KeyCorp Files Q2 2024 10-Q Report

Ticker: KEY-PL · Form: 10-Q · Filed: Jul 26, 2024 · CIK: 91576

Keycorp /New/ 10-Q Filing Summary
FieldDetail
CompanyKeycorp /New/ (KEY-PL)
Form Type10-Q
Filed DateJul 26, 2024
Risk Levellow
Pages14
Reading Time17 min
Key Dollar Amounts$1, $2.9 billion, $600 million, $57.6 billion, $190 m
Sentimentneutral

Sentiment: neutral

Topics: 10-Q, financials, quarterly-report

Related Tickers: KEY

TL;DR

KEY's Q2 10-Q is in. Check financials.

AI Summary

KeyCorp filed its 10-Q for the period ending June 30, 2024. The filing details financial performance and positions for the second quarter of 2024. Specific financial figures and operational details are provided within the report, which is a standard regulatory filing for public companies.

Why It Matters

This filing provides investors and analysts with KeyCorp's official financial results and disclosures for the second quarter of 2024, impacting investment decisions and market sentiment.

Risk Assessment

Risk Level: low — This is a routine quarterly financial filing (10-Q) and does not inherently present new risks.

Key Numbers

Key Players & Entities

FAQ

What is the reporting period for this 10-Q filing?

The reporting period for this 10-Q filing is for the period ending June 30, 2024.

When was this 10-Q filed with the SEC?

This 10-Q was filed on July 26, 2024.

What is KeyCorp's Central Index Key (CIK)?

KeyCorp's Central Index Key (CIK) is 0000091576.

What was KeyCorp's former company name?

KeyCorp's former company name was SOCIETY CORP.

What is KeyCorp's fiscal year end?

KeyCorp's fiscal year ends on December 31.

Filing Stats: 4,320 words · 17 min read · ~14 pages · Grade level 12.5 · Accepted 2024-07-26 14:52:04

Key Financial Figures

Filing Documents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Page Number

Financial Statements

Item 1. Financial Statements 52 Consolidated Balance Sheets 52 Consolidated Statements of Income 53 Consolidated Statements of Comprehensive Income 54 Consolidated Statements of Changes in Equity 55 Consolidated Statements of Cash Flows 56

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) 57 Note 1. Basis of Presentation and Accounting Policies 57 Note 2. Earnings Per Common Share 57 Note 3. Loan Portfolio 58 Note 4. Asset Quality 59 Note 5. Fair Value Measurements 71 Note 6. Securities 76 Note 7. Derivatives and Hedging Activities 78 Note 8. Mortgage Servicing Assets 83 Note 9. Leases 85 Note 10. Goodwill 85 Note 11. Variable Interest Entities 86 Note 12. Income Taxes 87 Note 13. Discontinued Operations 88 Note 14. Securities Financing Activities 88 Note 15. Employee Benefits 89 Note 16. Trust Preferred Securities Issued by Unconsolidated Subsidiaries 89 Note 17. Contingent Liabilities and Guarantees 90 Note 18. Accumulated Other Comprehensive Income 92 Note 19. Shareholders' Equity 93 Note 20. Business Segment Reporting 93 Note 21. Revenue from Contracts with Customers 95 Report of Independent Registered Public Accounting Firm (PCAOB ID: 42) 97 2 Table of contents

Management's Discussion & Analysis of Financial Condition & Results of Operations

Item 2. Management's Discussion & Analysis of Financial Condition & Results of Operations 4 Introduction 4 Terminology 4

Forward-looking statements

Forward-looking statements 5 Long-term financial targets 7 Strategic developments 8 Demographics 8 Supervision and regulation 9 Results of Operations 14 Earnings overview 14 Net interest income 14 Provision for credit losses 19 Noninterest income 19 Noninterest expense 21 Income taxes 23 Business Segment Results 23 Consumer Bank 23 Commercial Bank 24 Financial Condition 25 Loans and loans held for sale 26 Securities 31 Deposits and other sources of funds 33 Capital 34 Risk Management 37 Overview 37 Market risk management 37 Liquidity risk management 41 Credit risk management 44 Operational and compliance risk management 47 GAAP to Non-GAAP Reconciliations 48 Critical Accounting Policies and Estimates 49 Accounting and Reporting Developments 51

Quantitative and Qualitative Disclosure about Market Risk

Item 3. Quantitative and Qualitative Disclosure about Market Risk 98

Controls and Procedures

Item 4. Controls and Procedures 98

OTHER INFORMATION

PART II. OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 98

Risk Factors

Item 1A. Risk Factors 98

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 98

Other Information

Item 5. Other Information 99

Exhibits

Item 6. Exhibits 100 Signature 101 3 Table of contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Management's Discussion & Analysis of Financial Condition & Results of Operations

Item 2. Management's Discussion & Analysis of Financial Condition & Results of Operations Introduction This section reviews the financial condition and results of operations of KeyCorp and its subsidiaries for the quarterly periods ended June 30, 2024, and June 30, 2023. Some tables may include additional periods to comply with disclosure requirements or to illustrate trends in greater depth. When you read this discussion, you should also refer to the consolidated financial statements and related notes in this report. The page locations of specific sections and notes that we refer to are presented in the Table of Contents. References to our "2023 Form 10-K" refer to our Form 10-K for the year ended December 31, 2023, which has been filed with the SEC and is available on its website ( www.sec.gov ) and on our website ( www.key.com/ir ). Terminology Throughout this discussion, references to "Key," "we," "our," "us," and similar terms refer to the consolidated entity consisting of KeyCorp and its subsidiaries. "KeyCorp" refers solely to the parent holding company, and "KeyBank" refers solely to KeyCorp's subsidiary bank, KeyBank National Association. "KeyBank (consolidated)" refers to the consolidated entity consisting of KeyBank and its subsidiaries. We want to explain some industry-specific terms at the outset so you can better understand the discussion that follows. We use the phrase continuing operations in this document to mean all of our businesses other than our government-guaranteed and private education lending business, which are accounted for as discontinued operations . We engage in capital markets activities primarily through business conducted by our Commercial Bank segment . These activities encompass a variety of products and services. Among other things, we trade securities as a dealer, enter into derivative contracts (both to accommodate clients' financing needs and to mitigate certain risks), and conduct transactions in foreign currenci

Forward-looking Statements

Forward-looking Statements From time to time, we have made or will make 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," "will," "would," "should," "could," or other words of similar meaning. Forward-looking statements provide our current expectations or forecasts of future events, circumstances, results or aspirations. Our disclosures in this report contain forward-looking statements. We may also make forward-looking statements in other documents filed with or furnished to the SEC. In addition, we may make forward-looking statements orally to analysts, investors, representatives of the media and others. 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. In addition, no assurance 5 Table of contents can be given that any plan, initiative, projection, goal, commitment, expectation, or prospect set forth in this report can or will be achieved. Factors that could cause our actual results to differ from those described in forward-looking statements include, but are not limited to: our concentrated credit exposure in commercial and industrial loans; deterioration of commercial real estate market fundamentals; defaults by our loan clients or counterparties; adverse changes in credit quality trends; declining asset prices; geopolitical destabilization; deterioration of asset quality and an increase in credit losses; labor shortages and supply chain constraints, as well as t

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