Core Points - KeyBank Foundation is launching a grant program to strengthen Community Development Financial Institutions (CDFIs) to enhance affordable housing and small business development [1][2] - The program will award $200,000 grants to one exemplary CDFI in each of KeyBank's 27 markets, providing flexible funding for their broader missions [2][4] - CDFIs are essential for economic empowerment, facilitating homeownership, business growth, and financial stability in underserved communities [3] Grant Program Details - The grant program aims to provide unrestricted funding to support CDFIs in expanding services, enhancing infrastructure, and deepening community impact [2][4] - Applications for the grants must be submitted by May 16, with specific submission requirements outlined by the KeyBank Foundation [5] - Eligible applicants must be certified CDFIs in good standing, operating as nonprofit or for-profit entities in KeyBank's primary markets, with a strong track record in affordable housing or small business development [9] About KeyBank and KeyBank Foundation - KeyBank Foundation is a nonprofit organization focused on improving financial wellness, education, and community development through strategic philanthropy [6] - KeyCorp, the parent company of KeyBank, is celebrating its bicentennial in 2025, with assets of approximately $187 billion as of December 31, 2024 [7] - KeyBank operates approximately 1,000 branches and 1,200 ATMs across 15 states, offering a range of financial services including corporate and investment banking products [8]

Core Insights - The KeyBank 2025 Financial Mobility Survey indicates a growing belief among Americans that homeownership is unattainable, with 46% of non-homeowners expressing this sentiment, up from 39% the previous year [4] - Despite these challenges, recent homebuyers report increased confidence due to financial education and support from mortgage loan officers, with 30% stating that such meetings influenced their purchasing decisions, a rise from 19% last year [5][6] Group 1: Homeownership Perception - A significant portion of respondents, 41%, believe homeownership is not attainable for the average American [4] - Younger individuals without a mortgage are attempting to save more, with 47% spending less in hopes of affording a mortgage, yet 60% still doubt their ability to own a home [4] Group 2: Financial Education and Support - Financial education is seen as crucial, with 48% of respondents in the market for a home recognizing the importance of budgeting for down payments and closing costs [5] - KeyBank's Financial Wellness Center offers resources to help individuals understand their financial standing and navigate the homebuying process [5][10] Group 3: Role of Financial Institutions - Building a relationship with banks can enhance the homebuying experience, as financial institutions provide guidance and tools to make homeownership more achievable [6][7] - KeyBank Mortgage Loan Officers are highlighted as valuable resources for potential homebuyers, offering information on lending opportunities and programs [8] Group 4: Economic Outlook - Recent homebuyers exhibit a positive economic outlook, feeling confident in their ability to manage financial commitments, such as coming up with $2,000 in a month [6] - The survey reflects a broader sentiment regarding financial resiliency and the impact of societal trends on homeownership aspirations [11]

Core Insights - KeyBank has been awarded twelve 2025 Best Bank Awards for its support of small and middle market business clients, highlighting its commitment to building trusted relationships and providing high-quality service [1][2]. Group 1: Awards and Recognition - KeyBank received nine national and regional Coalition Greenwich Best Bank Awards for middle market banking, recognizing its ability to build trusted relationships and optimize business performance for clients [2][3]. - The bank also received three national and regional Coalition Greenwich Best Bank Awards for small business banking, reflecting its dedication to providing tools and guidance for small businesses [3][7]. Group 2: Methodology - The awards for small business banking were based on over 13,000 interviews with businesses generating sales between $1 million and $10 million across the country [4]. - The awards for middle market banking were based on nearly 12,000 interviews with businesses generating sales between $10 million and $500 million in the United States [4]. Group 3: Company Overview - KeyCorp, headquartered in Cleveland, Ohio, is one of the largest bank-based financial services companies in the U.S., with approximately $187 billion in assets as of December 31, 2024 [5][8]. - The company provides a range of services including deposit, lending, cash management, and investment services through approximately 1,000 branches and 1,200 ATMs across 15 states [8].

Group 1 - KeyCorp's shares increased by 19% in 2024, supported by a $2.8 billion investment from Scotiabank, which involved a significant repositioning of its available-for-sale portfolio [2] - The repositioning included the sale of approximately $10 billion worth of assets [2] - The Insiders Forum focuses on small and mid-cap stocks with significant insider purchases, aiming to outperform the Russell 2000 benchmark [2]

Core Viewpoint - KeyCorp announced a new $1 billion share repurchase program, which is expected to commence in the second half of the year, leading to a 3.5% increase in its share price [1]. Group 1: Financial Performance and Actions - KeyCorp raised its quarterly dividend by 5.1% to 20.5 cents per share in 2022, maintaining this level since then [2]. - The company sold a 14.9% equity stake to The Bank of Nova Scotia for $2.8 billion, which is anticipated to enhance its capital ratios [3]. - KeyCorp's total debt was $19.2 billion as of December 31, 2024, with an equal amount in cash and short-term investments, indicating a strong liquidity position [5]. Group 2: Future Outlook - The balance sheet repositioning actions taken by KeyCorp are expected to drive net interest income and margin expansion in 2025 and 2026, with low single-digit accretive effects on earnings for both years [4]. - Over the past year, KeyCorp's shares have increased by 8.6%, which is lower than the industry's growth of 15.8% [6].

Group 1 - The article discusses a collection of Barron's Better Bets (BBB), indicating that half of the stocks are considered too expensive or have low dividends, while seven of the ten lowest priced stocks with the "Safest" dividends are recommended for purchase [1] - Altria is highlighted as a notable candidate within the BBB collection, suggesting potential investment interest [1] Group 2 - The article promotes a live video series on Facebook called the Underdog Daily Dividend Show, which features portfolio candidates and encourages audience interaction regarding stock preferences [2] - The initiative aims to engage followers by allowing them to comment on their favorite and least favorite stocks, which may influence future reports [2]

Core Viewpoint - KeyCorp has authorized a share repurchase program allowing the company to buy back up to $1.0 billion of its common shares, which will commence in the second half of 2025 [1][2]. Group 1: Share Repurchase Program - The share repurchase program will enable KeyCorp to purchase shares in the open market or through privately negotiated transactions [1]. - The timing, price, and number of shares repurchased will be determined by KeyCorp based on various factors, including market conditions and corporate liquidity [2]. Group 2: Company Overview - KeyCorp is celebrating its bicentennial in 2025, marking 200 years of service across the United States [4]. - As of December 31, 2024, KeyCorp had approximately $187 billion in assets, making it one of the largest bank-based financial services companies in the nation [4]. - The company operates approximately 1,000 branches and 1,200 ATMs, providing a range of financial services including deposit, lending, and investment services [5].

Core Insights - Key Wealth and Envestnet have expanded their multi-year partnership to enhance wealth management services for Key Wealth advisors [1][2] - The collaboration aims to provide a next-generation wealth management platform with advanced tools for personalized financial planning and investment management [2] Company Overview - Key Wealth is the wealth management division of KeyCorp, which has approximately $61 billion in assets as of December 31, 2024 [3] - Key Wealth offers a range of services including financial planning, investment management, and fiduciary services, catering to high-net-worth (HNW), ultra-high-net-worth (UHNW), and institutional clients [3] Technology and Solutions - The partnership will grant Key Wealth advisors access to Envestnet's wealth management technology and data-driven solutions, enhancing client engagement and financial planning [2][5] - Envestnet's platform includes features such as digital client experience, integrated financial planning, and advanced portfolio management tools [6]

Company Overview - KeyCorp is celebrating its bicentennial in 2025, marking 200 years of service to clients and communities from Maine to Alaska [3] - The company is headquartered in Cleveland, Ohio, and is one of the largest bank-based financial services companies in the United States, with assets of approximately $187 billion as of December 31, 2024 [3] Services Offered - KeyCorp provides a range of services including deposit, lending, cash management, and investment services to individuals and businesses across 15 states under the KeyBank National Association brand, supported by a network of around 1,000 branches and approximately 1,200 ATMs [4] - The company also offers sophisticated corporate and investment banking products, such as merger and acquisition advice, public and private debt and equity, syndications, and derivatives to middle market companies in selected industries throughout the United States under the KeyBanc Capital Markets trade name [4] Upcoming Events - KeyCorp's Chief Financial Officer, Clark Khayat, will speak at the 2025 RBC Capital Markets Global Financial Institutions Conference on March 4, 2025, at 11:20 a.m. ET in New York City [1] - The conference will include a review of KeyCorp's performance, strategy, and outlook, with potential forward-looking statements and material information discussed [2]

Financial Performance and Capital Ratios - KeyCorp's consolidated total assets were approximately $187.2 billion as of December 31, 2024[19]. - KeyCorp's Common Equity Tier 1 ratio as of December 31, 2024, was 11.92%, exceeding the regulatory minimum of 4.50%[74]. - KeyCorp's Tier 1 Capital ratio was 13.69%, significantly above the required 6.00%[74]. - Total Capital ratio for KeyCorp stood at 16.15%, well above the minimum requirement of 8.00%[74]. - KeyCorp's leverage ratio was reported at 10.03%, exceeding the minimum requirement of 4.00%[74]. - KeyBank was classified as "well capitalized" under the revised prompt corrective action framework as of December 31, 2024[81]. - The stress capital buffer for KeyCorp is 3.10%, contributing to a total capital requirement of 11.10%[74]. - KeyCorp's capital ratios reflect a five-year transition of CECL impacts on regulatory ratios[76]. - KeyCorp is required to maintain a Modified Liquidity Coverage Ratio (LCR) of 100% on a monthly basis, as it is classified under the Liquidity Coverage Rules[87]. - KeyCorp is subject to a minimum long-term debt requirement of 6% of total risk-weighted assets, 3.5% of average total consolidated assets, or 2.5% of total leverage exposure[139]. Employee Compensation and Benefits - As of December 31, 2024, 93% of employees earned $20 or more per hour, reflecting a commitment to competitive compensation[34]. - KeyCorp's average voluntary turnover rate decreased to 13.2% in 2024, down from 14.6% in 2023[42]. - KeyCorp's employee benefits include a 401(k) plan with dollar-for-dollar matching contributions up to 7% of eligible pay[35]. - The company has a pay-for-performance culture that aligns compensation with both short-term and long-term financial performance objectives[37]. Business Segments and Services - The Commercial Bank segment focuses on middle market clients and includes significant expertise in sectors such as Healthcare and Technology[28]. - KeyCorp's investment management services cater to large corporate and public retirement plans, foundations, and high-net-worth individuals[21]. - KeyCorp's digital brand, Laurel Road, enhances its reach in providing financial services to individuals and small businesses[26]. Regulatory Environment and Compliance - KeyCorp is authorized to engage in a broader scope of activities as a Financial Holding Company, including securities underwriting and merchant banking[60]. - The regulatory capital framework is based on the Basel III standards, which were revised to enhance financial stability post-2007-2009 financial crisis[70]. - The Capital Proposal will require Large Banking Organizations, including KeyCorp, to calculate risk-based capital ratios under both the expanded risk-based approach and the current standardized approach, using the lower of the two[82]. - The Community Reinvestment Act final rule will impose new data collection and reporting requirements, effective January 1, 2026, for large banks including KeyBank[136]. - KeyBank must comply with the OCC's revised recovery planning guidelines by January 1, 2026, with testing compliance delayed until January 1, 2027[124]. - The evolving regulatory environment may lead to increased compliance costs and impact the company's ability to realize benefits from regulatory tailoring[181]. Risk Factors - The company faces various risks including credit, market, liquidity, operational, and compliance risks that could adversely affect its financial condition[144]. - KeyCorp's credit risk is concentrated in commercial and industrial loans, with potential adverse effects from deteriorating market conditions[146]. - Rising interest rates and economic downturns could negatively affect net interest income and the ability to maintain capital ratios[170]. - The soundness of other financial institutions is critical, as defaults or negative perceptions can lead to market-wide liquidity problems affecting Key's operations[174]. - The company is subject to liquidity risk, which could negatively affect funding levels and may require alternative funding methods, potentially increasing the overall cost of funds[175]. - Geopolitical destabilization, such as the Russia-Ukraine war and the Israel-Hamas war, poses risks to loan portfolios by increasing potential defaults and loan losses[160]. Operational and Cybersecurity Risks - Operational risks include human error, fraud, and technology failures, which could lead to increased operational costs and reputational harm[191]. - Cybersecurity risks are heightened due to reliance on third-party service providers, and breaches could result in financial and operational harm[194]. - The company has incurred substantial expenses to enhance the reliability and security of its systems, but cannot guarantee these measures will prevent cyber incidents[198]. - Third-party vendors perform significant operational services, and their failures could negatively impact the company's performance and service delivery[199]. Special Assessments and Financial Obligations - KeyBank incurred an initial pre-tax expense of approximately $190 million due to the special assessment recognized in Q4 2023[113]. - In Q1 2024, KeyBank recorded an incremental pre-tax expense of $29 million due to an increase in the FDIC's loss estimates related to the protection of uninsured depositors[114]. - KeyBank recorded an additional pre-tax expense of $5 million in Q2 2024, and reversals of $6 million and $3 million in Q3 and Q4 2024, respectively, to adjust initial estimates[114]. - KeyCorp's dividends are limited by federal law to the lesser of amounts calculated under an earnings retention test and an undivided profits test[107]. Market Conditions and Economic Impact - The commercial real estate market is experiencing deterioration, particularly in multifamily, office, hospitality, and single-family detached properties, with property values continuing to decline in many markets[151]. - Approximately 5% of Key's multifamily portfolio is located in major urban markets like New York City, Chicago, Los Angeles, and San Francisco, with no exposure to rent-controlled properties in New York City[151]. - Economic conditions in regions where Key operates are uneven, and adverse conditions could impact borrowers' ability to repay loans and decrease collateral values[171]. - Market volatility and uncertainty related to inflation may lead to increased costs for businesses and consumers, further impacting creditworthiness of borrowers[166].