About KeyCorp
KeyCorp (Key) operates as the bank holding company for KeyBank National Association (KeyBank) that provides various banking services. Through KeyBank and certain other subsidiaries, the company provides a wide range of retail and commercial banking, commercial leasing, investment management, consumer finance, student loan refinancing, commercial mortgage servicing and special servicing, and investment banking products and services to individual, corporate, and institutional clients through two major business segments: Consumer Bank and Commercial Bank. The company's services are provided across the country through KeyBank's full-service retail banking branches and a network of ATMs in 15 states, as well as additional offices, online and mobile banking capabilities, including the company's national digital bank, Laurel Road, and a telephone banking call center. In addition to the customary banking services of accepting deposits and making loans, the company's bank and its trust company subsidiary offer personal and institutional trust custody services, personal financial and planning services, access to mutual funds, treasury services, and international banking services. Through the company's bank, trust company, and registered investment adviser subsidiaries, the company provides investment management services to clients that include large corporate and public retirement plans, foundations and endowments, high-net-worth individuals, and multi-employer trust funds established for providing pension or other benefits to employees. The company provides other financial services - both within and outside of the company's primary banking markets - through various nonbank subsidiaries. These services include community development financing, securities underwriting, investment banking and capital markets products, and brokerage. The company also provides merchant services to businesses. The company derives the majority of its revenues within the United States from customers domiciled in the United States. Segments The company operates through two business segments, Consumer Bank and Commercial Bank. The Consumer Bank serves individuals and small businesses throughout the company's 15-state branch footprint and through the company's Laurel Road digital brand by offering a variety of deposit and investment products, personal finance and financial wellness services, lending, student loan refinancing, mortgage and home equity, credit card, treasury services, and business advisory services. In addition, wealth management and investment services are offered to assist non-profit and high-net-worth clients with their banking, trust, portfolio management, charitable giving, and related needs. The Commercial Bank consists of the Commercial and Institutional operating segments. The Commercial operating segment is a full-service, commercial banking platform that focuses primarily on serving the borrowing, cash management, and capital markets needs of middle market clients within Key's 15-state branch footprint. It is also a significant, national, commercial real estate lender and third-party servicer of commercial mortgage loans and special servicer of CMBS. The Institutional operating segment operates nationally in providing lending, equipment financing, and banking products and services to large corporate and institutional clients. The industry coverage and product teams have established expertise in the following sectors: Consumer, Energy, Healthcare, Industrial, Public Sector, Real Estate, and Technology. The operating segment includes the KBCM platform, which provides a broad suite of capital markets products and services, including syndicated finance, debt and equity capital markets, derivatives, foreign exchange, financial advisory, public finance, commercial payments, equipment finance, and commercial mortgage banking. Additionally, KBCM provides fixed income and equity sales and trading services to investor clients. Loans As of December 31, 2023, the company's loan portfolio included commercial loans, including commercial and industrial loans, real estate - commercial mortgage loans, real estate - construction loans, and commercial lease financing loans; and consumer loans, such as real estate - residential mortgage loans, home equity loans, consumer direct loans, credit cards, and consumer indirect loans. Commercial Loan Portfolio Commercial and Industrial: Commercial and industrial loans are the largest component of the company's loan portfolio, representing 50% of the company's total loan portfolio as of December 31, 2023. This portfolio is approximately 88% variable rate and consists of loans primarily to large corporate, middle market, and small business clients. Commercial Real Estate Loans: The company's commercial real estate portfolio includes project loans primarily focused in market-rate and affordable multi-family housing loans, owner-occupied commercial and industrial operating company buildings, and community center grocer-anchored retail centers. These three commercial real estate segments make up 75% of the company's commercial real estate portfolio. The company's non-owner-occupied portfolio is focused on operators of commercial real estate who not only utilize the company's loan products, but also the company's broader industry-focused products and services and provide consistent pipelines into the company's agency, CMBS, and other long-term market take out products. As of December 31, 2023, 78% of the company's construction portfolio are multi-family project loans. Consumer Loan Portfolio The residential mortgage portfolio is consisted of loans originated by the company's Consumer Bank and is the largest segment of the company's consumer loan portfolio as of December 31, 2023, representing approximately 60% of consumer loans. This is followed by the company's home equity portfolio comprising approximately 20% of consumer loans outstanding at year end. Securities The majority of the company's securities available-for-sale portfolio consists of Federal Agency CMOs and mortgage-backed securities. CMOs are debt securities secured by a pool of mortgages or mortgage-backed securities. Deposits and Other Sources Of Funds As of December 31, 2023, the company's deposits were money market deposits, demand deposits, savings deposits, time deposits, and noninterest bearing deposits. Supervision and Regulation As an FHC, KeyCorp is subject to regulation, supervision, and examination by the Federal Reserve under the BHCA. The company's national bank subsidiaries and their subsidiaries are subject to regulation, supervision, and examination by the OCC. As of December 31, 2023, the company operated one full-service, FDIC-insured national bank subsidiary, KeyBank, and one national bank subsidiary that is limited to fiduciary activities. The FDIC also has certain, more limited regulatory, supervisory, and examination authority over KeyBank and KeyCorp under the FDIA and the Dodd-Frank Act. The company has other financial services subsidiaries that are subject to regulation, supervision, and examination by the Federal Reserve, as well as other state and federal regulatory agencies and self-regulatory organizations. Because KeyBank engages in derivative transactions, in 2013 it provisionally registered as a swap dealer with the CFTC and became a member of the NFA, the self-regulatory organization for participants in the U.S. derivatives industry. The company's securities brokerage and asset management subsidiaries are subject to supervision and regulation by the SEC, FINRA, and state securities regulators, and the company's insurance subsidiaries are subject to regulation by the insurance regulatory authorities of the states in which they operate. The company's other nonbank subsidiaries are subject to laws and regulations of both the federal government and the various states in which they are authorized to do business. The DIF provides insurance coverage for domestic deposits funded through assessments on insured depository institutions like KeyBank. The Federal Reserve and FDIC make available on their websites the public sections of resolution plans for the companies, including KeyCorp and KeyBank, that submitted plans. Key has established and maintains an AML program to comply with the BSA's requirements. Title X of the Dodd-Frank Act created the CFPB, a consumer financial services regulator with supervisory authority over banks and their affiliates with assets of more than $10 billion, like Key, to carry out federal consumer protection laws. The Volcker Rule implements Section 619 of the Dodd-Frank Act, which prohibits 'banking entities,' such as KeyCorp, KeyBank and their affiliates and subsidiaries, from owning, sponsoring, or having certain relationships with hedge funds and private equity funds (referred to as 'covered funds') and engaging in short-term proprietary trading of financial instruments, including securities, derivatives, commodity futures and options on these instruments. On March 21, 2022, the SEC issued for public comment a proposal to amend its rules under the Securities Act of 1933 and the Securities Exchange Act of 1934 to require public companies (including KeyCorp) to provide detailed climate-related information in their registration statements and periodic reports. History KeyCorp was founded in 1849.
