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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 8-K
 

CURRENT REPORT
Pursuant to Section 13 or 15(d)
 of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 20, 2022
 
KeyCorp
key-20220720_g1.jpg
(Exact name of registrant as specified in its charter)
 
Ohio
001-11302
34-6542451
State or other jurisdiction of incorporation or organization:Commission File NumberI.R.S. Employer Identification Number:
127 Public Square,
Cleveland,
Ohio
44114-1306
Address of principal executive offices:Zip Code:

(216) 689-3000
Registrant’s telephone number, including area code:
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities Registered Pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Shares, $1 par value
KEY
New York Stock Exchange
Depositary Shares (each representing a 1/40th interest in a share of Fixed-to-Floating Rate Perpetual Non-Cumulative Preferred Stock, Series E)
KEY PrI
New York Stock Exchange
Depositary Shares (each representing a 1/40th interest in a share of Fixed Rate Perpetual Non-Cumulative Preferred Stock, Series F)
KEY PrJ
New York Stock Exchange
Depositary Shares (each representing a 1/40th interest in a share of Fixed Rate Perpetual Non-Cumulative Preferred Stock, Series G)
KEY PrK
New York Stock Exchange


Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

    Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐



Item 2.02     Results of Operations and Financial Condition.

    On July 20, 2022, KeyCorp issued a press release announcing its financial results for the three- and six-month period ended June 30, 2022 (the “Press Release”), and posted on its website its second quarter 2022 Supplemental Information Package (the “Supplemental Information Package”). The Press Release and Supplemental Information Package are being furnished as Exhibit 99.1 and Exhibit 99.2, respectively.

The information in the preceding paragraph, as well as Exhibit 99.1 and Exhibit 99.2 referenced therein, shall not be deemed “filed” for purposes of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), nor shall it be incorporated by reference in any filing under the Securities Act of 1933, as amended (the “Securities Act”).

    KeyCorp’s Consolidated Balance Sheets and Consolidated Statements of Income (collectively, the “Financial Statements”), included as part of the Press Release, are filed as Exhibit 99.3 to this report. Exhibit 99.3 is deemed “filed” for purposes of Section 18 of the Exchange Act and, therefore, may be incorporated by reference in filings under the Securities Act.

Item 9.01     Financial Statements and Exhibits.

(d)    Exhibits

The following exhibits are furnished, or filed in the case of Exhibit 99.3, herewith:

99.1    Press Release, dated July 21, 2022, announcing financial results for the three-month and six-month periods ended June 30, 2022

99.2    Supplemental Information Package reviewed during the conference call and webcast.

99.3    Financial Statements.

104    Cover Page Interactive Data File (embedded within the Inline XBRL document).


SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
KEYCORP
(Registrant)
Date: July 20, 2022/s/ Douglas M. Schosser
By: Douglas M. Schosser
Chief Accounting Officer


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KEYCORP REPORTS SECOND QUARTER 2022 NET INCOME OF $504 MILLION,
OR $.54 PER DILUTED COMMON SHARE
Positive operating leverage compared to the prior quarter and year-ago period

Revenue up 6% from the prior quarter, driven by growth in net interest income

Strong loan growth across commercial and consumer businesses

Credit quality remains strong with net charge-offs to average loans of 16 basis points

Expanded Laurel Road’s offering for healthcare professionals and completed acquisition of GradFin



    CLEVELAND, July 21, 2022 - KeyCorp (NYSE: KEY) today announced net income from continuing operations attributable to Key common shareholders of $504 million, or $.54 per diluted common share for the second quarter of 2022. This compared to $420 million, or $.45 per diluted common share, for the first quarter of 2022 and $698 million, or $.72 per diluted common share, for the second quarter of 2021.

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KeyCorp Reports Second Quarter 2022 Profit     
July 21, 2022
Page 2

Selected Financial Highlights
Dollars in millions, except per share dataChange 2Q22 vs.
2Q221Q222Q211Q222Q21
Income (loss) from continuing operations attributable to Key common shareholders$504 $420 $698 20.0 %(27.8)%
Income (loss) from continuing operations attributable to Key common shareholders per common share — assuming dilution
.54 .45 .72 20.0 (25.0)
Return on average tangible common equity from continuing operations (a)
20.90 %14.12 %21.34 %N/AN/A
Return on average total assets from continuing operations1.16 .99 1.63 N/AN/A
Common Equity Tier 1 ratio (b)
9.2 9.4 9.9 N/AN/A
Book value at period end$13.48 $14.43 $16.75 (6.6)(19.5)
Net interest margin (TE) from continuing operations2.61 %2.46 %2.52 %N/AN/A
(a)The table entitled “GAAP to Non-GAAP Reconciliations” in the attached financial supplement presents the computations of certain financial measures related to “Return on average tangible common equity from continuing operations.” The table reconciles the GAAP performance measures to the corresponding non-GAAP measures, which provides a basis for period-to-period comparisons.
(b)June 30, 2022 ratio is estimated.
TE = Taxable Equivalent, N/A = Not Applicable

INCOME STATEMENT HIGHLIGHTS
Revenue
Dollars in millionsChange 2Q22 vs.
 2Q221Q222Q211Q222Q21
Net interest income (TE)$1,104 $1,020 $1,023 8.2 %7.9 %
Noninterest income688 676 750 1.8 (8.3)
Total revenue$1,792 $1,696 $1,773 5.7 %1.1 %
TE = Taxable Equivalent
Taxable-equivalent net interest income was $1.1 billion for the second quarter of 2022 and the net interest margin was 2.61%. Compared to the second quarter of 2021, net interest income increased $81 million and the net interest margin increased by nine basis points. Net interest income and the net interest margin benefited from higher earning asset balances, a favorable balance sheet mix, and higher interest rates. Net interest income and the net interest margin were negatively impacted by the exit of the indirect auto loan portfolio and lower loan fees from the Paycheck Protection Program ("PPP").

Compared to the first quarter of 2022, taxable-equivalent net interest income increased by $84 million and the net interest margin increased by 15 basis points. Net interest income and the net interest margin benefited from a favorable balance sheet mix and higher interest rates, partly offset by lower loan fees related to the PPP and higher interest-bearing deposit costs. Net interest income also benefited from one additional day in the quarter.

Noninterest Income
Dollars in millionsChange 2Q22 vs.
2Q221Q222Q211Q222Q21
Trust and investment services income$137 $136 $133 .7 %3.0 %
Investment banking and debt placement fees149 163 217 (8.6)(31.3)
Service charges on deposit accounts96 91 83 5.5 15.7 
Operating lease income and other leasing gains28 32 36 (12.5)(22.2)
Corporate services income88 90 55 (2.2)60.0 
Cards and payments income85 80 113 6.3 (24.8)
Corporate-owned life insurance income35 31 30 12.9 16.7 
Consumer mortgage income14 21 26 (33.3)(46.2)
Commercial mortgage servicing fees45 36 44 25.0 2.3 
Other income11 (4)13 375.0 (15.4)
Total noninterest income$688 $676 $750 1.8 %(8.3)%

    


KeyCorp Reports Second Quarter 2022 Profit     
July 21, 2022
Page 3

    Compared to the second quarter of 2021, noninterest income decreased by $62 million. The decrease was largely due to investment banking and debt placement fees, down $68 million, reflecting a slowdown in capital markets activity. Other drivers for the decrease include cards and payments income and consumer mortgage income, down $28 million and $12 million, respectively. Cards and payments income decreased as a result of lower levels of prepaid card activity. Consumer mortgage income decreased reflecting higher balance sheet retention as well as lower gain on sale margins. Partially offsetting the decrease was a $33 million increase in corporate services income, due to higher derivatives trading income.

Compared to the first quarter of 2022, noninterest income increased by $12 million. The primary drivers were other income, which increased $15 million, reflecting market-related adjustments in the prior quarter and commercial mortgage servicing, up $9 million, as a result of higher special servicing fees. Partially offsetting the increase was a $14 million decrease in investment banking and debt placement fees, related to a slowdown in capital markets activity.

Noninterest Expense
Dollars in millionsChange 2Q22 vs.
2Q221Q222Q211Q222Q21
Personnel expense$607 $630 $623 (3.7)%(2.6)%
Nonpersonnel expense471 440 453 7.0 4.0 
Total noninterest expense$1,078 $1,070 1,076 .7 %.2 %
    Key’s noninterest expense was $1.1 billion for the second quarter of 2022, an increase of $2 million from the year-ago period. Nonpersonnel expense increased $18 million, including an increase in other expense, due to higher travel and entertainment, as well as an increase in computer processing expense. Personnel expense decreased $16 million, driven by lower incentive and stock-based compensation, reflecting lower production related incentives, partially offset by an increase in salaries and contract labor, as a result of higher merit increases and technology contract labor.

    Compared to the first quarter of 2022, noninterest expense increased $8 million. The increase was driven by nonpersonnel expense, which increased $31 million, largely due to higher other expense, reflecting increased travel and entertainment. Other contributing factors for the linked quarter increase include higher marketing expense and net occupancy expense. Partially offsetting the linked quarter increase was a $23 million decrease in personnel expense. The decrease was related to lower incentive and stock-based compensation as a result of lower production-related incentives and lower employee benefits expense.

BALANCE SHEET HIGHLIGHTS
Average Loans
Dollars in millionsChange 2Q22 vs.
2Q221Q222Q211Q222Q21
Commercial and industrial (a)
$53,858 $51,574 $51,808 4.4 %4.0 %
Other commercial loans21,173 20,556 19,034 3.0 11.2 
Total consumer loans34,107 31,632 29,972 7.8 13.8 
Total loans$109,138 $103,762 $100,814 5.2 %8.3 %
(a)Commercial and industrial average loan balances include $153 million, $141 million, and $132 million of assets from commercial credit cards at June 30, 2022, March 31, 2022, and June 30, 2021, respectively.
    
Average loans were $109.1 billion for the second quarter of 2022, an increase of $8.3 billion compared to the second quarter of 2021. Commercial loans increased by $4.2 billion, reflecting strength in commercial mortgage real estate loans and core commercial and industrial loans, which mitigated the impact of a $6.8 billion decline in PPP balances. Consumer loans increased $4.1 billion, due to strength from Key's consumer mortgage business and Laurel Road, partly offset by the sale of the indirect auto loan portfolio.

Compared to the first quarter of 2022, average loans increased by $5.4 billion. Commercial loans increased $2.9 billion, reflecting strength in commercial and industrial loans and commercial mortgage real estate loans. Consumer loans increased $2.5 billion, driven by continued strength in Key's consumer mortgage business and Laurel Road.


KeyCorp Reports Second Quarter 2022 Profit     
July 21, 2022
Page 4


Average Deposits
Dollars in millionsChange 2Q22 vs.
2Q221Q222Q211Q222Q21
Non-time deposits$144,012 $146,426 $139,480 (1.6)%3.2 %
Certificates of deposit ($100,000 or more)1,487 1,639 2,212 (9.3)(32.8)
Other time deposits1,972 2,098 2,630 (6.0)(25.0)
Total deposits$147,471 $150,163 $144,322 (1.8)%2.2 %
Cost of total deposits.06 %.04 %.05 %N/AN/A
N/A = Not Applicable

    Average deposits totaled $147.5 billion for the second quarter of 2022, an increase of $3.1 billion compared to the year-ago quarter. The increase reflects growth from consumer and commercial relationships, including higher commercial escrow and retail deposits, partially offset by a decline in time deposits.

Compared to the first quarter of 2022, average deposits decreased by $2.7 billion, largely reflecting seasonal commercial outflows and public sector deposit outflows related to stimulus funds.


ASSET QUALITY
Dollars in millionsChange 2Q22 vs.
2Q221Q222Q211Q222Q21
Net loan charge-offs$44 $33 $22 33.3 %100.0 %
Net loan charge-offs to average total loans.16 %.13 %.09 %N/AN/A
Nonperforming loans at period end$429 $439 $694 (2.3)(38.2)
Nonperforming assets at period end463 467 738 (0.9)(37.3)
Allowance for loan and lease losses1,099 1,105 1,220 (0.5)(9.9)
Allowance for credit losses1,272 1,271 1,372 0.1 (7.3)
Provision for credit losses45 83 (222)(45.8)120.3 
Allowance for loan and lease losses to nonperforming loans256.2 %251.7 %175.8 %N/AN/A
Allowance for credit losses to nonperforming loans296.5 289.5 197.7 N/AN/A
N/A = Not Applicable

    
    Key's provision for credit losses was $45 million, compared to a net benefit of $222 million in the second quarter of 2021 and provision of $83 million in the first quarter of 2022.

    Net loan charge-offs for the second quarter of 2022 totaled $44 million, or .16% of average total loans. These results compare to $22 million, or .09%, for the second quarter of 2021 and $33 million, or .13%, for the first quarter of 2022. Key’s allowance for credit losses was $1.3 billion, or 1.13% of total period-end loans at June 30, 2022, compared to 1.36% at June 30, 2021, and 1.19% at March 31, 2022.

    At June 30, 2022, Key’s nonperforming loans totaled $429 million, which represented .38% of period-end portfolio loans. These results compare to .69% at June 30, 2021, and .41% at March 31, 2022. Nonperforming assets at June 30, 2022, totaled $463 million, and represented .41% of period-end portfolio loans and OREO and other nonperforming assets. These results compare to .73% at June 30, 2021, and .44% at March 31, 2022.

CAPITAL

Key’s estimated risk-based capital ratios included in the following table continued to exceed all “well-capitalized” regulatory benchmarks at June 30, 2022.


KeyCorp Reports Second Quarter 2022 Profit     
July 21, 2022
Page 5

Capital Ratios
6/30/20223/31/20226/30/2021
Common Equity Tier 1 (a)
9.2 %9.4 %9.9 %
Tier 1 risk-based capital (a)
10.4 10.7 11.3 
Total risk based capital (a)
12.0 12.4 13.2 
Tangible common equity to tangible assets (b)
5.3 6.0 7.4 
Leverage (a)
8.8 8.6 8.7 
(a)June 30, 2022 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 capital position remained strong in the second quarter of 2022. As shown in the preceding table, at June 30, 2022, Key’s estimated Common Equity Tier 1 and Tier 1 risk-based capital ratios stood at 9.2% and 10.4%, respectively. Key's tangible common equity ratio was 5.3% at June 30, 2022.

    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 is now in the three-year transition period. On a fully phased-in basis, Key's Common Equity Tier 1 ratio would be reduced by 12 basis points.

Summary of Changes in Common Shares Outstanding
In thousandsChange 2Q22 vs.
2Q221Q222Q211Q222Q21
Shares outstanding at beginning of period932,398 928,850 972,587 .4 %(4.1)%
Open market repurchases, repurchases under the accelerated repurchase program, and return of shares under employee compensation plans(24)(1,707)(13,304)(98.6)(99.8)
Shares issued under employee compensation plans (net of cancellations)269 5,255 993 (94.9)(72.9)
Shares outstanding at end of period932,643 932,398 960,276 — %(2.9)%

    
    During the second quarter of 2022, Key declared a dividend of $.195 per common share.

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.



KeyCorp Reports Second Quarter 2022 Profit     
July 21, 2022
Page 6

Major Business Segments
Dollars in millionsChange 2Q22 vs.
2Q221Q222Q211Q222Q21
Revenue from continuing operations (TE)
Consumer Bank$824 $799 $852 3.1 %(3.3)%
Commercial Bank844 810 871 4.2 (3.1)
Other (a)
124 87 50 42.5 148.0 
Total$1,792 $1,696 $1,773 5.7 %1.1 %
Income (loss) from continuing operations attributable to Key
Consumer Bank$107 $70 $257 52.9 %(58.4)%
Commercial Bank315 283 432 11.3 (27.1)
Other (a)
108 94 35 14.9 208.6 
Total$530 $447 $724 18.6 %(26.8)%
(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. 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


Consumer Bank
Dollars in millionsChange 2Q22 vs.
2Q221Q222Q211Q222Q21
Summary of operations
Net interest income (TE)$570 $543 $599 5.0 %(4.8)%
Noninterest income254 256 253 (.8).4 
Total revenue (TE)824 799 852 3.1 (3.3)
Provision for credit losses8 43 (70)(81.4)111.4 
Noninterest expense676 663 584 2.0 15.8 
Income (loss) before income taxes (TE)140 93 338 50.5 (58.6)
Allocated income taxes (benefit) and TE adjustments33 23 81 43.5 (59.3)
Net income (loss) attributable to Key$107 $70 $257 52.9 %(58.4)%
Average balances
Loans and leases$40,818 $38,637 $40,598 5.6 %.5 %
Total assets43,868 41,814 43,818 4.9 .1 
Deposits91,256 91,468 88,412 (.2)3.2 
Assets under management at period end$49,003 $53,707 $51,013 (8.8)%(3.9)%
TE = Taxable Equivalent




KeyCorp Reports Second Quarter 2022 Profit     
July 21, 2022
Page 7

Additional Consumer Bank Data
Dollars in millionsChange 2Q22 vs.
2Q221Q222Q211Q222Q21
Noninterest income
Trust and investment services income$104 $106 $104 (1.9)%— %
Service charges on deposit accounts59 54 48 9.3 22.9 
Cards and payments income62 57 62 8.8 — 
Consumer mortgage income14 21 26 (33.3)(46.2)
Other noninterest income15 18 13 (16.7)15.4 
Total noninterest income$254 $256 $253 (.8)%.4 %
Average deposit balances
NOW and money market deposit accounts$57,884 $58,625 $56,038 (1.3)%3.3 %
Savings deposits7,515 7,233 6,523 3.9 15.2 
Certificates of deposit ($100,000 or more)1,375 1,520 2,083 (9.5)(34.0)
Other time deposits1,966 2,090 2,616 (5.9)(24.8)
Noninterest-bearing deposits22,516 22,000 21,152 2.3 6.4 
Total deposits$91,256 $91,468 $88,412 (.2)%3.2 %
Other data
Branches978 993 1,014 
Automated teller machines1,284 1,308 1,329 


Consumer Bank Summary of Operations (2Q22 vs. 2Q21)

•Net income attributable to Key of $107 million for the second quarter of 2022, compared to $257 million for the year-ago quarter
•Taxable-equivalent net interest income decreased by $29 million, compared to the second quarter of 2021, related to the sale of the indirect auto portfolio, partially offset by strong consumer mortgage and Laurel Road balance sheet growth
•Average loans and leases increased $220 million, or 0.5%, from the second quarter of 2021, driven by growth in consumer mortgage and Laurel Road, largely offset by the sale of the indirect auto loan portfolio
•Average deposits increased $2.8 billion, or 3.2%, from the second quarter of 2021, driven by higher retail deposits
•Provision for credit losses increased $78 million, compared to the second quarter of 2021, due to a reserve release in the year-ago quarter as uncertainty caused by the pandemic subsided
•Noninterest income increased $1 million, or 0.4%, from the year-ago quarter, driven by an increase in service charges on deposit accounts, partially offset by a decline in consumer mortgage income, reflecting lower gain on sale margins and higher balance sheet retention
•Noninterest expense increased $92 million, or 15.8%, from the year-ago quarter, driven by higher salary and employee benefits expense, as well as investments in digital, security, and fraud



KeyCorp Reports Second Quarter 2022 Profit     
July 21, 2022
Page 8

Commercial Bank
Dollars in millionsChange 2Q22 vs.
2Q221Q222Q211Q222Q21
Summary of operations
Net interest income (TE)$440 $415 $417 6.0 %5.5 %
Noninterest income404 395 454 2.3 (11.0)
Total revenue (TE)844 810 871 4.2 (3.1)
Provision for credit losses37 41 (131)9.8 128.2 
Noninterest expense414 417 451 (.7)(8.2)
Income (loss) before income taxes (TE)393 352 551 11.6 (28.7)
Allocated income taxes and TE adjustments78 69 119 13.0 (34.5)
Net income (loss) attributable to Key$315 $283 $432 11.3 %(27.1)%
Average balances
Loans and leases$67,834 $64,701 $59,953 4.8 %13.1 %
Loans held for sale1,016 1,323 1,341 (23.2)(24.2)
Total assets78,824 74,860 69,101 5.3 14.1 
Deposits54,864 57,289 54,814 (4.2)%0.1 %
TE = Taxable Equivalent

Additional Commercial Bank Data
Dollars in millionsChange 2Q22 vs.
2Q221Q222Q211Q222Q21
Noninterest income
Trust and investment services income$33 $30 $27 10.0 %22.2 %
Investment banking and debt placement fees149 163 215 (8.6)(30.7)
Operating lease income and other leasing gains27 32 35 (15.6)(22.9)
Corporate services income80 82 47 (2.4)70.2 
Service charges on deposit accounts36 36 34 — 5.9 
Cards and payments income23 22 49 4.5 (53.1)
Payments and services income139 140 130 (0.7)6.9 
Commercial mortgage servicing fees45 36 44 25.0 2.3 
Other noninterest income11 (6)3 283.3 266.7
Total noninterest income$404 $395 $454 2.3 %(11.0)%


Commercial Bank Summary of Operations (2Q22 vs. 2Q21)

•Net income attributable to Key of $315 million for the second quarter of 2022, compared to $432 million for the year-ago quarter
•Taxable-equivalent net interest income increased by $23 million, compared to the second quarter of 2021, reflecting core loan growth in commercial and industrial loans and commercial mortgage real estate loans and higher interest rates, partially offset by lower loan fees from the PPP
•Average loan and lease balances increased $7.9 billion, compared to the second quarter of 2021, reflecting growth in core commercial and industrial loans and commercial mortgage real estate loans, partially offset by a decline in PPP balances
•Average deposit balances increased $50 million, or 0.1%, compared to the second quarter of 2021, driven by growth in targeted relationships and higher commercial escrow deposits, partially offset by outflows in interest-bearing deposits
•Provision for credit losses increased $168 million, compared to the second quarter of 2021, due to a reserve release in the year-ago period as uncertainty caused by the pandemic subsided
•Noninterest income decreased $50 million from the year-ago quarter, driven by lower investment banking and debt placement fees and lower cards and payments income, partially offset by an increase in corporate services income
•Noninterest expense decreased $37 million, or 8.2%, from the second quarter of 2021, driven by lower incentive compensation, reflecting a decrease in investment banking and debt placement fees


KeyCorp Reports Second Quarter 2022 Profit     
July 21, 2022
Page 9


*******************************************

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 $187.0 billion at June 30, 2022.

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 1,300 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.


KeyCorp Reports Second Quarter 2022 Profit     
July 21, 2022
Page 10

CONTACTS:
ANALYSTSMEDIA
Vernon L. PattersonSusan Donlan
216.689.0520216.471.3133
Vernon_Patterson@KeyBank.comSusan_E_Donlan@KeyBank.com
Melanie S. KaiserBeth Strauss
216.689.4545216.471.2787
Melanie_S_Kaiser@KeyBank.comBeth_A_Strauss@KeyBank.com
Halle A. NicholsTwitter: @keybank
216.471.2184
Halle_A_Nichols@KeyBank.com
INVESTOR RELATIONS:KEY MEDIA NEWSROOM:
www.key.com/irwww.key.com/newsroom
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, 2021, as well as 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, and the impact of the COVID-19 global pandemic on us, our clients, our third-party service providers, and the markets. 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 July 21, 2022. A replay of the call will be available through July 30, 2022.
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 Reports Second Quarter 2022 Profit     
July 21, 2022
Page 11




KeyCorp
Second Quarter 2022
Financial Supplement


    
Page
Financial Highlights
GAAP to Non-GAAP Reconciliation
Consolidated Balance Sheets
Consolidated Statements of Income
Consolidated Average Balance Sheets, and Net Interest Income and Yields/Rates From Continuing Operations
Noninterest Expense
Personnel Expense
Loan Composition
Loans Held for Sale Composition
Summary of Changes in Loans Held for Sale
Summary of Loan and Lease Loss Experience From Continuing Operations
Asset Quality Statistics From Continuing Operations
Summary of Nonperforming Assets and Past Due Loans From Continuing Operations
Summary of Changes in Nonperforming Loans From Continuing Operations
Line of Business Results


KeyCorp Reports Second Quarter 2022 Profit     
July 21, 2022
Page 12

Financial Highlights
(Dollars in millions, except per share amounts)
Three months ended
6/30/20223/31/20226/30/2021
Summary of operations
Net interest income (TE)$1,104 $1,020 $1,023 
Noninterest income688 676 750 
Total revenue (TE)
1,792 1,696 1,773 
Provision for credit losses45 83 (222)
Noninterest expense1,078 1,070 1,076 
Income (loss) from continuing operations attributable to Key530 447 724 
Income (loss) from discontinued operations, net of taxes3 1 5 
Net income (loss) attributable to Key533 448 729 
Income (loss) from continuing operations attributable to Key common shareholders504 420 698 
Income (loss) from discontinued operations, net of taxes3 1 5 
Net income (loss) attributable to Key common shareholders507 421 703 
Per common share
Income (loss) from continuing operations attributable to Key common shareholders$.54 $.45 $.73 
Income (loss) from discontinued operations, net of taxes— — — 
Net income (loss) attributable to Key common shareholders (a)
.55 .46 .73 
Income (loss) from continuing operations attributable to Key common shareholders — assuming dilution.54 .45 .72 
Income (loss) from discontinued operations, net of taxes — assuming dilution— — — 
Net income (loss) attributable to Key common shareholders — assuming dilution (a)
.54 .45 .73 
Cash dividends declared.195 .195 .185 
Book value at period end13.48 14.43 16.75 
Tangible book value at period end10.40 11.41 13.81 
Market price at period end17.23 22.38 20.65 
Performance ratios
From continuing operations:
Return on average total assets1.16 %.99 %1.63 %
Return on average common equity16.17 11.45 17.54 
Return on average tangible common equity (b)
20.90 14.12 21.34 
Net interest margin (TE)2.61 2.46 2.52 
Cash efficiency ratio (b)
59.5 62.4 59.9 
From consolidated operations:
Return on average total assets1.16 %.99 %1.64 %
Return on average common equity16.27 11.47 17.67 
Return on average tangible common equity (b)
21.03 14.15 21.49 
Net interest margin (TE)2.60 2.46 2.55 
Loan to deposit (c)
78.3 72.9 70.4 
Capital ratios at period end
Key shareholders’ equity to assets7.7 %8.5 %9.9 %
Key common shareholders’ equity to assets6.7 7.4 8.9 
Tangible common equity to tangible assets (b)
5.3 6.0 7.4 
Common Equity Tier 1 (d)
9.2 9.4 9.9 
Tier 1 risk-based capital (d)
10.4 10.7 11.3 
Total risk-based capital (d)
12.0 12.4 13.2 
Leverage (d)
8.8 8.6 8.7 
Asset quality — from continuing operations
Net loan charge-offs
$44 $33 $22 
Net loan charge-offs to average loans
.16 %.13 %.09 %
Allowance for loan and lease losses
$1,099 $1,105 $1,220 
Allowance for credit losses
1,272 1,271 1,372 
Allowance for loan and lease losses to period-end loans
.98 %1.04 %1.21 %
Allowance for credit losses to period-end loans
1.13 1.19 1.36 
Allowance for loan and lease losses to nonperforming loans256.2 251.7 175.8 
Allowance for credit losses to nonperforming loans296.5 289.5 197.7 
Nonperforming loans at period-end$429 $439 $694 
Nonperforming assets at period-end463 467 738 
Nonperforming loans to period-end portfolio loans.38 %.41 %.69 %
Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets.41 .44 .73 
Trust assets
Assets under management$49,003 $53,707 $51,013 
Other data
Average full-time equivalent employees
17,414 17,110 17,003 
Branches
978 993 1,014 
Taxable-equivalent adjustment
$7 $6 $6 


KeyCorp Reports Second Quarter 2022 Profit     
July 21, 2022
Page 13

Financial Highlights (continued)
(Dollars in millions, except per share amounts)
Six months ended
6/30/20226/30/2021
Summary of operations
Net interest income (TE)$2,124 $2,035 
Noninterest income1,364 1,488 
Total revenue (TE)3,488 3,523 
Provision for credit losses128 (315)
Noninterest expense2,148 2,147 
Income (loss) from continuing operations attributable to Key977 1,342 
Income (loss) from discontinued operations, net of taxes4 9 
Net income (loss) attributable to Key981 1,351 
Income (loss) from continuing operations attributable to Key common shareholders924 1,289 
Income (loss) from discontinued operations, net of taxes4 9 
Net income (loss) attributable to Key common shareholders928 1,298 
Per common share
Income (loss) from continuing operations attributable to Key common shareholders$1.00 $1.34 
Income (loss) from discontinued operations, net of taxes— .01 
Net income (loss) attributable to Key common shareholders (a)
1.00 1.35 
Income (loss) from continuing operations attributable to Key common shareholders — assuming dilution.99 1.33 
Income (loss) from discontinued operations, net of taxes — assuming dilution— .01 
Net income (loss) attributable to Key common shareholders — assuming dilution (a)
1.00 1.34 
Cash dividends paid.39 .37 
Performance ratios
From continuing operations:
Return on average total assets1.08 %1.55 %
Return on average common equity13.62 16.33 
Return on average tangible common equity (b)
17.15 19.88 
Net interest margin (TE)2.53 2.56 
Cash efficiency ratio (b)
60.9 60.1 
From consolidated operations:
Return on average total assets1.08 %1.55 %
Return on average common equity13.68 16.45 
Return on average tangible common equity (b)
17.23 20.02 
Net interest margin (TE)2.53 2.57 
Asset quality — from continuing operations
Net loan charge-offs$77 $136 
Net loan charge-offs to average total loans.15 %.27 %
Other data
Average full-time equivalent employees17,262 17,046 
Taxable-equivalent adjustment13 13 
(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)June 30, 2022, ratio is estimated and reflects Key's election to adopt the CECL optional transition provision.


KeyCorp Reports Second Quarter 2022 Profit     
July 21, 2022
Page 14

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," and “cash efficiency ratio."

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 provide 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.

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 endedSix months ended
6/30/20223/31/20226/30/20216/30/20226/30/2021
Tangible common equity to tangible assets at period-end
Key shareholders’ equity (GAAP)$14,427 $15,308 $17,941 
Less: Intangible assets (a)
2,868 2,810 2,828 
Preferred Stock (b)
1,856 1,856 1,856 
Tangible common equity (non-GAAP)$9,703 $10,642 $13,257 
Total assets (GAAP)$187,008 $181,221 $181,115 
Less: Intangible assets (a)
2,868 2,810 2,828 
Tangible assets (non-GAAP)$184,140 $178,411 $178,287 
Tangible common equity to tangible assets ratio (non-GAAP)5.27 %5.96 %7.44 %
Pre-provision net revenue
Net interest income (GAAP)$1,097 $1,014 $1,017 $2,111 $2,022 
Plus: Taxable-equivalent adjustment7 6 6 13 13 
Noninterest income688 676 750 1,364 1,488 
Less: Noninterest expense1,078 1,070 1,076 2,148 2,147 
Pre-provision net revenue from continuing operations (non-GAAP)$714 $626 $697 $1,340 $1,376 
Average tangible common equity
Average Key shareholders' equity (GAAP)$14,398 $16,780 $17,859 $15,583 $17,814 
Less: Intangible assets (average) (c)
2,827 2,814 2,840 2,821 2,840 
Preferred stock (average)1,900 1,900 1,900 1,900 1,900 
Average tangible common equity (non-GAAP)$9,671 $12,066 $13,119 $10,862 $13,074 
Return on average tangible common equity from continuing operations
Net income (loss) from continuing operations attributable to Key common shareholders (GAAP)$504 $420 $698 $924 $1,289 
Average tangible common equity (non-GAAP)9,671 12,066 13,119 10,862 13,074 
Return on average tangible common equity from continuing operations (non-GAAP)20.90 %14.12 %21.34 %17.15 %19.88 %
Return on average tangible common equity consolidated
Net income (loss) attributable to Key common shareholders (GAAP)$507 $421 $703 $928 $1,298 
Average tangible common equity (non-GAAP)9,671 12,066 13,119 10,862 13,074 
Return on average tangible common equity consolidated (non-GAAP)21.03 %14.15 %21.49 %17.23 %20.02 %






KeyCorp Reports Second Quarter 2022 Profit     
July 21, 2022
Page 15

GAAP to Non-GAAP Reconciliations (continued)
(Dollars in millions)
Three months endedSix months ended
6/30/20223/31/20226/30/20216/30/20226/30/2021
Cash efficiency ratio
Noninterest expense (GAAP)$1,078 $1,070 $1,076 $2,148 $2,147 
Less: Intangible asset amortization12 11 14 23 29 
Adjusted noninterest expense (non-GAAP)$1,066 $1,059 $1,062 $2,125 $2,118 
Net interest income (GAAP)$1,097 $1,014 $1,017 $2,111 $2,022 
Plus: Taxable-equivalent adjustment7 6 6 13 13 
Noninterest income688 676 750 1,364 1,488 
Total taxable-equivalent revenue (non-GAAP)$1,792 $1,696 $1,773 $3,488 $3,523 
Cash efficiency ratio (non-GAAP)59.5 %62.4 %59.9 %60.9 %60.1 %
(a)For the three months ended June 30, 2022, March 31, 2022, and June 30, 2021, intangible assets exclude $2 million, $2 million, and $4 million, respectively, of period-end purchased credit card receivables.
(b)Net of capital surplus.
(c)For the three months ended June 30, 2022, March 31, 2022, and June 30, 2021, average intangible assets exclude $2 million, $3 million, and $4 million, respectively, of average purchased credit card receivables. For the six months ended June 30, 2022, and June 30, 2021, average intangible assets exclude $2 million, and $4 million, respectively, of average purchased credit card receivables.
GAAP = U.S. generally accepted accounting principles



KeyCorp Reports Second Quarter 2022 Profit     
July 21, 2022
Page 16

Consolidated Balance Sheets
(Dollars in millions)
6/30/20223/31/20226/30/2021
Assets
Loans$112,390 $106,600 $100,730 
Loans held for sale1,306 1,170 1,537 
Securities available for sale42,437 43,681 34,638 
Held-to-maturity securities8,186 6,871 6,175 
Trading account assets809 848 851 
Short-term investments2,456 3,881 20,460 
Other investments969 722 635 
Total earning assets168,553 163,773 165,026 
Allowance for loan and lease losses(1,099)(1,105)(1,220)
Cash and due from banks678 684 792 
Premises and equipment638 647 785 
Goodwill2,752 2,694 2,673 
Other intangible assets118 118 159 
Corporate-owned life insurance4,343 4,340 4,304 
Accrued income and other assets10,529 9,544 7,966 
Discontinued assets496 526 630 
Total assets$187,008 $181,221 $181,115 
Liabilities
Deposits in domestic offices:
NOW and money market deposit accounts$83,628 $86,829 $85,242 
Savings deposits7,934 7,840 6,993 
Certificates of deposit ($100,000 or more)1,421 1,533 2,064 
Other time deposits1,909 2,037 2,493 
Total interest-bearing deposits94,892 98,239 96,792 
Noninterest-bearing deposits50,973 50,424 49,280 
Total deposits145,865 148,663 146,072 
Federal funds purchased and securities sold under repurchase agreements 3,234 599 211 
Bank notes and other short-term borrowings2,809 2,222 723 
Accrued expense and other liabilities4,056 3,615 2,957 
Long-term debt16,617 10,814 13,211 
Total liabilities172,581 165,913 163,174 
Equity
Preferred stock1,900 1,900 1,900 
Common shares1,257 1,257 1,257 
Capital surplus6,241 6,214 6,232 
Retained earnings15,118 14,793 13,689 
Treasury stock, at cost(5,923)(5,927)(5,287)
Accumulated other comprehensive income (loss)(4,166)(2,929)150 
Key shareholders’ equity14,427 15,308 17,941 
Total liabilities and equity$187,008 $181,221 $181,115 
Common shares outstanding (000)932,643 932,398 960,276 





KeyCorp Reports Second Quarter 2022 Profit     
July 21, 2022
Page 17

Consolidated Statements of Income
(Dollars in millions, except per share amounts)
Three months ended
Six months ended
6/30/20223/31/20226/30/20216/30/20226/30/2021
Interest income
Loans$923 $837 $888 $1,760 $1,777 
Loans held for sale10 12 11 22 22 
Securities available for sale188 173 133 361 263 
Held-to-maturity securities48 46 45 94 90 
Trading account assets7 6 5 13 10 
Short-term investments13 4 6 17 11 
Other investments4 2 2 6 4 
Total interest income1,193 1,080 1,090 2,273 2,177 
Interest expense
Deposits20 14 16 34 37 
Federal funds purchased and securities sold under repurchase agreements6 — — 6 — 
Bank notes and other short-term borrowings9 3 3 12 4 
Long-term debt61 49 54 110 114 
Total interest expense96 66 73 162 155 
Net interest income1,097 1,014 1,017 2,111 2,022 
Provision for credit losses45 83 (222)128 (315)
Net interest income after provision for credit losses1,052 931 1,239 1,983 2,337 
Noninterest income
Trust and investment services income137 136 133 273 266 
Investment banking and debt placement fees149 163 217 312 379 
Service charges on deposit accounts96 91 83 187 156 
Operating lease income and other leasing gains28 32 36 60 74 
Corporate services income88 90 55 178 119 
Cards and payments income85 80 113 165 218 
Corporate-owned life insurance income35 31 30 66 61 
Consumer mortgage income14 21 26 35 73 
Commercial mortgage servicing fees45 36 44 81 78 
Other income11 (4)13 7 64 
Total noninterest income688 676 750 1,364 1,488 
Noninterest expense
Personnel607 630 623 1,237 1,247 
Net occupancy78 73 75 151 151 
Computer processing78 77 71 155 144 
Business services and professional fees52 53 51 105 101 
Equipment26 23 25 49 50 
Operating lease expense27 28 31 55 65 
Marketing34 28 31 62 57 
Other expense176 158 169 334 332 
Total noninterest expense1,078 1,070 1,076 2,148 2,147 
Income (loss) from continuing operations before income taxes662 537 913 1,199 1,678 
Income taxes132 90 189 222 336 
Income (loss) from continuing operations530 447 724 977 1,342 
Income (loss) from discontinued operations, net of taxes3 1 5 4 9 
Net income (loss)533 448 729 981 1,351 
Less: Net income (loss) attributable to noncontrolling interests— — — — — 
Net income (loss) attributable to Key$533 $448 $729 $981 1,351 
Income (loss) from continuing operations attributable to Key common shareholders$504 $420 $698 $924 $1,289 
Net income (loss) attributable to Key common shareholders507 421 703 928 1,298 
Per common share
Income (loss) from continuing operations attributable to Key common shareholders$.54 $.45 $.73 $1.00 $1.34 
Income (loss) from discontinued operations, net of taxes— — — — .01 
Net income (loss) attributable to Key common shareholders (a)
.55 .46 .73 1.00 1.35 
Per common share — assuming dilution
Income (loss) from continuing operations attributable to Key common shareholders$.54 $.45 $.72 $.99 $1.33 
Income (loss) from discontinued operations, net of taxes— — — — .01 
Net income (loss) attributable to Key common shareholders (a)
.54 .45 .73 1.00 1.34 
Cash dividends declared per common share$.195 $.195 $.185 $.390 $.370 
Weighted-average common shares outstanding (000)924,302 922,941 957,423 923,717 961,292 
Effect of common share options and other stock awards7,506 10,692 9,740 9,087 9,514 
Weighted-average common shares and potential common shares outstanding (000) (b)
931,808 933,634 967,163 932,805 970,806 
(a)Earnings per share may not foot due to rounding.
(b)Assumes conversion of common share options and other stock awards, as applicable.


KeyCorp Reports Second Quarter 2022 Profit     
July 21, 2022
Page 18

Consolidated Average Balance Sheets, and Net Interest Income and Yields/Rates From Continuing Operations
(Dollars in millions)
Second Quarter 2022First Quarter 2022Second Quarter 2021
AverageYield/AverageYield/AverageYield/
Balance
Interest (a)
Rate (a)
Balance
Interest (a)
Rate (a)
Balance
Interest (a)
Rate (a)
Assets
Loans: (b), (c)
Commercial and industrial (d)
$53,858 $449 3.34 %$51,574 $410 3.22 %$51,808 $450 3.48 %
Real estate — commercial mortgage15,231 136 3.58 14,587 121 3.37 12,825 117 3.67 
Real estate — construction2,125 20 3.81 2,027 17 3.37 2,149 20 3.68 
Commercial lease financing3,817 24 2.47 3,942 24 2.41 4,060 30 2.98 
Total commercial loans75,031 629 3.36 72,130 572 3.21 70,842 617 3.49 
Real estate — residential mortgage18,383 131 2.85 16,309 112 2.75 11,055 81 2.92 
Home equity loans8,208 78 3.83 8,345 74 3.61 9,089 85 3.76 
Consumer direct loans6,514 68 4.19 5,954 61 4.16 4,910 57 4.69 
Credit cards943 24 10.20 932 24 10.36 908 22 9.79 
Consumer indirect loans59 — — 92 — — 4,010 32 3.19 
Total consumer loans34,107 301 3.53 31,632 271 3.45 29,972 277 3.71 
Total loans109,138 930 3.41 103,762 843 3.28 100,814 894 3.56 
Loans held for sale1,107 10 3.49 1,485 12 3.32 1,616 11 2.60 
Securities available for sale (b), (e)
43,023 188 1.60 44,923 173 1.50 33,623 133 1.57 
Held-to-maturity securities (b)
7,291 48 2.65 7,188 46 2.54 6,452 45 2.75 
Trading account assets854 7 3.45 842 6 2.74 837 5 2.56 
Short-term investments3,591 13 1.45 7,323 4 .25 18,817 6 .13 
Other investments (e)
800 4 2.27 651 2 1.26 622 2 1.02 
Total earning assets165,804 1,200 2.83 166,174 1,086 2.62 162,781 1,096 2.70 
Allowance for loan and lease losses(1,103)(1,056)(1,442)
Accrued income and other assets18,826 17,471 16,531 
Discontinued assets505 539 650 
Total assets$184,032 $183,128 $178,520 
Liabilities
NOW and money market deposit accounts$85,389 $18 .08 $88,515 $11 .05 $83,981 $9 .05 
Savings deposits7,891 — .01 7,599 — .01 6,859 1 .03 
Certificates of deposit ($100,000 or more)1,487 1 .44 1,639 2 .44 2,212 4 .72 
Other time deposits1,972 1 .13 2,098 1 .15 2,630 2 .38 
Total interest-bearing deposits96,739 20 .08 99,851 14 .06 95,682 16 .07 
Federal funds purchased and securities sold under repurchase agreements2,792 6 .88 287 — .13 251 — .02 
Bank notes and other short-term borrowings1,943 9 1.77 705 3 1.94 744 3 1.19 
Long-term debt (f), (g)
12,662 61 1.92 10,830 49 1.79 11,978 54 1.79 
Total interest-bearing liabilities114,136 96 .34 111,673 66 .24 108,655 73 .27 
Noninterest-bearing deposits50,732 50,312 48,640 
Accrued expense and other liabilities4,261 3,824 2,716 
Discontinued liabilities (g)
505 539 650 
Total liabilities$169,634 $166,348 $160,661 
Equity
Key shareholders’ equity$14,398 $16,780 $17,859 
Noncontrolling interests— — — 
Total equity14,398 16,780 17,859 
Total liabilities and equity$184,032 $183,128 $178,520 
Interest rate spread (TE)2.50 %2.38 %2.43 %
Net interest income (TE) and net interest margin (TE)$1,104 2.61 %$1,020 2.46 %$1,023 2.52 %
TE adjustment (b)
766
Net interest income, GAAP basis$1,097 $1,014 $1,017 
(a)Results are from continuing operations. Interest excludes the interest associated with the liabilities referred to in (g) 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 June 30, 2022, March 31, 2022, and June 30, 2021.
(c)For purposes of these computations, nonaccrual loans are included in average loan balances.
(d)Commercial and industrial average balances include $153 million, $141 million, and $132 million of assets from commercial credit cards for the three months ended June 30, 2022, March 31, 2022, and June 30, 2021, respectively.
(e)Yield is calculated on the basis of amortized cost.
(f)Rate calculation excludes basis adjustments related to fair value hedges.
(g)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


KeyCorp Reports Second Quarter 2022 Profit     
July 21, 2022
Page 19

Consolidated Average Balance Sheets, and Net Interest Income and Yields/Rates From Continuing Operations
(Dollars in millions)
Six months ended June 30, 2022Six months ended June 30, 2021
AverageYield/AverageYield/
BalanceInterest (a)Rate (a)BalanceInterest (a)Rate (a)
Assets
Loans: (b), (c)
Commercial and industrial (d)
$52,723 $858 3.28 %$52,194 $902 3.49 %
Real estate — commercial mortgage14,910 2573.48 12,742 2323.67 
Real estate — construction2,076 37 3.60 2,099 39 3.71 
Commercial lease financing3,879 48 2.44 4,101 61 2.99 
Total commercial loans73,588 1,200 3.28 71,136 1,234 3.49 
Real estate — residential mortgage17,352 243 2.80 10,380 154 2.97 
Home equity loans8,276 153 3.72 9,189 173 3.79 
Consumer direct loans6,236 129 4.18 4,864 113 4.70 
Credit cards938 48 10.28 920 46 10.12 
Consumer indirect loans75 — — 4,288 69 3.25 
Total consumer loans32,877 573 3.49 29,641 555 3.77 
Total loans106,465 1,773 3.35 100,777 1,789 3.58 
Loans held for sale1,295 22 3.40 1,574 22 2.74 
Securities available for sale (b), (e)
43,968 361 1.55 31,841 263 1.66 
Held-to-maturity securities (b)
7,239 94 2.59 6,818 90 2.63 
Trading account assets848 13 3.10 842 10 2.35 
Short-term investments5,447 17 .65 17,670 11 .13 
Other investments (e)
726 6 1.82 618 4 1.21 
Total earning assets165,988 2,286 2.72 160,140 2,189 2.75 
Allowance for loan and lease losses(1,080)(1,532)
Accrued income and other assets18,152 16,463 
Discontinued assets522 668 
Total assets$183,582 $175,739 
Liabilities
NOW and money market deposit accounts$86,943 $29 .07 $82,717 $20 .05 
Savings deposits7,746 1 .01 6,533 1 .03 
Certificates of deposit ($100,000 or more)1,562 3 .44 2,390 10 .85 
Other time deposits2,035 1 .14 2,766 6 .48 
Total interest-bearing deposits98,286 34 .07 94,406 37 .08 
Federal funds purchased and securities sold under repurchase agreements1,547 6 .81 247 — .03 
Bank notes and other short-term borrowings1,327 12 1.82 811 4 .89 
Long-term debt (f), (g)
11,751 110 1.86 12,402 114 1.85 
Total interest-bearing liabilities112,911 162 .29 107,866 155 .29 
Noninterest-bearing deposits50,523 46,638 
Accrued expense and other liabilities4,043 2,753 
Discontinued liabilities (g)
522 668 
Total liabilities$167,999 $157,925 
Equity
Key shareholders’ equity$15,583 $17,814 
Noncontrolling interests— — 
Total equity15,583 17,814 
Total liabilities and equity$183,582 $175,739 
Interest rate spread (TE)2.44 %2.46 %
Net interest income (TE) and net interest margin (TE)$2,124 2.53 %$2,035 2.56 %
TE adjustment (b)
1313 
Net interest income, GAAP basis$2,111 $2,022 
(a)Results are from continuing operations. Interest excludes the interest associated with the liabilities referred to in (g) 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 six months ended June 30, 2022, and June 30, 2021, respectively.
(c)For purposes of these computations, nonaccrual loans are included in average loan balances.
(d)Commercial and industrial average balances include $147 million and $129 million of assets from commercial credit cards for the six months ended June 30, 2022, and June 30, 2021, respectively.
(e)Yield is calculated on the basis of amortized cost.
(f)Rate calculation excludes basis adjustments related to fair value hedges.
(g)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


KeyCorp Reports Second Quarter 2022 Profit     
July 21, 2022
Page 20

Noninterest Expense
(Dollars in millions)
Three months endedSix months ended
6/30/20223/31/20226/30/20216/30/20226/30/2021
Personnel (a)
$607 $630 $623 $1,237 $1,247 
Net occupancy78 73 75 151 151 
Computer processing78 77 71 155 144 
Business services and professional fees52 53 51 105 101 
Equipment26 23 25 49 50 
Operating lease expense27 28 31 55 65 
Marketing34 28 31 62 57 
Other expense176 158 169 334 332 
Total noninterest expense$1,078 $1,070 $1,076 $2,148 $2,147 
Average full-time equivalent employees (b)
17,414 17,110 17,003 17,262 17,046 
(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 endedSix months ended
6/30/20223/31/20226/30/20216/30/20226/30/2021
Salaries and contract labor$357 $348 $321 $705 $641 
Incentive and stock-based compensation163 183 210 346 406 
Employee benefits83 97 92 180 199 
Severance4 2 — 6 1 
Total personnel expense$607 $630 $623 $1,237 $1,247 



KeyCorp Reports Second Quarter 2022 Profit     
July 21, 2022
Page 21

Loan Composition
(Dollars in millions)
Change 6/30/2022 vs
6/30/20223/31/20226/30/20213/31/20226/30/2021
Commercial and industrial (a)
$55,245 $52,815 $50,672 4.6 %9.0 %
Commercial real estate:
Commercial mortgage15,636 15,124 12,965 3.4 20.6 
Construction2,144 2,065 2,132 3.8 .6 
Total commercial real estate loans17,780 17,189 15,097 3.4 17.8 
Commercial lease financing (b)
3,956 3,916 4,061 1.0 (2.6)
Total commercial loans76,981 73,920 69,830 4.1 10.2 
Residential — prime loans:
Real estate — residential mortgage19,588 17,181 12,131 14.0 61.5 
Home equity loans8,134 8,258 9,047 (1.5)(10.1)
Total residential — prime loans27,722 25,439 21,178 9.0 30.9 
Consumer direct loans6,665 6,249 5,049 6.7 32.0 
Credit cards967 930 923 4.0 4.8 
Consumer indirect loans55 62 3,750 (11.3)(98.5)
Total consumer loans35,409 32,680 30,900 8.4 14.6 
Total loans (c), (d)
$112,390 $106,600 $100,730 5.4 %11.6 %
(a)Loan balances include $161 million, $147 million, and $135 million of commercial credit card balances at June 30, 2022, March 31, 2022, and June 30, 2021, respectively.
(b)Commercial lease financing includes receivables held as collateral for a secured borrowing of $12 million, $14 million, and $19 million at June 30, 2022, March 31, 2022, and June 30, 2021, respectively. Principal reductions are based on the cash payments received from these related receivables.
(c)Total loans exclude loans of $498 million at June 30, 2022, $531 million at March 31, 2022, and $636 million at June 30, 2021, related to the discontinued operations of the education lending business.
(d)Accrued interest of $233 million, $193 million, and $225 million at June 30, 2022, March 31, 2022, and June 30, 2021, 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 6/30/2022 vs
6/30/20223/31/20226/30/20213/31/20226/30/2021
Commercial and industrial$213 $216 $233 (1.4)%(8.6)%
Real estate — commercial mortgage1,004 819 1,073 22.6 (6.4)
Real estate — construction6 21 — (71.4)%N/M
Real estate — residential mortgage83 114 231 (27.2)(64.1)
Total loans held for sale$1,306 $1,170 $1,537 11.6 %(15.0)%
N/M = Not Meaningful
Summary of Changes in Loans Held for Sale
(Dollars in millions)
2Q221Q224Q213Q212Q21
Balance at beginning of period$1,170 $2,729 $1,805 $1,537 $2,296 
New originations2,837 2,724 5,704 3,328 3,573 
Transfers from (to) held to maturity, net(57)— (1)3,305 (71)
Loan sales(2,506)(4,269)(4,742)(6,405)(4,195)
Loan draws (payments), net(133)(12)(12)8 (27)
Valuation and other adjustments(5)(2)(25)32 (39)
Balance at end of period$1,306 $1,170 $2,729 $1,805 $1,537 
    




KeyCorp Reports Second Quarter 2022 Profit     
July 21, 2022
Page 22

Summary of Loan and Lease Loss Experience From Continuing Operations
(Dollars in millions)
Three months endedSix months ended
6/30/20223/31/20226/30/20216/30/20226/30/2021
Average loans outstanding$109,138 $103,762 $100,814 $106,465 $100,777 
Allowance for loan and lease losses at the beginning of the period1,105 1,061 1,438 1,061 1,626 
Loans charged off:
Commercial and industrial39 30 41 69 114 
Real estate — commercial mortgage3 4 4 7 39 
Real estate — construction— — — — — 
Total commercial real estate loans3 4 4 7 39 
Commercial lease financing— 2 — 2 4 
Total commercial loans42 36 45 78 157 
Real estate — residential mortgage(2)(1)1 (3)1 
Home equity loans— 1 4 1 6 
Consumer direct loans10 7 7 17 15 
Credit cards8 7 9 15 15 
Consumer indirect loans1 1 5 2 12 
Total consumer loans17 15 26 32 49 
Total loans charged off59 51 71 110 206 
Recoveries:
Commercial and industrial8 11 32 19 40 
Real estate — commercial mortgage1 1 6 2 7 
Real estate — construction1 — — 1 — 
Total commercial real estate loans2 1 6 3 7 
Commercial lease financing1 — — 1 1 
Total commercial loans11 12 38 23 48 
Real estate — residential mortgage1 — — 1 1 
Home equity loans1 1 1 2 2 
Consumer direct loans1 2 2 3 4 
Credit cards1 2 3 3 5 
Consumer indirect loans— 1 5 1 10 
Total consumer loans4 6 11 10 22 
Total recoveries15 18 49 33 70 
Net loan charge-offs(44)(33)(22)(77)(136)
Provision (credit) for loan and lease losses38 77 (196)115 (270)
Allowance for loan and lease losses at end of period$1,099 $1,105 $1,220 $1,099 $1,220 
Liability for credit losses on lending-related commitments at beginning of period166 160 178 160 197 
Provision (credit) for losses on lending-related commitments7 6 (26)13 (45)
Liability for credit losses on lending-related commitments at end of period (a)
$173 $166 $152 $173 $152 
Total allowance for credit losses at end of period$1,272 $1,271 $1,372 $1,272 $1,372 
Net loan charge-offs to average total loans.16 %.13 %.09 %.15 %.27 %
Allowance for loan and lease losses to period-end loans.98 1.04 1.21 .98 1.21 
Allowance for credit losses to period-end loans1.13 1.19 1.36 1.13 1.36 
Allowance for loan and lease losses to nonperforming loans256.2 251.7 175.8 256.2 175.8 
Allowance for credit losses to nonperforming loans296.5 289.5 197.7 296.5 197.7 
Discontinued operations — education lending business:
Loans charged off$1 2 $1 $3 $2 
Recoveries1 — — 1 1 
Net loan charge-offs$— $(2)$(1)$(2)$(1)
(a)Included in "Accrued expense and other liabilities" on the balance sheet.


KeyCorp Reports Second Quarter 2022 Profit     
July 21, 2022
Page 23

Asset Quality Statistics From Continuing Operations
(Dollars in millions)
2Q221Q224Q213Q212Q21
Net loan charge-offs$44 $33 $19 $29 $22 
Net loan charge-offs to average total loans.16 %.13 %.08 %.11 %.09 %
Allowance for loan and lease losses$1,099 $1,105 $1,061 $1,084 $1,220 
Allowance for credit losses (a)
1,272 1,271 1,221 1,236 1,372 
Allowance for loan and lease losses to period-end loans.98 %1.04 %1.04 %1.10 %1.21 %
Allowance for credit losses to period-end loans1.13 1.19 1.20 1.25 1.36 
Allowance for loan and lease losses to nonperforming loans256.2 251.7 233.7 195.7 175.8 
Allowance for credit losses to nonperforming loans296.5 289.5 268.9 223.1 197.7 
Nonperforming loans at period end$429 $439 $454 $554 $694 
Nonperforming assets at period end463 467 489 599 738 
Nonperforming loans to period-end portfolio loans.38 %.41 %.45 %.56 %.69 %
Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets
.41 .44 .48 .61 .73 
(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)
6/30/20223/31/202212/31/20219/30/20216/30/2021
Commercial and industrial$197 $186 $191 $253 $355 
Real estate — commercial mortgage35 40 44 49 66 
Real estate — construction— — — — — 
Total commercial real estate loans35 40 44 49 66 
Commercial lease financing2 3 4 5 7 
Total commercial loans234 229 239 307 428 
Real estate — residential mortgage67 73 72 93 99 
Home equity loans120 129 135 146 146 
Consumer direct loans3 4 4 4 4 
Credit cards3 3 3 3 3 
Consumer indirect loans2 1 1 1 14 
Total consumer loans195 210 215 247 266 
Total nonperforming loans429 439 454 554 694 
OREO9 8 8 8 9 
Nonperforming loans held for sale25 20 24 35 32 
Other nonperforming assets— — 3 2 3 
Total nonperforming assets$463 $467 $489 $599 $738 
Accruing loans past due 90 days or more41 55 68 82 74 
Accruing loans past due 30 through 89 days137 122 165 164 190 
Restructured loans — accruing and nonaccruing (a)
216 219 220 270 334 
Restructured loans included in nonperforming loans (a)
94 98 99 146 177 
Nonperforming assets from discontinued operations — education lending business 3 4 4 4 5 
Nonperforming loans to period-end portfolio loans.38 %.41 %.45 %.56 %.69 %
Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets
.41 .44 .48 .61 .73 
(a)Restructured loans (i.e., troubled debt restructuring) are those for which Key, for reasons related to a borrower’s financial difficulties, grants a concession to the borrower that it would not otherwise consider. These concessions are made to improve the collectability of the loan and generally take the form of a reduction of the interest rate, extension of the maturity date or reduction in the principal balance.
Summary of Changes in Nonperforming Loans From Continuing Operations
(Dollars in millions)
2Q221Q224Q213Q212Q21
Balance at beginning of period$439 $454 $554 $694 $728 
Loans placed on nonaccrual status118 87 116 116 186 
Charge-offs(59)(50)(51)(66)(74)
Loans sold(8)— (38)(17)(10)
Payments(35)(27)(68)(136)(92)
Transfers to OREO(2)(1)(1)(1)— 
Loans returned to accrual status(24)(24)(58)(36)(44)
Balance at end of period$429 $439 $454 $554 $694 


KeyCorp Reports Second Quarter 2022 Profit     
July 21, 2022
Page 24

Line of Business Results
(Dollars in millions)
Change 2Q22 vs.
2Q221Q224Q213Q212Q211Q222Q21
Consumer Bank
Summary of operations
Total revenue (TE)$824 $799 $839 $870 $852 3.1 %(3.3)%
Provision for credit losses8 43 14 (38)(70)(81.4)111.4 
Noninterest expense676 663 613 591 584 2.0 15.8 
Net income (loss) attributable to Key107 70 161 241 257 52.9 (58.4)
Average loans and leases40,818 38,637 37,792 39,796 40,598 5.6 .5 
Average deposits91,256 91,468 90,271 89,156 88,412 (.2)3.2 
Net loan charge-offs23 22 22 35 34 4.5 (32.4)
Net loan charge-offs to average total loans.23 %.23 %.23 %.35 %.34 %— (32.4)
Nonperforming assets at period end$203 $217 $222 $254 $274 (6.5)(25.9)
Return on average allocated equity11.66 %7.91 %18.05 %25.81 %28.53 %47.4 (59.1)
Commercial Bank
Summary of operations
Total revenue (TE)$844 $810 $1,028 $886 $871 4.2 %(3.1)%
Provision for credit losses37 41 (12)(69)(131)(9.8)128.2 
Noninterest expense414 417 501 470 451 (.7)(8.2)
Net income (loss) attributable to Key315 283 449 381 432 11.3 (27.1)
Average loans and leases67,834 64,701 61,127 59,914 59,953 4.8 13.1 
Average loans held for sale1,016 1,323 1,962 1,190 1,341 (23.2)(24.2)
Average deposits54,864 57,289 59,537 56,522 54,814 (4.2).1 
Net loan charge-offs21 11 — (6)9 90.9 133.3 
Net loan charge-offs to average total loans.12 %.07 %— %(.04)%.06 %71.4 100.0 
Nonperforming assets at period end$260 $250 $267 $345 $464 4.0 (44.0)
Return on average allocated equity14.16 %13.21 %21.54 %18.54 %20.69 %7.2 (31.6)
TE = Taxable Equivalent
KeyCorp Second Quarter 2022 Earnings Review July 21, 2022 Don Kimble Vice Chairman and Chief Financial Officer Chris Gorman Chairman and Chief Executive Officer

 
Forward-looking Statements and Additional Information This communication contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 including, but not limited to, KeyCorp’s expectations or predictions of future financial or business performance or conditions. Forward-looking statements are typically identified by words such as “believe,” “seek,” “expect,” “anticipate,” “intend,” “target,” “estimate,” “continue,” “positions,” “plan,” “predict,” “project,” “forecast,” “guidance,” “goal,” “objective,” “prospects,” “possible,” “potential,” “strategy,” “opportunities,” or “trends,” by future conditional verbs such as “assume,” “will,” “would,” “should,” “could” or “may”, or by variations of such words or by similar expressions. These forward-looking statements are based on assumptions that involve risks and uncertainties, which are subject to change based on various important factors (some of which are beyond KeyCorp’s control.) Actual results may differ materially from current projections. Actual outcomes may differ materially from those expressed or implied as a result of the factors described under “Forward-looking Statements” and “Risk Factors” in KeyCorp’s Annual Report on Form 10-K for the year ended December 31, 2021, and in other filings of KeyCorp with the Securities and Exchange Commission (the “SEC”). Such forward-looking statements speak only as of the date they are made, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after that date or to reflect the occurrence of unanticipated events. For additional information regarding KeyCorp, please refer to our SEC filings available at www.key.com/ir. Annualized, pro forma, projected and estimated numbers are used for illustrative purpose only, are not forecasts and may not reflect actual results. This presentation also includes certain non-GAAP financial measures related to “tangible common equity,” “cash efficiency ratio,” and “pre-provision net revenue.” Although Key has procedures in place to ensure that these measures are calculated using the appropriate GAAP or regulatory components, they have limitations as analytical tools and should not be considered in isolation, or as a substitute for analysis of results under GAAP. For more information on these calculations and to view the reconciliations to the most comparable GAAP measures, please refer to the appendix of this presentation, or page 42 of our Form 10-Q dated March 31, 2022. GAAP: Generally Accepted Accounting Principles 2

 
2Q22 Results 3 ▪ Revenue up +6% QoQ: driven by growth in net interest income, reflecting strong loan growth and positioning for higher interest rates ▪ Strong loan growth: adding and deepening client relationships across franchise with momentum in both consumer and commercial ▪ Noninterest income: continues to reflect slowdown in capital markets with more client activity moving on balance sheet ▪ Disciplined expense management: expense levels reflect variable cost structure of business as well as investments for future growth ▪ Strong credit quality: net charge-offs to average loans of 16 bps; lower NPL and criticized loans ▪ Committed to serving and supporting our clients through all market conditions ▪ Expanded Laurel Road: extended offering for healthcare professionals, including nurses ▪ Acquired GradFin: leading loan counselor for healthcare professionals ▪ Expanded embedded banking platform: new payments facilitation capabilities ▪ Expanded climate commitments: ✓ Joined PCAF(2) ✓ Investing $38Bn in Sustainable Finance initiatives ✓ Carbon neutral scope 1 & 2 emissions by 2030 Financial Results Strategic Highlights PPNR = Pre-provision net revenue (1) Non-GAAP measure: see appendix for reconciliation; (2) Partnership for Carbon Accounting Financials 14% Increase in PPNR(1) vs. PQ 20.9% Return on average tangible common equity(1) Positive Operating Leverage vs. PY & PQ $.54 Earnings per diluted common share

 
Financial Review

 
EOP = End of Period; (1) Non-GAAP measure: see appendix for reconciliation; (2) 6/30/2022 ratios are estimated and reflect Key's election to adopt the CECL optional transition provision Financial Highlights 5 EPS – assuming dilution $ .54 $ .45 $ .72 20 % (25) % Cash efficiency ratio(1) 59.5 % 62.4 % 59.9 % (290) bps (40) bps Return on average tangible common equity(1) 20.9 14.1 21.3 680 (40) Return on average total assets 1.16 .99 1.63 17 (47) Net interest margin 2.61 2.46 2.52 15 9 Common Equity Tier 1(2) 9.2 % 9.4 % 9.9 % (20) bps (70) bps Tier 1 risk-based capital(2) 10.4 10.7 11.3 (30) (90) Tangible common equity to tangible assets(1) 5.3 6.0 7.4 (70) (210) NCOs to average loans .16 % .13 % .09 % 3 bps 7 bps NPLs to EOP portfolio loans .38 .41 .69 (3) (31) Allowance for credit losses to EOP loans 1.13 1.19 1.36 (6) (23) Profitability Capital Asset Quality 2Q22 1Q22 2Q21 LQ Δ Y/Y Δ Continuing operations, unless otherwise noted

 
Total Average Loans 2Q21 1Q22 2Q22 Consumer loans Highlights Average Loan Detail 6 $7.5 $.7 27% 32% 20.00% 30.00% 40.00% $60 $70 $80 $90 $100 $110 2Q21 3Q21 4Q21 1Q22 2Q22 C&I line utilization Total average loans PPP $ in billions 2Q21 1Q22 2Q22 Commercial loans PPP PPP ▪ Average loans up 8% from 2Q21; up 21%(1) excl. PPP + indirect auto sale − Broad-based commercial growth and an increase in utilization, partially offset by a decline in PPP balances − Strength in consumer mortgage and Laurel Road, partially offset by the sale of Key’s indirect auto portfolio in 3Q21 ▪ Average loans up 5% from 1Q22; up 6%(1) excl. PPP − Broad-based commercial growth with an increase in utilization − Solid quarter for consumer mortgage ($3.2Bn originations) and Laurel Road ($445MM originations) $1.2 ▪ $.7Bn of average PPP loans in 2Q22 ▪ $.5Bn of PPP forgiveness in 2Q22 Loans Commercial Loans Consumer Loans $ in billions $7.5 $101 $109 $71 $72 $75 $.7 $30 $32 $34 (1) Loan variances exclude indirect auto balances of $3.9Bn in 2Q21 and PPP balances of $7.5Bn, $1.2Bn, and $0.7Bn in 2Q21, 1Q22, and 2Q22, respectively vs. Prior Year vs. Prior Quarter

 
(1) Based on period-end balances; (2) Represents period-end consolidated total loans and loans held for sale divided by period-end consolidated total deposits Deposits 7 $ in billions vs. Prior Quarter ▪ Average deposit balances down 2% from 1Q22 − Seasonal commercial outflows − Lower public sector deposits related to stimulus funds .05% .06% .07% .08% $0 $30 $60 $90 $120 $150 2Q21 3Q21 4Q21 1Q22 2Q22 Cost of total interest- bearing deposits Cost of total deposits Consumer Commercial x CDs and other time deposits Savings Noninterest-bearing NOW and MMDA ▪ Average deposits up 2% from 2Q21 − Growth from consumer and commercial relationships − Partially offset by decline in time deposits ▪ Strong and stable deposit base − 35% noninterest-bearing(1) − ~60% stable retail and low-cost escrow − 78% loan to deposit ratio(2) ▪ Cumulative total interest-bearing deposit beta: 3.6% $144 $ in billions 2Q22 Average Deposit Mix Average Deposits Highlights $85.4 $50.7 $3.5$7.9 $147 vs. Prior Year

 
Net Interest Income and Margin $ in millions, continuing operations vs. Prior Quarter TE = Taxable equivalent 2.52% 2.61% 2.0% 2.5% 3.0% 3.5% 4.0% $600 $700 $800 $900 $1,000 $1,100 $1,200 2Q21 3Q21 4Q21 1Q22 2Q22 Net Interest Income (TE) Net Interest Margin (TE)x NIM Change vs. Prior Quarter 1Q22: 2.46% Earning asset yields and balance sheet mix .18 Interest-bearing deposit costs (.02) Paycheck Protection Program (PPP) (.01) Total change .15 2Q22: 2.61% ▪ Net interest income up $81MM (+8%) from 2Q21 − Reflects higher interest rates, higher earning asset balances and favorable balance sheet mix − Partially offset by the exit of the indirect auto loan portfolio (3Q21) and lower PPP loan fees ▪ Net interest income up $84MM (+8%) from 1Q22 − Reflects higher interest rates, higher earning asset balances and favorable balance sheet mix − Benefit from one additional day in the quarter Net Interest Income & Net Interest Margin Trend (TE) Highlights 8 vs. Prior Year $1,023 $1,104

 
Noninterest Income 9 ▪ Noninterest income down $62MM (-8%) from 2Q21 − Lower investment banking and debt placement fees (-$68MM) reflecting slowdown in capital markets activity − Lower cards and payments income (-$28MM) largely driven by lower prepaid card revenue, partially offset by core growth − Lower consumer mortgage income (-$12MM) driven by higher balance sheet retention and lower gain on sale margins − Strength in corporate services (+$33MM) from higher derivatives income vs. Prior Quarter ▪ Noninterest income up $12MM (+2%) from 1Q22 − Higher other income (+15MM) driven by market-related adjustments in the prior quarter − Higher commercial mortgage servicing (+9MM) driven by higher special servicing fees − Lower investment banking and debt placement fees (-$14MM) driven by continued slowdown in capital markets activity vs. Prior Year $ in millions up / (down) 2Q22 vs. 2Q21 vs. 1Q22 Trust and investment services income $ 137 $ 4 $ 1 Investment banking and debt placement fees 149 (68) (14) Service charges on deposit accounts 96 13 5 Operating lease income and other leasing gains 28 (8) (4) Corporate services income 88 33 (2) Cards and payments income 85 (28) 5 Corporate-owned life insurance 35 5 4 Consumer mortgage income 14 (12) (7) Commercial mortgage servicing fees 45 1 9 Other income 11 (2) 15 Total noninterest income $ 688 $ (62) $ 12 Noninterest Income Highlights

 
Noninterest Expense 10 vs. Prior Quarter vs. Prior Year $ in millions favorable / (unfavorable) 2Q22 vs. 2Q21 vs. 1Q22 Personnel $ 607 $ 16 $ 23 Net occupancy 78 (3) (5) Computer processing 78 (7) (1) Business services, professional fees 52 (1) 1 Equipment 26 (1) (3) Operating lease expense 27 4 1 Marketing 34 (3) (6) Other expense 176 (7) (18) Total noninterest expense $ 1,078 $ (2) $ (8) ▪ Noninterest expense relatively stable (+$2MM) from 2Q21 − Higher nonpersonnel expense (+18MM) primarily driven by computer processing expense (+$7MM) and other expense (+$7MM) related to increased travel and entertainment − Lower personnel expense (-$16MM) from a decrease in incentive and stock-based compensation, partially offset by higher salaries ▪ Noninterest expense up $8MM (+1%) from 1Q22 − Higher nonpersonnel expense related to an increase in other expense (+$18MM) from increased travel and entertainment, as well as higher marketing and net occupancy expenses − Lower personnel expense (-$23MM) from lower incentive and stock-based compensation and employee benefits expense, partially offset by higher salaries Noninterest Expense Highlights

 
NCO = Net charge-off NPL = Nonperforming Loans Credit Quality 11 $694 $429 .69% .38% .00% .40% .80% 1.20% 1.60% 2.00% $0 $300 $600 $900 2Q21 3Q21 4Q21 1Q22 2Q22 NPLs NPLs to period-end loans $1,372 $1,272 198% 297% 100% 150% 200% 250% 300% 350% 400% $0 $500 $1,000 $1,500 $2,000 $2,500 2Q21 3Q21 4Q21 1Q22 2Q22 Allowance for credit losses to NPLsAllowance for credit losses 2Q22 allowance for credit losses to period-end loans of 1.13% Nonperforming Loans Allowance for Credit Losses (ACL) $ in millions $ in millions $22 $44 ($222) $45 .09% .16% (1.00)% (.50)% .00% .50% ($250) ($150) ($50) $50 $150 2Q21 3Q21 4Q21 1Q22 2Q22 NCOs Provision for credit losses NCOs to avg. loans Net Charge-offs & Provision for Credit Losses $ in millions

 
(1) 6/30/22 ratio is estimated and reflects Key's election to adopt the CECL optional transition provision; (2) Non-GAAP measure: see Appendix for reconciliation Capital 12 ▪ Strong capital position: CET1 ratio 9.2%(1) at 6/30/2022 − Within targeted range of 9.0% - 9.5% ▪ Declared quarterly common share dividend of $.195 9.9% 9.2% 6.0% 7.0% 8.0% 9.0% 10.0% 11.0% 2Q21 3Q21 4Q21 1Q22 2Q22 7.4% 5.3% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0% 2Q21 3Q21 4Q21 1Q22 2Q22 Tangible Common Equity to Tangible Assets(2) Common Equity Tier 1(1) Highlights Capital Priorities Organic Growth Dividends Share Repurchases 21 3

 
Full Year 2022 Outlook Long-term Targets Positive operating leverage Moderate risk profile: Net charge-offs to avg. loans targeted range of 40-60 bps ROTCE: 16% - 19% Cash efficiency ratio: 54% - 56% Full Year 2022 (vs. Full Year 2021) 13 Average Balance Sheet • Loans: up 4% - 6% • Deposits: up 1% - 3% • Loans: up 9% - 11% • Deposits: up 1% - 3% Net Interest Income (TE) • Net interest income: up 6% - 9% • Net interest income: up 10% - 12% Noninterest Income • Noninterest income: down 4% - 6% • Noninterest income: down 10% - 12% Noninterest Expense • Noninterest expense: down 1% - 3% • Noninterest expense: down 2% - 4% Credit Quality • Net charge-offs to average loans: 15 – 25 bps • Net charge-offs to average loans: 15 – 25 bps Taxes • GAAP tax rate: ~19% • GAAP tax rate: ~19% Prior Guidance (as of 4/21/22) Updated Guidance (as of 7/21/22)

 
Appendix

 
Commercial Loan Portfolio Detail vs. Prior Year ▪ Target specific client segments focused in seven industry verticals ▪ Experienced bankers with deep industry expertise ▪ Focused on high quality clients ▪ Credit quality metrics remain strong and stable − Disciplined, consistent underwriting − Active surveillance with ongoing portfolio reviews − Dynamic assessment of ratings migration ~80% commercial bank credit exposure from relationship(1) clients Targeted Industry Verticals Consumer Energy Industrial TechnologyHealthcare (1) Relationship client is defined as having two or more of the following: credit, capital markets, or payments ▪ Solid middle market portfolio ▪ Aligning bankers to areas of market opportunity and growth - investing in strategic hires with industry vertical expertise ▪ High-quality borrowers ▪ Small, stable leveraged portfolio: ~2% of total loans ▪ Strengthened credit risk profile with strategic exits and growth in targeted client segments to focus on relationships ▪ Significantly scaled back construction portfolio from pre-global financial crisis (42% in 2008  14% in 2021) ▪ Focused on relationships with owners and operators ▪ Strategic focus in CDLI and multifamily Real Estate Public Sector Total Commercial Loans Commercial & Industrial (C&I) Commercial Real Estate (CRE) 15 $ in billions 6/30/22 % of total loans Commercial and industrial $ 55.2 49% Commercial real estate 17.8 16 Commercial lease financing 4.0 4 Total Commercial $ 77.0 69%

 
Consumer Loan Portfolio Detail Portfolio Highlights ▪ Prime & super prime client base focused on relationships ▪ Continued consumer originations bring more balance to portfolio ▪ Continuing to invest in digital to drive future growth 772 weighted average FICO at origination $399 $504 $646 $820 $445 2Q21 3Q21 4Q21 1Q22 2Q22 Origination Volume$ in millions $ in billions $3.7 $3.7 $3.4 $2.6 $3.2 2Q21 3Q21 4Q21 1Q22 2Q22 Origination Volume Note: Table may not foot due to rounding (1) Indirect auto portfolio was sold on 9/10/21 ▪ High-quality client base: primarily healthcare professionals ▪ Expands Key’s digital reach and consumer franchise nationally through targeted scale (doctor/dentist clients in all 50 states) ▪ Launched Laurel Road for Doctors in 1Q21 and expanded platform to nurses in 2Q22 ▪ Production levels continue to be impacted by the federal student loan payment holiday ▪ Focused on prime/super-prime clients (weighted average FICO at origination: 762) ▪ Investing in digital capabilities to enhance client experience and improve efficiency ▪ Continued momentum with loan originations of $3.2Bn in 2Q22 and $13.8Bn in FY21 Total Consumer Loans Laurel Road Consumer Mortgage 16 $ in billions 6/30/22 % of total loans WA FICO at origination Consumer mortgage $ 19.6 17% 762 Home equity 8.1 7 809 Consumer direct 6.7 6 774 Credit card 1.0 1 791 Consumer indirect(1) 0.6 N/A N/A Total Consumer $ 35.4 31% 772

 
$3.4 $6.3 $15.0 $0.0 $5.0 $10.0 $15.0 $20.0 2022 2023 2024 17 $ in billions 1.77% 1.75% 1.00% 1.50% 2.00% 2.50% 3.00% $0.0 $20.0 $40.0 $60.0 2Q21 3Q21 4Q21 1Q22 2Q22 Average AFS securities Average yield(1)Average HTM securities Projected Cash Flows & Maturities (under implied forward rates) Floating Rate (including hedges) ▪ Portfolio used for funding and liquidity management ‒ Portfolio composed primarily of fixed-rate GNMA and GSE-backed MBS and CMOs ‒ Portfolio yield excluding short-term Treasury/Agency: 2.0% ▪ Average balances reflects redeployment of cash into higher yielding securities ▪ ~50% ($1.7Bn) of 2Q22 reinvestment designated as held-to-maturity ▪ New investment opportunities at higher yields than runoff ‒ Current purchases ~4.0% compared to ~2.0% runoff ▪ Portfolio constructed to enhance current returns on excess liquidity, while preserving the opportunity to capitalize on higher interest rates in the future ‒ Recent Agency MBS/CMO investments constructed to limit extension risk and provide continued cash flows as rates rise (~$1.7Bn per quarter in the near-term) ‒ Short-term Treasury/Agency portfolio consists of a laddered maturity profile with runoff beginning in 2023 ▪ $5.9Bn securities hedges terminated in 1Q22 & 2Q22 to lock in gains, $.4Bn of hedges remained to end the quarter ‒ +$426MM gain on terminated hedges to benefit securities yields over the remaining life of the mortgage securities ▪ Available for sale portfolio duration of 5.8 years at 6/30/2022 (duration including securities hedges) Average Total Investment Securities $ in billions Existing Portfolio Repricing Characteristics Highlights (1) Yield is calculated on the basis of amortized cost; (2) 2022 cash flows represent 3Q22-4Q22 and do not include 2Q22 results $50.3 $40.1 Investment Portfolio (2)

 
Balanced approach to managing interest rate risk provides declining rate protection while maintaining upside to higher rates (1) Loan and deposit statistics based on 6/30/2022 ending balances Loan Composition Deposit Mix Prime 9% 1M LIBOR 25% 3M LIBOR 5% Other 11% SOFR 18% Fixed 32% Interest-bearing 66% Noninterest- bearing 34% 2 Q 2 2 A/LM Swaps Debt Swaps $ 23.1Bn $ 8.9Bn $ 4.6Bn A/LM Fwd Swaps ▪ Given macroeconomic and geopolitical uncertainty, the position exhibits a more neutral exposure to rate changes − Lower rates exposure evolving as overall market and deposit rates move higher − Mindful towards increased levels of current and expected volatility ▪ Opportunistically reinvesting to monetize higher term rates ‒ Modest modeled year one net interest income benefit to a ramped 200 bps rise in rates with conservative low 30’s deposit beta assumption ‒ Incremental ~1.1% NII benefit for each 5% reduction in beta ‒ ~$10Bn in short-term treasuries ▪ Total hedge portfolio of $36.6Bn at 6/30/2022 ▪ Attractive business model with relationship-oriented lending franchise − Distinctive commercial capabilities drive C&I growth and ~70% floating-rate loan mix (incl. PPP) − Laurel Road and consumer mortgage enhance fixed rate loan volumes with attractive client profile ▪ Strong, low-cost deposit base − ~60% stable retail and low-cost escrow − >85% from markets where Key maintains top-5 deposit or branch share ▪ $50Bn investment portfolio structured to provide greater yield stability in a lower rate environment − Higher allocation of bullet-like securities and mortgage collateral with lower prepayment risks and limited exposure to unamortized premiums ▪ Continually evaluating opportunities to protect and enhance NII through new hedging and/or modifying existing positions 2Q22 Balance Sheet Highlights(1) Actively Managing Interest Rate Risk Position 18 Asset & Liability Management Positioning

 
Credit Quality Trends (1) Loan and lease outstandings; (2) From continuing operations 19 Delinquencies to Period-end Total Loans Criticized Outstandings(1) to Period-end Total Loans Continuing Operations Continuing Operations .19% .12% .07% .04% .00% .10% .20% .30% .40% .50% 2Q21 3Q21 4Q21 1Q22 2Q22 4.0% 2.3% .0% 2.0% 4.0% 6.0% 2Q21 3Q21 4Q21 1Q22 2Q22 30 – 89 days delinquent 90+ days delinquent Metric(2) 2Q22 1Q22 4Q21 3Q21 2Q21 Delinquencies to EOP total loans: 30-89 days .12 % .11 % .16 % .17 % .19 % Delinquencies to EOP total loans: 90+ days .04 .05 .07 .08 .07 NPLs to EOP portfolio loans .38 .41 .45 .56 .69 NPAs to EOP portfolio loans + OREO + Other NPAs .41 .44 .48 .61 .73 Allowance for credit losses to period-end loans 1.13 1.19 1.20 1.25 1.36 Allowance for credit losses to NPLs 296.5 289.5 268.9 223.1 197.7

 
Credit Quality by Portfolio 20 Period-end loans Average loans Net loan charge-offs Net loan charge- offs(3) / average loans (%) Nonperforming loans Ending allowance Allowance / period-end loans (%) Allowance / NPLs (%) 6/30/22 2Q22 2Q22 2Q22 6/30/22 6/30/22 6/30/22 6/30/22 Commercial and industrial(1) $ 55,245 $ 53,858 $ 31 .23% $ 197 $ 503 .91% 255.33% Commercial real estate: Commercial Mortgage 15,636 15,231 2 .05 35 156 1.00 445.71 Construction 2,144 2,125 (1) (.19) - 21 .98 N/M Commercial lease financing(2) 3,956 3,817 (1) (.11) 2 29 .73 N/M Real estate – residential mortgage 19,588 18,383 (3) (.07) 67 122 .62 182.09 Home equity 8,134 8,208 (1) (.05) 120 95 1.17 79.17 Consumer direct loans 6,665 6,514 9 .55 3 112 1.68 N/M Credit cards 967 943 7 2.98 3 59 6.10 N/M Consumer indirect loans 55 59 1 6.80 2 2 3.64 100.00 Continuing total $ 112,390 $ 109,138 $ 44 .16% $ 429 $ 1,099 .98% 256.18% Discontinued operations 498 510 - - 3 24 4.82 800.00 Consolidated total $ 112,888 $ 109,648 $ 44 .16% $ 432 $ 1,123 .99% 259.95% $ in millions (1) Loan balance include $161 million of commercial credit card balances at June 30, 2022; (2) Commercial lease financing includes receivables held as collateral for a secured borrowing of $12 million at June 30, 2022. Principal reductions are based on the cash payments received from these related receivables; (3) Net loan charge-off amounts are annualized in calculation Credit Quality

 
21 $ in millions (1) For the three months ended June 30, 2022, March 31, 2022, and June 30, 2021, intangible assets exclude $2 million, $2 million, and $4 million, respectively, of period-end purchased credit card receivables; (2) Net of capital surplus; (3) For the three months ended June 30, 2022, March 31, 2022, and June 30, 2021, average intangible assets exclude $2 million, $3 million, and $4 million, respectively, of average purchased credit card receivables GAAP to Non-GAAP Reconciliation 6/30/2022 3/31/2022 6/30/2021 6/30/2022 6/30/2021 Tangible common equity to tangible assets at period end Key shareholders' equity (GAAP) 14,427$ 15,308$ 17,941$ Less: Intangible assets (1) 2,868 2,810 2,828 Preferred Stock (2) 1,856 1,856 1,856 Tangible common equity (non-GAAP) 9,703$ 10,642$ 13,257$ Total assets (GAAP) 187,008$ 181,221$ 181,115$ Less: Intangible assets (1) 2,868 2,810 2,828 Tangible assets (non-GAAP) 184,140$ 178,411$ 178,287$ Tangible common equity to tangible assets ratio (non-GAAP) 5.27% 5.96% 7.44% Pre-provision net revenue Net interest income (GAAP) 1,097$ 1,014$ 1,017$ 2,111$ 2,022$ Plus: Taxable-equivalent adjustment 7 6 6 13 13 Noninterest income 688 676 750 1,364 1,488 Less: Noninterest expense 1,078 1,070 1,076 2,148 2,147 Pre-provision net revenue from continuing operations (non-GAAP) 714$ 626$ 697$ 1,340$ 1,376$ Average tangible common equity Average Key shareholders' equity (GAAP) 14,398$ 16,780$ 17,859$ 15,583$ 17,814$ Less: Intangible assets (average) (3) 2,827 2,814 2,840 2,821 2,840 Preferred Stock (average) 1,900 1,900 1,900 1,900 1,900 Average tangible common equity (non-GAAP) 9,671$ 12,066$ 13,119$ 10,862$ 13,074$ Six Months EndedThree months ended

 
22 GAAP to Non-GAAP Reconciliation $ in millions 6/30/2022 3/31/2022 6/30/2021 6/30/2022 6/30/2021 Return on average tangible common equity from continuing operations Net income (loss) from continuing operations attributable to Key common shareholders (GAAP) 504$ 420$ 698$ 924$ 1,289$ Average tangible common equity (non-GAAP) 9,671 12,066 13,119 10,862 13,074 Return on average tangible common equity from continuing operations (non-GAAP) 20.90% 14.12% 21.34% 17.15% 19.88% Return on average tangible common equity consolidated Net income (loss) attributable to Key common shareholders (GAAP) 507$ 421$ 703$ 928$ 1,298$ Average tangible common equity (non-GAAP) 9,671 12,066 13,119 10,862 13,074 Return on average tangible common equity consolidation (non-GAAP) 21.03% 14.15% 21.49% 17.23% 20.02% Cash efficiency ratio Noninterest expense (GAAP) 1,078$ 1,070$ 1,076$ 2,148$ 2,147$ Less: Intangible asset amortization 12 11 14 23 29 Adjusted noninterest expense (non-GAAP) 1,066$ 1,059$ 1,062$ 2,125$ 2,118$ Net interest income (GAAP) 1,097$ 1,014$ 1,017$ 2,111$ 2,022$ Plus: Taxable-equivalent adjustment 7 6 6 13 13 Noninterest income 688 676 750 1,364 1,488 Total taxable-equivalent revenue (non-GAAP) 1,792$ 1,696$ 1,773$ 3,488$ 3,523$ Cash eff iciency ratio (non-GAAP) 59.5% 62.4% 59.9% 60.9% 60.1% Three months ended Six Months Ended

 
Exhibit 99.3
Consolidated Balance Sheets
(dollars in millions)
6/30/20223/31/20226/30/2021
Assets
Loans$112,390 $106,600 $100,730 
Loans held for sale 1,306 1,170 1,537 
Securities available for sale42,437 43,681 34,638 
Held-to-maturity securities8,186 6,871 6,175 
Trading account assets809 848 851 
Short-term investments2,456 3,881 20,460 
Other investments969 722 635 
Total earning assets168,553 163,773 165,026 
Allowance for loan and lease losses(1,099)(1,105)(1,220)
Cash and due from banks678 684 792 
Premises and equipment638 647 785 
Goodwill2,752 2,694 2,673 
Other intangible assets118 118 159 
Corporate-owned life insurance4,343 4,340 4,304 
Accrued income and other assets10,529 9,544 7,966 
Discontinued assets496 526 630 
Total assets$187,008 $181,221 $181,115 
Liabilities
Deposits in domestic offices:
NOW and money market deposit accounts$83,628 $86,829 $85,242 
Savings deposits7,934 7,840 6,993 
Certificates of deposit ($100,000 or more)1,421 1,533 2,064 
Other time deposits1,909 2,037 2,493 
Total interest-bearing deposits94,892 98,239 96,792 
Noninterest-bearing deposits50,973 50,424 49,280 
Total deposits145,865 148,663 146,072 
Federal funds purchased and securities sold under repurchase agreements 3,234 599 211 
Bank notes and other short-term borrowings2,809 2,222 723 
Accrued expense and other liabilities4,056 3,615 2,957 
Long-term debt16,617 10,814 13,211 
Total liabilities172,581 165,913 163,174 
Equity
Preferred stock1,900 1,900 1,900 
Common shares1,257 1,257 1,257 
Capital surplus6,241 6,214 6,232 
Retained earnings15,118 14,793 13,689 
Treasury stock, at cost(5,923)(5,927)(5,287)
Accumulated other comprehensive income (loss)(4,166)(2,929)150 
Key shareholders’ equity14,427 15,308 17,941 
Noncontrolling interests— — — 
Total equity14,427 15,308 17,941 
Total liabilities and equity$187,008 $181,221 $181,115 
Common shares outstanding (000)932,643 932,398 960,276 



Consolidated Statements of Income
(dollars in millions, except per share amounts)
Three months endedSix months ended
6/30/20223/31/20226/30/20216/30/20226/30/2021
Interest income
Loans$923 $837 $888 $1,760 $1,777 
Loans held for sale10 12 11 22 22 
Securities available for sale188 173 133 361 263 
Held-to-maturity securities48 46 45 94 90 
Trading account assets7 6 5 13 10 
Short-term investments13 4 6 17 11 
Other investments4 2 2 6 4 
Total interest income1,193 1,080 1,090 2,273 2,177 
Interest expense
Deposits20 14 16 34 37 
Federal funds purchased and securities sold under repurchase agreements6 — — 6 — 
Bank notes and other short-term borrowings9 3 3 12 4 
Long-term debt61 49 54 110 114 
Total interest expense96 66 73 162 155 
Net interest income1,097 1,014 1,017 2,111 2,022 
Provision for credit losses45 83 (222)128 (315)
Net interest income after provision for credit losses1,052 931 1,239 1,983 2,337 
Noninterest income
Trust and investment services income137 136 133 273 266 
Investment banking and debt placement fees149 163 217 312 379 
Service charges on deposit accounts96 91 83 187 156 
Operating lease income and other leasing gains28 32 36 60 74 
Corporate services income88 90 55 178 119 
Cards and payments income85 80 113 165 218 
Corporate-owned life insurance income35 31 30 66 61 
Consumer mortgage income14 21 26 35 73 
Commercial mortgage servicing fees45 36 44 81 78 
Other income11 (4)13 7 64 
Total noninterest income688 676 750 1,364 1,488 
Noninterest expense
Personnel607 630 623 1,237 1,247 
Net occupancy78 73 75 151 151 
Computer processing78 77 71 155 144 
Business services and professional fees52 53 51 105 101 
Equipment26 23 25 49 50 
Operating lease expense27 28 31 55 65 
Marketing34 28 31 62 57 
Intangible asset amortization— — — — — 
Other expense176 158 169 334 332 
Total noninterest expense1,078 1,070 1,076 2,148 2,147 
Income (loss) from continuing operations before income taxes662 537 913 1,199 1,678 
Income taxes132 90 189 222 336 
Income (loss) from continuing operations530 447 724 977 1,342 
Income (loss) from discontinued operations, net of taxes3 1 5 4 9 
Net income (loss)533 448 729 981 1,351 
Less: Net income (loss) attributable to noncontrolling interests— — — — — 
Net income (loss) attributable to Key$533 $448 $729 $981 $1,351 
Income (loss) from continuing operations attributable to Key common shareholders$504 $420 $698 $924 $1,289 
Net income (loss) attributable to Key common shareholders507 421 703 928 1,298 
Per common share
Income (loss) from continuing operations attributable to Key common shareholders$.54 $.45 $.73 $1 $1.34 
Income (loss) from discontinued operations, net of taxes— — — — .01 
Net income (loss) attributable to Key common shareholders (a)
.55 .46 .73 1 1.35 
Per common share — assuming dilution
Income (loss) from continuing operations attributable to Key common shareholders$.54 $.45 $.72 $.99 $1.33 
Income (loss) from discontinued operations, net of taxes— — — — .01 
Net income (loss) attributable to Key common shareholders (a)
.54 .45 $.73 1.00 1.34 
Cash dividends declared per common share$.195 $.195 $.185 $.39 $.37 
Weighted-average common shares outstanding (000)924,302 922,941 957,423 923,717 961,292 
Effect of common share options and other stock awards7,506 10,692 9,740 9,087 9,514 
Weighted-average common shares and potential common shares outstanding (000) (b)
931,808 933,634 967,163 932,805 970,806 
(a)Earnings per share may not foot due to rounding.
(b)Assumes conversion of common share options and other stock awards and/or convertible preferred stock, as applicable.