EX-99.1 2 a1q22earningsrelease.htm EX-99.1 Document


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KEYCORP REPORTS FIRST QUARTER 2022 NET INCOME OF $420 MILLION,
OR $.45 PER DILUTED COMMON SHARE
Strong loan growth driven by consumer and commercial businesses

Record loan originations from Laurel Road

Net interest income reflects strong loan growth and liquidity deployment

Noninterest income adversely impacted by market conditions late in the quarter

Credit quality remains strong with net charge-offs to average loans of 13 basis points

    CLEVELAND, April 21, 2022 - KeyCorp (NYSE: KEY) today announced net income from continuing operations attributable to Key common shareholders of $420 million, or $.45 per diluted common share for the first quarter of 2022. This compared to $601 million, or $.64 per diluted common share, for the fourth quarter of 2021 and $591 million, or $.61 per diluted common share, for the first quarter of 2021.


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KeyCorp Reports First Quarter 2022 Profit     
April 21, 2022
Page 2

Selected Financial Highlights
Dollars in millions, except per share dataChange 1Q22 vs.
1Q224Q211Q214Q211Q21
Income (loss) from continuing operations attributable to Key common shareholders$420 $601 $591 (30.1)%(28.9)%
Income (loss) from continuing operations attributable to Key common shareholders per common share — assuming dilution
.45 .64 .61 (29.7)(26.2)
Return on average tangible common equity from continuing operations (a)
14.12 %18.69 %18.25 %N/AN/A
Return on average total assets from continuing operations.99 1.34 1.44 N/AN/A
Common Equity Tier 1 ratio (b)
9.4 9.5 9.9 N/AN/A
Book value at period end$14.43 $16.76 $16.22 (13.9)(11.0)
Net interest margin (TE) from continuing operations2.46 %2.44 %2.61 %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)March 31, 2022 ratio is estimated.
TE = Taxable Equivalent, N/A = Not Applicable

INCOME STATEMENT HIGHLIGHTS
Revenue
Dollars in millionsChange 1Q22 vs.
 1Q224Q211Q214Q211Q21
Net interest income (TE)$1,020 $1,038 $1,012 (1.7)%.8 %
Noninterest income676 909 738 (25.6)(8.4)
Total revenue$1,696 $1,947 $1,750 (12.9)%(3.1)%
TE = Taxable Equivalent
Taxable-equivalent net interest income was $1.0 billion for the first quarter of 2022 and the net interest margin was 2.46%. Compared to the first quarter of 2021, net interest income increased $8 million, while the net interest margin decreased by 15 basis points. Net interest income and the net interest margin benefited from higher earning asset balances and a favorable balance sheet mix. Net interest income and the net interest margin were negatively impacted by lower reinvestment yields, the exit of the indirect auto loan portfolio, and lower loan fees from the Paycheck Protection Program ("PPP").

Compared to the fourth quarter of 2021, taxable-equivalent net interest income decreased by $18 million and the net interest margin increased by two basis points. Net interest income was negatively impacted by two fewer days in the first quarter of 2022. Additionally, net interest income and the net interest margin benefited from a favorable earning asset mix, including the deployment of liquidity into loans and higher-yielding investments and were negatively impacted by lower loan fees related to the PPP.

Noninterest Income
Dollars in millionsChange 1Q22 vs.
1Q224Q211Q214Q211Q21
Trust and investment services income$136 $135 $133 .7 %2.3 %
Investment banking and debt placement fees163 323 162 (49.5).6 
Service charges on deposit accounts91 90 73 1.1 24.7 
Operating lease income and other leasing gains32 37 38 (13.5)(15.8)
Corporate services income90 73 64 23.3 40.6 
Cards and payments income80 86 105 (7.0)(23.8)
Corporate-owned life insurance income31 34 31 (8.8)— 
Consumer mortgage income21 25 47 (16.0)(55.3)
Commercial mortgage servicing fees36 48 34 (25.0)5.9 
Other income(4)58 51 (106.9)(107.8)
Total noninterest income$676 $909 $738 (25.6)%(8.4)%

    


KeyCorp Reports First Quarter 2022 Profit     
April 21, 2022
Page 3

    Compared to the first quarter of 2021, noninterest income decreased by $62 million. The decrease was primarily driven by other income, down $55 million, reflecting market related adjustments. Other drivers for the decrease include consumer mortgage income and cards and payments income, down $26 million and $25 million, respectively, reflecting lower gain on sale margins and lower levels of prepaid card activity. Partially offsetting the decrease was a $26 million increase in corporate services income, driven by higher derivatives trading income and an $18 million increase in service charges on deposit accounts.

Compared to the fourth quarter of 2021, noninterest income decreased by $233 million. The primary driver was investment banking and debt placement fees, which decreased $160 million, reflecting seasonality and slowing capital markets activity late in the quarter. Other income decreased $62 million, reflecting market related adjustments. Partially offsetting the decrease was a $17 million increase in corporate services income, driven by higher derivatives trading income.

Noninterest Expense
Dollars in millionsChange 1Q22 vs.
1Q224Q211Q214Q211Q21
Personnel expense$630 $674 $624 (6.5)%1.0 %
Nonpersonnel expense440 496 447 (11.3)(1.6)
Total noninterest expense$1,070 $1,170 $1,071 (8.5)%(.1)%
    Key’s noninterest expense was $1.1 billion for the first quarter of 2022, a decrease of $1 million from the year-ago period. Nonpersonnel expense decreased $7 million, reflecting a broad-based decline across several expense categories. Personnel expense increased $6 million, driven by higher salaries from merit increases and technology contract labor, partially offset by lower incentive compensation and employee benefits expense.

    Compared to the fourth quarter of 2021, noninterest expense decreased $100 million. The decrease was primarily related to a $56 million decrease in nonpersonnel expense, reflecting lower professional fees as well as lower other expense. Additionally, personnel expense decreased $44 million, primarily driven by lower incentive compensation as a result of lower investment banking and debt placement fees.

BALANCE SHEET HIGHLIGHTS
Average Loans
Dollars in millionsChange 1Q22 vs.
1Q224Q211Q214Q211Q21
Commercial and industrial (a)
$51,574 $49,510 $52,581 4.2 %(1.9)%
Other commercial loans20,556 19,743 18,848 4.1 9.1 
Total consumer loans31,632 30,144 29,299 4.9 8.0 
Total loans$103,762 $99,397 $100,728 4.4 %3.0 %
(a)Commercial and industrial average loan balances include $141 million, $141 million, and $126 million of assets from commercial credit cards at March 31, 2022, December 31, 2021, and March 31, 2021, respectively.
    
Average loans were $103.8 billion for the first quarter of 2022, an increase of $3.0 billion compared to the first quarter of 2021. Consumer loans increased $2.3 billion, reflecting strength from Key's consumer mortgage business and Laurel Road, partly offset by the sale of the indirect auto loan portfolio. Additionally, commercial loans increased by $701 million, reflecting strength in commercial mortgage real estate loans and core commercial and industrial loans, partially offset by a decline in PPP balances.

Compared to the fourth quarter of 2021, average loans increased by $4.4 billion. Commercial loans increased $2.9 billion, reflecting strength in commercial and industrial loans and commercial mortgage real estate loans, partially offset by a decline in PPP balances. Consumer loans increased $1.5 billion, driven by continued strength in Key's consumer mortgage business and record Laurel Road originations.



KeyCorp Reports First Quarter 2022 Profit     
April 21, 2022
Page 4

Average Deposits
Dollars in millionsChange 1Q22 vs.
1Q224Q211Q214Q211Q21
Non-time deposits$146,426 $146,979 $132,267 (.4)%10.7 %
Certificates of deposit ($100,000 or more)1,639 1,793 2,571 (8.6)(36.3)
Other time deposits2,098 2,233 2,902 (6.0)(27.7)
Total deposits$150,163 $151,005 $137,740 (.6)%9.0 %
Cost of total deposits.04 %.04 %.06 %N/AN/A
N/A = Not Applicable

    Average deposits totaled $150.2 billion for the first quarter of 2022, an increase of $12.4 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 fourth quarter of 2021, average deposits decreased by $842 million, driven by lower levels of commercial deposits, partly offset by seasonal retail deposit inflows.

ASSET QUALITY
Dollars in millionsChange 1Q22 vs.
1Q224Q211Q214Q211Q21
Net loan charge-offs$33 $19 $114 73.7 %(71.1)%
Net loan charge-offs to average total loans.13 %.08 %.46 %N/AN/A
Nonperforming loans at period end$439 $454 $728 (3.3)(39.7)
Nonperforming assets at period end467 489 790 (4.5)(40.9)
Allowance for loan and lease losses1,105 1,061 1,438 4.1 (23.2)
Allowance for credit losses1,271 1,221 1,616 4.1 (21.3)
Provision for credit losses83 4 (93)N/M189.2 
Allowance for loan and lease losses to nonperforming loans251.7 %233.7 %197.5 %N/AN/A
Allowance for credit losses to nonperforming loans289.5 268.9 222.0 N/AN/A
N/A = Not Applicable; N/M = Not Meaningful

    
    Key's provision for credit losses was $83 million, compared to a net benefit of $93 million in the first quarter of 2021 and provision of $4 million in the fourth quarter of 2021. The increase from prior periods reflects the uncertain economic outlook arising from the Ukraine conflict, risks associated with higher inflation, and loan growth.

    Net loan charge-offs for the first quarter of 2022 totaled $33 million, or .13% of average total loans. These results compare to $114 million, or .46%, for the first quarter of 2021 and $19 million, or .08%, for the fourth quarter of 2021. Key’s allowance for credit losses was $1.3 billion, or 1.19% of total period-end loans at March 31, 2022, compared to 1.60% at March 31, 2021, and 1.20% at December 31, 2021.

    At March 31, 2022, Key’s nonperforming loans totaled $439 million, which represented .41% of period-end portfolio loans. These results compare to .72% at March 31, 2021, and .45% at December 31, 2021. Nonperforming assets at March 31, 2022, totaled $467 million, and represented .44% of period-end portfolio loans and OREO and other nonperforming assets. These results compare to .78% at March 31, 2021, and .48% at December 31, 2021.

CAPITAL

Key’s estimated risk-based capital ratios included in the following table continued to exceed all “well-capitalized” regulatory benchmarks at March 31, 2022.


KeyCorp Reports First Quarter 2022 Profit     
April 21, 2022
Page 5

Capital Ratios
3/31/202212/31/20213/31/2021
Common Equity Tier 1 (a)
9.4 %9.5 %9.9 %
Tier 1 risk-based capital (a)
10.7 10.8 11.3 
Total risk based capital (a)
12.5 12.5 13.4 
Tangible common equity to tangible assets (b)
6.0 6.9 7.5 
Leverage (a)
8.7 8.5 8.9 
(a)March 31, 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 first quarter of 2022. As shown in the preceding table, at March 31, 2022, Key’s estimated Common Equity Tier 1 and Tier 1 risk-based capital ratios stood at 9.4% and 10.7%, respectively. Key's tangible common equity ratio was 6.0% at March 31, 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, with the full impact of the CECL standard being phased-in to regulatory capital over the next three years. On a fully phased-in basis, Key's Common Equity Tier 1 ratio would be reduced by 13 basis points.

Summary of Changes in Common Shares Outstanding
In thousandsChange 1Q22 vs.
1Q224Q211Q214Q211Q21
Shares outstanding at beginning of period928,850 930,544 975,773 (.2)%(4.8)%
Open market repurchases, repurchases under the accelerated repurchase program, and return of shares under employee compensation plans(1,707)(2,482)(9,277)(31.2)(81.6)
Shares issued under employee compensation plans (net of cancellations)5,255 788 6,091 566.9 (13.7)
Shares outstanding at end of period932,398 928,850 972,587 .4 %(4.1)%
N/M = Not Meaningful
    
    During the first 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 First Quarter 2022 Profit     
April 21, 2022
Page 6

Major Business Segments
Dollars in millionsChange 1Q22 vs.
1Q224Q211Q214Q211Q21
Revenue from continuing operations (TE)
Consumer Bank$799 $839 $864 (4.8)%(7.5)%
Commercial Bank810 1,028 858 (21.2)(5.6)
Other (a)
87 80 28 8.7 210.7 
Total$1,696 $1,947 $1,750 (12.9)%(3.1)%
Income (loss) from continuing operations attributable to Key
Consumer Bank$70 $161 $217 (56.5)%(67.7)%
Commercial Bank283 449 383 (37.0)(26.1)
Other (a)
94 17 18 452.9 422.2
Total$447 $627 $618 (28.7)%(27.7)%
(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, N/M = Not Meaningful


Consumer Bank
Dollars in millionsChange 1Q22 vs.
1Q224Q211Q214Q211Q21
Summary of operations
Net interest income (TE)$543 $569 $607 (4.6)%(10.5)%
Noninterest income256 270 257 (5.2)(.4)
Total revenue (TE)799 839 864 (4.8)(7.5)
Provision for credit losses43 14 (23)207.1 287.0 
Noninterest expense663 613 601 8.2 10.3 
Income (loss) before income taxes (TE)93 212 286 (56.1)(67.5)
Allocated income taxes (benefit) and TE adjustments23 51 69 (54.9)(66.7)
Net income (loss) attributable to Key$70 $161 $217 (56.5)%(67.7)%
Average balances
Loans and leases$38,637 $37,792 $39,249 2.2 %(1.6)%
Total assets41,814 41,024 42,476 1.9 (1.6)
Deposits91,468 90,271 85,033 1.3 7.6 
Assets under management at period end$53,707 $55,806 $48,288 (3.8)%11.2 %
TE = Taxable Equivalent




KeyCorp Reports First Quarter 2022 Profit     
April 21, 2022
Page 7

Additional Consumer Bank Data
Dollars in millionsChange 1Q22 vs.
1Q224Q211Q214Q211Q21
Noninterest income
Trust and investment services income$106 $106 $101 — %5.0 %
Service charges on deposit accounts54 55 39 (1.8)38.5 
Cards and payments income57 64 54 (10.9)5.6 
Consumer mortgage income21 26 47 (19.2)(55.3)
Other noninterest income18 19 16 (5.3)12.5 
Total noninterest income$256 $270 $257 (5.2)%(.4)%
Average deposit balances
NOW and money market deposit accounts$58,625 $57,197 $54,684 2.5 %7.2 %
Savings deposits7,233 6,951 5,878 4.1 23.1 
Certificates of deposit ($100,000 or more)1,520 1,669 2,424 (8.9)(37.3)
Other time deposits2,090 2,227 2,888 (6.2)(27.6)
Noninterest-bearing deposits22,000 22,227 19,159 (1.0)14.8 
Total deposits$91,468 $90,271 $85,033 1.3 %7.6 %
Other data
Branches993 999 1,068 
Automated teller machines1,308 1,317 1,368 


Consumer Bank Summary of Operations (1Q22 vs. 1Q21)

•Net income attributable to Key of $70 million for the first quarter of 2022, compared to $217 million for the year-ago quarter
•Taxable-equivalent net interest income decreased by $64 million, compared to the first 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 decreased $612 million, or 1.6%, from the first quarter of 2021, driven by the sale of the indirect auto loan portfolio, partially offset by growth in consumer mortgage and Laurel Road
•Average deposits increased $6.4 billion, or 7.6%, from the first quarter of 2021, driven by relationship growth and higher retail deposits
•Provision for credit losses increased $66 million, compared to the first quarter of 2021, driven by loan growth and uncertainty in the economic environment
•Noninterest income decreased $1 million, or 0.4%, from the year-ago quarter, driven by a decrease in consumer mortgage income, reflecting lower gain on sale margins. The decrease was partially offset by an increase in service charges on deposit accounts and trust and investment services income
•Noninterest expense increased $62 million, or 10.3%, from the year-ago quarter, driven by an increased level of digital investments and an increase in employee compensation and benefits related expenses



KeyCorp Reports First Quarter 2022 Profit     
April 21, 2022
Page 8

Commercial Bank
Dollars in millionsChange 1Q22 vs.
1Q224Q211Q214Q211Q21
Summary of operations
Net interest income (TE)$415 $417 $411 (.5)%1.0 %
Noninterest income395 611 447 (35.4)(11.6)
Total revenue (TE)810 1,028 858 (21.2)(5.6)
Provision for credit losses41 (12)(67)441.7 161.2 
Noninterest expense417 501 443 (16.8)(5.9)
Income (loss) before income taxes (TE)352 539 482 (34.7)(27.0)
Allocated income taxes and TE adjustments69 90 99 (23.3)(30.3)
Net income (loss) attributable to Key$283 $449 $383 (37.0)%(26.1)%
Average balances
Loans and leases$64,701 $61,127 $61,221 5.8 %5.7 %
Loans held for sale1,323 1,962 1,237 (32.6)7.0 
Total assets74,860 71,629 70,448 4.5 6.3 
Deposits57,289 59,537 51,894 (3.8)%10.4 %
TE = Taxable Equivalent, N/M = Not Meaningful

Additional Commercial Bank Data
Dollars in millionsChange 1Q22 vs.
1Q224Q211Q214Q211Q21
Noninterest income
Trust and investment services income$30 $29 $32 3.4 %(6.3)%
Investment banking and debt placement fees163 322 162 (49.4)0.6 
Operating lease income and other leasing gains32 36 38 (11.1)(15.8)
Corporate services income82 65 56 26.2 46.4 
Service charges on deposit accounts36 34 33 5.9 9.1 
Cards and payments income22 26 52 (15.4)(57.7)
Payments and services income140 125 141 12.0 (0.7)
Commercial mortgage servicing fees36 47 34 (23.4)5.9 
Other noninterest income(6)52 40 (111.5)(115.0)
Total noninterest income$395 $611 $447 (35.4)%(11.6)%
N/M = Not Meaningful

Commercial Bank Summary of Operations (1Q22 vs. 1Q21)

•Net income attributable to Key of $283 million for the first quarter of 2022, compared to $383 million for the year-ago quarter
•Taxable-equivalent net interest income increased by $4 million, compared to the first quarter of 2021, reflecting core loan growth in commercial and industrial and commercial mortgage real estate loans, partially offset by lower loan fees from the PPP
•Average loan and lease balances increased $3.5 billion, compared to the first quarter of 2021, reflecting growth in core commercial and industrial and commercial mortgage real estate loans, partially offset by a decline in PPP balances
•Average deposit balances increased $5.4 billion, or 10.4%, compared to the first quarter of 2021, driven by growth in targeted relationships and higher commercial escrow deposits
•Provision for credit losses increased $108 million, compared to the first quarter of 2021, driven by uncertainty in the economic environment
•Noninterest income decreased $52 million from the year-ago quarter, largely driven by lower cards and payments income from lower prepaid card activity and other income reflecting market related adjustments
•Noninterest expense decreased by $26 million, or 5.9%, from the first quarter of 2021, driven by lower operating lease expense and lower incentive compensation


KeyCorp Reports First Quarter 2022 Profit     
April 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 $181.2 billion at March 31, 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 First Quarter 2022 Profit     
April 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. KaiserTracy Pesho
216.689.4545216.471.2825
Melanie_S_Kaiser@KeyBank.comTracy_Pesho@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 April 21, 2022. A replay of the call will be available through April 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 First Quarter 2022 Profit     
April 21, 2022
Page 11




KeyCorp
First 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 First Quarter 2022 Profit     
April 21, 2022
Page 12

Financial Highlights
(Dollars in millions, except per share amounts)
Three months ended
3/31/202212/31/20213/31/2021
Summary of operations
Net interest income (TE)$1,020 $1,038 $1,012 
Noninterest income676 909 738 
Total revenue (TE)
1,696 1,947 1,750 
Provision for credit losses83 4 (93)
Noninterest expense1,070 1,170 1,071 
Income (loss) from continuing operations attributable to Key447 627 618 
Income (loss) from discontinued operations, net of taxes1 2 4 
Net income (loss) attributable to Key448 629 622 
Income (loss) from continuing operations attributable to Key common shareholders420 601 591 
Income (loss) from discontinued operations, net of taxes1 2 4 
Net income (loss) attributable to Key common shareholders421 603 595 
Per common share
Income (loss) from continuing operations attributable to Key common shareholders$.45 $.65 $.61 
Income (loss) from discontinued operations, net of taxes— — — 
Net income (loss) attributable to Key common shareholders (a)
.46 .65 .62 
Income (loss) from continuing operations attributable to Key common shareholders — assuming dilution.45 .64 .61 
Income (loss) from discontinued operations, net of taxes — assuming dilution— — — 
Net income (loss) attributable to Key common shareholders — assuming dilution (a)
.45 .64 .61 
Cash dividends declared.195 .195 .185 
Book value at period end14.43 16.76 16.22 
Tangible book value at period end11.41 13.72 13.30 
Market price at period end22.38 23.13 19.98 
Performance ratios
From continuing operations:
Return on average total assets.99 %1.34 %1.44 %
Return on average common equity11.45 15.31 14.98 
Return on average tangible common equity (b)
14.12 18.69 18.25 
Net interest margin (TE)2.46 2.44 2.61 
Cash efficiency ratio (b)
62.4 59.4 60.3 
From consolidated operations:
Return on average total assets.99 %1.35 %1.45 %
Return on average common equity11.47 15.36 15.08 
Return on average tangible common equity (b)
14.15 18.75 18.37 
Net interest margin (TE)2.46 2.44 2.60 
Loan to deposit (c)
72.9 68.9 73.1 
Capital ratios at period end
Key shareholders’ equity to assets8.5 %9.4 %10.0 %
Key common shareholders’ equity to assets7.4 8.4 9.0 
Tangible common equity to tangible assets (b)
6.0 6.9 7.5 
Common Equity Tier 1 (d)
9.4 9.5 9.9 
Tier 1 risk-based capital (d)
10.7 10.8 11.3 
Total risk-based capital (d)
12.5 12.5 13.4 
Leverage (d)
8.7 8.5 8.9 
Asset quality — from continuing operations
Net loan charge-offs
$33 $19 $114 
Net loan charge-offs to average loans
.13 %.08 %.46 %
Allowance for loan and lease losses
$1,105 $1,061 $1,438 
Allowance for credit losses
1,271 1,221 1,616 
Allowance for loan and lease losses to period-end loans
1.04 %1.04 %1.42 %
Allowance for credit losses to period-end loans
1.19 1.20 1.60 
Allowance for loan and lease losses to nonperforming loans251.7 233.7 197.5 
Allowance for credit losses to nonperforming loans289.5 268.9 222.0 
Nonperforming loans at period-end$439 $454 $728 
Nonperforming assets at period-end467 489 790 
Nonperforming loans to period-end portfolio loans.41 %.45 %.72 %
Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets.44 .48 .78 
Trust assets
Assets under management$53,707 $55,806 $48,288 
Other data
Average full-time equivalent employees
17,110 16,797 17,086 
Branches
993 999 1,068 
Taxable-equivalent adjustment
$6 $5 $7 


KeyCorp Reports First Quarter 2022 Profit     
April 21, 2022
Page 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)March 31, 2022, ratio is estimated and reflects Key's election to adopt the CECL optional transition provision.


KeyCorp Reports First Quarter 2022 Profit     
April 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 ended
3/31/202212/31/20213/31/2021
Tangible common equity to tangible assets at period-end
Key shareholders’ equity (GAAP)$15,308 $17,423 $17,634 
Less: Intangible assets (a)
2,810 2,820 2,842 
Preferred Stock (b)
1,856 1,856 1,856 
Tangible common equity (non-GAAP)$10,642 $12,747 $12,936 
Total assets (GAAP)$181,221 $186,346 $176,203 
Less: Intangible assets (a)
2,810 2,820 2,842 
Tangible assets (non-GAAP)$178,411 $183,526 $173,361 
Tangible common equity to tangible assets ratio (non-GAAP)5.96 %6.95 %7.46 %
Pre-provision net revenue
Net interest income (GAAP)$1,014 $1,033 $1,005 
Plus: Taxable-equivalent adjustment6 5 7 
Noninterest income676 909 738 
Less: Noninterest expense1,070 1,170 1,071 
Pre-provision net revenue from continuing operations (non-GAAP)$626 $777 $679 
Average tangible common equity
Average Key shareholders' equity (GAAP)$16,780 $17,471 $17,769 
Less: Intangible assets (average) (c)
2,814 2,814 2,844 
Preferred stock (average)1,900 1,900 1,900 
Average tangible common equity (non-GAAP)$12,066 $12,757 $13,025 
Return on average tangible common equity from continuing operations
Net income (loss) from continuing operations attributable to Key common shareholders (GAAP)$420 $601 $591 
Average tangible common equity (non-GAAP)12,066 12,757 13,025 
Return on average tangible common equity from continuing operations (non-GAAP)14.12 %18.69 %18.25 %
Return on average tangible common equity consolidated
Net income (loss) attributable to Key common shareholders (GAAP)$421 $603 $595 
Average tangible common equity (non-GAAP)12,066 12,757 13,025 
Return on average tangible common equity consolidated (non-GAAP)14.15 %18.75 %18.37 %






KeyCorp Reports First Quarter 2022 Profit     
April 21, 2022
Page 15

GAAP to Non-GAAP Reconciliations (continued)
(Dollars in millions)
Three months ended
3/31/202212/31/20213/31/2021
Cash efficiency ratio
Noninterest expense (GAAP)$1,070 $1,170 $1,071 
Less: Intangible asset amortization11 14 15 
Adjusted noninterest expense (non-GAAP)$1,059 $1,156 $1,056 
Net interest income (GAAP)$1,014 $1,033 $1,005 
Plus: Taxable-equivalent adjustment6 5 7 
Noninterest income676 909 738 
Total taxable-equivalent revenue (non-GAAP)$1,696 $1,947 $1,750 
Cash efficiency ratio (non-GAAP)62.4 %59.4 %60.3 %
(a)For the three months ended March 31, 2022, December 31, 2021, and March 31, 2021, intangible assets exclude $2 million, $3 million, and $4 million, respectively, of period-end purchased credit card receivables.
(b)Net of capital surplus.
(c)For the three months ended March 31, 2022, December 31, 2021, and March 31, 2021, average intangible assets exclude $3 million, $3 million, and $4 million, respectively, of average purchased credit card receivables.
GAAP = U.S. generally accepted accounting principles



KeyCorp Reports First Quarter 2022 Profit     
April 21, 2022
Page 16

Consolidated Balance Sheets
(Dollars in millions)
3/31/202212/31/20213/31/2021
Assets
Loans$106,600 $101,854 $100,926 
Loans held for sale1,170 2,729 2,296 
Securities available for sale43,681 45,364 33,923 
Held-to-maturity securities6,871 7,539 6,857 
Trading account assets848 701 811 
Short-term investments3,881 11,010 15,376 
Other investments722 639 621 
Total earning assets163,773 169,836 160,810 
Allowance for loan and lease losses(1,105)(1,061)(1,438)
Cash and due from banks684 913 938 
Premises and equipment647 681 737 
Goodwill2,694 2,693 2,673 
Other intangible assets118 130 173 
Corporate-owned life insurance4,340 4,327 4,296 
Accrued income and other assets9,544 8,265 7,347 
Discontinued assets526 562 667 
Total assets$181,221 $186,346 $176,203 
Liabilities
Deposits in domestic offices:
NOW and money market deposit accounts$86,829 $89,207 $82,777 
Savings deposits7,840 7,503 6,655 
Certificates of deposit ($100,000 or more)1,533 1,705 2,437 
Other time deposits2,037 2,153 2,782 
Total interest-bearing deposits98,239 100,568 94,651 
Noninterest-bearing deposits50,424 52,004 47,532 
Total deposits148,663 152,572 142,183 
Federal funds purchased and securities sold under repurchase agreements 599 173 281 
Bank notes and other short-term borrowings2,222 588 744 
Accrued expense and other liabilities3,615 3,548 2,862 
Long-term debt10,814 12,042 12,499 
Total liabilities165,913 168,923 158,569 
Equity
Preferred stock1,900 1,900 1,900 
Common shares1,257 1,257 1,257 
Capital surplus6,214 6,278 6,213 
Retained earnings14,793 14,553 13,166 
Treasury stock, at cost(5,927)(5,979)(5,005)
Accumulated other comprehensive income (loss)(2,929)(586)103 
Key shareholders’ equity15,308 17,423 17,634 
Total liabilities and equity$181,221 $186,346 $176,203 
Common shares outstanding (000)932,398 928,850 972,587 





KeyCorp Reports First Quarter 2022 Profit     
April 21, 2022
Page 17

Consolidated Statements of Income
(Dollars in millions, except per share amounts)
Three months ended
3/31/202212/31/20213/31/2021
Interest income
Loans$837 $873 $889 
Loans held for sale12 15 11 
Securities available for sale173 148 130 
Held-to-maturity securities46 52 45 
Trading account assets6 5 5 
Short-term investments4 8 5 
Other investments2 2 2 
Total interest income1,080 1,103 1,087 
Interest expense
Deposits14 15 21 
Federal funds purchased and securities sold under repurchase agreements— — — 
Bank notes and other short-term borrowings3 2 1 
Long-term debt49 53 60 
Total interest expense66 70 82 
Net interest income1,014 1,033 1,005 
Provision for credit losses83 4 (93)
Net interest income after provision for credit losses931 1,029 1,098 
Noninterest income
Trust and investment services income136 135 133 
Investment banking and debt placement fees163 323 162 
Service charges on deposit accounts91 90 73 
Operating lease income and other leasing gains32 37 38 
Corporate services income90 73 64 
Cards and payments income80 86 105 
Corporate-owned life insurance income31 34 31 
Consumer mortgage income21 25 47 
Commercial mortgage servicing fees36 48 34 
Other income(4)58 51 
Total noninterest income676 909 738 
Noninterest expense
Personnel630 674 624 
Net occupancy73 75 76 
Computer processing77 73 73 
Business services and professional fees53 70 50 
Equipment23 25 25 
Operating lease expense28 31 34 
Marketing28 37 26 
Other expense158 185 163 
Total noninterest expense1,070 1,170 1,071 
Income (loss) from continuing operations before income taxes537 768 765 
Income taxes90 141 147 
Income (loss) from continuing operations447 627 618 
Income (loss) from discontinued operations, net of taxes1 2 4 
Net income (loss)448 629 622 
Less: Net income (loss) attributable to noncontrolling interests— — — 
Net income (loss) attributable to Key$448 $629 $622 
Income (loss) from continuing operations attributable to Key common shareholders$420 $601 $591 
Net income (loss) attributable to Key common shareholders421 603 595 
Per common share
Income (loss) from continuing operations attributable to Key common shareholders$.45 $.65 $.61 
Income (loss) from discontinued operations, net of taxes— — — 
Net income (loss) attributable to Key common shareholders (a)
.46 .65 .62 
Per common share — assuming dilution
Income (loss) from continuing operations attributable to Key common shareholders$.45 $.64 $.61 
Income (loss) from discontinued operations, net of taxes— — — 
Net income (loss) attributable to Key common shareholders (a)
.45 .64 .61 
Cash dividends declared per common share$.195 $.195 $.185 
Weighted-average common shares outstanding (000)922,941 922,970 964,878 
Effect of common share options and other stock awards10,692 11,758 9,419 
Weighted-average common shares and potential common shares outstanding (000) (b)
933,634 934,729 974,297 
(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 First Quarter 2022 Profit     
April 21, 2022
Page 18

Consolidated Average Balance Sheets, and Net Interest Income and Yields/Rates From Continuing Operations
(Dollars in millions)
First Quarter 2022Fourth Quarter 2021First 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)
$51,574 $410 3.22 %$49,510 $447 3.58 %$52,581 $453 3.48 %
Real estate — commercial mortgage14,587 121 3.37 13,671 121 3.51 12,658 114 3.67 
Real estate — construction2,027 17 3.37 2,119 19 3.50 2,048 19 3.75 
Commercial lease financing3,942 24 2.41 3,953 26 2.57 4,142 31 2.99 
Total commercial loans72,130 572 3.21 69,253 613 3.51 71,429 617 3.50 
Real estate — residential mortgage16,309 112 2.75 15,017 102 2.72 9,699 76 3.12 
Home equity loans8,345 74 3.61 8,603 79 3.64 9,282 85 3.73 
Consumer direct loans5,954 61 4.16 5,509 60 4.33 4,817 56 4.72 
Credit cards932 24 10.36 941 24 10.13 933 24 10.45 
Consumer indirect loans92 — — 74 — — 4,568 37 3.30 
Total consumer loans31,632 271 3.45 30,144 265 3.49 29,299 278 3.84 
Total loans103,762 843 3.28 99,397 878 3.50 100,728 895 3.60 
Loans held for sale1,485 12 3.32 2,202 15 2.83 1,531 11 2.89 
Securities available for sale (b), (e)
44,923 173 1.50 42,329 148 1.39 30,039 130 1.76 
Held-to-maturity securities (b)
7,188 46 2.54 7,991 52 2.61 7,188 46 2.53 
Trading account assets842 6 2.74 853 5 2.48 848 5 2.15 
Short-term investments7,323 4 .25 15,505 8 .20 16,510 5 .13 
Other investments (e)
651 2 1.26 634 2 1.15 614 2 1.40 
Total earning assets166,174 1,086 2.62 168,911 1,108 2.60 157,458 1,094 2.81 
Allowance for loan and lease losses(1,056)(1,081)(1,623)
Accrued income and other assets17,471 17,133 16,398 
Discontinued assets539 574 686 
Total assets$183,128 $185,537 $172,919 
Liabilities
NOW and money market deposit accounts$88,515 $11 .05 $88,110 $11 .05 $81,439 $10 .05 
Savings deposits7,599 — .01 7,375 — .01 6,203 1 .03 
Certificates of deposit ($100,000 or more)1,639 2 .44 1,793 2 .53 2,571 6 .96 
Other time deposits2,098 1 .15 2,233 2 .21 2,902 4 .57 
Total interest-bearing deposits99,851 14 .06 99,511 15 .06 93,115 21 .09 
Federal funds purchased and securities sold under repurchase agreements287 — .13 230 — .02 243 — .04 
Bank notes and other short-term borrowings705 3 1.94 789 2 1.45 878 1 .64 
Long-term debt (f), (g)
10,830 49 1.79 12,159 53 1.74 12,831 60 1.93 
Total interest-bearing liabilities111,673 66 .24 112,689 70 .25 107,067 82 .31 
Noninterest-bearing deposits50,312 51,494 44,625 
Accrued expense and other liabilities3,824 3,309 2,772 
Discontinued liabilities (g)
539 574 686 
Total liabilities$166,348 $168,066 $155,150 
Equity
Key shareholders’ equity$16,780 $17,471 $17,769 
Noncontrolling interests— — — 
Total equity16,780 17,471 17,769 
Total liabilities and equity$183,128 $185,537 $172,919 
Interest rate spread (TE)2.38 %2.36 %2.50 %
Net interest income (TE) and net interest margin (TE)$1,020 2.46 %$1,038 2.44 %$1,012 2.61 %
TE adjustment (b)
657
Net interest income, GAAP basis$1,014 $1,033 $1,005 
(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 March 31, 2022, December 31, 2021, and March 31, 2021.
(c)For purposes of these computations, nonaccrual loans are included in average loan balances.
(d)Commercial and industrial average balances include $141 million, $141 million, and $126 million of assets from commercial credit cards for the three months ended March 31, 2022, December 31, 2021, and March 31, 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 First Quarter 2022 Profit     
April 21, 2022
Page 19

Noninterest Expense
(Dollars in millions)
Three months ended
3/31/202212/31/20213/31/2021
Personnel (a)
$630 $674 $624 
Net occupancy73 75 76 
Computer processing77 73 73 
Business services and professional fees53 70 50 
Equipment23 25 25 
Operating lease expense28 31 34 
Marketing28 37 26 
Other expense158 185 163 
Total noninterest expense$1,070 $1,170 $1,071 
Average full-time equivalent employees (b)
17,110 16,797 17,086 
(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
3/31/202212/31/20213/31/2021
Salaries and contract labor$348 $342 $320 
Incentive and stock-based compensation183 243 196 
Employee benefits97 89 107 
Severance2 — 1 
Total personnel expense$630 $674 $624 



KeyCorp Reports First Quarter 2022 Profit     
April 21, 2022
Page 20

Loan Composition
(Dollars in millions)
Percent change 3/31/2022 vs
3/31/202212/31/20213/31/202112/31/20213/31/2021
Commercial and industrial (a)
$52,815 $50,525 $52,486 4.5 %.6 %
Commercial real estate:
Commercial mortgage15,124 14,244 12,702 6.2 19.1 
Construction2,065 1,996 2,122 3.5 (2.7)
Total commercial real estate loans17,189 16,240 14,824 5.8 16.0 
Commercial lease financing (b)
3,916 4,071 4,104 (3.8)(4.6)
Total commercial loans73,920 70,836 71,414 4.4 3.5 
Residential — prime loans:
Real estate — residential mortgage17,181 15,756 10,300 9.0 66.8 
Home equity loans8,258 8,467 9,158 (2.5)(9.8)
Total residential — prime loans25,439 24,223 19,458 5.0 30.7 
Consumer direct loans6,249 5,753 4,862 8.6 28.5 
Credit cards930 972 909 (4.3)2.3 
Consumer indirect loans62 70 4,283 (11.4)(98.6)
Total consumer loans32,680 31,018 29,512 5.4 10.7 
Total loans (c), (d)
$106,600 $101,854 $100,926 4.7 %5.6 %
(a)Loan balances include $147 million, $139 million, and $126 million of commercial credit card balances at March 31, 2022, December 31, 2021, and March 31, 2021, respectively.
(b)Commercial lease financing includes receivables held as collateral for a secured borrowing of $14 million, $16 million, and $21 million at March 31, 2022, December 31, 2021, and March 31, 2021, respectively. Principal reductions are based on the cash payments received from these related receivables.
(c)Total loans exclude loans of $531 million at March 31, 2022, $567 million at December 31, 2021, and $675 million at March 31, 2021, related to the discontinued operations of the education lending business.
(d)Accrued interest of $193 million, $198 million, and $242 million at March 31, 2022, December 31, 2021, and March 31, 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)
Percent change 3/31/2022 vs
3/31/202212/31/20213/31/202112/31/20213/31/2021
Commercial and industrial$216 $1,438 $1,175 (85.0)%(81.6)%
Real estate — commercial mortgage819 1,010 837 (18.9)(2.2)
Real estate — construction21 — — N/MN/M
Real estate — residential mortgage114 281 236 (59.4)(51.7)
Consumer direct loans— — 48 N/MN/M
Total loans held for sale$1,170 $2,729 $2,296 (57.1)%(49.0)%
N/M = Not Meaningful
Summary of Changes in Loans Held for Sale
(Dollars in millions)
1Q224Q213Q212Q211Q21
Balance at beginning of period$2,729 $1,805 $1,537 $2,296 $1,583 
New originations2,724 5,704 3,328 3,573 4,010 
Transfers from (to) held to maturity, net— (1)3,305 (71)83 
Loan sales(4,269)(4,742)(6,405)(4,195)(3,303)
Loan draws (payments), net(12)(12)8 (27)(73)
Valuation and other adjustments(2)(25)32 (39)(4)
Balance at end of period$1,170 $2,729 $1,805 $1,537 $2,296 




KeyCorp Reports First Quarter 2022 Profit     
April 21, 2022
Page 21

Summary of Loan and Lease Loss Experience From Continuing Operations
(Dollars in millions)
Three months ended
3/31/202212/31/20213/31/2021
Average loans outstanding$103,762 $99,397 $100,728 
Allowance for loan and lease losses at the beginning of the period1,061 1,084 1,626 
Loans charged off:
Commercial and industrial30 33 73 
Real estate — commercial mortgage4 1 35 
Real estate — construction— — — 
Total commercial real estate loans4 1 35 
Commercial lease financing2 1 4 
Total commercial loans36 35 112 
Real estate — residential mortgage(1)(1)— 
Home equity loans1 2 2 
Consumer direct loans7 7 8 
Credit cards7 6 6 
Consumer indirect loans1 1 7 
Total consumer loans15 15 23 
Total loans charged off51 50 135 
Recoveries:
Commercial and industrial11 23 8 
Real estate — commercial mortgage1 1 1 
Real estate — construction— — — 
Total commercial real estate loans1 1 1 
Commercial lease financing— — 1 
Total commercial loans12 24 10 
Real estate — residential mortgage— 1 1 
Home equity loans1 1 1 
Consumer direct loans2 2 2 
Credit cards2 2 2 
Consumer indirect loans1 1 5 
Total consumer loans6 7 11 
Total recoveries18 31 21 
Net loan charge-offs(33)(19)(114)
Provision (credit) for loan and lease losses77 (4)(74)
Allowance for loan and lease losses at end of period$1,105 $1,061 $1,438 
Liability for credit losses on lending-related commitments at beginning of period160 152 197 
Provision (credit) for losses on lending-related commitments6 8 (19)
Liability for credit losses on lending-related commitments at end of period (a)
$166 $160 $178 
Total allowance for credit losses at end of period$1,271 $1,221 $1,616 
Net loan charge-offs to average total loans.13 %.08 %.46 %
Allowance for loan and lease losses to period-end loans1.04 1.04 1.42 
Allowance for credit losses to period-end loans1.19 1.20 1.60 
Allowance for loan and lease losses to nonperforming loans251.7 233.7 197.5 
Allowance for credit losses to nonperforming loans289.5 268.9 222.0 
Discontinued operations — education lending business:
Loans charged off$2 1 $1 
Recoveries— — 1 
Net loan charge-offs$(2)$(1)$— 
(a)Included in "Accrued expense and other liabilities" on the balance sheet.


KeyCorp Reports First Quarter 2022 Profit     
April 21, 2022
Page 22

Asset Quality Statistics From Continuing Operations
(Dollars in millions)
1Q224Q213Q212Q211Q21
Net loan charge-offs$33 $19 $29 $22 $114 
Net loan charge-offs to average total loans.13 %.08 %.11 %.09 %.46 %
Allowance for loan and lease losses$1,105 $1,061 $1,084 $1,220 $1,438 
Allowance for credit losses (a)
1,271 1,221 1,236 1,372 1,616 
Allowance for loan and lease losses to period-end loans1.04 %1.04 %1.10 %1.21 %1.42 %
Allowance for credit losses to period-end loans1.19 1.20 1.25 1.36 1.60 
Allowance for loan and lease losses to nonperforming loans251.7 233.7 195.7 175.8 197.5 
Allowance for credit losses to nonperforming loans289.5 268.9 223.1 197.7 222.0 
Nonperforming loans at period end$439 $454 $554 $694 $728 
Nonperforming assets at period end467 489 599 738 790 
Nonperforming loans to period-end portfolio loans.41 %.45 %.56 %.69 %.72 %
Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets
.44 .48 .61 .73 .78 
(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)
3/31/202212/31/20219/30/20216/30/20213/31/2021
Commercial and industrial$186 $191 $253 $355 $387 
Real estate — commercial mortgage40 44 49 66 66 
Real estate — construction— — — — — 
Total commercial real estate loans40 44 49 66 66 
Commercial lease financing3 4 5 7 8 
Total commercial loans229 239 307 428 461 
Real estate — residential mortgage73 72 93 99 95 
Home equity loans129 135 146 146 148 
Consumer direct loans4 4 4 4 5 
Credit cards3 3 3 3 3 
Consumer indirect loans1 1 1 14 16 
Total consumer loans210 215 247 266 267 
Total nonperforming loans439 454 554 694 728 
OREO8 8 8 9 12 
Nonperforming loans held for sale20 24 35 32 47 
Other nonperforming assets— 3 2 3 3 
Total nonperforming assets$467 $489 $599 $738 $790 
Accruing loans past due 90 days or more55 68 82 74 92 
Accruing loans past due 30 through 89 days122 165 164 190 191 
Restructured loans — accruing and nonaccruing (a)
219 220 270 334 376 
Restructured loans included in nonperforming loans (a)
98 99 146 177 192 
Nonperforming assets from discontinued operations — education lending business 4 4 4 5 5 
Nonperforming loans to period-end portfolio loans.41 %.45 %.56 %.69 %.72 %
Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets
.44 .48 .61 .73 .78 
(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)
1Q224Q213Q212Q211Q21
Balance at beginning of period$454 $554 $694 $728 $785 
Loans placed on nonaccrual status87 116 116 186 196 
Charge-offs(50)(51)(66)(74)(135)
Loans sold— (38)(17)(10)(13)
Payments(27)(68)(136)(92)(37)
Transfers to OREO(1)(1)(1)— (3)
Transfers to nonperforming loans held for sale— — — — — 
Loans returned to accrual status(24)(58)(36)(44)(65)
Balance at end of period$439 $454 $554 $694 $728 


KeyCorp Reports First Quarter 2022 Profit     
April 21, 2022
Page 23

Line of Business Results
(Dollars in millions)
Percentage change 1Q22 vs.
1Q224Q213Q212Q211Q214Q211Q21
Consumer Bank
Summary of operations
Total revenue (TE)$799 $839 $870 $852 $864 (4.8)%(7.5)%
Provision for credit losses43 14 (38)(70)(23)207.1 287.0 
Noninterest expense663 613 591 584 601 8.2 10.3 
Net income (loss) attributable to Key70 161 241 257 217 (56.5)(67.7)
Average loans and leases38,637 37,792 39,796 40,598 39,249 2.2 (1.6)
Average deposits91,468 90,271 89,156 88,412 85,033 1.3 7.6 
Net loan charge-offs22 22 35 34 36 — (38.9)
Net loan charge-offs to average total loans.23 %.23 %.35 %.34 %.37 %— (37.8)
Nonperforming assets at period end$217 $222 $254 $274 $276 (2.3)(21.4)
Return on average allocated equity7.91 %18.05 %25.81 %28.53 %25.74 %(56.2)(69.3)
Commercial Bank
Summary of operations
Total revenue (TE)$810 $1,028 $886 $871 $858 (21.2)%(5.6)%
Provision for credit losses41 (12)(69)(131)(67)441.7 161.2 
Noninterest expense417 501 470 451 443 (16.8)(5.9)
Net income (loss) attributable to Key283 449 381 432 383 (37.0)(26.1)
Average loans and leases64,701 61,127 59,914 59,953 61,221 5.8 5.7 
Average loans held for sale1,323 1,962 1,190 1,341 1,237 (32.6)7.0 
Average deposits57,289 59,537 56,522 54,814 51,894 (3.8)10.4 
Net loan charge-offs11 — (6)9 78 N/M(85.9)
Net loan charge-offs to average total loans.07 %— %(.04)%.06 %.52 %N/M(86.5)
Nonperforming assets at period end$250 $267 $345 $464 $514 (6.4)(51.4)
Return on average allocated equity13.21 %21.54 %18.54 %20.69 %17.41 %(38.7)(24.1)
TE = Taxable Equivalent, N/A = Not Applicable, N/M = Not Meaningful