KeyCorp - KEY STOCK NEWS

Cascade AIDS Project (CAP) has received a $300,000 grant from KeyBank to launch a new Healthcare Equity Advocate Program. The program aims to address healthcare disparities among marginalized communities, including Black, Latino, Indigenous, Pacific Islanders, and LGBTQ+ populations. CAP employee Robb Lawerence has been promoted to Community Healthcare Equity and Engagement Manager to implement the program.

The initiative will focus on community engagement, acting as a liaison between CAP's healthcare services and underserved communities. KeyBank's grant will enhance CAP's capacity to provide culturally informed and responsive care through outreach and partnership development. This aligns with KeyBank's mission to help communities thrive and underscores its commitment to diversity, equity, and inclusion.

KeyBank (NYSE: KEY) announced that over 2,800 clients graduated from the Key Secured Credit Card® program in Spring 2024, bringing the total number of graduates to more than 30,900 since 2019. The program aims to help clients establish or improve their credit history and financial stability. Key findings include:

- 26% of graduates had low FICO scores at origination, with an average improvement of 73 points
- 60% of clients graduated within 12 months, and 93% within 24 months
- Graduates with no initial FICO score achieved an average score of 721
- Overall, graduates showed an average increase of 63 points in their FICO scores

The program features include a $0 annual fee, free FICO score checks, and credit history reporting to bureaus.

KeyBank has provided $64.7 million in financing for the construction of Silos Apartments, a new affordable housing project in Salt Lake City, Utah. The financing includes $16.6 million in low-income housing tax credit equity, a $21.3 million construction loan, and $6.3 million taxable equity bridge. The project will add 180 units of affordable housing for families earning up to 60% of the area median income. KeyBank's Commercial Mortgage Group also originated a $20.5 million permanent loan, while KeyBanc Capital Markets secured $21.3 million in Utah Housing Multifamily Housing Revenue Bonds.

Silos Apartments is part of a larger master-planned development in the Granary District, aiming to address Utah's substantial need for affordable housing. The project is sponsored by Blaser Ventures, a local affordable housing developer. KeyBank's involvement in this project aligns with its commitment to community development and affordable housing initiatives.

KeyCorp (NYSE: KEY) reported net income of $237 million or $0.25 per diluted share for Q2 2024, up from $183 million or $0.20 per share in Q1 2024. However, net income was down 5.2% year-over-year from $250 million or $0.27 per share in Q2 2023.

Average deposits increased by $1.3 billion compared to both last quarter and the same period last year, with client deposits up 5% year-over-year.

Total revenue decreased by 4.3% year-over-year to $1.53 billion, reflecting an 8.8% drop in net interest income and a 3.0% rise in noninterest income.

Expenses declined roughly 6% from Q1 2024. The Common Equity Tier 1 ratio improved to 10.5%, up 20 basis points from the previous quarter.

Net charge-offs as a percentage of average loans were 0.34%, up from 0.29% in Q1 but a significant increase from 0.17% in Q2 2023. The allowance for credit losses was $1.83 billion, or 1.71% of total loans.

The Springfield Boys & Girls Club has received a $20,000 grant from the KeyBank Foundation to support their Summer Brain Gain Program. This initiative aims to prevent learning loss among children during the summer, with modules aligned to common core standards emphasizing discovery, creativity, and collaboration.

The program targets children from low-income families, many of whom speak English as a second language. KeyBank also provided a financial literacy course to about 40 teen members, emphasizing the importance of money management skills for future success.

The grant and financial education efforts underscore KeyBank's commitment to supporting educational and financial literacy initiatives in minority and low-income communities.

KeyCorp (NYSE: KEY) announced that its Board of Directors has declared several dividends for the third quarter of 2024. Shareholders of the common shares will receive a cash dividend of $0.205 per share, payable on September 13, 2024, to those on record by August 27, 2024.

Dividends were also declared for various series of preferred stock, each payable on September 16, 2024, to holders of record as of September 3, 2024. These include: $312.50 per Series D share, $15.3125 per Series E share, $14.1250 per Series F share, $14.0625 per Series G share, and $15.50 per Series H share.

KeyBank Maine's team, spearheaded by Market President Tony DiSotto, recently completed 18 community projects and 564 service hours in a single afternoon during their annual Neighbors Make The Difference Day. Established in 1991, this initiative has become a pivotal part of KeyBank's culture, focusing on community support through volunteerism. The program promotes employee engagement, talent development, and team building, while enhancing corporate reputation. KeyBank's culture thrives on community commitment, with employees participating in financial literacy programs, nonprofit boards, and employee giving. Management support, employee leadership, and strong nonprofit partnerships are critical to the success of Neighbors Day. In 2023, KeyBank and KeyBank Foundation provided $28.7 million in community investments in Maine, including affordable housing, community development, and philanthropy.

KeyBank (NYSE: KEY) has announced a new digital enhancement designed to expedite and simplify the home lending process. The technology automates the verification of borrowers' income, assets, and employment, reducing the paperwork required from clients. This improvement aims to enhance client experience by ensuring secure data submission and faster loan closing. During a two-week pilot, this technology saved significant time for borrowers, eliminating the need for multiple documentation submissions. KeyBank continues to invest in technology to streamline homebuying, reflecting their commitment to client satisfaction and efficiency.

On June 6th, 2024, KeyBank teammates in Buffalo participated in the annual 'Neighbors Make the Difference Day' by building beds for children in need through the volunteer organization Sleep in Heavenly Peace. This initiative, which began in 1991, highlights KeyBank's dedication to community service and support. The event underscores the bank's mission to help local communities thrive, with volunteers contributing thousands of hours annually to various nonprofit organizations. Sleep in Heavenly Peace focuses on providing bunk beds to children who otherwise might sleep on couches, blankets, or floors, aligning with KeyBank's community-centric values.