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Business Segment Reporting | 12 Months Ended
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Dec. 31, 2019
Segment Reporting [Abstract] |
Business Segment Reporting | 25. Business Segment Reporting Key previously reported its results of operations through two reportable business segments, Key Community Bank and Key Corporate Bank. In the first quarter of 2019, Key underwent a company-wide organizational change, resulting in the realignment of its businesses into two reportable business segments, Consumer Bank and Commercial Bank, with the remaining operations that do not meet the criteria for disclosure as a separate reportable business recorded in Other. The new business segment structure aligns with how management reviews performance and makes decisions by client, segment and business unit. Prior period information was restated to conform to the new business segment structure. Additionally, goodwill was reallocated to the new segments on a relative fair value basis. On March 31, 2019, the Consumer Bank was allocated goodwill in the amount of $1.6 billion and the Commercial Bank was allocated goodwill in the amount of $912 million. The following is a description of the segments and their primary businesses at December 31, 2019. Consumer Bank The Consumer Bank serves individuals and small businesses throughout our 15-state branch footprint by offering a variety of deposit and investment products, personal finance and financial wellness services, lending, mortgage and home equity, student loan refinancing, credit card, treasury services, and business advisory services. The Consumer Bank also purchases retail auto sales contracts via a network of auto dealerships. The auto dealerships finance the sale of automobiles as the initial lender and then assign the contracts to us pursuant to dealer agreements. In addition, wealth management and investment services are offered to assist institutional, non-profit, and high-net-worth clients with their banking, trust, portfolio management, charitable giving, and related needs. Commercial Bank The Commercial Bank is an aggregation of our Institutional and Commercial operating segments. The Commercial operating segment is a full-service corporate bank focused principally on serving the needs of middle market clients in seven industry sectors: consumer, energy, healthcare, industrial, public sector, real estate, and technology. The Commercial operating segment is also a significant servicer of commercial mortgage loans and a significant special servicer of CMBS. The Institutional operating segment delivers a broad suite of banking and capital markets products to its clients, including syndicated finance, debt and equity capital markets, commercial payments, equipment finance, commercial mortgage banking, derivatives, foreign exchange, financial advisory, and public finance. Other Other includes various corporate treasury activities such as management of our investment securities portfolio, long-term debt, short-term liquidity and funding activities, and balance sheet risk management, our principal investing unit, and various exit portfolios as well as reconciling items, which primarily represent the unallocated portion of nonearning assets of corporate support functions. Charges related to the funding of these assets are part of net interest income and are allocated to the business segments through noninterest expense. Reconciling items also include intercompany eliminations and certain items that are not allocated to the business segments because they do not reflect their normal operations. The table on the following page shows selected financial data for our major business segments for the years ended December 31, 2019, 2018, and 2017. The information was derived from the internal financial reporting system that we use to monitor and manage our financial performance. GAAP guides financial accounting, but there is no authoritative guidance for “management accounting” — the way we use our judgment and experience to make reporting decisions. Consequently, the line of business results we report may not be comparable to line of business results presented by other companies. The selected financial data is based on internal accounting policies designed to compile results on a consistent basis and in a manner that reflects the underlying economics of the businesses. In accordance with our policies:
• | Net interest income is determined by assigning a standard cost for funds used or a standard credit for funds provided based on their assumed maturity, prepayment, and/or repricing characteristics.
• | Indirect expenses, such as computer servicing costs and corporate overhead, are allocated based on assumptions regarding the extent that each line of business actually uses the services.
• | The consolidated provision for credit losses is allocated among the lines of business primarily based on their actual net loan charge-offs, adjusted periodically for loan growth and changes in risk profile. The amount of the consolidated provision is based on the methodology that we use to estimate our consolidated ALLL. This methodology is described in Note 1 (“Summary of Significant Accounting Policies”) under the heading “Allowance for Loan and Lease Losses.”
• | Income taxes are allocated based on the 2019 statutory federal income tax rate of 21% and a blended state income tax rate (net of the federal income tax benefit) of 2.7%. Prior to 2018, income taxes were allocated based on the previous statutory federal income tax rate of 35% and a blended state income tax rate (net of the federal income tax benefit) of 2.2%.
• | Capital is assigned to each line of business based on economic equity.
Developing and applying the methodologies that we use to allocate items among our lines of business is a dynamic process. Accordingly, financial results may be revised periodically to reflect enhanced alignment of expense base allocation drivers, changes in the risk profile of a particular business, or changes in our organizational structure.
Year ended December 31, | Consumer Bank |  | Commercial Bank
dollars in millions | 2019 | 2018 | 2017 |  | 2019 | 2018 | 2017
SUMMARY OF OPERATIONS |  |  |  |  |  |  |
Net interest income (TE) | $ | 2,366 |  | $ | 2,306 |  | $ | 2,133 |  |  | $ | 1,621 |  | $ | 1,657 |  | $ | 1,708 |
Noninterest income | 922 |  | 915 |  | 976 |  |  | 1,390 |  | 1,328 |  | 1,272 |
Total revenue (TE) (a) | 3,288 |  | 3,221 |  | 3,109 |  |  | 3,011 |  | 2,985 |  | 2,980 |
Provision for credit losses | 188 |  | 147 |  | 145 |  |  | 118 |  | 102 |  | 84 |
Depreciation and amortization expense | 97 |  | 103 |  | 108 |  |  | 135 |  | 139 |  | 103 |
Other noninterest expense | 2,078 |  | 2,143 |  | 2,167 |  |  | 1,388 |  | 1,430 |  | 1,393 |
Income (loss) from continuing operations before income taxes (TE) | 925 |  | 828 |  | 689 |  |  | 1,370 |  | 1,314 |  | 1,400 |
Allocated income taxes (benefit) and TE adjustments | 219 |  | 196 |  | 255 |  |  | 223 |  | 207 |  | 373 |
Income (loss) from continuing operations | 706 |  | 632 |  | 434 |  |  | 1,147 |  | 1,107 |  | 1,027 |
Income (loss) from discontinued operations, net of taxes | — |  | — |  | — |  |  | — |  | — |  | — |
Net income (loss) | 706 |  | 632 |  | 434 |  |  | 1,147 |  | 1,107 |  | 1,027 |
Less: Net income (loss) attributable to noncontrolling interests | — |  | — |  | — |  |  | — |  | — |  | — |
Net income (loss) attributable to Key | $ | 706 |  | $ | 632 |  | $ | 434 |  |  | $ | 1,147 |  | $ | 1,107 |  | $ | 1,027 |
AVERAGE BALANCES (b) |  |  |  |  |  |  |
Loans and leases | $ | 32,536 |  | $ | 31,307 |  | $ | 32,092 |  |  | $ | 57,988 |  | $ | 55,828 |  | $ | 52,783 |
Total assets (a) | 36,096 |  | 34,523 |  | 35,360 |  |  | 66,122 |  | 63,684 |  | 59,956 |
Deposits | 72,544 |  | 68,821 |  | 66,711 |  |  | 36,212 |  | 33,675 |  | 33,781 |
OTHER FINANCIAL DATA |  |  |  |  |  |  |
Expenditures for additions to long-lived assets (a), (b) | $ | 150 |  | $ | (38 | ) | $ | 90 |  |  | $ | (8 | ) | $ | (17 | ) | $ | 69 |
Net loan charge-offs (b) | 157 |  | 149 |  | 152 |  |  | 128 |  | 85 |  | 55 |
Return on average allocated equity (b) | 21.30 | % | 19.24 | % | 13.19 | % |  | 24.99 | % | 24.94 | % | 23.91 | %
Return on average allocated equity | 21.30 |  | 19.24 |  | 13.19 |  |  | 24.99 |  | 24.94 |  | 23.91 |
Average full-time equivalent employees (c) | 9,292 |  | 9,957 |  | 9,990 |  |  | 2,232 |  | 2,449 |  | 2,331 |
Year ended December 31, | Other |  | Key
dollars in millions | 2019 |  | 2018 | 2017 |  | 2019 | 2018 | 2017
SUMMARY OF OPERATIONS |  |  |  |  |  |  |  |
Net interest income (TE) | $ | (46 | ) |  | $ | (23 | ) | $ | (11 | ) |  | $ | 3,941 |  | $ | 3,940 |  | $ | 3,830 |
Noninterest income | 147 |  |  | 272 |  | 230 |  |  | 2,459 |  | 2,515 |  | 2,478 |
Total revenue (TE) (a) | 101 |  |  | 249 |  | 219 |  |  | 6,400 |  | 6,455 |  | 6,308 |
Provision for credit losses | 139 |  |  | (3 | ) | — |  |  | 445 |  | 246 |  | 229 |
Depreciation and amortization expense | 142 |  |  | 158 |  | 173 |  |  | 374 |  | 400 |  | 384 |
Other noninterest expense | 61 |  |  | 2 |  | 154 |  |  | 3,527 |  | 3,575 |  | 3,714 |
Income (loss) from continuing operations before income taxes (TE) | (241 | ) |  | 92 |  | (108 | ) |  | 2,054 |  | 2,234 |  | 1,981 |
Allocated income taxes (benefit) and TE adjustments | (96 | ) |  | (28 | ) | 62 |  |  | 346 |  | 375 |  | 690 |
Income (loss) from continuing operations | (145 | ) |  | 120 |  | (170 | ) |  | 1,708 |  | 1,859 |  | 1,291 |
Income (loss) from discontinued operations, net of taxes | 9 |  |  | 7 |  | 7 |  |  | 9 |  | 7 |  | 7 |
Net income (loss) | (136 | ) |  | 127 |  | (163 | ) |  | 1,717 |  | 1,866 |  | 1,298 |
Less: Net income (loss) attributable to noncontrolling interests | — |  |  | — |  | 2 |  |  | — |  | — |  | 2 |
Net income (loss) attributable to Key | $ | (136 | ) | (d) | $ | 127 |  | $ | (165 | ) |  | $ | 1,717 |  | $ | 1,866 |  | $ | 1,296 |
AVERAGE BALANCES (b) |  |  |  |  |  |  |  |
Loans and leases | $ | 987 |  |  | $ | 1,203 |  | $ | 1,490 |  |  | $ | 91,511 |  | $ | 88,338 |  | $ | 86,365 |
Total assets (a) | 40,961 |  |  | 38,605 |  | 38,403 |  |  | 143,179 |  | 136,812 |  | 133,719 |
Deposits | 1,274 |  |  | 2,555 |  | 2,454 |  |  | 110,030 |  | 105,051 |  | 102,946 |
OTHER FINANCIAL DATA |  |  |  |  |  |  |  |
Expenditures for additions to long-lived assets (a), (b) | $ | 103 |  |  | $ | 103 |  | $ | 108 |  |  | $ | 245 |  | $ | 48 |  | $ | 267 |
Net loan charge-offs (b) | 139 |  |  | — |  | 1 |  |  | 424 |  | 234 |  | 208 |
Return on average allocated equity (b) | (1.66 | )% |  | 1.62 | % | (2.25 | )% |  | 10.27 | % | 12.29 | % | 8.47 | %
Return on average allocated equity | (1.56 | ) |  | 1.71 |  | (2.16 | ) |  | 10.32 |  | 12.33 |  | 8.51 |
Average full-time equivalent employees (c) | 5,521 |  |  | 5,774 |  | 6,094 |  |  | 17,045 |  | 18,180 |  | 18,415 |
(a) | Substantially all revenue generated by our major business segments is derived from clients that reside in the United States. Substantially all long-lived assets, including premises and equipment, capitalized software, and goodwill held by our major business segments, are located in the United States.
(b) | From continuing operations.
(c) | The number of average full-time equivalent employees was not adjusted for discontinued operations.
(d) Other segments included $106 million provision for credit loss, net of tax, related to a previously disclosed fraud incident.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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