Revenue of $865
million; Adjusted for selected items(a), revenue
up 16% year-over-year
Net interest income up 10% linked
quarter
Momentum across investment banking, payments,
and wealth management fees up 27% year-over-year
Common Equity Tier 1 ratio increased 120 basis
points quarter-over-quarter to 12%(b)
CLEVELAND, Jan. 21,
2025 /PRNewswire/ -- KeyCorp (NYSE: KEY) today
announced a net loss from continuing operations attributable to Key
common shareholders of $(279)
million, or $(.28) per diluted
common share, or adjusted net income of $378 million or $.38 per diluted common share(a), for
the fourth quarter of 2024. Included in the fourth quarter of 2024
are $(657) million, or $(.66) per diluted common share, after-tax, of
charges related to the loss on the sale of
securities(c). For the third quarter of 2024, KeyCorp
reported a net loss from continuing operations attributable to Key
common shareholders of $(447) million, or $(.47) per diluted common
share, or adjusted net income of $285 million or $.30 per diluted
common share(a). Net income from continuing operations
attributable to Key common shareholders was $30 million, or $.03
per diluted common share, or adjusted net income of $239 million or
$.25 per diluted common share(a), for the fourth quarter
of 2023. During the quarter, Key and Scotiabank received regulatory
approval to complete Scotiabank's minority investment in Key as
announced on August 12, 2024.
Comments from Chairman and CEO, Chris
Gorman
"Our fourth quarter results marked a strong finish to the
year. EPS and revenue were impacted by the previously communicated
completion of our securities portfolio repositioning. On an
adjusted basis(a), revenues were up 16% year-over-year
and 11% sequentially. Net interest income was up 10%
quarter-over-quarter and fees (as adjusted(a)), were up
meaningfully versus comparable periods. We achieved year-over-year
positive operating leverage for a second consecutive quarter. On a
linked quarter basis, net charge-offs were down 26% and criticized
loans down 7%.
Our strong financial results are a function of continued
client momentum. Relationship households were up 3%, client
deposits were up 4%, and AUM increased to a record level of
$61 billion in 2024. We continued to
drive significant progress in each of our strategic, fee-based
businesses – wealth management, commercial payments, and investment
banking.
I am very proud of all that our team accomplished in 2024. As
we turn the page to 2025, we celebrate KeyBank's 200th anniversary,
a remarkable milestone that reflects the hard work of our teammates
over the past two centuries, and their collective dedication to our
clients. With strong performance momentum and a leading capital
position, we are well positioned for sound, profitable growth in
2025 and beyond."
|
(a) The table entitled
"GAAP to Non-GAAP Reconciliations" in the attached financial
supplement presents the computations of certain financial measures
related to "adjusted earnings per share", "adjusted
taxable-equivalent revenues", "adjusted noninterest income", and
"adjusted net income." The table reconciles the GAAP performance
measures to the corresponding non-GAAP measures, which provides a
basis for period-to-period comparisons.
(b) December 31, 2024 ratio is estimated and reflects Key's
election to adopt the CECL optional transition provision.
(c) See table on page 25 for more information on Selected Items
Impact on Earnings.
|
|
Selected Financial
Highlights
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dollars in millions,
except per share data
|
|
|
|
|
Change 4Q24
vs.
|
|
|
4Q24
|
3Q24
|
4Q23
|
|
3Q24
|
4Q23
|
|
Income (loss) from
continuing operations attributable to Key common
shareholders
|
$
(279)
|
$
(447)
|
$ 30
|
|
37.6 %
|
N/M
|
|
Income (loss) from
continuing operations attributable to Key common shareholders
per
common share — assuming dilution
|
(.28)
|
(.47)
|
.03
|
|
40.4
|
N/M
|
|
Return on average
tangible common equity from continuing operations
(a)
|
(9.69) %
|
(16.98) %
|
1.46 %
|
|
N/A
|
N/A
|
|
Return on average total
assets from continuing operations
|
(.52)
|
(.87)
|
.14
|
|
N/A
|
N/A
|
|
Common Equity Tier 1
ratio (b)
|
12.0
|
10.8
|
10.0
|
|
N/A
|
N/A
|
|
Book value at period
end
|
$
14.21
|
$
14.53
|
$
13.02
|
|
(2.2)
|
9.1
|
|
Net interest margin
(TE) from continuing operations
|
2.41 %
|
2.17 %
|
2.07 %
|
|
N/A
|
N/A
|
|
|
|
|
|
|
|
|
|
(a)
|
The table entitled
"GAAP to Non-GAAP Reconciliations" in the attached financial
supplement presents the computations of certain financial measures
related to "tangible common equity." The table reconciles the GAAP
performance measures to the corresponding non-GAAP measures, which
provides a basis for period-to-period comparisons.
|
|
(b)
|
December 31, 2024 ratio
is estimated.
|
|
TE = Taxable
Equivalent, N/A = Not Applicable, N/M = Not Meaningful
|
|
INCOME STATEMENT
HIGHLIGHTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dollars in
millions
|
|
|
|
|
Change 4Q24
vs.
|
|
4Q24
|
3Q24
|
4Q23
|
|
3Q24
|
4Q23
|
|
Net interest income
(TE)
|
$
1,061
|
$
964
|
$
928
|
|
10.1 %
|
14.3 %
|
|
Noninterest
income
|
(196)
|
(269)
|
610
|
|
27.1
|
(132.1)
|
|
Total revenue
(TE)
|
$
865
|
$
695
|
$ 1,538
|
|
24.5 %
|
(43.8) %
|
|
|
|
|
|
|
|
Taxable-equivalent net interest income was $1.1 billion for the fourth quarter of 2024 and
the net interest margin was 2.41%. Compared to the fourth quarter
of 2023, net interest income increased by $133 million, and
the net interest margin increased by 34 basis points. The increase
in net interest income and the net interest margin reflect the
reinvestment of proceeds from maturing investment securities into
higher yielding investments, the maturity of lower-yielding
interest rate swaps with negative carry that were terminated in
2023, and the first tranche of the repositioning of the
available-for-sale portfolio of $7.0
billion during the third quarter of 2024. In addition,
during the fourth quarter of 2024, Key completed the second tranche
of the available-for-sale portfolio repositioning, which involved
the sale and reinvestment of approximately $3.0 billion of lower-yielding mortgaged-backed
securities into higher-yielding investments. Net interest income
and the net interest margin also benefited from an increase in
lower-cost deposits, which contributed to the decline in wholesale
borrowings. These benefits were partially offset by a decline in
loan balances and the impact of lower interest rates on repricing
earning assets.
Compared to the third quarter of 2024, taxable-equivalent net
interest income increased by $97
million, and the net interest margin increased by 24 basis
points. Net interest income and the net interest margin benefited
from the reinvestment of proceeds from maturing investment
securities into higher-yielding investments, the repositioning of
the available-for-sale portfolio, the maturity of amortizing
interest rate swaps with negative carry, and an improved funding
mix.
|
Noninterest
Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dollars in
millions
|
|
|
|
|
Change 4Q24
vs.
|
|
4Q24
|
3Q24
|
4Q23
|
|
3Q24
|
4Q23
|
|
Trust and investment
services income
|
$
142
|
$
140
|
$
132
|
|
1.4 %
|
7.6 %
|
|
Investment banking and
debt placement fees
|
221
|
171
|
136
|
|
29.2
|
62.5
|
|
Cards and payments
income
|
85
|
84
|
84
|
|
1.2
|
1.2
|
|
Service charges on
deposit accounts
|
65
|
67
|
65
|
|
(3.0)
|
—
|
|
Corporate services
income
|
69
|
69
|
67
|
|
—
|
3.0
|
|
Commercial mortgage
servicing fees
|
68
|
73
|
48
|
|
(6.8)
|
41.7
|
|
Corporate-owned life
insurance income
|
36
|
36
|
36
|
|
—
|
—
|
|
Consumer mortgage
income
|
16
|
12
|
11
|
|
33.3
|
45.5
|
|
Operating lease income
and other leasing gains
|
15
|
16
|
22
|
|
(6.3)
|
(31.8)
|
|
Other income
|
(5)
|
(2)
|
13
|
|
150.0
|
(138.5)
|
|
Net securities gains
(losses)
|
(908)
|
(935)
|
(4)
|
|
2.9
|
N/M
|
|
Total noninterest
income
|
$
(196)
|
$
(269)
|
$
610
|
|
27.1 %
|
(132.1) %
|
|
|
|
|
|
|
|
Compared to the fourth quarter of 2023, noninterest income
decreased by $806 million. The
decrease was driven by a $915 million loss on the sale of
securities as part of a strategic repositioning of the portfolio,
as well as a $3 million loss related
to the Scotiabank investment agreement valuation in the fourth
quarter of 2024. See the Selected Items Impact on Earnings table on
page 25 for more information. The decline was partly offset by an
$85 million increase in investment
banking and debt placement fees, reflective of stronger syndication
fees, underwriting fees, and merger and acquisition fees, as
well as a $20 million increase in
commercial mortgage servicing fees.
Compared to the third quarter of 2024, noninterest income
increased by $73 million, primarily
driven by a $50 million increase in
investment banking and debt placement fees, reflective of stronger
syndication fees and merger and acquisition advisory fees.
Additionally, net securities losses declined relative to the
prior quarter, reflecting gains from other investment activity in
the fourth quarter.
|
Noninterest
Expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dollars in
millions
|
|
|
|
|
Change 4Q24
vs.
|
|
4Q24
|
3Q24
|
4Q23
|
|
3Q24
|
4Q23
|
|
Personnel
expense
|
$
734
|
$
670
|
$
674
|
|
9.6 %
|
8.9 %
|
|
Net
occupancy
|
67
|
66
|
65
|
|
1.5
|
3.1
|
|
Computer
processing
|
107
|
104
|
92
|
|
2.9
|
16.3
|
|
Business services and
professional fees
|
55
|
41
|
44
|
|
34.1
|
25.0
|
|
Equipment
|
20
|
20
|
24
|
|
—
|
(16.7)
|
|
Operating lease
expense
|
15
|
14
|
18
|
|
7.1
|
(16.7)
|
|
Marketing
|
33
|
21
|
31
|
|
57.1
|
6.5
|
|
Other
expense
|
198
|
158
|
424
|
|
25.3
|
(53.3)
|
|
Total noninterest
expense
|
$
1,229
|
$ 1,094
|
$ 1,372
|
|
12.3 %
|
(10.4) %
|
|
|
|
|
|
|
|
Compared to the fourth quarter of 2023, noninterest expense
decreased $143 million. The decline was driven by selected
items that impacted earnings in the fourth quarter of 2023, which
included the FDIC special assessment, efficiency related expenses,
and a pension settlement charge in the fourth quarter of 2023,
which collectively totaled $275
million. See the Selected Items Impact on Earnings table on
page 25 for more information. Partly offsetting the decline was an
increase in personnel expense of $60
million due to an increase in incentive and stock-based
compensation related to strong capital markets activity, as well as
an increase in technology investments.
Compared to the third quarter of 2024, noninterest expense
increased by $135 million. The
increase was driven by a $64 million
increase in personnel expense, primarily related to incentive and
stock-based compensation, reflective of stronger capital
markets activity, as well as an increase in employee benefits.
Additionally, there was a $40 million
increase in other expense, largely related to seasonal
miscellaneous expenses such as charitable donations.
|
BALANCE SHEET
HIGHLIGHTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
Loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dollars in
millions
|
|
|
|
|
Change 4Q24
vs.
|
|
4Q24
|
3Q24
|
4Q23
|
|
3Q24
|
4Q23
|
|
Commercial and
industrial (a)
|
$
52,887
|
$
53,121
|
$
56,664
|
|
(.4) %
|
(6.7) %
|
|
Other commercial
loans
|
19,202
|
19,929
|
21,942
|
|
(3.6)
|
(12.5)
|
|
Total consumer
loans
|
32,622
|
33,194
|
35,342
|
|
(1.7)
|
(7.7)
|
|
Total loans
|
$
104,711
|
$
106,244
|
$
113,948
|
|
(1.4) %
|
(8.1) %
|
|
|
|
|
|
|
|
|
(a)
|
Commercial and
industrial average loan balances include $216 million, $215
million, and $210 million of assets from commercial credit cards at
December 31, 2024, September 30, 2024, and December 31, 2023,
respectively.
|
Average loans were $104.7 billion
for the fourth quarter of 2024, a decrease of $9.2 billion compared to the fourth quarter of
2023, reflective of continued tepid client loan demand. The
decline in average loans was mostly driven by a $6.5 billion decline in average commercial
loans, due to lower commercial and industrial loans and commercial
mortgage real estate loans. Additionally, average consumer loans
declined by $2.7 billion,
reflective of broad-based declines across all consumer loan
categories.
Compared to the third quarter of 2024, average loans decreased
by $1.5 billion. Average commercial
loans declined by $961 million,
primarily driven by a decrease in commercial mortgage real estate
loans and commercial and industrial loans. Average consumer loans
declined $572 million, driven by
lower consumer mortgage and home equity loan balances.
|
Average
Deposits
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dollars in
millions
|
|
|
|
|
Change 4Q24
vs.
|
|
4Q24
|
3Q24
|
4Q23
|
|
3Q24
|
4Q23
|
|
Non-time
deposits
|
$
132,092
|
$
129,901
|
$
130,750
|
|
1.7 %
|
1.0 %
|
|
Time
deposits
|
17,641
|
17,870
|
14,326
|
|
(1.3)
|
23.1
|
|
Total
deposits
|
$
149,733
|
$
147,771
|
$
145,076
|
|
1.3 %
|
3.2 %
|
|
|
|
|
|
|
|
|
Cost of total
deposits
|
2.18 %
|
2.39 %
|
2.06 %
|
|
N/A
|
N/A
|
|
|
|
|
|
|
|
Average deposits totaled $149.7
billion for the fourth quarter of 2024, an increase of
$4.7 billion compared to the year-ago
quarter, reflecting growth in both consumer and commercial
deposits.
Compared to the third quarter of 2024, average deposits
increased by $2.0 billion, driven by
an increase in both consumer and commercial deposit balances.
|
ASSET
QUALITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dollars in
millions
|
|
|
|
|
Change 4Q24
vs.
|
|
4Q24
|
3Q24
|
4Q23
|
|
3Q24
|
4Q23
|
|
Net loan
charge-offs
|
$ 114
|
$ 154
|
$ 76
|
|
(26.0) %
|
50.0 %
|
|
Net loan charge-offs to
average total loans
|
.43 %
|
.58 %
|
.26 %
|
|
N/A
|
N/A
|
|
Nonperforming loans at
period end
|
$ 758
|
$ 728
|
$ 574
|
|
4.1
|
32.1
|
|
Nonperforming assets at
period end
|
772
|
741
|
591
|
|
4.2
|
30.6
|
|
Allowance for loan and
lease losses
|
1,409
|
1,494
|
1,508
|
|
(5.7)
|
(6.6)
|
|
Allowance for credit
losses
|
1,699
|
1,774
|
1,804
|
|
(4.2)
|
(5.8)
|
|
Provision for credit
losses
|
39
|
95
|
102
|
|
(58.9)
|
(61.8)
|
|
|
|
|
|
|
|
|
Allowance for loan and
lease losses to nonperforming loans
|
186 %
|
205 %
|
263 %
|
|
N/A
|
N/A
|
|
Allowance for credit
losses to nonperforming loans
|
224
|
244
|
314
|
|
N/A
|
N/A
|
|
|
|
|
|
|
|
Key's provision for credit losses was $39
million, compared to $102
million in the fourth quarter of 2023 and $95 million in the third quarter of 2024. The
decrease from prior periods primarily reflects lower loan balances,
slowing asset quality migration, and changes in net charge-off
levels.
Net loan charge-offs for the fourth quarter of 2024 totaled
$114 million, or 0.43% of average
total loans. These results compare to $76
million, or 0.26%, for the fourth quarter of 2023 and
$154 million, or 0.58%, for the third
quarter of 2024. Key's allowance for credit losses was $1.7 billion, or 1.63% of total period-end loans
at December 31, 2024, compared to
1.60% at December 31, 2023, and 1.68%
at September 30, 2024.
At December 31, 2024,
Key's nonperforming loans totaled $758
million, which represented 0.73% of period-end portfolio
loans. These results compare to 0.51% at December 31, 2023,
and 0.69% at September 30, 2024. Nonperforming assets at
December 31, 2024, totaled $772
million, and represented 0.74% of period-end portfolio loans
and OREO and other nonperforming assets. These results compare to
0.52% at December 31, 2023, and 0.70% at September 30,
2024.
CAPITAL
Key's estimated risk-based capital ratios, included in the
following table, continued to exceed all "well-capitalized"
regulatory benchmarks at December 31, 2024.
|
Capital
Ratios
|
|
|
|
|
|
|
|
|
12/31/2024
|
9/30/2024
|
12/31/2023
|
|
Common Equity Tier 1
(a)
|
12.0 %
|
10.8 %
|
10.0 %
|
|
Tier 1 risk-based
capital (a)
|
13.7
|
12.6
|
11.7
|
|
Total risk-based
capital (a)
|
16.2
|
15.1
|
14.2
|
|
Tangible common equity
to tangible assets (b)
|
7.0
|
6.2
|
5.1
|
|
Leverage
(a)
|
10.1
|
9.2
|
9.0
|
|
|
|
|
|
(a)
|
December 31, 2024 ratio
is estimated and reflects Key's election to adopt the CECL optional
transition provision.
|
|
(b)
|
The table entitled
"GAAP to Non-GAAP Reconciliations" in the attached financial
supplement presents the computations of certain financial measures
related to "tangible common equity." The table reconciles the GAAP
performance measures to the corresponding non-GAAP measures, which
provides a basis for period-to-period comparisons.
|
Key's regulatory capital position remained strong in the fourth
quarter of 2024. As shown in the preceding table, at
December 31, 2024, Key's estimated Common Equity Tier 1 and
Tier 1 risk-based capital ratios stood at 12.0% and 13.7%,
respectively. Key's tangible common equity ratio was 7.0% at
December 31, 2024.
Key elected the CECL phase-in option provided by regulatory
guidance which delayed for two years the estimated impact of CECL
on regulatory capital and phases it in over three years beginning
in 2022. Effective for the first quarter 2022, Key entered a
three-year transition period, and the full impact of the CECL
standard was phased-in to regulatory capital through December 31, 2024. In the first quarter of 2025,
CECL will be fully reflected in regulatory capital. On a fully
phased-in basis, Key's Common Equity Tier 1 ratio would be reduced
by five basis points.
|
Summary of Changes
in Common Shares Outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In
thousands
|
|
|
|
|
Change 4Q24
vs.
|
|
|
4Q24
|
3Q24
|
4Q23
|
|
3Q24
|
4Q23
|
|
Shares outstanding at
beginning of period
|
991,251
|
943,200
|
936,161
|
|
5.1 %
|
5.9 %
|
|
Shares issued under
employee compensation plans (net of cancellations and
returns)
|
493
|
222
|
403
|
|
122.1
|
22.3
|
|
Shares issued under
Scotiabank investment agreement
|
115,042
|
47,829
|
—
|
|
N/M
|
N/M
|
|
Shares outstanding at
end of period
|
1,106,786
|
991,251
|
936,564
|
|
11.7 %
|
18.2 %
|
|
|
|
|
|
|
|
|
Key declared a dividend in January of 2025 of $.205 per common share, payable in the first
quarter of 2025.
LINE OF BUSINESS RESULTS
The following table shows the contribution made by each major
business segment to Key's taxable-equivalent revenue from
continuing operations and income (loss) from continuing operations
attributable to Key for the periods presented. For more detailed
financial information pertaining to each business segment, see the
tables at the end of this release.
|
Major Business
Segments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dollars in
millions
|
|
|
|
|
Change 4Q24
vs.
|
|
|
4Q24
|
3Q24
|
4Q23
|
|
3Q24
|
4Q23
|
|
Revenue from
continuing operations (TE)
|
|
|
|
|
|
|
|
Consumer
Bank
|
$
872
|
$
814
|
$
770
|
|
7.1 %
|
13.2 %
|
|
Commercial
Bank
|
999
|
868
|
804
|
|
15.1
|
24.3
|
|
Other
(a)
|
(1,006)
|
(987)
|
(36)
|
|
(1.9)
|
N/M
|
|
Total
|
$
865
|
$
695
|
$
1,538
|
|
24.5 %
|
(43.8) %
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations attributable to Key
|
|
|
|
|
|
|
|
Consumer
Bank
|
$
88
|
$
86
|
$
(11)
|
|
2.3 %
|
900.0 %
|
|
Commercial
Bank
|
379
|
300
|
150
|
|
26.3
|
152.7
|
|
Other
(a)
|
(711)
|
(797)
|
(74)
|
|
10.8
|
N/M
|
|
Total
|
$
(244)
|
$
(411)
|
$
65
|
|
40.6 %
|
(475.4) %
|
|
|
|
|
|
|
|
|
|
(a)
|
Other includes other
segments that consists of corporate treasury, our principal
investing unit, and various exit portfolios as well as reconciling
items which primarily represents 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.
Corporate treasury includes realized gains and losses from
transactions associated with Key's investment securities portfolio.
Reconciling items also includes intercompany eliminations and
certain items that are not allocated to the business segments
because they do not reflect their normal operations.
|
|
TE = Taxable
Equivalent
|
|
N/M = Not
Meaningful
|
|
Consumer
Bank
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dollars in
millions
|
|
|
|
|
Change 4Q24
vs.
|
|
4Q24
|
3Q24
|
4Q23
|
|
3Q24
|
4Q23
|
|
Summary of
operations
|
|
|
|
|
|
|
|
Net interest income
(TE)
|
$
637
|
$
584
|
$
544
|
|
9.1 %
|
17.1 %
|
|
Noninterest
income
|
235
|
230
|
226
|
|
2.2
|
4.0
|
|
Total revenue
(TE)
|
872
|
814
|
770
|
|
7.1
|
13.2
|
|
Provision for credit
losses
|
43
|
52
|
5
|
|
(17.3)
|
760.0
|
|
Noninterest
expense
|
713
|
649
|
779
|
|
9.9
|
(8.5)
|
|
Income (loss) before
income taxes (TE)
|
116
|
113
|
(14)
|
|
2.7
|
928.6
|
|
Allocated income taxes
(benefit) and TE adjustments
|
28
|
27
|
(3)
|
|
3.7
|
N/M
|
|
Net income (loss)
attributable to Key
|
$
88
|
$
86
|
$
(11)
|
|
2.3 %
|
900.0 %
|
|
|
|
|
|
|
|
|
Average
balances
|
|
|
|
|
|
|
|
Loans and
leases
|
$ 37,567
|
$ 38,332
|
$ 40,763
|
|
(2.0) %
|
(7.8) %
|
|
Total assets
|
40,563
|
41,188
|
43,551
|
|
(1.5)
|
(6.9)
|
|
Deposits
|
87,476
|
86,431
|
83,557
|
|
1.2
|
4.7
|
|
|
|
|
|
|
|
|
Assets under
management at period end
|
$ 61,361
|
$ 61,122
|
$ 54,859
|
|
.4 %
|
11.9 %
|
|
|
|
|
|
|
|
|
TE = Taxable
Equivalent, N/M = Not Meaningful
|
|
Additional Consumer
Bank Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dollars in
millions
|
|
|
|
|
Change 4Q24
vs.
|
|
4Q24
|
3Q24
|
4Q23
|
|
3Q24
|
4Q23
|
|
Noninterest
income
|
|
|
|
|
|
|
|
Trust and investment
services income
|
$
115
|
$ 114
|
$ 105
|
|
.9 %
|
9.5 %
|
|
Service charges on
deposit accounts
|
32
|
34
|
37
|
|
(5.9)
|
(13.5)
|
|
Cards and payments
income
|
64
|
60
|
62
|
|
6.7
|
3.2
|
|
Consumer mortgage
income
|
16
|
12
|
11
|
|
33.3
|
45.5
|
|
Other noninterest
income
|
8
|
10
|
11
|
|
(20.0)
|
(27.3)
|
|
Total noninterest
income
|
$
235
|
$ 230
|
$ 226
|
|
2.2 %
|
4.0 %
|
|
|
|
|
|
|
|
|
Average deposit
balances
|
|
|
|
|
|
|
|
Money market
deposits
|
$
31,968
|
$
30,805
|
$
29,546
|
|
3.8 %
|
8.2 %
|
|
Demand
deposits
|
22,442
|
22,310
|
22,323
|
|
.6
|
.5
|
|
Savings
deposits
|
4,391
|
4,553
|
5,238
|
|
(3.6)
|
(16.2)
|
|
Time
deposits
|
13,979
|
13,927
|
10,261
|
|
.4
|
36.2
|
|
Noninterest-bearing
deposits
|
14,696
|
14,836
|
16,189
|
|
(.9)
|
(9.2)
|
|
Total
deposits
|
$
87,476
|
$
86,431
|
$
83,557
|
|
1.2 %
|
4.7 %
|
|
|
|
|
|
|
|
|
Other
data
|
|
|
|
|
|
|
|
Branches
|
944
|
944
|
959
|
|
|
|
|
Automated teller
machines
|
1,182
|
1,194
|
1,217
|
|
|
|
|
|
|
|
|
|
|
Consumer Bank Summary of Operations (4Q24 vs. 4Q23)
- Key's Consumer Bank recorded net income attributable to Key of
$88 million for the fourth quarter of
2024, compared to a loss of $11
million for the year-ago quarter
- Taxable-equivalent net interest income increased by
$93 million, or 17.1%, compared to
the fourth quarter of 2023
- Average loans and leases decreased $3.2
billion, or 7.8%, from the fourth quarter of 2023, driven by
broad-based declines across all loan categories
- Average deposits increased $3.9
billion, or 4.7%, from the fourth quarter of 2023, driven by
growth in money market deposits and certificates of deposit
- Provision for credit losses increased $38 million compared to the fourth quarter of
2023, largely driven by higher net charge-offs
- Noninterest income increased $9
million from the year-ago quarter, driven by increases in
trust and investment services, consumer mortgage, and cards and
payments income
- Noninterest expense decreased $66
million from the year-ago quarter, primarily driven by a
FDIC special assessment charge in the fourth quarter of 2023
|
Commercial
Bank
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dollars in
millions
|
|
|
|
|
Change 4Q24
vs.
|
|
4Q24
|
3Q24
|
4Q23
|
|
3Q24
|
4Q23
|
|
Summary of
operations
|
|
|
|
|
|
|
|
Net interest income
(TE)
|
$
537
|
$
460
|
$
452
|
|
16.7 %
|
18.8 %
|
|
Noninterest
income
|
462
|
408
|
352
|
|
13.2
|
31.3
|
|
Total revenue
(TE)
|
999
|
868
|
804
|
|
15.1
|
24.3
|
|
Provision for credit
losses
|
(3)
|
41
|
96
|
|
(107.3)
|
(103.1)
|
|
Noninterest
expense
|
516
|
445
|
526
|
|
16.0
|
(1.9)
|
|
Income (loss) before
income taxes (TE)
|
486
|
382
|
182
|
|
27.2
|
167.0
|
|
Allocated income taxes
and TE adjustments
|
107
|
82
|
32
|
|
30.5
|
234.4
|
|
Net income (loss)
attributable to Key
|
$
379
|
$
300
|
$
150
|
|
26.3 %
|
152.7 %
|
|
|
|
|
|
|
|
|
Average
balances
|
|
|
|
|
|
|
|
Loans and
leases
|
$ 66,691
|
$ 67,452
|
$ 72,713
|
|
(1.1) %
|
(8.3) %
|
|
Loans held for
sale
|
1,247
|
998
|
635
|
|
24.9
|
96.4
|
|
Total assets
|
76,433
|
76,395
|
82,026
|
|
—
|
(6.8)
|
|
Deposits
|
59,687
|
58,696
|
58,196
|
|
1.7 %
|
2.6 %
|
|
|
|
|
|
|
|
|
Additional
Commercial Bank Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dollars in
millions
|
|
|
|
|
Change 4Q24
vs.
|
|
4Q24
|
3Q24
|
4Q23
|
|
3Q24
|
4Q23
|
|
Noninterest
income
|
|
|
|
|
|
|
|
Trust and investment
services income
|
$
27
|
$
25
|
$
27
|
|
8.0 %
|
— %
|
|
Investment banking and
debt placement fees
|
220
|
171
|
135
|
|
28.7
|
63.0
|
|
Cards and payments
income
|
18
|
22
|
20
|
|
(18.2)
|
(10.0)
|
|
Service charges on
deposit accounts
|
32
|
32
|
28
|
|
—
|
14.3
|
|
Corporate services
income
|
67
|
62
|
61
|
|
8.1
|
9.8
|
|
Commercial mortgage
servicing fees
|
67
|
73
|
49
|
|
(8.2)
|
36.7
|
|
Operating lease income
and other leasing gains
|
15
|
16
|
21
|
|
(6.3)
|
(28.6)
|
|
Other noninterest
income
|
16
|
7
|
11
|
|
128.6
|
45.5
|
|
Total noninterest
income
|
$
462
|
$
408
|
$
352
|
|
13.2 %
|
31.3 %
|
|
|
|
|
|
|
|
Commercial Bank Summary of Operations (4Q24 vs. 4Q23)
- Key's Commercial Bank recorded net income attributable to Key
of $379 million for the fourth
quarter of 2024 compared to $150
million for the year-ago quarter
- Taxable-equivalent net interest income increased by
$85 million, or 18.8%, compared to
the fourth quarter of 2023
- Average loan and lease balances decreased $6.0 billion, or 8.3%, compared to the fourth
quarter of 2023, driven by a decline in commercial and industrial
loans and commercial real estate loans
- Average deposit balances increased $1.5
billion compared to the fourth quarter of 2023, driven by
our focus on growing deposits across our commercial businesses
- Provision for credit losses decreased $99 million compared to the fourth quarter of
2023, driven by lower loan balances, slowing asset quality
migration, and changes in the economic outlook
- Noninterest income increased $110
million compared to the fourth quarter of 2023, primarily
driven by an increase in investment banking and debt placement fees
and commercial mortgage servicing fees
- Noninterest expense decreased $10
million compared to the fourth quarter of 2023, driven by a
FDIC special assessment charge in the fourth quarter of 2023,
partly offset by higher incentive compensation from an increase in
investment banking activity
*******************************************
KeyCorp's roots trace back nearly 200 years to Albany, New York. Headquartered in
Cleveland, Ohio, Key is one of the
nation's largest bank-based financial services companies, with
assets of approximately $187 billion
at December 31, 2024.
Key provides deposit, lending, cash management, and investment
services to individuals and businesses in 15 states under the name
KeyBank National Association through a network of approximately
1,000 branches and approximately 1,200 ATMs. Key also provides a
broad range of 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. For more information, visit
https://www.key.com/. KeyBank is Member FDIC.
|
This earnings
release contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. These
statements do not relate strictly to historical or current
facts. Forward-looking statements usually can be identified
by the use of words such as "goal," "objective," "plan," "expect,"
"assume," "anticipate," "intend," "project," "believe," "estimate,"
or other words of similar meaning. Forward-looking statements
provide our current expectations or forecasts of future events,
circumstances, results, or aspirations. Forward-looking statements,
by their nature, are subject to assumptions, risks and
uncertainties, many of which are outside of our control. Our actual
results may differ materially from those set forth in our
forward-looking statements. There is no assurance that any list of
risks and uncertainties or risk factors is complete. Factors that
could cause Key's actual results to differ from those described in
the forward-looking statements can be found in KeyCorp's Form 10-K
for the year ended December 31, 2023, Quarterly Report on Form 10-Q
for the quarter ended September 30, 2024, and in KeyCorp's
subsequent SEC filings, all of which have been or will be filed
with the Securities and Exchange Commission (the "SEC") and are or
will be available on Key's website (www.key.com/ir) and on the
SEC's website (www.sec.gov). These factors may include, among
others, deterioration of commercial real estate market
fundamentals, adverse changes in credit quality trends, declining
asset prices, a worsening of the U.S. economy due to financial,
political, or other shocks, the extensive regulation of the U.S.
financial services industry, the soundness of other financial
institutions and the impact of changes in the interest rate
environment. Any forward-looking statements made by us or on our
behalf speak only as of the date they are made and we do not
undertake any obligation to update any forward-looking statement to
reflect the impact of subsequent events or
circumstances.
|
Notes to Editors:
A live Internet broadcast of
KeyCorp's conference call to discuss quarterly results and
currently anticipated earnings trends and to answer analysts'
questions can be accessed through the Investor Relations section at
https://www.key.com/ir at 8:00 a.m.
ET, on January 21, 2025. A
replay of the call will be available on our website through
January 21, 2026.
For up-to-date company information, media contacts, and facts
and figures about Key's lines of business, visit our Media Newsroom
at https://www.key.com/newsroom.
*****
KeyCorp
Fourth Quarter
2024
Financial Supplement
|
Page
|
|
|
12
|
Basis of
Presentation
|
|
13
|
Financial
Highlights
|
|
15
|
GAAP to Non-GAAP
Reconciliation
|
|
17
|
Consolidated Balance
Sheets
|
|
18
|
Consolidated Statements
of Income
|
|
19
|
Consolidated Average
Balance Sheets, and Net Interest Income and Yields/Rates From
Continuing Operations
|
|
21
|
Noninterest
Expense
|
|
21
|
Personnel
Expense
|
|
22
|
Loan
Composition
|
|
22
|
Loans Held for Sale
Composition
|
|
22
|
Summary of Changes in
Loans Held for Sale
|
|
22
|
Summary of Loan and
Lease Loss Experience From Continuing Operations
|
|
24
|
Asset Quality
Statistics From Continuing Operations
|
|
24
|
Summary of
Nonperforming Assets and Past Due Loans From Continuing
Operations
|
|
24
|
Summary of Changes in
Nonperforming Loans From Continuing Operations
|
|
25
|
Line of Business
Results
|
|
25
|
Selected Items Impact
on Earnings
|
Basis of Presentation
Use of Non-GAAP Financial Measures
This document
contains GAAP financial measures and non-GAAP financial measures
where management believes it to be helpful in understanding
Key's results of operations or financial position. Where non-GAAP
financial measures are used, the comparable GAAP financial measure,
as well as the reconciliation to the comparable GAAP financial
measure, can be found in this document, the financial supplement,
or conference call slides related to this document, all of which
can be found on Key's website (www.key.com/ir).
Forward-Looking Non-GAAP Financial Measures
From time to time Key may discuss forward-looking non-GAAP
financial measures. Key is unable to provide a reconciliation of
forward-looking non-GAAP financial measures to their most directly
comparable GAAP financial measures because Key is unable to
provide, without unreasonable effort, a meaningful or accurate
calculation or estimation of amounts that would be necessary for
the reconciliation due to the complexity and inherent difficulty in
forecasting and quantifying future amounts or when they may occur.
Such unavailable information could be significant for future
results.
Annualized Data
Certain returns, yields, performance
ratios, or quarterly growth rates are presented on an
"annualized" basis. This is done for analytical and
decision-making purposes to better discern underlying performance
trends when compared to full-year or year-over-year amounts.
Taxable Equivalent
The interest income earned on
certain earning assets is completely or partially exempt from
federal income tax. As such, these tax-exempt instruments typically
yield lower returns than taxable investments. Income from
tax-exempt earning assets is increased by an amount equivalent to
the taxes that would have been paid if this income had been taxable
at the federal statutory rate. This adjustment puts all earning
assets, most notably tax-exempt loans, and certain lease assets, on
a common basis that facilitates comparison of results to peers.
Earnings Per Share Equivalent
Certain income or
expense items may be expressed on a per common share basis. This is
done for analytical and decision-making purposes to better discern
underlying trends in total consolidated earnings per share
performance excluding the impact of such items. When the impact of
certain income or expense items is disclosed separately, the
after-tax amount is computed using the marginal tax rate, unless
otherwise specified, with this then being the amount used to
calculate the earnings per share equivalent.
|
Financial
Highlights
|
|
(Dollars in millions,
except per share amounts)
|
|
|
|
Three months
ended
|
|
|
|
12/31/2024
|
9/30/2024
|
12/31/2023
|
|
Summary of
operations
|
|
|
|
|
Net interest income
(TE)
|
$
1,061
|
$
964
|
$
928
|
|
Noninterest
income
|
(196)
|
(269)
|
610
|
|
|
Total revenue
(TE)
|
865
|
695
|
1,538
|
|
Provision for credit
losses
|
39
|
95
|
102
|
|
Noninterest
expense
|
1,229
|
1,094
|
1,372
|
|
Income (loss) from
continuing operations attributable to Key
|
(244)
|
(411)
|
65
|
|
Income (loss) from
discontinued operations, net of taxes
|
—
|
1
|
—
|
|
Net income (loss)
attributable to Key
|
(244)
|
(410)
|
65
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations attributable to Key common
shareholders
|
(279)
|
(447)
|
30
|
|
Income (loss) from
discontinued operations, net of taxes
|
—
|
1
|
—
|
|
Net income (loss)
attributable to Key common shareholders
|
(279)
|
(446)
|
30
|
|
|
|
|
|
|
|
Per common
share
|
|
|
|
|
Income (loss) from
continuing operations attributable to Key common
shareholders
|
$
(.28)
|
$
(.47)
|
$
.03
|
|
Income (loss) from
discontinued operations, net of taxes
|
—
|
—
|
—
|
|
Net income (loss)
attributable to Key common shareholders (a)
|
(.28)
|
(.47)
|
.03
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations attributable to Key common shareholders —
assuming dilution
|
(.28)
|
(.47)
|
.03
|
|
Income (loss) from
discontinued operations, net of taxes — assuming
dilution
|
—
|
—
|
—
|
|
Net income (loss)
attributable to Key common shareholders — assuming dilution
(a)
|
(.28)
|
(.47)
|
.03
|
|
|
|
|
|
|
|
Cash dividends
declared
|
.205
|
.205
|
.205
|
|
Book value at period
end
|
14.21
|
14.53
|
13.02
|
|
Tangible book value at
period end
|
11.70
|
11.72
|
10.02
|
|
Market price at period
end
|
17.14
|
16.75
|
14.40
|
|
|
|
|
|
|
|
Performance
ratios
|
|
|
|
|
From continuing
operations:
|
|
|
|
|
Return on average total
assets
|
(.52) %
|
(.87) %
|
.14 %
|
|
Return on average
common equity
|
(7.80)
|
(13.41)
|
1.08
|
|
Return on average
tangible common equity (b)
|
(9.69)
|
(16.98)
|
1.46
|
|
Net interest margin
(TE)
|
2.41
|
2.17
|
2.07
|
|
Cash efficiency ratio
(b)
|
141.3
|
156.4
|
88.6
|
|
|
|
|
|
|
|
From consolidated
operations:
|
|
|
|
|
Return on average total
assets
|
(.52) %
|
(.87) %
|
.14 %
|
|
Return on average
common equity
|
(7.80)
|
(13.38)
|
1.08
|
|
Return on average
tangible common equity (b)
|
(9.69)
|
(16.95)
|
1.46
|
|
Net interest margin
(TE)
|
2.41
|
2.17
|
2.07
|
|
Loan to deposit
(c)
|
70.3
|
71.0
|
77.9
|
|
|
|
|
|
|
|
Capital ratios at
period end
|
|
|
|
|
Key shareholders'
equity to assets
|
9.7 %
|
8.9 %
|
7.8 %
|
|
Key common
shareholders' equity to assets
|
8.4
|
7.6
|
6.5
|
|
Tangible common equity
to tangible assets (b)
|
7.0
|
6.2
|
5.1
|
|
Common Equity Tier 1
(d)
|
12.0
|
10.8
|
10.0
|
|
Tier 1 risk-based
capital (d)
|
13.7
|
12.6
|
11.7
|
|
Total risk-based
capital (d)
|
16.2
|
15.1
|
14.2
|
|
Leverage
(d)
|
10.1
|
9.2
|
9.0
|
|
|
|
|
|
|
|
Asset quality — from
continuing operations
|
|
|
|
|
Net loan
charge-offs
|
$
114
|
$
154
|
$
76
|
|
Net loan charge-offs to
average loans
|
.43 %
|
.58 %
|
.26 %
|
|
Allowance for loan and
lease losses
|
$
1,409
|
$
1,494
|
$
1,508
|
|
Allowance for credit
losses
|
1,699
|
1,774
|
1,804
|
|
Allowance for loan and
lease losses to period-end loans
|
1.35 %
|
1.42 %
|
1.34 %
|
|
Allowance for credit
losses to period-end loans
|
1.63
|
1.68
|
1.60
|
|
Allowance for loan and
lease losses to nonperforming loans
|
186
|
205
|
263
|
|
Allowance for credit
losses to nonperforming loans
|
224
|
244
|
314
|
|
Nonperforming loans at
period-end
|
$
758
|
$
728
|
$
574
|
|
Nonperforming assets at
period-end
|
772
|
741
|
591
|
|
Nonperforming loans to
period-end portfolio loans
|
.73 %
|
.69 %
|
.51 %
|
|
Nonperforming assets to
period-end portfolio loans plus OREO and other nonperforming
assets
|
.74
|
.70
|
.52
|
|
|
|
|
|
|
|
Trust
assets
|
|
|
|
|
Assets under
management
|
$
61,361
|
$
61,122
|
$
54,859
|
|
Other
data
|
|
|
|
|
Average full-time
equivalent employees
|
16,810
|
16,805
|
17,129
|
|
Branches
|
944
|
944
|
959
|
|
Taxable-equivalent
adjustment
|
$
10
|
$
12
|
$
7
|
|
|
|
|
|
Financial Highlights
(continued)
|
|
(Dollars in millions,
except per share amounts)
|
|
|
Twelve months
ended
|
|
|
12/31/2024
|
12/31/2023
|
|
Summary of
operations
|
|
|
|
Net interest income
(TE)
|
$
3,810
|
$
3,943
|
|
Noninterest
income
|
809
|
2,470
|
|
Total revenue
(TE)
|
4,619
|
6,413
|
|
Provision for credit
losses
|
335
|
489
|
|
Noninterest
expense
|
4,545
|
4,734
|
|
Income (loss) from
continuing operations attributable to Key
|
(163)
|
964
|
|
Income (loss) from
discontinued operations, net of taxes
|
2
|
3
|
|
Net income (loss)
attributable to Key
|
(161)
|
967
|
|
|
|
|
|
Income (loss) from
continuing operations attributable to Key common
shareholders
|
(306)
|
821
|
|
Income (loss) from
discontinued operations, net of taxes
|
2
|
3
|
|
Net income (loss)
attributable to Key common shareholders
|
(304)
|
824
|
|
|
|
|
|
Per common
share
|
|
|
|
Income (loss) from
continuing operations attributable to Key common
shareholders
|
$
(.32)
|
$
.88
|
|
Income (loss) from
discontinued operations, net of taxes
|
—
|
—
|
|
Net income (loss)
attributable to Key common shareholders (a)
|
(.32)
|
.89
|
|
|
|
|
|
Income (loss) from
continuing operations attributable to Key common shareholders —
assuming dilution
|
(.32)
|
.88
|
|
Income (loss) from
discontinued operations, net of taxes — assuming
dilution
|
—
|
—
|
|
Net income (loss)
attributable to Key common shareholders — assuming dilution
(a)
|
(.32)
|
.88
|
|
|
|
|
|
Cash dividends
paid
|
.82
|
.82
|
|
|
|
|
|
Performance
ratios
|
|
|
|
From continuing
operations:
|
|
|
|
Return on average total
assets
|
(.09) %
|
.50 %
|
|
Return on average
common equity
|
(2.37)
|
7.21
|
|
Return on average
tangible common equity (b)
|
(3.03)
|
9.60
|
|
Net interest margin
(TE)
|
2.16
|
2.17
|
|
Cash efficiency ratio
(b)
|
97.8
|
73.2
|
|
|
|
|
|
From consolidated
operations:
|
|
|
|
Return on average total
assets
|
(.09) %
|
.50 %
|
|
Return on average
common equity
|
(2.36)
|
7.24
|
|
Return on average
tangible common equity (b)
|
(3.01)
|
9.63
|
|
Net interest margin
(TE)
|
2.16
|
2.17
|
|
|
|
|
|
Asset quality — from
continuing operations
|
|
|
|
Net loan
charge-offs
|
$
440
|
$
244
|
|
Net loan charge-offs to
average total loans
|
.41 %
|
.21 %
|
|
|
|
|
|
Other
data
|
|
|
|
Average full-time
equivalent employees
|
16,753
|
17,692
|
|
|
|
|
|
Taxable-equivalent
adjustment
|
45
|
30
|
|
(a)
|
Earnings per share may
not foot due to rounding.
|
|
(b)
|
The following table
entitled "GAAP to Non-GAAP Reconciliations" presents the
computations of certain financial measures related to "tangible
common equity" and "cash efficiency." The table reconciles the GAAP
performance measures to the corresponding non-GAAP measures, which
provides a basis for period-to-period comparisons.
|
|
(c)
|
Represents period-end
consolidated total loans and loans held for sale divided by
period-end consolidated total deposits.
|
|
(d)
|
December 31, 2024,
ratio is estimated and reflects Key's election to adopt the CECL
optional transition provision.
|
GAAP to Non-GAAP
Reconciliations
(Dollars in millions)
The table below presents certain non-GAAP financial measures
related to "tangible common equity," "return on average tangible
common equity," "pre-provision net revenue," "cash efficiency
ratio," "adjusted taxable-equivalent revenue," "noninterest expense
adjusted for selected items," "adjusted income (loss) available
from continuing operations attributable to Key common
shareholders," and "diluted earnings per share - adjusted."
The tangible common equity ratio and the return on average
tangible common equity ratio have been a focus for some investors,
and management believes these ratios may assist investors in
analyzing Key's capital position without regard to the effects of
intangible assets and preferred stock.
The table also shows the computation for pre-provision net
revenue, which is not formally defined by GAAP. Management believes
that eliminating the effects of the provision for credit losses
makes it easier to analyze the results by presenting them on a more
comparable basis.
The cash efficiency ratio is a ratio of two non-GAAP performance
measures. As such, there is no directly comparable GAAP performance
measure. The cash efficiency ratio performance measure removes the
impact of Key's intangible asset amortization from the calculation.
Management believes this ratio provides greater consistency and
comparability between Key's results and those of its peer banks.
Additionally, this ratio is used by analysts and investors as they
develop earnings forecasts and peer bank analysis.
Adjusted taxable-equivalent revenue is a non-GAAP measure in
that it adjusts revenue for certain tax-exempt instruments and
selected items. The interest income earned on certain earning
assets is completely or partially exempt from federal income tax.
As such, these tax-exempt instruments typically yield lower returns
than taxable investments. To provide more meaningful comparisons of
net interest income, we use interest income on a taxable-equivalent
basis by increasing the interest income earned on tax-exempt assets
to make it fully equivalent to interest income earned on taxable
instruments. Additionally, management believes adjusting for the
selected items provide investors with useful information to gain a
better understanding of ongoing operations and enhance
comparability of results with prior periods, as well as demonstrate
the effects of the financial impacts related to those selected
items.
Noninterest expense adjusted for selected items is a non-GAAP
measure in that it excludes selected items. Management believes
this measure provides a greater understanding of ongoing operations
and enhances comparability of results with prior periods, as well
as demonstrates the effects on noninterest expense related to those
selected items.
Adjusted income (loss) available from continuing operations
attributable to Key common shareholders (or "adjusted net income")
and diluted earnings per share - adjusted (or "adjusted earnings
per share") are non-GAAP in that these measures exclude selected
items, net of tax. Management believes these measures provide
investors with useful information to gain a better understanding of
ongoing operations and enhance comparability of results with prior
periods, as well as demonstrate the effects of the financial
impacts related to the selected items.
Non-GAAP financial measures have inherent limitations, are not
required to be uniformly applied, and are not audited. Although
these non-GAAP financial measures are frequently used by investors
to evaluate a company, they have limitations as analytical tools,
and should not be considered in isolation, or as a substitute for
analyses of results as reported under GAAP.
|
Three months
ended
|
|
Twelve months
ended
|
|
12/31/2024
|
9/30/2024
|
12/31/2023
|
|
12/31/2024
|
12/31/2023
|
|
Tangible common
equity to tangible assets at period-end
|
|
|
|
|
|
|
|
Key shareholders'
equity (GAAP)
|
$
18,176
|
$
16,852
|
$
14,637
|
|
|
|
|
Less: Intangible
assets (a)
|
2,779
|
2,786
|
2,806
|
|
|
|
|
Preferred
Stock (b)
|
2,446
|
2,446
|
2,446
|
|
|
|
|
Tangible common equity
(non-GAAP)
|
$
12,951
|
$
11,620
|
$ 9,385
|
|
|
|
|
Total assets
(GAAP)
|
$
187,168
|
$ 189,763
|
$ 188,281
|
|
|
|
|
Less: Intangible
assets (a)
|
2,779
|
2,786
|
2,806
|
|
|
|
|
Tangible assets
(non-GAAP)
|
$
184,389
|
$ 186,977
|
$ 185,475
|
|
|
|
|
Tangible common equity
to tangible assets ratio (non-GAAP)
|
7.02 %
|
6.21 %
|
5.06 %
|
|
|
|
|
Pre-provision net
revenue
|
|
|
|
|
|
|
|
Net interest income
(GAAP)
|
$ 1,051
|
$
952
|
$
921
|
|
$
3,765
|
$
3,913
|
|
Plus:
Taxable-equivalent adjustment
|
10
|
12
|
7
|
|
45
|
30
|
|
Noninterest
income
|
(196)
|
(269)
|
610
|
|
809
|
2,470
|
|
Less: Noninterest
expense
|
1,229
|
1,094
|
1,372
|
|
4,545
|
4,734
|
|
Pre-provision net
revenue from continuing operations (non-GAAP)
|
$
(364)
|
$ (399)
|
$
166
|
|
$
74
|
$
1,513
|
|
Average tangible
common equity
|
|
|
|
|
|
|
|
Average Key
shareholders' equity (GAAP)
|
$
16,732
|
$
15,759
|
$
13,471
|
|
$
15,408
|
$
13,881
|
|
Less: Intangible
assets (average) (c)
|
2,783
|
2,789
|
2,811
|
|
2,793
|
2,831
|
|
Preferred stock
(average)
|
2,500
|
2,500
|
2,500
|
|
2,500
|
2,500
|
|
Average tangible
common equity (non-GAAP)
|
$
11,449
|
$
10,470
|
$ 8,160
|
|
$
10,115
|
$
8,689
|
|
Return on average
tangible common equity from continuing operations
|
|
|
|
|
|
|
|
Net income (loss) from
continuing operations attributable to Key common
shareholders (GAAP)
|
$
(279)
|
$ (447)
|
$
30
|
|
$ (306)
|
$ 821
|
|
Average tangible
common equity (non-GAAP)
|
11,449
|
10,470
|
8,160
|
|
10,115
|
8,689
|
|
|
|
|
|
|
|
|
Return on average
tangible common equity from continuing operations
(non-GAAP)
|
(9.69) %
|
(16.98) %
|
1.46 %
|
|
(3.03) %
|
9.60 %
|
|
Return on average
tangible common equity consolidated
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Key common shareholders (GAAP)
|
$
(279)
|
$ (446)
|
$
30
|
|
$ (304)
|
$ 824
|
|
Average tangible
common equity (non-GAAP)
|
11,449
|
10,470
|
8,160
|
|
10,115
|
8,689
|
|
|
|
|
|
|
|
|
Return on average
tangible common equity consolidated (non-GAAP)
|
(9.69) %
|
(16.95) %
|
1.46 %
|
|
(3.01) %
|
9.63 %
|
|
GAAP to Non-GAAP
Reconciliations (continued)
|
|
(Dollars in
millions)
|
|
Three months
ended
|
|
Twelve months
ended
|
|
12/31/2024
|
9/30/2024
|
12/31/2023
|
|
12/31/2024
|
12/31/2023
|
|
Cash efficiency
ratio
|
|
|
|
|
|
|
|
Noninterest expense
(GAAP)
|
$ 1,229
|
$ 1,094
|
$ 1,372
|
|
$
4,545
|
$
4,734
|
|
Less: Intangible asset
amortization
|
7
|
7
|
10
|
|
29
|
39
|
|
Adjusted noninterest
expense (non-GAAP)
|
$ 1,222
|
$ 1,087
|
$ 1,362
|
|
$
4,516
|
$
4,695
|
|
|
|
|
|
|
|
|
Net interest income
(GAAP)
|
$ 1,051
|
$ 952
|
$ 921
|
|
$
3,765
|
$
3,913
|
|
Plus:
Taxable-equivalent adjustment
|
10
|
12
|
7
|
|
45
|
30
|
|
Net interest income TE
(non-GAAP)
|
1,061
|
964
|
928
|
|
3,810
|
3,943
|
|
Noninterest income
(GAAP)
|
(196)
|
(269)
|
610
|
|
809
|
2,470
|
|
Total
taxable-equivalent revenue (non-GAAP)
|
$
865
|
$ 695
|
$ 1,538
|
|
$
4,619
|
$
6,413
|
|
|
|
|
|
|
|
|
Cash efficiency ratio
(non-GAAP)
|
141.3 %
|
156.4 %
|
88.6 %
|
|
97.8 %
|
73.2 %
|
|
|
|
|
|
|
|
|
Adjusted
taxable-equivalent revenue
|
|
|
|
|
|
|
|
Noninterest income
(GAAP)
|
$
(196)
|
$ (269)
|
$ 610
|
|
$
809
|
$
2,470
|
|
Plus: Selected
items(d)
|
918
|
918
|
—
|
|
1,836
|
—
|
|
Adjusted noninterest
income (non-GAAP)
|
$
722
|
$ 649
|
$ 610
|
|
$
2,645
|
$
2,470
|
|
Net interest income TE
(non-GAAP)
|
1,061
|
964
|
928
|
|
3,810
|
3,943
|
|
Total adjusted
taxable-equivalent revenue (non-GAAP)
|
$ 1,783
|
$ 1,613
|
$ 1,538
|
|
$
6,455
|
$
6,413
|
|
Noninterest expense
adjusted for selected items
|
|
|
|
|
|
|
|
Noninterest expense
(GAAP)
|
$ 1,229
|
$ 1,094
|
$ 1,372
|
|
$
4,545
|
$
4,734
|
|
Plus: Selected
items(d)
|
3
|
6
|
(275)
|
|
(25)
|
(339)
|
|
Noninterest expense
adjusted for selected items (non-GAAP)
|
$ 1,232
|
$ 1,100
|
$ 1,097
|
|
$
4,520
|
$
4,395
|
|
Adjusted income
(loss) available from continuing operations attributable to
Key common shareholders
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations attributable to Key common shareholders
(GAAP)
|
$
(279)
|
$ (447)
|
$
30
|
|
$ (306)
|
$ 821
|
|
Plus: Selected items
(net of tax)(d)
|
657
|
732
|
209
|
|
1,415
|
258
|
|
Adjusted income (loss)
available from continuing operations attributable to
Key common shareholders (non-GAAP)
|
$
378
|
$ 285
|
$ 239
|
|
$
1,109
|
$
1,079
|
|
Diluted earnings per
common share (EPS) - adjusted
|
|
|
|
|
|
|
|
Diluted EPS from
continuing operations attributable to Key common shareholders
(GAAP)
|
$
(.28)
|
$
(.47)
|
$
.03
|
|
$
(.32)
|
$ .88
|
|
Plus: EPS impact of
selected items(d)
|
.66
|
.77
|
.22
|
|
1.48
|
.27
|
|
Diluted EPS from
continuing operations attributable to Key common
shareholders - adjusted (non-GAAP)
|
$
.38
|
$
.30
|
$
.25
|
|
$
1.16
|
$ 1.15
|
|
(a)
|
For the three months
ended December 31, 2024, September 30, 2024, and December 31, 2023,
intangible assets exclude less than $1 million, less than $1
million, and $1 million, respectively, of period-end purchased
credit card receivables.
|
|
(b)
|
Net of capital
surplus.
|
|
(c)
|
For the three months
ended December 31, 2024, September 30, 2024, and December 31, 2023,
average intangible assets exclude less than $1 million, less than
$1 million, and $1 million, respectively, of average purchased
credit card receivables.
|
|
(d)
|
Additional detail
provided in Selected Items table on page 25
|
|
GAAP = U.S. generally
accepted accounting principles
|
|
Consolidated Balance
Sheets
|
|
(Dollars in
millions)
|
|
|
|
|
|
|
|
|
|
12/31/2024
|
9/30/2024
|
12/31/2023
|
|
Assets
|
|
|
|
|
Loans
|
$
104,260
|
$
105,346
|
$
112,606
|
|
Loans held for
sale
|
797
|
1,058
|
483
|
|
Securities available
for sale
|
37,707
|
34,169
|
37,185
|
|
Held-to-maturity
securities
|
7,395
|
7,702
|
8,575
|
|
Trading account
assets
|
1,283
|
1,404
|
1,142
|
|
Short-term
investments
|
17,504
|
22,796
|
10,817
|
|
Other
investments
|
1,041
|
1,117
|
1,244
|
|
|
Total earning
assets
|
169,987
|
173,592
|
172,052
|
|
Allowance for loan and
lease losses
|
(1,409)
|
(1,494)
|
(1,508)
|
|
Cash and due from
banks
|
1,743
|
1,276
|
941
|
|
Premises and
equipment
|
614
|
624
|
661
|
|
Goodwill
|
2,752
|
2,752
|
2,752
|
|
Other intangible
assets
|
27
|
34
|
55
|
|
Corporate-owned life
insurance
|
4,394
|
4,379
|
4,383
|
|
Accrued income and
other assets
|
8,797
|
8,323
|
8,601
|
|
Discontinued
assets
|
263
|
277
|
344
|
|
|
Total
assets
|
$
187,168
|
$
189,763
|
$
188,281
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
Deposits in domestic
offices:
|
|
|
|
|
|
Interest-bearing
deposits
|
$
120,132
|
$
119,995
|
$
114,859
|
|
|
Noninterest-bearing
deposits
|
29,628
|
30,358
|
30,728
|
|
|
Total
deposits
|
149,760
|
150,353
|
145,587
|
|
Federal funds purchased
and securities sold under repurchase agreements
|
14
|
44
|
38
|
|
Bank notes and other
short-term borrowings
|
2,130
|
2,359
|
3,053
|
|
Accrued expense and
other liabilities
|
4,983
|
4,478
|
5,412
|
|
Long-term
debt
|
12,105
|
15,677
|
19,554
|
|
|
Total
liabilities
|
168,992
|
172,911
|
173,644
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
Preferred
stock
|
2,500
|
2,500
|
2,500
|
|
Common
shares
|
1,257
|
1,257
|
1,257
|
|
Capital
surplus
|
6,038
|
6,149
|
6,281
|
|
Retained
earnings
|
14,584
|
15,066
|
15,672
|
|
Treasury stock, at
cost
|
(2,733)
|
(4,839)
|
(5,844)
|
|
Accumulated other
comprehensive income (loss)
|
(3,470)
|
(3,281)
|
(5,229)
|
|
|
Key shareholders'
equity
|
18,176
|
16,852
|
14,637
|
|
Total liabilities
and equity
|
$
187,168
|
$
189,763
|
$
188,281
|
|
|
|
|
|
|
|
Common shares
outstanding (000)
|
1,106,786
|
991,251
|
936,564
|
|
Consolidated
Statements of Income
|
|
(Dollars in millions,
except per share amounts)
|
|
|
|
Three months
ended
|
|
Twelve months
ended
|
|
|
|
12/31/2024
|
9/30/2024
|
12/31/2023
|
|
12/31/2024
|
12/31/2023
|
|
Interest
income
|
|
|
|
|
|
|
|
Loans
|
$
1,448
|
$
1,516
|
$
1,574
|
|
$
6,026
|
$
6,219
|
|
Loans held for
sale
|
20
|
18
|
12
|
|
60
|
61
|
|
Securities available
for sale
|
353
|
298
|
213
|
|
1,142
|
793
|
|
Held-to-maturity
securities
|
66
|
70
|
78
|
|
284
|
312
|
|
Trading account
assets
|
16
|
15
|
13
|
|
61
|
55
|
|
Short-term
investments
|
214
|
244
|
138
|
|
792
|
414
|
|
Other
investments
|
15
|
14
|
22
|
|
62
|
73
|
|
|
Total interest
income
|
2,132
|
2,175
|
2,050
|
|
8,427
|
7,927
|
|
Interest
expense
|
|
|
|
|
|
|
|
Deposits
|
821
|
887
|
754
|
|
3,307
|
2,322
|
|
Federal funds purchased
and securities sold under repurchase agreements
|
1
|
1
|
—
|
|
4
|
79
|
|
Bank notes and other
short-term borrowings
|
24
|
43
|
45
|
|
164
|
308
|
|
Long-term
debt
|
235
|
292
|
330
|
|
1,187
|
1,305
|
|
|
Total interest
expense
|
1,081
|
1,223
|
1,129
|
|
4,662
|
4,014
|
|
Net interest
income
|
1,051
|
952
|
921
|
|
3,765
|
3,913
|
|
Provision for credit
losses
|
39
|
95
|
102
|
|
335
|
489
|
|
Net interest income
after provision for credit losses
|
1,012
|
857
|
819
|
|
3,430
|
3,424
|
|
Noninterest
income
|
|
|
|
|
|
|
|
Trust and investment
services income
|
142
|
140
|
132
|
|
557
|
516
|
|
Investment banking and
debt placement fees
|
221
|
171
|
136
|
|
688
|
542
|
|
Cards and payments
income
|
85
|
84
|
84
|
|
331
|
340
|
|
Service charges on
deposit accounts
|
65
|
67
|
65
|
|
261
|
270
|
|
Corporate services
income
|
69
|
69
|
67
|
|
275
|
302
|
|
Commercial mortgage
servicing fees
|
68
|
73
|
48
|
|
258
|
190
|
|
Corporate-owned life
insurance income
|
36
|
36
|
36
|
|
138
|
132
|
|
Consumer mortgage
income
|
16
|
12
|
11
|
|
58
|
51
|
|
Operating lease income
and other leasing gains
|
15
|
16
|
22
|
|
76
|
92
|
|
Other income
|
(5)
|
(2)
|
13
|
|
23
|
46
|
|
Net securities gains
(losses)
|
(908)
|
(935)
|
(4)
|
|
(1,856)
|
(11)
|
|
|
Total noninterest
income
|
(196)
|
(269)
|
610
|
|
809
|
2,470
|
|
Noninterest
expense
|
|
|
|
|
|
|
|
Personnel
|
734
|
670
|
674
|
|
2,714
|
2,660
|
|
Net
occupancy
|
67
|
66
|
65
|
|
266
|
267
|
|
Computer
processing
|
107
|
104
|
92
|
|
414
|
368
|
|
Business services and
professional fees
|
55
|
41
|
44
|
|
174
|
168
|
|
Equipment
|
20
|
20
|
24
|
|
80
|
88
|
|
Operating lease
expense
|
15
|
14
|
18
|
|
63
|
77
|
|
Marketing
|
33
|
21
|
31
|
|
94
|
109
|
|
Other
expense
|
198
|
158
|
424
|
|
740
|
997
|
|
|
Total noninterest
expense
|
1,229
|
1,094
|
1,372
|
|
4,545
|
4,734
|
|
Income (loss) from
continuing operations before income taxes
|
(413)
|
(506)
|
57
|
|
(306)
|
1,160
|
|
Income taxes
(benefit)
|
(169)
|
(95)
|
(8)
|
|
(143)
|
196
|
|
Income (loss) from
continuing operations
|
(244)
|
(411)
|
65
|
|
(163)
|
964
|
|
Income (loss) from
discontinued operations, net of taxes
|
—
|
1
|
—
|
|
2
|
3
|
|
Net income
(loss)
|
$
(244)
|
$
(410)
|
$
65
|
|
$
(161)
|
$
967
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations attributable to Key common
shareholders
|
$
(279)
|
$
(447)
|
$
30
|
|
$
(306)
|
$
821
|
|
Net income (loss)
attributable to Key common shareholders
|
(279)
|
(446)
|
30
|
|
(304)
|
824
|
|
Per common
share
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations attributable to Key common
shareholders
|
$
(.28)
|
$
(.47)
|
$
.03
|
|
$
(.32)
|
$
.88
|
|
Income (loss) from
discontinued operations, net of taxes
|
—
|
—
|
—
|
|
—
|
—
|
|
Net income (loss)
attributable to Key common shareholders (a)
|
(.28)
|
(.47)
|
.03
|
|
(.32)
|
.89
|
|
Per common share —
assuming dilution
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations attributable to Key common
shareholders
|
$
(.28)
|
$
(.47)
|
$
.03
|
|
$
(.32)
|
$
.88
|
|
Income (loss) from
discontinued operations, net of taxes
|
—
|
—
|
—
|
|
—
|
—
|
|
Net income (loss)
attributable to Key common
shareholders (a)
|
(.28)
|
(.47)
|
.03
|
|
(.32)
|
.88
|
|
|
|
|
|
|
|
|
|
|
Cash dividends declared
per common share
|
$
.205
|
$
.205
|
$
.205
|
|
$
.820
|
$
.820
|
|
|
|
|
|
|
|
|
|
|
Weighted-average common
shares outstanding (000)
|
986,829
|
948,979
|
927,517
|
|
949,561
|
927,217
|
|
Effect of common share
options and other stock awards(b)
|
—
|
—
|
6,529
|
|
—
|
5,542
|
|
Weighted-average common
shares and potential common shares outstanding
(000) (c)
|
986,829
|
948,979
|
934,046
|
|
949,561
|
932,759
|
|
(a)
|
Earnings per share may
not foot due to rounding.
|
|
(b)
|
For periods ended in a
loss from continuing operations attributable to Key common
shareholders, anti-dilutive instruments have been excluded from the
calculation of diluted earnings per share.
|
|
(c)
|
Assumes conversion of
common share options and other stock awards, as
applicable.
|
|
Consolidated Average
Balance Sheets, and Net Interest Income and Yields/Rates From
Continuing Operations
|
|
(Dollars in
millions)
|
|
|
Fourth Quarter
2024
|
|
Third Quarter
2024
|
|
Fourth Quarter
2023
|
|
|
Average
|
|
Yield/
|
|
Average
|
|
Yield/
|
|
Average
|
|
Yield/
|
|
|
Balance
|
Interest
(a)
|
Rate (a)
|
|
Balance
|
Interest
(a)
|
Rate (a)
|
|
Balance
|
Interest
(a)
|
Rate (a)
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans: (b),
(c)
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and
industrial (d)
|
$
52,887
|
$
817
|
6.15 %
|
|
$
53,121
|
$
847
|
6.34 %
|
|
$
56,664
|
$
870
|
6.09 %
|
|
Real estate —
commercial mortgage
|
13,343
|
202
|
6.01
|
|
13,864
|
225
|
6.46
|
|
15,346
|
234
|
6.05
|
|
Real estate —
construction
|
3,033
|
55
|
7.23
|
|
3,077
|
59
|
7.65
|
|
3,028
|
54
|
7.05
|
|
Commercial lease
financing
|
2,826
|
24
|
3.51
|
|
2,988
|
26
|
3.46
|
|
3,568
|
30
|
3.34
|
|
Total commercial
loans
|
72,089
|
1,098
|
6.07
|
|
73,050
|
1,157
|
6.30
|
|
78,606
|
1,188
|
6.00
|
|
Real estate —
residential mortgage
|
19,990
|
166
|
3.32
|
|
20,215
|
167
|
3.30
|
|
21,113
|
174
|
3.30
|
|
Home equity
loans
|
6,445
|
93
|
5.75
|
|
6,634
|
100
|
5.98
|
|
7,227
|
108
|
5.93
|
|
Other consumer
loans
|
5,256
|
67
|
5.08
|
|
5,426
|
69
|
5.08
|
|
6,015
|
75
|
4.94
|
|
Credit cards
|
931
|
34
|
14.36
|
|
919
|
35
|
15.22
|
|
987
|
36
|
14.47
|
|
Total consumer
loans
|
32,622
|
360
|
4.40
|
|
33,194
|
371
|
4.46
|
|
35,342
|
393
|
4.43
|
|
Total loans
|
104,711
|
1,458
|
5.55
|
|
106,244
|
1,528
|
5.73
|
|
113,948
|
1,581
|
5.51
|
|
Loans held for
sale
|
1,327
|
20
|
6.05
|
|
1,098
|
18
|
6.54
|
|
695
|
12
|
6.85
|
|
Securities available
for sale (b), (e)
|
37,952
|
353
|
3.38
|
|
36,700
|
298
|
2.87
|
|
35,576
|
213
|
1.99
|
|
Held-to-maturity
securities (b)
|
7,541
|
66
|
3.50
|
|
7,838
|
70
|
3.58
|
|
8,714
|
78
|
3.56
|
|
Trading account
assets
|
1,215
|
16
|
4.98
|
|
1,142
|
15
|
5.08
|
|
1,104
|
13
|
4.93
|
|
Short-term
investments
|
17,575
|
214
|
4.83
|
|
17,773
|
244
|
5.47
|
|
9,571
|
138
|
5.72
|
|
Other investments
(e)
|
1,045
|
15
|
5.72
|
|
1,193
|
14
|
4.77
|
|
1,297
|
22
|
6.91
|
|
Total earning
assets
|
171,366
|
2,142
|
4.87
|
|
171,988
|
2,187
|
4.93
|
|
170,905
|
2,057
|
4.60
|
|
Allowance for loan and
lease losses
|
(1,486)
|
|
|
|
(1,533)
|
|
|
|
(1,484)
|
|
|
|
Accrued income and
other assets
|
17,308
|
|
|
|
17,154
|
|
|
|
17,471
|
|
|
|
Discontinued
assets
|
268
|
|
|
|
284
|
|
|
|
351
|
|
|
|
Total
assets
|
$
187,456
|
|
|
|
$
187,893
|
|
|
|
$
187,243
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
Money market
deposits
|
$
40,676
|
$
283
|
2.77 %
|
|
$
40,379
|
$
309
|
3.04 %
|
|
$
36,648
|
$
251
|
2.72 %
|
|
Demand
deposits
|
57,653
|
341
|
2.35
|
|
56,087
|
365
|
2.59
|
|
56,963
|
348
|
2.42
|
|
Savings
deposits
|
4,635
|
1
|
.07
|
|
4,967
|
3
|
.22
|
|
5,492
|
1
|
.05
|
|
Time
deposits
|
17,641
|
196
|
4.43
|
|
17,870
|
210
|
4.68
|
|
14,326
|
154
|
4.26
|
|
Total interest-bearing
deposits
|
120,605
|
821
|
2.71
|
|
119,303
|
887
|
2.96
|
|
113,429
|
754
|
2.63
|
|
Federal funds purchased
and securities sold
under repurchase agreements
|
84
|
1
|
3.99
|
|
98
|
1
|
4.48
|
|
56
|
—
|
2.29
|
|
Bank notes and other
short-term borrowings
|
1,832
|
24
|
5.19
|
|
3,172
|
43
|
5.44
|
|
3,199
|
45
|
5.62
|
|
Long-term debt
(f)
|
13,984
|
235
|
6.70
|
|
16,422
|
292
|
7.09
|
|
19,921
|
330
|
6.64
|
|
Total interest-bearing
liabilities
|
136,505
|
1,081
|
3.15
|
|
138,995
|
1,223
|
3.50
|
|
136,605
|
1,129
|
3.29
|
|
Noninterest-bearing
deposits
|
29,128
|
|
|
|
28,468
|
|
|
|
31,647
|
|
|
|
Accrued expense and
other liabilities
|
4,823
|
|
|
|
4,387
|
|
|
|
5,169
|
|
|
|
Discontinued
liabilities (f)
|
268
|
|
|
|
284
|
|
|
|
351
|
|
|
|
Total
liabilities
|
$
170,724
|
|
|
|
$
172,134
|
|
|
|
$
173,772
|
|
|
|
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
equity
|
$
16,732
|
|
|
|
$
15,759
|
|
|
|
$
13,471
|
|
|
|
Total liabilities
and equity
|
$
187,456
|
|
|
|
$
187,893
|
|
|
|
$
187,243
|
|
|
|
Interest rate spread
(TE)
|
|
|
1.72 %
|
|
|
|
1.43 %
|
|
|
|
1.31 %
|
|
Net interest income
(TE) and net interest margin (TE)
|
|
$
1,061
|
2.41 %
|
|
|
$
964
|
2.17 %
|
|
|
$
928
|
2.07 %
|
|
TE adjustment
(b)
|
|
10
|
|
|
|
12
|
|
|
|
7
|
|
|
Net interest income,
GAAP basis
|
|
$
1,051
|
|
|
|
$
952
|
|
|
|
$
921
|
|
|
(a)
|
Results are from
continuing operations. Interest excludes the interest associated
with the liabilities referred to in (f) below, calculated using a
matched funds transfer pricing methodology.
|
|
(b)
|
Interest income on
tax-exempt securities and loans has been adjusted to a
taxable-equivalent basis using the statutory federal income tax
rate of 21% for the three months ended December 31, 2024, September
30, 2024, and December 31, 2023.
|
|
(c)
|
For purposes of these
computations, nonaccrual loans are included in average loan
balances.
|
|
(d)
|
Commercial and
industrial average balances include $216 million, $215 million, and
$210 million of assets from commercial credit cards for the three
months ended December 31, 2024, September 30, 2024, and December
31, 2023, respectively.
|
|
(e)
|
Yield presented is
calculated on the basis of amortized cost excluding fair value
hedge basis adjustments. The average amortized cost for securities
available for sale was $41.8 billion, $41.6 billion, and $42.6
billion for the three months ended December 31, 2024, September 30,
2024, and December 31, 2023, respectively. Yield based on the fair
value of securities available for sale was 3.73%, 3.25%, and 2.39%
for the three months ended December 31, 2024, September 30, 2024,
and December 31, 2023, respectively.
|
|
(f)
|
A portion of long-term
debt and the related interest expense is allocated to discontinued
liabilities as a result of applying Key's matched funds transfer
pricing methodology to discontinued operations.
|
|
TE = Taxable
Equivalent, GAAP = U.S. generally accepted accounting
principles.
|
|
Consolidated Average
Balance Sheets, and Net Interest Income and Yields/Rates From
Continuing Operations
|
|
(Dollars in
millions)
|
|
|
Twelve months ended
December 31,
2024
|
|
Twelve months ended
December 31,
2023
|
|
|
Average
|
|
Yield/
|
|
Average
|
|
Yield/
|
|
|
Balance
|
Interest
(a)
|
Rate (a)
|
|
Balance
|
Interest
(a)
|
Rate (a)
|
|
Assets
|
|
|
|
|
|
|
|
|
Loans: (b),
(c)
|
|
|
|
|
|
|
|
|
Commercial and
industrial (d)
|
$
53,951
|
$
3,378
|
6.26 %
|
|
$
59,379
|
$
3,444
|
5.80 %
|
|
Real estate —
commercial mortgage
|
14,080
|
873
|
6.20
|
|
15,968
|
931
|
5.83
|
|
Real estate —
construction
|
3,042
|
227
|
7.48
|
|
2,755
|
185
|
6.71
|
|
Commercial lease
financing
|
3,087
|
105
|
3.41
|
|
3,703
|
116
|
3.13
|
|
Total commercial
loans
|
74,160
|
4,583
|
6.18
|
|
81,805
|
4,676
|
5.72
|
|
Real estate —
residential mortgage
|
20,382
|
674
|
3.31
|
|
21,428
|
699
|
3.26
|
|
Home equity
loans
|
6,729
|
398
|
5.92
|
|
7,522
|
433
|
5.76
|
|
Other consumer
loans
|
5,519
|
278
|
5.04
|
|
6,263
|
305
|
4.86
|
|
Credit cards
|
934
|
138
|
14.78
|
|
986
|
136
|
13.88
|
|
Total consumer
loans
|
33,564
|
1,488
|
4.43
|
|
36,199
|
1,573
|
4.35
|
|
Total loans
|
107,724
|
6,071
|
5.64
|
|
118,004
|
6,249
|
5.30
|
|
Loans held for
sale
|
979
|
60
|
6.11
|
|
1,012
|
61
|
6.06
|
|
Securities available
for sale (b), (e)
|
37,127
|
1,142
|
2.71
|
|
37,718
|
793
|
1.80
|
|
Held-to-maturity
securities (b)
|
7,980
|
284
|
3.56
|
|
9,008
|
312
|
3.46
|
|
Trading account
assets
|
1,175
|
61
|
5.16
|
|
1,138
|
55
|
4.85
|
|
Short-term
investments
|
14,846
|
792
|
5.33
|
|
7,349
|
414
|
5.63
|
|
Other investments
(e)
|
1,177
|
62
|
5.25
|
|
1,392
|
73
|
5.28
|
|
Total earning
assets
|
171,008
|
8,472
|
4.81
|
|
175,621
|
7,957
|
4.37
|
|
Allowance for loan and
lease losses
|
(1,515)
|
|
|
|
(1,419)
|
|
|
|
Accrued income and
other assets
|
17,322
|
|
|
|
17,425
|
|
|
|
Discontinued
assets
|
296
|
|
|
|
384
|
|
|
|
Total
assets
|
$
187,111
|
|
|
|
$
192,011
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
Money market
deposits
|
$
39,525
|
$
1,146
|
2.90 %
|
|
$
34,539
|
$
666
|
1.93 %
|
|
Other demand
deposits
|
56,130
|
1,402
|
2.50
|
|
54,711
|
1,102
|
2.01
|
|
Savings
deposits
|
5,010
|
7
|
.14
|
|
6,343
|
3
|
.04
|
|
Time
deposits
|
16,497
|
752
|
4.56
|
|
13,794
|
551
|
4.00
|
|
Total interest-bearing
deposits
|
117,162
|
3,307
|
2.82
|
|
109,387
|
2,322
|
2.12
|
|
Federal funds purchased
and securities sold under repurchase agreements
|
103
|
4
|
4.35
|
|
1,647
|
79
|
4.81
|
|
Bank notes and other
short-term borrowings
|
2,984
|
164
|
5.49
|
|
5,890
|
308
|
5.24
|
|
Long-term debt
(f)
|
17,279
|
1,187
|
6.87
|
|
20,983
|
1,305
|
6.22
|
|
Total interest-bearing
liabilities
|
137,528
|
4,662
|
3.39
|
|
137,907
|
4,014
|
2.91
|
|
Noninterest-bearing
deposits
|
28,993
|
|
|
|
34,672
|
|
|
|
Accrued expense and
other liabilities
|
4,886
|
|
|
|
5,167
|
|
|
|
Discontinued
liabilities (f)
|
296
|
|
|
|
384
|
|
|
|
Total
liabilities
|
$
171,703
|
|
|
|
$
178,130
|
|
|
|
Equity
|
|
|
|
|
|
|
|
|
Total
equity
|
$
15,408
|
|
|
|
$
13,881
|
|
|
|
Total liabilities
and equity
|
$
187,111
|
|
|
|
$
192,011
|
|
|
|
Interest rate spread
(TE)
|
|
|
1.42 %
|
|
|
|
1.46 %
|
|
Net interest income
(TE) and net interest margin (TE)
|
|
$
3,810
|
2.16 %
|
|
|
$
3,943
|
2.17 %
|
|
TE adjustment
(b)
|
|
45
|
|
|
|
30
|
|
|
Net interest income,
GAAP basis
|
|
$
3,765
|
|
|
|
$
3,913
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Results are from
continuing operations. Interest excludes the interest
associated with the liabilities referred to in (f) below,
calculated using a matched funds transfer pricing
methodology.
|
|
(b)
|
Interest income on
tax-exempt securities and loans has been adjusted to a
taxable-equivalent basis using the statutory federal income tax
rate of 21% for the twelve months ended December 31, 2024, and
December 31, 2023, respectively.
|
|
(c)
|
For purposes of these
computations, nonaccrual loans are included in average loan
balances.
|
|
(d)
|
Commercial and
industrial average balances include $215 million and $196 million
of assets from commercial credit cards for the twelve months ended
December 31, 2024, and December 31, 2023, respectively.
|
|
(e)
|
Yield presented is
calculated on the basis of amortized cost excluding fair value
hedge basis adjustments. The average amortized cost for securities
available for sale was $42.2 billion and $44.0 billion for the
twelve months ended December 31, 2024, and December 31, 2023,
respectively. Yield based on the fair value of securities available
for sale was 3.08% and 2.10% for the twelve months ended December
31, 2024, and December 31, 2023, respectively.
|
|
(f)
|
A portion of long-term
debt and the related interest expense is allocated to discontinued
liabilities as a result of applying Key's matched funds transfer
pricing methodology to discontinued operations.
|
|
TE = Taxable
Equivalent, GAAP = U.S. generally accepted accounting
principles
|
|
Noninterest
Expense
|
|
(Dollars in
millions)
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Twelve months
ended
|
|
12/31/2024
|
9/30/2024
|
12/31/2023
|
|
12/31/2024
|
12/31/2023
|
|
Personnel
(a)
|
$
734
|
$
670
|
$
674
|
|
$
2,714
|
$
2,660
|
|
Net
occupancy
|
67
|
66
|
65
|
|
266
|
267
|
|
Computer
processing
|
107
|
104
|
92
|
|
414
|
368
|
|
Business services and
professional fees
|
55
|
41
|
44
|
|
174
|
168
|
|
Equipment
|
20
|
20
|
24
|
|
80
|
88
|
|
Operating lease
expense
|
15
|
14
|
18
|
|
63
|
77
|
|
Marketing
|
33
|
21
|
31
|
|
94
|
109
|
|
Other
expense
|
198
|
158
|
424
|
|
740
|
997
|
|
Total noninterest
expense
|
$
1,229
|
$
1,094
|
$
1,372
|
|
$
4,545
|
$
4,734
|
|
Average full-time
equivalent employees (b)
|
16,810
|
16,805
|
17,129
|
|
16,753
|
17,692
|
|
(a)
|
Additional detail
provided in Personnel Expense table below.
|
|
(b)
|
The number of average
full-time equivalent employees has not been adjusted for
discontinued operations.
|
|
Personnel
Expense
|
|
(Dollars in
millions)
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Twelve months
ended
|
|
12/31/2024
|
9/30/2024
|
12/31/2023
|
|
12/31/2024
|
12/31/2023
|
|
Salaries and contract
labor
|
$
418
|
$
408
|
$
399
|
|
$
1,609
|
$
1,649
|
|
Incentive and
stock-based compensation
|
197
|
162
|
139
|
|
661
|
525
|
|
Employee
benefits
|
119
|
99
|
97
|
|
442
|
405
|
|
Severance
|
—
|
1
|
39
|
|
2
|
81
|
|
Total personnel
expense
|
$
734
|
$
670
|
$
674
|
|
$
2,714
|
$
2,660
|
|
Loan
Composition
|
|
(Dollars in
millions)
|
|
|
|
|
|
|
|
|
|
|
Change 12/31/2024
vs.
|
|
12/31/2024
|
9/30/2024
|
12/31/2023
|
|
9/30/2024
|
12/31/2023
|
|
Commercial and
industrial (a)(b)
|
$
52,909
|
$
52,774
|
$
55,815
|
|
.3 %
|
(5.2) %
|
|
Commercial real
estate:
|
|
|
|
|
|
|
|
Commercial
mortgage
|
13,310
|
13,637
|
15,187
|
|
(2.4)
|
(12.4)
|
|
Construction
|
2,936
|
3,093
|
3,066
|
|
(5.1)
|
(4.2)
|
|
Total commercial real
estate loans
|
16,246
|
16,730
|
18,253
|
|
(2.9)
|
(11.0)
|
|
Commercial lease
financing (b)
|
2,736
|
2,913
|
3,523
|
|
(6.1)
|
(22.3)
|
|
Total commercial
loans
|
71,891
|
72,417
|
77,591
|
|
(.7)
|
(7.3)
|
|
Residential — prime
loans:
|
|
|
|
|
|
|
|
Real estate —
residential mortgage
|
19,886
|
20,122
|
20,958
|
|
(1.2)
|
(5.1)
|
|
Home equity
loans
|
6,358
|
6,555
|
7,139
|
|
(3.0)
|
(10.9)
|
|
Total residential —
prime loans
|
26,244
|
26,677
|
28,097
|
|
(1.6)
|
(6.6)
|
|
Other consumer
loans
|
5,167
|
5,338
|
5,916
|
|
(3.2)
|
(12.7)
|
|
Credit cards
|
958
|
914
|
1,002
|
|
4.8
|
(4.4)
|
|
Total consumer
loans
|
32,369
|
32,929
|
35,015
|
|
(1.7)
|
(7.6)
|
|
Total loans (c),
(d)
|
$
104,260
|
$ 105,346
|
$ 112,606
|
|
(1.0) %
|
(7.4) %
|
|
(a)
|
Loan balances include
$212 million, $219 million, and $207 million of commercial credit
card balances at December 31, 2024, September 30, 2024, and
December 31, 2023, respectively.
|
|
(b)
|
Commercial and
industrial includes receivables held as collateral for a secured
borrowing of $211 million at December 31, 2024, $261 million at
September 30, 2024 and no amounts held as collateral for a secured
borrowing at December 31, 2023. Commercial lease financing includes
receivables held as collateral for a secured borrowing of $3
million, $3 million, and $7 million at December 31, 2024, September
30, 2024, and December 31, 2023, respectively. Principal reductions
are based on the cash payments received from these related
receivables.
|
|
(c)
|
Total loans exclude
loans of $257 million at December 31, 2024, $272 million at
September 30, 2024, and $339 million at December 31, 2023, related
to the discontinued operations of the education lending
business.
|
|
(d)
|
Accrued interest of
$456 million, $480 million, and $522 million at December 31, 2024,
September 30, 2024, and December 31, 2023, respectively, presented
in "other assets" on the Consolidated Balance Sheets is excluded
from the amortized cost basis disclosed in this table.
|
|
Loans Held for Sale
Composition
|
|
(Dollars in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
Change 12/31/2024
vs.
|
|
12/31/2024
|
9/30/2024
|
12/31/2023
|
|
9/30/2024
|
12/31/2023
|
|
Commercial and
industrial
|
$
88
|
$
250
|
$
50
|
|
(64.8) %
|
76.0 %
|
|
Real estate —
commercial mortgage
|
616
|
747
|
382
|
|
(17.5)
|
61.3
|
|
Real estate —
residential mortgage
|
93
|
61
|
51
|
|
52.5
|
82.4
|
|
Total loans held for
sale
|
$
797
|
$
1,058
|
$
483
|
|
(24.7) %
|
65.0 %
|
|
Summary of Changes
in Loans Held for Sale
|
|
(Dollars in
millions)
|
|
|
|
|
|
|
|
4Q24
|
3Q24
|
2Q24
|
1Q24
|
4Q23
|
|
Balance at beginning of
period
|
$
1,058
|
$
517
|
$
228
|
$
483
|
$
730
|
|
New
originations
|
2,915
|
2,473
|
1,532
|
1,738
|
1,879
|
|
Transfers from (to)
held to maturity, net
|
—
|
(16)
|
(1)
|
(105)
|
(31)
|
|
Loan sales
|
(3,039)
|
(1,889)
|
(1,234)
|
(1,893)
|
(2,095)
|
|
Loan draws (payments),
net
|
(136)
|
(28)
|
(7)
|
4
|
—
|
|
Valuation and other
adjustments
|
(1)
|
1
|
(1)
|
1
|
—
|
|
Balance at end of
period
|
$
797
|
$
1,058
|
$
517
|
$
228
|
$
483
|
|
Summary of Loan and
Lease Loss Experience From Continuing Operations
|
|
(Dollars in
millions)
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Twelve months
ended
|
|
12/31/2024
|
9/30/2024
|
12/31/2023
|
|
12/31/2024
|
12/31/2023
|
|
Average loans
outstanding
|
$
104,711
|
$ 106,244
|
$ 113,948
|
|
$
107,724
|
$ 118,004
|
|
Allowance for loan and
lease losses at the beginning of the period
|
$ 1,494
|
$ 1,547
|
$ 1,488
|
|
$
1,508
|
$
1,337
|
|
Loans charged
off:
|
|
|
|
|
|
|
|
Commercial and
industrial
|
84
|
131
|
49
|
|
363
|
188
|
|
|
|
|
|
|
|
|
Real estate —
commercial mortgage
|
18
|
7
|
24
|
|
40
|
39
|
|
Real estate —
construction
|
—
|
—
|
—
|
|
—
|
—
|
|
Total commercial real
estate loans
|
18
|
7
|
24
|
|
40
|
39
|
|
Commercial lease
financing
|
1
|
—
|
—
|
|
7
|
—
|
|
Total commercial
loans
|
103
|
138
|
73
|
|
410
|
227
|
|
Real estate —
residential mortgage
|
1
|
—
|
—
|
|
3
|
1
|
|
Home equity
loans
|
—
|
1
|
(2)
|
|
2
|
2
|
|
Other consumer
loans
|
15
|
17
|
14
|
|
64
|
51
|
|
Credit
cards
|
12
|
11
|
10
|
|
47
|
37
|
|
Total consumer
loans
|
28
|
29
|
22
|
|
116
|
91
|
|
Total loans charged
off
|
131
|
167
|
95
|
|
526
|
318
|
|
Recoveries:
|
|
|
|
|
|
|
|
Commercial and
industrial
|
12
|
7
|
11
|
|
58
|
44
|
|
|
|
|
|
|
|
|
Real estate —
commercial mortgage
|
—
|
1
|
1
|
|
2
|
2
|
|
Real estate —
construction
|
—
|
—
|
1
|
|
—
|
1
|
|
Total commercial real
estate loans
|
—
|
1
|
2
|
|
2
|
3
|
|
Commercial lease
financing
|
—
|
—
|
1
|
|
5
|
5
|
|
Total commercial
loans
|
12
|
8
|
14
|
|
65
|
52
|
|
Real estate —
residential mortgage
|
1
|
1
|
1
|
|
5
|
4
|
|
Home equity
loans
|
—
|
1
|
—
|
|
2
|
3
|
|
Other consumer
loans
|
2
|
2
|
1
|
|
8
|
8
|
|
Credit
cards
|
2
|
1
|
3
|
|
6
|
7
|
|
Total consumer
loans
|
5
|
5
|
5
|
|
21
|
22
|
|
Total
recoveries
|
17
|
13
|
19
|
|
86
|
74
|
|
Net loan
charge-offs
|
(114)
|
(154)
|
(76)
|
|
(440)
|
(244)
|
|
Provision (credit) for
loan and lease losses
|
29
|
101
|
96
|
|
341
|
415
|
|
Allowance for loan and
lease losses at end of period
|
$ 1,409
|
$ 1,494
|
$ 1,508
|
|
$
1,409
|
$
1,508
|
|
|
|
|
|
|
|
|
Liability for credit
losses on lending-related commitments at beginning of
period
|
$
280
|
$ 286
|
$ 290
|
|
$
296
|
$ 225
|
|
Provision (credit) for
losses on lending-related commitments
|
10
|
(6)
|
6
|
|
(6)
|
74
|
|
Other
|
—
|
—
|
—
|
|
—
|
(3)
|
|
Liability for credit
losses on lending-related commitments at end of period
(a)
|
$
290
|
$ 280
|
$ 296
|
|
$
290
|
$ 296
|
|
|
|
|
|
|
|
|
Total allowance for
credit losses at end of period
|
$ 1,699
|
$ 1,774
|
$ 1,804
|
|
$
1,699
|
$
1,804
|
|
|
|
|
|
|
|
|
Net loan charge-offs to
average total loans
|
.43 %
|
.58 %
|
.26 %
|
|
.41 %
|
.21 %
|
|
Allowance for loan and
lease losses to period-end loans
|
1.35
|
1.42
|
1.34
|
|
1.35
|
1.34
|
|
Allowance for credit
losses to period-end loans
|
1.63
|
1.68
|
1.60
|
|
1.63
|
1.60
|
|
Allowance for loan and
lease losses to nonperforming loans
|
186
|
205
|
263
|
|
186
|
263
|
|
Allowance for credit
losses to nonperforming loans
|
224
|
244
|
314
|
|
224
|
314
|
|
|
|
|
|
|
|
|
Discontinued operations
— education lending business:
|
|
|
|
|
|
|
|
Loans charged
off
|
$
1
|
$
1
|
$
1
|
|
$
4
|
$
4
|
|
Recoveries
|
—
|
—
|
—
|
|
1
|
1
|
|
Net loan
charge-offs
|
$
(1)
|
$
(1)
|
$
(1)
|
|
$
(3)
|
$
(3)
|
|
(a)
|
Included in "Accrued
expense and other liabilities" on the balance sheet.
|
|
Asset Quality
Statistics From Continuing Operations
|
|
(Dollars in
millions)
|
|
4Q24
|
3Q24
|
2Q24
|
1Q24
|
4Q23
|
|
Net loan
charge-offs
|
$
114
|
$ 154
|
$
91
|
$
81
|
$
76
|
|
Net loan charge-offs to
average total loans
|
.43 %
|
.58 %
|
.34 %
|
.29 %
|
.26 %
|
|
Allowance for loan and
lease losses
|
$
1,409
|
$
1,494
|
$
1,547
|
$
1,542
|
$
1,508
|
|
Allowance for credit
losses (a)
|
1,699
|
1,774
|
1,833
|
1,823
|
1,804
|
|
Allowance for loan and
lease losses to period-end loans
|
1.35 %
|
1.42 %
|
1.44 %
|
1.40 %
|
1.34 %
|
|
Allowance for credit
losses to period-end loans
|
1.63
|
1.68
|
1.71
|
1.66
|
1.60
|
|
Allowance for loan and
lease losses to nonperforming loans
|
186
|
205
|
218
|
234
|
263
|
|
Allowance for credit
losses to nonperforming loans
|
224
|
244
|
258
|
277
|
314
|
|
Nonperforming loans at
period end
|
$
758
|
$ 728
|
$ 710
|
$ 658
|
$ 574
|
|
Nonperforming assets at
period end
|
772
|
741
|
727
|
674
|
591
|
|
Nonperforming loans to
period-end portfolio loans
|
.73 %
|
.69 %
|
.66 %
|
.60 %
|
.51 %
|
|
Nonperforming assets to
period-end portfolio loans plus OREO and other nonperforming
assets
|
.74
|
.70
|
.68
|
.61
|
.52
|
|
(a)
|
Includes the allowance
for loan and lease losses plus the liability for credit losses on
lending-related commitments.
|
|
Summary of
Nonperforming Assets and Past Due Loans From Continuing
Operations
|
|
(Dollars in
millions)
|
|
12/31/2024
|
9/30/2024
|
6/30/2024
|
3/31/2024
|
12/31/2023
|
|
Commercial and
industrial
|
$
322
|
$ 365
|
$ 358
|
$ 360
|
$ 297
|
|
|
|
|
|
|
|
Real estate —
commercial mortgage
|
243
|
176
|
173
|
113
|
100
|
|
Real estate —
construction
|
—
|
—
|
—
|
—
|
—
|
|
Total commercial real
estate loans
|
243
|
176
|
173
|
113
|
100
|
|
Commercial lease
financing
|
—
|
—
|
1
|
1
|
—
|
|
Total commercial
loans
|
565
|
541
|
532
|
474
|
397
|
|
Real estate —
residential mortgage
|
92
|
87
|
77
|
79
|
71
|
|
Home equity
loans
|
89
|
90
|
91
|
95
|
97
|
|
Other Consumer
loans
|
5
|
4
|
4
|
4
|
4
|
|
Credit cards
|
7
|
6
|
6
|
6
|
5
|
|
Total consumer
loans
|
193
|
187
|
178
|
184
|
177
|
|
Total nonperforming
loans (a)
|
758
|
728
|
710
|
658
|
574
|
|
OREO
|
14
|
13
|
17
|
16
|
17
|
|
Nonperforming loans
held for sale
|
—
|
—
|
—
|
—
|
—
|
|
Other nonperforming
assets
|
—
|
—
|
—
|
—
|
—
|
|
Total nonperforming
assets
|
$
772
|
$ 741
|
$ 727
|
$ 674
|
$ 591
|
|
Accruing loans past due
90 days or more
|
$
90
|
$ 166
|
$ 137
|
$ 119
|
$ 107
|
|
Accruing loans past due
30 through 89 days
|
206
|
184
|
282
|
242
|
222
|
|
Nonperforming assets
from discontinued operations — education lending
business
|
2
|
2
|
3
|
2
|
3
|
|
Nonperforming loans to
period-end portfolio loans
|
.73 %
|
.69 %
|
.66 %
|
.60 %
|
.51 %
|
|
Nonperforming assets to
period-end portfolio loans plus OREO and other nonperforming
assets
|
.74
|
.70
|
.68
|
.61
|
.52
|
|
Summary of Changes
in Nonperforming Loans From Continuing Operations
|
|
(Dollars in
millions)
|
|
4Q24
|
3Q24
|
2Q24
|
1Q24
|
4Q23
|
|
Balance at beginning of
period
|
$
728
|
$
710
|
$
658
|
$
574
|
$
455
|
|
Loans placed on
nonaccrual status
|
309
|
271
|
317
|
243
|
297
|
|
Charge-offs
|
(131)
|
(167)
|
(131)
|
(97)
|
(95)
|
|
Loans sold
|
(13)
|
(32)
|
(22)
|
(5)
|
(9)
|
|
Payments
|
(111)
|
(37)
|
(76)
|
(35)
|
(56)
|
|
Transfers to
OREO
|
(2)
|
(1)
|
(1)
|
(2)
|
(2)
|
|
Loans returned to
accrual status
|
(22)
|
(16)
|
(35)
|
(20)
|
(16)
|
|
Balance at end of
period
|
$
758
|
$
728
|
$
710
|
$
658
|
$
574
|
|
Line of Business
Results
|
|
(Dollars in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change 4Q24
vs.
|
|
4Q24
|
3Q24
|
2Q24
|
1Q24
|
4Q23
|
|
3Q24
|
4Q23
|
|
Consumer
Bank
|
|
|
|
|
|
|
|
|
|
Summary of
operations
|
|
|
|
|
|
|
|
|
|
Total revenue
(TE)
|
$
872
|
$
814
|
$
769
|
$
757
|
$
770
|
|
7.1 %
|
13.2 %
|
|
Provision for credit
losses
|
43
|
52
|
33
|
(2)
|
5
|
|
(17.3)
|
760.0
|
|
Noninterest
expense
|
713
|
649
|
648
|
704
|
779
|
|
9.9
|
(8.5)
|
|
Net income (loss)
attributable to Key
|
88
|
86
|
67
|
41
|
(11)
|
|
2.3
|
900.0
|
|
Average loans and
leases
|
37,567
|
38,332
|
39,174
|
39,919
|
40,763
|
|
(2.0)
|
(7.8)
|
|
Average
deposits
|
87,476
|
86,431
|
85,397
|
84,075
|
83,557
|
|
1.2
|
4.7
|
|
Net loan
charge-offs
|
63
|
54
|
45
|
44
|
40
|
|
16.7
|
57.5
|
|
Net loan charge-offs to
average total loans
|
.67 %
|
.56 %
|
.46 %
|
.44 %
|
.39 %
|
|
19.6
|
71.8
|
|
Nonperforming assets at
period end
|
$
201
|
$
195
|
$
190
|
$
196
|
$
190
|
|
3.1
|
5.8
|
|
Return on average
allocated equity
|
10.85 %
|
10.34 %
|
7.93 %
|
4.69 %
|
(1.28) %
|
|
4.9
|
947.7
|
|
|
|
|
|
|
|
|
|
|
Commercial
Bank
|
|
|
|
|
|
|
|
|
|
Summary of
operations
|
|
|
|
|
|
|
|
|
|
Total revenue
(TE)
|
$
999
|
$
868
|
$
769
|
$
798
|
$
804
|
|
15.1 %
|
24.3 %
|
|
Provision for credit
losses
|
(3)
|
41
|
87
|
102
|
96
|
|
(107.3)
|
(103.1)
|
|
Noninterest
expense
|
516
|
445
|
431
|
442
|
526
|
|
16.0
|
(1.9)
|
|
Net income (loss)
attributable to Key
|
379
|
300
|
207
|
205
|
150
|
|
26.3
|
152.7
|
|
Average loans and
leases
|
66,691
|
67,452
|
69,248
|
70,633
|
72,713
|
|
(1.1)
|
(8.3)
|
|
Average loans held for
sale
|
1,247
|
998
|
522
|
840
|
635
|
|
24.9
|
96.4
|
|
Average
deposits
|
59,687
|
58,696
|
57,360
|
56,331
|
58,196
|
|
1.7
|
2.6
|
|
Net loan
charge-offs
|
52
|
99
|
64
|
37
|
35
|
|
(47.5)
|
48.6
|
|
Net loan charge-offs to
average total loans
|
.31 %
|
.58 %
|
.37 %
|
.21 %
|
.19 %
|
|
(46.6)
|
63.2
|
|
Nonperforming assets at
period end
|
$
571
|
$
546
|
$
537
|
$
478
|
$
401
|
|
4.6
|
42.4
|
|
Return on average
allocated equity
|
15.50 %
|
11.98 %
|
8.31 %
|
8.24 %
|
5.88 %
|
|
29.4
|
163.6
|
|
Selected Items
Impact on Earnings
|
|
(Dollars in millions,
except per share amounts)
|
|
Pretax(a)
|
|
After-tax at
marginal rate(a)
|
|
Quarter to date
results
|
Amount
|
|
Net
Income
|
EPS(c)(f)
|
|
Three months ended
December 31, 2024
|
|
|
|
|
|
Loss on sale of
securities(b)
|
$
(915)
|
|
$
(657)
|
$
(0.66)
|
|
Scotiabank investment
agreement valuation (other income)
|
(3)
|
|
(2)
|
—
|
|
FDIC special assessment
(other expense)(d)
|
3
|
|
2
|
—
|
|
Three months ended
September 30, 2024
|
|
|
|
|
|
Loss on sale of
securities(b)
|
(918)
|
|
(737)
|
(0.77)
|
|
FDIC special assessment
(other expense)(d)
|
6
|
|
5
|
—
|
|
Three months ended
June 30, 2024
|
|
|
|
|
|
FDIC special assessment
(other expense)(d)
|
(5)
|
|
(4)
|
—
|
|
Three months ended
March 31, 2024
|
|
|
|
|
|
FDIC special assessment
(other expense)(d)
|
(29)
|
|
(22)
|
(0.02)
|
|
Three months ended
December 31, 2023
|
|
|
|
|
|
Efficiency related
expenses(e)
|
(67)
|
|
(51)
|
(0.05)
|
|
Pension settlement
(other expense)
|
(18)
|
|
(14)
|
(0.02)
|
|
FDIC special assessment
(other expense)(d)
|
(190)
|
|
(144)
|
(0.15)
|
|
|
|
|
|
|
Year to date
results
|
|
|
|
|
|
Twelve months ended
December 31, 2024
|
|
|
|
|
|
Loss on sale of
securities
|
(1,833)
|
|
(1,394)
|
(1.45)
|
|
Scotiabank investment
agreement valuation (other income)
|
(3)
|
|
(2)
|
—
|
|
FDIC special assessment
(other expense)(d)
|
(25)
|
|
(19)
|
(0.02)
|
|
Total selected
items(f)
|
$
(1,861)
|
|
$
(1,415)
|
$
(1.48)
|
|
|
|
|
|
|
Twelve months ended
December 31, 2023
|
|
|
|
|
|
Efficiency related
expenses(e)
|
(131)
|
|
(100)
|
(0.10)
|
|
Pension settlement
(other expense)
|
(18)
|
|
(14)
|
(0.02)
|
|
FDIC special assessment
(other expense)(d)
|
(190)
|
|
(144)
|
(0.15)
|
|
Total selected
items(f)
|
$
(339)
|
|
$
(258)
|
$
(0.27)
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Favorable (unfavorable)
impact.
|
|
(b)
|
After-tax loss on sale
of securities for the three months ended September 30, 2024
adjusted to reflect impact of GAAP accounting for income taxes in
interim periods, with related adjustments recorded in the fourth
quarter of 2024.
|
|
(c)
|
Impact to EPS reflected
on a fully diluted basis.
|
|
(d)
|
In November 2023, the
FDIC issued a final rule implementing a special assessment on
insured depository institutions to recover the loss to the FDIC's
deposit insurance fund (DIF) associated with protecting uninsured
depositors following the 2023 closures of Silicon Valley Bank and
Signature Bank. KeyCorp recorded the initial loss estimate related
to the special assessment during the fourth quarter of 2023. In
late February 2024, the FDIC provided updated estimates on the
uninsured deposit losses and recoverable assets related to the 2023
closures of Silicon Valley Bank and Signature Bank. KeyCorp
recorded the additional expense related to the revised special
assessment during the first quarter of 2024. Amounts reflected for
the three-months ended June 30, 2024, September 30, 2024, and
December 31, 2024, represent adjustments from initial estimates
based on quarterly invoices received from the FDIC.
|
|
(e)
|
Efficiency related
expenses for the three-months ended December 31, 2023, consist
primarily of $39 million of severance recorded in personnel expense
and $24 million of corporate real estate related rationalization
and other contract termination or renegotiation costs recorded in
other expense. Efficiency related expenses for the twelve-months
ended December 31, 2023, consist primarily of $70 million of
severance recorded in personnel expense and $52 million of
corporate real estate related rationalization and other contract
termination or renegotiation costs recorded in other
expense.
|
|
(f)
|
Earnings per share may
not foot due to rounding.
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/keycorp-reports-fourth-quarter-2024-net-loss-of-279-million-or-28-per-diluted-common-share-and-adjusted-net-income-of-378-million-or-38-per-diluted-common-sharea-302356066.html
SOURCE KeyCorp
