | 1.6 | $ | 4.5 | $ | 1.3 | $ | 3.0 | $ | 2.1 | |||||||||||||
Derivatives: | |||||||||||||||||||||||||||||
Interest rate | $ | .8 | $ | .2 | $ | .5 | $ | .5 | $ | .8 | $ | .2 | $ | .4 | $ | .3 | |||||||||||||
Dollars in millions | Maturity through June 30, 2023 | Maturity past June 30, 2023 | ||||||
Outstanding balance of loans | $ | 703 | $ | 8,310 | ||||
Notional value of derivative contracts | 6,874 | 67,793 | ||||||
Investment securities | — | 525 | ||||||
Debt and equity instruments | — | 1,276 |
March 31, 2023 | March 31, 2022 | |||||||||||||
Basis point change assumption | -200 | +200 | -200 | +200 | ||||||||||
Assumed floor in market rates (in basis points) | — | N/A | — | N/A | ||||||||||
Rising rate beta | N/A | Mid 40s | N/A | Low 30s | ||||||||||
Tolerance level | (5.50) | % | (5.50) | % | (5.50) | % | (5.50) | % | ||||||
Interest rate risk assessment | 1.37 | % | (3.27) | % | (4.35) | % | 3.33 | % | ||||||
+200 NII at risk beta sensitivity | March 31, 2023 | |||||||||||||
Beta assumption | Mid 40s | Low 40s | Mid 30s | Low 30s | ||||||||||
Interest rate risk assessment | (3.27) | % | (2.26) | % | (1.25) | % | (0.24) | % |
March 31, 2023 | ||||||||||||||||||||||||||||||||
Weighted-Average | December 31, 2022 | |||||||||||||||||||||||||||||||
Dollars in millions | Notional Amount | Fair Value | Maturity (Years) | Receive Rate | Pay Rate | Notional Amount | Fair Value | |||||||||||||||||||||||||
Receive fixed/pay variable — conventional A/LM (a) | $ | 27,000 | $ | (1,212) | 2.1 | 1.3 | % | 4.8 | % | $ | 28,450 | $ | (1,503) | |||||||||||||||||||
Receive fixed/pay variable — conventional debt | 9,810 | (394) | 4.3 | 2.3 | 4.7 | 10,995 | (551) | |||||||||||||||||||||||||
Receive fixed/pay variable — forward A/LM | 4,000 | 16 | 3.3 | 3.5 | 4.0 | 1,300 | (8) | |||||||||||||||||||||||||
Receive fixed/pay variable — forward debt | 1,425 | (4) | 7.3 | 3.1 | 4.3 | — | — | |||||||||||||||||||||||||
Pay fixed/receive variable — conventional debt | 50 | — | 5.3 | 4.8 | 3.6 | 50 | 1 | |||||||||||||||||||||||||
Pay fixed/receive variable — forward securities | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Pay fixed/receive variable — securities | 1,405 | 53 | 2.4 | 4.7 | 2.9 | 405 | 48 | |||||||||||||||||||||||||
Total portfolio swaps | $ | 43,690 | $ | (1,541) | (b) | 2.8 | 1.7 | % | 4.2 | % | $ | 41,200 | $ | (2,013) | (b) | |||||||||||||||||
Floors — forward purchased | 3,250 | 44 | 2.9 | — | — | $ | — | $ | — | |||||||||||||||||||||||
Floors — forward sold | 3,250 | (20) | 2.9 | — | — | — | — | |||||||||||||||||||||||||
Total floors | 6,500 | 24 | — | — | — | $ | — | $ | — | |||||||||||||||||||||||
March 31, 2023 | Short-Term Borrowings | Long-Term Deposits (a) | Senior Long-Term Debt | Subordinated Long-Term Debt | Capital Securities | Preferred Stock | ||||||||||||||
KEYCORP | ||||||||||||||||||||
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- | N/A | 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 | P-1/A1 | A3 | Baa1 | N/A | N/A | ||||||||||||||
Fitch Ratings, Inc. | F1 | F1/A | A- | BBB+ | N/A | N/A | ||||||||||||||
DBRS, Inc. | R-1 (middle) | A (high) | A (high) | A | N/A | N/A |
March 31, 2023 | December 31, 2022 | ||||||||||||||||||||||
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 | $ | 605 | 43.8 | % | 50.5 | % | $ | 601 | 45.0 | % | 50.0 | % | |||||||||||
Commercial real estate: | |||||||||||||||||||||||
Commercial mortgage | 218 | 15.8 | 13.6 | 203 | 15.2 | 13.7 | |||||||||||||||||
Construction | 28 | 2.0 | 2.2 | 28 | 2.1 | 2.1 | |||||||||||||||||
Total commercial real estate loans | 246 | 17.8 | 15.8 | 231 | 17.3 | 15.8 | |||||||||||||||||
Commercial lease financing | 33 | 2.4 | 3.1 | 32 | 2.4 | 3.3 | |||||||||||||||||
Total commercial loans | 884 | 64.0 | 69.4 | 864 | 64.7 | 69.1 | |||||||||||||||||
Real estate — residential mortgage | 212 | 15.4 | 18.0 | 196 | 14.7 | 17.9 | |||||||||||||||||
Home equity loans | 96 | 7.0 | 6.4 | 98 | 7.3 | 6.6 | |||||||||||||||||
Consumer direct loans | 116 | 8.4 | 5.3 | 111 | 8.3 | 5.4 | |||||||||||||||||
Credit cards | 71 | 5.1 | 0.8 | 66 | 4.9 | 0.9 | |||||||||||||||||
Consumer indirect loans | 1 | 0.1 | 0.1 | 2 | 0.1 | 0.1 | |||||||||||||||||
Total consumer loans | 496 | 36.0 | 30.6 | 473 | 35.3 | 30.9 | |||||||||||||||||
Total ALLL — continuing operations (a) | $ | 1,380 | 100.0 | % | 100.0 | % | $ | 1,337 | 100.0 | % | 100.0 | % | |||||||||||
2023 | 2022 | |||||||||||||||||||
Dollars in millions | First | Fourth | Third | Second | First | |||||||||||||||
Commercial and industrial | $ | 27 | $ | 17 | $ | 36 | $ | 31 | $ | 19 | ||||||||||
Real estate — Commercial mortgage | 5 | 12 | 1 | 2 | 3 | |||||||||||||||
Real estate — Construction | — | — | — | (1) | — | |||||||||||||||
Commercial lease financing | (2) | (2) | (1) | (1) | 2 | |||||||||||||||
Total commercial loans | 30 | 27 | 36 | 31 | 24 | |||||||||||||||
Real estate — Residential mortgage | (1) | (3) | — | (3) | (1) | |||||||||||||||
Home equity loans | — | — | (1) | (1) | — | |||||||||||||||
Consumer direct loans | 9 | 8 | 4 | 9 | 5 | |||||||||||||||
Credit cards | 8 | 7 | 5 | 7 | 5 | |||||||||||||||
Consumer indirect loans | (1) | 2 | (1) | 1 | — | |||||||||||||||
Total consumer loans | 15 | 14 | 7 | 13 | 9 | |||||||||||||||
Total net loan charge-offs | $ | 45 | $ | 41 | $ | 43 | $ | 44 | $ | 33 | ||||||||||
Net loan charge-offs to average loans | .15 | % | .14 | % | .15 | % | .16 | % | .13 | % | ||||||||||
Net loan charge-offs from discontinued operations — education lending business | $ | 1 | $ | 2 | $ | — | $ | — | $ | 2 |
2023 | 2022 | |||||||||||||||||||
Dollars in millions | First | Fourth | Third | Second | First | |||||||||||||||
Commercial and industrial | 0.18 | % | 0.12 | % | 0.25 | % | 0.23 | % | 0.15 | % | ||||||||||
Real estate — commercial mortgage | 0.12 | 0.29 | 0.02 | 0.05 | 0.08 | |||||||||||||||
Real estate — construction | — | — | — | (0.19) | — | |||||||||||||||
Commercial lease financing | (0.21) | (0.21) | (0.10) | (0.11) | 0.21 | |||||||||||||||
Total commercial loans | 0.15 | 0.13 | 0.18 | 0.17 | 0.13 | |||||||||||||||
Real estate — residential mortgage | (0.02) | (0.06) | — | (0.07) | (0.02) | |||||||||||||||
Home equity loans | — | — | (0.05) | (0.05) | — | |||||||||||||||
Consumer direct loans | 0.57 | 0.47 | 0.23 | 0.55 | 0.34 | |||||||||||||||
Credit cards | 3.30 | 2.80 | 2.05 | 2.98 | 2.18 | |||||||||||||||
Consumer indirect loans | (9.89) | 17.25 | (7.63) | 6.80 | — | |||||||||||||||
Total consumer loans | 0.17 | 0.15 | 0.08 | 0.15 | 0.12 | |||||||||||||||
Total net loan charge-offs | 0.15 | % | 0.14 | % | 0.15 | % | 0.16 | % | 0.13 | % | ||||||||||
Three months ended March 31, | ||||||||
Dollars in millions | 2023 | 2022 | ||||||
Average loans outstanding | $ | 119,837 | $ | 103,762 | ||||
Allowance for loan and lease losses at beginning of period | 1,337 | 1,061 | ||||||
Loans charged off: | ||||||||
Commercial and industrial | 35 | 30 | ||||||
Real estate — commercial mortgage | 5 | 4 | ||||||
Real estate — construction | — | — | ||||||
Commercial lease financing | (1) | 2 | ||||||
Total commercial loans | 39 | 36 | ||||||
Real estate — residential mortgage | — | (1) | ||||||
Home equity loans | 1 | 1 | ||||||
Consumer direct loans | 11 | 7 | ||||||
Credit cards | 9 | 7 | ||||||
Consumer indirect loans | — | 1 | ||||||
Total consumer loans | 21 | 15 | ||||||
Total loans charged off | 60 | 51 | ||||||
Recoveries: | ||||||||
Commercial and industrial | 8 | 11 | ||||||
Real estate — commercial mortgage | — | 1 | ||||||
Real estate — construction | — | — | ||||||
Commercial lease financing | 1 | — | ||||||
Total commercial loans | 9 | 12 | ||||||
Real estate — residential mortgage | 1 | — | ||||||
Home equity loans | 1 | 1 | ||||||
Consumer direct loans | 2 | 2 | ||||||
Credit cards | 1 | 2 | ||||||
Consumer indirect loans | 1 | 1 | ||||||
Total consumer loans | 6 | 6 | ||||||
Total recoveries | 15 | 18 | ||||||
Net loan charge-offs | (45) | (33) | ||||||
Provision (credit) for loan and lease losses | 88 | 77 | ||||||
Allowance for loan and lease losses at end of period | $ | 1,380 | $ | 1,105 | ||||
Liability for credit losses on off-balance sheet exposures at beginning of period | 225 | 160 | ||||||
Provision (credit) for losses on off-balance sheet exposures | 51 | 6 | ||||||
Liability for credit losses on off-balance sheet exposures at end of period(a) | $ | 276 | $ | 166 | ||||
Total allowance for credit losses at end of period | $ | 1,656 | $ | 1,271 | ||||
Net loan charge-offs to average total loans | .15 | % | .13 | % | ||||
Allowance for loan and lease losses to period-end loans | 1.15 | 1.04 | ||||||
Allowance for credit losses to period-end loans | 1.38 | 1.19 | ||||||
Allowance for loan and lease losses to nonperforming loans | 331.7 | 251.7 | ||||||
Allowance for credit losses to nonperforming loans | 398.1 | 289.5 | ||||||
Discontinued operations — education lending business: | ||||||||
Loans charged off | $ | 1 | $ | 2 | ||||
Recoveries | — | — | ||||||
Net loan charge-offs | $ | (1) | $ | (2) | ||||
Dollars in millions | March 31, 2023 | December 31, 2022 | September 30, 2022 | June 30, 2022 | March 31, 2022 | ||||||||||||
Commercial and industrial | $ | 170 | $ | 174 | $ | 169 | $ | 197 | $ | 186 | |||||||
Real estate — commercial mortgage | 59 | 21 | 34 | 35 | 40 | ||||||||||||
Real estate — construction | — | — | — | — | — | ||||||||||||
Total commercial real estate loans (a) | 59 | 21 | 34 | 35 | 40 | ||||||||||||
Commercial lease financing | 1 | 1 | 2 | 2 | 3 | ||||||||||||
Total commercial loans (b) | 230 | 196 | 205 | 234 | 229 | ||||||||||||
Real estate — residential mortgage | 75 | 77 | 66 | 67 | 73 | ||||||||||||
Home equity loans | 104 | 107 | 112 | 120 | 129 | ||||||||||||
Consumer direct loans | 3 | 3 | 3 | 3 | 4 | ||||||||||||
Credit cards | 3 | 3 | 3 | 3 | 3 | ||||||||||||
Consumer indirect loans | 1 | 1 | 1 | 2 | 1 | ||||||||||||
Total consumer loans | 186 | 191 | 185 | 195 | 210 | ||||||||||||
Total nonperforming loans (c) | 416 | 387 | 390 | 429 | 439 | ||||||||||||
OREO | 13 | 13 | 12 | 9 | 8 | ||||||||||||
Nonperforming loans held for sale | 18 | 20 | 17 | 25 | 20 | ||||||||||||
Other nonperforming assets | — | — | — | — | — | ||||||||||||
Total nonperforming assets | $ | 447 | $ | 420 | $ | 419 | $ | 463 | $ | 467 | |||||||
Accruing loans past due 90 days or more | $ | 55 | $ | 60 | $ | 47 | $ | 41 | $ | 55 | |||||||
Accruing loans past due 30 through 89 days | 164 | 180 | 187 | 137 | 122 | ||||||||||||
Nonperforming assets from discontinued operations — education lending business | 3 | 3 | 3 | 3 | 4 | ||||||||||||
Nonperforming loans to period-end portfolio loans | .35 | % | .32 | % | .34 | % | .38 | % | .41 | % | |||||||
Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets | .37 | .35 | .36 | .41 | .44 |
2023 | 2022 | |||||||||||||||||||
Dollars in millions | First | Fourth | Third | Second | First | |||||||||||||||
Balance at beginning of period | $ | 387 | $ | 390 | $ | 429 | $ | 439 | $ | 454 | ||||||||||
Loans placed on nonaccrual status | 143 | 113 | 80 | 118 | 87 | |||||||||||||||
Charge-offs | (60) | (67) | (68) | (59) | (50) | |||||||||||||||
Loans sold | (2) | (4) | (3) | (8) | — | |||||||||||||||
Payments | (31) | (22) | (29) | (35) | (27) | |||||||||||||||
Transfers to OREO | (2) | (1) | (1) | (2) | (1) | |||||||||||||||
Loans returned to accrual status | (19) | (22) | (18) | (24) | (24) | |||||||||||||||
Balance at end of period | $ | 416 | $ | 387 | $ | 390 | $ | 429 | $ | 439 | ||||||||||
Three months ended | ||||||||||||||||||||
Dollars in millions | 3/31/2023 | 12/31/2022 | 9/30/2022 | 6/30/2022 | 3/31/2022 | |||||||||||||||
Tangible common equity to tangible assets at period-end | ||||||||||||||||||||
Key shareholders’ equity (GAAP) | $ | 14,322 | $ | 13,454 | $ | 13,290 | $ | 14,427 | $ | 15,308 | ||||||||||
Less: | Intangible assets (a) | 2,836 | 2,844 | 2,856 | 2,868 | 2,810 | ||||||||||||||
Preferred Stock (b) | 2,446 | 2,446 | 2,446 | 1,856 | 1,856 | |||||||||||||||
Tangible common equity (non-GAAP) | $ | 9,040 | $ | 8,164 | $ | 7,988 | $ | 9,703 | $ | 10,642 | ||||||||||
Total assets (GAAP) | $ | 197,519 | $ | 189,813 | $ | 190,051 | $ | 187,008 | $ | 181,221 | ||||||||||
Less: | Intangible assets (a) | 2,836 | 2,844 | 2,856 | 2,868 | 2,810 | ||||||||||||||
Tangible assets (non-GAAP) | $ | 194,683 | $ | 186,969 | $ | 187,195 | $ | 184,140 | $ | 178,411 | ||||||||||
Tangible common equity to tangible assets ratio (non-GAAP) | 4.6 | % | 4.4 | % | 4.3 | % | 5.3 | % | 6.0 | % | ||||||||||
Average tangible common equity | ||||||||||||||||||||
Average Key shareholders’ equity (GAAP) | $ | 13,817 | $ | 13,168 | $ | 14,614 | $ | 14,398 | $ | 16,780 | ||||||||||
Less: | Intangible assets (average) (c) | 2,841 | 2,851 | 2,863 | 2,827 | 2,814 | ||||||||||||||
Preferred Stock (average) | 2,500 | 2,500 | 2,148 | 1,900 | 1,900 | |||||||||||||||
Average tangible common equity (non-GAAP) | $ | 8,476 | $ | 7,817 | $ | 9,603 | $ | 9,671 | $ | 12,066 | ||||||||||
Return on average tangible common equity from continuing operations | ||||||||||||||||||||
Net income (loss) from continuing operations attributable to Key common shareholders (GAAP) | $ | 275 | $ | 356 | $ | 513 | $ | 504 | $ | 420 | ||||||||||
Average tangible common equity (non-GAAP) | 8,476 | 7,817 | 9,603 | 9,671 | 12,066 | |||||||||||||||
Return on average tangible common equity from continuing operations (non-GAAP) | 13.2 | % | 18.1 | % | 21.2 | % | 20.9 | % | 14.1 | % | ||||||||||
Return on average tangible common equity consolidated | ||||||||||||||||||||
Net income (loss) attributable to Key common shareholders (GAAP) | $ | 276 | $ | 356 | $ | 515 | $ | 507 | $ | 421 | ||||||||||
Average tangible common equity (non-GAAP) | 8,476 | 7,817 | 9,603 | 9,671 | 12,066 | |||||||||||||||
Return on average tangible common equity consolidated (non-GAAP) | 13.2 | % | 18.1 | % | 21.3 | % | 21.0 | % | 14.2 | % |
Three months ended | ||||||||||||||||||||
Dollars in millions | 3/31/2023 | 12/31/2022 | 9/30/2022 | 6/30/2022 | 3/31/2022 | |||||||||||||||
Cash efficiency ratio | ||||||||||||||||||||
Noninterest expense (GAAP) | $ | 1,176 | $ | 1,156 | $ | 1,106 | $ | 1,078 | $ | 1,070 | ||||||||||
Less: | Intangible asset amortization | 10 | 12 | 12 | 12 | 11 | ||||||||||||||
Adjusted noninterest expense (non-GAAP) | $ | 1,166 | $ | 1,144 | $ | 1,094 | $ | 1,066 | $ | 1,059 | ||||||||||
Net interest income (GAAP) | $ | 1,099 | $ | 1,220 | $ | 1,196 | $ | 1,097 | $ | 1,014 | ||||||||||
Plus: | Taxable-equivalent adjustment | 7 | 7 | 7 | 7 | 6 | ||||||||||||||
Noninterest income (GAAP) | 608 | 671 | 683 | 688 | 676 | |||||||||||||||
Total taxable-equivalent revenue (non-GAAP) | $ | 1,714 | $ | 1,898 | $ | 1,886 | $ | 1,792 | $ | 1,696 | ||||||||||
Cash efficiency ratio (non-GAAP) | 68.0 | % | 60.3 | % | 58.0 | % | 59.5 | % | 62.4 | % |
Standard | Required Adoption | Description | Effect on Financial Statements or Other Significant Matters | ||||||||
ASU 2022-03, Fair Value Measurement - Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions (Topic 820) | January 1, 2024 Early adoption is permitted. | The amendments clarify that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and is not considered in measuring fair value. Entities cannot, as a separate unit of account, recognize and measure a contractual sale restriction. The amendments require disclosures for equity securities subject to contractual restrictions including; the fair value of equity securities subject to contractual sale restrictions reflected in the balance sheet, the nature and remaining duration of the restriction(s) and the circumstances that could cause a lapse in the restriction(s). The guidance should be applied prospectively with any adjustments from the adoption of the amendments recognized in earnings and disclosed on the date of adoption. | The guidance is not expected to have a material impact on Key’s financial condition or results of operations. | ||||||||
ASU 2023-02, Investments—Equity Method and Joint Ventures (Topic 323) | January 1, 2024 Early adoption is permitted. | Reporting entities may elect to account for their tax equity investments, not limited to LIHTC structures, using the proportional amortization method as long as certain criteria are met. Entities must make an accounting policy election to apply the proportional amortization method on a tax-credit-program-by-tax-credit-program basis. Also, LIHTC investments not accounted for using the proportional amortization method will no longer be allowed to use the delayed equity contribution guidance. Further, accounting guidance in ASC 323-740 is now only applicable to tax equity investments accounted for using the proportional amortization method. The guidance should be applied on a modified retrospective or retrospective basis. | The guidance is not expected to have a material impact on Key’s financial condition or results of operations. |
Dollars in millions, except per share data | March 31, 2023 | December 31, 2022 | ||||||
(Unaudited) | ||||||||
ASSETS | ||||||||
Cash and due from banks | $ | 784 | $ | 887 | ||||
Short-term investments | 8,410 | 2,432 | ||||||
Trading account assets | 1,118 | 829 | ||||||
Securities available for sale | 39,498 | 39,117 | ||||||
Held-to-maturity securities (fair value: $9,085 and $8,113) | 9,561 | 8,710 | ||||||
Other investments | 1,587 | 1,308 | ||||||
Loans, net of unearned income of $353 and $368 | 119,971 | 119,394 | ||||||
Less: Allowance for loan and lease losses | (1,380) | (1,337) | ||||||
Net loans | 118,591 | 118,057 | ||||||
Loans held for sale (a) | 1,211 | 963 | ||||||
Premises and equipment | 628 | 636 | ||||||
Goodwill | 2,752 | 2,752 | ||||||
Other intangible assets | 85 | 94 | ||||||
Corporate-owned life insurance | 4,372 | 4,369 | ||||||
Accrued income and other assets | 8,512 | 9,223 | ||||||
Discontinued assets | 410 | 436 | ||||||
Total assets | $ | 197,519 | $ | 189,813 | ||||
LIABILITIES | ||||||||
Deposits in domestic offices: | ||||||||
Interest-bearing deposits | 106,841 | 101,761 | ||||||
Noninterest-bearing deposits | 37,307 | 40,834 | ||||||
Total deposits | 144,148 | 142,595 | ||||||
Federal funds purchased and securities sold under repurchase agreements | 1,374 | 4,077 | ||||||
Bank notes and other short-term borrowings | 10,061 | 5,386 | ||||||
Accrued expense and other liabilities | 4,861 | 4,994 | ||||||
Long-term debt | 22,753 | 19,307 | ||||||
Total liabilities | 183,197 | 176,359 | ||||||
EQUITY | ||||||||
Preferred stock | 2,500 | 2,500 | ||||||
Common Shares, $1 par value; authorized 2,100,000,000 shares; issued 1,256,702,081 shares | 1,257 | 1,257 | ||||||
Capital surplus | 6,207 | 6,286 | ||||||
Retained earnings | 15,700 | 15,616 | ||||||
Treasury stock, at cost (321,472,743 and 323,377,500 shares) | (5,868) | (5,910) | ||||||
Accumulated other comprehensive income (loss) | (5,474) | (6,295) | ||||||
Total equity | 14,322 | 13,454 | ||||||
Total liabilities and equity | $ | 197,519 | $ | 189,813 | ||||
Dollars in millions, except per share amounts | Three months ended March 31, | |||||||
(Unaudited) | 2023 | 2022 | ||||||
INTEREST INCOME | ||||||||
Loans | $ | 1,476 | $ | 837 | ||||
Loans held for sale | 13 | 12 | ||||||
Securities available for sale | 194 | 173 | ||||||
Held-to-maturity securities | 74 | 46 | ||||||
Trading account assets | 12 | 6 | ||||||
Short-term investments | 42 | 4 | ||||||
Other investments | 13 | 2 | ||||||
Total interest income | 1,824 | 1,080 | ||||||
INTEREST EXPENSE | ||||||||
Deposits | 350 | 14 | ||||||
Federal funds purchased and securities sold under repurchase agreements | 22 | — | ||||||
Bank notes and other short-term borrowings | 78 | 3 | ||||||
Long-term debt | 275 | 49 | ||||||
Total interest expense | 725 | 66 | ||||||
NET INTEREST INCOME | 1,099 | 1,014 | ||||||
Provision for credit losses | 139 | 83 | ||||||
Net interest income after provision for credit losses | 960 | 931 | ||||||
NONINTEREST INCOME | ||||||||
Trust and investment services income | 128 | 136 | ||||||
Investment banking and debt placement fees | 145 | 163 | ||||||
Cards and payments income | 81 | 80 | ||||||
Service charges on deposit accounts | 67 | 91 | ||||||
Corporate services income | 76 | 91 | ||||||
Commercial mortgage servicing fees | 46 | 36 | ||||||
Corporate-owned life insurance income | 29 | 31 | ||||||
Consumer mortgage income | 11 | 21 | ||||||
Operating lease income and other leasing gains | 25 | 32 | ||||||
Other income | — | (5) | ||||||
Total noninterest income | 608 | 676 | ||||||
NONINTEREST EXPENSE | ||||||||
Personnel | 701 | 630 | ||||||
Net occupancy | 70 | 73 | ||||||
Computer processing | 92 | 77 | ||||||
Business services and professional fees | 45 | 53 | ||||||
Equipment | 22 | 23 | ||||||
Operating lease expense | 20 | 28 | ||||||
Marketing | 21 | 28 | ||||||
Other expense | 205 | 158 | ||||||
Total noninterest expense | 1,176 | 1,070 | ||||||
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 392 | 537 | ||||||
Income taxes | 81 | 90 | ||||||
INCOME (LOSS) FROM CONTINUING OPERATIONS | 311 | 447 | ||||||
Income (loss) from discontinued operations | 1 | 1 | ||||||
NET INCOME (LOSS) | 312 | 448 | ||||||
Less: Net income (loss) attributable to noncontrolling interests | — | — | ||||||
NET INCOME (LOSS) ATTRIBUTABLE TO KEY | $ | 312 | $ | 448 | ||||
Income (loss) from continuing operations attributable to Key common shareholders | $ | 275 | $ | 420 | ||||
Net income (loss) attributable to Key common shareholders | 276 | 421 | ||||||
Per Common Share: | ||||||||
Income (loss) from continuing operations attributable to Key common shareholders | $ | .30 | $ | .45 | ||||
Income (loss) from discontinued operations, net of taxes | — | — | ||||||
Net income (loss) attributable to Key common shareholders (a) | .30 | .46 | ||||||
Per Common Share — assuming dilution: | ||||||||
Income (loss) from continuing operations attributable to Key common shareholders | $ | .30 | $ | .45 | ||||
Income (loss) from discontinued operations, net of taxes | — | — | ||||||
Net income (loss) attributable to Key common shareholders (a) | .30 | .45 | ||||||
Weighted-average Common Shares outstanding (000) | 926,490 | 922,941 | ||||||
Effect of Common Share options and other stock awards | 7,314 | 10,692 | ||||||
Weighted-average Common Shares and potential Common Shares outstanding (000) (b) | 933,804 | 933,634 | ||||||
Dollars in millions | Three months ended March 31, | |||||||
(Unaudited) | 2023 | 2022 | ||||||
Net income (loss) | $ | 312 | $ | 448 | ||||
Other comprehensive income (loss), net of tax: | ||||||||
Net unrealized gains (losses) on securities available for sale, net of income taxes of $(181) and $562 | 575 | (1,784) | ||||||
Net unrealized gains (losses) on derivative financial instruments, net of income taxes of $(77) and $177 | 245 | (561) | ||||||
Net pension and postretirement benefit costs, net of income taxes of $0 and $(1) | 1 | 2 | ||||||
Total other comprehensive income (loss), net of tax | 821 | (2,343) | ||||||
Comprehensive income (loss) | 1,133 | (1,895) | ||||||
Less: Comprehensive income attributable to noncontrolling interests | — | — | ||||||
Comprehensive income (loss) attributable to Key | $ | 1,133 | $ | (1,895) | ||||
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) | Total Shareholders’ Equity | ||||||||||||||||||||
BALANCE AT DECEMBER 31, 2022 | 1,996 | 933,325 | $ | 2,500 | $ | 1,257 | $ | 6,286 | $ | 15,616 | $ | (5,910) | $ | (6,295) | $ | 13,454 | |||||||||||||
Net income (loss) | 312 | 312 | |||||||||||||||||||||||||||
Other comprehensive income (loss) | 821 | 821 | |||||||||||||||||||||||||||
Deferred compensation | (6) | (6) | |||||||||||||||||||||||||||
Cash dividends declared | |||||||||||||||||||||||||||||
Common Shares ($.205 per share) | (192) | (192) | |||||||||||||||||||||||||||
Series D Preferred Stock ($12.50 per depositary share) | (7) | (7) | |||||||||||||||||||||||||||
Series E Preferred Stock ($.382813 per depositary share) | (8) | (8) | |||||||||||||||||||||||||||
Series F Preferred Stock ($.353125 per depositary share) | (6) | (6) | |||||||||||||||||||||||||||
Series G Preferred Stock ($.351563 per depositary share) | (6) | (6) | |||||||||||||||||||||||||||
Series H Preferred Stock ($.387500 per depositary share) | (9) | (9) | |||||||||||||||||||||||||||
Open market Common Share repurchases | (2,550) | (38) | (38) | ||||||||||||||||||||||||||
Employee equity compensation program Common Share repurchases | (1,783) | — | (34) | (34) | |||||||||||||||||||||||||
Common shares reissued (returned) for stock options and other employee benefit plans | 6,237 | (73) | 114 | 41 | |||||||||||||||||||||||||
BALANCE AT MARCH 31, 2023 | 1,996 | 935,229 | $ | 2,500 | $ | 1,257 | $ | 6,207 | $ | 15,700 | $ | (5,868) | $ | (5,474) | $ | 14,322 | |||||||||||||
Dollars in millions | Three months ended March 31, | |||||||
(Unaudited) | 2023 | 2022 | ||||||
OPERATING ACTIVITIES | ||||||||
Net income (loss) | $ | 312 | $ | 448 | ||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||||||
Provision for credit losses | 139 | 83 | ||||||
Depreciation and amortization expense, net | 36 | 40 | ||||||
Accretion of acquired loans | 5 | 5 | ||||||
Increase in cash surrender value of corporate-owned life insurance | (26) | (27) | ||||||
Stock-based compensation expense | 34 | 29 | ||||||
Deferred income taxes (benefit) | 75 | 124 | ||||||
Proceeds from sales of loans held for sale | 1,534 | 4,317 | ||||||
Originations of loans held for sale, net of repayments | (1,779) | (2,711) | ||||||
Net losses (gains) on sales of loans held for sale | (15) | (48) | ||||||
Net losses (gains) on leased equipment | (1) | (1) | ||||||
Net securities losses (gains) | — | — | ||||||
Net losses (gains) on sales of fixed assets | 12 | (6) | ||||||
Net decrease (increase) in trading account assets | (289) | (147) | ||||||
Net transfers of loans held for sale | — | — | ||||||
Other operating activities, net | 681 | (1,225) | ||||||
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | 718 | 881 | ||||||
INVESTING ACTIVITIES | ||||||||
Net decrease (increase) in short-term investments, excluding acquisitions | (5,978) | 7,129 | ||||||
Purchases of securities available for sale | (200) | (2,515) | ||||||
Proceeds from sales of securities available for sale | — | — | ||||||
Proceeds from prepayments and maturities of securities available for sale | 563 | 1,534 | ||||||
Proceeds from prepayments and maturities of held-to-maturity securities | 333 | 673 | ||||||
Purchases of held-to-maturity securities | (1,179) | (4) | ||||||
Purchases of other investments | (493) | (111) | ||||||
Proceeds from sales of other investments | 204 | 5 | ||||||
Proceeds from prepayments and maturities of other investments | 3 | 4 | ||||||
Net decrease (increase) in loans, excluding acquisitions, sales and transfers | (613) | (4,793) | ||||||
Proceeds from sales of portfolio loans | 25 | 49 | ||||||
Proceeds from corporate-owned life insurance | 22 | 14 | ||||||
Purchases of premises, equipment, and software | (24) | (18) | ||||||
Proceeds from sales of premises and equipment | 1 | 7 | ||||||
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES | (7,336) | 1,974 | ||||||
FINANCING ACTIVITIES | ||||||||
Net increase (decrease) in deposits | 1,553 | (3,909) | ||||||
Net increase (decrease) in short-term borrowings | 1,972 | 2,060 | ||||||
Net proceeds from issuance of long-term debt | 4,490 | 4,001 | ||||||
Payments on long-term debt | (1,201) | (4,989) | ||||||
Issuance of preferred shares | — | — | ||||||
Open market common share repurchases | (38) | — | ||||||
Employee equity compensation program Common Share repurchases | (34) | (44) | ||||||
Net proceeds from reissuance of Common Shares | 1 | 5 | ||||||
Cash dividends paid | (228) | (208) | ||||||
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | 6,515 | (3,084) | ||||||
NET INCREASE (DECREASE) IN CASH AND DUE FROM BANKS | (103) | (229) | ||||||
CASH AND DUE FROM BANKS AT BEGINNING OF PERIOD | 887 | 913 | ||||||
CASH AND DUE FROM BANKS AT END OF PERIOD | $ | 784 | $ | 684 | ||||
Additional disclosures relative to cash flows: | ||||||||
Interest paid | $ | 426 | $ | 58 | ||||
Income taxes paid (refunded) | 46 | 19 | ||||||
Noncash items: | ||||||||
Reduction of secured borrowing and related collateral | $ | 2 | $ | 2 | ||||
Loans transferred to portfolio from held for sale | 17 | — | ||||||
Loans transferred to held for sale from portfolio | 4 | — | ||||||
Loans transferred to OREO | 3 | 1 | ||||||
CMBS risk retentions | 52 | — | ||||||
ABS risk retentions | 8 | 10 | ||||||
Standard | Date of Adoption | Description | Effect on Financial Statements or Other Significant Matters | ||||||||
ASU 2021-08, Business Combinations (Topic 805) | January 1, 2023 Early adoption is permitted. | At the acquisition date, an acquirer must account for any acquired revenue contracts in accordance with Topic 606 as if it had originated the contracts (i.e. measure contract assets and liabilities, generally consistent with acquiree's financial statements). The guidance should be applied on a prospective basis. | The adoption of this guidance did not have a material impact on Key’s financial condition or results of operations. | ||||||||
ASU 2022-01, Derivatives and Hedging (Topic 815) | January 1, 2023 Early adoption is permitted. | This guidance allows entities to apply the same portfolio hedging method to both prepayable and nonprepayable financial assets. It also allows multiple hedged layers to be designated for a single closed portfolio of financial assets or one or more beneficial interests secured by a portfolio of financial instruments. If a breach is anticipated, an entity is required to partially or fully dedesignate a hedged layer or layers until a breach is no longer anticipated. There are additional requirements and enhanced disclosures related to basis adjustments. The guidance should be applied on a prospective, retrospective or modified retrospective basis depending on the amendment. | The adoption of this guidance did not have a material impact on Key’s financial condition or results of operations. | ||||||||
ASU 2022-02, Financial Instruments —Credit Losses (Topic 326) | January 1, 2023 Early adoption is permitted | The amendments eliminate TDR guidance and instead require entities to apply the loan refinancing and restructuring guidance to determine whether a modification results in a new loan or is a continuation of an existing loan. Entities must disclose current-period gross write-offs on an amortized cost basis by credit quality indicator and class of financing receivable by year of origination. The guidance should be applied on a prospective basis except for amendments related to recognition and measurement of TDRs, where a modified retrospective transition method is optional. | As part of the adoption of this guidance, Key elected to discontinue use of a discounted cash flow (DCF) methodology and apply its portfolio-based allowance approach to non-collateral dependent modified loans. The adoption did not result in a material impact on Key’s financial condition or results of operations. Additionally, disclosures for gross charges-offs and loan modifications made to borrowers experiencing financial difficulty have been included in Note 4 (Asset Quality). |
Three months ended March 31, | ||||||||
Dollars in millions, except per share amounts | 2023 | 2022 | ||||||
EARNINGS | ||||||||
Income (loss) from continuing operations | $ | 311 | $ | 447 | ||||
Less: Net income (loss) attributable to noncontrolling interests | — | — | ||||||
Income (loss) from continuing operations attributable to Key | 311 | 447 | ||||||
Less: Dividends on Preferred Stock | 36 | 27 | ||||||
Income (loss) from continuing operations attributable to Key common shareholders | 275 | 420 | ||||||
Income (loss) from discontinued operations, net of taxes | 1 | 1 | ||||||
Net income (loss) attributable to Key common shareholders | $ | 276 | $ | 421 | ||||
WEIGHTED-AVERAGE COMMON SHARES | ||||||||
Weighted-average Common Shares outstanding (000) | 926,490 | 922,941 | ||||||
Effect of Common Share options and other stock awards | 7,314 | 10,692 | ||||||
Weighted-average Common Shares and potential Common Shares outstanding (000) (a) | 933,804 | 933,634 | ||||||
EARNINGS PER COMMON SHARE | ||||||||
Income (loss) from continuing operations attributable to Key common shareholders | $ | .30 | $ | .45 | ||||
Income (loss) from discontinued operations, net of taxes | — | — | ||||||
Net income (loss) attributable to Key common shareholders (b) | .30 | .46 | ||||||
Income (loss) from continuing operations attributable to Key common shareholders — assuming dilution | $ | .30 | $ | .45 | ||||
Income (loss) from discontinued operations, net of taxes — assuming dilution | — | — | ||||||
Net income (loss) attributable to Key common shareholders — assuming dilution (b) | .30 | .45 |
Dollars in millions | March 31, 2023 | December 31, 2022 | ||||||
Commercial and industrial (b) | $ | 60,565 | $ | 59,647 | ||||
Commercial real estate: | ||||||||
Commercial mortgage | 16,348 | 16,352 | ||||||
Construction | 2,590 | 2,530 | ||||||
Total commercial real estate loans | 18,938 | 18,882 | ||||||
Commercial lease financing (c) | 3,763 | 3,936 | ||||||
Total commercial loans | 83,266 | 82,465 | ||||||
Residential — prime loans: | ||||||||
Real estate — residential mortgage | 21,632 | 21,401 | ||||||
Home equity loans | 7,706 | 7,951 | ||||||
Total residential — prime loans | 29,338 | 29,352 | ||||||
Consumer direct loans | 6,359 | 6,508 | ||||||
Credit cards | 969 | 1,026 | ||||||
Consumer indirect loans | 39 | 43 | ||||||
Total consumer loans | 36,705 | 36,929 | ||||||
Total loans (d) | $ | 119,971 | $ | 119,394 | ||||
Dollars in millions | December 31, 2022 | Provision | Charge-offs | Recoveries | March 31, 2023 | |||||||||||||||
Commercial and Industrial | $ | 601 | $ | 31 | $ | (35) | $ | 8 | $ | 605 | ||||||||||
Commercial real estate: | ||||||||||||||||||||
Real estate — commercial mortgage | 203 | 20 | (5) | — | 218 | |||||||||||||||
Real estate — construction | 28 | — | — | — | 28 | |||||||||||||||
Total commercial real estate loans | 231 | 20 | (5) | — | 246 | |||||||||||||||
Commercial lease financing | 32 | (1) | 1 | 1 | 33 | |||||||||||||||
Total commercial loans | 864 | 50 | (39) | 9 | 884 | |||||||||||||||
Real estate — residential mortgage | 196 | 15 | — | 1 | 212 | |||||||||||||||
Home equity loans | 98 | (2) | (1) | 1 | 96 | |||||||||||||||
Consumer direct loans | 111 | 14 | (11) | 2 | 116 | |||||||||||||||
Credit cards | 66 | 13 | (9) | 1 | 71 | |||||||||||||||
Consumer indirect loans | 2 | (2) | — | 1 | 1 | |||||||||||||||
Total consumer loans | 473 | 38 | (21) | 6 | 496 | |||||||||||||||
Total ALLL — continuing operations | 1,337 | 88 | (a) | (60) | 15 | 1,380 | ||||||||||||||
Discontinued operations | 21 | (1) | (1) | — | 19 | |||||||||||||||
Total ALLL — including discontinued operations | $ | 1,358 | $ | 87 | $ | (61) | $ | 15 | $ | 1,399 | ||||||||||
Dollars in millions | December 31, 2021 | Provision | Charge-offs | Recoveries | March 31, 2022 | |||||||||||||||
Commercial and Industrial | $ | 445 | $ | 63 | $ | (30) | $ | 11 | $ | 489 | ||||||||||
Commercial real estate: | ||||||||||||||||||||
Real estate — commercial mortgage | 182 | (7) | (4) | 1 | 172 | |||||||||||||||
Real estate — construction | 29 | (4) | — | — | 25 | |||||||||||||||
Total commercial real estate loans | 211 | (11) | (4) | 1 | 197 | |||||||||||||||
Commercial lease financing | 32 | 1 | (2) | — | 31 | |||||||||||||||
Total commercial loans | 688 | 53 | (36) | 12 | 717 | |||||||||||||||
Real estate — residential mortgage | 95 | 12 | 1 | — | 108 | |||||||||||||||
Home equity loans | 110 | (6) | (1) | 1 | 104 | |||||||||||||||
Consumer direct loans | 105 | 11 | (7) | 2 | 111 | |||||||||||||||
Credit cards | 61 | 7 | (7) | 2 | 63 | |||||||||||||||
Consumer indirect loans | 2 | — | (1) | 1 | 2 | |||||||||||||||
Total consumer loans | 373 | 24 | (15) | 6 | 388 | |||||||||||||||
Total ALLL — continuing operations | 1,061 | 77 | (a) | (51) | 18 | 1,105 | ||||||||||||||
Discontinued operations | 28 | 1 | (2) | — | 27 | |||||||||||||||
Total ALLL — including discontinued operations | $ | 1,089 | $ | 78 | $ | (53) | $ | 18 | $ | 1,132 | ||||||||||
As of March 31, 2023 | 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 | |||||||||||||||||||||||||||||
Dollars in millions | 2023 | 2022 | 2021 | 2020 | 2019 | Prior | Total | ||||||||||||||||||||||
Commercial and Industrial | |||||||||||||||||||||||||||||
Risk Rating: | |||||||||||||||||||||||||||||
Pass | $ | 1,605 | $ | 11,348 | $ | 7,729 | $ | 3,365 | $ | 2,544 | $ | 4,593 | $ | 26,824 | $ | 165 | $ | 58,173 | |||||||||||
Criticized (Accruing) | 24 | 106 | 416 | 143 | 152 | 407 | 951 | 23 | 2,222 | ||||||||||||||||||||
Criticized (Nonaccruing) | 4 | 34 | 3 | 6 | 3 | 33 | 87 | — | 170 | ||||||||||||||||||||
Total commercial and industrial | 1,633 | 11,488 | 8,148 | 3,514 | 2,699 | 5,033 | 27,862 | 188 | 60,565 | ||||||||||||||||||||
Current period gross write-offs | 1 | 1 | 4 | 1 | — | 11 | 17 | — | 35 | ||||||||||||||||||||
Real estate — commercial mortgage | |||||||||||||||||||||||||||||
Risk Rating: | |||||||||||||||||||||||||||||
Pass | 445 | 4,602 | 3,663 | 959 | 1,776 | 3,218 | 1,087 | 88 | 15,838 | ||||||||||||||||||||
Criticized (Accruing) | — | 16 | 63 | 45 | 85 | 209 | 33 | — | 451 | ||||||||||||||||||||
Criticized (Nonaccruing) | — | — | — | 1 | 1 | 26 | 31 | — | 59 | ||||||||||||||||||||
Total real estate — commercial mortgage | 445 | 4,618 | 3,726 | 1,005 | 1,862 | 3,453 | 1,151 | 88 | 16,348 | ||||||||||||||||||||
Current period gross write-offs | — | — | — | — | — | 3 | 2 | — | 5 | ||||||||||||||||||||
Real estate — construction | |||||||||||||||||||||||||||||
Risk Rating: | |||||||||||||||||||||||||||||
Pass | 13 | 774 | 947 | 376 | 231 | 114 | 11 | 6 | 2,472 | ||||||||||||||||||||
Criticized (Accruing) | — | 5 | — | 17 | 43 | 51 | — | 2 | 118 | ||||||||||||||||||||
Criticized (Nonaccruing) | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Total real estate — construction | 13 | 779 | 947 | 393 | 274 | 165 | 11 | 8 | 2,590 | ||||||||||||||||||||
Current period gross write-offs | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Commercial lease financing | |||||||||||||||||||||||||||||
Risk Rating: | |||||||||||||||||||||||||||||
Pass | 131 | 982 | 690 | 470 | 427 | 1,000 | — | — | 3,700 | ||||||||||||||||||||
Criticized (Accruing) | — | 23 | 5 | 10 | 10 | 14 | — | — | 62 | ||||||||||||||||||||
Criticized (Nonaccruing) | — | — | — | — | — | 1 | — | — | 1 | ||||||||||||||||||||
Total commercial lease financing | 131 | 1,005 | 695 | 480 | 437 | 1,015 | — | 3,763 | |||||||||||||||||||||
Current period gross write-offs | — | — | — | — | — | (1) | — | — | (1) | ||||||||||||||||||||
Total commercial loans | $ | 2,222 | $ | 17,890 | $ | 13,516 | $ | 5,392 | $ | 5,272 | $ | 9,666 | $ | 29,024 | $ | 284 | $ | 83,266 | |||||||||||
Total commercial loan current period gross write-offs | $ | 1 | $ | 1 | $ | 4 | $ | 1 | $ | — | $ | 13 | $ | 19 | $ | — | $ | 39 | |||||||||||
As of December 31, 2022 | 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 | |||||||||||||||||||||||||||||
Dollars in millions | 2022 | 2021 | 2020 | 2019 | 2018 | Prior | Total | ||||||||||||||||||||||
Commercial and Industrial | |||||||||||||||||||||||||||||
Risk Rating: | |||||||||||||||||||||||||||||
Pass | $ | 11,580 | $ | 8,636 | $ | 3,540 | $ | 2,839 | $ | 1,787 | $ | 3,307 | $ | 25,565 | $ | 138 | $ | 57,392 | |||||||||||
Criticized (Accruing) | 40 | 357 | 131 | 160 | 227 | 205 | 936 | 25 | 2,081 | ||||||||||||||||||||
Criticized (Nonaccruing) | 34 | 2 | 5 | 4 | 22 | 20 | 87 | — | 174 | ||||||||||||||||||||
Total commercial and industrial | 11,654 | 8,995 | 3,676 | 3,003 | 2,036 | 3,532 | 26,588 | 163 | 59,647 | ||||||||||||||||||||
Real estate — commercial mortgage | |||||||||||||||||||||||||||||
Risk Rating: | |||||||||||||||||||||||||||||
Pass | 4,786 | 3,817 | 992 | 1,853 | 788 | 2,578 | 1,068 | 67 | 15,949 | ||||||||||||||||||||
Criticized (Accruing) | 6 | 13 | 20 | 48 | 73 | 175 | 47 | — | 382 | ||||||||||||||||||||
Criticized (Nonaccruing) | — | — | 1 | 1 | 1 | 15 | 3 | — | 21 | ||||||||||||||||||||
Total real estate — commercial mortgage | 4,792 | 3,830 | 1,013 | 1,902 | 862 | 2,768 | 1,118 | 67 | 16,352 | ||||||||||||||||||||
Real estate — construction | |||||||||||||||||||||||||||||
Risk Rating: | |||||||||||||||||||||||||||||
Pass | 698 | 895 | 445 | 262 | 107 | 48 | 1 | — | 2,456 | ||||||||||||||||||||
Criticized (Accruing) | 5 | 1 | 5 | 32 | 25 | 4 | — | 2 | 74 | ||||||||||||||||||||
Criticized (Nonaccruing) | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Total real estate — construction | 703 | 896 | 450 | 294 | 132 | 52 | 1 | 2 | 2,530 | ||||||||||||||||||||
Commercial lease financing | |||||||||||||||||||||||||||||
Risk Rating: | |||||||||||||||||||||||||||||
Pass | 1,039 | 743 | 509 | 467 | 174 | 947 | — | — | 3,879 | ||||||||||||||||||||
Criticized (Accruing) | 15 | 1 | 9 | 12 | 9 | 10 | — | — | 56 | ||||||||||||||||||||
Criticized (Nonaccruing) | — | — | — | — | — | 1 | — | — | 1 | ||||||||||||||||||||
Total commercial lease financing | 1,054 | 744 | 518 | 479 | 183 | 958 | — | — | 3,936 | ||||||||||||||||||||
Total commercial loans | $ | 18,203 | $ | 14,465 | $ | 5,657 | $ | 5,678 | $ | 3,213 | $ | 7,310 | $ | 27,707 | $ | 232 | $ | 82,465 | |||||||||||
As of March 31, 2023 | 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 | |||||||||||||||||||||||||||||
Dollars in millions | 2023 | 2022 | 2021 | 2020 | 2019 | Prior | Total | ||||||||||||||||||||||
Real estate — residential mortgage | |||||||||||||||||||||||||||||
FICO Score: | |||||||||||||||||||||||||||||
750 and above | $ | 332 | $ | 5,412 | $ | 8,654 | $ | 2,546 | $ | 614 | $ | 1,015 | $ | — | $ | — | $ | 18,573 | |||||||||||
660 to 749 | 114 | 1,031 | 895 | 277 | 110 | 272 | — | — | 2,699 | ||||||||||||||||||||
Less than 660 | 5 | 51 | 37 | 17 | 18 | 143 | — | — | 271 | ||||||||||||||||||||
No Score | — | 63 | 1 | 1 | — | 23 | 1 | — | 89 | ||||||||||||||||||||
Total real estate — residential mortgage | 451 | 6,557 | 9,587 | 2,841 | 742 | 1,453 | 1 | — | 21,632 | ||||||||||||||||||||
Current period gross write-offs | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Home equity loans | |||||||||||||||||||||||||||||
FICO Score: | |||||||||||||||||||||||||||||
750 and above | — | 128 | 1,251 | 628 | 172 | 578 | 2,150 | 387 | 5,294 | ||||||||||||||||||||
660 to 749 | 5 | 76 | 276 | 186 | 77 | 206 | 948 | 127 | 1,901 | ||||||||||||||||||||
Less than 660 | — | 11 | 30 | 27 | 17 | 90 | 294 | 34 | 503 | ||||||||||||||||||||
No Score | 1 | — | — | — | — | 2 | 5 | — | 8 | ||||||||||||||||||||
Total home equity loans | 6 | 215 | 1,557 | 841 | 266 | 876 | 3,397 | 548 | 7,706 | ||||||||||||||||||||
Current period gross write-offs | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Consumer direct loans | |||||||||||||||||||||||||||||
FICO Score: | |||||||||||||||||||||||||||||
750 and above | 81 | 1,296 | 1,600 | 780 | 332 | 133 | 96 | — | 4,318 | ||||||||||||||||||||
660 to 749 | 71 | 449 | 391 | 201 | 106 | 60 | 196 | — | 1,474 | ||||||||||||||||||||
Less than 660 | 6 | 64 | 60 | 31 | 20 | 14 | 57 | — | 252 | ||||||||||||||||||||
No Score | 21 | 50 | 27 | 17 | 11 | 26 | 163 | — | 315 | ||||||||||||||||||||
Total consumer direct loans | 179 | 1,859 | 2,078 | 1,029 | 469 | 233 | 512 | — | 6,359 | ||||||||||||||||||||
Current period gross write-offs | — | 2 | 2 | 2 | 2 | 1 | 3 | — | 12 | ||||||||||||||||||||
Credit cards | |||||||||||||||||||||||||||||
FICO Score: | |||||||||||||||||||||||||||||
750 and above | — | — | — | — | — | — | 478 | — | 478 | ||||||||||||||||||||
660 to 749 | — | — | — | — | — | — | 395 | — | 395 | ||||||||||||||||||||
Less than 660 | — | — | — | — | — | — | 95 | — | 95 | ||||||||||||||||||||
No Score | — | — | — | — | — | — | 1 | — | 1 | ||||||||||||||||||||
Total credit cards | — | — | — | — | — | — | 969 | — | 969 | ||||||||||||||||||||
Current period gross write-offs | — | — | — | — | — | — | 9 | — | 9 | ||||||||||||||||||||
Consumer indirect loans | |||||||||||||||||||||||||||||
FICO Score: | |||||||||||||||||||||||||||||
750 and above | — | — | 1 | — | — | 19 | — | — | 20 | ||||||||||||||||||||
660 to 749 | — | — | — | — | — | 14 | — | — | 14 | ||||||||||||||||||||
Less than 660 | — | — | — | — | — | 5 | — | — | 5 | ||||||||||||||||||||
No Score | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Total consumer indirect loans | — | — | 1 | — | — | 38 | — | — | 39 | ||||||||||||||||||||
Current period gross write-offs | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Total consumer loans | $ | 636 | $ | 8,631 | $ | 13,223 | $ | 4,711 | $ | 1,477 | $ | 2,600 | $ | 4,879 | $ | 548 | $ | 36,705 | |||||||||||
Total consumer loan current period gross write-offs | $ | — | $ | 2 | $ | 2 | $ | 2 | $ | 2 | $ | 1 | $ | 12 | $ | — | $ | 21 | |||||||||||
As of December 31, 2022 | 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 | |||||||||||||||||||||||||||||
Dollars in millions | 2022 | 2021 | 2020 | 2019 | 2018 | Prior | Total | ||||||||||||||||||||||
Real estate — residential mortgage | |||||||||||||||||||||||||||||
FICO Score: | |||||||||||||||||||||||||||||
750 and above | $ | 5,205 | $ | 8,702 | $ | 2,584 | $ | 636 | $ | 64 | $ | 978 | $ | — | $ | — | $ | 18,169 | |||||||||||
660 to 749 | 1,286 | 919 | 282 | 106 | 28 | 260 | — | — | 2,881 | ||||||||||||||||||||
Less than 660 | 41 | 42 | 17 | 14 | 15 | 130 | — | — | 259 | ||||||||||||||||||||
No Score | 62 | 1 | 1 | 1 | 1 | 25 | 1 | — | 92 | ||||||||||||||||||||
Total real estate — residential mortgage | 6,594 | 9,664 | 2,884 | 757 | 108 | 1,393 | 1 | — | 21,401 | ||||||||||||||||||||
Home equity loans | |||||||||||||||||||||||||||||
FICO Score: | |||||||||||||||||||||||||||||
750 and above | 146 | 1,044 | 736 | 207 | 74 | 617 | 2,238 | 398 | 5,460 | ||||||||||||||||||||
660 to 749 | 83 | 291 | 194 | 79 | 32 | 187 | 974 | 126 | 1,966 | ||||||||||||||||||||
Less than 660 | 11 | 31 | 25 | 17 | 10 | 81 | 300 | 37 | 512 | ||||||||||||||||||||
No Score | 7 | — | — | — | — | 2 | 4 | — | 13 | ||||||||||||||||||||
Total home equity loans | 247 | 1,366 | 955 | 303 | 116 | 887 | 3,516 | 561 | 7,951 | ||||||||||||||||||||
Consumer direct loans | |||||||||||||||||||||||||||||
FICO Score: | |||||||||||||||||||||||||||||
750 and above | 1,291 | 1,632 | 811 | 351 | 45 | 97 | 102 | — | 4,329 | ||||||||||||||||||||
660 to 749 | 526 | 434 | 229 | 120 | 26 | 41 | 206 | — | 1,582 | ||||||||||||||||||||
Less than 660 | 58 | 63 | 32 | 23 | 7 | 9 | 57 | — | 249 | ||||||||||||||||||||
No Score | 59 | 32 | 22 | 11 | 9 | 22 | 193 | — | 348 | ||||||||||||||||||||
Total consumer direct loans | 1,934 | 2,161 | 1,094 | 505 | 87 | 169 | 558 | — | 6,508 | ||||||||||||||||||||
Credit cards | |||||||||||||||||||||||||||||
FICO Score: | |||||||||||||||||||||||||||||
750 and above | — | — | — | — | — | — | 524 | — | 524 | ||||||||||||||||||||
660 to 749 | — | — | — | — | — | — | 402 | — | 402 | ||||||||||||||||||||
Less than 660 | — | — | — | — | — | — | 99 | — | 99 | ||||||||||||||||||||
No Score | — | — | — | — | — | — | 1 | — | 1 | ||||||||||||||||||||
Total credit cards | — | — | — | — | — | — | 1,026 | — | 1,026 | ||||||||||||||||||||
Consumer indirect loans | |||||||||||||||||||||||||||||
FICO Score: | |||||||||||||||||||||||||||||
750 and above | — | 2 | — | — | — | 19 | — | — | 21 | ||||||||||||||||||||
660 to 749 | — | — | — | — | — | 15 | — | — | 15 | ||||||||||||||||||||
Less than 660 | — | — | — | — | — | 7 | — | — | 7 | ||||||||||||||||||||
No Score | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Total consumer indirect loans | — | 2 | — | — | — | 41 | — | — | 43 | ||||||||||||||||||||
Total consumer loans | $ | 8,775 | $ | 13,193 | $ | 4,933 | $ | 1,565 | $ | 311 | $ | 2,490 | $ | 5,101 | $ | 561 | $ | 36,929 | |||||||||||
As of March 31, 2023 | Current (b) | 30-59 Days Past Due (b) | 60-89 Days Past Due (b) | 90 and Greater Days Past Due (b) | Non-performing Loans | Total Past Due and Non-performing Loans (b) | Total Loans (c) | ||||||||||||||||
Dollars in millions | |||||||||||||||||||||||
LOAN TYPE | |||||||||||||||||||||||
Commercial and industrial | $ | 60,299 | $ | 29 | $ | 44 | $ | 23 | $ | 170 | $ | 266 | $ | 60,565 | |||||||||
Commercial real estate: | |||||||||||||||||||||||
Commercial mortgage | 16,265 | 13 | 4 | 7 | 59 | 83 | 16,348 | ||||||||||||||||
Construction | 2,590 | — | — | — | — | — | 2,590 | ||||||||||||||||
Total commercial real estate loans | 18,855 | 13 | 4 | 7 | 59 | 83 | 18,938 | ||||||||||||||||
Commercial lease financing | 3,755 | 1 | 4 | 2 | 1 | 8 | 3,763 | ||||||||||||||||
Total commercial loans | $ | 82,909 | $ | 43 | $ | 52 | $ | 32 | $ | 230 | $ | 357 | $ | 83,266 | |||||||||
Real estate — residential mortgage | $ | 21,548 | $ | 5 | $ | 2 | $ | 2 | $ | 75 | $ | 84 | $ | 21,632 | |||||||||
Home equity loans | 7,565 | 24 | 7 | 6 | 104 | 141 | 7,706 | ||||||||||||||||
Consumer direct loans | 6,329 | 13 | 7 | 7 | 3 | 30 | 6,359 | ||||||||||||||||
Credit cards | 948 | 6 | 4 | 8 | 3 | 21 | 969 | ||||||||||||||||
Consumer indirect loans | 37 | 1 | — | — | 1 | 2 | 39 | ||||||||||||||||
Total consumer loans | $ | 36,427 | $ | 49 | $ | 20 | $ | 23 | $ | 186 | $ | 278 | $ | 36,705 | |||||||||
Total loans | $ | 119,336 | $ | 92 | $ | 72 | $ | 55 | $ | 416 | $ | 635 | $ | 119,971 | |||||||||
As of December 31, 2022 | Current (b) | 30-59 Days Past Due (b) | 60-89 Days Past Due (b) | 90 and Greater Days Past Due (b) | Non-performing Loans | Total Past Due and Non-performing Loans (b) | Total Loans (c) | ||||||||||||||||
Dollars in millions | |||||||||||||||||||||||
LOAN TYPE | |||||||||||||||||||||||
Commercial and industrial | $ | 59,366 | $ | 43 | $ | 33 | $ | 31 | $ | 174 | $ | 281 | $ | 59,647 | |||||||||
Commercial real estate: | |||||||||||||||||||||||
Commercial mortgage | 16,305 | 16 | 2 | 8 | 21 | 47 | 16,352 | ||||||||||||||||
Construction | 2,530 | — | — | — | — | — | 2,530 | ||||||||||||||||
Total commercial real estate loans | 18,835 | 16 | 2 | 8 | 21 | 47 | 18,882 | ||||||||||||||||
Commercial lease financing | 3,928 | 3 | 1 | 3 | 1 | 8 | 3,936 | ||||||||||||||||
Total commercial loans | $ | 82,129 | $ | 62 | $ | 36 | $ | 42 | $ | 196 | $ | 336 | $ | 82,465 | |||||||||
Real estate — residential mortgage | $ | 21,307 | $ | 13 | $ | 3 | $ | 1 | $ | 77 | $ | 94 | $ | 21,401 | |||||||||
Home equity loans | 7,804 | 27 | 8 | 5 | 107 | 147 | 7,951 | ||||||||||||||||
Consumer direct loans | 6,478 | 15 | 7 | 5 | 3 | 30 | 6,508 | ||||||||||||||||
Credit cards | 1,007 | 5 | 4 | 7 | 3 | 19 | 1,026 | ||||||||||||||||
Consumer indirect loans | 42 | — | — | — | 1 | 1 | 43 | ||||||||||||||||
Total consumer loans | $ | 36,638 | $ | 60 | $ | 22 | $ | 18 | $ | 191 | $ | 291 | $ | 36,929 | |||||||||
Total loans | $ | 118,767 | $ | 122 | $ | 58 | $ | 60 | $ | 387 | $ | 627 | $ | 119,394 | |||||||||
As of March 31, 2023 | Interest Rate Reduction | Term Extension | Other | Combination | Total | |||||||||||||||
Dollars in millions | Amortized Cost Basis | Amortized Cost Basis | Amortized Cost Basis | Amortized Cost Basis | Amortized Cost Basis | % of Total Loan Type | ||||||||||||||
LOAN TYPE | ||||||||||||||||||||
Commercial and Industrial | $ | — | $ | 79 | $ | 1 | $ | 4 | $ | 84 | 0.14 | % | ||||||||
Commercial real estate: | ||||||||||||||||||||
Commercial mortgage | — | 4 | — | — | 4 | 0.02 | ||||||||||||||
Construction | — | — | — | — | — | — | ||||||||||||||
Total commercial real estate loans | — | 4 | — | — | 4 | 0.02 | ||||||||||||||
Commercial lease financing | — | — | — | — | — | — | ||||||||||||||
Total commercial loans | $ | — | $ | 83 | $ | 1 | $ | 4 | $ | 88 | 0.11 | % | ||||||||
Real estate — residential mortgage | — | — | — | 1 | 1 | — | ||||||||||||||
Home equity loans | — | — | — | 2 | 2 | 0.03 | ||||||||||||||
Consumer direct loans | — | — | — | 1 | 1 | 0.02 | ||||||||||||||
Credit cards | — | — | — | 1 | 1 | 0.10 | ||||||||||||||
Consumer indirect loans | — | — | — | — | — | — | ||||||||||||||
Total consumer loans | — | — | — | 5 | 5 | 0.01 | ||||||||||||||
Total loans | $ | — | $ | 83 | $ | 1 | $ | 9 | $ | 93 | 0.08 | % | ||||||||
Three months ended March 31, 2023 | Weighted-average Interest Rate Reduction | Weighted-average Term Extension (in years) | ||||||
LOAN TYPE | ||||||||
Commercial and Industrial | — | % | 1.03 | |||||
Commercial mortgage | — | % | 1.42 | |||||
Real estate — residential mortgage | 1.33 | % | 6.68 | |||||
Home equity loans | 3.72 | % | 2.90 | |||||
As of March 31, 2023 | Current | 30-89 Days Past Due | 90 and Greater Days Past Due | Total | ||||||||||
Dollars in millions | ||||||||||||||
LOAN TYPE | ||||||||||||||
Commercial and Industrial | $ | 80 | $ | 3 | $ | 1 | $ | 84 | ||||||
Commercial real estate | ||||||||||||||
Commercial mortgage | 4 | — | — | 4 | ||||||||||
Construction | — | — | — | — | ||||||||||
Total commercial real estate loans | 84 | 3 | 1 | 88 | ||||||||||
Commercial lease financing | — | — | — | — | ||||||||||
Total commercial loans | 84 | 3 | 1 | 88 | ||||||||||
Real estate — residential mortgage | 1 | — | — | 1 | ||||||||||
Home equity loans | 2 | — | — | 2 | ||||||||||
Consumer direct loans | 1 | — | — | 1 | ||||||||||
Credit cards | 1 | — | — | 1 | ||||||||||
Consumer indirect loans | — | — | — | — | ||||||||||
Total consumer loans | $ | 5 | $ | — | $ | — | $ | 5 | ||||||
Total loans | $ | 89 | $ | 3 | $ | 1 | $ | 93 | ||||||
Three months ended March 31, | ||||||||
Dollars in millions | 2023 | 2022 | ||||||
Balance at beginning of period | $ | 225 | $ | 160 | ||||
Provision (credit) for losses on off balance sheet exposures | 51 | 6 | ||||||
Balance at end of period | $ | 276 | $ | 166 | ||||
Three Months Ended March 31, | |||||
Dollars in millions | 2022 | ||||
Commercial loans: | |||||
Extension of Maturity Date | $ | — | |||
Payment or Covenant Modification/Deferment | 1 | ||||
Bankruptcy Plan Modification | — | ||||
Increase in new commitment or new money | — | ||||
Total | $ | 1 | |||
Consumer loans: | |||||
Interest rate reduction | $ | 1 | |||
Other | 9 | ||||
Total | $ | 10 | |||
Total TDRs | $ | 11 | |||
Three Months Ended March 31, | |||||
Dollars in millions | 2022 | ||||
Balance at beginning of the period | $ | 220 | |||
Additions | 11 | ||||
Payments | (12) | ||||
Charge-offs | — | ||||
Balance at end of period | $ | 219 | |||
December 31, 2022 | |||||||||||
Number of Loans | Pre-modification Outstanding Recorded Investment | Post-modification Outstanding Recorded Investment | |||||||||
Dollars in millions | |||||||||||
LOAN TYPE | |||||||||||
Nonperforming: | |||||||||||
Commercial and industrial | 27 | $ | 60 | $ | 45 | ||||||
Commercial real estate: | |||||||||||
Commercial mortgage | 4 | 50 | 13 | ||||||||
Total commercial real estate loans | 4 | 50 | 13 | ||||||||
Total commercial loans | 31 | 110 | 58 | ||||||||
Real estate — residential mortgage | 238 | 30 | 27 | ||||||||
Home equity loans | 468 | 32 | 28 | ||||||||
Consumer direct loans | 156 | 2 | 2 | ||||||||
Credit cards | 331 | 2 | 2 | ||||||||
Consumer indirect loans | 16 | 2 | 1 | ||||||||
Total consumer loans | 1,209 | 68 | 60 | ||||||||
Total nonperforming TDRs | 1,240 | 178 | 118 | ||||||||
Prior-year accruing:(a) | |||||||||||
Commercial and industrial | 19 | — | — | ||||||||
Commercial real estate | |||||||||||
Commercial mortgage | — | — | — | ||||||||
Total commercial real estate loans | — | — | — | ||||||||
Total commercial loans | 19 | — | — | ||||||||
Real estate — residential mortgage | 425 | 41 | 35 | ||||||||
Home equity loans | 1,547 | 96 | 73 | ||||||||
Consumer direct loans | 272 | 4 | 3 | ||||||||
Credit cards | 607 | 4 | 2 | ||||||||
Consumer indirect loans | 95 | 11 | 5 | ||||||||
Total consumer loans | 2,946 | 156 | 118 | ||||||||
Total prior-year accruing TDRs | 2,965 | 156 | 118 | ||||||||
Total TDRs | 4,205 | $ | 334 | $ | 236 | ||||||
March 31, 2023 | December 31, 2022 | |||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||
Dollars in millions | ||||||||||||||||||||||||||
ASSETS MEASURED ON A RECURRING BASIS | ||||||||||||||||||||||||||
Trading account assets: | ||||||||||||||||||||||||||
U.S. Treasury, agencies and corporations | $ | — | $ | 926 | $ | — | $ | 926 | $ | — | $ | 698 | $ | — | $ | 698 | ||||||||||
States and political subdivisions | — | 36 | — | 36 | — | 33 | — | 33 | ||||||||||||||||||
Other mortgage-backed securities | — | 152 | — | 152 | — | 84 | — | 84 | ||||||||||||||||||
Other securities | — | 3 | — | 3 | — | — | — | — | ||||||||||||||||||
Total trading account securities | — | 1,117 | — | 1,117 | — | 815 | — | 815 | ||||||||||||||||||
Commercial loans | — | 1 | — | 1 | — | 14 | — | 14 | ||||||||||||||||||
Total trading account assets | — | 1,118 | — | 1,118 | — | 829 | — | 829 | ||||||||||||||||||
Securities available for sale: | ||||||||||||||||||||||||||
U.S. Treasury, agencies and corporations | — | 9,514 | — | 9,514 | — | 9,415 | — | 9,415 | ||||||||||||||||||
States and political subdivisions | — | — | — | — | — | — | — | — | ||||||||||||||||||
Agency residential collateralized mortgage obligations | — | 16,425 | — | 16,425 | — | 16,433 | — | 16,433 | ||||||||||||||||||
Agency residential mortgage-backed securities | — | 3,900 | — | 3,900 | — | 3,920 | — | 3,920 | ||||||||||||||||||
Agency commercial mortgage-backed securities | — | 9,659 | — | 9,659 | — | 9,349 | — | 9,349 | ||||||||||||||||||
Other securities | — | — | — | — | — | — | — | — | ||||||||||||||||||
Total securities available for sale | $ | — | $ | 39,498 | $ | — | $ | 39,498 | $ | — | $ | 39,117 | $ | — | $ | 39,117 | ||||||||||
Other investments: | ||||||||||||||||||||||||||
Principal investments: | ||||||||||||||||||||||||||
Direct | $ | — | $ | — | $ | 1 | $ | 1 | $ | — | $ | — | $ | 1 | $ | 1 | ||||||||||
Indirect (measured at NAV) (a) | — | — | — | 20 | — | — | — | 34 | ||||||||||||||||||
Total principal investments | — | — | 1 | 21 | — | — | 1 | 35 | ||||||||||||||||||
Equity investments: | ||||||||||||||||||||||||||
Direct | 3 | — | 2 | 5 | 4 | — | 2 | 6 | ||||||||||||||||||
Direct (measured at NAV) (a) | — | — | — | 31 | — | — | — | 32 | ||||||||||||||||||
Indirect (measured at NAV) (a) | — | — | — | 4 | — | — | — | 4 | ||||||||||||||||||
Total equity investments | 3 | — | 2 | 40 | 4 | — | 2 | 42 | ||||||||||||||||||
Total other investments | 3 | — | 3 | 61 | 4 | — | 3 | 77 | ||||||||||||||||||
Loans, net of unearned income (residential) | — | — | 9 | 9 | — | — | 9 | 9 | ||||||||||||||||||
Loans held for sale (residential) | — | 45 | — | 45 | — | 24 | — | 24 | ||||||||||||||||||
Derivative assets: | ||||||||||||||||||||||||||
Interest rate | — | 228 | 13 | 241 | — | 301 | 2 | 303 | ||||||||||||||||||
Foreign exchange | 113 | 18 | — | 131 | 112 | 23 | — | 136 | ||||||||||||||||||
Commodity | — | 986 | — | 986 | — | 1,328 | — | 1,328 | ||||||||||||||||||
Credit | — | — | 1 | 1 | — | — | 1 | 1 | ||||||||||||||||||
Other | — | 15 | 1 | 16 | — | 13 | — | 13 | ||||||||||||||||||
Derivative assets | 113 | 1,247 | 15 | 1,375 | 112 | 1,666 | 3 | 1,781 | ||||||||||||||||||
Netting adjustments (b) | — | — | — | (978) | — | — | — | (757) | ||||||||||||||||||
Total derivative assets | 113 | 1,247 | 15 | 397 | 112 | 1,666 | 3 | 1,024 | ||||||||||||||||||
Total assets on a recurring basis at fair value | $ | 116 | $ | 41,908 | $ | 27 | $ | 41,128 | $ | 116 | $ | 41,636 | $ | 15 | $ | 41,080 | ||||||||||
LIABILITIES MEASURED ON A RECURRING BASIS | ||||||||||||||||||||||||||
Bank notes and other short-term borrowings: | ||||||||||||||||||||||||||
Short positions | $ | 58 | $ | 753 | $ | — | $ | 811 | $ | 126 | $ | 509 | $ | — | $ | 635 | ||||||||||
Derivative liabilities: | ||||||||||||||||||||||||||
Interest rate | — | 1,057 | — | 1,057 | — | 1,307 | — | 1,307 | ||||||||||||||||||
Foreign exchange | 95 | 18 | — | 113 | 107 | 24 | — | 131 | ||||||||||||||||||
Commodity | — | 962 | — | 962 | — | 1,304 | — | 1,304 | ||||||||||||||||||
Credit | — | 1 | 2 | 3 | — | — | 3 | 3 | ||||||||||||||||||
Other | — | 9 | — | 9 | — | 5 | — | 5 | ||||||||||||||||||
Derivative liabilities | 95 | 2,047 | 2 | 2,144 | 107 | 2,640 | 3 | 2,750 | ||||||||||||||||||
Netting adjustments (b) | — | — | — | (850) | — | — | — | (1,262) | ||||||||||||||||||
Total derivative liabilities | 95 | 2,047 | 2 | 1,294 | 107 | 2,640 | 3 | 1,488 | ||||||||||||||||||
Total liabilities on a recurring basis at fair value | $ | 153 | $ | 2,800 | $ | 2 | $ | 2,105 | $ | 233 | $ | 3,149 | $ | 3 | $ | 2,123 | ||||||||||
Financial support provided | ||||||||||||||||||||||||||
Three months ended March 31, | ||||||||||||||||||||||||||
March 31, 2023 | 2023 | 2022 | ||||||||||||||||||||||||
Dollars in millions | Fair Value | Unfunded Commitments | Funded Commitments | Funded Other | Funded Commitments | Funded Other | ||||||||||||||||||||
INVESTMENT TYPE | ||||||||||||||||||||||||||
Direct investments | $ | 1 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||
Indirect investments (measured at NAV) (a) | 20 | 3 | — | — | — | — | ||||||||||||||||||||
Total | $ | 21 | $ | 3 | $ | — | $ | — | $ | — | $ | — | ||||||||||||||
Dollars 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 | |||||||||||||||||||||||||||||||||
Three months ended March 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||
Other investments | ||||||||||||||||||||||||||||||||||||||||||||
Principal investments | ||||||||||||||||||||||||||||||||||||||||||||
Direct (a) | $ | 1 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 1 | $ | — | ||||||||||||||||||||||
Other indirect | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Equity investments | ||||||||||||||||||||||||||||||||||||||||||||
Direct (a) | 2 | — | — | — | — | — | — | — | — | 2 | — | |||||||||||||||||||||||||||||||||
Loans, net of unearned income (residential) | 9 | — | — | — | — | — | — | — | — | 9 | — | |||||||||||||||||||||||||||||||||
Derivative instruments (b) | ||||||||||||||||||||||||||||||||||||||||||||
Interest rate | 2 | — | 6 | (c) | 18 | (1) | — | — | (8) | (d) | (4) | (d) | 13 | — | ||||||||||||||||||||||||||||||
Credit | (2) | — | 1 | (c) | — | — | — | — | — | — | (1) | — | ||||||||||||||||||||||||||||||||
Other (e) | — | — | — | (c) | — | — | — | 1 | — | — | 1 | — | ||||||||||||||||||||||||||||||||
Dollars 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 | |||||||||||||||||||||||||||||||||
Three months ended March 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||
Other investments | ||||||||||||||||||||||||||||||||||||||||||||
Principal investments | ||||||||||||||||||||||||||||||||||||||||||||
Direct (a) | $ | 1 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 1 | $ | — | ||||||||||||||||||||||
Equity investments | ||||||||||||||||||||||||||||||||||||||||||||
Direct (a) | 9 | (2) | — | — | — | — | — | — | 7 | (2) | ||||||||||||||||||||||||||||||||||
Loans, net of unearned income (residential) | 11 | — | — | — | — | — | — | — | — | 11 | — | |||||||||||||||||||||||||||||||||
Derivative instruments (b) | ||||||||||||||||||||||||||||||||||||||||||||
Interest rate | 33 | — | (11) | (c) | 1 | — | 29 | (d) | (9) | (d) | 43 | — | ||||||||||||||||||||||||||||||||
Credit | (6) | — | 1 | (c) | — | — | — | — | — | — | (5) | — | ||||||||||||||||||||||||||||||||
Other (e) | 5 | — | — | (c) | — | — | (7) | — | — | (2) | — | |||||||||||||||||||||||||||||||||
March 31, 2023 | December 31, 2022 | ||||||||||||||||||||||||||||
Dollars 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 | $ | — | $ | — | $ | 60 | $ | 60 | $ | — | $ | — | $ | 17 | $ | 17 | |||||||||||||
Accrued income and other assets | — | — | 72 | 72 | — | — | 14 | 14 | |||||||||||||||||||||
Total assets on a nonrecurring basis at fair value | $ | — | $ | — | $ | 132 | $ | 132 | $ | — | $ | — | $ | 31 | $ | 31 | |||||||||||||
Level 3 Asset (Liability) | Valuation Technique | Significant Unobservable Input | Range (Weighted-Average) (a), (b) | |||||||||||||||||
Dollars in millions | March 31, 2023 | December 31, 2022 | March 31, 2023 | December 31, 2022 | ||||||||||||||||
Recurring | ||||||||||||||||||||
Loans, net of unearned income (residential) | $ | 9 | $ | 9 | Market comparable pricing | Comparability factor | 61.72 - 87.23% (72.34%) | 61.00-86.58% (72.21%) | ||||||||||||
Derivative instruments: | ||||||||||||||||||||
Interest rate | 13 | 2 | Discounted cash flows | Probability of default | .02 - 100% (6.80%) | .02 - 100% (8.00%) | ||||||||||||||
Loss given default | 0 - 1 (.495) | 0 - 1 (.492) | ||||||||||||||||||
Insignificant level 3 assets, net of liabilities(c) | 3 | 1 | ||||||||||||||||||
Nonrecurring | ||||||||||||||||||||
Collateral-dependent loans | 60 | 17 | Fair value of collateral | Discount rate | 0 - 10.00% (4.00%) | 0 - 85.00% (34.00%) | ||||||||||||||
Accrued income and other assets: | ||||||||||||||||||||
OREO and other Level 3 assets (d) | 72 | 14 | Appraised value | Appraised value | N/M | N/M | ||||||||||||||
March 31, 2023 | ||||||||||||||||||||||||||
Fair Value | ||||||||||||||||||||||||||
Dollars 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) | $ | 1,118 | $ | — | $ | 1,118 | $ | — | $ | — | $ | — | $ | 1,118 | ||||||||||||
Other investments (b) | 1,587 | 3 | — | 1,530 | 54 | — | 1,587 | |||||||||||||||||||
Loans, net of unearned income (residential) (d) | 9 | — | — | 9 | — | — | 9 | |||||||||||||||||||
Loans held for sale (residential) (b) | 45 | — | 45 | — | — | — | 45 | |||||||||||||||||||
Derivative assets - trading (b) | 382 | 113 | 1,193 | 15 | — | (939) | (f) | 382 | ||||||||||||||||||
Fair value - OCI | ||||||||||||||||||||||||||
Securities available for sale (b) | 39,498 | — | 39,498 | — | — | — | 39,498 | |||||||||||||||||||
Derivative assets - hedging (b)(g) | 15 | — | 54 | — | — | (39) | (f) | 15 | ||||||||||||||||||
Amortized cost | ||||||||||||||||||||||||||
Held-to-maturity securities (c) | 9,561 | — | 9,085 | — | — | — | 9,085 | |||||||||||||||||||
Loans, net of unearned income (d) | 118,582 | — | — | 112,964 | — | — | 112,964 | |||||||||||||||||||
Loans held for sale (b) | 1,166 | — | — | 1,166 | — | — | 1,166 | |||||||||||||||||||
Other | ||||||||||||||||||||||||||
Cash and other short-term investments (a) | 9,194 | 9,194 | — | — | — | — | 9,194 | |||||||||||||||||||
LIABILITIES (by measurement category) | ||||||||||||||||||||||||||
Fair value - net income | ||||||||||||||||||||||||||
Derivative liabilities - trading (b) | $ | 1,332 | $ | 95 | $ | 2,070 | $ | 2 | $ | — | $ | (835) | (f) | $ | 1,332 | |||||||||||
Fair value - OCI | ||||||||||||||||||||||||||
Derivative liabilities - hedging (b)(g) | (38) | — | (23) | — | — | (15) | (f) | (38) | ||||||||||||||||||
Amortized cost | ||||||||||||||||||||||||||
Time deposits (e) | 13,838 | — | 13,898 | — | — | — | 13,898 | |||||||||||||||||||
Short-term borrowings (a) | 11,435 | 58 | 11,377 | — | — | — | 11,435 | |||||||||||||||||||
Long-term debt (e) | 22,753 | 12,195 | 9,696 | — | — | — | 21,891 | |||||||||||||||||||
Other | ||||||||||||||||||||||||||
Deposits with no stated maturity (a) | 130,310 | — | 130,310 | — | — | — | 130,310 |
December 31, 2022 | ||||||||||||||||||||||||||
Fair Value | ||||||||||||||||||||||||||
Dollars 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) | $ | 829 | $ | — | $ | 829 | $ | — | $ | — | $ | — | $ | 829 | ||||||||||||
Other investments (b) | 1,308 | 4 | — | 1,234 | 70 | — | 1,308 | |||||||||||||||||||
Loans, net of unearned income (residential) (d) | 9 | — | — | 9 | — | — | 9 | |||||||||||||||||||
Loans held for sale (residential) (b) | 24 | — | 24 | — | — | — | 24 | |||||||||||||||||||
Derivative assets - trading (b) | 927 | $ | 112 | 1,552 | 3 | — | (740) | (f) | 927 | |||||||||||||||||
Fair value - OCI | ||||||||||||||||||||||||||
Securities available for sale (b) | 39,117 | — | 39,117 | — | — | — | 39,117 | |||||||||||||||||||
Derivative assets - hedging (b)(g) | 97 | — | 114 | — | — | (17) | (f) | 97 | ||||||||||||||||||
Amortized cost | ||||||||||||||||||||||||||
Held-to-maturity securities (c) | 8,710 | — | 8,113 | — | — | — | 8,113 | |||||||||||||||||||
Loans, net of unearned income (d) | 118,048 | — | — | 112,590 | — | — | 112,590 | |||||||||||||||||||
Loans held for sale (b) | 939 | — | — | 939 | — | — | 939 | |||||||||||||||||||
Other | ||||||||||||||||||||||||||
Cash and other short-term investments (a) | 3,319 | 3,319 | — | — | — | — | 3,319 | |||||||||||||||||||
LIABILITIES (by measurement category) | ||||||||||||||||||||||||||
Fair value - net income | ||||||||||||||||||||||||||
Derivative liabilities - trading (b) | $ | 1,485 | $ | 107 | $ | 2,637 | $ | 3 | $ | — | $ | (1,262) | (f) | $ | 1,485 | |||||||||||
Fair value - OCI | ||||||||||||||||||||||||||
Derivative liabilities - hedging (b)(g) | 3 | — | 3 | — | — | — | (f) | 3 | ||||||||||||||||||
Amortized cost | ||||||||||||||||||||||||||
Time deposits (e) | 7,373 | — | 7,392 | — | — | — | 7,392 | |||||||||||||||||||
Short-term borrowings (a) | 9,463 | 126 | 9,337 | — | — | — | 9,463 | |||||||||||||||||||
Long-term debt (e) | 19,307 | 12,196 | 6,685 | — | — | — | 18,881 | |||||||||||||||||||
Other | ||||||||||||||||||||||||||
Deposits with no stated maturity (a) | 135,222 | — | 135,222 | — | — | — | 135,222 |
March 31, 2023 | December 31, 2022 | ||||||||||||||||||||||||||||
Dollars in millions | Amortized Cost (a) | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | Amortized Cost (b) | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||||||||||
SECURITIES AVAILABLE FOR SALE | |||||||||||||||||||||||||||||
U.S. Treasury, agencies, and corporations | $ | 10,027 | $ | — | $ | 513 | $ | 9,514 | $ | 10,044 | $ | — | $ | 629 | $ | 9,415 | |||||||||||||
Agency residential collateralized mortgage obligations | 19,770 | — | 3,345 | 16,425 | 20,180 | — | 3,747 | 16,433 | |||||||||||||||||||||
Agency residential mortgage-backed securities | 4,534 | — | 634 | 3,900 | 4,616 | — | 696 | 3,920 | |||||||||||||||||||||
Agency commercial mortgage-backed securities | 10,848 | 5 | 1,194 | 9,659 | 10,712 | 2 | 1,365 | 9,349 | |||||||||||||||||||||
Other securities | — | — | — | — | — | — | — | — | |||||||||||||||||||||
Total securities available for sale | $ | 45,179 | $ | 5 | $ | 5,686 | $ | 39,498 | $ | 45,552 | $ | 2 | $ | 6,437 | $ | 39,117 | |||||||||||||
HELD-TO-MATURITY SECURITIES | |||||||||||||||||||||||||||||
Agency residential collateralized mortgage obligations | $ | 5,566 | $ | 15 | $ | 232 | $ | 5,349 | $ | 4,586 | $ | 5 | $ | 283 | $ | 4,308 | |||||||||||||
Agency residential mortgage-backed securities | 177 | — | 12 | 165 | 181 | — | 16 | 165 | |||||||||||||||||||||
Agency commercial mortgage-backed securities | 2,584 | 2 | 184 | 2,402 | 2,522 | 1 | 208 | 2,315 | |||||||||||||||||||||
Asset-backed securities (c) | 1,219 | — | 64 | 1,155 | 1,407 | — | 96 | 1,311 | |||||||||||||||||||||
Other securities | 15 | — | 1 | 14 | 14 | — | — | 14 | |||||||||||||||||||||
Total held-to-maturity securities | $ | 9,561 | $ | 17 | 493 | $ | 9,085 | $ | 8,710 | $ | 6 | $ | 603 | $ | 8,113 | ||||||||||||||
Duration of Unrealized Loss Position | ||||||||||||||||||||||||||
Less than 12 Months | 12 Months or Longer | Total | ||||||||||||||||||||||||
Dollars in millions | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | ||||||||||||||||||||
March 31, 2023 | ||||||||||||||||||||||||||
Securities available for sale: | ||||||||||||||||||||||||||
U.S Treasury, agencies, and corporations | $ | — | $ | — | $ | 9,514 | $ | 513 | $ | 9,514 | $ | 513 | ||||||||||||||
Agency residential collateralized mortgage obligations | 127 | 4 | 16,297 | 3,341 | 16,424 | 3,345 | ||||||||||||||||||||
Agency residential mortgage-backed securities | 350 | 12 | 3,547 | 622 | 3,897 | 634 | ||||||||||||||||||||
Agency commercial mortgage-backed securities | 2,780 | 118 | 6,684 | 1,076 | 9,464 | 1,194 | ||||||||||||||||||||
Held-to-maturity securities: | ||||||||||||||||||||||||||
Agency residential collateralized mortgage obligations | 2,935 | 85 | 1,399 | 147 | 4,334 | 232 | ||||||||||||||||||||
Agency residential mortgage-backed securities | 45 | 2 | 119 | 10 | 164 | 12 | ||||||||||||||||||||
Agency commercial mortgage-backed securities | 370 | 32 | 1,958 | 152 | 2,328 | 184 | ||||||||||||||||||||
Asset-backed securities | — | — | 1,155 | 64 | 1,155 | 64 | ||||||||||||||||||||
Other securities | 10 | — | (a) | 4 | 1 | 14 | 1 | |||||||||||||||||||
Total securities in an unrealized loss position | $ | 6,617 | $ | 253 | $ | 40,677 | $ | 5,926 | $ | 47,294 | $ | 6,179 | ||||||||||||||
December 31, 2022 | ||||||||||||||||||||||||||
Securities available for sale: | ||||||||||||||||||||||||||
U.S. Treasury, agencies, and corporations | $ | 494 | $ | 48 | $ | 8,920 | $ | 581 | $ | 9,414 | $ | 629 | ||||||||||||||
Agency residential collateralized mortgage obligations | 3,114 | 377 | 13,317 | 3,370 | 16,431 | 3,747 | ||||||||||||||||||||
Agency residential mortgage-backed securities | 579 | 31 | 3,338 | 665 | 3,917 | 696 | ||||||||||||||||||||
Agency commercial mortgage-backed securities | 4,511 | 282 | 4,791 | 1,083 | 9,302 | 1,365 | ||||||||||||||||||||
Held-to-maturity securities: | ||||||||||||||||||||||||||
Agency residential collateralized mortgage obligations | 2,659 | 178 | 726 | 105 | 3,385 | 283 | ||||||||||||||||||||
Agency residential mortgage-backed securities | 165 | 16 | — | — | 165 | 16 | ||||||||||||||||||||
Agency commercial mortgage-backed securities | 2,243 | 208 | — | — | 2,243 | 208 | ||||||||||||||||||||
Asset-backed securities | 1 | — | (b) | 1,309 | 96 | 1,310 | 96 | |||||||||||||||||||
Other securities | 10 | — | (b) | 4 | — | (b) | 14 | — | ||||||||||||||||||
Total securities in an unrealized loss position | $ | 13,776 | $ | 1,140 | $ | 32,405 | $ | 5,900 | $ | 46,181 | $ | 7,040 | ||||||||||||||
March 31, 2023 | Securities Available for Sale | Held to Maturity Securities | ||||||||||||
Dollars in millions | Amortized Cost | Fair Value | Amortized Cost | Fair Value | ||||||||||
Due in one year or less | $ | 1,944 | $ | 1,887 | $ | 21 | $ | 21 | ||||||
Due after one through five years | 15,833 | 14,676 | 5,497 | 5,222 | ||||||||||
Due after five through ten years | 21,477 | 18,176 | 3,191 | 3,023 | ||||||||||
Due after ten years | 5,925 | 4,759 | 852 | 819 | ||||||||||
Total | $ | 45,179 | $ | 39,498 | $ | 9,561 | $ | 9,085 | ||||||
March 31, 2023 | December 31, 2022 | ||||||||||||||||||||||
Fair Value(a) | Fair Value(a) | ||||||||||||||||||||||
Dollars in millions | Notional Amount | Derivative Assets | Derivative Liabilities | Notional Amount | Derivative Assets | Derivative Liabilities | |||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||||||
Interest rate | $ | 50,243 | $ | 54 | $ | (23) | $ | 41,200 | $ | 114 | $ | 3 | |||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||||
Interest rate | 84,338 | 187 | 1,080 | 80,772 | 189 | 1,304 | |||||||||||||||||
Foreign exchange | 10,320 | 131 | 113 | 9,507 | 136 | 131 | |||||||||||||||||
Commodity | 14,382 | 986 | 962 | 16,176 | 1,328 | 1,304 | |||||||||||||||||
Credit | 146 | 1 | 3 | 95 | 1 | 3 | |||||||||||||||||
Other (b) | 1,860 | 16 | 9 | 940 | 13 | 5 | |||||||||||||||||
Total derivatives not designated as hedging instruments: | 111,046 | 1,321 | 2,167 | 107,490 | 1,667 | 2,747 | |||||||||||||||||
Netting adjustments (c) | — | (978) | (850) | — | (757) | (1,262) | |||||||||||||||||
Net derivatives in the balance sheet | 161,289 | 397 | 1,294 | 148,690 | 1,024 | 1,488 | |||||||||||||||||
Other collateral (d) | — | — | (13) | — | — | (5) | |||||||||||||||||
Net derivative amounts | $ | 161,289 | $ | 397 | $ | 1,281 | $ | 148,690 | $ | 1,024 | $ | 1,483 | |||||||||||
March 31, 2023 | |||||||||||
Dollars 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 | $ | 10,836 | $ | (359) | ||||||
Interest rate contracts | Securities Available for Sale(c) | 1,663 | 53 | ||||||||
December 31, 2022 | |||||||||||
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 | $ | 10,411 | $ | (552) | ||||||
Interest rate contracts | Securities Available for Sale(c) | 405 | 48 | ||||||||
Location and amount of net gains (losses) recognized in income on fair value and cash flow hedging relationships | ||||||||||||||
Dollars in millions | Interest expense – long-term debt | Interest income – loans | Interest Income - securities | Investment banking and debt placement fees | ||||||||||
Three months ended March 31, 2023 | ||||||||||||||
Total amounts presented in the consolidated statement of income | $ | (275) | $ | 1,476 | $ | 194 | $ | 145 | ||||||
Net gains (losses) on fair value hedging relationships | ||||||||||||||
Interest contracts | ||||||||||||||
Recognized on hedged items | $ | (155) | $ | — | $ | 6 | $ | — | ||||||
Recognized on derivatives designated as hedging instruments | 108 | — | (2) | — | ||||||||||
Net income (expense) recognized on fair value hedges | $ | (47) | $ | — | $ | 4 | $ | — | ||||||
Net gain (loss) on cash flow hedging relationships | ||||||||||||||
Interest contracts | ||||||||||||||
Realized gains (losses) (pre-tax) reclassified from AOCI into net income | $ | (1) | $ | (215) | $ | — | $ | — | ||||||
Net income (expense) recognized on cash flow hedges | $ | (1) | $ | (215) | $ | — | $ | — | ||||||
Three months ended March 31, 2022 | ||||||||||||||
Total amounts presented in the consolidated statement of income | $ | (49) | $ | 837 | $ | 173 | $ | 163 | ||||||
Net gains (losses) on fair value hedging relationships | ||||||||||||||
Interest contracts | ||||||||||||||
Recognized on hedged items | $ | 240 | $ | — | $ | (276) | $ | — | ||||||
Recognized on derivatives designated as hedging instruments | (216) | — | 282 | — | ||||||||||
Net income (expense) recognized on fair value hedges | $ | 24 | $ | — | $ | 6 | $ | — | ||||||
Net gain (loss) on cash flow hedging relationships | ||||||||||||||
Interest contracts | ||||||||||||||
Realized gains (losses) (pre-tax) reclassified from AOCI into net income | $ | (1) | $ | 64 | $ | — | $ | 2 | ||||||
Net income (expense) recognized on cash flow hedges | $ | (1) | $ | 64 | $ | — | $ | 2 | ||||||
Dollars 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 March 31, 2023 | |||||||||||
Cash Flow Hedges | |||||||||||
Interest rate | $ | 109 | Interest income — Loans | $ | (215) | ||||||
Interest rate | (1) | Interest expense — Long-term debt | (1) | ||||||||
Interest rate | (1) | Investment banking and debt placement fees | — | ||||||||
Total | $ | 107 | $ | (216) | |||||||
Three months ended March 31, 2022 | |||||||||||
Cash Flow Hedges | |||||||||||
Interest rate | $ | (670) | Interest income — Loans | $ | 64 | ||||||
Interest rate | 3 | Interest expense — Long-term debt | (1) | ||||||||
Interest rate | 9 | Investment banking and debt placement fees | 2 | ||||||||
Total | $ | (658) | $ | 65 | |||||||
Three months ended March 31, 2023 | Three months ended March 31, 2022 | ||||||||||||||||||||||||||||
Dollars 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 | $ | 12 | $ | — | $ | (2) | $ | 10 | $ | 13 | $ | — | $ | 9 | $ | 22 | |||||||||||||
Foreign exchange | 13 | — | — | 13 | 13 | — | — | 13 | |||||||||||||||||||||
Commodity | 7 | — | — | 7 | 5 | — | — | 5 | |||||||||||||||||||||
Credit | — | — | (14) | (14) | 2 | — | (10) | (8) | |||||||||||||||||||||
Other | — | 1 | (2) | (1) | — | (4) | 7 | 3 | |||||||||||||||||||||
Total net gains (losses) | $ | 32 | $ | 1 | $ | (18) | $ | 15 | $ | 33 | $ | (4) | $ | 6 | $ | 35 | |||||||||||||
Dollars in millions | March 31, 2023 | December 31, 2022 | ||||||
Interest rate | $ | 169 | $ | 136 | ||||
Foreign exchange | 63 | 67 | ||||||
Commodity | 439 | 820 | ||||||
Credit | — | — | ||||||
Other | 15 | 11 | ||||||
Derivative assets before collateral | 686 | 1,034 | ||||||
Plus(Less): Related collateral | (289) | (10) | ||||||
Total derivative assets | $ | 397 | $ | 1,024 | ||||
March 31, 2023 | December 31, 2022 | ||||||||||||||||||||||
Dollars in millions | Notional Amount | Average Term (Years) | Payment / Performance Risk | Notional Amount | Average Term (Years) | Payment / Performance Risk | |||||||||||||||||
Other | $ | 1 | 11.04 | 6.05 | % | $ | 1 | 15.17 | 5.10 | % | |||||||||||||
Total credit derivatives sold | $ | 1 | — | — | $ | 1 | — | — | |||||||||||||||
Dollars in millions | March 31, 2023 | December 31, 2022 | |||||||||||||||
Net derivative liabilities with credit-risk contingent features | (171) | (612) | |||||||||||||||
Collateral posted | 141 | 534 |
Three months ended March 31, | ||||||||
Dollars in millions | 2023 | 2022 | ||||||
Balance at beginning of period | $ | 653 | $ | 634 | ||||
Servicing retained from loan sales | 9 | 30 | ||||||
Purchases | 4 | 11 | ||||||
Amortization | (32) | (31) | ||||||
Temporary (impairments) recoveries | — | — | ||||||
Balance at end of period | $ | 634 | $ | 644 | ||||
Fair value at end of period | $ | 981 | $ | 846 | ||||
Dollars in millions | March 31, 2023 | March 31, 2022 | ||||||||||||||||||||||||
Valuation Technique | Significant Unobservable Input | Range | Weighted Average | Range | Weighted Average | |||||||||||||||||||||
Discounted cash flow | Expected defaults | 0.96 | % | 2.00 | % | 1.06 | % | 1.00 | % | 2.00 | % | 1.12 | % | |||||||||||||
Residual cash flows discount rate | 8.57 | % | 10.03 | % | 9.49 | % | 8.34 | % | 10.32 | % | 9.52 | % | ||||||||||||||
Escrow earn rate | 4.94 | % | 4.95 | % | 4.94 | % | 2.06 | % | 2.49 | % | 2.31 | % | ||||||||||||||
Loan assumption rate | — | % | 1.40 | % | 1.14 | % | — | % | 1.64 | % | 1.29 | % |
Three months ended March 31, | ||||||||
Dollars in millions | 2023 | 2022 | ||||||
Balance at beginning of period | $ | 106 | $ | 93 | ||||
Servicing retained from loan sales | 1 | 11 | ||||||
Purchases | — | — | ||||||
Amortization | (2) | (4) | ||||||
Temporary (impairments) recoveries | — | 1 | ||||||
Balance at end of period | $ | 105 | $ | 101 | ||||
Fair value at end of period | $ | 129 | $ | 116 | ||||
March 31, 2023 | March 31, 2022 | |||||||||||||||||||||||||
Valuation Technique | Significant Unobservable Input | Range | Weighted Average | Range | Weighted Average | |||||||||||||||||||||
Discounted cash flow | Prepayment speed | 6.41 | % | 40.74 | % | 7.30 | % | 5.84 | % | 59.51 | % | 8.82 | % | |||||||||||||
Discount rate | 7.50 | % | 8.50 | % | 7.54 | % | 7.50 | % | 8.52 | % | 7.53 | % | ||||||||||||||
Servicing cost | $ | 62.00 | $ | 8,075 | $ | 67.36 | $ | 62.00 | $ | 8,075 | $ | 67.46 |
Three months ended March 31, | ||||||||
Dollars in millions | 2023 | 2022 | ||||||
Sales-type and direct financing leases | ||||||||
Interest income on lease receivable | $ | 19 | $ | 16 | ||||
Interest income related to accretion of unguaranteed residual asset | 3 | 4 | ||||||
Total sales-type and direct financing lease income | $ | 22 | $ | 20 | ||||
Operating leases | ||||||||
Operating lease income related to lease payments | $ | 24 | $ | 28 | ||||
Other operating leasing gains | 1 | 4 | ||||||
Total operating lease income and other leasing gains | 25 | 32 | ||||||
Total lease income | $ | 47 | $ | 52 | ||||
Dollars in millions | Consumer Bank | Commercial Bank | Total | ||||||||
BALANCE AT MARCH 31, 2022 | $ | 1,761 | $ | 932 | $ | 2,693 | |||||
XUP acquisition measurement period adjustment | — | 1 | 1 | ||||||||
GradFin acquisition | 58 | — | 58 | ||||||||
BALANCE AT DECEMBER 31, 2022 | $ | 1,819 | $ | 933 | $ | 2,752 | |||||
BALANCE AT MARCH 31, 2023 | $ | 1,819 | $ | 933 | $ | 2,752 | |||||
Unconsolidated VIEs | |||||||||||
Dollars in millions | Total Assets | Total Liabilities | Maximum Exposure to Loss | ||||||||
March 31, 2023 | |||||||||||
LIHTC investments | $ | 7,921 | $ | 2,913 | $ | 2,514 | |||||
December 31, 2022 | |||||||||||
LIHTC investments | $ | 8,227 | $ | 3,091 | $ | 2,370 |
Unconsolidated VIEs | |||||||||||
Dollars in millions | Total Assets | Total Liabilities | Maximum Exposure to Loss | ||||||||
March 31, 2023 | |||||||||||
Indirect investments | $ | 4,523 | $ | 87 | $ | 23 | |||||
December 31, 2022 | |||||||||||
Indirect investments | $ | 6,636 | $ | 90 | $ | 43 |
Other unconsolidated VIEs | ||||||||
Dollars in millions | Total Assets | Total Liabilities | ||||||
March 31, 2023 | ||||||||
Other unconsolidated VIEs | $ | 1,659 | $ | — | ||||
December 31, 2022 | ||||||||
Other unconsolidated VIEs | $ | 1,798 | $ | 1 |
March 31, 2023 | December 31, 2022 | ||||||||||||||||||||||||||||
Dollars 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 | $ | 12 | $ | (12) | $ | — | $ | — | $ | 8 | $ | (8) | $ | — | $ | — | |||||||||||||
Securities borrowed | — | — | — | — | — | — | — | — | |||||||||||||||||||||
Total | $ | 12 | $ | (12) | $ | — | $ | — | $ | 8 | $ | (8) | $ | — | $ | — | |||||||||||||
Offsetting of financial liabilities: | |||||||||||||||||||||||||||||
Repurchase agreements (c) | $ | 59 | $ | (12) | $ | (47) | $ | — | $ | 71 | $ | (8) | $ | (63) | $ | — | |||||||||||||
Total | $ | 59 | $ | (12) | $ | (47) | $ | — | $ | 71 | $ | (8) | $ | (63) | $ | — | |||||||||||||
Three months ended March 31, | ||||||||
Dollars in millions | 2023 | 2022 | ||||||
Interest cost on PBO | $ | 11 | $ | 7 | ||||
Expected return on plan assets | (11) | (7) | ||||||
Amortization of losses | 3 | 4 | ||||||
Settlement loss | — | — | ||||||
Net pension cost | $ | 3 | $ | 4 | ||||
Dollars in millions | Trust Preferred Securities, Net of Discount (a)(d) | Common Stock | Principal Amount of Debentures, Net of Discount (b)(d) | Interest Rate of Trust Preferred Securities and Debentures (c) | Maturity of Trust Preferred Securities and Debentures | ||||||||||||
March 31, 2023 | |||||||||||||||||
KeyCorp Capital I | $ | 156 | $ | 6 | $ | 162 | 5.494 | % | 2028 | ||||||||
KeyCorp Capital II | 90 | 4 | 94 | 6.875 | 2029 | ||||||||||||
KeyCorp Capital III | 116 | 4 | 120 | 7.750 | 2029 | ||||||||||||
HNC Statutory Trust III | 20 | 1 | 21 | 6.322 | 2035 | ||||||||||||
HNC Statutory Trust IV | 20 | 1 | 21 | 6.176 | 2036 | ||||||||||||
Willow Grove Statutory Trust I | 18 | 1 | 19 | 6.082 | 2037 | ||||||||||||
Westbank Capital Trust II | 8 | — | 8 | 7.153 | 2034 | ||||||||||||
Westbank Capital Trust III | 8 | — | 8 | 7.153 | 2034 | ||||||||||||
Total | $ | 436 | $ | 17 | $ | 453 | 6.533 | % | — | ||||||||
December 31, 2022 | $ | 433 | $ | 17 | $ | 450 | 5.321 | % | — | ||||||||
March 31, 2023 | Maximum Potential Undiscounted Future Payments | Liability Recorded | ||||||
Dollars in millions | ||||||||
Financial guarantees: | ||||||||
Standby letters of credit | $ | 4,838 | $ | 90 | ||||
Recourse agreement with FNMA | 6,812 | 83 | ||||||
Residential mortgage reserve | 3,279 | 13 | ||||||
Written put options (a) | 3,725 | 248 | ||||||
Total | $ | 18,654 | $ | 434 | ||||
Dollars in millions | Unrealized gains (losses) on securities available for sale | Unrealized gains (losses) on derivative financial instruments | Net pension and postretirement benefit costs | Total | ||||||||||
Balance at December 31, 2022 | $ | (4,895) | $ | (1,124) | $ | (276) | $ | (6,295) | ||||||
Other comprehensive income before reclassification, net of income taxes | 575 | 80 | (1) | 654 | ||||||||||
Amounts reclassified from AOCI, net of income taxes (a) | — | 165 | 2 | 167 | ||||||||||
Net current-period other comprehensive income, net of income taxes | 575 | 245 | 1 | 821 | ||||||||||
Balance at March 31, 2023 | $ | (4,320) | $ | (879) | $ | (275) | $ | (5,474) | ||||||
Balance at December 31, 2021 | $ | (403) | $ | 88 | $ | (271) | $ | (586) | ||||||
Other comprehensive income before reclassification, net of income taxes | (1,784) | (511) | (1) | (2,296) | ||||||||||
Amounts reclassified from AOCI, net of income taxes (a) | — | (50) | 3 | (47) | ||||||||||
Net current-period other comprehensive income, net of income taxes | (1,784) | (561) | 2 | (2,343) | ||||||||||
Balance at March 31, 2022 | $ | (2,187) | $ | (473) | $ | (269) | $ | (2,929) | ||||||
Three months ended March 31, | Affected Line Item in the Consolidated Statement of Income | ||||||||||
Dollars in millions | 2023 | 2022 | |||||||||
Unrealized gains (losses) on derivative financial instruments | |||||||||||
Interest rate | $ | (215) | $ | 64 | Interest income — Loans | ||||||
Interest rate | (1) | (1) | Interest expense — Long-term debt | ||||||||
Interest rate | — | 2 | Investment banking and debt placement fees | ||||||||
(216) | 65 | Income (loss) from continuing operations before income taxes | |||||||||
(51) | 15 | Income taxes | |||||||||
$ | (165) | $ | 50 | Income (loss) from continuing operations | |||||||
Net pension and postretirement benefit costs | |||||||||||
Amortization of losses | $ | (3) | $ | (4) | Other expense | ||||||
Settlement loss | — | — | Other expense | ||||||||
(3) | (4) | Income (loss) from continuing operations before income taxes | |||||||||
(1) | (1) | Income taxes | |||||||||
$ | (2) | $ | (3) | 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 | First quarter 2023 dividends paid per depositary share | ||||||||||||||||
5.000% Fixed-to-Floating Rate Perpetual Noncumulative Series D | $ | 525 | 21,000 | $ | 1 | $ | 25,000 | 1/25th | $ | 1,000 | $ | 12.50 | |||||||||||
6.125% Fixed-to-Floating Rate Perpetual Noncumulative Series E | 500 | 500,000 | 1 | 1,000 | 1/40th | 25 | .382813 | ||||||||||||||||
5.650% Fixed Rate Perpetual Noncumulative Series F | 425 | 425,000 | 1 | 1,000 | 1/40th | 25 | .353125 | ||||||||||||||||
5.625% Fixed Rate Perpetual Non-Cumulative Series G | 450 | 450,000 | 1 | 1,000 | 1/40th | 25 | .351563 | ||||||||||||||||
6.200% Fixed Rate Reset Perpetual Non-Cumulative Series H | 600 | 600,000 | 1 | 1,000 | 1/40th | 25 | .387500 |
Three months ended March 31, | Consumer Bank | Commercial Bank | Other | Total Key | |||||||||||||||||||||||||||||||
Dollars in millions | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||||
SUMMARY OF OPERATIONS | |||||||||||||||||||||||||||||||||||
Net interest income (TE) | $ | 614 | $ | 543 | $ | 475 | $ | 414 | $ | 17 | $ | 63 | $ | 1,106 | $ | 1,020 | |||||||||||||||||||
Noninterest income | 228 | 256 | 366 | 394 | 14 | 26 | 608 | 676 | |||||||||||||||||||||||||||
Total revenue (TE) (a) | 842 | 799 | 841 | 808 | 31 | 89 | 1,714 | 1,696 | |||||||||||||||||||||||||||
Provision for credit losses | 60 | 43 | 80 | 41 | (1) | (1) | 139 | 83 | |||||||||||||||||||||||||||
Depreciation and amortization expense | 21 | 21 | 23 | 31 | 17 | 18 | 61 | 70 | |||||||||||||||||||||||||||
Other noninterest expense | 654 | 642 | 405 | 383 | 56 | (25) | 1,115 | 1,000 | |||||||||||||||||||||||||||
Income (loss) from continuing operations before income taxes (TE) | 107 | 93 | 333 | 353 | (41) | 97 | 399 | 543 | |||||||||||||||||||||||||||
Allocated income taxes and TE adjustments | 26 | 22 | 69 | 69 | (7) | 5 | 88 | 96 | |||||||||||||||||||||||||||
Income (loss) from continuing operations | 81 | 71 | 264 | 284 | (34) | 92 | 311 | 447 | |||||||||||||||||||||||||||
Income (loss) from discontinued operations, net of taxes | — | — | — | — | 1 | 1 | 1 | 1 | |||||||||||||||||||||||||||
Net income (loss) | 81 | 71 | 264 | 284 | (33) | 93 | 312 | 448 | |||||||||||||||||||||||||||
Less: Net income (loss) attributable to noncontrolling interests | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Net income (loss) attributable to Key | $ | 81 | $ | 71 | $ | 264 | $ | 284 | $ | (33) | $ | 93 | $ | 312 | $ | 448 | |||||||||||||||||||
AVERAGE BALANCES (b) | |||||||||||||||||||||||||||||||||||
Loans and leases | $ | 43,086 | $ | 38,654 | $ | 76,306 | $ | 64,684 | $ | 445 | $ | 424 | $ | 119,837 | $ | 103,762 | |||||||||||||||||||
Total assets (a) | 45,911 | 41,786 | 85,852 | 74,816 | 59,088 | 65,987 | 190,851 | 182,589 | |||||||||||||||||||||||||||
Deposits | 84,492 | 91,516 | 52,185 | 57,241 | 6,728 | 1,406 | 143,405 | 150,163 | |||||||||||||||||||||||||||
OTHER FINANCIAL DATA | |||||||||||||||||||||||||||||||||||
Net loan charge-offs (b) | $ | 24 | $ | 22 | $ | 21 | $ | 11 | $ | — | $ | — | $ | 45 | $ | 33 | |||||||||||||||||||
Return on average allocated equity (b) | 8.98 | % | 8.02 | % | 10.39 | % | 13.26 | % | 95.76 | % | 8.29 | % | 9.13 | % | 10.80 | % | |||||||||||||||||||
Return on average allocated equity | 8.98 | 8.02 | 10.39 | 13.26 | 92.94 | 8.38 | 9.16 | 10.83 | |||||||||||||||||||||||||||
Average full-time equivalent employees (c) | 8,046 | 7,885 | 2,517 | 2,416 | 7,657 | 6,808 | 18,220 | 17,109 |
Three months ended March 31, 2023 | Three months ended March 31, 2022 | ||||||||||||||||||||||
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 | $ | 16 | $ | 116 | $ | 106 | $ | 18 | $ | 124 | |||||||||||
Investment banking and debt placement fees | — | 113 | 113 | — | 109 | 109 | |||||||||||||||||
Services charges on deposit accounts | 39 | 28 | 67 | 55 | 36 | 91 | |||||||||||||||||
Cards and payments income | 45 | 32 | 77 | 42 | 36 | 78 | |||||||||||||||||
Other noninterest income | 2 | — | 2 | 2 | — | 2 | |||||||||||||||||
Total revenue from contracts with customers | $ | 186 | $ | 189 | $ | 375 | $ | 205 | $ | 199 | $ | 404 | |||||||||||
Other noninterest income (a) | $ | 219 | $ | 246 | |||||||||||||||||||
Noninterest income from Other(b) | 14 | 26 | |||||||||||||||||||||
Total noninterest income | $ | 608 | $ | 676 | |||||||||||||||||||
Cleveland, Ohio | |||||
May 4, 2023 |
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 (a) | Dollar value of shares that may yet be purchased as part of publicly announced plans or programs | |||||||||||||||||||
January 1 - 31 | 1,754 | 18.18 | 1,754 | 745,916,281 | |||||||||||||||||||
February 1 - 28 | 1,783,854 | 19.10 | 1,783,854 | 711,842,700 | |||||||||||||||||||
March 1 - 31 | 2,547,429 | 14.98 | 2,547,429 | 673,691,872 | |||||||||||||||||||
Total | 4,333,037 | $ | 16.68 | 4,333,037 | |||||||||||||||||||
101 | The following materials from KeyCorp’s Form 10-Q Report for the quarterly period ended March 31, 2023, 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 March 31, 2023, formatted in inline XBRL (contained in Exhibit 101). |
* | Furnished herewith. | ||||
^ | Incorporated by reference. Copies of these Exhibits have been filed with the SEC. Exhibits that are not incorporated by reference are furnished or filed with this report. Shareholders may obtain a copy of any exhibit, upon payment of reproduction costs, by writing KeyCorp Investor Relations, 127 Public Square, Cleveland, OH 44114-1306. |
KEYCORP | |||||
(Registrant) | |||||
May 4, 2023 | /s/ Douglas M. Schosser | ||||
By: Douglas M. Schosser | |||||
Chief Accounting Officer (Principal Accounting Officer) |
Date: May 4, 2023 | /s/ Christopher M. Gorman | ||||
Christopher M. Gorman | |||||
Chairman, Chief Executive Officer and President |
Date: May 4, 2023 | /s/ Clark H. Khayat | ||||
Clark H. Khayat | |||||
Chief Financial Officer |
Date: May 4, 2023 | /s/ Christopher M. Gorman | ||||
Christopher M. Gorman | |||||
Chairman, Chief Executive Officer and President |
Date: May 4, 2023 | /s/ Clark H. Khayat | ||||
Clark H. Khayat | |||||
Chief Financial Officer |