KeyCorp - KEY STOCK NEWS

KeyBank and the KeyBank Foundation have announced a $300,000 investment in Avalon Housing, a nonprofit provider of affordable housing in Ann Arbor. This funding will enhance Avalon's supportive services for tenants and clients, specifically focusing on intensive case management services for individuals and families at the highest risk of housing instability.

Avalon Housing uses the supportive housing approach, which prioritizes tenants' health and well-being by providing resources to help them thrive in their homes. This approach has led to a 95% housing retention success rate. The investment will allow Avalon to provide personalized support, helping tenants navigate complex care systems and connect with necessary resources.

The partnership aims to address the increasing homelessness in Washtenaw County due to a lack of affordable housing. Avalon is currently developing nearly 175 new housing units to further combat this issue.

KeyBank's Key4Women is hosting a free virtual event titled "She Means Business: Tips for Growth and Resilience" on October 18th, 2024 at 12:00 p.m. EST. The one-hour webinar will feature a panel discussion led by Rachael Sampson, Key4Women's National Director and Head of Community Bank, with accomplished female leaders and entrepreneurs sharing their experiences and strategies for success.

Participants will learn about transitioning from corporate jobs to entrepreneurship, setting boundaries, and leveraging technology for business growth. Panelists include Ginger Siegel from Mastercard, author and coach Brenda Abdilla, and Amy Peterson from Rebel Nell. The webinar aims to provide actionable tips for business owners and professionals across various industries.

Key4Women, established in 2005, has generated over $12 billion in loans to women-owned businesses and offers free membership with access to Certified Key4Women Advisors who support women's financial wellness journeys.

LISC Fund Management, (LFM) and partners have launched the Cleveland Housing Investment Fund (CHIF), backed by an $18 million grant commitment from the City of Cleveland and a $20 million planned investment from KeyBank. The fund aims to invest $100 million in affordable housing and neighborhood development, focusing on underrepresented communities.

The CHIF will provide debt and equity-like funding for mixed-income rental housing and homeownership opportunities, targeting developers historically excluded from capital markets. This initiative addresses Cleveland's rising rents and the pressing need for affordable housing across income levels.

Managed by LFM in collaboration with LISC Cleveland, the fund seeks additional corporate and philanthropic investments. The project represents a significant public-private partnership to tackle housing inequities and promote shared prosperity in Cleveland.

KeyBank and the KeyBank Foundation have invested $300,000 in Cincinnati's Minority Business Accelerator (Accelerator) to support high-potential minority-owned businesses. The three-year grant aims to provide intensive services to a minimum of 25 businesses annually, totaling 75 over the grant period. The Accelerator will offer comprehensive support including strategy development, capital access, technical assistance, client opportunities, and marketing support.

The Accelerator, founded 20 years ago, has a proven track record of success. Minority Business Enterprises (MBEs) working with the Accelerator have achieved approximately $2 billion in aggregate annual revenues, created over 3,500 sustainable jobs, and averaged double-digit annual growth. This investment aligns with KeyBank's commitment to empowering local organizations and supporting long-term success for minority-owned businesses.

KeyBank has surpassed $1 million in Neighbors First Credits, helping 200 clients achieve homeownership. This Special Purpose Credit Program provides $5,000 toward closing costs and other pre-paid fees for eligible properties. KeyBank's efforts are making homeownership more attainable, especially as their 2024 Financial Mobility Survey found 69% of non-homeowners believe owning a home is not very achievable.

The bank has made significant impacts in various communities, including Cleveland (47 credits, $235,000) and Columbus (25 credits, $125,000). KeyBank also offers two other special purpose credit programs: the Homebuyer Credit (over $2.4 million funded, helping 533 clients) and the Key Opportunities Home Equity Loan ($13 million funded, assisting 259 clients).

These initiatives align with KeyBank's purpose of helping communities thrive by making homeownership more affordable, accessible, and sustainable.

KeyBank's semi-annual Middle Market Sentiment Report reveals a surge in optimism among middle market businesses, with 78% reporting an excellent/very good outlook for the next 12 months. The survey of over 700 companies with $10M to $1B in annual revenue shows:

- 50% have a positive U.S. economic outlook
- 90% anticipate M&A involvement on the buy-side in the next two years
- 54% plan to implement AI in the next six months

Despite challenges like inflation (34%), higher labor costs (30%), and interest rates (29%), businesses are leveraging technology and automation for growth. However, 87% plan to tap alternative capital sources due to tight access. Cybersecurity remains a concern, with 32% experiencing issues in the past year.

KeyCorp (NYSE: KEY) and its banking affiliates have announced a reduction in their prime lending rate from 8.50% to 8.00%, effective September 19, 2024. This decision reflects changes in the financial market and could impact various lending products tied to the prime rate. KeyCorp, headquartered in Cleveland, Ohio, is a major bank-based financial services company with assets of approximately $187 billion as of June 30, 2024. The company operates under the name KeyBank National Association, serving individuals and businesses across 15 states through a network of about 1,000 branches and 1,200 ATMs. KeyCorp also offers corporate and investment banking services under the KeyBanc Capital Markets brand.

Neighborhood Health Clinic in Naples, FL received a $20,000 charitable grant from KeyBank Foundation and Key Private Bank to support its dental program. The grant will fund the purchase of dental tools, equipment, and supplies, as well as training for volunteer hygienists and dental assistants. It aims to improve the overall health of Collier County's uninsured workers through the clinic's "Promoting Wellness through Positive Impact on Overall Dental Health and Education for the Underserved" program.

The clinic's Dental Suite, opened in 2019, features four dental operatories, a dental lab, and a classroom for patient education. In 2023, the clinic provided over 12,000 patient visits and 30,000 patient procedures. KeyBank's grant is part of a $40 billion commitment established in 2017 to support community development projects and philanthropic efforts across its national footprint.

KeyBank's Fall 2024 Small Business Flash Poll reveals 61% of small business owners plan to delay major decisions until after the election. Despite concerns about potential policy changes, particularly in taxation (45%), regulation (34%), and trade (31%), business owners remain resilient. They're adapting by increasing cash reserves (38%), delaying investments (36%), and diversifying offerings (31%).

The survey highlights challenges from high interest rates, including reduced profit margins and increased borrowing costs. However, 72% of owners are confident in funding monthly operations, up from 64% in March. Fraud prevention remains a priority, with payment fraud (49%) and identity theft (29%) as top concerns.

Women business owners show more uncertainty but are taking proactive measures like adjusting pricing strategies. Despite challenges, 75% of small business owners don't foresee hiring cuts, with 32% expecting to grow their staff in the next year.