Keycorp Stock Price, News & Analysis

KeyBank has donated $180,000 to Rainier Scholars - Tacoma, a nonprofit organization focused on supporting underrepresented students of color in the greater Tacoma area. The grant will fund program implementation, including staffing, material development, and supplies over the next three years. Rainier Scholars - Tacoma aims to provide academic, social, and emotional support to help students excel in school and earn college degrees.

The program plans to welcome additional cohorts of students, develop curriculum for middle and high school advancement, and establish a second entry-point for 7th-grade students at First Creek Middle School. This initiative aligns with KeyBank's mission to help communities thrive by supporting underserved youth and fostering an educated workforce, which is important for regional economic prosperity.

KeyBank Foundation has committed a $300,000 community impact grant over three years to Urban Arts, a nonprofit organization teaching video game design to underserved youth as a pathway to college and career. Urban Arts provides a comprehensive curriculum in game design, including computer science, coding, animation, music, and storytelling. The organization offers college access services, scholarships, and connects alumni to mentorship and internship opportunities at leading corporations.

This partnership aligns with KeyBank's commitment to education and workforce development. Urban Arts' innovative approach boosts persistence in computer sciences for low-income youth, generating technically skilled and creatively confident individuals ready for college and career. The program has helped students earn $25 million in scholarships since 2017 and achieved a 100% college enrollment rate for its seniors.

KeyBank Foundation has granted $15,000 to ProsperityME, a Maine-based organization empowering refugees and immigrants through financial education and counseling. Founded by Claude Rwaganje, ProsperityME offers services including financial education, workforce development, business support, and housing assistance. The funding will support programs like Basic Money Management and Saving to Build Wealth, teaching clients about the U.S. financial system, budgeting, and saving.

Since 2008, ProsperityME has offered over 300 courses and workshops, helping more than 10,000 newcomers and low-income families. The organization anticipates serving 4,000 immigrants in the Greater Portland and Lewiston areas this year. This grant is part of KeyBank's $40 billion commitment for lending and investments across its national footprint, established in 2017.

KeyCorp (NYSE: KEY) announced a strategic minority investment of approximately $2.8 billion from Scotiabank (TSX: BNS) (NYSE: BNS), representing a 14.9% pro forma common stock ownership at a fixed price of $17.17 per share. This opportunistic capital raise is expected to:

• Increase KeyCorp's CET1 capital ratio by 195 basis points to 12.4%
• Boost tangible book value per share by over 10%
• Result in a net CET1 capital ratio of 11.3% to 11.6% after potential portfolio repositioning
• Be low single-digit accretive to 2025 earnings per share

The investment will be made in two tranches, with the initial 4.9% stake expected to be completed by end of August 2024, and the remaining purchase subject to Federal Reserve approval in Q1 2025.

KeyBank's Key4Women program, Micro Enterprise Services of Oregon (MESO), and the Portland Thorns FC have announced 10 finalists for their second annual women-owned business pitch contest in Oregon and SW Washington. The finalists, selected from 86 applicants, will compete for $50,000 in cash awards, with the grand prize winner receiving $20,000. The contest aims to support and empower women entrepreneurs, recognizing their impact on the economy and community.

Finalists will present a 4-minute pitch and answer questions on October 10th at Providence Park in Portland. The event will be livestreamed by the Thorns. To be eligible, businesses must be at least 51% owned and controlled by women, headquartered in specific Oregon or Washington counties, and have annual sales under $3 million. MESO is providing application support, mentorship, and workshops to help finalists prepare their pitches.

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.