Ardmore Shipping Corp
Change company Symbol lookup
Select an option...
ASC Ardmore Shipping Corp
LINK Interlink Electronics Inc
NSPYIEiv.P SPDR MSCI ACWI IMI
AIG American International Group Inc
OII Oceaneering International Inc
ACQRU Independence Holdings Corp
IFPJF Informa PLC
FKWL Franklin Wireless Corp
VTI.IV Vanguard Total Stock Market ETF
$NQUSL40501010AUDT Nasdaq US Large Cap Airlines Total R
Go

Energy : Oil, Gas & Consumable Fuels | Small Cap Value
Based in Bermuda
Company profile

Ardmore Shipping Corporation provides seaborne transportation of petroleum products and chemicals to national oil companies, oil and chemical traders, and chemical companies, with its fleet of mid-size product and chemical tankers. The Company's segment relates to the operations of its vessels. The Company's fleet consists of over 20 double-hulled product and chemical tankers, all of which are in operation. The Company's vessels include Ardmore Seavaliant, Ardmore Seaventure, Ardmore Seavantage, Ardmore Seavanguard, Ardmore Sealion, Ardmore Seafox, Ardmore Seahawk, Ardmore Endeavour, Ardmore Seafarer, Ardmore Seatrader, Ardmore Seamaster and Ardmore Sealeader. The Company has over 30 subsidiaries, the majority of which represent single ship-owning companies for its fleet. Its subsidiaries include Ardmore Shipping (Bermuda) Limited (ASBL), Ardmore Shipping Services (Ireland) Limited (ASSIL), Ardmore Shipping (Asia) Pte. Limited and Ardmore Shipping (Americas) LLC.

Closing Price
$3.41
Day's Change
0.03 (0.89%)
Bid
--
Ask
--
B/A Size
--
Day's High
3.45
Day's Low
3.35
Volume
(Light)
Volume:
84,995

10-day average volume:
243,312
84,995

KeyCorp Reports Record Second Quarter 2021 Net Income Of $698 Million, Or $.72 Per Diluted Common Share

6:30 am ET July 20, 2021 (PR Newswire) Print

KeyCorp (NYSE: KEY) today announced net income from continuing operations attributable to Key common shareholders of $698 million, or $.72 per diluted common share for the second quarter of 2021. This compared to $591 million, or $.61 per diluted common share, for the first quarter of 2021 and $159 million, or $.16 per diluted common share, for the second quarter of 2020.

Our results this quarter reflect the success of our productive, client-centric team, strong risk management practices, and momentum from recent investments in both our teammates and digital capabilities.

We generated record second quarter revenue, driven by growth in both our commercial and consumer businesses, as we acquired and deepened relationships across our franchise. Our fee-based businesses reported another strong quarter, with noninterest income up 8% year-over-year. Our investment banking business generated record fees for the second quarter. Furthermore, our investment banking revenue in the second quarter represents the second-highest quarter in our history. With broad-based growth across our targeted industry verticals and continued investments in our teammates, our investment banking business has delivered a decade of consistent growth.

Credit quality remained strong this quarter, with lower nonperforming loans and net charge-offs as a percent of loans of 9 basis points. Our positive credit trends reflect our strong risk culture and disciplined underwriting practices. Our capital position also continues to be one of our strengths, with a Common Equity Tier 1 ratio of 9.9% at the end of the quarter. Earlier this month, our Board of Directors approved a new share repurchase authorization of up to $1.5 billion and will evaluate an increase to the common stock dividend in the fourth quarter 2021.

Chris Gorman, Chairman and CEO

Selected Financial Highlights
dollars in millions, except per share data                                                                             Change 2Q21 vs.
                                                                                     2Q21       1Q21       2Q20        1Q21     2Q20
Income (loss) from continuing operations attributable to Key common shareholders     $  698     $  591     $  159      18.1 %   339.0 %
Income (loss) from continuing operations attributable to Key common shareholders per .72        .61        .16         18.0     350.0
common share -- assuming dilution
Return on average tangible common equity from continuing operations (a)              22.34    % 18.25    % 4.96     %  N/A      N/A
Return on average total assets from continuing operations                            1.63       1.44       .45         N/A      N/A
Common Equity Tier 1 ratio (b)                                                       9.9        9.9        9.1         N/A      N/A
Book value at period end                                                             $  16.75   $  16.22   $  16.07    3.3  %   4.2   %
Net interest margin (TE) from continuing operations                                  2.52     % 2.61     % 2.76     %  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 "Return on average tangible common equity from continuing operations." The table reconciles the GAAP performance measures to the corresponding non-GAAP measures, which provides a basis for period-to-period comparisons.
(b)                    June 30, 2021 ratio is estimated.
TE = Taxable Equivalent, N/A = Not Applicable
INCOME STATEMENT HIGHLIGHTS
Revenue
dollars in millions                                     Change 2Q21 vs.
                            2Q21     1Q21     2Q20      1Q21    2Q20
Net interest income (TE)    $ 1,023  $ 1,012  $ 1,025   1.1 %   (.2) %
Noninterest income          750      738      692       1.6     8.4
Total revenue               $ 1,773  $ 1,750  $ 1,717   1.3 %   3.3  %
TE = Taxable Equivalent

Taxable-equivalent net interest income was $1.0 billion for the second quarter of 2021, a decrease of $2 million from the second quarter of 2020. The decrease in net interest income reflects a decrease in the net interest margin, largely offset by higher earning asset balances. The net interest margin was impacted by lower interest rates and a change in balance sheet mix, including elevated levels of liquidity.

Compared to the first quarter of 2021, taxable-equivalent net interest income increased by $11 million, and the net interest margin decreased by 9 basis points. Both net interest income and the net interest margin were impacted by higher earning asset balances, including elevated levels of liquidity, lower interest-bearing deposit costs, and higher loan fees from the Paycheck Protection Program ("PPP") forgiveness, partially offset by lower earning asset yields. Net interest income also benefited from one additional day in the second quarter of 2021.

Noninterest Income
dollars in millions                                                  Change 2Q21 vs.
                                               2Q21   1Q21   2Q20    1Q21       2Q20
Trust and investment services income           $ 133  $ 133  $ 123   --     %   8.1    %
Investment banking and debt placement fees     217    162    156     34.0       39.1
Service charges on deposit accounts            83     73     68      13.7       22.1
Operating lease income and other leasing gains 36     38     60      (5.3)      (40.0)
Corporate services income                      55     64     52      (14.1)     5.8
Cards and payments income                      113    105    91      7.6        24.2
Corporate-owned life insurance income          30     31     35      (3.2)      (14.3)
Consumer mortgage income                       26     47     62      (44.7)     (58.1)
Commercial mortgage servicing fees             44     34     12      29.4       266.7
Other income                                   13     51     33      (74.5)     (60.6)
Total noninterest income                       $ 750  $ 738  $ 692   1.6    %   8.4    %

Compared to the second quarter of 2020, noninterest income increased by $58 million, primarily driven by a $61 million increase in investment banking and debt placement fees. Commercial mortgage servicing fees increased $32 million. Additionally, cards and payments income increased $22 million, reflecting broad-based growth across credit, debit, and merchant product categories. Partially offsetting these increases were consumer mortgage income and other income, which decreased $36 million and $20 million, respectively.

Compared to the first quarter of 2021, noninterest income increased by $12 million. The largest driver of the quarter-over-quarter increase was a $55 million increase in investment banking and debt placement fees, reflecting broad-based growth in all areas. Commercial mortgage servicing fees and service charges on deposit accounts both increased $10 million. Partially offsetting these increases were a $38 million decrease in other income, reflecting market-related valuation adjustments, and a $21 million decrease in consumer mortgage income.

Noninterest Expense
dollars in millions                                   Change 2Q21 vs.
                          2Q21     1Q21     2Q20      1Q21     2Q20
Personnel expense         $ 623    $ 624    $ 572     (.2) %   8.9 %
Nonpersonnel expense      453      447      441       1.3      2.7
Total noninterest expense $ 1,076  $ 1,071  $ 1,013   .5   %   6.2 %

Key's noninterest expense was $1.1 billion for the second quarter of 2021, an increase of $63 million from the year-ago period. The increase is primarily related to higher personnel costs of $51 million, reflecting higher incentive and stock-based compensation, attributed to an increase in revenue and stock performance and an increase in employee benefits. Additionally, other drivers for the year-over-year increase include higher computer processing expense and marketing expense.

Compared to the first quarter of 2021, noninterest expense increased $5 million. Incentive and stock-based compensation increased $14 million, reflecting Key's strong investment banking performance, offset by a $15 million decrease in employee benefits.

BALANCE SHEET HIGHLIGHTS
Average Loans
dollars in millions                                                   Change 2Q21 vs.
                              2Q21         1Q21         2Q20          1Q21      2Q20
Commercial and industrial (a) $   51,808   $   52,581   $   60,480    (1.5) %   (14.3) %
Other commercial loans        19,034       18,848       19,850        1.0       (4.1)
Total consumer loans          29,972       29,299       27,611        2.3       8.6
Total loans                   $   100,814  $   100,728  $   107,941   .1    %   (6.6)  %
(a) Commercial and industrial average loan balances include $132 million, $126 million, and $135 million of assets from commercial credit cards at June 30, 2021, March 31, 2021, and June 30, 2020, respectively.

Average loans were $100.8 billion for the second quarter of 2021, a decrease of $7.1 billion compared to the second quarter of 2020. Commercial loans decreased $9.5 billion, reflecting decreased utilization versus the year-ago period, partly offset by growth in PPP loans. Consumer loans increased $2.4 billion, reflecting strength from Laurel Road and Key's consumer mortgage business, partly offset by Key's exit from the indirect auto lending business.

Compared to the first quarter of 2021, average loans increased by $86 million. Commercial loans declined due to lower commercial utilization rates, partly offset by growth in PPP loans. Consumer loans continue to reflect strength from Key's consumer mortgage business, partly offset by Key's exit from the indirect auto lending business.

Average Deposits
dollars in millions                                                                Change 2Q21 vs.
                                           2Q21         1Q21         2Q20          1Q21       2Q20
Non-time deposits                          $  139,480   $  132,267   $  118,694    5.5    %   17.5   %
Certificates of deposit ($100,000 or more) 2,212        2,571        4,950         (14.0)     (55.3)
Other time deposits                        2,630        2,902        4,333         (9.4)      (39.3)
Total deposits                             $  144,322   $  137,740   $  127,977    4.8    %   12.8   %
Cost of total deposits                     .05        % .06        % .30        %  N/A        N/A
N/A = Not Applicable

Average deposits totaled $144.3 billion for the second quarter of 2021, an increase of $16.3 billion compared to the year-ago quarter, reflecting growth from consumer and commercial relationships, partially offset by a decline in time deposits.

Compared to the first quarter of 2021, average deposits increased by $6.6 billion, primarily driven by broad-based commercial growth and higher consumer balances.

ASSET QUALITY
dollars in millions                                                                       Change 2Q21 vs.
                                                           2Q21       1Q21      2Q20      1Q21       2Q20
Net loan charge-offs                                       $  22      $  114    $  96     (80.7) %   (77.1)  %
Net loan charge-offs to average total loans                .09      % .46     % .36    %  N/A        N/A
Nonperforming loans at period end                          $  694     $  728    $  760    (4.7)      (8.7)
Nonperforming assets at period end                         738        790       951       (6.6)      (22.4)
Allowance for loan and lease losses                        1,220      1,438     1,708     (15.2)     (28.6)
Allowance for credit losses                                1,372      1,616     1,906     (15.1)     (28.0)
Allowance for loan and lease losses to nonperforming loans 175.8    % 197.5   % 224.7  %  N/A        N/A
Allowance for credit losses to nonperforming loans         197.7      222.0     250.8     N/A        N/A
Provision for credit losses                                $  (222)   $  (93)   $  482    138.7  %   (146.1) %
N/A = Not Applicable

Key's provision for credit losses was a net benefit of $222 million, including a $244 million reserve release for the second quarter of 2021, compared to an expense of $482 million in the second quarter of 2020 and a net benefit of $93 million in the first quarter of 2021. The reserve release was largely driven by a continued improvement in the economic outlook.

Net loan charge-offs for the second quarter of 2021 totaled $22 million, or .09% of average total loans. These results compare to $96 million, or .36%, for the second quarter of 2020 and $114 million, or .46%, for the first quarter of 2021. Key's allowance for credit losses was $1.4 billion, or 1.36% of total period-end loans at June 30, 2021, compared to 1.80% at June 30, 2020, and 1.60% at March 31, 2021.

At June 30, 2021, Key's nonperforming loans totaled $694 million, which represented .69% of period-end portfolio loans. These results compare to .72% at June 30, 2020, and .72% at March 31, 2021. Nonperforming assets at June 30, 2021, totaled $738 million, and represented .73% of period-end portfolio loans and OREO and other nonperforming assets. These results compare to .89% at June 30, 2020, and .78% at March 31, 2021.

CAPITAL

Key's estimated risk-based capital ratios included in the following table continued to exceed all "well-capitalized" regulatory benchmarks at June 30, 2021.

Capital Ratios
                                              6/30/2021 3/31/2021 6/30/2020
Common Equity Tier 1 (a)                      9.9  %    9.9  %    9.1  %
Tier 1 risk-based capital (a)                 11.3      11.3      10.5
Total risk based capital (a)                  13.2      13.4      12.8
Tangible common equity to tangible assets (b) 7.4       7.5       7.6
Leverage (a)                                  8.7       8.9       8.8
(a) June 30, 2021 ratio is estimated and reflects Key's election to adopt the CECL optional transition provision.
(b) The table entitled "GAAP to Non-GAAP Reconciliations" in the attached financial supplement presents the computations of certain financial measures related to "tangible common equity." The table reconciles the GAAP performance measures to the corresponding non-GAAP measures, which provides a basis for period-to-period comparisons.

Key's capital position remained strong in the second quarter of 2021. As shown in the preceding table, at June 30, 2021, Key's estimated Common Equity Tier 1 and Tier 1 risk-based capital ratios stood at 9.9% and 11.3%, respectively. Key's tangible common equity ratio was 7.4% at June 30, 2021.

Key has elected the CECL phase-in option provided by regulatory guidance which delays for two years the estimated impact of CECL on regulatory capital and phases it in over three years beginning in 2022. On a fully phased-in basis, Key's Common Equity Tier 1 ratio would be reduced by 20 basis points.

Summary of Changes in Common Shares Outstanding
in thousands                                                                                           Change 2Q21 vs.
                                                                          2Q21      1Q21     2Q20      1Q21       2Q20
Shares outstanding at beginning of period                                 972,587   975,773  975,319   (.3)   %   (.3)  %
Open market repurchases and return of shares under employee compensation  (13,304)  (9,277)  (19)      43.4       N/M
plans
Shares issued under employee compensation plans (net of cancellations)    993       6,091    647       (83.7)     53.5
                                     Shares outstanding at end of period  960,276   972,587  975,947   (1.3)  %   (1.6) %
N/M = Not Meaningful

During the second quarter of 2021, Key declared a dividend of $.185 per common share and completed $300 million of common share repurchases. Capital distributions for the quarter were consistent with the regulatory capital distribution guidelines. In July of 2021, Key's Board of Directors approved a new share repurchase authorization program of up to $1.5 billion, applicable for the third quarter of 2021 through the third quarter of 2022, that supersedes the remaining capacity under the previous authorization. Additionally, Key will evaluate an increase to the per share common dividend in the fourth quarter of 2021, subject to Board approval.

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 2Q21 vs.
                                                             2Q21     1Q21     2Q20       1Q21      2Q20
Revenue from continuing operations (TE)
Consumer Bank                                                $ 854    $ 867    $  835     (1.5) %   2.3     %
Commercial Bank                                              874      859      879        1.7       (.6)
Other (a)                                                    45       24       3          87.5      1,400.0
                               Total                         $ 1,773  $ 1,750  $  1,717   1.3   %   3.3     %
Income (loss) from continuing operations attributable to Key
Consumer Bank                                                $ 259    $ 220    $  98      17.7  %   164.3   %
Commercial Bank                                              434      384      106        13.0      309.4
Other (a)                                                    31       14       (19)       121.4     N/M
                               Total                         $ 724    $ 618    $  185     17.2  %   291.4   %
(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 millions                                                                      Change 2Q21 vs.
                                                    2Q21        1Q21        2Q20         1Q21        2Q20
Summary of operations
Net interest income (TE)                            $   600     $   610     $   589      (1.6)   %   1.9     %
Noninterest income                                  254         257         246          (1.2)       3.3
Total revenue (TE)                                  854         867         835          (1.5)       2.3
Provision for credit losses                         (70)        (23)        155          (204.3)     (145.2)
Noninterest expense                                 584         601         552          (2.8)       5.8
Income (loss) before income taxes (TE)              340         289         128          17.6        165.6
Allocated income taxes (benefit) and TE adjustments 81          69          30           17.4        170.0
Net income (loss) attributable to Key               $   259     $   220     $   98       17.7    %   164.3   %
Average balances
Loans and leases                                    $   40,598  $   39,249  $   37,300   3.4     %   8.8     %
Total assets                                        43,991      42,476      42,194       3.6         4.3
Deposits                                            88,412      85,033      79,235       4.0         11.6
Assets under management at period end               $   47,737  $   45,218  $   39,722   5.6     %   20.2    %
TE = Taxable Equivalent
Additional Consumer Bank Data
dollars in millions                                                                                            Change 2Q21 vs.
                                                                       2Q21         1Q21         2Q20          1Q21       2Q20
Noninterest income
Trust and investment services income                                   $   104      $   101      $   87        3.0    %   19.5   %
Service charges on deposit accounts                                    47           38           36            23.7       30.6
Cards and payments income                                              62           54           47            14.8       31.9
Consumer mortgage income                                               26           47           61            (44.7)     (57.4)
Other noninterest income                                               15           17           15            (11.8)     .0
Total noninterest income                                               $   254      $   257      $   246       (1.2)  %   3.3    %
Average deposit balances
NOW and money market deposit accounts                                  $   56,038   $   54,685   $   49,143    2.5    %   14.0   %
Savings deposits                                                       6,523        5,878        4,816         11.0       35.4
Certificates of deposit ($100,000 or more)                             2,083        2,424        4,520         (14.1)     (53.9)
Other time deposits                                                    2,615        2,888        4,296         (9.5)      (39.1)
Noninterest-bearing deposits                                           21,153       19,159       16,460        10.4       28.5
Total deposits                                                         $   88,412   $   85,033   $   79,235    4.0        11.6   %
Home equity loans
Average balance                                                        $   9,081    $   9,234    $   9,893
Combined weighted-average loan-to-value ratio (at date of origination) 68         % 69         % 70         %
Percent first lien positions                                           70           68           63
Other data
Branches                                                               1,014        1,068        1,077
Automated teller machines                                              1,329        1,368        1,394

Consumer Bank Summary of Operations (2Q21 vs. 2Q20)

-- Net income attributable to Key of $259 million for the second quarter of 2021, compared to $98 million for the year-ago quarter

-- Taxable-equivalent net interest income increased by $11 million, or 1.9%, compared to the second quarter of 2020, driven by strong consumer mortgage balance sheet growth and fees related to PPP loans, partially offset by the lower interest rate environment

-- Average loans and leases increased $3.3 billion, or 8.8%, driven by growth in consumer mortgage and benefit from the PPP

-- Average deposits increased $9.2 billion, or 11.6%, from the second quarter of 2020, driven by retention of consumer stimulus payments and relationship growth

-- Provision for credit losses decreased $225 million, compared to the second quarter of 2020. The provision for credit losses was a net benefit and was driven by expected improvements in economic conditions and continued strength in client credit quality

-- Noninterest income increased $8 million, or 3.3%, from the year ago quarter, driven by higher trust and investment services income and client spend activity, partially offset by lower consumer mortgage income, due to lower gain on sale volume

-- Noninterest expense increased $32 million, or 5.8%, from the year ago quarter, driven by higher variable compensation and support expenses related to higher loan volumes

Commercial Bank
dollars in millions                                                            Change 2Q21 vs.
                                          2Q21        1Q21        2Q20         1Q21      2Q20
Summary of operations
Net interest income (TE)                  $   419     $   413     $   458      1.5   %   (8.5)   %
Noninterest income                        455         446         421          2.0       8.1
Total revenue (TE)                        874         859         879          1.7       (.6)
Provision for credit losses               (131)       (67)        326          95.5      (140.2)
Noninterest expense                       451         443         441          1.8       2.3
Income (loss) before income taxes (TE)    554         483         112          14.7      394.6
Allocated income taxes and TE adjustments 120         99          6            21.2      N/M
Net income (loss) attributable to Key     $   434     $   384     $   106      13.0  %   309.4   %
Average balances
Loans and leases                          $   59,953  $   61,221  $   70,336   (2.1) %   (14.8)  %
Loans held for sale                       1,341       1,237       2,012        8.4       (33.3)
Total assets                              69,101      70,448      79,267       (1.9)     (12.8)
Deposits                                  54,814      51,894      47,954       5.6   %   14.3    %
TE = Taxable Equivalent, N/M = Not Meaningful
Additional Commercial Bank Data
dollars in millions                                                  Change 2Q21 vs.
                                               2Q21   1Q21   2Q20    1Q21       2Q20
Noninterest income
Trust and investment services income           $ 27   $ 32   $ 37    (15.6) %   (27.0)
Investment banking and debt placement fees     215    162    156     32.7       37.8   %
Operating lease income and other leasing gains 35     38     59      (7.9)      (40.7)
Corporate services income                      47     56     45      (16.1)     4.4
Service charges on deposit accounts            34     33     30      3.0        13.3
Cards and payments income                      49     52     45      (5.8)      8.9
Payments and services income                   130    141    120     (7.8)      8.3
Commercial mortgage servicing fees             44     34     12      29.4       266.7
Other noninterest income                       4      39     37      (89.7)     (89.2)
Total noninterest income                       $ 455  $ 446  $ 421   2.0    %   8.1    %
N/M = Not Meaningful

Commercial Bank Summary of Operations (2Q21 vs. 2Q20)

-- Net income attributable to Key of $434 million for the second quarter of 2021, compared to $106 million for the year-ago quarter

-- Taxable-equivalent net interest income decreased by $39 million, compared to the second quarter of 2020, as lower average loan balances offset fees related to PPP loans

-- Average loan and lease balances decreased $10.4 billion, compared to the second quarter of 2020, driven by lower commercial and industrial line draws

-- Average deposit balances increased $6.9 billion, or 14.3%, compared to the second quarter of 2020, driven by growth in targeted relationships and the impact of government programs

-- Provision for credit losses decreased $457 million, compared to the second quarter of 2020. The provision for credit losses was a net benefit and was driven by expected improvements in economic conditions

-- Noninterest income increased $34 million, from the year-ago quarter, driven by elevated investment banking client activity and commercial mortgage servicing fees, partially offset by favorable market-related adjustments to customer derivatives in the year-ago period

-- Noninterest expense increased by $10 million, or 2.3%, from the second quarter of 2020, driven by higher personnel-related costs

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

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 $181.1 billion at June 30, 2021.

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 more than 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.

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, 2020, 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 10:00 a.m. ET, on July 20, 2021. A replay of the call will be available through July 29, 2021.

*****

KeyCorp
Second Quarter 2021
Financial Supplement
Page
12         Financial Highlights
14         GAAP to Non-GAAP Reconciliation
16         Consolidated Balance Sheets
17         Consolidated Statements of Income
18         Consolidated Average Balance Sheets, and Net Interest Income and Yields/Rates From Continuing Operations
20         Noninterest Expense
20         Personnel Expense
21         Loan Composition
21         Loans Held for Sale Composition
21         Summary of Changes in Loans Held for Sale
22         Summary of Loan and Lease Loss Experience From Continuing Operations
23         Asset Quality Statistics From Continuing Operations
23         Summary of Nonperforming Assets and Past Due Loans From Continuing Operations
23         Summary of Changes in Nonperforming Loans From Continuing Operations
24         Line of Business Results
Financial Highlights
(dollars in millions, except per share amounts)
                                                                                                                     Three months ended
                                                                                                                     6/30/2021      3/31/2021      6/30/2020
Summary of operations
               Net interest income (TE)                                                                              $   1,023      $   1,012      $   1,025
               Noninterest income                                                                                    750            738            692
                                                                  Total revenue (TE)                                 1,773          1,750          1,717
               Provision for credit losses                                                                           (222)          (93)           482
               Noninterest expense                                                                                   1,076          1,071          1,013
               Income (loss) from continuing operations attributable to Key                                          724            618            185
               Income (loss) from discontinued operations, net of taxes                                              5              4              2
               Net income (loss) attributable to Key                                                                 729            622            187
               Income (loss) from continuing operations attributable to Key common shareholders                      698            591            159
               Income (loss) from discontinued operations, net of taxes                                              5              4              2
               Net income (loss) attributable to Key common shareholders                                             703            595            161
Per common share
               Income (loss) from continuing operations attributable to Key common shareholders                      $   .73        $   .61        $   .16
               Income (loss) from discontinued operations, net of taxes                                              --             --             --
               Net income (loss) attributable to Key common shareholders (a)                                         .73            .62            .17
               Income (loss) from continuing operations attributable to Key common shareholders -- assuming dilution .72            .61            .16
               Income (loss) from discontinued operations, net of taxes -- assuming dilution                         --             --             --
               Net income (loss) attributable to Key common shareholders -- assuming dilution (a)                    .73            .61            .17
               Cash dividends declared                                                                               .185           .185           .185
               Book value at period end                                                                              16.75          16.22          16.07
               Tangible book value at period end                                                                     13.81          13.30          13.12
               Market price at period end                                                                            20.65          19.98          12.18
Performance ratios
               From continuing operations:
               Return on average total assets                                                                        1.63       %   1.44       %   .45        %
               Return on average common equity                                                                       18.21          14.98          4.05
               Return on average tangible common equity (b)                                                          22.34          18.25          4.96
               Net interest margin (TE)                                                                              2.52           2.61           2.76
               Cash efficiency ratio (b)                                                                             59.9           60.3           57.9
               From consolidated operations:
               Return on average total assets                                                                        1.64       %   1.45       %   .46        %
               Return on average common equity                                                                       18.34          15.08          4.10
               Return on average tangible common equity (b)                                                          22.50          18.37          5.02
               Net interest margin (TE)                                                                              2.55           2.60           2.76
               Loan to deposit (c)                                                                                   70.4           73.1           80.4
Capital ratios at period end
               Key shareholders' equity to assets                                                                    9.9        %   10.0       %   10.2       %
               Key common shareholders' equity to assets                                                             8.9            9.0            9.2
               Tangible common equity to tangible assets (b)                                                         7.4            7.5            7.6
               Common Equity Tier 1 (d)                                                                              9.9            9.9            9.1
               Tier 1 risk-based capital (d)                                                                         11.3           11.3           10.5
               Total risk-based capital (d)                                                                          13.2           13.4           12.8
               Leverage (d)                                                                                          8.7            8.9            8.8
Asset quality -- from continuing operations
               Net loan charge-offs                                                                                  $   22         $   114        $   96
               Net loan charge-offs to average loans                                                                 .09        %   .46        %   .36        %
               Allowance for loan and lease losses                                                                   $   1,220      $   1,438      $   1,708
               Allowance for credit losses                                                                           1,372          1,616          1,906
               Allowance for loan and lease losses to period-end loans                                               1.21       %   1.42       %   1.61       %
               Allowance for credit losses to period-end loans                                                       1.36           1.60           1.80
               Allowance for loan and lease losses to nonperforming loans                                            175.8          197.5          224.7
               Allowance for credit losses to nonperforming loans                                                    197.7          222.0          250.8
               Nonperforming loans at period-end                                                                     $   694        $   728        $   760
               Nonperforming assets at period-end                                                                    738            790            951
               Nonperforming loans to period-end portfolio loans                                                     .69        %   .72        %   .72        %
               Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets           .73            .78            .89
Trust assets
               Assets under management                                                                               $   47,737     $   45,218     $   39,722
Other data
               Average full-time equivalent employees                                                                17,157         17,086         16,646
               Branches                                                                                              1,014          1,068          1,077
               Taxable-equivalent adjustment                                                                         $   6          $   7          $   7
Financial Highlights (continued)
(dollars in millions, except per share amounts)
                                                                                                                            Six months ended
                                                                                                                            6/30/2021     6/30/2020
Summary of operations
                      Net interest income (TE)                                                                              $     2,035   $     2,014
                      Noninterest income                                                                                    1,488         1,169
                      Total revenue (TE)                                                                                    3,523         3,183
                      Provision for credit losses                                                                           (315)         841
                      Noninterest expense                                                                                   2,147         1,944
                      Income (loss) from continuing operations attributable to Key                                          1,342         330
                      Income (loss) from discontinued operations, net of taxes                                              9             3
                      Net income (loss) attributable to Key                                                                 1,351         333
                      Income (loss) from continuing operations attributable to Key common shareholders                      1,289         277
                      Income (loss) from discontinued operations, net of taxes                                              9             3
                      Net income (loss) attributable to Key common shareholders                                             1,298         280
Per common share
                      Income (loss) from continuing operations attributable to Key common shareholders                      $     1.34    $     .29
                      Income (loss) from discontinued operations, net of taxes                                              .01           --
                      Net income (loss) attributable to Key common shareholders (a)                                         1.35          .29
                      Income (loss) from continuing operations attributable to Key common shareholders -- assuming dilution 1.33          .28
                      Income (loss) from discontinued operations, net of taxes -- assuming dilution                         .01           --
                      Net income (loss) attributable to Key common shareholders -- assuming dilution (a)                    1.34          .29
                      Cash dividends paid                                                                                   .37           .37
Performance ratios
                      From continuing operations:
                      Return on average total assets                                                                        1.55        % .43         %
                      Return on average common equity                                                                       16.64         3.58
                      Return on average tangible common equity (b)                                                          20.34         4.40
                      Net interest margin (TE)                                                                              2.56          2.88
                      Cash efficiency ratio (b)                                                                             60.1          60.0
                      From consolidated operations:
                      Return on average total assets                                                                        1.55        % .43         %
                      Return on average common equity                                                                       16.76         3.62
                      Return on average tangible common equity (b)                                                          20.48         4.45
                      Net interest margin (TE)                                                                              2.57          2.87
Asset quality -- from continuing operations
                      Net loan charge-offs                                                                                  $     136     $     180
                      Net loan charge-offs to average total loans                                                           .27         % .35         %
Other data
                      Average full-time equivalent employees                                                                17,122        16,587
Taxable-equivalent adjustment                                                                                               13            15
(a) Earnings per share may not foot due to rounding.
(b) The following table entitled "GAAP to Non-GAAP Reconciliations" presents the computations of certain financial measures related to "tangible common equity" and "cash efficiency." The table reconciles the GAAP performance measures to the corresponding non-GAAP measures, which provides a basis for period-to-period comparisons.
(c) Represents period-end consolidated total loans and loans held for sale divided by period-end consolidated total deposits.
(d) June 30, 2021, ratio is estimated and reflects Key's election to adopt the CECL optional transition provision.
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                               Six months ended
                                                                          6/30/2021       3/31/2021       6/30/2020        6/30/2021      6/30/2020
Tangible common equity to tangible assets at period-end
Key shareholders' equity (GAAP)                                           $   17,941      $   17,634      $   17,542
Less: Intangible assets (a)                                               2,828           2,842           2,877
Preferred Stock (b)                                                       1,856           1,856           1,856
Tangible common equity (non-GAAP)                                         $   13,257      $   12,936      $   12,809
Total assets (GAAP)                                                       $   181,115     $   176,203     $   171,192
Less: Intangible assets (a)                                               2,828           2,842           2,877
Tangible assets (non-GAAP)                                                $   178,287     $   173,361     $   168,315
Tangible common equity to tangible assets ratio (non-GAAP)                7.44        %   7.46        %   7.61        %
Pre-provision net revenue
Net interest income (GAAP)                                                $   1,017       $   1,005       $   1,018        $   2,022      $   1,999
Plus: Taxable-equivalent adjustment                                       6               7               7                13             15
Noninterest income                                                        750             738             692              1,488          1,169
Less: Noninterest expense                                                 1,076           1,071           1,013            2,147          1,944
Pre-provision net revenue from continuing operations (non-GAAP)           $   697         $   679         $   704          $   1,376      $   1,239
Average tangible common equity
Average Key shareholders' equity (GAAP)                                   $   17,271      $   17,769      $   17,688       $   17,519     $   17,452
Less: Intangible assets (average) (c)                                     2,840           2,844           2,886            2,840          2,894
Preferred stock (average)                                                 1,900           1,900           1,900            1,900          1,900
Average tangible common equity (non-GAAP)                                 $   12,531      $   13,025      $   12,902       $   12,779     $   12,658
Return on average tangible common equity from continuing operations
Net income (loss) from continuing operations attributable to Key common   $   698         $   591         $   159          $   1,289      $   277
shareholders (GAAP)
Average tangible common equity (non-GAAP)                                 12,531          13,025          12,902           12,779         12,658
Return on average tangible common equity from continuing operations (non- 22.34       %   18.25       %   4.96        %    20.34      %   4.40       %
GAAP)
Return on average tangible common equity consolidated
Net income (loss) attributable to Key common shareholders (GAAP)          $   703         $   595         $   161          $   1,298      $   280
Average tangible common equity (non-GAAP)                                 12,531          13,025          12,902           12,779         12,658
Return on average tangible common equity consolidated (non-GAAP)          22.50       %   18.37       %   5.02        %    20.48      %   4.45       %
GAAP to Non-GAAP Reconciliations (continued)
(dollars in millions)
                                            Three months ended                         Six months ended
                                            6/30/2021     3/31/2021     6/30/2020      6/30/2021     6/30/2020
Cash efficiency ratio
Noninterest expense (GAAP)                  $   1,076     $   1,071     $   1,013      $   2,147     $   1,944
Less: Intangible asset amortization         14            15            18             29            35
Adjusted noninterest expense (non-GAAP)     $   1,062     $   1,056     $   995        $   2,118     $   1,909
Net interest income (GAAP)                  $   1,017     $   1,005     $   1,018      $   2,022     $   1,999
Plus: Taxable-equivalent adjustment         6             7             7              13            15
Noninterest income                          750           738           692            1,488         1,169
Total taxable-equivalent revenue (non-GAAP) $   1,773     $   1,750     $   1,717      $   3,523     $   3,183
Cash efficiency ratio (non-GAAP)            59.9      %   60.3      %   57.9      %    60.1      %   60.0      %
(a)                        For the three months ended June 30, 2021, March 31, 2021, and June 30, 2020, intangible assets exclude $4 million, $4 million, and $5 million, respectively, of period-end purchased credit card receivables.
(b)                        Net of capital surplus.
(c)                        For the three months ended June 30, 2021, March 31, 2021, and June 30, 2020, average intangible assets exclude $4 million, $4 million, and $6 million, respectively, of average purchased credit card receivables. For the six months ended June 30, 2021, and June 30, 2020, average intangible assets exclude $4 million and $6 million, respectively, of average purchased credit card receivables
GAAP = U.S. generally accepted accounting principles
Consolidated Balance Sheets
(dollars in millions)
                                                                                          6/30/2021    3/31/2021    6/30/2020
Assets
           Loans                                                                          $   100,730  $   100,926  $   106,159
           Loans held for sale                                                            1,537        2,296        2,007
           Securities available for sale                                                  34,638       33,923       23,600
           Held-to-maturity securities                                                    6,175        6,857        9,075
           Trading account assets                                                         851          811          645
           Short-term investments                                                         20,460       15,376       14,036
           Other investments                                                              635          621          655
                                               Total earning assets                       165,026      160,810      156,177
           Allowance for loan and lease losses                                            (1,220)      (1,438)      (1,708)
           Cash and due from banks                                                        792          938          1,059
           Premises and equipment                                                         785          737          776
           Goodwill                                                                       2,673        2,673        2,664
           Other intangible assets                                                        159          173          218
           Corporate-owned life insurance                                                 4,304        4,296        4,251
           Accrued income and other assets                                                7,966        7,347        6,976
           Discontinued assets                                                            630          667          779
                                               Total assets                               $   181,115  176,203      171,192
Liabilities
           Deposits in domestic offices:
                                               NOW and money market deposit accounts      $   85,242   $   82,777   $   78,853
                                               Savings deposits                           6,993        6,655        5,371
                                               Certificates of deposit ($100,000 or more) 2,064        2,437        4,476
                                               Other time deposits                        2,493        2,782        4,011
                                               Total interest-bearing deposits            96,792       94,651       92,711
                                               Noninterest-bearing deposits               49,280       47,532       42,802
                                               Total deposits                             146,072      142,183      135,513
           Federal funds purchased and securities sold under repurchase agreements        211          281          267
           Bank notes and other short-term borrowings                                     723          744          1,716
           Accrued expense and other liabilities                                          2,957        2,862        2,420
           Long-term debt                                                                 13,211       12,499       13,734
                                               Total liabilities                          163,174      158,569      153,650
Equity
           Preferred stock                                                                1,900        1,900        1,900
           Common shares                                                                  1,257        1,257        1,257
           Capital surplus                                                                6,232        6,213        6,240
           Retained earnings                                                              13,689       13,166       12,154
           Treasury stock, at cost                                                        (5,287)      (5,005)      (4,945)
           Accumulated other comprehensive income (loss)                                  150          103          936
                                               Key shareholders' equity                   17,941       17,634       17,542
           Noncontrolling interests                                                       --           --           --
                                               Total equity                               17,941       17,634       17,542
Total liabilities and equity                                                              $   181,115  $   176,203  $   171,192
Common shares outstanding (000)                                                           960,276      972,587      975,947
Consolidated Statements of Income
(dollars in millions, except per share amounts)
                                                                                                   Three months ended             Six months ended
                                                                                                   6/30/2021 3/31/2021 6/30/2020  6/30/2021  6/30/2020
Interest income
                           Loans                                                                   $   888   $   889   $   980    $   1,777  $   2,006
                           Loans held for sale                                                     11        11        21         22         40
                           Securities available for sale                                           133       130       121        263        250
                           Held-to-maturity securities                                             45        45        56         90         118
                           Trading account assets                                                  5         5         5          10         13
                           Short-term investments                                                  6         5         7          11         13
                           Other investments                                                       2         2         --         4          1
                                                               Total interest income               1,090     1,087     1,190      2,177      2,441
Interest expense
                           Deposits                                                                16        21        96         37         265
                           Federal funds purchased and securities sold under repurchase agreements --        --        --         --         6
                           Bank notes and other short-term borrowings                              3         1         5          4          10
                           Long-term debt                                                          54        60        71         114        161
                                                               Total interest expense              73        82        172        155        442
Net interest income                                                                                1,017     1,005     1,018      2,022      1,999
Provision for credit losses                                                                        (222)     (93)      482        (315)      841
Net interest income after provision for credit losses                                              1,239     1,098     536        2,337      1,158
Noninterest income
                           Trust and investment services income                                    133       133       123        266        256
                           Investment banking and debt placement fees                              217       162       156        379        272
                           Service charges on deposit accounts                                     83        73        68         156        152
                           Operating lease income and other leasing gains                          36        38        60         74         90
                           Corporate services income                                               55        64        52         119        114
                           Cards and payments income                                               113       105       91         218        157
                           Corporate-owned life insurance income                                   30        31        35         61         71
                           Consumer mortgage income                                                26        47        62         73         82
                           Commercial mortgage servicing fees                                      44        34        12         78         30
                           Other income                                                            13        51        33         64         (55)
                                                               Total noninterest income            750       738       692        1,488      1,169
Noninterest expense
                           Personnel                                                               623       624       572        1,247      1,087
                           Net occupancy                                                           75        76        71         151        147
                           Computer processing                                                     71        73        56         144        111
                           Business services and professional fees                                 51        50        49         101        93
                           Equipment                                                               25        25        25         50         49
                           Operating lease expense                                                 31        34        34         65         70
                           Marketing                                                               31        26        24         57         45
                           Intangible asset amortization                                           14        15        18         29         35
                           Other expense                                                           155       148       164        303        307
                                                               Total noninterest expense           1,076     1,071     1,013      2,147      1,944
Income (loss) from continuing operations before income taxes                                       913       765       215        1,678      383
                           Income taxes                                                            189       147       30         336        53
Income (loss) from continuing operations                                                           724       618       185        1,342      330
                           Income (loss) from discontinued operations, net of taxes                5         4         2          9          3
Net income (loss)                                                                                  729       622       187        1,351      333
                           Less:  Net income (loss) attributable to noncontrolling interests       --        --        --         --         --
Net income (loss) attributable to Key                                                              $   729   $   622   $   187    $   1,351  $   333
Income (loss) from continuing operations attributable to Key common shareholders                   $   698   $   591   $   159    $   1,289  $   277
Net income (loss) attributable to Key common shareholders                                          703       595       161        1,298      280
Per common share
Income (loss) from continuing operations attributable to Key common shareholders                   $   .73   $   .61   $   .16    $   1.34   $   .29
Income (loss) from discontinued operations, net of taxes                                           --        --        --         .01        --
Net income (loss) attributable to Key common shareholders (a)                                      .73       .62       .17        1.35       .29
Per common share -- assuming dilution
Income (loss) from continuing operations attributable to Key common shareholders                   $   .72   $   .61   $   .16    $   1.33   $   .28
Income (loss) from discontinued operations, net of taxes                                           --        --        --         .01        --
Net income (loss) attributable to Key common shareholders (a)                                      .73       .61       .17        1.34       .29
Cash dividends declared per common share                                                           $   .185  $   .185  $   .185   $   .370   $   .370
Weighted-average common shares outstanding (000)                                                   961,292   964,878   967,147    957,423    967,380
                           Effect of common share options and other stock awards                   9,514     9,419     4,994      9,740      6,892
Weighted-average common shares and potential common shares outstanding (000) (b)                   970,806   974,297   972,141    967,163    974,272
(a) Earnings per share may not foot due to rounding.
(b) Assumes conversion of common share options and other stock awards, as applicable.
Consolidated Average Balance Sheets, and Net Interest Income and Yields/Rates From Continuing Operations
(dollars in millions)
                                                                                                   Second Quarter 2021                 First Quarter 2021                   Second Quarter 2020
                                                                                                   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)                                           $   51,808   $    450    3.52       $   52,581   $    453    3.48        $   60,480   $    518    3.44
                           Real estate -- commercial mortgage                                      12,825       117         3.67       12,658       114         3.67        13,510       128         3.80
                           Real estate -- construction                                             $   2,149    $    20     3.68       $   2,048    $    19     3.75        $   1,756    $    17     3.97
                           Commercial lease financing                                              4,060        30          2.98       4,142        31          2.99        4,584        33          2.96
                           Total commercial loans                                                  $   70,842   $    617    3.53       $   71,429   $    617    3.50        $   80,330   $    696    3.49
                           Real estate -- residential mortgage                                     11,055       81          2.92       9,699        76          3.12        7,783        69          3.57
                           Home equity loans                                                       $   9,089    $    85     3.76       $   9,282    $    85     3.73        $   9,949    $    97     3.89
                           Consumer direct loans                                                   4,910        57          4.69       4,817        56          4.72        4,152        55          5.24
                           Credit cards                                                            $   908      $    22     9.79       $   933      $    24     10.45       $   983      $    25     10.22
                           Consumer indirect loans                                                 4,010        32          3.23       4,568        37          3.30        4,744        45          3.82
                           Total consumer loans                                                    $   29,972   $    277    3.74       $   29,299   $    278    3.84        $   27,611   $    291    4.22
                           Total loans                                                             100,814      894         3.59       100,728      895         3.60        107,941      987         3.67
                           Loans held for sale                                                     $   1,616    $    11     2.60       $   1,531    $    11     2.89        $   2,463    $    21     3.50
                           Securities available for sale (b), (e)                                  33,623       133         3.13       30,039       130         1.76        20,749       121         2.43
                           Held-to-maturity securities (b)                                         $   6,452    $    45     2.75       $   7,188    $    46     2.53        $   9,331    $    56     2.43
                           Trading account assets                                                  837          5           2.56       848          5           2.15        760          5           2.43
                           Short-term investments                                                  $   18,817   $    6      0.13       $   16,510   $    5      0.13        $   7,892    $    7      0.31
                           Other investments (e)                                                   622          2           1.02       614          2           1.40        672          --          0.29
                           Total earning assets                                                    $   162,781  $    1,096  2.72       $   157,458  $    1,094  2.81        $   149,808  $    1,197  3.22
                           Allowance for loan and lease losses                                     (1,442)                             (1,623)                              (1,413)
                           Accrued income and other assets                                         $   16,531                          $   16,398                           $   15,704
                           Discontinued assets                                                     650                                 686                                  793
                           Total assets                                                            $   178,520                         $   172,919                          $   164,892
Liabilities
                           NOW and money market deposit accounts                                   $   83,981   $    9      .05        $   81,439   $    10     .05         $   75,297   $    56     .30
                           Savings deposits                                                        6,859        1           .03        6,203        1           .03         5,130        --          .04
                           Certificates of deposit ($100,000 or more)                              $   2,212    $    4      .72        $   2,571    $    6      .96         $   4,950    $    24     1.93
                           Other time deposits                                                     2,630        2           .38        2,902        4           .57         4,333        16          1.52
                           Total interest-bearing deposits                                         $   95,682   $    16     .07        $   93,115   $    21     .09         $   89,710   $    96     .43
                           Federal funds purchased and securities sold under repurchase agreements 251          --          .02        243          --          .04         242          --          .03
                           Bank notes and other short-term borrowings                              $   744      $    3      1.19       $   878      $    1      .64         $   2,869    $    5      .57
                           Long-term debt (f), (g)                                                 11,978       54          1.83       12,831       60          1.93        12,954       71          2.30
                           Total interest-bearing liabilities                                      $   108,655  $    73     .27        $   107,067  $    82     .31         $   105,775  $    172    .66
                           Noninterest-bearing deposits                                            48,640                              44,625                               38,267
                           Accrued expense and other liabilities                                   $   3,304                           $   2,772                            $   2,369
                           Discontinued liabilities (g)                                            650                                 686                                  793
                           Total liabilities                                                       $   161,249                         $   155,150                          $   147,204
Equity
                           Key shareholders' equity                                                $   17,271                          $   17,769                           $   17,688
                           Noncontrolling interests                                                --                                  --                                   --
                           Total equity                                                            $   17,271                          $   17,769                           $   17,688
                           Total liabilities and equity                                            $   178,520                         $   172,919                          $   164,892
Interest rate spread (TE)                                                                                                   2.45 %                              2.50  %                              2.56  %
Net interest income (TE) and net interest margin (TE)                                                           1,023       2.52 %                  1,012       2.61  %                  1,025       2.76  %
TE adjustment (b)                                                                                               6                                   7                                    7
                           Net interest income, GAAP basis                                                      $    1,017                          $    1,005                           $    1,018
(a)                                    Results are from continuing operations.  Interest excludes the interest associated with the liabilities referred to in (g) below, calculated using a matched funds transfer pricing methodology.
(b)                                    Interest income on tax-exempt securities and loans has been adjusted to a taxable-equivalent basis using the statutory federal income tax rate of 21% for the three months ended June 30, 2021, March 31, 2021, and June 30, 2020.
(c)                                    For purposes of these computations, nonaccrual loans are included in average loan balances.
(d)                                    Commercial and industrial average balances include $132 million, $126 million, and $135 million of assets from commercial credit cards for the three months ended June 30, 2021, March 31, 2021, and June 30, 2020, 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
Consolidated Average Balance Sheets, and Net Interest Income and Yields/Rates  From Continuing Operations
(dollars in millions)
                                                                                                   Six months ended June 30, 2021        Six months ended June 30, 2020
                                                                                                   Average                     Yield/    Average                     Yield/
                                                                                                   Balance        Interest (a) Rate (a)  Balance        Interest (a) Rate (a)
Assets
                           Loans: (b), (c)
                           Commercial and industrial (d)                                           $     52,194   $     902    3.48  %   $     54,973   $     1,026  3.75  %
                           Real estate -- commercial mortgage                                      12,742         232          3.67      13,529         283          4.20
                           Real estate -- construction                                             2,099          39           3.71      1,711          37           4.35
                           Commercial lease financing                                              4,101          61           2.99      4,575          72           3.17
                           Total commercial loans                                                  71,136         1,234        3.49      74,788         1,418        3.81
                           Real estate -- residential mortgage                                     10,380         154          2.97      7,500          137          3.66
                           Home equity loans                                                       9,189          173          3.79      10,052         210          4.19
                           Consumer direct loans                                                   4,864          113          4.70      3,930          109          5.56
                           Credit cards                                                            920            46           10.12     1,032          56           10.89
                           Consumer indirect loans                                                 4,288          69           3.25      4,756          91           3.84
                           Total consumer loans                                                    29,641         555          3.77      27,270         603          4.44
                           Total loans                                                             100,777        1,789        3.58      102,058        2,021        3.98
                           Loans held for sale                                                     1,574          22           2.74      2,174          40           3.71
                           Securities available for sale (b), (e)                                  31,841         263          1.66      20,960         250          2.46
                           Held-to-maturity securities (b)                                         6,818          90           2.63      9,575          118          2.47
                           Trading account assets                                                  842            10           2.35      913            13           2.73
                           Short-term investments                                                  17,670         11           0.13      4,828          13           0.52
                           Other investments (e)                                                   618            4            1.21      643            1            0.34
                           Total earning assets                                                    160,140        2,189        2.75      141,151        2,456        3.51
                           Allowance for loan and lease losses                                     (1532)                                (1255)
                           Accrued income and other assets                                         16,463                                15,268
                           Discontinued assets                                                     668                                   815
                           Total assets                                                            $     175,739                         $     155,979
Liabilities
                           NOW and money market deposit accounts                                   $     82,717   20           .05       $     71,009   168          .47
                           Savings deposits                                                        6,533          1            .03       4,893          1            .04
                           Certificates of deposit ($100,000 or more)                              2,390          10           .85       5,630          58           2.08
                           Other time deposits                                                     2,766          6            .48       4,617          38           1.67
                           Total interest-bearing deposits                                         94,406         37           .08       86,149         265          .62
                           Federal funds purchased and securities sold under repurchase agreements 247            --           .03       1,122          6            1.05
                           Bank notes and other short-term borrowings                              811            4            .89       2,135          10           .90
                           Long-term debt (f), (g)                                                 12,402         114          1.87      12,698         161          2.62
                           Total interest-bearing liabilities                                      107,866        155          .29       102,104        442          .87
                           Noninterest-bearing deposits                                            46,638                                33,004
                           Accrued expense and other liabilities                                   3,048                                 2,604
                           Discontinued liabilities (g)                                            668                                   815
                           Total liabilities                                                       158,220                               138,527
Equity
                           Key shareholders' equity                                                17,519                                17,452
                           Noncontrolling interests                                                --                                    --
                           Total equity                                                            17,519                                17,452
                           Total liabilities and equity                                            $     175,739                         $     155,979
Interest rate spread (TE)                                                                                                      2.46  %                               2.64  %
Net interest income (TE) and net interest margin (TE)                                                             2,035        2.56  %                  2,014        2.88  %
TE adjustment (b)                                                                                                 13                                    15
                           Net interest income, GAAP basis                                                        $     2,022                           $     1,999
(a)                                    Results are from continuing operations.  Interest excludes the interest associated with the liabilities referred to in (g) below, calculated using a matched funds transfer pricing methodology.
(b)                                    Interest income on tax-exempt securities and loans has been adjusted to a taxable-equivalent basis using the statutory federal income tax rate of 21% for the six months ended June 30, 2021, and June 30, 2020, respectively.
(c)                                    For purposes of these computations, nonaccrual loans are included in average loan balances.
(d)                                    Commercial and industrial average balances include $129 million and $140 million of assets from commercial credit cards for the six months ended June 30, 2021, and June 30, 2020, 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
Noninterest Expense
(dollars in millions)
                                           Three months ended                Six months ended
                                           6/30/2021  3/31/2021  6/30/2020   6/30/2021  6/30/2020
Personnel (a)                              $   623    $   624    $   572     $   1,247  $   1,087
Net occupancy                              75         76         71          151        147
Computer processing                        71         73         56          144        111
Business services and professional fees    51         50         49          101        93
Equipment                                  25         25         25          50         49
Operating lease expense                    31         34         34          65         70
Marketing                                  31         26         24          57         45
Intangible asset amortization              14         15         18          29         35
Other expense                              155        148        164         303        307
Total noninterest expense                  $   1,076  $   1,071  $   1,013   $   2,147  $   1,944
Average full-time equivalent employees (b) 17,157     17,086     16,646      17,122     16,587
(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
(in millions)
                                       Three months ended          Six months ended
                                       6/30/20213/31/20216/30/2020 6/30/2021  6/30/2020
Salaries and contract labor            $   321  $   320  $   332   $   641    $   648
Incentive and stock-based compensation 210      196      162       406        264
Employee benefits                      92       107      76        199        168
Severance                              --       1        2         1          7
Total personnel expense                $   623  $   624  $   572   $   1,247  $   1,087
Loan Composition
(dollars in millions)
                                                                            Percent change 6/30/2021 vs
                                    6/30/2021    3/31/2021    6/30/2020     3/31/20216/30/2020
Commercial and industrial (a)       $   50,672   $   52,486   $   58,297    (3.5)  % (13.1) %
Commercial real estate:
Commercial mortgage                 12,965       12,702       13,465        2.1      (3.7)
Construction                        2,132        2,122        1,919         .5       11.1
Total commercial real estate loans  15,097       14,824       15,384        1.8      (1.9)
Commercial lease financing (b)      4,061        4,104        4,524         (1.0)    (10.2)
Total commercial loans              69,830       71,414       78,205        (2.2)    (10.7)
Residential -- prime loans:
Real estate -- residential mortgage 12,131       10,300       8,149         17.8     48.9
Home equity loans                   9,047        9,158        9,782         (1.2)    (7.5)
Total residential -- prime loans    21,178       19,458       17,931        8.8      18.1
Consumer direct loans               5,049        4,862        4,327         3.8      16.7
Credit cards                        923          909          974           1.5      (5.2)
Consumer indirect loans             3,750        4,283        4,722         (12.4)   (20.6)
Total consumer loans                30,900       29,512       27,954        4.7      10.5
Total loans (c), (d)                $   100,730  $   100,926  $   106,159   (.2)   % (5.1)  %
(a) Loan balances include $135 million, $126 million, and $132 million of commercial credit card balances at June 30, 2021, March 31, 2021, and June 30, 2020, respectively.
(b) Commercial lease financing includes receivables held as collateral for a secured borrowing of $19 million, $21 million, and $18 million at June 30, 2021, March 31, 2021, and June 30, 2020, respectively. Principal reductions are based on the cash payments received from these related receivables.
(c) Total loans exclude loans of $636 million at June 30, 2021, $675 million at March 31, 2021, and $780 million at June 30, 2020, related to the discontinued operations of the education lending business.
(d) Accrued interest of $225 million, $241 million, and $225 million at June 30, 2021, March 31, 2021, and June 30, 2020, 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 6/30/2021 vs
                                    6/30/2021  3/31/2021  6/30/2020   3/31/20216/30/2020
Commercial and industrial           $   233    $   1,175  $   419     (80.2) % (44.4) %
Real estate -- commercial mortgage  1,073      837        1,107       28.2     (3.1)
Commercial lease financing          --         --         --          N/M      N/M
Real estate -- residential mortgage 231        236        250         (2.1)    (7.6)
Consumer direct loans               --         48         231         N/M      N/M
Total loans held for sale           $   1,537  $   2,296  $   2,007   (33.1) % (23.4) %
N/M = Not Meaningful
Summary of Changes in Loans Held for Sale
(in millions)
                                          2Q21       1Q21       4Q20       3Q20       2Q20
Balance at beginning of period            $   2,296  $   1,583  $   1,724  $   2,007  $   2,143
New originations                          3,573      4,010      3,835      3,282      3,621
Transfers from (to) held to maturity, net (71)       83         (24)       75         (15)
Loan sales                                (4,195)    (3,303)    (3,932)    (3,583)    (3,679)
Loan draws (payments), net                (27)       (73)       (19)       (57)       (61)
Valuation and other adjustments           (39)       (4)        --         --         (2)
Balance at end of period                  $   1,537  $   2,296  $   1,583  $   1,724  $   2,007
Summary of Loan and Lease Loss Experience From Continuing Operations
(dollars in millions)
                                                                                    Three months ended                                     Six months ended
                                                                                    6/30/2021         3/31/2021         6/30/2020          6/30/2021         6/30/2020
Average loans outstanding                                                           $    100,814      $    100,728      $    107,941       $    100,777      $    102,058
Allowance for loan and lease losses at the end of the prior period                  $    1,438        $    1,626        $    1359          $    1,626        $    900
Cumulative effect from change in accounting principle (a)                           --                --                --                 --                204
Allowance for loan and lease losses at the beginning of the period                  1,438             1,626             1,359              1,626             1,104
Loans charged off:
Commercial and industrial                                                           41                73                71                 114               351
Real estate -- commercial mortgage                                                  4                 35                2                  39                19
Real estate -- construction                                                         --                --                --                 --                --
Total commercial real estate loans                                                  4                 35                2                  39                19
Commercial lease financing                                                          --                4                 4                  4                 35
Total commercial loans                                                              45                112               77                 157               405
Real estate -- residential mortgage                                                 1                 --                2                  1                 2
Home equity loans                                                                   4                 2                 2                  6                 11
Consumer direct loans                                                               7                 8                 10                 15                37
Credit cards                                                                        9                 6                 12                 15                39
Consumer indirect loans                                                             5                 7                 7                  12                28
Total consumer loans                                                                26                23                33                 49                117
Total loans charged off                                                             71                135               110                206               522
Recoveries:
Commercial and industrial                                                           32                8                 5                  40                34
Real estate -- commercial mortgage                                                  6                 1                 --                 7                 3
Real estate -- construction                                                         --                --                --                 --                --
Total commercial real estate loans                                                  6                 1                 --                 7                 3
Commercial lease financing                                                          --                1                 1                  1                 1
Total commercial loans                                                              38                10                6                  48                38
Real estate -- residential mortgage                                                 --                1                 --                 1                 1
Home equity loans                                                                   1                 1                 1                  2                 7
Consumer direct loans                                                               2                 2                 2                  4                 7
Credit cards                                                                        3                 2                 2                  5                 8
Consumer indirect loans                                                             5                 5                 3                  10                18
Total consumer loans                                                                11                11                8                  22                41
Total recoveries                                                                    49                21                14                 70                78
Net loan charge-offs                                                                (22)              (114)             (96)               (136)             (443)
Provision (credit) for loan and lease losses                                        (196)             (74)              445                (270)             965
Allowance for loan and lease losses at end of period                                $    1,220        $    1,438        $    1,708         $    1,220        $    1,626
Liability for credit losses on lending-related commitments at the end of the prior  $    178          $    197          $    161           $    197          $    68
period
Liability for credit losses on contingent guarantees at the end of the prior period --                --                --                 --                7
Cumulative effect from change in accounting principle (a), (b)                      --                --                --                 --                66
Liability for credit losses on lending-related commitments at beginning of period   178               197               161                197               141
Provision (credit) for losses on lending-related commitments                        (26)              (19)              37                 (45)              56
Liability for credit losses on lending-related commitments at end of period (c)     $    152          $    178          $    198           $    152          $    197
Total allowance for credit losses at end of period                                  $    1,372        $    1,616        $    1,906         $    1,372        $    1,823
Net loan charge-offs to average total loans                                         .09          %    .46          %    .36          %     .27          %    .35          %
Allowance for loan and lease losses to period-end loans                             1.21              1.42              1.61               1.21              1.61
Allowance for credit losses to period-end loans                                     1.36              1.60              1.80               1.36              1.80
Allowance for loan and lease losses to nonperforming loans                          175.8             197.5             224.7              175.8             224.7
Allowance for credit losses to nonperforming loans                                  197.7             222.0             250.8              197.7             250.8
Discontinued operations -- education lending business:
Loans charged off                                                                   $    1            1                 $    2             $    2            $    5
Recoveries                                                                          --                1                 2                  1                 5
Net loan charge-offs                                                                $    (1)          --                $    --            (1)               $    (1)
(a) The cumulative effect from change in accounting principle relates to the January 1, 2020, adoption of ASU 2016-13.
(b) Six months ended June 30, 2020, excludes $4 million related to the provision for other financial assets as a result of the change in accounting principle.
(c) Included in "Accrued expense and other liabilities" on the balance sheet.
Asset Quality Statistics From Continuing Operations
(dollars in millions)
                                                                       2Q21          1Q21          4Q20          3Q20          2Q20
Net loan charge-offs                                                   $   22        $   114       $   135       $   128       $   96
Net loan charge-offs to average total loans                            .09       %   .46       %   .53       %   .49       %   .36       %
Allowance for loan and lease losses                                    $   1,220     $   1,438     $   1,626     $   1,730     $   1,708
Allowance for credit losses (a)                                        1,372         1,616         1,823         1,938         1,906
Allowance for loan and lease losses to period-end loans                1.21      %   1.42      %   1.61      %   1.68      %   1.61      %
Allowance for credit losses to period-end loans                        1.36          1.60          1.80          1.88          1.80
Allowance for loan and lease losses to nonperforming loans             175.8         197.5         207.1         207.4         224.7
Allowance for credit losses to nonperforming loans                     197.7         222.0         232.2         232.4         250.8
Nonperforming loans at period end                                      $   694       $   728       $   785       $   834       $   760
Nonperforming assets at period end                                     738           790           937           1,003         951
Nonperforming loans to period-end portfolio loans                      .69       %   .72       %   .78       %   .81       %   .72       %
Nonperforming assets to period-end portfolio loans plus OREO and other .73           .78           .92           .97           .89
nonperforming assets
(a) Includes the allowance for loan and lease losses plus the liability for credit losses on lending-related commitments.
Summary of Nonperforming Assets and Past Due Loans From Continuing Operations
(dollars in millions)
                                                                                            6/30/2021      3/31/2021      12/31/2020     9/30/2020       6/30/2020
Commercial and industrial                                                                   $    355       $    387       $    385       $    459        $    404
Real estate -- commercial mortgage                                                          66             66             104            104             91
Real estate -- construction                                                                 --             --             --             1               1
Total commercial real estate loans                                                          66             66             104            105             92
Commercial lease financing                                                                  7              8              8              6               9
Total commercial loans                                                                      428            461            497            570             505
Real estate -- residential mortgage                                                         99             95             110            96              89
Home equity loans                                                                           146            148            154            146             141
Consumer direct loans                                                                       4              5              5              3               3
Credit cards                                                                                3              3              2              2               2
Consumer indirect loans                                                                     14             16             17             17              20
Total consumer loans                                                                        266            267            288            264             255
Total nonperforming loans                                                                   694            728            785            834             760
OREO                                                                                        9              12             100            105             112
Nonperforming loans held for sale                                                           32             47             49             61              75
Other nonperforming assets                                                                  3              3              3              3               4
Total nonperforming assets                                                                  $    738       $    790       $    937       $    1,003      $    951
Accruing loans past due 90 days or more                                                     74             92             86             73              87
Accruing loans past due 30 through 89 days                                                  190            191            241            336             419
Restructured loans -- accruing and nonaccruing (a)                                          334            376            363            306             310
Restructured loans included in nonperforming loans (a)                                      177            192            229            168             166
Nonperforming assets from discontinued operations -- education lending business             5              5              5              6               7
Nonperforming loans to period-end portfolio loans                                           .69       %    .72       %    .78       %    .81        %    .72       %
Nonperforming assets to period-end portfolio loans plus OREO and other nonperforming assets .73            .78            .92            .97             .89
(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
(in millions)
                                               2Q21       1Q21       4Q20       3Q20       2Q20
Balance at beginning of period                 $    728   $    785   $    834   $    760   $    632
Loans placed on nonaccrual status              186        196        300        387        293
Charge-offs                                    (74)       (135)      (160)      (150)      (111)
Loans sold                                     (10)       (13)       (9)        (6)        (5)
Payments                                       (92)       (37)       (83)       (83)       (29)
Transfers to OREO                              --         (3)        (3)        --         --
Transfers to nonperforming loans held for sale --         --         --         --         --
Loans returned to accrual status               (44)       (65)       (94)       (74)       (20)
Balance at end of period                       $    694   $    728   $    785   $    834   $    760
Line of Business Results
(dollars in millions)
                                                                                               Percentage change 2Q21 vs.
                                            2Q21      1Q21      4Q20      3Q20      2Q20       1Q21      2Q20
Consumer Bank
Summary of operations
Total revenue (TE)                          $   854   $   867   $   899   $   866   $   835    (1.5)   % 2.3     %
Provision for credit losses                 (70)      (23)      (5)       (3)       155        (204.3)   145.2
Noninterest expense                         584       601       606       567       552        (2.8)     5.8
Net income (loss) attributable to Key       259       220       228       231       98         17.7      164.3
Average loans and leases                    40,598    39,249    39,455    38,476    37,300     3.4       8.8
Average deposits                            88,412    85,033    82,854    82,836    79,235     4.0       11.6
Net loan charge-offs                        34        36        28        23        40         (5.6)     (15.0)
Net loan charge-offs to average total loans .34     % .37     % .28     % .24     % .43     %  (8.1)     (20.9)
Nonperforming assets at period end          $   274   $   345   $   374   $   353   $   332    (20.6)    (17.5)
Return on average allocated equity          28.74   % 26.10   % 25.95   % 26.44   % 11.50   %  10.1      149.9
Commercial Bank
Summary of operations
Total revenue (TE)                          $   874   $   859   $   923   $   813   $   879    1.7     % (.6)    %
Provision for credit losses                 (131)     (67)      44        150       326        95.5      (120.6)
Noninterest expense                         451       443       498       447       441        1.8       2.3
Net income (loss) attributable to Key       434       384       311       174       106        13.0      309.4
Average loans and leases                    59,953    61,221    62,016    66,264    70,336     (2.1)     (14.8)
Average loans held for sale                 1,341     1,237     1,285     1,383     2,012      8.4       (33.3)
Average deposits                            54,814    51,894    52,489    51,585    47,954     5.6       14.3
Net loan charge-offs                        9         78        108       103       57         (88.5)    (84.2)
Net loan charge-offs to average total loans .06     % .52     % .69     % .62     % .33     %  N/A       N/A
Nonperforming assets at period end          $   464   $   441   $   558   $   645   $   616    5.2       (24.7)
Return on average allocated equity          20.79   % 17.45   % 23.87   % 13.43   % 8.66    %  N/A       N/A
TE = Taxable Equivalent, N/A = Not Applicable, N/M = Not Meaningful

https://mma.prnewswire.com/media/948444/Key_Logo.jpg

https://c212.net/c/img/favicon.png?sn=CL46538&sd=2021-07-20

View original content to download multimedia:https://www.prnewswire.com/news-releases/keycorp-reports-record-second-quarter-2021-net-income-of-698-million-or-72-per-diluted-common-share-301337265.html

SOURCE KeyCorp

https://rt.prnewswire.com/rt.gif?NewsItemId=CL46538&Transmission_Id=202107200630PR_NEWS_USPR_____CL46538&DateId=20210720

comtex tracking

COMTEX_390098349/1005/2021-07-20T06:30:21

Earnings Calendar and Events Data provided by |Terms of Use| © 2021 Wall Street Horizon, Inc.

Market data accompanied by is delayed by at least 15 minutes for NASDAQ, NYSE MKT, NYSE, and options. Duration of the delay for other exchanges varies.
Market data and information provided by Morningstar.

Options are not suitable for all investors as the special risks inherent to options trading may expose investors to potentially rapid and substantial losses.
Please read Characteristics and Risks of Standard Options before investing in options.

Information and news provided by ,, , Computrade Systems, Inc., , and

Copyright © 2021. All rights reserved.