KEY 10-Q Quarterly Reports

KeyCorp Quarterly Report for Q3 Ended Sep 30, 2026

KeyCorp Quarterly Report for Q2 Ended Jun 30, 2026

KeyCorp reported net income from continuing operations attributable to Key common shareholders of $472 million, or diluted earnings per share of $0.44, for the second quarter of 2026. Net interest income (TE) was $1.26 billion with a net interest margin of 2.89%, up 23 basis points from the second quarter of 2025, driven by lower deposit costs, reinvestment of maturing securities and swaps into higher-yielding assets, and a shift toward higher-yielding commercial and industrial loans. Noninterest income rose 2.3% to $706 million, and noninterest expense rose 5.5% to $1.2 billion, led by personnel expense, which increased 11.5%. The provision for credit losses fell to $92 million from $138 million, and net charge-offs were 42 basis points of average loans. Total loans reached $110.4 billion at June 30, 2026, up from $106.5 billion at December 31, 2025, led by commercial and industrial growth of 8.7%, while consumer loans declined 3.9% as low-yielding loans ran off. Nonperforming assets rose to $818 million from $627 million at year-end 2025, which the filing attributes to idiosyncratic exposures in select commercial and industrial industries and multifamily real estate. Deposits grew to $153.1 billion, and uninsured deposits were $68.8 billion, or 45% of total deposits. The company repurchased $341 million of common shares in the quarter, and its CET1 ratio was an estimated 11.17% at June 30, 2026. Moody's upgraded KeyCorp's long-term issuer rating to Baa1 from Baa2 on July 15, 2026. The filing also reports that the company raised its full-year 2026 outlook for revenue, net interest income, average loans, and average commercial loans, and that it authorized a new $3.0 billion share repurchase program in May 2026. The acquisition of Clearwater Corporate Finance LLP (Clearwater UK) closed on August 3, 2026, after being announced in April 2026.

KeyCorp Quarterly Report for Q1 Ended Mar 31, 2026

KeyCorp reported net income from continuing operations attributable to Key common shareholders of $486 million, or diluted earnings per share of $0.44, for the first quarter of 2026. Net interest income (TE) was $1.23 billion with a net interest margin of 2.87%, up 29 basis points from the first quarter of 2025. Noninterest income rose to $723 million from $668 million, led by trust and investment services and investment banking fees, while noninterest expense increased to $1.18 billion from $1.13 billion. The provision for credit losses fell to $106 million from $118 million, and total assets were $188.66 billion at March 31, 2026. Capital and balance sheet activity included $389 million in common share repurchases during the quarter, with the Common Equity Tier 1 ratio at 11.40% (estimated) compared with 11.78% at December 31, 2025. Total deposits declined $898 million to $147.8 billion, while wholesale funds rose to $17.1 billion from $11.0 billion, reflecting higher bank notes and short-term borrowings and new long-term debt issuance. Nonperforming assets increased $65 million to $692 million, which management attributed to two idiosyncratic exposures in the utilities and multifamily sectors. Management reaffirmed its 2026 outlook, expecting full-year net interest income (TE) growth of 9 to 10% and noninterest income growth of 3 to 4% versus 2025, with adjusted noninterest expense up 3 to 4%. Medium-term targets are a return on tangible common equity of 15.0% or more and a net interest margin of 3.25% or more by the end of 2027.

KeyCorp Quarterly Report for Q3 Ended Sep 30, 2025

KeyCorp reported net income from continuing operations attributable to Key common shareholders of $454 million, or diluted earnings per share of $0.41, for the third quarter of 2025, compared with a loss of $447 million in the year-ago quarter that included a $918 million securities repositioning loss. For the nine months ended September 30, 2025, income from continuing operations attributable to common shareholders was $1.211 billion, or $1.09 diluted EPS. Net interest income (TE) was $1.19 billion in the third quarter with a net interest margin of 2.75%, up 58 basis points year over year, reflecting lower deposit costs and a more favorable balance sheet mix. Noninterest income was $702 million, and noninterest expense was $1.18 billion. Credit metrics were stable. The provision for credit losses was $107 million for the quarter, and net loan charge-offs were $114 million, or 0.42% of average loans. Nonperforming loans declined to $658 million from $758 million at December 31, 2024. Total loans were $105.9 billion at September 30, 2025, and deposits were $150.8 billion, with uninsured deposits at $66.5 billion, or 44% of deposits. Assets under management reached a record $67.9 billion, up 11.0% year over year. Capital remained strong, with the Common Equity Tier 1 ratio estimated at 11.83% at September 30, 2025, and book value per common share of $15.86. Management updated full-year 2025 guidance, now expecting net interest income (TE) growth of up 22% and adjusted noninterest expense growth of up about 4%. The company also began repurchasing shares under a $1.0 billion program authorized in March 2025 during the fourth quarter.

KeyCorp Quarterly Report for Q2 Ended Jun 30, 2025

KeyCorp (KEY) reported net income from continuing operations attributable to Key common shareholders of $387 million, or diluted earnings per share of $0.35, for the second quarter of 2025. Net interest income (TE) was $1.15 billion with a net interest margin of 2.66%, up $251 million and 62 basis points from the second quarter of 2024. Noninterest income was $690 million, compared to $627 million a year earlier, and noninterest expense was $1.2 billion. The provision for credit losses rose to $138 million from $100 million, reflecting higher net loan charge-offs and a higher reserve build tied to the worsening macroeconomic outlook. Total loans from continuing operations were $106.4 billion at June 30, 2025, up from $104.3 billion at December 31, 2024, with commercial loans up $3.3 billion, or 4.6%, offset by a $1.2 billion, or 3.7%, decline in consumer loans. Deposits fell to $146.9 billion from $149.8 billion, and uninsured deposits were $61.8 billion, or 42% of total deposits. Assets under management reached a record $64.2 billion. The Common Equity Tier 1 ratio was 11.72% at June 30, 2025, an estimate, and the company paid a quarterly common dividend of $.205 per share. Management guided to full-year 2025 average loans down 1% to 3%, net interest income (TE) up 20% to 22%, and adjusted noninterest expense up 3% to 5% compared with 2024. The filing also notes that the One Big Beautiful Bill Act was signed into law on July 4, 2025, and that Key does not expect a material change to its ongoing tax rate.

KeyCorp Quarterly Report for Q1 Ended Mar 31, 2025

KeyCorp reported net income from continuing operations attributable to Key common shareholders of $370 million, or diluted EPS of $0.33, for the first quarter of 2025, compared with $183 million in the first quarter of 2024. Net interest income (TE) was $1.1 billion and the net interest margin was 2.58%, up from 2.02% a year earlier, reflecting lower deposit costs, reinvestment of securities cash flows, and a shift toward lower-cost deposits as wholesale borrowings declined. Average loans were $104.4 billion, down $6.7 billion year over year, reflecting tepid client loan demand, while average deposits rose $5.7 billion to $148.5 billion. Noninterest income was $668 million and noninterest expense was $1.1 billion. Asset quality was stable. Net loan charge-offs were 0.43% of average loans, the low end of the company's 40 to 60 basis point long-term target range, and nonperforming loans fell to $686 million from $758 million at year-end 2024. The provision for credit losses rose to $118 million from $101 million, citing higher net charge-offs and economic uncertainty. Common Equity Tier 1 was an estimated 11.8% at March 31, 2025. The Board authorized a $1.0 billion share repurchase program, with purchases expected to begin in the second half of 2025, and the company did not repurchase open-market shares in the first quarter. Management's 2025 business outlook calls for ending loans flat versus year-end 2024, net interest income (TE) up roughly 20% for full year 2025, adjusted noninterest income up 5% or more, and adjusted noninterest expense up 3% to 5%. The filing also highlights a $4.9 billion parent-company cash and short-term investment balance, uninsured deposits of $65.2 billion (43% of total deposits), and ongoing regulatory developments affecting the CFPB and CRA rules.

KeyCorp Quarterly Report for Q3 Ended Sep 30, 2024

KeyCorp reported a net loss from continuing operations of $411 million for the third quarter of 2024, compared to income of $302 million in the year-ago quarter, driven by a $935 million pre-tax loss on sale of securities available for sale, of which $918 million was tied to a strategic repositioning of the securities portfolio. Excluding the repositioning, the filing shows net interest income (TE) of $964 million for the quarter, a net interest margin of 2.17%, up 16 basis points from the year-ago quarter, and provision for credit losses of $95 million. Total noninterest expense was $1.09 billion, and the company stated that expenses were down approximately 1% year over year. Net loan charge-offs rose to $154 million, or 0.58% of average loans, and nonperforming assets were $741 million at September 30, 2024. The filing highlights the Scotiabank strategic minority investment: Scotiabank completed an initial purchase of 47,829,359 common shares for approximately $821 million in gross proceeds on August 30, 2024, bringing its ownership to approximately 4.9%. The parties expect a second closing of approximately $2.0 billion in the first quarter of 2025, subject to Federal Reserve approval, which would bring Scotiabank to approximately 14.9% pro forma ownership and grant it the right to designate up to two directors. Common Equity Tier 1 ratio was an estimated 10.8% at September 30, 2024, and book value per common share rose to $14.53 from $13.02 at December 31, 2023. Full-year 2024 guidance calls for average loans to decline 7% to 8% and noninterest expense to rise about 2%. Total deposits reached $150.4 billion, up $4.8 billion from year-end 2023, and the company replaced about $4.5 billion of FHLB advances with lower-cost client deposits during the quarter. Total loans outstanding from continuing operations were $105.3 billion, compared with $112.6 billion at December 31, 2023, reflecting balance sheet optimization and tepid client loan demand.

KeyCorp Quarterly Report for Q2 Ended Jun 30, 2024

KeyCorp's second-quarter 2024 Form 10-Q reports net income of $274 million for the quarter, compared to $287 million a year earlier, and income from continuing operations attributable to Key common shareholders of $237 million, or $.25 per diluted share, versus $250 million in the year-ago quarter. Net interest income (TE) was $899 million with a net interest margin of 2.04%, down $87 million and eight basis points year over year, reflecting lower loan balances and higher deposit costs. Average loans fell $11.7 billion to $109.0 billion, while average deposits rose $1.3 billion to $144.2 billion. Noninterest income increased to $627 million from $609 million, helped by trust and investment income and commercial mortgage servicing fees. Credit quality metrics moved higher but remain within management's stated targets. Net loan charge-offs were $91 million, or .34% of average loans, up from $52 million a year earlier, and nonperforming loans rose to $710 million from $574 million at December 31, 2023. The provision for credit losses fell to $100 million from $167 million. Total loans declined to $107.1 billion from $112.6 billion at year-end 2023, with commercial loans down 5.2%. Capital strengthened, with the Common Equity Tier 1 ratio at an estimated 10.5% at June 30, 2024, compared with 10.02% at December 31, 2023, and KeyCorp declared a quarterly common dividend of $.205 per share. Management's 2024 expectations call for average loans down 7% to 8% and net interest income (TE) down 2% to 5% versus 2023, and the company did not repurchase common shares in the quarter. For investors, the key tension is between a shrinking balance sheet and pressure on net interest income on one side, and improving capital ratios and a fee income base that is growing on the other. Preliminary results from the Federal Reserve's 2024 stress test imply a stress capital buffer of 3.1% for KeyCorp, effective October 1, 2024, and the company is subject to proposed capital rules, including the expanded risk-based approach, that could change its capital requirements from July 2025.

KeyCorp Quarterly Report for Q1 Ended Mar 31, 2024

KeyCorp reported a first-quarter 2024 net income of $219 million, or $0.20 per common share, compared with $312 million, or $0.30 per share, in the first quarter of 2023. Net interest income (TE) was $886 million with a net interest margin of 2.02%, down $220 million and 45 basis points from a year earlier, reflecting higher funding costs and planned reductions in loan balances. Noninterest income rose to $647 million, representing 42% of total revenue, supported by a record first-quarter performance in investment banking and debt placement fees of $170 million. Average loans fell to $111.0 billion, while average deposits totaled $142.9 billion. Credit metrics moved modestly higher. Net loan charge-offs were $81 million, or 0.29% of average loans, versus $45 million and 0.15% a year earlier. Nonperforming assets rose $83 million from December 31, 2023 to $674 million, and the provision for credit losses fell to $101 million from $139 million. The company also recorded an incremental $29 million pre-tax FDIC special assessment expense in the quarter. Capital strengthened, with the Common Equity Tier 1 ratio at an estimated 10.27% at March 31, 2024, up from 10.02% at December 31, 2023, and KeyCorp paid a quarterly common dividend of $.205 per share. Management's full-year 2024 guidance calls for average loans to decline 5% to 7% and net interest income (TE) to decline 2% to 5% versus 2023, with noninterest income up 5% or more and net charge-offs of 30 to 40 basis points. Tangible book value per common share was $9.87 at March 31, 2024, compared with $10.02 at year-end 2023.

KeyCorp Quarterly Report for Q3 Ended Sep 30, 2023

KeyCorp reported net income of $303 million for the third quarter of 2023 and $902 million for the nine months ended September 30, 2023, compared to $542 million and $1.523 billion in the prior-year periods. Net interest income (TE) was $923 million for the quarter with a net interest margin of 2.01%, down $280 million and seventy-three basis points from the third quarter of 2022, reflecting higher interest-bearing deposit costs and a shift in funding mix to higher-cost deposits and borrowings. Noninterest income was $643 million, compared to $683 million a year earlier, and noninterest expense was $1.110 billion, compared to $1.106 billion. Provision for credit losses was $81 million for the quarter, down from $109 million, while net loan charge-offs rose to $71 million from $43 million. Credit and balance sheet metrics were mixed. Nonperforming assets were $471 million at September 30, 2023, versus $420 million at December 31, 2022, and total loans declined to $115.5 billion from $119.4 billion. Total deposits rose to $144.3 billion, and the Common Equity Tier 1 ratio was 9.8% as of September 30, 2023 (an estimate). The filing also describes lowered full-year 2023 guidance for net interest income (TE) (down 12% to 14% versus 2022) and noninterest income (down 7% to 9%), and notes that S&P, Fitch, and Moody's downgraded KeyCorp's long-term debt ratings in August through October 2023. The filing discloses a proposed FDIC special assessment with an estimated impact to Key of approximately $176 million, expected to be recognized upon final issuance. It also reports $265 million of AOCI losses tied to $7.5 billion of swaps terminated on October 11, 2023, to be recognized in earnings over the next five quarters, and a securities authorization that expired as of September 30, 2023 with no open market repurchases in the third quarter.

KeyCorp Quarterly Report for Q2 Ended Jun 30, 2023

KeyCorp's Form 10-Q for the quarter ended June 30, 2023 reports net income attributable to Key of $287 million for the second quarter of 2023, compared to $533 million a year earlier, and $599 million for the six months ended June 30, 2023, versus $981 million for the prior-year period. Net interest income (TE) was $986 million for the quarter, with a net interest margin of 2.12%, down forty-nine basis points from 2.61% a year earlier, reflecting higher interest-bearing deposit costs and a shift in funding mix to higher-cost deposits and borrowings. Noninterest income was $609 million and provision for credit losses rose to $167 million from $45 million in the year-ago quarter. Noninterest expense was $1.1 billion for the quarter, consistent with the prior year. Balance sheet items highlighted in the filing include total deposits of $145.1 billion at June 30, 2023, up $2.5 billion from December 31, 2022, and total loans of $119.0 billion. Average loans were $120.7 billion for the quarter, up $11.5 billion year over year, while average deposits of $142.9 billion were down $4.6 billion. Nonperforming assets were $462 million, and the allowance for loan and lease losses rose to $1.48 billion. Common Equity Tier 1 ratio was 9.3% as of June 30, 2023 (an estimate), and the Board declared a quarterly common dividend of $.205 per share. The filing also describes management's full-year 2023 outlook, which calls for net interest income (TE) to decline 12% to 14% and noninterest income to decline 7% to 9% versus 2022, with average loans up 6% to 9%. The company also discloses an estimated $176 million special assessment from the FDIC tied to the SVB and Signature Bank failures, expected to be recognized upon final rule issuance, and that all three major rating agencies changed KeyCorp's outlook to negative during the quarter.

KeyCorp Quarterly Report for Q1 Ended Mar 31, 2023

KeyCorp's first-quarter 2023 Form 10-Q reports net income attributable to Key of $312 million, compared to $448 million in the first quarter of 2022. Income from continuing operations attributable to Key common shareholders was $275 million, or $.30 per diluted share, versus $420 million, or $.45, a year earlier. Net interest income (TE) was $1.1 billion with a net interest margin of 2.47%, up one basis point from 2.46%, while noninterest income fell to $608 million from $676 million. Noninterest expense rose to $1.2 billion, and the filing notes $64 million of pre-tax costs tied to expense actions in the quarter, including $36 million in severance. Credit metrics moved modestly higher. The provision for credit losses was $139 million versus $83 million a year earlier, driven by changes in the economic outlook. Net loan charge-offs were $45 million, or .15% of average loans, and nonperforming loans rose to $416 million from $387 million at year-end 2022. Total deposits were $144.1 billion, and the filing attributes shifting client behavior to higher interest rates and recent market disruption. Wholesale funding rose to $34.2 billion from $28.8 billion, which the company ties partly to a desire to hold more cash at the Federal Reserve. Capital remained above regulatory requirements, with a Common Equity Tier 1 ratio of 9.1% and book value per common share of $12.70. The filing also discloses a 2023 full-year outlook that includes net interest income (TE) down 1% to 3% and noninterest income down 1% to 3%, and it describes the March 2023 failures of Silicon Valley Bank and Signature Bank, plus a Moody's outlook change to negative on April 21, 2023, as ongoing sources of uncertainty.

KeyCorp Quarterly Report for Q3 Ended Sep 30, 2022

KeyCorp's Form 10-Q for the quarter ended September 30, 2022 shows net income of $542 million for the third quarter, compared to $645 million a year earlier, with net income from continuing operations attributable to Key common shareholders of $513 million. Net interest income (TE) was $1.2 billion and the net interest margin was 2.74%, up 27 basis points from the third quarter of 2021. Noninterest income fell to $683 million from $797 million, representing 36% of total revenue versus 44% a year earlier. Average loans grew $14.3 billion year over year to $114.4 billion, while average deposits decreased $2.7 billion to $144.2 billion. Credit metrics were stable but the provision for credit losses rose to $109 million from a net benefit of $107 million in the prior-year quarter, reflecting the change in the economic outlook and a reserve release in the year-ago period. Net loan charge-offs were $43 million, or .15% of average loans. Nonperforming assets declined to $419 million from $489 million at December 31, 2021. Tangible book value per common share was $8.56, down from $13.72 at year-end 2021, and accumulated other comprehensive loss grew to $6.26 billion, driven by securities market movements. The filing highlights a growing reliance on wholesale funding, with wholesale funds rising to $27.1 billion from $12.8 billion at December 31, 2021, as deposits declined to $144.9 billion. KeyCorp issued $600 million of 6.2% fixed rate reset perpetual preferred stock in August 2022 and declared a quarterly common dividend of $.195 per share. The stress capital buffer was confirmed at 2.5%, and all capital ratios remained above regulatory requirements.

KeyCorp Quarterly Report for Q2 Ended Jun 30, 2022

KeyCorp reported net income of $533 million for the second quarter of 2022, compared to $729 million in the year-ago quarter, and net income of $981 million for the six months ended June 30, 2022, versus $1.35 billion a year earlier. Net interest income (TE) was $1.1 billion for the quarter with a net interest margin of 2.61%, up nine basis points from the second quarter of 2021. Noninterest income was $688 million, down from $750 million, and noninterest expense was $1.1 billion. The provision for credit losses was $45 million, compared to a net benefit of $222 million a year earlier, which the filing attributes to reserve releases in the prior-year period as pandemic uncertainty subsided. Loan growth was the main theme. Total loans from continuing operations reached $112.4 billion at June 30, 2022, up from $101.9 billion at December 31, 2021, driven by commercial and industrial and consumer mortgage growth. Deposits declined to $145.9 billion from $152.6 billion at year-end, while wholesale funding rose to $22.7 billion from $12.8 billion. Shareholders' equity fell to $14.4 billion, largely due to a $3.6 billion decline in accumulated other comprehensive income, and book value per common share was $13.48 versus $16.76 at December 31, 2021. Capital ratios remained above regulatory requirements, with Common Equity Tier 1 at 9.17% and total risk-based capital at 11.98%. The company paid a quarterly common dividend of $.195 per share, closed the GradFin acquisition, and issued $1.35 billion of senior notes in May 2022. Nonperforming loans declined to $429 million, or 0.38% of period-end portfolio loans, from $454 million at year-end.

KeyCorp Quarterly Report for Q1 Ended Mar 31, 2022

KeyCorp (KEY) reported a first-quarter 2022 net income of $448 million, compared to $622 million in the first quarter of 2021. Income from continuing operations attributable to Key common shareholders was $420 million, or $.45 per diluted share, versus $591 million, or $.61 per diluted share, a year earlier. Net interest income (TE) was $1.0 billion with a net interest margin of 2.46%, compared to 2.61% in the year-ago quarter. Noninterest income declined to $676 million from $738 million, and noninterest expense was $1.07 billion, essentially flat with $1.071 billion a year earlier. The provision for credit losses was $83 million, compared to a net benefit of $93 million in the first quarter of 2021, which the company attributed to the uncertain economic outlook from the Ukraine conflict, inflation, and loan growth. Total loans rose to $106.6 billion at March 31, 2022, from $101.9 billion at December 31, 2021, led by commercial loan growth of $3.1 billion and consumer loan growth of $1.7 billion. Total deposits fell $3.9 billion to $148.7 billion, reflecting commercial deposit outflows and lower escrow balances. Net loan charge-offs were $33 million, or .13% of average loans, compared to $114 million, or .46%, a year earlier. Nonperforming loans declined to $439 million from $454 million at year-end 2021. Shareholders' equity fell to $15.3 billion, with book value per Common Share at $14.43 versus $16.75 at December 31, 2021, largely reflecting a $2.3 billion decline in other comprehensive income driven by unrealized losses on available-for-sale securities. KeyCorp's regulatory capital ratios remained above requirements, with Common Equity Tier 1 at 9.40% and total risk-based capital at 12.42% at March 31, 2022. The company paid a quarterly common dividend of $.195 per share and repurchased shares only for employee equity compensation programs during the quarter, under a $1.5 billion authorization that runs through the third quarter of 2022.

KeyCorp Quarterly Report for Q3 Ended Sep 30, 2021

KeyCorp reported results for the quarter ended September 30, 2021, with net income attributable to Key of $645 million, compared to $428 million in the third quarter of 2020. Income from continuing operations attributable to Key was $643 million, and diluted EPS from continuing operations was $.65 versus $.41 a year earlier. Total revenue benefited from record third quarter investment banking and debt placement fees of $235 million, and noninterest income of $797 million represented 44% of total revenue. The provision for credit losses was a net benefit of $107 million, including a $136 million reserve release driven by improvements in the economic outlook. Net loan charge-offs were .11% of average loans. Balance sheet and capital metrics were largely stable to stronger over the period. Total assets were $187.0 billion, deposits rose to $151.9 billion, and loans declined to $98.6 billion, reflecting the sale of a $3.3 billion indirect auto loan portfolio and PPP loan forgiveness. Common Equity Tier 1 was 9.6% at September 30, 2021, and KeyCorp repurchased $593 million of common shares in the quarter, including $468 million under an accelerated share repurchase program. The filing states that KeyCorp is subject to a $1.5 billion share repurchase authorization running from the third quarter of 2021 through the third quarter of 2022. The filing also notes that the net interest margin (TE) fell to 2.47% from 2.62% a year earlier, reflecting lower interest rates and elevated liquidity, partly offset by higher PPP loan fees. Net interest income (TE) rose $19 million to $1.0 billion. Management highlighted continued positive operating leverage, a cash efficiency ratio of 60.2%, and record consumer loan originations of $4.2 billion in the quarter.

KeyCorp Quarterly Report for Q2 Ended Jun 30, 2021

KeyCorp's second-quarter 2021 Form 10-Q reports net income attributable to Key of $729 million for the quarter, compared to $187 million in the second quarter of 2020, and $1.35 billion for the six months ended June 30, 2021. Diluted EPS from continuing operations was $.72 for the quarter, versus $.16 a year earlier. Net interest income was $1.017 billion, roughly flat year over year, with the net interest margin (TE) at 2.52% versus 2.76%, reflecting lower rates and elevated liquidity. Noninterest income rose to $750 million, with record second-quarter investment banking and debt placement fees of $217 million. The provision for credit losses was a net benefit of $222 million, including a $244 million reserve release driven by improved economic outlook, and net loan charge-offs were .09% of average loans. Total assets reached $181.1 billion and deposits $146.1 billion at June 30, 2021, while total loans declined to $100.7 billion. Key's Common Equity Tier 1 ratio was 9.9%, above its targeted range of 9.0% to 9.5%. The company repurchased $300 million of Common Shares in the second quarter and announced in July 2021 a new repurchase authorization of up to $1.5 billion effective through the third quarter of 2022. The Board declared a quarterly dividend of $.185 per Common Share. Management highlighted continued COVID-19 uncertainty, the ongoing transition away from LIBOR, and regulatory developments including the Federal Reserve's end of temporary dividend and buyback restrictions for banks of Key's size after June 30, 2021. The filing states that the stress capital buffer for KeyCorp is 2.5%.

KeyCorp Quarterly Report (Amendment) for Q1 Ended Mar 31, 2021

KeyCorp's first-quarter 2021 Form 10-Q reports net income attributable to Key of $622 million, compared to $146 million for the first quarter of 2020, with income from continuing operations attributable to Key of $618 million. Net interest income was $1.005 billion, against $981 million a year earlier, and the filing describes a net benefit of $93 million from the provision for credit losses, including a $207 million reserve release largely driven by an improved economic outlook. Noninterest income rose to $738 million, representing 42% of total revenue, compared with $477 million (33%) a year earlier, driven by investment banking and debt placement fees, consumer mortgage income, and cards and payments income. Noninterest expense was $1.071 billion, up from $931 million, with personnel expense up $109 million, or 21.2%. Balance sheet growth was driven by deposits, which totaled $142.2 billion at March 31, 2021, up $6.9 billion from year-end 2020, while total loans declined slightly to $100.9 billion. Credit metrics improved: nonperforming loans fell to $728 million from $785 million at December 31, 2020, and the allowance for loan and lease losses decreased to $1.438 billion. Net loan charge-offs were $114 million, or 0.46% of average loans. Return on average tangible common equity was 18.25% for continuing operations, and the Common Equity Tier 1 ratio was 9.9%, above the company's stated 9.0% to 9.5% target range. The company repurchased $135 million of common shares in the quarter and paid a $.185 per share quarterly dividend, while Federal Reserve restrictions on capital distributions for large bank holding companies remain in effect through June 30, 2021. The filing also notes several strategic developments, including the February 2021 acquisition of AQN Strategies, a goodwill addition of $9 million, and the March 2021 launch of Laurel Road for Doctors, a national digital bank for physicians and dentists. Management expects net loan charge-offs for the remainder of 2021 to average between 35 and 45 basis points of average loans.

KeyCorp Quarterly Report for Q1 Ended Mar 31, 2021

KeyCorp's first-quarter 2021 Form 10-Q reports net income attributable to Key of $622 million, compared to $146 million in the first quarter of 2020, with diluted EPS of $.61 from continuing operations ($.61 for net income attributable to Key common shareholders, assuming dilution). Net interest income was $1.0 billion ($1,005 million GAAP), and noninterest income rose to $738 million from $477 million, representing 42% of total revenue. The provision for credit losses was a net benefit of $93 million, including a $207 million reserve release, compared to a $359 million expense a year earlier, reflecting improved economic outlook. Noninterest expense was $1,071 million versus $931 million a year earlier. Average deposits totaled $137.7 billion, and period-end deposits reached $142.2 billion. Capital and liquidity remained strong. The Common Equity Tier 1 ratio was 9.9% at March 31, 2021, versus 9.7% at December 31, 2020, and KeyCorp repurchased $135 million of common shares in the quarter under a $900 million authorization approved in January 2021. The quarterly common dividend was $.185 per share. Total loans declined to $100.9 billion from $101.2 billion at year-end, while Key reported an ALLL of $1,438 million, down $188 million from December 31, 2020. Nonperforming assets fell $147 million to $790 million. The filing also notes that the Federal Reserve's temporary restrictions on share repurchases and dividends for large bank holding companies were extended into the second quarter of 2021, with those restrictions expected to end for KeyCorp after June 30, 2021. Key acquired AQN Strategies on February 25, 2021, and unveiled the Laurel Road for Doctors digital bank on March 30, 2021.

KeyCorp Quarterly Report for Q3 Ended Sep 30, 2020

KeyCorp's Form 10-Q for the quarter ended September 30, 2020 reports third-quarter net income attributable to Key of $428 million, or $.41 per common share, compared with $416 million for the third quarter of 2019. Net interest income was $1.00 billion, up from $972 million a year earlier, while the provision for credit losses fell to $160 million from $200 million. Noninterest income rose to $681 million from $650 million and noninterest expense increased to $1.04 billion from $939 million. Nine-month net income attributable to Key was $761 million, down from $1.25 billion, driven by a $1.00 billion provision for credit losses under the newly adopted CECL standard, which the filing says was materially affected by the COVID-19 pandemic. Balance sheet growth was substantial. Total assets reached $170.54 billion and deposits $136.75 billion at September 30, 2020, compared with $144.99 billion and $111.87 billion at December 31, 2019. Loans totaled $103.08 billion, including $8 billion of PPP loans that the filing says are 100% guaranteed by the SBA. Nonperforming loans rose to $834 million from $577 million at year-end 2019, and the Common Equity Tier 1 ratio was 9.5%, at the upper end of the company's 9.0% to 9.5% target range. The quarterly dividend was held at $.185 per share, and share repurchases remained suspended, consistent with Federal Reserve restrictions for the third and fourth quarters of 2020. The filing also describes the company's stress capital requirement of 2.5%, the Federal Reserve's extension of distribution limits into the fourth quarter, and the company's decision to stop originating indirect auto loans announced October 21, 2020. Management states that its long-term financial targets have not changed, although it previously withdrew full-year 2020 financial guidance.

KeyCorp Quarterly Report for Q2 Ended Jun 30, 2020

KeyCorp reported second-quarter 2020 net income attributable to Key of $187 million, compared with $425 million in the year-ago quarter, and net income attributable to Key common shareholders of $161 million, or $.17 per diluted share, versus $.40 a year earlier. Results were shaped by the COVID-19 pandemic: the provision for credit losses rose to $482 million from $74 million, reflecting the adoption of CECL on January 1, 2020 and a more severe economic scenario. Total revenue (TE) was up 7% from the year-ago quarter, driven by a record level of consumer mortgage loan originations and related fees and higher cards and payments income from prepaid card activity tied to state unemployment programs. Net interest income was $1.018 billion, and the net interest margin (TE) fell to 2.76% from 3.06%, reflecting lower interest rates and elevated liquidity. Balance sheet growth was substantial. Total loans reached $106.2 billion at June 30, 2020, up from $94.6 billion at December 31, 2019, driven by $8 billion of Paycheck Protection Program loans and higher commercial line draws. Deposits rose to $135.5 billion from $111.9 billion, and total assets were $171.2 billion. The allowance for loan and lease losses increased to $1.708 billion from $900 million at year-end 2019. Nonperforming loans rose to $760 million from $577 million. Key's common equity tier 1 ratio was 9.1%, and the company stated that its capital ratios remained above regulatory requirements. Key's management withdrew its full-year 2020 financial outlook and suspended common share repurchases on March 17, 2020. The company maintained its quarterly common dividend at $.185 per share for the third quarter of 2020, the same level as the second quarter, a level the Federal Reserve's capital planning restrictions allowed. The preliminary stress capital requirement was 2.5%, and the Board approved the third-quarter dividend on July 8, 2020.

KeyCorp Quarterly Report for Q1 Ended Mar 31, 2020

KeyCorp (KEY) reported first-quarter 2020 net income attributable to Key of $146 million, or $.12 per diluted common share, compared to $407 million in the first quarter of 2019. The quarter was shaped by the COVID-19 pandemic: the provision for credit losses rose to $359 million from $62 million, reflecting the adoption of CECL on January 1, 2020 and a severe economic outlook at quarter-end. Noninterest income fell to $477 million from $536 million, including $92 million of market-related valuation adjustments. Net interest income was broadly flat at $981 million, while noninterest expense declined to $931 million from $963 million. Management withdrew its full-year 2020 financial outlook and suspended Common Share repurchases on March 17, 2020, while maintaining the $.185 quarterly dividend. Balance sheet growth was significant. Total loans rose to $103.2 billion from $94.6 billion at December 31, 2019, driven largely by commercial and industrial loans, which increased $7.7 billion as borrowers drew on credit lines in March. Deposits increased to $115.3 billion, and wholesale funding rose to $20.8 billion from $13.5 billion. The allowance for loan and lease losses increased to $1.36 billion from $900 million, and nonperforming loans rose to $632 million from $577 million. Capital ratios remained above regulatory requirements, with an estimated Common Equity Tier 1 ratio of 8.8% on a fully phased-in basis at March 31, 2020. Management stated that liquidity remained strong, with a combined $50 billion in liquid assets and unused borrowing capacity at March 31, 2020. The company also highlighted its participation in the Paycheck Protection Program as a lender, its deferral and hardship programs for clients, and that it has elected a five-year transition for CECL's regulatory capital effects.

KeyCorp Quarterly Report for Q3 Ended Sep 30, 2019

KeyCorp (KEY) reported third-quarter 2019 results in this Form 10-Q for the period ended September 30, 2019. Net income attributable to Key was $416 million for the quarter, compared to $482 million in the third quarter of 2018, and $1.25 billion for the nine months. Diluted EPS from net income attributable to Key common shareholders was $.39 for the quarter. The cash efficiency ratio improved to 56.0%, the top of management's 54.0% to 56.0% target range and the lowest level in over a decade. Noninterest income rose to $650 million, 40% of total revenue, while noninterest expense fell to $939 million from $964 million a year earlier. Results were pressured by a $123 million charge-off tied to a previously disclosed fraud loss, which drove the provision for credit losses to $200 million for the quarter and net loan charge-offs to .85% of average loans. Net interest income declined to $972 million from $986 million, reflecting a lower net interest margin from higher interest-bearing deposit costs. Total loans grew to $92.8 billion and deposits to $111.6 billion at September 30, 2019. Capital remained strong, with the Common Equity Tier 1 ratio at 9.48% and $248 million of common shares repurchased in the quarter. Management also disclosed that Beth Mooney will retire as Chairman and CEO effective May 1, 2020, with Christopher Gorman succeeding her, and that the company expects its allowance for loan and lease losses to rise by approximately 20% to 30% upon adoption of CECL on January 1, 2020.

KeyCorp Quarterly Report for Q2 Ended Jun 30, 2019

KeyCorp's Form 10-Q for the quarter ended June 30, 2019 reports net income attributable to Key of $425 million for the second quarter of 2019, compared to $482 million a year earlier, and $832 million for the six months ended June 30, 2019, versus $900 million in the prior-year period. Net interest income was $981 million for the quarter, and noninterest income was $622 million, down from $660 million. Noninterest expense rose to $1.019 billion from $993 million, driven by higher charitable contributions and volume-driven expenses, and provision for credit losses increased to $74 million from $64 million. Diluted EPS from continuing operations was $.40 for the quarter, compared with $.44 a year earlier. Capital and shareholder returns were central this quarter. Common Equity Tier 1 ratio stood at 9.57% and Tier 1 risk-based capital at 11.01% at June 30, 2019. The company repurchased $180 million of Common Shares in the quarter and issued $450 million of Series G preferred stock on April 29, 2019. On April 18, 2019, Key announced a 2019 capital plan including up to $1.0 billion of share repurchases beginning in the third quarter of 2019, and the Board approved a 9% increase in the quarterly common dividend to $.185 on July 17, 2019. The filing also discloses a subsequent event: on or about July 9, 2019, Key discovered fraudulent activity involving a business customer of KeyBank, with potential exposure estimated at up to $90 million, net of tax, which the company says could be lower depending on recovery efforts. Management also reiterated 2019 guidance, including TE net interest income of $4.0 billion to $4.1 billion, noninterest expense of $3.85 billion to $3.95 billion (excluding third-quarter 2019 activity disclosed in Note 21), and a cash efficiency ratio target of 54.0% to 56.0% in the second half of 2019.

KeyCorp Quarterly Report for Q1 Ended Mar 31, 2019

KeyCorp's first-quarter 2019 Form 10-Q reports net income attributable to Key of $407 million, compared to $418 million in the first quarter of 2018. Income from continuing operations attributable to Key common shareholders was $386 million, or $.38 per share, flat with the year-ago quarter. Total revenue (TE) was $1.52 billion, with net interest income of $977 million (GAAP) and noninterest income of $536 million, down from $601 million a year earlier. Noninterest expense fell to $963 million from $1.006 billion, and the cash efficiency ratio improved to 61.9% from 62.9%. The company stated that its first-quarter results supported its strategy of efficiency initiatives and organic growth. Capital and shareholder returns were central to the quarter. Common Equity Tier 1 ratio was 9.81% and Tier 1 risk-based capital ratio was 10.94% at March 31, 2019. KeyCorp repurchased $199 million of Common Shares during the quarter and declared a $.17 quarterly dividend. On April 18, 2019, it announced a 2019 capital plan with up to $1.0 billion of share repurchases beginning in the third quarter of 2019, and the Board plans to consider a dividend increase up to $.185 per share in that quarter. Credit quality remained stable, with net loan charge-offs at .29% of average loans, below the company's targeted range. Total nonperforming assets were $597 million, up from $577 million at December 31, 2018. The company closed its acquisition of Laurel Road Bank's digital lending business on April 3, 2019, and issued $1.35 billion of net long-term debt during the quarter.

KeyCorp Quarterly Report for Q3 Ended Sep 30, 2018

KeyCorp's Form 10-Q for the quarter ended September 30, 2018 reports net income attributable to Key of $482 million for the third quarter of 2018, compared to $364 million a year earlier, and $1.38 billion for the first nine months of 2018 versus $1.10 billion in the prior-year period. Diluted EPS from continuing operations attributable to Key common shareholders was $.45 for the quarter, up from $.32, and $1.26 for the nine months, up from $.95. Total revenue on a taxable-equivalent basis was $1.60 billion in the quarter, and the cash efficiency ratio improved to 58.7% from 62.2% a year earlier, with the filing stating that the improvement was driven by growth in both net interest income and noninterest income. Net interest margin (TE) was 3.18% for the quarter, and the company expects fourth-quarter net interest income to rise 1% to 3% versus the third quarter. Credit metrics were stable but showed some pressure. Net loan charge-offs were .27% of average loans for the quarter, below the company's 0.40% to 0.60% target range, and the provision for credit losses rose to $62 million from $51 million. Nonperforming loans increased to $645 million from $503 million at year-end 2017, and the filing attributes the rise largely to several credits not concentrated in a particular industry or geography. Total loans were $89.3 billion at September 30, 2018, up from $86.4 billion at December 31, 2017, led by commercial and industrial growth. Capital remained above regulatory requirements. The Common Equity Tier 1 ratio was 9.95% under current rules and 9.87% on a fully phased-in pro forma basis, and Tier 1 risk-based capital was 11.11%. During the quarter KeyCorp repurchased $542 million of common shares under its 2018 capital plan and raised the quarterly common dividend to $.17 from $.12. Book value per common share was $13.33 and tangible book value per common share was $10.59.

KeyCorp Quarterly Report for Q2 Ended Jun 30, 2018

KeyCorp reported second-quarter 2018 net income attributable to Key of $482 million, compared with $412 million in the second quarter of 2017, and net income attributable to Key of $900 million for the six months ended June 30, 2018. Income from continuing operations attributable to Key common shareholders was $464 million, or $.44 per share, for the quarter. Net interest income was $979 million, noninterest income was $660 million, and noninterest expense was $993 million. The cash efficiency ratio improved to 58.8% from 59.3% a year earlier, and return on average tangible common equity from continuing operations was 16.73%. The second quarter included a $73 million net gain on the sale of Key Insurance & Benefits Services, Inc., completed May 4, 2018. Capital and credit metrics remained solid. The estimated Common Equity Tier 1 ratio under the fully phased-in Regulatory Capital Rules was 10.04%, and the Federal Reserve did not object to the 2018 capital plan, which includes up to $1.225 billion of share repurchases from the third quarter of 2018 through the second quarter of 2019 and a dividend increase to $.17 per Common Share for the third quarter. Net loan charge-offs were .27% of average loans in the second quarter, below the company's targeted range of .40% to .60%. Nonperforming loans rose to $545 million at June 30, 2018, from $503 million at December 31, 2017, largely driven by credit migration in the commercial and industrial portfolio. Management expects full-year 2018 net interest income of $3.95 billion to $4.05 billion, noninterest income of $2.5 billion to $2.6 billion, and noninterest expense of $3.85 billion to $3.95 billion. Total loans were $88.2 billion at June 30, 2018, and deposits were $104.5 billion. The filing also notes that KeyCorp issued $750 million of 4.10% Senior Notes due 2028 during the quarter.

KeyCorp Quarterly Report for Q1 Ended Mar 31, 2018

KeyCorp's first-quarter 2018 Form 10-Q reports net income attributable to Key of $418 million, compared to $324 million in the first quarter of 2017. Income from continuing operations attributable to Key was $416 million, and diluted EPS from continuing operations was $.38, versus $.27 a year earlier. Total revenue (taxable-equivalent) was $1.55 billion, with net interest income of $944 million and noninterest income of $601 million. Net interest margin (TE) was 3.15%, up from 3.13% a year earlier, and the cash efficiency ratio was 62.9%. Net loan charge-offs were .25% of average loans, and the provision for credit losses was $61 million. Balance sheet growth was modest. Total loans reached $88.1 billion at March 31, 2018, up from $86.4 billion at December 31, 2017, led by commercial and industrial loans, which rose to $44.3 billion. Deposits were $104.8 billion, a slight decline from year-end, as noninterest-bearing balances fell $2.1 billion. Key's Common Equity Tier 1 ratio under fully phased-in rules was 9.91%, and KeyBank was described as well capitalized. Common share repurchases totaled $199 million in the quarter under the 2017 capital plan, and the Board planned to consider a dividend increase up to $.12 per share in the second quarter of 2018. Management's 2018 outlook calls for net interest income of $3.95 billion to $4.05 billion, noninterest income of $2.5 billion to $2.6 billion, and noninterest expense of $3.85 billion to $3.95 billion. The company also agreed to sell Key Insurance & Benefits Services, Inc. to USI Insurance Services, with closing expected in the second quarter of 2018. The filing notes that the expected 2018 Common Equity Tier 1 capital adequacy and tax reform effects remain under review.

KeyCorp Quarterly Report for Q3 Ended Sep 30, 2017

KeyCorp reported third-quarter 2017 net income from continuing operations attributable to Key common shareholders of $349 million, or $.32 per common share, compared with $165 million, or $.16 per diluted share, in the third quarter of 2016. The results included $36 million of merger-related charges and a $5 million merchant services gain adjustment, a pre-tax net impact of $41 million, or $.03 per common share. Net interest income was $948 million and noninterest income was $592 million, with the net interest margin at 3.15% (TE), up from 2.85% a year earlier, reflecting the full-quarter benefit of the First Niagara acquisition. Nine-month noninterest income rose to $1.8 billion from $1.5 billion, and cards and payments income grew 13.6% in the quarter. Credit quality improved. Net loan charge-offs were .15% of average loans for the quarter, and nonperforming loans fell to $517 million (.60% of period-end portfolio loans) from $723 million a year earlier. The quarterly provision of $51 million reflected a large recovery in the commercial and industrial portfolio. The allowance for loan and lease losses was $880 million, or 1.02% of period-end loans. Management expects net loan charge-offs to remain below its 40 to 60 basis point target range for the rest of 2017. Capital ratios remained above regulatory requirements. KeyCorp estimated a Common Equity Tier 1 ratio of 10.26% under current rules and 10.15% on a fully phased-in basis. The company repurchased $277 million of common shares in the quarter under its 2017 capital plan, which allows up to $800 million of repurchases through the second quarter of 2018, and paid a $.095 quarterly dividend. The Board plans to consider raising the dividend to up to $.105 in the fourth quarter of 2017. The company also completed the acquisition of Cain Brothers in early October 2017.

KeyCorp Quarterly Report for Q2 Ended Jun 30, 2017

KeyCorp reported net income attributable to Key of $412 million for the second quarter of 2017, or $.36 per common share from continuing operations attributable to Key common shareholders (up from $193 million, or $.23 per share, in the second quarter of 2016). The quarter included notable items with a pre-tax net benefit of $43 million, including a $64 million gain related to the merchant services business and a $44 million of merger-related charges. Net interest income was $973 million, with a net interest margin of 3.30% on a taxable-equivalent basis, reflecting the First Niagara acquisition and $100 million of purchase accounting accretion. Noninterest income rose to $653 million, and noninterest expense was $995 million, including $44 million of merger-related charges. Credit metrics improved from the prior year: nonperforming loans fell to $507 million (.59% of period-end portfolio loans) from $619 million a year earlier, and net loan charge-offs were .31% of average loans in the quarter. Capital ratios declined following the First Niagara acquisition, with a Common Equity Tier 1 ratio of 9.91% at June 30, 2017, versus 11.10% a year earlier. The company completed $94 million of common share repurchases in the second quarter, and the Federal Reserve did not object to its 2017 capital plan, which includes up to $800 million of share repurchases from the third quarter of 2017 through the second quarter of 2018. Management guided for full-year 2017 net interest income of $3.8 billion to $3.9 billion, noninterest income of $2.35 billion to $2.45 billion, and noninterest expense excluding merger-related charges of $3.7 billion to $3.8 billion. The Board plans to consider a potential quarterly common dividend increase, up to $.105 per share, in the fourth quarter of 2017.

KeyCorp Quarterly Report for Q1 Ended Mar 31, 2017

KeyCorp's first-quarter 2017 Form 10-Q reports net income attributable to Key of $324 million, and net income from continuing operations attributable to Key common shareholders of $296 million, or $.27 per diluted common share, compared with $182 million, or $.22 per share, in the first quarter of 2016. Net interest income rose to $918 million from $604 million, and noninterest income rose to $577 million from $431 million, largely reflecting the First Niagara acquisition completed August 1, 2016. Merger-related charges totaled $81 million in the quarter, compared with $24 million a year earlier. Total assets were $134.5 billion at March 31, 2017, versus $136.5 billion at December 31, 2016, and total loans were $86.1 billion. Credit metrics improved year over year. The provision for credit losses fell to $63 million from $89 million, nonperforming loans declined to $573 million, and net loan charge-offs were $58 million, or .27% of average loans. Key reported a Common Equity Tier 1 ratio of 9.91% and a Tier 1 risk-based capital ratio of 10.74%, up from 9.54% and 10.89% at year-end 2016 on a different basis, and returned capital through $160 million of common share repurchases and a quarterly dividend of $.085 per share. Management's full-year 2017 outlook includes net interest income of $3.7 billion to $3.8 billion and noninterest income of $2.3 billion to $2.4 billion. The filing also notes that Series A Preferred Stock converted into common shares on March 20, 2017, and that Series C Preferred Stock was redeemed for cash on February 15, 2017. The company's ratios and dividend-related commentary are disclosed in the filing's MD&A, and the Board will consider a possible increase in the common dividend to as much as $.095 per share for the second quarter of 2017.

KeyCorp Quarterly Report for Q3 Ended Sep 30, 2016

KeyCorp reported third-quarter 2016 net income attributable to Key of $172 million, or $.17 per common share, against $219 million in the year-ago quarter, with net income from continuing operations attributable to Key common shareholders of $165 million ($.16 diluted). Results were shaped by the August 1, 2016 acquisition of First Niagara, which contributed approximately $4.0 billion of total consideration, about 390 branches, and $23 billion of loans at the acquisition date. Third-quarter results included $207 million of merger-related charges, which pushed the effective tax rate down to 9.1% from 24.4% a year earlier. Excluding those charges, the filing states the tax rate would have been 23.4%. Total assets rose to $135.8 billion at September 30, 2016, from $95.1 billion at December 31, 2015, and total loans reached $85.5 billion, up from $59.9 billion. Deposits grew to $104.2 billion from $71.0 billion. Net interest income was $780 million for the quarter versus $591 million a year earlier, and the net interest margin was 2.85%, down two basis points from 2.87%. Noninterest expense rose to $1.08 billion from $724 million, reflecting First Niagara and merger costs. Capital remained above regulatory requirements, with a Common Equity Tier 1 ratio of 9.56% and a tangible common equity ratio of 8.27%, both lower than a year earlier as the filing attributes to the acquisition. The filing also reports a September 9, 2016 sale of 18 Buffalo-area branches to Northwest Bank, divesting $439 million of loans and $1.6 billion of deposits as a condition of the merger, and the issuance of $525 million of Series D preferred stock. Nonperforming loans were $723 million, or .85% of period-end portfolio loans, compared with .67% a year earlier, and the filing notes that the First Niagara portfolio contributed $150 million of that total.

KeyCorp Quarterly Report for Q2 Ended Jun 30, 2016

KeyCorp's Form 10-Q for the quarter ended June 30, 2016 reports second-quarter 2016 net income attributable to Key of $202 million, and net income from continuing operations attributable to Key common shareholders of $193 million, or $.23 per common share, compared with $230 million, or $.27 per share, in the second quarter of 2015. Net interest income on a taxable-equivalent basis was $605 million with a net interest margin of 2.76%, versus 2.88% a year earlier, which the company attributes to higher liquidity, lower reinvestment yields and lower loan fees. Noninterest income was $473 million, down from $488 million, mainly because investment banking and debt placement fees fell $43 million. Noninterest expense rose to $751 million, including $45 million of merger-related expense tied to the pending First Niagara acquisition. Credit metrics softened somewhat. The provision for credit losses was $52 million, net loan charge-offs were .28% of average loans, and nonperforming loans rose to $619 million (1.00% of period-end portfolio loans) from $419 million a year earlier, mainly from credit migration in the oil and gas portfolio. The allowance for loan and lease losses was $854 million, or 1.38% of period-end loans. Total loans reached $62.1 billion and deposits $75.3 billion. Capital ratios remained above requirements, with a Common Equity Tier 1 ratio of 11.10%, and the Federal Reserve did not object to the 2016 capital plan, which includes up to $350 million of share repurchases. The filing states that First Niagara merged into KeyCorp on August 1, 2016, with a total consideration of approximately $4.0 billion, adding roughly 390 branches and $40 billion of total assets as of June 30, 2016. The company expects to resume share repurchases in the third quarter of 2016 following the completion of the acquisition.

KeyCorp Quarterly Report for Q1 Ended Mar 31, 2016

KeyCorp's first-quarter 2016 Form 10-Q, filed May 5, 2016, reports net income attributable to Key of $188 million, or $.22 per common share on a diluted basis, against $233 million in the first quarter of 2015. Income from continuing operations attributable to Key common shareholders was $182 million, compared with $222 million a year earlier. Net interest income rose to $604 million from $571 million, with a net interest margin of 2.89% versus 2.91%. Noninterest income fell to $431 million from $437 million, mainly because net gains from principal investing dropped to zero from $29 million. Noninterest expense increased to $703 million from $669 million, including $24 million of merger-related expense tied to the pending First Niagara acquisition. Credit quality weakened in the quarter. The provision for credit losses was $89 million, up from $35 million, and the filing attributes the increase to credit migration in the oil and gas portfolio. Nonperforming loans reached $676 million, or 1.12% of period-end portfolio loans, compared with $437 million, or .75%, a year earlier. Net loan charge-offs were .31% of average loans. The allowance for loan and lease losses was $826 million, or 1.37% of period-end loans, and the company expects it to remain relatively stable for the rest of 2016. The balance sheet grew to $98.4 billion in total assets, and deposits rose to $73.4 billion. Common Equity Tier 1 was 11.07%, and KeyBank met all well-capitalized requirements. The company says the First Niagara merger is expected to close in the third quarter of 2016, subject to regulatory approvals, and it has agreed to sell 18 Buffalo-market branches to Northwest Bank in connection with the transaction. Share repurchases remained suspended, and the quarterly common dividend was $.075 per share.

KeyCorp Quarterly Report for Q3 Ended Sep 30, 2015

KeyCorp's Form 10-Q for the quarter ended September 30, 2015 shows third-quarter net income attributable to Key of $219 million, with income from continuing operations attributable to Key common shareholders of $216 million, or $.26 per common share. Net interest income was $591 million, noninterest income was $470 million, and noninterest expense was $724 million. The net interest margin was 2.87%, and the provision for credit losses rose to $45 million from $19 million a year earlier. Total loans were $60.1 billion at quarter-end, with commercial, financial and agricultural loans up $4.4 billion, or 16.5%, from a year earlier. Capital and credit metrics remained solid. The Common Equity Tier 1 ratio was 10.47%, the Tier 1 risk-based capital ratio was 10.87%, and the tangible common equity ratio was 9.90%. Nonperforming loans were $400 million, or .67% of period-end portfolio loans, down from .71% a year earlier. The ALLL was $790 million, or 1.31% of loans. During the quarter KeyCorp repurchased $123 million of common shares and paid a quarterly dividend of $.075 per share. A material subsequent event is the planned acquisition of First Niagara Financial Group, announced October 30, 2015. The filing states the consideration is approximately $4.1 billion, consisting of 0.680 KeyCorp shares plus $2.30 in cash per First Niagara share, with completion expected in the third quarter of 2016 subject to regulatory and shareholder approvals.

KeyCorp Quarterly Report for Q2 Ended Jun 30, 2015

KeyCorp reported net income attributable to Key of $238 million for the second quarter of 2015, compared to $219 million a year earlier, and net income from continuing operations attributable to Key common shareholders of $230 million, or $.27 per diluted share. Net interest income was $584 million for the quarter, with a net interest margin of 2.88% on a taxable-equivalent basis, versus 2.98% a year earlier. Noninterest income rose to $488 million, led by a record quarter for investment banking and debt placement fees of $141 million, while noninterest expense was $711 million. Average loans were $58.0 billion, up $2.4 billion year over year, with growth concentrated in commercial, financial and agricultural loans. Credit metrics were mixed. The provision for credit losses increased to $41 million from $12 million, and net loan charge-offs were .25% of average loans. Nonperforming loans were $419 million, or .72% of period-end portfolio loans, and the allowance for loan and lease losses was $796 million, or 1.37% of loans. Capital remained strong: the Common Equity Tier 1 ratio was 10.71% and the tangible common equity to tangible assets ratio was 9.86%. The company repurchased $129 million of common shares during the quarter under its 2015 capital plan, which authorizes up to $725 million in repurchases, and the quarterly common dividend was raised to $.075 per share from $.065. Management expects low-single-digit growth in net interest income, mid-single-digit growth in noninterest income, and relatively stable noninterest expense for full-year 2015, and anticipates mid-single-digit average loan growth. The filing was reviewed, not audited, by Ernst & Young LLP.

KeyCorp Quarterly Report for Q1 Ended Mar 31, 2015

KeyCorp reported first-quarter 2015 net income attributable to Key of $233 million, or $.26 per common share on a diluted basis from continuing operations of $222 million attributable to common shareholders. Net interest income was $571 million, down from the year-ago quarter's taxable-equivalent margin of 3.00% to 2.91%, as higher loan balances were offset by lower earning asset yields. Noninterest income was $437 million, up slightly from $435 million, while noninterest expense rose to $669 million from $664 million, driven largely by the Pacific Crest Securities acquisition. Credit metrics improved year over year, though the provision for credit losses increased to $35 million from $4 million. Net loan charge-offs were .20% of average loans, the allowance for loan and lease losses was $794 million or 1.37% of period-end loans, and nonperforming loans represented .75% of period-end portfolio loans compared with .81% a year earlier. Average loans grew to $57.5 billion, with commercial, financial and agricultural loans up $2.9 billion. Capital remained strong, with a Common Equity Tier 1 ratio of 10.64% and a tangible common equity ratio of 9.92%. KeyCorp repurchased $208 million of common shares under its 2014 capital plan, paid a $.065 quarterly dividend, and disclosed that the Federal Reserve did not object to its 2015 capital plan, which includes up to $725 million of repurchases and a proposed dividend increase to $.075 per share subject to Board approval.

KeyCorp Quarterly Report for Q3 Ended Sep 30, 2014

KeyCorp's Form 10-Q for the quarter ended September 30, 2014 reports net income attributable to Key of $186 million for the third quarter of 2014 versus $272 million a year earlier, and net income from continuing operations attributable to Key common shareholders of $197 million, or $.23 per diluted share, compared with $229 million, or $.25, in the third quarter of 2013. Taxable-equivalent net interest income was $581 million with a net interest margin of 2.96%, down from 3.11%, which management attributes largely to lower earning asset yields. Noninterest income fell to $417 million from $459 million, mainly because the prior year included a leveraged lease termination benefit, while noninterest expense declined modestly to $704 million. Credit quality improved: the provision for loan and lease losses was $21 million, net loan charge-offs were .22% of average loans, nonperforming loans fell to $401 million from $541 million a year earlier, and the allowance for loan and lease losses was 1.43% of period-end loans. Average loans grew $2.5 billion year over year, led by commercial, financial and agricultural loans. Capital ratios remained strong, with Tier 1 risk-based capital at 12.01%, Tier 1 common equity at 11.26%, and a tangible common equity ratio of 10.26%. During the quarter KeyCorp repurchased $119 million of common shares and paid a $.065 quarterly dividend, and it completed the acquisition of Pacific Crest Securities on September 3, 2014. The filing also discloses the September 30, 2014 sale of residual interests in its education loan securitization trusts for $57 million, which led to deconsolidation and an after-tax loss of $25 million recorded in discontinued operations. Discontinued operations produced a loss of $17 million in the quarter. Management expects full-year 2014 net interest income to be relatively stable versus 2013, noninterest income to show low single-digit growth, and noninterest expense to decline by a low-to-mid single-digit percentage.

KeyCorp Quarterly Report for Q2 Ended Jun 30, 2014

KeyCorp's Form 10-Q for the quarter ended June 30, 2014 reports second-quarter net income attributable to Key of $219 million, or $.24 per diluted common share, including a $28 million after-tax loss from discontinued operations. Income from continuing operations attributable to Key common shareholders was $242 million, or $.27 per diluted share, compared with $193 million, or $.21, a year earlier. Net interest income was $573 million, down from $581 million, with the net interest margin at 2.98% versus 3.13% a year earlier, reflecting lower asset yields and lower loan fees. Noninterest income rose to $455 million from $429 million, driven by investment banking and debt placement fees and net gains from principal investing, while noninterest expense fell to $689 million from $711 million. Credit quality improved. The provision for loan and lease losses was $10 million versus $28 million a year earlier, net loan charge-offs were .22% of average loans, and nonperforming loans were $396 million, or .71% of period-end portfolio loans, compared with 1.23% a year earlier. The allowance for loan and lease losses was $814 million, or 1.46% of loans. Total loans from continuing operations reached $55.6 billion, and total assets were $91.8 billion. Capital remained strong. Key repurchased $108 million of common shares in the quarter under its 2014 capital plan, which authorizes up to $542 million of repurchases, and the quarterly common dividend was raised from $.055 to $.065 per share. The company estimated a Common Equity Tier 1 ratio of 10.70% under the Regulatory Capital Rules. The filing also discloses the pending acquisition of Pacific Crest Securities, expected to close in the third quarter of 2014, subject to regulatory approval.

KeyCorp Quarterly Report for Q1 Ended Mar 31, 2014

KeyCorp's first-quarter 2014 Form 10-Q reports net income attributable to Key of $242 million, or $.26 diluted EPS from continuing operations attributable to Key common shareholders of $232 million ($.26 per common share, versus $196 million, or $.21, a year earlier). Net interest income was $563 million, down from $583 million, with taxable-equivalent net interest margin of 3.00% versus 3.24% a year earlier, attributed to lower asset yields and loan fees. Noninterest income rose to $435 million from $425 million, while noninterest expense fell to $662 million from $681 million. The provision for loan and lease losses dropped sharply to $6 million from $55 million. Credit quality improved: net loan charge-offs were .15% of average loans versus .38% a year earlier, nonperforming loans were $449 million (.81% of period-end portfolio loans, versus 1.24%), and the allowance for loan and lease losses was $834 million, or 1.50% of loans. Total loans from continuing operations were $55.4 billion, up from $52.6 billion at March 31, 2013, led by commercial, financial and agricultural loans. Total assets were $90.8 billion, and Key shareholders' equity was $10.4 billion. Capital remained strong: Tier 1 common equity ratio was 11.27%, Tier 1 risk-based capital 12.01%, and total risk-based capital 14.23%. The Federal Reserve did not object to the 2014 capital plan, which includes a common share repurchase program of up to $542 million, and the Board will evaluate a proposed increase in the quarterly common dividend from $.055 to $.065 per share in May. The company repurchased $141 million of common shares in the quarter under its 2013 plan.

KeyCorp Quarterly Report for Q3 Ended Sep 30, 2013

KeyCorp's Form 10-Q for the quarter ended September 30, 2013 reports net income attributable to Key of $272 million for the third quarter of 2013, compared to $219 million in the third quarter of 2012, and $680 million for the nine months ended September 30, 2013. Income from continuing operations attributable to Key common shareholders was $229 million, or $.25 per diluted share, versus $211 million, or $.22, a year earlier. The quarter included a $92 million after-tax gain on the sale of Victory Capital Management, partly offset by a $48 million after-tax loss tied to fair value adjustments on education loan securitization trusts, both reported in discontinued operations. Net interest income rose to $578 million from $572 million, while the net interest margin declined to 3.11% from 3.23%. Noninterest income fell to $459 million from $518 million, mainly due to a prior-year $54 million gain on trust preferred redemption and lower leasing gains. Noninterest expense was $716 million, including a $25 million pension settlement charge, and the filing states the efficiency initiative achieved $207 million in annualized run-rate savings. Credit quality improved. The provision for loan and lease losses was $28 million, down from $109 million, and net loan charge-offs were $37 million, or .28% of average loans. Nonperforming loans totaled $541 million, or 1.01% of period-end portfolio loans, versus 1.27% a year earlier, and the allowance for loan and lease losses was $868 million, or 1.62% of loans. Total loans from continuing operations reached $53.6 billion, and average deposits rose to $65.4 billion. The filing reports a Tier 1 common equity ratio of 11.17% and a Tier 1 risk-based capital ratio of 11.92%, and states that KeyCorp repurchased $198 million of common shares during the quarter. KeyCorp also outlined regulatory developments, including the July 2013 final Basel III capital framework, which KeyCorp estimates would produce a 10.6% common equity Tier 1 ratio on a fully phased-in basis at September 30, 2013. The company also completed the acquisition of a commercial mortgage servicing portfolio from Bank of America in June 2013, and the filing states that the company is the third largest servicer of commercial and multifamily loans in the U.S.

KeyCorp Quarterly Report for Q2 Ended Jun 30, 2013

KeyCorp's 10-Q for the quarter ended June 30, 2013 reports net income attributable to Key of $204 million for the second quarter, compared to $236 million a year earlier. Income from continuing operations attributable to Key common shareholders was $193 million, or $.21 per diluted share, versus $217 million, or $.23, in the second quarter of 2012. Net interest income rose to $581 million from $538 million, and the taxable-equivalent net interest margin was 3.13% versus 3.06% a year earlier. Noninterest income fell to $429 million from $457 million, mainly because of lower operating lease income and smaller principal investing gains, while noninterest expense rose to $711 million from $693 million, driven by severance tied to the efficiency initiative. Credit quality improved. Net loan charge-offs were $45 million, or .34% of average loans, compared with $77 million, or .63%, a year earlier. Nonperforming loans were $652 million, or 1.23% of period-end portfolio loans, versus 1.32% a year earlier. The allowance for loan and lease losses stood at $876 million, or 1.65% of loans. Capital remained strong, with a Tier 1 common equity ratio of 11.18% and a tangible common equity ratio of 9.96%. Key repurchased $112 million of common shares during the quarter under its 2013 capital plan, and the Board declared a quarterly dividend of $.055 per share, up from $.05. Key also agreed to sell Victory Capital Management, which closed on July 31, 2013, and acquired substantially all third-party commercial loan servicing rights from Bank of America's Global Mortgages & Securitized Products business on June 24, 2013. The filing expects the after-tax gain on the Victory sale to be between $100 million and $115 million.

KeyCorp Quarterly Report for Q1 Ended Mar 15, 2013

KeyCorp's first-quarter 2013 Form 10-Q reports net income attributable to Key of $204 million, or $.21 diluted EPS from continuing operations attributable to Key common shareholders ($196 million), compared with $200 million net income in the first quarter of 2012. Net interest income rose to $583 million from $553 million, and taxable-equivalent net interest margin was 3.24% versus 3.16% a year earlier. Noninterest income fell to $425 million from $442 million, while noninterest expense was essentially flat at $681 million versus $679 million, and the provision for loan and lease losses rose to $55 million from $42 million. Total loans from continuing operations were $52.6 billion at March 31, 2013, and the allowance for loan and lease losses was $893 million, or 1.70% of loans, down from 1.92% a year earlier. Nonperforming loans were $650 million, and net loan charge-offs were $49 million, or .38% of average loans, versus $101 million, or .82%, in the prior-year quarter. Total deposits were $64.7 billion. Key's Tier 1 common equity ratio was 11.40%, and its Tier 1 risk-based capital ratio was 12.19%. Key also agreed on February 21, 2013 to sell Victory Capital Management and Victory Capital Advisors to a private equity fund for $246 million, which is accounted for as discontinued operations and is expected to close in the third quarter of 2013. The Federal Reserve did not object to Key's 2013 capital plan, which authorizes up to $426 million of common share repurchases, and the Board will consider raising the quarterly common dividend from $0.05 to $0.055 per share at its May meeting.

KeyCorp Quarterly Report for Q3 Ended Sep 30, 2012

KeyCorp reported third-quarter 2012 net income attributable to Key of $219 million, and net income from continuing operations attributable to Key common shareholders of $214 million, or $.23 per common share, compared with $229 million, or $.24 per share, in the third quarter of 2011. For the nine months ended September 30, 2012, income from continuing operations attributable to Key common shareholders was $634 million, or $.67 per share, versus $656 million, or $.71, a year earlier. Net interest income rose to $572 million from $549 million, the net interest margin was 3.23% versus 3.09%, and noninterest income increased to $544 million from $483 million, helped by gains on leased equipment and a gain on the redemption of trust preferred securities. Noninterest expense rose to $734 million from $692 million. Credit quality improved on a balance basis while provisions rose. The provision for loan and lease losses was $109 million in the third quarter of 2012 versus $10 million a year earlier, reflecting $45 million of incremental charge-offs from updated regulatory guidance on Chapter 7 bankruptcy loans and about $32 million tied to the acquired credit card and branch portfolios. Nonperforming assets fell to $718 million from $914 million, and the allowance for loan and lease losses was $888 million, or 1.73% of loans, down from 2.35%. Total assets were $86.95 billion at September 30, 2012. Capital ratios remained strong, with a Tier 1 common equity ratio of 11.30%, a Tier 1 risk-based capital ratio of 12.10%, and an estimated Basel III Tier 1 common equity ratio of 10.41%. During the third quarter KeyCorp repurchased 9.6 million common shares for about $82 million, redeemed $707 million of trust preferred securities, and paid a $.05 quarterly dividend. Key also acquired 37 branches in Western New York on July 13, 2012, adding about $2 billion of assets and deposits, and Key-branded credit card assets from Elan Financial Services on August 1, 2012.

KeyCorp Quarterly Report for Q2 Ended Jun 30, 2012

KeyCorp reported net income attributable to Key of $236 million for the second quarter of 2012, compared to $240 million in the second quarter of 2011, and net income from continuing operations attributable to Key common shareholders of $221 million, or $.23 per common share. For the six months ended June 30, 2012, net income attributable to Key was $436 million. Total assets were $86.5 billion at June 30, 2012, compared to $88.8 billion at December 31, 2011. Net interest income declined to $538 million for the quarter from $564 million a year earlier, and the net interest margin fell to 3.06% from 3.19%, which management attributed in part to a $13 million reduction from write-offs tied to early termination of leveraged leases and to the continued low-rate environment. Noninterest income rose to $485 million, helped by $31 million of gains on leased equipment from those lease terminations. Credit quality continued to improve. The allowance for loan and lease losses was $888 million, or 1.79% of loans, versus 2.57% a year earlier, and nonperforming assets fell to $751 million from $950 million at June 30, 2011, which the filing describes as the eleventh consecutive quarterly decline. Net loan charge-offs were $77 million, or .63% of average loans. Capital ratios remained strong, with a Tier 1 common equity ratio of 11.63%, a tangible common equity ratio of 10.44%, and a Tier 1 risk-based capital ratio of 12.45%. The company repurchased $82 million of common shares in the quarter and raised its quarterly dividend to $.05 per share from $.03. Management also announced efficiency initiatives targeting $150 to $200 million in expense reductions by December 2013, and completed the acquisition of 37 branches in Upstate New York on July 13, 2012, which added approximately $2.1 billion in deposits. The filing also notes regulatory developments, including proposed Basel III rules and the phase-out of trust preferred securities as Tier 1 capital beginning in 2013. KeyCorp redeemed trust preferred securities totaling approximately $707 million on July 12, 2012. Management expects the net interest margin to rise into the 3.20% range in the second half of 2012 as higher-cost certificates of deposit mature.

KeyCorp Quarterly Report for Q1 Ended Mar 31, 2012

KeyCorp's first-quarter 2012 Form 10-Q, filed May 3, 2012, reports net income attributable to Key of $200 million, or $.20 per diluted common share, compared with $263 million in the first quarter of 2011. Net income from continuing operations attributable to Key common shareholders was $199 million, or $.21 per common share, versus $184 million a year earlier. Results were supported by improved asset quality: net loan charge-offs fell $92 million from the prior-year quarter to $101 million, or .82% of average loans, and nonperforming assets declined $322 million to $767 million. Net interest income fell to $553 million from $597 million, with the net interest margin at 3.16% versus 3.25% a year earlier, as the low-rate environment compressed spreads. Noninterest income rose to $472 million from $457 million, while noninterest expense was essentially flat at $703 million. Capital ratios were strong: the tangible common equity ratio was 10.26%, the Tier 1 common equity ratio was 11.55%, and the Tier 1 risk-based capital ratio was 13.29%, all reported as compared with the prior-year quarter. The Board authorized up to $312 million of common share repurchases in March 2012, and KeyCorp's 2012 capital plan, submitted under CCAR, includes a proposed increase in the quarterly common dividend from $.03 to $.05 per share, to be evaluated at the May board meeting. Key also has a pending acquisition of 37 retail branches in upstate New York, with approximately $2.4 billion in deposits and $400 million in loans, which received OCC approval on April 18, 2012 and is expected to close in early third quarter 2012. The filing also notes risks: Dodd-Frank phase-out of Tier 1 treatment for capital securities beginning January 1, 2013, Fitch's March 2012 downgrade of KeyCorp's Series A Preferred Stock and trust preferred securities, and a lawsuit by Austin's former owners after a February 2012 ruling denied KeyCorp's motion to dismiss. Ernst & Young reviewed the interim statements and found no material modifications needed.

KeyCorp Quarterly Report for Q3 Ended Sep 30, 2011

KeyCorp reported net income attributable to Key of $217 million for the third quarter of 2011, compared to $219 million in the third quarter of 2010, and net income attributable to Key common shareholders of $212 million, or $.22 per diluted share. Income from continuing operations attributable to Key common shareholders was $229 million, or $.24 per share. For the nine months ended September 30, 2011, net income attributable to Key common shareholders was $619 million, or $.67 per share, compared with $111 million, or $.13 per share, a year earlier. Net interest income fell to $549 million in the quarter from $640 million a year earlier, while the provision for loan and lease losses dropped to $10 million from $94 million, and noninterest expense declined to $692 million from $736 million. Credit quality improved meaningfully. Nonperforming assets declined to $914 million at September 30, 2011, from $1.8 billion a year earlier, and net loan charge-offs were $109 million, or .90% of average loans, versus $357 million, or 2.69%, in the prior-year quarter. The allowance for loan and lease losses fell to $1.1 billion, or 2.35% of loans. Total loans from continuing operations declined to $48.2 billion from $51.4 billion a year earlier, and the net interest margin was 3.09%, down from 3.35%. Capital ratios strengthened. The company repurchased the $2.5 billion of Series B Preferred Stock issued to the U.S. Treasury under TARP, and the Tier 1 common equity ratio rose to 11.28% from 8.61% a year earlier. Tangible common equity to tangible assets was 9.82%. The filing also notes the quarterly common dividend was increased to $.03 per share and that the company is preparing a 2012 capital plan that may include dividend increases and share repurchases, subject to regulatory approval.

KeyCorp Quarterly Report for Q2 Ended Jun 30, 2011

KeyCorp (KEY) reported improving results for the second quarter of 2011, with net income from continuing operations attributable to Key common shareholders of $243 million, or $.26 per common share, versus $56 million, or $.06 per share, a year earlier. For the six months ended June 30, 2011, income from continuing operations attributable to Key common shareholders was $427 million, or $.46 per share, compared with a loss of $42 million, or $.05 per share, in the prior-year period. Management attributed the improvement to lower credit costs, lower noninterest expense, and continued asset quality gains: net loan charge-offs fell to $134 million (1.11% of average loans) from $435 million (3.18%) a year earlier, and nonperforming assets declined to $950 million, representing 1.98% of portfolio loans, OREO and other nonperforming assets. Revenue remained under pressure. Net interest income was $1.16 billion for the quarter, and the net interest margin was 3.19% (taxable-equivalent), with management expecting continued pressure. Average loans declined year over year, and total loans fell to $47.8 billion from $53.3 billion at June 30, 2010, though management noted the quarterly decline had slowed and it may be nearing an inflection point. Noninterest income was $454 million, down 8% from the prior-year quarter. Noninterest expense fell 11.6% in the quarter, to $680 million, and Keyvolution cost savings reached $320 million on an annual run-rate basis. Capital strengthened during the period. KeyCorp completed the repurchase of $2.5 billion of TARP Series B Preferred Stock and the related warrant, and the Tier 1 common equity ratio rose to 11.14% from 8.07% a year earlier. The quarterly common dividend was increased to $.03 per share. The company also submitted redemption notices on August 2, 2011, for four capital securities series, and the Federal Reserve raised no objections to its updated capital plan on August 1, 2011. Management cited ongoing Austin-related Madoff litigation and a newly filed acquisition-related lawsuit as matters it is unable to assess for material adverse effect at this early stage.

KeyCorp Quarterly Report for Q1 Ended Mar 31, 2011

KeyCorp's first-quarter 2011 Form 10-Q reports income from continuing operations attributable to Key common shareholders of $184 million, or $.21 per common share, after a $49 million deemed dividend tied to the repurchase of TARP preferred stock. That compares with a loss from continuing operations attributable to common shareholders of $98 million, or $.11 per share, in the first quarter of 2010. Net income attributable to Key common shareholders was $173 million, or $.19 per diluted share. Net interest margin was 3.25%, and the company expects net interest income and margin to decline in the second quarter of 2011 and to remain in a 3.15% to 3.25% range for the rest of 2011. Credit quality continued to improve. Net loan charge-offs fell to $193 million, or 1.59% of average loans, from $522 million, or 3.67%, a year earlier. The provision for loan and lease losses was a $40 million credit, and nonperforming assets declined to $1.1 billion. The allowance for loan and lease losses was $1.4 billion, or 2.83% of loans, covering 155.03% of nonperforming loans. Capital was strengthened during the quarter. KeyCorp repurchased $2.5 billion of Series B Preferred Stock issued to the U.S. Treasury under TARP, funded by a $625 million common stock offering at $8.85 per share and a $1 billion senior medium-term note offering. Tier 1 common equity rose to 10.74% from 7.51% a year earlier, and the company stated it had no objections from the Federal Reserve to its capital plan, which includes a proposed increase in the quarterly common dividend from $0.01 to $0.03 per share.

KeyCorp Quarterly Report for Q3 Ended Sep 30, 2010

KeyCorp reported a return to profitability for the third quarter of 2010. Net income attributable to Key common shareholders was $178 million, or $.20 per share, compared with a net loss of $438 million for the third quarter of 2009. Income from continuing operations attributable to common shareholders was $163 million, or $.19 per share. For the first nine months of 2010, net income attributable to common shareholders was $111 million, compared with a net loss of $1.364 billion a year earlier. Management attributed the quarter's improvement to higher pre-provision net revenue and a lower provision for loan losses. Net charge-offs were $357 million in the quarter, down $230 million from the third quarter of 2009, and nonperforming loans fell to $1.4 billion. The balance sheet shrank as loans declined. Total loans from continuing operations were $51.4 billion at September 30, 2010, compared with $58.8 billion at December 31, 2009, and total assets were $94.0 billion. Securities available for sale rose to $21.2 billion, and the loan-to-deposit ratio was 92%. Capital ratios improved: the Tier 1 common equity ratio was 8.61% and the Tier 1 risk-based capital ratio was 14.30%. The net interest margin was 3.35% for the quarter, and management expects the fourth-quarter margin to be in the 3.30% range. The filing also discloses risks. On November 1, 2010, Moody's downgraded KeyBank's short-term borrowings, senior long-term debt and subordinated debt by one notch each. The filing states that this could require Key to evaluate alternative investments for escrow deposit balances of $1.50 to $1.85 billion tied to commercial mortgage securitizations, and that it may trigger impairment of mortgage servicing assets. Shareholder derivative lawsuits and the Taylor ERISA litigation remain pending.