Core Insights - KeyBank has been recognized as one of the 50 most community-minded companies in America for the twelfth time in 2025, highlighting its consistent high performance over the program's 13-year history [1][3] - KeyBank has also been named the Financials Sector Leader for the eighth consecutive year, showcasing its leadership in community engagement within the financial sector [3] Community Engagement and Social Impact - The recognition is based on four dimensions: investment of resources, integration across business functions, institutionalization through policies and systems, and impact measurement [2] - KeyBank has invested over $50 billion in community initiatives since 2017, focusing on affordable housing, small business and home lending, and transformative philanthropy [4] Company Overview - KeyCorp is celebrating its bicentennial in 2025, marking 200 years of service across the United States, with assets totaling approximately $189 billion as of March 31, 2025 [5] - KeyBank operates approximately 1,000 branches and 1,200 ATMs, providing a range of financial services including deposit, lending, cash management, and investment services [6] Philanthropic Efforts - The KeyBank Foundation is a nonprofit organization that supports initiatives aimed at improving financial wellness, education, and community development, emphasizing strategic philanthropy to create thriving communities [7]

Core Viewpoint - KeyCorp is set to present at the Morgan Stanley U.S. Financials Conference on June 11, 2025, focusing on its performance, strategy, and outlook [1][2]. Company Overview - KeyCorp is celebrating its bicentennial in 2025, marking 200 years of service across the United States [3]. - The company is headquartered in Cleveland, Ohio, and is one of the largest bank-based financial services companies in the nation, with assets totaling approximately $189 billion as of March 31, 2025 [3]. - KeyCorp operates under the name KeyBank National Association, providing a range of services including deposit, lending, cash management, and investment services across 15 states through about 1,000 branches and 1,200 ATMs [4]. Services Offered - KeyCorp offers sophisticated corporate and investment banking products, including merger and acquisition advice, public and private debt and equity, syndications, and derivatives, primarily targeting middle market companies in selected industries throughout the U.S. under the KeyBanc Capital Markets brand [4].

Group 1 - KeyBank has announced a strategic partnership with Qolo, marking a significant step in its decade-long strategy of investing in fintech providers [1][3] - The partnership includes a minority investment in Qolo, which is expected to enhance banking innovation and drive transformative solutions [1][3] - KeyVAM®, a technology-enabled cash management solution powered by Qolo, has processed nearly $9 billion in transactions since its launch, showcasing its success and impact in the market [2][3] Group 2 - KeyVAM® offers features such as automated reporting, reconciliation, and customizable virtual account structures, aimed at improving client experiences [2][3] - The collaboration between KeyBank and Qolo is focused on empowering businesses and financial institutions through technology, reinforcing their commitment to innovation in the banking industry [3][4] - KeyBank, with approximately $189 billion in assets as of March 31, 2025, operates a network of around 1,000 branches and 1,200 ATMs across 15 states [4][5]

Financial Data and Key Metrics Changes - The company reported a record first quarter in its investment banking segment, with expectations of a 10% year-over-year increase for the first half of the year [10] - The average FICO score of consumers at booking is 790, indicating strong consumer health [6] - Non-interest bearing accounts for retail customers are 26% above pre-COVID levels [7] - The company expects a 20% increase in net interest income (NII) for the year, with half attributed to balance sheet restructuring [47][49] Business Line Data and Key Metrics Changes - The commercial banking segment has seen double-digit growth over the past four years, with 90% of deposits tied to operating accounts [8] - C&I loans increased by approximately $1.5 billion in the first quarter, with similar growth expected in the second quarter [12] - The wealth management business has $61 billion in assets under management (AUM) [7] Market Data and Key Metrics Changes - The company has about $74 billion in C&I loans, with an estimated $1.5 billion potentially impacted by tariffs [18] - The company has a strong presence in mature markets with affluent demographics, which supports its consumer banking strategy [36] Company Strategy and Development Direction - The company has focused on targeted scale and has exited non-core businesses, such as indirect auto loans and vendor finance [32][33] - KeyCorp is concentrating on asset-light businesses, including investment banking and mass affluent wealth management [30] - The company aims to enhance its payments business by providing integrated solutions for middle-market companies [44] Management's Comments on Operating Environment and Future Outlook - Management believes the U.S. economy is not heading into a recession and may even be accelerating [21] - There is optimism regarding loan growth and the overall business environment despite uncertainties related to tariffs and geopolitical events [12][20] - The company is well-capitalized and has significant liquidity, positioning it favorably for future growth [26][46] Other Important Information - The company has a strategic minority investment from Scotiabank, which has enhanced its capital base and growth potential [46] - Management is focused on maintaining a balance between organic growth, dividends, and share repurchases, with a preference for share buybacks given the current stock valuation [91][92] Q&A Session Summary Question: How does KeyCorp view the current economic environment? - Management expressed confidence in the strength of their consumer base and the overall economy, noting that clients are in a strong position despite uncertainties [6][21] Question: What are the key growth areas for KeyCorp? - KeyCorp is focusing on its consumer banking, investment banking, and payments business as primary growth areas [30][34] Question: How does KeyCorp plan to utilize its excess capital? - The company plans to support client growth, invest in technology and people, and consider share repurchases rather than increasing dividends [88][91] Question: What is the outlook for loan growth and credit risk? - Management is optimistic about loan growth and believes that their customer base is solid enough to handle potential economic challenges [12][84]

Group 1 - KeyCorp plans to host conference calls to review quarterly financial results on specific dates in 2026, with results released before market opens [1][4] - KeyCorp is celebrating its bicentennial in 2025, marking 200 years of service, and has assets of approximately $189 billion as of March 31, 2025 [2] - KeyCorp operates under the name KeyBank National Association, providing a range of financial services through approximately 1,000 branches and 1,200 ATMs across 15 states [3] Group 2 - KeyCorp offers sophisticated corporate and investment banking products, including merger and acquisition advice, public and private debt and equity, syndications, and derivatives [3]

CLEVELAND, May 9, 2025 /PRNewswire/ -- Key Family Wealth, the multi-family office division of Key Wealth, was named "Best Family Wealth Solution" for its enhanced legacy planning services at the 2025 Family Wealth Report (FWR) awards. Cathy O'Malley Kearney, national head of Key Private Bank, was also recognized with a leadership award, 'Woman in Wealth Banking' for her leadership in the wealth management industry.The annual FWR awards recognizes the most innovative and exceptional firms, teams and individu ...

PART I. FINANCIAL INFORMATION This section provides KeyCorp's comprehensive financial information, including statements, management's analysis, market risk, and controls [Item 1. Financial Statements](index=48&type=section&id=Item%201.%20Financial%20Statements) This section presents KeyCorp's unaudited consolidated financial statements for the quarter ended March 31, 2025, including balance sheets, income statements, comprehensive income, equity, cash flows, and detailed notes [Consolidated Balance Sheets](index=53&type=section&id=Consolidated%20Balance%20Sheets) This section details KeyCorp's consolidated balance sheets as of March 31, 2025, and December 31, 2024, outlining assets, liabilities, and equity Consolidated Balance Sheet (March 31, 2025 vs. December 31, 2024) | | March 31, 2025 (Millions USD) | December 31, 2024 (Millions USD) | |:---|:---|:---| | **ASSETS** ||| | Cash and due from banks | $1,909 | $1,743 | | Short-term investments | $15,349 | $17,504 | | Trading account assets | $1,296 | $1,283 | | Securities available for sale | $40,751 | $37,707 | | Held-to-maturity securities | $7,160 | $7,395 | | Other investments | $1,050 | $1,041 | | Loans, net of unearned income | $104,809 | $104,260 | | Less: Allowance for loan and lease losses | $(1,429) | $(1,409) | | Net loans | $103,380 | $102,851 | | Loans held for sale | $811 | $797 | | Premises and equipment | $602 | $614 | | Goodwill | $2,752 | $2,752 | | Other intangible assets | $22 | $27 | | Corporate-owned life insurance | $4,404 | $4,394 | | Accrued income and other assets | $8,958 | $8,797 | | Discontinued assets | $247 | $263 | | **Total assets** | **$188,691** | **$187,168** | | **LIABILITIES** ||| | Interest-bearing deposits | $122,283 | $120,132 | | Noninterest-bearing deposits | $28,454 | $29,628 | | Total deposits | $150,737 | $149,760 | | Federal funds purchased and securities sold under repurchase agreements | $22 | $14 | | Bank notes and other short-term borrowings | $2,328 | $2,130 | | Accrued expense and other liabilities | $4,209 | $4,983 | | Long-term debt | $12,392 | $12,105 | | **Total liabilities** | **$169,688** | **$168,992** | | **EQUITY** ||| | Preferred stock | $2,500 | $2,500 | | Common Shares, $1 par value | $1,257 | $1,257 | | Capital surplus | $5,946 | $6,038 | | Retained earnings | $14,724 | $14,584 | | Treasury stock, at cost | $(2,637) | $(2,733) | | Accumulated other comprehensive income (loss) | $(2,787) | $(3,470) | | **Total equity** | **$19,003** | **$18,176** | | **Total liabilities and equity** | **$188,691** | **$187,168** | [Consolidated Statements of Income](index=54&type=section&id=Consolidated%20Statements%20of%20Income) This section presents KeyCorp's consolidated statements of income for the three months ended March 31, 2025 and 2024, detailing revenue, expenses, and net income Consolidated Statements of Income (Three Months Ended March 31, 2025 vs. 2024) | | 2025 (Millions USD) | 2024 (Millions USD) | |:---|:---|:---|\n| **INTEREST INCOME** ||| | Loans | $1,401 | $1,538 | | Loans held for sale | $14 | $14 | | Securities available for sale | $392 | $232 | | Held-to-maturity securities | $63 | $75 | | Trading account assets | $17 | $14 | | Short-term investments | $174 | $142 | | Other investments | $9 | $17 | | **Total interest income** | **$2,070** | **$2,032** | | **INTEREST EXPENSE** ||| | Deposits | $753 | $782 | | Federal funds purchased and securities sold under repurchase agreements | $1 | $1 | | Bank notes and other short-term borrowings | $27 | $46 | | Long-term debt | $193 | $328 | | **Total interest expense** | **$974** | **$1,157** | | **NET INTEREST INCOME** | **$1,096** | **$875** | | Provision for credit losses | $118 | $101 | | Net interest income after provision for credit losses | $978 | $774 | | **NONINTEREST INCOME** ||| | Trust and investment services income | $139 | $136 | | Investment banking and debt placement fees | $175 | $170 | | Cards and payments income | $82 | $77 | | Service charges on deposit accounts | $69 | $63 | | Corporate services income | $65 | $69 | | Commercial mortgage servicing fees | $76 | $56 | | Corporate-owned life insurance income | $33 | $32 | | Consumer mortgage income | $13 | $14 | | Operating lease income and other leasing gains | $9 | $24 | | Other income | $7 | $9 | | Net securities gains (losses) | $0 | $(3) | | **Total noninterest income** | **$668** | **$647** | | **NONINTEREST EXPENSE** ||| | Personnel | $680 | $674 | | Net occupancy | $67 | $67 | | Computer processing | $107 | $102 | | Business services and professional fees | $40 | $41 | | Equipment | $20 | $20 | | Operating lease expense | $11 | $17 | | Marketing | $21 | $19 | | Other expense | $185 | $203 | | **Total noninterest expense** | **$1,131** | **$1,143** | | **INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES** | **$515** | **$278** | | Income taxes | $109 | $59 | | **INCOME (LOSS) FROM CONTINUING OPERATIONS** | **$406** | **$219** | | Income (loss) from discontinued operations | $(1) | $0 | | **NET INCOME (LOSS)** | **$405** | **$219** | | Income (loss) from continuing operations attributable to Key common shareholders | $370 | $183 | | Net income (loss) attributable to Key common shareholders | $369 | $183 | | **Per Common Share:** ||| | Income (loss) from continuing operations attributable to Key common shareholders | $0.34 | $0.20 | | Net income (loss) attributable to Key common shareholders | $0.34 | $0.20 | | **Per Common Share — assuming dilution:** ||| | Income (loss) from continuing operations attributable to Key common shareholders | $0.33 | $0.20 | | Net income (loss) attributable to Key common shareholders | $0.33 | $0.20 | | Weighted-average Common Shares outstanding (000) | 1,096,654 | 929,692 | | Weighted-average Common Shares and potential Common Shares outstanding (000) | 1,106,140 | 937,011 | [Consolidated Statements of Comprehensive Income](index=55&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) This section outlines KeyCorp's consolidated statements of comprehensive income for the three months ended March 31, 2025 and 2024, including net income and other comprehensive income components Consolidated Statements of Comprehensive Income (Three Months Ended March 31, 2025 vs. 2024) | | 2025 (Millions USD) | 2024 (Millions USD) | |:---|:---|:---|\n| Net income (loss) | $405 | $219 | | **Other comprehensive income (loss), net of tax:** ||| | Net unrealized gains (losses) on securities available for sale | $424 | $(151) | | Net unrealized gains (losses) on derivative financial instruments | $193 | $65 | | Net pension and postretirement benefit costs | $66 | $1 | | **Total other comprehensive income (loss), net of tax** | **$683** | **$(85)** | | **Comprehensive income (loss) attributable to Key** | **$1,088** | **$134** | [Consolidated Statements of Changes in Equity](index=56&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Equity) This section presents KeyCorp's consolidated statements of changes in equity for the three months ended March 31, 2025 and 2024, detailing movements in shareholders' equity Changes in Key Shareholders' Equity (Three Months Ended March 31, 2025 vs. 2024) | | March 31, 2025 (Millions USD) | March 31, 2024 (Millions USD) | |:---|:---|:---|\n| Balance at December 31, prior year | $18,176 | $14,637 | | Net income (loss) | $405 | $219 | | Other comprehensive income (loss) | $683 | $(85) | | Deferred compensation | $(1) | $(4) | | Cash dividends declared (Common Shares) | $(229) | $(193) | | Cash dividends declared (Preferred Stock) | $(36) | $(36) | | Employee equity compensation program Common Share repurchases | $(35) | $(26) | | Common Shares reissued (returned) for stock options and other employee benefit plans | $40 | $35 | | Balance at March 31, current year | $19,003 | $14,547 | [Consolidated Statements of Cash Flows](index=57&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) This section details KeyCorp's consolidated statements of cash flows for the three months ended March 31, 2025 and 2024, categorizing cash movements by operating, investing, and financing activities Consolidated Statements of Cash Flows (Three Months Ended March 31, 2025 vs. 2024) | | 2025 (Millions USD) | 2024 (Millions USD) | |:---|:---|:---|\n| **OPERATING ACTIVITIES** ||| | Net income (loss) | $405 | $219 | | Provision for credit losses | $118 | $101 | | Proceeds from sales of loans held for sale | $1,725 | $1,920 | | Originations of loans held for sale, net of repayments | $(1,702) | $(1,742) | | Net change in accrued expense and other liabilities | $(792) | $(404) | | **NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES** | **$(140)** | **$359** | | **INVESTING ACTIVITIES** ||| | Net decrease (increase) in short-term investments | $2,155 | $(2,388) | | Purchases of securities available for sale | $(3,970) | $(1,465) | | Proceeds from sales of securities available for sale | $0 | $637 | | Net decrease (increase) in loans, excluding acquisitions, sales and transfers | $(679) | $2,613 | | **NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES** | **$(711)** | **$374** | | **FINANCING ACTIVITIES** ||| | Net increase (decrease) in deposits | $977 | $(1,356) | | Net increase (decrease) in short-term borrowings | $206 | $(168) | | Net proceeds from issuance of long-term debt | $833 | $1,350 | | Payments on long-term debt | $(701) | $(1) | | Cash dividends paid | $(265) | $(229) | | **NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES** | **$1,017** | **$(427)** | | **NET INCREASE (DECREASE) IN CASH AND DUE FROM BANKS** | **$166** | **$306** | | Cash and due from banks at end of period | $1,909 | $1,247 | [Notes to Consolidated Financial Statements (Unaudited)](index=58&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements%20(Unaudited)) This section provides detailed notes to KeyCorp's unaudited consolidated financial statements, explaining accounting policies, estimates, and specific financial disclosures - KeyCorp reported net income from continuing operations attributable to common shareholders of **$370 million**, or diluted EPS of **$0.33**, for Q1 2025[20](index=20&type=chunk) FY2025 Business Outlook (vs. FY2024) | Category | FY2025 (vs FY 2024) | |:---|:---|\n| Average loans | down 2% to 5% | | Ending loans | Flat vs YE 2024 | | PE Commercial Loans | up 2% to 4% | | Net interest income (TE) | up ~20% | | Adjusted noninterest income | up 5%+ | | Adjusted noninterest expense | up 3% to 5% | | Net charge-offs to average loans | 40 to 45 basis points | | Effective tax rate | ~21% to 22% | | Tax-equivalent Effective Rate | ~23% to 24% | - Common Equity Tier 1 ratio reached **11.8%** at March 31, 2025, an increase of approximately 150 basis points year-over-year, positioning the company to support clients and execute capital priorities[25](index=25&type=chunk) Consolidated Balance Sheet Highlights (March 31, 2025 vs. December 31, 2024) | Metric | March 31, 2025 (Millions USD) | December 31, 2024 (Millions USD) | |:---|:---|:---|\n| Total Assets | $188,691 | $187,168 | | Net Loans | $103,380 | $102,851 | | Total Deposits | $150,737 | $149,760 | | Total Liabilities | $169,688 | $168,992 | | Total Equity | $19,003 | $18,176 | Consolidated Statements of Income Highlights (Three Months Ended March 31, 2025 vs. 2024) | Metric | March 31, 2025 (Millions USD) | March 31, 2024 (Millions USD) | |:---|:---|:---|\n| Total Interest Income | $2,070 | $2,032 | | Total Interest Expense | $974 | $1,157 | | Net Interest Income | $1,096 | $875 | | Provision for Credit Losses | $118 | $101 | | Total Noninterest Income | $668 | $647 | | Total Noninterest Expense | $1,131 | $1,143 | | Income from Continuing Operations Before Income Taxes | $515 | $278 | | Income Taxes | $109 | $59 | | Net Income (Loss) | $405 | $219 | | Diluted EPS from Continuing Operations | $0.33 | $0.20 | Consolidated Statements of Cash Flows Highlights (Three Months Ended March 31, 2025 vs. 2024) | Metric | March 31, 2025 (Millions USD) | March 31, 2024 (Millions USD) | |:---|:---|:---|\n| Net Cash Provided by (Used in) Operating Activities | $(140) | $359 | | Net Cash Provided by (Used in) Investing Activities | $(711) | $374 | | Net Cash Provided by (Used in) Financing Activities | $1,017 | $(427) | | Net Increase (Decrease) in Cash and Due From Banks | $166 | $306 | | Cash and Due From Banks at End of Period | $1,909 | $1,247 | [Item 2. Management's Discussion & Analysis of Financial Condition & Results of Operations](index=5&type=section&id=Item%202.%20Management's%20Discussion%20%26%20Analysis%20of%20Financial%20Condition%20%26%20Results%20of%20Operations) This section provides a comprehensive review of KeyCorp's financial condition and results of operations for Q1 2025, covering executive overview, business outlook, regulatory landscape, detailed financial analysis, segment performance, and risk management [Introduction](index=5&type=section&id=Introduction) This section introduces the review of KeyCorp's financial condition and results of operations for the first quarter of 2025, referencing consolidated financial statements - This section reviews KeyCorp's financial condition and results of operations for the quarterly periods ended March 31, 2025, and March 31, 2024, referencing consolidated financial statements and the 2024 Form 10-K[10](index=10&type=chunk)[11](index=11&type=chunk) [Terminology](index=5&type=section&id=Terminology) This section defines key terms and references used throughout the report for clarity and consistency in financial reporting - KeyCorp uses 'Key,' 'we,' 'our,' 'us' to refer to the consolidated entity, 'KeyCorp' for the parent holding company, and 'KeyBank' for its subsidiary bank. Key terms like 'continuing operations,' 'capital markets activities,' and 'Tier 1 capital' are defined for clarity[12](index=12&type=chunk)[13](index=13&type=chunk) [Forward-looking statements](index=6&type=section&id=Forward-looking%20statements) This section highlights that the report contains forward-looking statements subject to risks and uncertainties that may cause actual results to differ materially - The report contains forward-looking statements, which are subject to assumptions, risks, and uncertainties that could cause actual results to differ materially. Investors are advised to consider risks disclosed in the 2024 Form 10-K and subsequent SEC filings[16](index=16&type=chunk)[17](index=17&type=chunk)[18](index=18&type=chunk) [Executive overview](index=8&type=section&id=Executive%20overview) This section provides a high-level summary of KeyCorp's financial performance for Q1 2025, highlighting net income, client growth, and capital actions - KeyCorp reported **$370 million** in net income from continuing operations attributable to common shareholders, or diluted earnings per share of **$0.33**, for the first quarter of 2025[20](index=20&type=chunk) - KeyCorp's relationship-based business model led to a **4% YoY increase** in client deposits and **2% net new relationship household growth**[25](index=25&type=chunk) - Assets Under Management reached **$61.1 billion**, driven by new Key Private Client enrollments[25](index=25&type=chunk) - The Board of Directors authorized a **$1 billion** share repurchase program in Q1 2025, with purchases expected to commence in the second half of the year[25](index=25&type=chunk) [Business outlook](index=8&type=section&id=Business%20outlook) This section outlines KeyCorp's financial projections and strategic expectations for fiscal year 2025 across key performance indicators FY2025 Business Outlook (vs. FY2024) | Category | FY2025 (vs FY 2024) | |:---|:---|\n| Average loans | down 2% to 5% | | Ending loans | Flat vs YE 2024 | | PE Commercial Loans | up 2% to 4% | | Net interest income (TE) | up ~20% | | Adjusted noninterest income | up 5%+ | | Adjusted noninterest expense | up 3% to 5% | | Net charge-offs to average loans | 40 to 45 basis points | | Effective tax rate | ~21% to 22% | | Tax-equivalent Effective Rate | ~23% to 24% | [Demographics](index=8&type=section&id=Demographics) This section describes the customer segments and service offerings of KeyCorp's Consumer and Commercial Banks, highlighting their respective market focuses - The Consumer Bank serves individuals and small businesses across a 15-state branch footprint and through the Laurel Road digital brand, offering diverse deposit, investment, lending, and wealth management services[23](index=23&type=chunk) - The Commercial Bank, comprising Commercial and Institutional operating segments, provides full-service banking, cash management, capital markets, lending, and equipment financing to middle market, large corporate, and institutional clients, with specialized industry expertise[24](index=24&type=chunk)[26](index=26&type=chunk) [Supervision and regulation](index=9&type=section&id=Supervision%20and%20regulation) This section details KeyCorp's regulatory capital ratios, compliance status, and the impact of recent regulatory developments, including stress tests and special assessments KeyCorp Minimum Capital Ratios and Actual Ratios (March 31, 2025) | Ratios (including stress capital buffer) | Regulatory Minimum Stress | KeyCorp March 31, 2025 (c) | |:---|:---|:---|\n| Common Equity Tier 1 | 7.60 % | 11.78 % | | Tier 1 Capital | 9.10 % | 13.52 % | | Total Capital | 11.10 % | 15.96 % | | Leverage (a) | 4.00 % | 10.15 % | - KeyBank (consolidated) is considered '**well capitalized**' under the revised Prompt Corrective Action framework as of March 31, 2025[33](index=33&type=chunk) - KeyCorp's updated stress capital buffer is **3.1%**, effective October 1, 2024, following the Federal Reserve's supervisory stress test results[35](index=35&type=chunk) - The FDIC imposed a special assessment on insured depository institutions, with an initial impact of approximately **$190 million** in pre-tax expense for KeyCorp, recognized in Q4 2023, to recover losses from the SVB and Signature Bank failures[41](index=41&type=chunk)[42](index=42&type=chunk) [Results of Operations](index=13&type=section&id=Results%20of%20Operations) This section analyzes KeyCorp's financial performance for Q1 2025, focusing on net interest income, credit losses, noninterest income, noninterest expense, and income taxes Net Income Reconciliation (Q1 2025 vs. Q1 2024) | | Three months ended March 31, 2024 (Millions USD) | Change (Millions USD) | Three months ended March 31, 2025 (Millions USD) | |:---|:---|:---|:---|\n| Net interest income (TE) | $886 | $219 | $1,105 | | Provision for credit losses | $101 | $17 | $118 | | Noninterest income | $647 | $21 | $668 | | Noninterest expense | $1,143 | $(12) | $1,131 | | Income taxes | $59 | $50 | $109 | | Net income from continuing operations attributable to Key common shareholders | $183 | $187 | $370 | [Business Segment Results](index=21&type=section&id=Business%20Segment%20Results) This section provides a breakdown of KeyCorp's net income by business segment, including Consumer Bank, Commercial Bank, and Other, for Q1 2025 and Q1 2024 Business Segment Net Income (Q1 2025 vs. Q1 2024) | Segment | Q1 2025 Net Income (Millions USD) | Q1 2024 Net Income (Millions USD) | |:---|:---|:---|\n| Consumer Bank | $118 | $41 | | Commercial Bank | $321 | $205 | | Other | $(34) | $(27) | | Total Net Income | $405 | $219 | [Financial Condition](index=25&type=section&id=Financial%20Condition) This section examines KeyCorp's financial position, including detailed analysis of loans, securities portfolio, deposits, and capital ratios as of March 31, 2025 Total Loans Outstanding (March 31, 2025 vs. December 31, 2024) | Loan Type | March 31, 2025 (Billions USD) | December 31, 2024 (Billions USD) | |:---|:---|:---|\n| Commercial Loans | $73.1 | $71.9 | | Consumer Loans | $31.7 | $32.4 | | Total Loans | $104.8 | $104.3 | Securities Portfolio (March 31, 2025 vs. December 31, 2024) | Security Type | March 31, 2025 (Billions USD) | December 31, 2024 (Billions USD) | |:---|:---|:---|\n| Available-for-sale securities | $40.8 | $37.7 | | Held-to-maturity securities | $7.2 | $7.4 | | Total Securities Portfolio | $47.9 | $45.1 | Deposits Breakdown (March 31, 2025 vs. December 31, 2024) | Deposit Type | March 31, 2025 (Billions USD) | December 31, 2024 (Billions USD) | |:---|:---|:---|\n| Money market deposits | $43.9 | $41.0 | | Demand deposits | $57.6 | $57.6 | | Savings deposits | $4.7 | $4.6 | | Time deposits | $16.2 | $17.0 | | Noninterest bearing deposits | $28.5 | $29.6 | | Total Deposits | $150.7 | $149.8 | Capital Ratios (March 31, 2025 vs. December 31, 2024) | Capital Ratio | March 31, 2025 | December 31, 2024 | |:---|:---|:---|\n| Tier 1 risk-based capital | 13.52 % | 13.69 % | | Total risk-based capital | 15.96 % | 16.15 % | | Leverage | 10.15 % | 10.03 % | | Common Equity Tier 1 | 11.78 % | 11.92 % | [Risk Management](index=36&type=section&id=Risk%20Management) This section details KeyCorp's comprehensive approach to identifying, measuring, and managing various risks, including credit, market, liquidity, and operational risks - KeyCorp's risk management focuses on identifying, measuring, and managing credit, compliance, operational, liquidity, market, reputation, strategic, and model risks across the enterprise[174](index=174&type=chunk) Simulated Change in Net Interest Income (March 31, 2025 vs. 2024) | Basis point change assumption | March 31, 2025 | March 31, 2024 | |:---|:---|:---|\n| -200 bp | (0.39)% | (1.21)% | | +200 bp | 1.41 % | (0.76)% | | Tolerance level | (5.50)% | (5.50)% | Available Contingent Liquidity (March 31, 2025 vs. December 31, 2024) | | March 31, 2025 (Billions USD) | December 31, 2024 (Billions USD) | |:---|:---|:---|\n| Unpledged securities | $27.4 | $25.5 | | Net balances of federal funds sold and balances in our Federal Reserve account | $15.3 | $17.4 | | Unused secured borrowing capacity at the Federal Reserve Bank of Cleveland | $38.4 | $36.7 | | Unused secured borrowing capacity at the FHLB | $18.7 | $18.9 | | Total | $99.8 | $98.5 | Net Loan Charge-offs (Q1 2025 vs. Q1 2024) | | Q1 2025 (Millions USD) | Q1 2024 (Millions USD) | |:---|:---|:---|\n| Commercial loans | $88 | $57 | | Consumer loans | $22 | $24 | | Total net loan charge-offs | $110 | $81 | | Net loan charge-offs to average loans | 0.43 % | 0.29 % | Nonperforming Assets (March 31, 2025 vs. December 31, 2024) | | March 31, 2025 (Millions USD) | December 31, 2024 (Millions USD) | |:---|:---|:---|\n| Commercial loans | $494 | $565 | | Consumer loans | $192 | $193 | | Total nonperforming loans | $686 | $758 | | OREO | $14 | $14 | | Total nonperforming assets | $700 | $772 | | Nonperforming loans to period-end portfolio loans | 0.65 % | 0.73 % | [GAAP to Non-GAAP Reconciliations](index=50&type=section&id=GAAP%20to%20Non-GAAP%20Reconciliations) This section provides reconciliations of KeyCorp's non-GAAP financial measures to their most directly comparable GAAP measures, ensuring transparency in reporting Tangible Common Equity to Tangible Assets Ratio (Period-End) | Metric | March 31, 2025 (Millions USD) | December 31, 2024 (Millions USD) | |:---|:---|:---|\n| Tangible common equity (non-GAAP) | $13,783 | $12,951 | | Total assets (GAAP) | $188,691 | $187,168 | | Less: Intangible assets | $2,774 | $2,779 | | Tangible assets (non-GAAP) | $185,917 | $184,389 | | Tangible common equity to tangible assets ratio (non-GAAP) | 7.4 % | 7.0 % | Adjusted Noninterest Expense and Income (Three Months Ended) | | March 31, 2025 (Millions USD) | December 31, 2024 (Millions USD) | |:---|:---|:---|\n| Noninterest expense (GAAP) | $1,131 | $1,229 | | FDIC special assessment (other expense) | $0 | $3 | | Adjusted noninterest expense (non-GAAP) | $1,131 | $1,232 | | Noninterest income (GAAP) | $668 | $(196) | | Loss on sale of securities for securities repositioning | $0 | $915 | | Scotiabank investment agreement valuation (other income) | $0 | $3 | | Adjusted noninterest income (non-GAAP) | $668 | $722 | [Critical Accounting Policies and Estimates](index=51&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) This section discusses KeyCorp's critical accounting policies and estimates, highlighting areas requiring significant judgment and potential impact on financial statements - KeyCorp's critical accounting policies involve significant judgment, assumptions, and estimates, particularly for the Allowance for Loan and Lease Losses (ALLL), contingent liabilities, guarantees, income taxes, derivatives, hedging activities, and asset/liability valuations[263](index=263&type=chunk)[264](index=264&type=chunk) - No significant alterations were made to the application of critical accounting policies or related assumptions/estimates during the three months ended March 31, 2025[264](index=264&type=chunk) [Accounting and Reporting Developments](index=52&type=section&id=Accounting%20and%20Reporting%20Developments) This section outlines recent accounting and reporting developments, including new accounting standards pending adoption and their potential impact on KeyCorp's financial disclosures Accounting Guidance Pending Adoption | Standard | Required Adoption | Description | Effect on Financial Statements or Other Significant Matters | |:---|:---|:---|:---|\n| ASU 2024-03 and ASU 2025-01 Income Statement — Reporting Comprehensive Income—Expense Disaggregation Disclosures (Topic 220-40) | January 1, 2027 | Requires public companies to disclose additional information about certain types of costs and expenses. | Not expected to have a material impact on Key's disclosures. | [Item 3. Quantitative and Qualitative Disclosure about Market Risk](index=100&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosure%20about%20Market%20Risk) This section incorporates by reference the detailed discussion on market risk management from the Management's Discussion & Analysis, covering trading and nontrading market risks, VaR analyses, and governance - The information regarding market risk management is incorporated by reference from the Management's Discussion & Analysis of Financial Condition & Results of Operations[485](index=485&type=chunk) [Item 4. Controls and Procedures](index=100&type=section&id=Item%204.%20Controls%20and%20Procedures) KeyCorp's management evaluated the effectiveness of disclosure controls and procedures as of March 31, 2025, concluding they were effective, with no material changes to internal control over financial reporting during the quarter - KeyCorp's disclosure controls and procedures were evaluated and deemed effective in all material respects as of March 31, 2025[486](index=486&type=chunk) - No changes materially affecting KeyCorp's internal control over financial reporting occurred during the last quarter[486](index=486&type=chunk) PART II. OTHER INFORMATION This section provides additional information beyond financial statements, including legal proceedings, risk factors, equity sales, other disclosures, and exhibits [Item 1. Legal Proceedings](index=100&type=section&id=Item%201.%20Legal%20Proceedings) KeyCorp is subject to various legal proceedings and investigations, but believes its established legal reserves are adequate and that these matters are not expected to materially adversely affect its financial condition - KeyCorp is involved in various legal proceedings, investigations, and administrative proceedings, which may involve substantial monetary relief[447](index=447&type=chunk) - Based on current information and counsel's advice, KeyCorp believes its established legal reserves are adequate and that these matters are not expected to have a material adverse effect on its financial condition[488](index=488&type=chunk) [Item 1A. Risk Factors](index=100&type=section&id=Item%201A.%20Risk%20Factors) This section directs readers to the comprehensive discussion of risk factors affecting KeyCorp, including those related to supervision and regulation, as detailed in the 2024 Form 10-K and forward-looking statements - For a discussion of risk factors, refer to the 'Supervision and Regulation' and 'Risk Factors' sections in the 2024 Form 10-K, as well as the forward-looking statements disclosure in this report[489](index=489&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=100&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) KeyCorp did not conduct open market share repurchases in Q1 2025 but authorized a **$1.0 billion** program for H2 2025, while repurchasing **$35 million** in shares for equity compensation - KeyCorp did not complete any open market share repurchases in the first quarter of 2025[491](index=491&type=chunk)[494](index=494&type=chunk) - A **$1.0 billion** share repurchase program was authorized by the Board of Directors on March 13, 2025, with purchases anticipated to begin in the second half of 2025[491](index=491&type=chunk) - KeyCorp repurchased **$35 million** of shares related to equity compensation programs during the first quarter of 2025[493](index=493&type=chunk) [Item 5. Other Information](index=101&type=section&id=Item%205.%20Other%20Information) KeyCorp does not permit Rule 10b5-1 trading arrangements by directors or executive officers, though some participate in compensation plans involving Common Shares that may satisfy or constitute non-Rule 10b5-1 arrangements - KeyCorp does not permit Rule 10b5-1 trading arrangements by its directors or executive officers[495](index=495&type=chunk) - Directors and officers participate in various compensation plans (e.g., Discounted Stock Purchase Plan, Long-Term Incentive Deferral Plan) that may involve transactions in Common Shares, potentially falling under Rule 10b5-1 or non-Rule 10b5-1 trading arrangements[496](index=496&type=chunk) [Item 6. Exhibits](index=102&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the 10-Q report, including certifications, subsidiary issuers, and XBRL financial statements, with KeyCorp's SEC filings available free on its website - KeyCorp provides its annual, quarterly, and current reports, along with amendments, free of charge on its website (www.key.com) after electronic filing with the SEC[498](index=498&type=chunk) - Exhibits include certifications from the CEO and CFO (Sections 302 and 906 of Sarbanes-Oxley Act), Subsidiary Issuers of Guaranteed Securities, and financial statements formatted in inline XBRL[499](index=499&type=chunk) [Signature](index=103&type=section&id=Signature) The report is duly signed on behalf of KeyCorp by Stacy L. Gilbert, Chief Accounting Officer, on May 6, 2025, affirming compliance with the Securities Exchange Act of 1934 - The report was signed by Stacy L. Gilbert, Chief Accounting Officer of KeyCorp, on May 6, 2025[502](index=502&type=chunk)

Core Insights - KeyBank has launched the Certified Cash Flow Advisor Program to enhance its service offerings for small-to-midsize businesses, focusing on a consultative approach to address complex financial needs [1][4] - The program aims to empower business owners by providing tailored solutions that improve efficiency and profitability in areas such as payments, receivables, and liquidity management [3][4] Company Overview - KeyBank, headquartered in Cleveland, Ohio, has approximately $189 billion in assets as of March 31, 2025, and operates a network of around 1,000 branches and 1,200 ATMs across 15 states [6][7] - The bank provides a wide range of financial services, including deposit, lending, cash management, and investment services, as well as corporate and investment banking products [7] Program Details - The Certified Cash Flow Advisor Program was launched in 2024 and equips KeyBank professionals with a framework for engaging business owners in meaningful discussions, termed 'Key Conversations' [2] - By the end of March 2025, approximately 900 KeyBank advisors have completed the certification process, with around 285 more in progress, indicating a significant investment in enhancing advisory services [3] Strategic Approach - KeyBank's approach emphasizes an advice-driven philosophy, aiming to strengthen relationships with business owners and support their long-term success in a complex financial landscape [5] - The program represents a shift from traditional banking to a more strategic partnership model, focusing on collaborative financial guidance rather than solely product-driven solutions [4][5]

Core Points - KeyBank celebrated its bicentennial with the grand opening of the KeyBank Heritage Center in Cleveland, showcasing its 200-year history and commitment to clients and communities [1][2] - The Heritage Center features interactive exhibits and artifacts from KeyBank's founding in 1825, emphasizing its contributions to the communities it serves [2][5] - KeyBank's assets were approximately $189 billion as of March 31, 2025, and it operates around 1,000 branches and 1,200 ATMs across 15 states [7][8] Company Overview - KeyCorp, headquartered in Cleveland, Ohio, is one of the largest bank-based financial services companies in the U.S., providing a range of services including deposit, lending, cash management, and investment services [7][8] - The company has a workforce of 17,000 teammates and serves millions of clients from Maine to Alaska, positioning itself for future growth [6][7] - KeyBank also offers corporate and investment banking products under the KeyBanc Capital Markets name, catering to middle market companies across selected industries [8]

Group 1 - KeyCorp's shares have shown mixed performance over the past year, trading essentially flat, but have been negatively impacted since Q4 highs due to market turmoil and tariff fears [1] - The company reported solid quarterly results recently, indicating potential resilience despite external challenges [1]