KeyCorp Files Q3 2024 10-Q

Ticker: KEY-PL · Form: 10-Q · Filed: Nov 6, 2024 · CIK: 91576

Keycorp /New/ 10-Q Filing Summary
FieldDetail
CompanyKeycorp /New/ (KEY-PL)
Form Type10-Q
Filed DateNov 6, 2024
Risk Levellow
Pages14
Reading Time17 min
Key Dollar Amounts$1, $620 million, $61.1 billion, $2.8 b, $17.17
Sentimentneutral

Sentiment: neutral

Topics: 10-Q, financials, banking

TL;DR

KeyCorp's Q3 10-Q is in. Check financials.

AI Summary

KeyCorp filed its 10-Q for the period ending September 30, 2024. The filing details financial performance and operational updates for the third quarter. KeyCorp, headquartered in Cleveland, Ohio, is a major national commercial bank.

Why It Matters

This filing provides investors and analysts with the latest financial data and disclosures from KeyCorp, crucial for understanding the bank's performance and outlook.

Risk Assessment

Risk Level: low — This is a routine quarterly filing providing standard financial disclosures.

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 the quarter ending September 30, 2024.

When was this 10-Q filing submitted to the SEC?

This 10-Q filing was submitted to the SEC on November 6, 2024.

What is KeyCorp's primary business classification?

KeyCorp's primary business classification is National Commercial Banks, with SIC code 6021.

What was KeyCorp's former company name?

KeyCorp's former company name was SOCIETY CORP, with a date of name change on July 3, 1992.

Where is KeyCorp headquartered?

KeyCorp is headquartered at 127 Public Square, Cleveland, Ohio, 44114-1306.

Filing Stats: 4,329 words · 17 min read · ~14 pages · Grade level 12.4 · Accepted 2024-11-06 15:07:39

Key Financial Figures

Filing Documents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Page Number

Financial Statements

Item 1. Financial Statements 50 Consolidated Balance Sheets 50 Consolidated Statements of Income 51 Consolidated Statements of Comprehensive Income 52 Consolidated Statements of Changes in Equity 53 Consolidated Statements of Cash Flows 54

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) 55 Note 1. Basis of Presentation and Accounting Policies 55 Note 2. Earnings Per Common Share 55 Note 3. Loan Portfolio 56 Note 4. Asset Quality 57 Note 5. Fair Value Measurements 69 Note 6. Securities 74 Note 7. Derivatives and Hedging Activities 76 Note 8. Mortgage Servicing Assets 81 Note 9. Leases 83 Note 10. Goodwill 83 Note 11. Variable Interest Entities 84 Note 12. Income Taxes 85 Note 13. Discontinued Operations 86 Note 14. Securities Financing Activities 86 Note 15. Employee Benefits 87 Note 16. Trust Preferred Securities Issued by Unconsolidated Subsidiaries 87 Note 17. Contingent Liabilities and Guarantees 88 Note 18. Accumulated Other Comprehensive Income 90 Note 19. Shareholders' Equity 91 Note 20. Business Segment Reporting 92 Note 21. Revenue from Contracts with Customers 94 Report of Independent Registered Public Accounting Firm (PCAOB ID: 42) 95 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 Strategic developments 7 Demographics 8 Supervision and regulation 8 Results of Operations 12 Earnings overview 12 Net interest income 12 Provision for credit losses 17 Noninterest income 17 Noninterest expense 19 Income taxes 21 Business Segment Results 21 Consumer Bank 21 Commercial Bank 22 Financial Condition 23 Loans and loans held for sale 24 Securities 29 Deposits and other sources of funds 31 Capital 32 Risk Management 35 Overview 35 Market risk management 35 Liquidity risk management 39 Credit risk management 42 Operational and compliance risk management 45 GAAP to Non-GAAP Reconciliations 46 Critical Accounting Policies and Estimates 47 Accounting and Reporting Developments 49

Quantitative and Qualitative Disclosure about Market Risk

Item 3. Quantitative and Qualitative Disclosure about Market Risk 96

Controls and Procedures

Item 4. Controls and Procedures 96

OTHER INFORMATION

PART II. OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 96

Risk Factors

Item 1A. Risk Factors 96

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 97

Other Information

Item 5. Other Information 98

Exhibits

Item 6. Exhibits 99 Signature 100 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 September 30, 2024, and September 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 foreig

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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