EX-99.12a3q24earningsrelease.htmEX-99.1 Document
KEYCORP REPORTS THIRD QUARTER 2024 NET LOSS OF $(447) MILLION,
OR $(.47) PER DILUTED COMMON SHARE, AND ADJUSTED NET INCOME OF $290 MILLION, OR $.30 PER DILUTED COMMON SHARE(a)
Received initial $821 million tranche of strategic minority investment from Scotiabank; Common Equity Tier 1 ratio of 10.8% and Tangible Common Equity ratio of 6.2%(b)
Net interest income up 7% quarter-over-quarter, with average deposits up 2.5%; Client deposits were up 4% year-over-year
Continued strong fee momentum across investment banking, commercial mortgage servicing, commercial payments, and wealth management
Nonperforming assets and provision for credit losses were stable to improved quarter-over-quarter
CLEVELAND, October 17, 2024 - KeyCorp (NYSE: KEY) today announced net loss from continuing operations attributable to Key common shareholders of $(447) million, or $(.47) per diluted common share, or adjusted net income of $290 million or $.30 per diluted common share(a), for the third quarter of 2024. Included in the third quarter of 2024 are $(737) million, or $(.77) per diluted common share, after-tax, of charges related to the loss on the sale of securities(c). Net income from continuing operations attributable to Key common shareholders was $237 million, or $.25 per diluted common share, for the second quarter of 2024 and $266 million, or $.29 per diluted common share, for the third quarter of 2023.
Comments from Chairman and CEO, Chris Gorman
"Key performed well in the third quarter. EPS was impacted by a previously communicated securities portfolio repositioning that will enhance future earnings, capital, and liquidity starting in the fourth quarter. Underlying results were solid as relationship clients, deposits, and business-related fees all demonstrated
continued momentum. As anticipated, we saw a meaningful increase in net interest income, up 7% quarter-over-quarter, as substantial portions of low-yielding securities and swaps matured. Concurrently, both our credit risk profile and expenses remained stable.
We continue to make progress regarding our $2.8 billion capital raise from Scotiabank, completing the initial $821 million investment tranche this quarter. As a result of this initial investment and the meaningful decline in interest rates in the third quarter, our tangible common equity ratio improved by 100 basis points quarter-over-quarter, and our reported CET1 ratio further strengthened to 10.8%. We continue to expect to complete the final tranche of the equity financing in the first quarter of 2025, subject to Fed approval.
Our fee-based pipelines continue to build. Investment banking and debt placement pipelines remain near record levels. Wealth management and commercial payments continue to demonstrate momentum.
Given the combination of our strong pipelines, further expected net interest income tailwinds in the quarters ahead, and a stable-to-improved credit outlook, I remain optimistic with respect to the trajectory of our business and our ability to drive value for all of our stakeholders."
(a) The table entitled “GAAP to Non-GAAP Reconciliations” in the attached financial supplement presents the computations of certain financial measures related to “adjusted earnings per share" and "adjusted net income.” The table reconciles the GAAP performance measures to the corresponding non-GAAP measures, which provides a basis for period-to-period comparisons.
(b) September 30, 2024 ratio is estimated and reflects Key's election to adopt the CECL optional transition provision.
(c) See table on page 25 for more information on Selected Items Impact on Earnings.
KeyCorp Reports Third Quarter 2024 Results
October 17, 2024
Page 2
Selected Financial Highlights
Dollars in millions, except per share data
Change 3Q24 vs.
3Q24
2Q24
3Q23
2Q24
3Q23
Income (loss) from continuing operations attributable to Key common shareholders
$
(447)
$
237
$
266
(288.6)
%
(268.0)
%
Income (loss) from continuing operations attributable to Key common shareholders per common share — assuming dilution
(.47)
.25
.29
(288.0)
(262.1)
Return on average tangible common equity from continuing operations (a)
(16.98)
%
10.39
%
12.40
%
N/A
N/A
Return on average total assets from continuing operations
(.87)
.59
.62
N/A
N/A
Common Equity Tier 1 ratio (b)
10.8
10.5
9.8
N/A
N/A
Book value at period end
$
14.53
$
13.09
$
11.65
11.0
24.7
Net interest margin (TE) from continuing operations
2.17
%
2.04
%
2.01
%
N/A
N/A
(a)The table entitled “GAAP to Non-GAAP Reconciliations” in the attached financial supplement presents the computations of certain financial measures related to “tangible common equity.” The table reconciles the GAAP performance measures to the corresponding non-GAAP measures, which provides a basis for period-to-period comparisons.
(b)September 30, 2024 ratio is estimated.
TE = Taxable Equivalent, N/A = Not Applicable
INCOME STATEMENT HIGHLIGHTS
Revenue
Dollars in millions
Change 3Q24 vs.
3Q24
2Q24
3Q23
2Q24
3Q23
Net interest income (TE)
$
964
$
899
$
923
7.2
%
4.4
%
Noninterest income
(269)
627
643
(142.9)
(141.8)
Total revenue (TE)
$
695
$
1,526
$
1,566
(54.5)
%
(55.6)
%
TE = Taxable Equivalent
Taxable-equivalent net interest income was $964 million for the third quarter of 2024 and the net interest margin was 2.17%. Compared to the third quarter of 2023, net interest income increased by $41 million, and the net interest margin increased by 16 basis points. Both net interest income and the net interest margin benefited from the reinvestment of proceeds from maturing investment securities into higher yielding investments, the maturity of lower-yielding interest rate swaps with negative carry, and a shift in funding mix from higher-cost wholesale borrowings to lower-cost interest-bearing deposits. In addition, during the third quarter of 2024, Key began the repositioning of the available-for-sale portfolio, which involved the sale of approximately $7.0 billion of lower-yielding mortgaged-backed securities and reinvestment of the proceeds into higher-yielding investments. These benefits were partially offset by a decline in loan balances and higher deposit costs relative to a year ago.
Compared to the second quarter of 2024, taxable-equivalent net interest income increased by $65 million, and the net interest margin increased by 13 basis points. Both net interest income and the net interest margin benefited from the reinvestment of proceeds from maturing investment securities into higher yielding investments, continued amortization of low-yielding interest rate swaps that had been terminated in 2023, the repositioning of the available-for-sale portfolio, and an improved funding mix. Lower loan balances and higher interest-bearing deposit costs somewhat offset the increase.
KeyCorp Reports Third Quarter 2024 Results
October 17, 2024
Page 3
Noninterest Income
Dollars in millions
Change 3Q24 vs.
3Q24
2Q24
3Q23
2Q24
3Q23
Trust and investment services income
$
140
$
139
$
130
.7
%
7.7
%
Investment banking and debt placement fees
171
126
141
35.7
21.3
Cards and payments income
84
85
90
(1.2)
(6.7)
Service charges on deposit accounts
67
66
69
1.5
(2.9)
Corporate services income
69
68
73
1.5
(5.5)
Commercial mortgage servicing fees
73
61
46
19.7
58.7
Corporate-owned life insurance income
36
34
35
5.9
2.9
Consumer mortgage income
12
16
15
(25.0)
(20.0)
Operating lease income and other leasing gains
16
21
22
(23.8)
(27.3)
Other income
(937)
11
22
N/M
N/M
Total noninterest income
$
(269)
$
627
$
643
(142.9)
%
(141.8)
%
N/M = Not Meaningful
Compared to the third quarter of 2023, noninterest income decreased by $912 million. The decrease was driven primarily by a $918 million loss on the sale of securities as part of a strategic repositioning of the portfolio in the third quarter of 2024. See the Selected Items Impact on Earnings table on page 25 for more information. The decline was partly offset by a $30 million increase in investment banking and debt placement fees, reflective of stronger syndication, debt, and equity underwriting fees, as well as a $27 million increase in commercial mortgage servicing fees reflecting higher active special servicing balances and overall growth of the servicing portfolio.
Compared to the second quarter of 2024, noninterest income decreased by $896 million. The decrease was driven primarily by the loss on the sale of securities referenced above. The decline was partly offset by a $45 million increase in investment banking and debt placement fees, reflective of stronger syndication and equity underwriting fees, as well as a $12 million increase in commercial mortgage servicing fees.
Noninterest Expense
Dollars in millions
Change 3Q24 vs.
3Q24
2Q24
3Q23
2Q24
3Q23
Personnel expense
$
670
$
636
$
663
5.3
%
1.1
%
Net occupancy
66
66
67
—
(1.5)
Computer processing
104
101
89
3.0
16.9
Business services and professional fees
41
37
38
10.8
7.9
Equipment
20
20
20
—
—
Operating lease expense
14
17
18
(17.6)
(22.2)
Marketing
21
21
28
—
(25.0)
Other expense
158
181
187
(12.7)
(15.5)
Total noninterest expense
$
1,094
$
1,079
$
1,110
1.4
%
(1.4)
%
Compared to the third quarter of 2023, noninterest expense decreased $16 million. The decline in noninterest expense was driven by a $7 million decrease in marketing expense, and a reduction in the estimated FDIC special assessment in the third quarter of 2024. See the Selected Items Impact on Earnings table on page 25 for more information. Partly offsetting the decline was an increase in computer processing expense of $15 million, due to technology investments, and a $7 million increase in personnel expense due to an increase in incentive and stock-based compensation related to strong capital markets activity and a higher stock price compared to the year-ago period.
Compared to the second quarter of 2024, noninterest expense increased by $15 million. The increase was driven by a $34 million increase in personnel expense, primarily from incentive and stock-based
compensation, reflecting stronger capital markets activity. The increase was partly offset by a decline in other expense of $23 million, related to a reduction of the estimated FDIC special assessment charge recognized in
KeyCorp Reports Third Quarter 2024 Results
October 17, 2024
Page 4
the third quarter of 2024 when compared to the second quarter of 2024. See the Selected Items Impact on Earnings table on page 25 for more information.
BALANCE SHEET HIGHLIGHTS
Average Loans
Dollars in millions
Change 3Q24 vs.
3Q24
2Q24
3Q23
2Q24
3Q23
Commercial and industrial (a)
$
53,121
$
54,599
$
59,187
(2.7)
%
(10.2)
%
Other commercial loans
19,929
20,500
22,371
(2.8)
(10.9)
Total consumer loans
33,194
33,862
36,069
(2.0)
(8.0)
Total loans
$
106,244
$
108,961
$
117,627
(2.5)
%
(9.7)
%
(a)Commercial and industrial average loan balances include $215 million, $218 million, and $202 million of assets from commercial credit cards at September 30, 2024, June 30, 2024, and September 30, 2023, respectively.
Average loans were $106.2 billion for the third quarter of 2024, a decrease of $11.4 billion compared to the third quarter of 2023, reflective of Key's planned balance sheet optimization efforts in 2023, and continued tepid client loan demand. The decline in average loans was mostly driven by a $8.5 billion decline in average commercial loans, due to lower commercial and industrial loans and commercial mortgage real estate loans. Additionally, average consumer loans declined by $2.9 billion, reflective of broad-based declines across all consumer loan categories.
Compared to the second quarter of 2024, average loans decreased by $2.7 billion. Average commercial loans declined by $2.0 billion, primarily driven by a decrease in commercial and industrial loans and commercial mortgage real estate loans. Average consumer loans declined $668 million, driven by broad-based declines across all consumer loan categories.
Average Deposits
Dollars in millions
Change 3Q24 vs.
3Q24
2Q24
3Q23
2Q24
3Q23
Non-time deposits
$
129,901
$
128,161
$
129,743
1.4
%
0.1
%
Time deposits
17,870
16,019
15,082
11.6
18.5
Total deposits
$
147,771
$
144,180
$
144,825
2.5
%
2.0
%
Cost of total deposits
2.39
%
2.28
%
1.88
%
N/A
N/A
N/A = Not Applicable
Average deposits totaled $147.8 billion for the third quarter of 2024, an increase of $2.9 billion compared to the year-ago quarter, reflecting growth in both consumer and commercial deposits.
Compared to the second quarter of 2024, average deposits increased by $3.6 billion, driven by an increase in both consumer and commercial deposit balances.
KeyCorp Reports Third Quarter 2024 Results
October 17, 2024
Page 5
ASSET QUALITY
Dollars in millions
Change 3Q24 vs.
3Q24
2Q24
3Q23
2Q24
3Q23
Net loan charge-offs
$
154
$
91
$
71
69.2
%
116.9
%
Net loan charge-offs to average total loans
.58
%
.34
%
.24
%
N/A
N/A
Nonperforming loans at period end
$
728
$
710
$
455
2.5
60.0
Nonperforming assets at period end
741
727
471
1.9
57.3
Allowance for loan and lease losses
1,494
1,547
1,488
(3.4)
0.4
Allowance for credit losses
1,774
1,833
1,778
(3.2)
(0.2)
Provision for credit losses
95
100
81
(5.0)
17.3
Allowance for loan and lease losses to nonperforming loans
205
%
218
%
327
%
N/A
N/A
Allowance for credit losses to nonperforming loans
244
258
391
N/A
N/A
N/A = Not Applicable
Key's provision for credit losses was $95 million, compared to $81 million in the third quarter of 2023 and $100 million in the second quarter of 2024. The increase from the year-ago period reflects continued, but slowing, credit portfolio migration, higher net charge-offs, and changes in the economic outlook, partly offset by balance sheet optimization efforts.
Net loan charge-offs for the third quarter of 2024 totaled $154 million, or 0.58% of average total loans. These results compare to $71 million, or 0.24%, for the third quarter of 2023 and $91 million, or 0.34%, for the second quarter of 2024. Key’s allowance for credit losses was $1.8 billion, or 1.68% of total period-end loans at September 30, 2024, compared to 1.54% at September 30, 2023, and 1.71% at June 30, 2024.
At September 30, 2024, Key’s nonperforming loans totaled $728 million, which represented 0.69% of period-end portfolio loans. These results compare to 0.39% at September 30, 2023, and 0.66% at June 30, 2024. Nonperforming assets at September 30, 2024, totaled $741 million, and represented 0.70% of period-end portfolio loans and OREO and other nonperforming assets. These results compare to 0.41% at September 30, 2023, and 0.68% at June 30, 2024.
CAPITAL
Key’s estimated risk-based capital ratios, included in the following table, continued to exceed all “well-capitalized” regulatory benchmarks at September 30, 2024.
Capital Ratios
9/30/2024
6/30/2024
9/30/2023
Common Equity Tier 1 (a)
10.8
%
10.5
%
9.8
%
Tier 1 risk-based capital (a)
12.6
12.2
11.4
Total risk-based capital (a)
15.1
14.7
13.8
Tangible common equity to tangible assets (b)
6.2
5.2
4.4
Leverage (a)
9.2
9.1
8.9
(a)September 30, 2024 ratio is estimated and reflects Key's election to adopt the CECL optional transition provision.
(b)The table entitled “GAAP to Non-GAAP Reconciliations” in the attached financial supplement presents the computations of certain financial measures related to “tangible common equity.” The table reconciles the GAAP performance measures to the corresponding non-GAAP measures, which provides a basis for period-to-period comparisons.
Key's regulatory capital position remained strong in the third quarter of 2024. As shown in the preceding table, at September 30, 2024, Key’s estimated Common Equity Tier 1 and Tier 1 risk-based capital ratios stood at 10.8% and 12.6%, respectively. Key's tangible common equity ratio was 6.2% at September 30, 2024.
Key elected the CECL phase-in option provided by regulatory guidance which delayed for two years the estimated impact of CECL on regulatory capital and phases it in over three years beginning in 2022.
KeyCorp Reports Third Quarter 2024 Results
October 17, 2024
Page 6
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 five basis points.
Summary of Changes in Common Shares Outstanding
In thousands
Change 3Q24 vs.
3Q24
2Q24
3Q23
2Q24
3Q23
Shares outstanding at beginning of period
943,200
942,776
935,733
—
%
.8
%
Shares issued under employee compensation plans (net of cancellations and returns)
222
424
428
(47.6)
(48.1)
Shares issued under Scotiabank investment agreement
47,829
—
—
N/M
N/M
Shares outstanding at end of period
991,251
943,200
936,161
5.1
%
5.9
%
N/M = Not Meaningful
Key declared a dividend of $.205 per common share for the third quarter of 2024.
LINE OF BUSINESS RESULTS
The following table shows the contribution made by each major business segment to Key’s taxable-equivalent revenue from continuing operations and income (loss) from continuing operations attributable to Key for the periods presented. For more detailed financial information pertaining to each business segment, see the tables at the end of this release.
Major Business Segments
Dollars in millions
Change 3Q24 vs.
3Q24
2Q24
3Q23
2Q24
3Q23
Revenue from continuing operations (TE)
Consumer Bank
$
814
$
769
$
775
5.9
%
5.0
%
Commercial Bank
868
770
809
12.7
7.3
Other (a)
(987)
(13)
(18)
N/M
N/M
Total
$
695
$
1,526
$
1,566
(54.5)
%
(55.6)
%
Income (loss) from continuing operations attributable to Key
Consumer Bank
$
86
$
67
$
65
28.4
%
32.3
%
Commercial Bank
300
207
240
44.9
25.0
Other (a)
(797)
(1)
(3)
N/M
N/M
Total
$
(411)
$
273
$
302
(250.5)
%
(236.1)
%
(a)Other includes other segments that consists of corporate treasury, our principal investing unit, and various exit portfolios as well as reconciling items which primarily represents the unallocated portion of nonearning assets of corporate support functions. Charges related to the funding of these assets are part of net interest income and are allocated to the business segments through noninterest expense. Corporate treasury includes realized gains and losses from transactions associated with Key's investment securities portfolio. Reconciling items also includes intercompany eliminations and certain items that are not allocated to the business segments because they do not reflect their normal operations.
TE = Taxable Equivalent
N/M = Not Meaningful
KeyCorp Reports Third Quarter 2024 Results
October 17, 2024
Page 7
Consumer Bank
Dollars in millions
Change 3Q24 vs.
3Q24
2Q24
3Q23
2Q24
3Q23
Summary of operations
Net interest income (TE)
$
584
$
535
$
534
9.2
%
9.4
%
Noninterest income
230
234
241
(1.7)
(4.6)
Total revenue (TE)
814
769
775
5.9
5.0
Provision for credit losses
52
33
14
57.6
271.4
Noninterest expense
649
648
676
.2
(4.0)
Income (loss) before income taxes (TE)
113
88
85
28.4
32.9
Allocated income taxes (benefit) and TE adjustments
27
21
20
28.6
35.0
Net income (loss) attributable to Key
$
86
$
67
$
65
28.4
%
32.3
%
Average balances
Loans and leases
$
38,332
$
39,174
$
41,610
(2.1)
%
(7.9)
%
Total assets
41,188
42,008
44,429
(2.0)
(7.3)
Deposits
86,431
85,397
82,683
1.2
4.5
Assets under management at period end
$
61,122
$
57,602
$
52,516
6.1
%
16.4
%
TE = Taxable Equivalent
Additional Consumer Bank Data
Dollars in millions
Change 3Q24 vs.
3Q24
2Q24
3Q23
2Q24
3Q23
Noninterest income
Trust and investment services income
$
114
$
112
$
105
1.8
%
8.6
%
Service charges on deposit accounts
34
34
39
—
(12.8)
Cards and payments income
60
61
65
(1.6)
(7.7)
Consumer mortgage income
12
16
15
(25.0)
(20.0)
Other noninterest income
10
11
17
(9.1)
(41.2)
Total noninterest income
$
230
$
234
$
241
(1.7)
%
(4.6)
%
Average deposit balances
Money market deposits
$
30,805
$
30,229
$
28,638
1.9
%
7.6
%
Demand deposits
22,310
22,292
22,526
.1
(1.0)
Savings deposits
4,553
4,791
5,676
(5.0)
(19.8)
Time deposits
13,927
13,038
8,752
6.8
59.1
Noninterest-bearing deposits
14,836
15,047
17,091
(1.4)
(13.2)
Total deposits
$
86,431
$
85,397
$
82,683
1.2
%
4.5
%
Other data
Branches
944
946
959
Automated teller machines
1,194
1,199
1,249
Consumer Bank Summary of Operations (3Q24 vs. 3Q23)
•Key's Consumer Bank recorded net income attributable to Key of $86 million for the third quarter of 2024, compared to $65 million for the year-ago quarter
•Taxable-equivalent net interest income increased by $50 million, or 9.4%, compared to the third quarter of 2023
•Average loans and leases decreased $3.3 billion, or 7.9%, from the third quarter of 2023, driven by broad-based declines across all loan categories
•Average deposits increased $3.7 billion, or 4.5%, from the third quarter of 2023, driven by growth in retail deposits
•Provision for credit losses increased $38 million compared to the third quarter of 2023, driven by changes in economic outlook and higher net charge-offs, partly offset by planned balance sheet optimization efforts
KeyCorp Reports Third Quarter 2024 Results
October 17, 2024
Page 8
•Noninterest income decreased $11 million from the year-ago quarter, driven by declines in service charges on deposit accounts and cards and payments income
•Noninterest expense decreased $27 million from the year-ago quarter, reflective of lower marketing expense
Commercial Bank
Dollars in millions
Change 3Q24 vs.
3Q24
2Q24
3Q23
2Q24
3Q23
Summary of operations
Net interest income (TE)
$
460
$
411
$
446
11.9
%
3.1
%
Noninterest income
408
359
363
13.6
12.4
Total revenue (TE)
868
770
809
12.7
7.3
Provision for credit losses
41
87
68
(52.9)
(39.7)
Noninterest expense
445
432
433
3.0
2.8
Income (loss) before income taxes (TE)
382
251
308
52.2
24.0
Allocated income taxes and TE adjustments
82
44
68
86.4
20.6
Net income (loss) attributable to Key
$
300
$
207
$
240
44.9
%
25.0
%
Average balances
Loans and leases
$
67,452
$
69,248
$
75,598
(2.6)
%
(10.8)
%
Loans held for sale
998
522
1,268
91.2
(21.3)
Total assets
76,395
78,328
85,930
(2.5)
(11.1)
Deposits
58,696
57,360
56,078
2.3
%
4.7
%
TE = Taxable Equivalent
Additional Commercial Bank Data
Dollars in millions
Change 3Q24 vs.
3Q24
2Q24
3Q23
2Q24
3Q23
Noninterest income
Trust and investment services income
$
26
$
26
$
25
—
%
4.0
%
Investment banking and debt placement fees
171
126
141
35.7
21.3
Cards and payments income
22
21
18
4.8
22.2
Service charges on deposit accounts
32
31
29
3.2
10.3
Corporate services income
62
61
64
1.6
(3.1)
Commercial mortgage servicing fees
73
61
45
19.7
62.2
Operating lease income and other leasing gains
16
21
22
(23.8)
(27.3)
Other noninterest income
6
12
19
(50.0)
(68.4)
Total noninterest income
$
408
$
359
$
363
13.6
%
12.4
%
Commercial Bank Summary of Operations (3Q24 vs. 3Q23)
•Key's Commercial Bank recorded net income attributable to Key of $300 million for the third quarter of 2024 compared to $240 million for the year-ago quarter
•Taxable-equivalent net interest income increased by $14 million, or 3.1%, compared to the third quarter of 2023
•Average loan and lease balances decreased $8.1 billion, or 10.8%, compared to the third quarter of 2023, driven by a decline in commercial and industrial loans
•Average deposit balances increased $2.6 billion compared to the third quarter of 2023, driven by our focus on growing deposits across our commercial businesses
•Provision for credit losses decreased $27 million compared to the third quarter of 2023, driven by the impact of balance sheet optimization efforts, partly offset by slowing credit portfolio migration, changes in economic outlook, and higher net charge-offs
•Noninterest income increased $45 million compared to the third quarter of 2023, primarily driven by an increase in investment banking and debt placement fees and commercial mortgage servicing fees
•Noninterest expense increased $12 million compared to the third quarter of 2023, driven by higher incentive compensation related to stronger investment banking and debt placement fees
KeyCorp Reports Third Quarter 2024 Results
October 17, 2024
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 $190 billion at September 30, 2024.
Key provides deposit, lending, cash management, and investment services to individuals and businesses in 15 states under the name KeyBank National Association through a network of approximately 1,000 branches and approximately 1,200 ATMs. Key also provides a broad range of sophisticated corporate and investment banking products, such as merger and acquisition advice, public and private debt and equity, syndications and derivatives to middle market companies in selected industries throughout the United States under the KeyBanc Capital Markets trade name. For more information, visit https://www.key.com/. KeyBank is Member FDIC.
KeyCorp Reports Third Quarter 2024 Results
October 17, 2024
Page 10
CONTACTS:
ANALYSTS
MEDIA
Brian Mauney
Susan Donlan
216.689.0521
216.471.3133
Brian_Mauney@KeyBank.com
Susan_E_Donlan@KeyBank.com
Halle Nichols
Beth Strauss
216.689.5305
216.471.2787
Halle_A_Nichols@KeyBank.com
Beth_A_Strauss@KeyBank.com
INVESTOR RELATIONS:
KEY MEDIA NEWSROOM:
www.key.com/ir
www.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, 2023 and in KeyCorp's subsequent SEC filings, all of which have been or will be filed with the Securities and Exchange Commission (the “SEC”) and are or will be available on Key’s website (www.key.com/ir) and on the SEC’s website (www.sec.gov). These factors may include, among others, deterioration of commercial real estate market fundamentals, adverse changes in credit quality trends, declining asset prices, a worsening of the U.S. economy due to financial, political, or other shocks, the extensive regulation of the U.S. financial services industry, the soundness of other financial institutions and the impact of changes in the interest rate environment.
Any forward-looking statements made by us or on our behalf speak only as of the date they are made and we do not undertake any obligation to update any forward-looking statement to reflect the impact of subsequent events or circumstances.
Notes to Editors:
A live Internet broadcast of KeyCorp’s conference call to discuss quarterly results and currently anticipated earnings trends and to answer analysts’ questions can be accessed through the Investor Relations section at https://www.key.com/ir at 9:00 a.m. ET, on October 17, 2024. A replay of the call will be available on our website through October 17, 2025.
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 Third Quarter 2024 Results
October 17, 2024
Page 11
KeyCorp
Third Quarter 2024
Financial Supplement
Page
12
Basis of Presentation
13
Financial Highlights
15
GAAP to Non-GAAP Reconciliation
17
Consolidated Balance Sheets
18
Consolidated Statements of Income
19
Consolidated Average Balance Sheets, and Net Interest Income and Yields/Rates From Continuing Operations
21
Noninterest Expense
21
Personnel Expense
22
Loan Composition
22
Loans Held for Sale Composition
22
Summary of Changes in Loans Held for Sale
23
Summary of Loan and Lease Loss Experience From Continuing Operations
24
Asset Quality Statistics From Continuing Operations
24
Summary of Nonperforming Assets and Past Due Loans From Continuing Operations
24
Summary of Changes in Nonperforming Loans From Continuing Operations
25
Line of Business Results
25
Selected Items Impact on Earnings
KeyCorp Reports Third Quarter 2024 Results
October 17, 2024
Page 12
Basis of Presentation
Use of Non-GAAP Financial Measures
This document contains GAAP financial measures and non-GAAP financial measures where management
believes it to be helpful in understanding Key’s results of operations or financial position. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in this document, the financial supplement, or conference call slides related to this document, all of which can be found on Key’s website (www.key.com/ir).
Annualized Data
Certain returns, yields, performance ratios, or quarterly growth rates are presented on an “annualized”
basis. This is done for analytical and decision-making purposes to better discern underlying performance trends when compared to full-year or year-over-year amounts.
Taxable Equivalent
Income from tax-exempt earning assets is increased by an amount equivalent to the taxes that would have been paid if this income had been taxable at the federal statutory rate. This adjustment puts all earning assets, most notably tax-exempt municipal securities, and certain lease assets, on a common basis that facilitates comparison of results to results of peers.
Earnings Per Share Equivalent
Certain income or expense items may be expressed on a per common share basis. This is done for analytical and decision-making purposes to better discern underlying trends in total consolidated earnings per share performance excluding the impact of such items. When the impact of certain income or expense items is disclosed separately, the after-tax amount is computed using the marginal tax rate, unless otherwise specified, with this then being the amount used to calculate the earnings per share equivalent.
KeyCorp Reports Third Quarter 2024 Results
October 17, 2024
Page 13
Financial Highlights
(Dollars in millions, except per share amounts)
Three months ended
9/30/2024
6/30/2024
9/30/2023
Summary of operations
Net interest income (TE)
$
964
$
899
$
923
Noninterest income
(269)
627
643
Total revenue (TE)
695
1,526
1,566
Provision for credit losses
95
100
81
Noninterest expense
1,094
1,079
1,110
Income (loss) from continuing operations attributable to Key
(411)
273
302
Income (loss) from discontinued operations, net of taxes
1
1
1
Net income (loss) attributable to Key
(410)
274
303
Income (loss) from continuing operations attributable to Key common shareholders
(447)
237
266
Income (loss) from discontinued operations, net of taxes
1
1
1
Net income (loss) attributable to Key common shareholders
(446)
238
267
Per common share
Income (loss) from continuing operations attributable to Key common shareholders
$
(.47)
$
.25
$
.29
Income (loss) from discontinued operations, net of taxes
—
—
—
Net income (loss) attributable to Key common shareholders (a)
(.47)
.25
.29
Income (loss) from continuing operations attributable to Key common shareholders — assuming dilution
(.47)
.25
.29
Income (loss) from discontinued operations, net of taxes — assuming dilution
—
—
—
Net income (loss) attributable to Key common shareholders — assuming dilution (a)
(.47)
.25
.29
Cash dividends declared
.205
.205
.205
Book value at period end
14.53
13.09
11.65
Tangible book value at period end
11.72
10.13
8.65
Market price at period end
16.75
14.21
10.76
Performance ratios
From continuing operations:
Return on average total assets
(.87)
%
.59
%
.62
%
Return on average common equity
(13.41)
7.96
9.31
Return on average tangible common equity (b)
(16.98)
10.39
12.40
Net interest margin (TE)
2.17
2.04
2.01
Cash efficiency ratio (b)
156.4
70.2
70.3
From consolidated operations:
Return on average total assets
(.87)
%
.59
%
.62
%
Return on average common equity
(13.38)
7.99
9.35
Return on average tangible common equity (b)
(16.95)
10.43
12.45
Net interest margin (TE)
2.17
2.04
2.01
Loan to deposit (c)
71.0
74.0
80.8
Capital ratios at period end
Key shareholders’ equity to assets
8.9
%
7.9
%
7.1
%
Key common shareholders’ equity to assets
7.6
6.6
5.8
Tangible common equity to tangible assets (b)
6.2
5.2
4.4
Common Equity Tier 1 (d)
10.8
10.5
9.8
Tier 1 risk-based capital (d)
12.6
12.2
11.4
Total risk-based capital (d)
15.1
14.7
13.8
Leverage (d)
9.2
9.1
8.9
Asset quality — from continuing operations
Net loan charge-offs
$
154
$
91
$
71
Net loan charge-offs to average loans
.58
%
.34
%
.24
%
Allowance for loan and lease losses
$
1,494
$
1,547
$
1,488
Allowance for credit losses
1,774
1,833
1,778
Allowance for loan and lease losses to period-end loans
1.42
%
1.44
%
1.29
%
Allowance for credit losses to period-end loans
1.68
1.71
1.54
Allowance for loan and lease losses to nonperforming loans
205
218
327
Allowance for credit losses to nonperforming loans
244
258
391
Nonperforming loans at period-end
$
728
$
710
$
455
Nonperforming assets at period-end
741
727
471
Nonperforming loans to period-end portfolio loans
.69
%
.66
%
.39
%
Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets
.70
.68
.41
Trust assets
Assets under management
$
61,122
$
57,602
$
52,516
Other data
Average full-time equivalent employees
16,805
16,646
17,666
Branches
944
946
959
Taxable-equivalent adjustment
$
12
$
12
$
8
KeyCorp Reports Third Quarter 2024 Results
October 17, 2024
Page 14
Financial Highlights (continued)
(Dollars in millions, except per share amounts)
Nine months ended
9/30/2024
9/30/2023
Summary of operations
Net interest income (TE)
$
2,749
$
3,015
Noninterest income
1,005
1,860
Total revenue (TE)
3,754
4,875
Provision for credit losses
296
387
Noninterest expense
3,316
3,362
Income (loss) from continuing operations attributable to Key
81
899
Income (loss) from discontinued operations, net of taxes
2
3
Net income (loss) attributable to Key
83
902
Income (loss) from continuing operations attributable to Key common shareholders
(27)
791
Income (loss) from discontinued operations, net of taxes
2
3
Net income (loss) attributable to Key common shareholders
(25)
794
Per common share
Income (loss) from continuing operations attributable to Key common shareholders
$
(.03)
$
.85
Income (loss) from discontinued operations, net of taxes
—
—
Net income (loss) attributable to Key common shareholders (a)
(.03)
.86
Income (loss) from continuing operations attributable to Key common shareholders — assuming dilution
(.03)
.85
Income (loss) from discontinued operations, net of taxes — assuming dilution
—
—
Net income (loss) attributable to Key common shareholders — assuming dilution (a)
(.03)
.85
Cash dividends paid
.62
.62
Performance ratios
From continuing operations:
Return on average total assets
.06
%
.62
%
Return on average common equity
(.29)
9.18
Return on average tangible common equity (b)
(.37)
12.17
Net interest margin (TE)
2.08
2.20
Cash efficiency ratio (b)
87.7
68.4
From consolidated operations:
Return on average total assets
.06
%
.62
%
Return on average common equity
(0.27)
9.22
Return on average tangible common equity (b)
(0.35)
12.22
Net interest margin (TE)
2.08
2.20
Asset quality — from continuing operations
Net loan charge-offs
$
326
$
168
Net loan charge-offs to average total loans
.40
%
.19
%
Other data
Average full-time equivalent employees
16,734
17,880
Taxable-equivalent adjustment
35
23
(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)September 30, 2024, ratio is estimated and reflects Key's election to adopt the CECL optional transition provision.
KeyCorp Reports Third Quarter 2024 Results
October 17, 2024
Page 15
GAAP to Non-GAAP Reconciliations
(Dollars in millions)
The table below presents certain non-GAAP financial measures related to “tangible common equity,” “return on average tangible common equity,” “pre-provision net revenue," “cash efficiency ratio," "adjusted income (loss) available from continuing operations attributable to Key common shareholders," and "diluted earnings per share - adjusted."
The tangible common equity ratio and the return on average tangible common equity ratio have been a focus for some investors, and management believes these ratios may assist investors in analyzing Key’s capital position without regard to the effects of intangible assets and preferred stock.
The table also shows the computation for pre-provision net revenue, which is not formally defined by GAAP. Management believes that eliminating the effects of the provision for credit losses makes it easier to analyze the results by presenting them on a more comparable basis.
The cash efficiency ratio is a ratio of two non-GAAP performance measures. As such, there is no directly comparable GAAP performance measure. The cash efficiency ratio performance measure removes the impact of Key’s intangible asset amortization from the calculation. Management believes this ratio provides greater consistency and comparability between Key’s results and those of its peer banks. Additionally, this ratio is used by analysts and investors as they develop earnings forecasts and peer bank analysis.
Adjusted income (loss) available from continuing operations attributable to Key common shareholders (or “adjusted net income”) and diluted earnings per share - adjusted (or "adjusted earnings per share") are non-GAAP in that these measures exclude securities portfolio repositioning, net of tax, that occurred in the third quarter of 2024. Management believes these measures provide investors with useful information to gain a better understanding of ongoing operations and enhance comparability of results with prior periods, as well as demonstrate the effects of the significant losses related to the securities repositioning.
Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied, and are not audited. Although these non-GAAP financial measures are frequently used by investors to evaluate a company, they have limitations as analytical tools, and should not be considered in isolation, or as a substitute for analyses of results as reported under GAAP.
Three months ended
Nine months ended
9/30/2024
6/30/2024
9/30/2023
9/30/2024
9/30/2023
Tangible common equity to tangible assets at period-end
Key shareholders’ equity (GAAP)
$
16,852
$
14,789
$
13,356
Less: Intangible assets (a)
2,786
2,793
2,816
Preferred Stock (b)
2,446
2,446
2,446
Tangible common equity (non-GAAP)
$
11,620
$
9,550
$
8,094
Total assets (GAAP)
$
189,763
$
187,450
$
187,851
Less: Intangible assets (a)
2,786
2,793
2,816
Tangible assets (non-GAAP)
$
186,977
$
184,657
$
185,035
Tangible common equity to tangible assets ratio (non-GAAP)
6.21
%
5.17
%
4.37
%
Pre-provision net revenue
Net interest income (GAAP)
$
952
$
887
$
915
$
2,714
$
2,992
Plus: Taxable-equivalent adjustment
12
12
8
35
23
Noninterest income
(269)
627
643
1,005
1,860
Less: Noninterest expense
1,094
1,079
1,110
3,316
3,362
Pre-provision net revenue from continuing operations (non-GAAP)
$
(399)
$
447
$
456
$
438
$
1,513
Average tangible common equity
Average Key shareholders' equity (GAAP)
$
15,759
$
14,474
$
13,831
$
14,963
$
14,020
Less: Intangible assets (average) (c)
2,789
2,796
2,821
2,796
2,831
Preferred stock (average)
2,500
2,500
2,500
2,500
2,500
Average tangible common equity (non-GAAP)
$
10,470
$
9,178
$
8,510
$
9,667
$
8,689
Return on average tangible common equity from continuing operations
Net income (loss) from continuing operations attributable to Key common shareholders (GAAP)
$
(447)
$
237
$
266
$
(27)
$
791
Average tangible common equity (non-GAAP)
10,470
9,178
8,510
9,667
8,689
Return on average tangible common equity from continuing operations (non-GAAP)
(16.98)
%
10.39
%
12.40
%
(0.37)
%
12.17
%
Return on average tangible common equity consolidated
Net income (loss) attributable to Key common shareholders (GAAP)
$
(446)
$
238
$
267
$
(25)
$
794
Average tangible common equity (non-GAAP)
10,470
9,178
8,510
9,667
8,689
Return on average tangible common equity consolidated (non-GAAP)
(16.95)
%
10.43
%
12.45
%
(0.35)
%
12.22
%
KeyCorp Reports Third Quarter 2024 Results
October 17, 2024
Page 16
GAAP to Non-GAAP Reconciliations (continued)
(Dollars in millions)
Three months ended
Nine months ended
9/30/2024
6/30/2024
9/30/2023
9/30/2024
9/30/2023
Cash efficiency ratio
Noninterest expense (GAAP)
$
1,094
$
1,079
$
1,110
$
3,316
$
3,362
Less: Intangible asset amortization
7
7
9
22
29
Adjusted noninterest expense (non-GAAP)
$
1,087
$
1,072
$
1,101
$
3,294
$
3,333
Net interest income (GAAP)
$
952
$
887
$
915
$
2,714
$
2,992
Plus: Taxable-equivalent adjustment
12
12
8
35
23
Net interest income TE (non-GAAP)
964
899
923
2,749
3,015
Noninterest income (GAAP)
(269)
627
643
1,005
1,860
Total taxable-equivalent revenue (non-GAAP)
$
695
$
1,526
$
1,566
$
3,754
$
4,875
Cash efficiency ratio (non-GAAP)
156.4
%
70.2
%
70.3
%
87.7
%
68.4
%
Adjusted income (loss) available from continuing operations attributable to Key common shareholders
Income (loss) from continuing operations attributable to Key common shareholders (GAAP)
$
(447)
$
237
$
266
Plus: Loss on sale of securities (net of tax)
737
—
—
Adjusted income (loss) available from continuing operations attributable to Key common shareholders (non-GAAP)
$
290
$
237
$
266
Diluted earnings per common share (EPS) - adjusted
Diluted EPS from continuing operations attributable to Key common shareholders (GAAP)
$
(.47)
$
.25
$
.29
Plus: EPS impact of loss on sale of securities
.77
—
—
Diluted EPS from continuing operations attributable to Key common shareholders - adjusted (non-GAAP)
$
.30
$
.25
$
.29
(a)For the three months ended September 30, 2024, June 30, 2024, and September 30, 2023, intangible assets exclude less than $1 million, less than $1 million, and $1 million, respectively, of period-end purchased credit card receivables.
(b)Net of capital surplus.
(c)For the three months ended September 30, 2024, June 30, 2024, and September 30, 2023, average intangible assets exclude less than $1 million, less than $1 million, and $1 million, respectively, of average purchased credit card receivables.
GAAP = U.S. generally accepted accounting principles
KeyCorp Reports Third Quarter 2024 Results
October 17, 2024
Page 17
Consolidated Balance Sheets
(Dollars in millions)
9/30/2024
6/30/2024
9/30/2023
Assets
Loans
$
105,346
$
107,078
$
115,544
Loans held for sale
1,058
517
730
Securities available for sale
34,169
37,460
35,839
Held-to-maturity securities
7,702
7,968
8,853
Trading account assets
1,404
1,219
1,325
Short-term investments
22,796
15,536
7,871
Other investments
1,117
1,259
1,356
Total earning assets
173,592
171,037
171,518
Allowance for loan and lease losses
(1,494)
(1,547)
(1,488)
Cash and due from banks
1,276
1,326
766
Premises and equipment
624
631
649
Goodwill
2,752
2,752
2,752
Other intangible assets
34
41
65
Corporate-owned life insurance
4,379
4,382
4,381
Accrued income and other assets
8,323
8,532
8,843
Discontinued assets
277
296
365
Total assets
$
189,763
$
187,450
$
187,851
Liabilities
Deposits in domestic offices:
Interest-bearing deposits
$
119,995
$
117,570
$
112,581
Noninterest-bearing deposits
30,358
28,150
31,710
Total deposits
150,353
145,720
144,291
Federal funds purchased and securities sold under repurchase agreements
44
25
43
Bank notes and other short-term borrowings
2,359
5,292
3,470
Accrued expense and other liabilities
4,478
4,755
5,388
Long-term debt
15,677
16,869
21,303
Total liabilities
172,911
172,661
174,495
Equity
Preferred stock
2,500
2,500
2,500
Common shares
1,257
1,257
1,257
Capital surplus
6,149
6,185
6,254
Retained earnings
15,066
15,706
15,835
Treasury stock, at cost
(4,839)
(5,715)
(5,851)
Accumulated other comprehensive income (loss)
(3,281)
(5,144)
(6,639)
Key shareholders’ equity
16,852
14,789
13,356
Total liabilities and equity
$
189,763
$
187,450
$
187,851
Common shares outstanding (000)
991,251
943,200
936,161
KeyCorp Reports Third Quarter 2024 Results
October 17, 2024
Page 18
Consolidated Statements of Income
(Dollars in millions, except per share amounts)
Three months ended
Nine months ended
9/30/2024
6/30/2024
9/30/2023
9/30/2024
9/30/2023
Interest income
Loans
$
1,516
$
1,524
$
1,593
$
4,578
$
4,645
Loans held for sale
18
8
19
40
49
Securities available for sale
298
259
192
789
580
Held-to-maturity securities
70
73
79
218
234
Trading account assets
15
16
15
45
42
Short-term investments
244
192
123
578
276
Other investments
14
16
22
47
51
Total interest income
2,175
2,088
2,043
6,295
5,877
Interest expense
Deposits
887
817
687
2,486
1,568
Federal funds purchased and securities sold under repurchase agreements
1
1
9
3
79
Bank notes and other short-term borrowings
43
51
81
140
263
Long-term debt
292
332
351
952
975
Total interest expense
1,223
1,201
1,128
3,581
2,885
Net interest income
952
887
915
2,714
2,992
Provision for credit losses
95
100
81
296
387
Net interest income after provision for credit losses
857
787
834
2,418
2,605
Noninterest income
Trust and investment services income
140
139
130
415
384
Investment banking and debt placement fees
171
126
141
467
406
Cards and payments income
84
85
90
246
256
Service charges on deposit accounts
67
66
69
196
205
Corporate services income
69
68
73
206
235
Commercial mortgage servicing fees
73
61
46
190
142
Corporate-owned life insurance income
36
34
35
102
96
Consumer mortgage income
12
16
15
42
40
Operating lease income and other leasing gains
16
21
22
61
70
Other income(c)
(937)
11
22
(920)
26
Total noninterest income
(269)
627
643
1,005
1,860
Noninterest expense
Personnel
670
636
663
1,980
1,986
Net occupancy
66
66
67
199
202
Computer processing
104
101
89
307
276
Business services and professional fees
41
37
38
119
124
Equipment
20
20
20
60
64
Operating lease expense
14
17
18
48
59
Marketing
21
21
28
61
78
Other expense
158
181
187
542
573
Total noninterest expense
1,094
1,079
1,110
3,316
3,362
Income (loss) from continuing operations before income taxes
(506)
335
367
107
1,103
Income taxes (benefit)
(95)
62
65
26
204
Income (loss) from continuing operations
(411)
273
302
81
899
Income (loss) from discontinued operations, net of taxes
1
1
1
2
3
Net income (loss)
(410)
274
303
83
902
Net income (loss) attributable to Key
$
(410)
$
274
$
303
$
83
$
902
Income (loss) from continuing operations attributable to Key common shareholders
$
(447)
$
237
$
266
$
(27)
$
791
Net income (loss) attributable to Key common shareholders
(446)
238
267
(25)
794
Per common share
Income (loss) from continuing operations attributable to Key common shareholders
$
(.47)
$
.25
$
.29
$
(.03)
$
.85
Income (loss) from discontinued operations, net of taxes
—
—
—
—
—
Net income (loss) attributable to Key common shareholders (a)
(.47)
.25
.29
(.03)
.86
Per common share — assuming dilution
Income (loss) from continuing operations attributable to Key common shareholders
$
(.47)
$
.25
$
.29
$
(.03)
$
.85
Income (loss) from discontinued operations, net of taxes
—
—
—
—
—
Net income (loss) attributable to Key common shareholders (a)
(.47)
.25
.29
(.03)
.85
Cash dividends declared per common share
$
.205
$
.205
$
.205
$
.615
$
.615
Weighted-average common shares outstanding (000)
948,979
931,726
927,131
936,962
927,019
Effect of common share options and other stock awards
8,951
6,761
4,613
7,678
5,213
Weighted-average common shares and potential common shares outstanding (000) (b)
957,929
938,487
931,744
944,640
932,232
(a)Earnings per share may not foot due to rounding.
(b)Assumes conversion of common share options and other stock awards, as applicable.
(c)For the three months ended September 30, 2024, and June 30, 2024, we had $935 million and $13 million in net securities losses, respectively. For the three months ended September 30, 2023, we had no net securities gains or losses. For the nine months ended September 30, 2024, and September 30, 2023, we had $948 million and $7 million in net securities losses, respectively.
KeyCorp Reports Third Quarter 2024 Results
October 17, 2024
Page 19
Consolidated Average Balance Sheets, and Net Interest Income and Yields/Rates From Continuing Operations
(Dollars in millions)
Third Quarter 2024
Second Quarter 2024
Third Quarter 2023
Average
Yield/
Average
Yield/
Average
Yield/
Balance
Interest (a)
Rate (a)
Balance
Interest (a)
Rate (a)
Balance
Interest (a)
Rate (a)
Assets
Loans: (b), (c)
Commercial and industrial (d)
$
53,121
$
847
6.34
%
$
54,599
$
860
6.34
%
$
59,187
$
886
5.94
%
Real estate — commercial mortgage
13,864
225
6.46
14,287
217
6.10
15,844
238
5.97
Real estate — construction
3,077
59
7.65
3,020
56
7.51
2,820
48
6.77
Commercial lease financing
2,988
26
3.46
3,193
28
3.46
3,707
30
3.25
Total commercial loans
73,050
1,157
6.30
75,099
1,161
6.22
81,558
1,202
5.85
Real estate — residential mortgage
20,215
167
3.30
20,515
169
3.30
21,459
176
3.28
Home equity loans
6,634
100
5.98
6,817
102
5.98
7,418
110
5.87
Other consumer loans
5,426
69
5.08
5,597
70
5.00
6,201
78
4.96
Credit cards
919
35
15.22
933
34
14.63
991
35
14.16
Total consumer loans
33,194
371
4.46
33,862
375
4.44
36,069
399
4.40
Total loans
106,244
1,528
5.73
108,961
1,536
5.66
117,627
1,601
5.41
Loans held for sale
1,098
18
6.54
599
8
5.42
1,356
19
5.73
Securities available for sale (b), (e)
36,700
298
2.87
36,764
259
2.42
37,271
192
1.76
Held-to-maturity securities (b)
7,838
70
3.58
8,123
73
3.59
9,020
79
3.50
Trading account assets
1,142
15
5.08
1,231
16
5.38
1,203
15
4.97
Short-term investments
17,773
244
5.47
13,729
192
5.62
8,416
123
5.79
Other investments (e)
1,193
14
4.77
1,234
16
5.19
1,395
22
6.35
Total earning assets
171,988
2,187
4.93
170,641
2,100
4.77
176,288
2,051
4.47
Allowance for loan and lease losses
(1,533)
(1,534)
(1,477)
Accrued income and other assets
17,154
17,476
17,530
Discontinued assets
284
305
374
Total assets
$
187,893
$
186,888
$
192,715
Liabilities
Money market deposits
$
40,379
$
309
3.04
%
$
39,364
$
290
2.97
%
$
35,243
$
213
2.40
%
Demand deposits
56,087
365
2.59
54,629
340
2.50
55,837
315
2.24
Savings deposits
4,967
3
.22
5,189
2
.19
5,966
1
.05
Time deposits
17,870
210
4.68
16,019
185
4.64
15,082
158
4.16
Total interest-bearing deposits
119,303
887
2.96
115,201
817
2.85
112,128
687
2.43
Federal funds purchased and securities sold under repurchase agreements
98
1
4.48
124
1
4.76
710
9
5.04
Bank notes and other short-term borrowings
3,172
43
5.44
3,617
51
5.57
5,819
81
5.54
Long-term debt (f)
16,422
292
7.09
19,219
332
6.91
21,584
351
6.50
Total interest-bearing liabilities
138,995
1,223
3.50
138,161
1,201
3.49
140,241
1,128
3.20
Noninterest-bearing deposits
28,468
28,979
32,697
Accrued expense and other liabilities
4,387
4,969
5,572
Discontinued liabilities (f)
284
305
374
Total liabilities
$
172,134
$
172,414
$
178,884
Equity
Key shareholders’ equity
$
15,759
$
14,474
$
13,831
Noncontrolling interests
—
—
—
Total equity
15,759
14,474
13,831
Total liabilities and equity
$
187,893
$
186,888
$
192,715
Interest rate spread (TE)
1.43
%
1.28
%
1.27
%
Net interest income (TE) and net interest margin (TE)
$
964
2.17
%
$
899
2.04
%
$
923
2.01
%
TE adjustment (b)
12
12
8
Net interest income, GAAP basis
$
952
$
887
$
915
(a)Results are from continuing operations. Interest excludes the interest associated with the liabilities referred to in (f) below, calculated using a matched funds transfer pricing methodology.
(b)Interest income on tax-exempt securities and loans has been adjusted to a taxable-equivalent basis using the statutory federal income tax rate of 21% for the three months ended September 30, 2024, June 30, 2024, and September 30, 2023.
(c)For purposes of these computations, nonaccrual loans are included in average loan balances.
(d)Commercial and industrial average balances include $215 million, $218 million, and $202 million of assets from commercial credit cards for the three months ended September 30, 2024, June 30, 2024, and September 30, 2023, respectively.
(e)Yield presented is calculated on the basis of amortized cost. The average amortized cost for securities available for sale was $41.6 billion, $42.8 billion, and $43.6 billion for the three months ended September 30, 2024, June 30, 2024, and September 30, 2023, respectively. Yield based on the fair value of securities available for sale was 3.25%, 2.82%, and 2.06% for the three months ended September 30, 2024, June 30, 2024, and September 30, 2023, respectively.
(f)A portion of long-term debt and the related interest expense is allocated to discontinued liabilities as a result of applying Key’s matched funds transfer pricing methodology to discontinued operations.
TE = Taxable Equivalent, GAAP = U.S. generally accepted accounting principles.
KeyCorp Reports Third Quarter 2024 Results
October 17, 2024
Page 20
Consolidated Average Balance Sheets, and Net Interest Income and Yields/Rates From Continuing Operations
(Dollars in millions)
Nine months ended September 30, 2024
Nine months ended September 30, 2023
Average
Yield/
Average
Yield/
Balance
Interest (a)
Rate (a)
Balance
Interest (a)
Rate (a)
Assets
Loans: (b), (c)
Commercial and industrial (d)
$
54,309
$
2,561
6.30
%
$
60,294
$
2,574
5.71
%
Real estate — commercial mortgage
14,328
671
6.25
16,178
697
5.76
Real estate — construction
3,046
172
7.56
2,663
131
6.58
Commercial lease financing
3,175
81
3.38
3,749
86
3.06
Total commercial loans
74,858
3,485
6.22
82,884
3,488
5.63
Real estate — residential mortgage
20,514
508
3.30
21,534
524
3.25
Home equity loans
6,824
305
5.98
7,621
325
5.71
Other consumer loans
5,607
211
5.02
6,346
230
4.84
Credit cards
935
104
14.92
986
101
13.68
Total consumer loans
33,880
1,128
4.44
36,487
1,180
4.32
Total loans
108,738
4,613
5.67
119,371
4,668
5.23
Loans held for sale
862
40
6.14
1,118
49
5.90
Securities available for sale (b), (e)
36,850
789
2.48
38,440
580
1.74
Held-to-maturity securities (b)
8,127
218
3.58
9,108
234
3.43
Trading account assets
1,161
45
5.23
1,150
42
4.82
Short-term investments
13,929
578
5.55
6,600
276
5.59
Other investments (e)
1,221
47
5.12
1,423
51
4.78
Total earning assets
170,888
6,330
4.79
177,210
5,900
4.30
Allowance for loan and lease losses
(1,524)
(1,398)
Accrued income and other assets
17,327
17,411
Discontinued assets
306
395
Total assets
$
186,997
$
193,618
Liabilities
Money market deposits
$
39,139
$
863
2.94
%
$
33,829
$
414
1.64
%
Other demand deposits
55,619
1,062
2.55
53,951
754
1.87
Savings deposits
5,136
6
.16
6,630
2
.04
Time deposits
16,113
555
4.60
13,615
398
3.90
Total interest-bearing deposits
116,007
2,486
2.86
108,025
1,568
1.94
Federal funds purchased and securities sold under repurchase agreements
109
3
4.44
2,183
79
4.84
Bank notes and other short-term borrowings
3,371
140
5.55
6,797
263
5.17
Long-term debt (f)
18,386
952
6.90
21,341
975
6.09
Total interest-bearing liabilities
137,873
3,581
3.47
138,346
2,885
2.79
Noninterest-bearing deposits
28,947
35,691
Accrued expense and other liabilities
4,908
5,166
Discontinued liabilities (f)
306
395
Total liabilities
$
172,034
$
179,598
Equity
Key shareholders’ equity
$
14,963
$
14,020
Noncontrolling interests
—
—
Total equity
14,963
14,020
Total liabilities and equity
$
186,997
$
193,618
Interest rate spread (TE)
1.32
%
1.52
%
Net interest income (TE) and net interest margin (TE)
$
2,749
2.08
%
$
3,015
2.20
%
TE adjustment (b)
35
23
Net interest income, GAAP basis
$
2,714
$
2,992
(a)Results are from continuing operations. Interest excludes the interest associated with the liabilities referred to in (f) below, calculated using a matched funds transfer pricing methodology.
(b)Interest income on tax-exempt securities and loans has been adjusted to a taxable-equivalent basis using the statutory federal income tax rate of 21% for the nine months ended September 30, 2024, and September 30, 2023, respectively.
(c)For purposes of these computations, nonaccrual loans are included in average loan balances.
(d)Commercial and industrial average balances include $215 million and $192 million of assets from commercial credit cards for the nine months ended September 30, 2024, and September 30, 2023, respectively.
(e)Yield presented is calculated on the basis of amortized cost. The average amortized cost for securities available for sale was $42.4 billion and $44.5 billion for the nine months ended September 30, 2024, and September 30, 2023, respectively. Yield based on the fair value of securities available for sale was 2.85% and 2.01% for the nine months ended September 30, 2024, and September 30, 2023, respectively.
(f)A portion of long-term debt and the related interest expense is allocated to discontinued liabilities as a result of applying Key’s matched funds transfer pricing methodology to discontinued operations.
TE = Taxable Equivalent, GAAP = U.S. generally accepted accounting principles
KeyCorp Reports Third Quarter 2024 Results
October 17, 2024
Page 21
Noninterest Expense
(Dollars in millions)
Three months ended
Nine months ended
9/30/2024
6/30/2024
9/30/2023
9/30/2024
9/30/2023
Personnel (a)
$
670
$
636
$
663
$
1,980
$
1,986
Net occupancy
66
66
67
199
202
Computer processing
104
101
89
307
276
Business services and professional fees
41
37
38
119
124
Equipment
20
20
20
60
64
Operating lease expense
14
17
18
48
59
Marketing
21
21
28
61
78
Other expense
158
181
187
542
573
Total noninterest expense
$
1,094
$
1,079
$
1,110
$
3,316
$
3,362
Average full-time equivalent employees (b)
16,805
16,646
17,666
16,734
17,880
(a)Additional detail provided in Personnel Expense table below.
(b)The number of average full-time equivalent employees has not been adjusted for discontinued operations.
Personnel Expense
(Dollars in millions)
Three months ended
Nine months ended
9/30/2024
6/30/2024
9/30/2023
9/30/2024
9/30/2023
Salaries and contract labor
$
408
$
394
$
415
$
1,191
$
1,250
Incentive and stock-based compensation
162
143
141
464
386
Employee benefits
99
98
106
323
308
Severance
1
1
1
2
42
Total personnel expense
$
670
$
636
$
663
$
1,980
$
1,986
KeyCorp Reports Third Quarter 2024 Results
October 17, 2024
Page 22
Loan Composition
(Dollars in millions)
Change 9/30/2024 vs.
9/30/2024
6/30/2024
9/30/2023
6/30/2024
9/30/2023
Commercial and industrial (a)(b)
$
52,774
$
53,129
$
57,606
(.7)
%
(8.4)
%
Commercial real estate:
Commercial mortgage
13,637
14,218
15,549
(4.1)
(12.3)
Construction
3,093
3,077
2,982
.5
3.7
Total commercial real estate loans
16,730
17,295
18,531
(3.3)
(9.7)
Commercial lease financing (b)
2,913
3,101
3,681
(6.1)
(20.9)
Total commercial loans
72,417
73,525
79,818
(1.5)
(9.3)
Residential — prime loans:
Real estate — residential mortgage
20,122
20,380
21,309
(1.3)
(5.6)
Home equity loans
6,555
6,729
7,324
(2.6)
(10.5)
Total residential — prime loans
26,677
27,109
28,633
(1.6)
(6.8)
Other consumer loans
5,338
5,514
6,105
(3.2)
(12.6)
Credit cards
914
930
988
(1.7)
(7.5)
Total consumer loans
32,929
33,553
35,726
(1.9)
(7.8)
Total loans (c), (d)
$
105,346
$
107,078
$
115,544
(1.6)
%
(8.8)
%
(a)Loan balances include $219 million, $217 million, and $207 million of commercial credit card balances at September 30, 2024, June 30, 2024, and September 30, 2023, respectively.
(b)Commercial and industrial includes receivables held as collateral for a secured borrowing of $261 million at September 30, 2024, $285 million at June 30, 2024 and no amounts held as collateral for a secured borrowing at September 30, 2023. Commercial lease financing includes receivables held as collateral for a secured borrowing of $3 million, $5 million, and $4 million at September 30, 2024, June 30, 2024, and September 30, 2023, respectively. Principal reductions are based on the cash payments received from these related receivables.
(c)Total loans exclude loans of $272 million at September 30, 2024, $291 million at June 30, 2024, and $360 million at September 30, 2023, related to the discontinued operations of the education lending business.
(d)Accrued interest of $480 million, $487 million, and $522 million at September 30, 2024, June 30, 2024, and September 30, 2023, respectively, presented in "other assets" on the Consolidated Balance Sheets is excluded from the amortized cost basis disclosed in this table.
Loans Held for Sale Composition
(Dollars in millions)
Change 9/30/2024 vs.
9/30/2024
6/30/2024
9/30/2023
6/30/2024
9/30/2023
Commercial and industrial
$
250
$
72
$
47
247.2
%
431.9
%
Real estate — commercial mortgage
747
354
571
111.0
30.8
Real estate — residential mortgage
61
91
112
(33.0)
(45.5)
Total loans held for sale
$
1,058
$
517
$
730
104.6
%
44.9
%
Summary of Changes in Loans Held for Sale
(Dollars in millions)
3Q24
2Q24
1Q24
4Q23
3Q23
Balance at beginning of period
$
517
$
228
$
483
$
730
$
1,130
New originations
2,473
1,532
1,738
1,879
3,035
Transfers from (to) held to maturity, net
(16)
(1)
(105)
(31)
(94)
Loan sales
(1,889)
(1,234)
(1,893)
(2,095)
(3,312)
Loan draws (payments), net
(28)
(7)
4
—
(29)
Valuation and other adjustments
1
(1)
1
—
—
Balance at end of period
$
1,058
$
517
$
228
$
483
$
730
KeyCorp Reports Third Quarter 2024 Results
October 17, 2024
Page 23
Summary of Loan and Lease Loss Experience From Continuing Operations
(Dollars in millions)
Three months ended
Nine months ended
9/30/2024
6/30/2024
9/30/2023
9/30/2024
9/30/2023
Average loans outstanding
$
106,244
$
108,961
$
117,627
$
108,738
$
119,371
Allowance for loan and lease losses at the beginning of the period
$
1,547
$
1,542
$
1,480
$
1,508
$
1,337
Loans charged off:
Commercial and industrial
131
86
62
279
139
Real estate — commercial mortgage
7
10
1
22
15
Real estate — construction
—
—
—
—
—
Total commercial real estate loans
7
10
1
22
15
Commercial lease financing
—
6
—
6
—
Total commercial loans
138
102
63
307
154
Real estate — residential mortgage
—
1
—
2
1
Home equity loans
1
—
1
2
4
Other consumer loans
17
16
14
49
37
Credit cards
11
12
9
35
27
Total consumer loans
29
29
24
88
69
Total loans charged off
167
131
87
395
223
Recoveries:
Commercial and industrial
7
31
10
46
33
Real estate — commercial mortgage
1
1
—
2
1
Real estate — construction
—
—
—
—
—
Total commercial real estate loans
1
1
—
2
1
Commercial lease financing
—
3
1
5
4
Total commercial loans
8
35
11
53
38
Real estate — residential mortgage
1
1
1
4
3
Home equity loans
1
—
1
2
3
Other consumer loans
2
2
2
6
7
Credit cards
1
2
1
4
4
Total consumer loans
5
5
5
16
17
Total recoveries
13
40
16
69
55
Net loan charge-offs
(154)
(91)
(71)
(326)
(168)
Provision (credit) for loan and lease losses
101
96
79
312
319
Allowance for loan and lease losses at end of period
$
1,494
$
1,547
$
1,488
$
1,494
$
1,488
Liability for credit losses on lending-related commitments at beginning of period
$
286
$
281
$
291
$
296
$
225
Provision (credit) for losses on lending-related commitments
(6)
4
2
(16)
68
Other
—
1
(3)
—
(3)
Liability for credit losses on lending-related commitments at end of period (a)
$
280
$
286
$
290
$
280
$
290
Total allowance for credit losses at end of period
$
1,774
$
1,833
$
1,778
$
1,774
$
1,778
Net loan charge-offs to average total loans
.58
%
.34
%
.24
%
.40
%
.19
%
Allowance for loan and lease losses to period-end loans
1.42
1.44
1.29
1.42
1.29
Allowance for credit losses to period-end loans
1.68
1.71
1.54
1.68
1.54
Allowance for loan and lease losses to nonperforming loans
205
218
327
205
327
Allowance for credit losses to nonperforming loans
244
258
391
244
391
Discontinued operations — education lending business:
Loans charged off
$
1
$
1
$
—
$
3
$
3
Recoveries
—
1
—
1
1
Net loan charge-offs
$
(1)
$
—
$
—
$
(2)
$
(2)
(a)Included in "Accrued expense and other liabilities" on the balance sheet.
KeyCorp Reports Third Quarter 2024 Results
October 17, 2024
Page 24
Asset Quality Statistics From Continuing Operations
(Dollars in millions)
3Q24
2Q24
1Q24
4Q23
3Q23
Net loan charge-offs
$
154
$
91
$
81
$
76
$
71
Net loan charge-offs to average total loans
.58
%
.34
%
.29
%
.26
%
.24
%
Allowance for loan and lease losses
$
1,494
$
1,547
$
1,542
$
1,508
$
1,488
Allowance for credit losses (a)
1,774
1,833
1,823
1,804
1,778
Allowance for loan and lease losses to period-end loans
1.42
%
1.44
%
1.40
%
1.34
%
1.29
%
Allowance for credit losses to period-end loans
1.68
1.71
1.66
1.60
1.54
Allowance for loan and lease losses to nonperforming loans
205
218
234
263
327
Allowance for credit losses to nonperforming loans
244
258
277
314
391
Nonperforming loans at period end
$
728
$
710
$
658
$
574
$
455
Nonperforming assets at period end
741
727
674
591
471
Nonperforming loans to period-end portfolio loans
.69
%
.66
%
.60
%
.51
%
.39
%
Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets
.70
.68
.61
.52
.41
(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)
9/30/2024
6/30/2024
3/31/2024
12/31/2023
9/30/2023
Commercial and industrial
$
365
$
358
$
360
$
297
$
214
Real estate — commercial mortgage
176
173
113
100
63
Real estate — construction
—
—
—
—
—
Total commercial real estate loans
176
173
113
100
63
Commercial lease financing
—
1
1
—
1
Total commercial loans
541
532
474
397
278
Real estate — residential mortgage
87
77
79
71
72
Home equity loans
90
91
95
97
97
Other Consumer loans
4
4
4
4
4
Credit cards
6
6
6
5
4
Total consumer loans
187
178
184
177
177
Total nonperforming loans (a)
728
710
658
574
455
OREO
13
17
16
17
16
Nonperforming loans held for sale
—
—
—
—
—
Other nonperforming assets
—
—
—
—
—
Total nonperforming assets
$
741
$
727
$
674
$
591
$
471
Accruing loans past due 90 days or more
$
166
$
137
$
119
$
107
$
52
Accruing loans past due 30 through 89 days
184
282
242
222
178
Nonperforming assets from discontinued operations — education lending business
2
3
2
3
2
Nonperforming loans to period-end portfolio loans
.69
%
.66
%
.60
%
.51
%
.39
%
Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets
.70
.68
.61
.52
.41
Summary of Changes in Nonperforming Loans From Continuing Operations
(Dollars in millions)
3Q24
2Q24
1Q24
4Q23
3Q23
Balance at beginning of period
$
710
$
658
$
574
$
455
$
431
Loans placed on nonaccrual status
271
317
243
297
159
Charge-offs
(167)
(131)
(97)
(95)
(87)
Loans sold
(32)
(22)
(5)
(9)
(4)
Payments
(37)
(76)
(35)
(56)
(25)
Transfers to OREO
(1)
(1)
(2)
(2)
(3)
Loans returned to accrual status
(16)
(35)
(20)
(16)
(16)
Balance at end of period
$
728
$
710
$
658
$
574
$
455
KeyCorp Reports Third Quarter 2024 Results
October 17, 2024
Page 25
Line of Business Results
(Dollars in millions)
Change 3Q24 vs.
3Q24
2Q24
1Q24
4Q23
3Q23
2Q24
3Q23
Consumer Bank
Summary of operations
Total revenue (TE)
$
814
$
769
$
757
$
770
$
775
5.9
%
5.0
%
Provision for credit losses
52
33
(2)
5
14
57.6
271.4
Noninterest expense
649
648
704
779
676
.2
(4.0)
Net income (loss) attributable to Key
86
67
41
(11)
65
28.4
32.3
Average loans and leases
38,332
39,174
39,919
40,763
41,610
(2.1)
(7.9)
Average deposits
86,431
85,397
84,075
83,557
82,683
1.2
4.5
Net loan charge-offs
54
45
44
40
36
20.0
50.0
Net loan charge-offs to average total loans
.56
%
.46
%
.44
%
.39
%
.34
%
21.7
64.7
Nonperforming assets at period end
$
195
$
190
$
196
$
190
$
190
2.6
2.6
Return on average allocated equity
10.34
%
7.93
%
4.69
%
(1.28)
%
7.42
%
30.4
39.4
Commercial Bank
Summary of operations
Total revenue (TE)
$
868
$
770
$
798
$
804
$
809
12.7
%
7.3
%
Provision for credit losses
41
87
102
96
68
(52.9)
(39.7)
Noninterest expense
445
432
442
526
433
3.0
2.8
Net income (loss) attributable to Key
300
207
205
150
240
44.9
25.0
Average loans and leases
67,452
69,248
70,633
72,713
75,598
(2.6)
(10.8)
Average loans held for sale
998
522
840
635
1,268
91.2
(21.3)
Average deposits
58,696
57,360
56,331
58,196
56,078
2.3
4.7
Net loan charge-offs
99
64
37
35
35
54.7
182.9
Net loan charge-offs to average total loans
.58
%
.37
%
.21
%
.19
%
.18
%
56.8
222.2
Nonperforming assets at period end
$
546
$
537
$
478
$
401
$
281
1.7
94.3
Return on average allocated equity
11.98
%
8.31
%
8.24
%
5.88
%
9.11
%
44.2
31.5
TE = Taxable Equivalent
Selected Items Impact on Earnings(a)
(Dollars in millions, except per share amounts)
Pretax(b)
After-tax at marginal rate(b)(c)
Quarter to date results
Amount
Net Income
EPS(d)
Three months ended September 30, 2024
Loss on sale of securities (other income)
$
(918)
$
(737)
$
(0.77)
FDIC special assessment (other expense)(d)
6
5
—
Three months ended June 30, 2024
FDIC special assessment (other expense)(e)
(5)
(4)
—
Three months ended March 31, 2024
FDIC special assessment (other expense)(e)
(29)
(22)
(0.02)
Three months ended December 31, 2023
Efficiency related expenses(f)
(67)
(51)
(0.05)
Pension settlement (other expense)
(18)
(14)
(0.02)
FDIC special assessment (other expense)(e)
(190)
(144)
(0.15)
Three months ended September 30, 2023
No items
(a)Includes items impacting results or trends during the period but are not considered non-GAAP adjustments.
(b)Favorable (unfavorable) impact.
(c)After-tax loss on sale of securities adjusted to reflect impact of GAAP accounting for income taxes in interim periods, with related adjustments to be required in the fourth quarter of 2024.
(d)Impact to EPS reflected on a fully diluted basis.
(e)In November 2023, the FDIC issued a final rule implementing a special assessment on insured depository institutions to recover the loss to the FDIC’s deposit insurance fund (DIF) associated with protecting uninsured depositors following the 2023 closures of Silicon Valley Bank and Signature Bank. KeyCorp recorded the initial loss estimate related to the special assessment during the fourth quarter of 2023. In late February 2024, the FDIC provided updated estimates on the uninsured deposit losses and recoverable assets related to the 2023 closures of Silicon Valley Bank and Signature Bank. KeyCorp recorded the additional expense related to the revised special assessment during the first quarter of 2024. Amounts reflected for both the three-months ended June 30, 2024, and September 30, 2024, represent adjustments from initial estimates based on quarterly invoices received from the FDIC.
(f)Efficiency related expenses for the three-months ended December 31, 2023, consist primarily of $39 million of severance recorded in personnel expense and $24 million of corporate real estate related rationalization and other contract termination or renegotiation costs recorded in other expense.
Mentions · how they’re counted
| Category | Underlined | Word counter | Model’s count |
|---|---|---|---|
| AI AI, artificial intelligence, generative AI, machine learning, large language model, LLM | 0 | — | — |
| Layoffs layoffs, RIF, headcount reduction, workforce optimization, restructuring | 0 | — | — |
| Recession recession, downturn, contraction, slowdown | 0 | — | — |
| Tariffs tariff, trade war, trade barriers, trade restrictions, trade policy | 0 | — | — |
| Buybacks share repurchase, buyback program | 0 | — | — |
Underlines use the same word lists the scores use. AI, recession and tariffs follow Palanor’s word counter, so those counts match it exactly on the same text. Layoffs and buybacks use the terms the model was given. The model’s count is an estimate by meaning, not by string, so it can differ from the underlines.
Source: SEC EDGAR · public domain · Highlights by Palanor